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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



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FORM 10-Q



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|x | QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT of 1934
|- | ---------------------------------------------------------------------------------------



For the Quarterly Period Ended March 31, 2005



| ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ----------------------------------------------------------------------------------------



For the transition period from  to
.



Commission File No. 1-13652



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First West Virginia Bancorp, Inc.

(Exact name of registrant as specified in its charter)



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|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|West Virginia                                                  |  | 55-6051901                          
|(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employer Identification No.)



1701 Warwood Avenue

Wheeling, West Virginia 26003

(Address of principal executive offices)



Registrants telephone number, including area code: (304) 277-1100



N/A

(Former name, former address and former fiscal year, if changed since last report)



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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months ( or for such shorter period that the registrant was required to file such report(s), and (2) has been subject to such filing requirements for the past 90 days.    x  Yes ̈No



Indicate by check-mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Act). ̈Yes    x  No



APPLICABLE ONLY
TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS:



Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. ̈Yes ̈No    x  N/A



APPLICABLE ONLY TO CORPORATE ISSUERS:



Indicate the number of shares outstanding of each of the issuers classes of common stock, as of the latest practible date.



The number of shares outstanding of the issuers common stock as of May 11, 2005:

Common Stock, $5.00 Par Value, shares outstanding 1,538,443 shares



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##### Table of Contents

FORM 10-Q INDEX



|                               |  |                                                                                       |  |      
|------------------------------ |  | ------------------------------------------------------------------------------------- |  | -----
|PART I -
Financial Information |  |                                                                                      
|                               |  |                                                                                      
|Item 1                         |  | Financial Statements and Accompanying Notes                                           |  | 3-11 
|                               |  |                                                                                      
|Item 2                         |  | Managements Discussion and Analysis of Financial Condition and Results of Operations |  | 12-25
|                               |  |                                                                                      
|Item 3                         |  | Quantitative and Qualitative Disclosures About Market Risk                            |  | 26   
|                               |  |                                                                                      
|Item 4                         |  | Controls and Procedures                                                               |  | 26   
|                               | 
|PART II -
Other Information    |  |                                                                                      
|                               |  |                                                                                      
|Item 1                         |  | Legal Proceedings                                                                     |  | 27   
|                               |  |                                                                                      
|Item 2                         |  | Unregistered Sales of Equity Securities and Use of Proceeds                           |  | 27   
|                               |  |                                                                                      
|Item 3                         |  | Defaults upon Senior Securities                                                       |  | 27   
|                               |  |                                                                                      
|Item 4                         |  | Submission of matters to a Vote of Security Holders                                   |  | 27   
|                               |  |                                                                                      
|Item 5                         |  | Other Information                                                                     |  | 27   
|                               |  |                                                                                      
|Item 6                         |  | Exhibits and Reports on Form 8-K                                                      |  | 27   
|                               |  |                                                                                      
|                               |  | Exhibit Index                                                                         |  | 29   
|                               |  |                                                                                      
|                               |  | Reports on Form 8-K                                                                   |  | 27   
|                               |  |                                                                                      
|                               |  | Signatures                                                                            |  | 28   
|                               | 
|Certifications                 |  |                                                                                      



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FIRST WEST VIRGINIA BANCORP, INC.



PART
I



FINANCIAL INFORMATION



3



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##### Table of Contents

First West Virginia Bancorp, Inc.



CONSOLIDATED BALANCE SHEETS



|                                                                                                                            |  |                |             |   |                  |   |             |  
|--------------------------------------------------------------------------------------------------------------------------- |  | -------------- | ----------- | - | ---------------- | - | ----------- | -
|                                                                                                                            |  | March 31, 2005 |             |   | December 31,2004 |  
|                                                                                                                            |  | (Unaudited)    |             |   |                  |  
|ASSETS                                                                                                                      |  |                |             |   |                  |   |             |  
|Cash and due from banks                                                                                                     |  | $              | 6,472,654   |   |                  | $ | 5,474,000   |  
|Due from banks - interest bearing                                                                                           |  |                | 240,444     |   |                  |   | 491,166     |  
|Federal funds sold                                                                                                          |  |                | 2,592,000   |   |                  |   | 2,155,000   |  
|                                                                                                                            |  |                |             |   |                  |   |             |  
|Total cash and cash equivalents                                                                                             |  |                | 9,305,098   |   |                  |   | 8,120,166   |  
|Investment securities:                                                                                                      |  |                |             |   |                  |   |             |  
|Available-for-sale (at fair value)                                                                                          |  |                | 100,052,796 |   |                  |   | 103,736,472 |  
|Held-to-maturity (fair value of $2,898,354 and $2,927,330, respectively)                                                    |  |                | 2,822,331   |   |                  |   | 2,824,579   |  
|Loans                                                                                                                       |  |                | 150,090,297 |   |                  |   | 154,331,037 |  
|Less allowance for loan losses                                                                                              |  |                | (2,425,439  | ) |                  |   | (2,356,101  | )
|                                                                                                                            |  |                |             |   |                  |   |             |  
|Net loans                                                                                                                   |  |                | 147,664,858 |   |                  |   | 151,974,936 |  
|Premises and equipment, net                                                                                                 |  |                | 3,853,203   |   |                  |   | 3,855,870   |  
|Accrued income receivable                                                                                                   |  |                | 1,338,335   |   |                  |   | 1,259,205   |  
|Other intangible assets                                                                                                     |  |                | 258,858     |   |                  |   | 281,046     |  
|Goodwill                                                                                                                    |  |                | 1,644,119   |   |                  |   | 1,644,119   |  
|Bank owned life insurance                                                                                                   |  |                | 3,111,042   |   |                  |   | 3,080,724   |  
|Other assets                                                                                                                |  |                | 3,151,538   |   |                  |   | 3,024,628   |  
|                                                                                                                            |  |                |             |   |                  |   |             |  
|Total assets                                                                                                                |  | $              | 273,202,178 |   |                  | $ | 279,801,745 |  
|                                                                                                                            |  |                |             |   |                  |   |             |  
|LIABILITIES                                                                                                                 |  |                |             |   |                  |   |             |  
|Noninterest bearing deposits:                                                                                               |  |                |             |   |                  |   |             |  
|Demand                                                                                                                      |  | $              | 24,832,487  |   |                  | $ | 26,288,924  |  
|Interest bearing deposits:                                                                                                  |  |                |             |   |                  |   |             |  
|Demand                                                                                                                      |  |                | 38,775,413  |   |                  |   | 37,493,712  |  
|Savings                                                                                                                     |  |                | 84,448,837  |   |                  |   | 86,900,317  |  
|Time                                                                                                                        |  |                | 83,662,747  |   |                  |   | 85,488,054  |  
|                                                                                                                            |  |                |             |   |                  |   |             |  
|Total deposits                                                                                                              |  |                | 231,719,484 |   |                  |   | 236,171,007 |  
|Federal funds purchased and securities sold under agreements to repurchase                                                  |  |                | 14,176,102  |   |                  |   | 15,759,200  |  
|Federal Home Loan Bank borrowings                                                                                           |  |                | 2,415,235   |   |                  |   | 2,425,111   |  
|Accrued interest payable                                                                                                    |  |                | 366,339     |   |                  |   | 349,357     |  
|Other liabilities                                                                                                           |  |                | 1,096,598   |   |                  |   | 1,144,034   |  
|                                                                                                                            |  |                |             |   |                  |   |             |  
|Total liabilities                                                                                                           |  |                | 249,773,758 |   |                  |   | 255,848,709 |  
|                                                                                                                            |  |                |             |   |                  |   |             |  
|STOCKHOLDERS EQUITY                                                                                                        |  |                |             |   |                  |   |             |  
|Common stock - 2,000,000 shares authorized at $5 par value: 1,538,443 shares issued at March 31, 2005 and December 31, 2004 |  |                | 7,692,215   |   |                  |   | 7,692,215   |  
|Treasury stock - 10,000 shares at cost:                                                                                     |  |                | (228,100    | ) |                  |   | (228,100    | )
|Surplus                                                                                                                     |  |                | 4,982,606   |   |                  |   | 4,982,606   |  
|Retained earnings                                                                                                           |  |                | 11,692,731  |   |                  |   | 11,437,407  |  
|Accumulated other comprehensive income (loss)                                                                               |  |                | (711,032    | ) |                  |   | 68,908      |  
|                                                                                                                            |  |                |             |   |                  |   |             |  
|Total stockholders equity                                                                                                  |  |                | 23,428,420  |   |                  |   | 23,953,036  |  
|                                                                                                                            |  |                |             |   |                  |   |             |  
|Total liabilities and stockholders equity                                                                                  |  | $              | 273,202,178 |   |                  | $ | 279,801,745 |  
|                                                                                                                            |  |                |             |   |                  |   |             |  



The accompanying notes
are an integral part of the unaudited consolidated financial statements.



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First West Virginia Bancorp, Inc.



CONSOLIDATED STATEMENTS OF INCOME



|                                                             |  |                               |           |      |   |           |  
|------------------------------------------------------------ |  | ----------------------------- | --------- | ---- | - | --------- | -
|                                                             |  | Three Months Ended, March 31, |          
|                                                             |  | 2005                          |           | 2004 |  
|                                                             |  | (Unaudited)                   |          
|INTEREST AND DIVIDEND INCOME                                 |  |                               |           |      |   |           |  
|Loans, including fees:                                       |  |                               |           |      |   |           |  
|Taxable                                                      |  | $                             | 2,169,563 |      | $ | 2,204,966 |  
|Tax-exempt                                                   |  |                               | 167,919   |      |   | 152,107   |  
|Debt securities:                                             |  |                               |           |      |   |           |  
|Taxable                                                      |  |                               | 771,725   |      |   | 778,664   |  
|Tax-exempt                                                   |  |                               | 159,010   |      |   | 154,885   |  
|Dividends                                                    |  |                               | 4,496     |      |   | 2,855     |  
|Other interest income                                        |  |                               | 5,914     |      |   | 6,050     |  
|Federal funds sold                                           |  |                               | 27,088    |      |   | 12,748    |  
|                                                             |  |                               |           |      |   |           |  
|Total interest and dividend income                           |  |                               | 3,305,715 |      |   | 3,312,275 |  
|                                                             |  |                               |           |      |   |           |  
|INTEREST EXPENSE                                             |  |                               |           |      |   |           |  
|Deposits                                                     |  |                               | 886,003   |      |   | 981,451   |  
|Federal funds purchased and repurchase agreements            |  |                               | 72,459    |      |   | 55,105    |  
|FHLB borrowings                                              |  |                               | 28,809    |      |   | 29,268    |  
|                                                             |  |                               |           |      |   |           |  
|Total interest expense                                       |  |                               | 987,271   |      |   | 1,065,824 |  
|                                                             |  |                               |           |      |   |           |  
|Net interest income                                          |  |                               | 2,318,444 |      |   | 2,246,451 |  
|                                                             |  |                              
|PROVISION FOR POSSIBLE LOAN LOSSES                           |  |                               | 90,000    |      |   | 30,000    |  
|                                                             |  |                               |           |      |   |           |  
|Net interest income after provision for possible loan losses |  |                               | 2,228,444 |      |   | 2,216,451 |  
|                                                             |  |                               |           |      |   |           |  
|NONINTEREST INCOME                                           |  |                               |           |      |   |           |  
|Service charges and other fees                               |  |                               | 165,902   |      |   | 192,494   |  
|Net gains (losses) on available for sale securities          |  |                               | 77,856    |      |   | (2,501    | )
|Other operating income                                       |  |                               | 129,170   |      |   | 96,861    |  
|                                                             |  |                               |           |      |   |           |  
|Total noninterest income                                     |  |                               | 372,928   |      |   | 286,854   |  
|                                                             |  |                               |           |      |   |           |  
|NONINTEREST EXPENSE                                          |  |                               |           |      |   |           |  
|Salary and employee benefits                                 |  |                               | 960,618   |      |   | 891,303   |  
|Net occupancy expense of premises                            |  |                               | 306,820   |      |   | 261,325   |  
|Other operating expenses                                     |  |                               | 663,065   |      |   | 471,506   |  
|                                                             |  |                               |           |      |   |           |  
|Total noninterest expense                                    |  |                               | 1,930,503 |      |   | 1,624,134 |  
|                                                             |  |                               |           |      |   |           |  
|Income before income taxes                                   |  |                               | 670,869   |      |   | 879,171   |  
|                                                             |  |                              
|INCOME TAXES                                                 |  |                               | 125,141   |      |   | 220,431   |  
|                                                             |  |                               |           |      |   |           |  
|Net income                                                   |  | $                             | 545,728   |      | $ | 658,740   |  
|                                                             |  |                               |           |      |   |           |  
|WEIGHTED AVERAGE SHARES OUTSTANDING                          |  |                               | 1,528,443 |      |   | 1,528,443 |  
|                                                             |  |                               |           |      |   |           |  
|EARNINGS PER COMMON SHARE                                    |  | $                             | 0.36      |      | $ | 0.43      |  
|                                                             |  |                               |           |      |   |           |  



The accompanying notes
are an integral part of the unaudited consolidated financial statements.



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##### Table of Contents

First West Virginia Bancorp, Inc.



CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY



(Unaudited)



|                                                                                    |  |              |  |         |           |                   |   |           |                |   |            |                                              |  |   |                        |   |  |       |          |   |  |   |          |   |  |   |            |  
|----------------------------------------------------------------------------------- |  | ------------ |  | ------- | --------- | ----------------- | - | --------- | -------------- | - | ---------- | -------------------------------------------- |  | - | ---------------------- | - |  | ----- | -------- | - |  | - | -------- | - |  | - | ---------- | -
|                                                                                    |  | Common Stock |  | Surplus |           | Retained Earnings |   |           | Treasury Stock |   |            | AccumulatedOtherCompre-hensive Income (loss) |  |   | Compre- hensive Income |   |  | Total |         
|                                                                                    |  | Shares       |  | Amount  |           |                   |   |           |                |  
|BALANCE, DECEMBER 31, 2004                                                          |  | 1,538,443    |  | $       | 7,692,215 |                   | $ | 4,982,606 |                | $ | 11,437,407 |                                              |  | $ | (228,100               | ) |  | $     | 68,908   |   |  |   |          |   |  | $ | 23,953,036 |  
|Comprehensive loss:                                                                 |  |              |  |         |           |                   |   |           |                |   |            |                                              |  |   |                        |   |  |       |          |   |  |   |          |   |  |   |            |  
|Net income                                                                          |  |             |  |         |          |                   |   |          |                |   | 545,728    |                                              |  |   |                       |   |  |       |         |   |  | $ | 545,728  |   |  |   | 545,728    |  
|Other comprehensive loss, net of tax                                                |  |              |  |         |           |                   |   |           |                |   |            |                                              |  |   |                        |   |  |       |          |   |  |   |          |   |  |   |            |  
|Unrealized losses on securities net of reclassification adjustment (see disclosure) |  |             |  |         |          |                   |   |          |                |   |           |                                              |  |   |                       |   |  |       | (779,940 | ) |  |   | (779,940 | ) |  |   | (779,940   | )
|                                                                                    |  |              |  |         |           |                   |   |           |                |   |            |                                              |  |   |                        |   |  |       |          |   |  |   |          |   |  |   |            |  
|Comprehensive loss                                                                  |  |              |  |         |           |                   |   |           |                |   |            |                                              |  |   |                        |   |  |       |          |   |  | $ | (234,212 | ) |  |   |            |  
|                                                                                    |  |              |  |         |           |                   |   |           |                |   |            |                                              |  |   |                        |   |  |       |          |   |  |   |          |   |  |   |            |  
|Cash dividend ($.19 per share)                                                      |  |             |  |         |          |                   |   |          |                |   | (290,404   | )                                            |  |   |                       |   |  |       |         |   |  |   |          |   |  |   | (290,404   | )
|                                                                                    |  |              |  |         |           |                   |   |           |                |   |            |                                              |  |   |                        |   |  |       |          |   |  |   |          |   |  |   |            |  
|BALANCE, MARCH 31, 2005                                                             |  | 1,538,443    |  | $       | 7,692,215 |                   | $ | 4,982,606 |                | $ | 11,692,731 |                                              |  | $ | (228,100               | ) |  | $     | (711,032 | ) |  |   |          |   |  | $ | 23,428,420 |  
|                                                                                    |  |              |  |         |           |                   |   |           |                |   |            |                                              |  |   |                        |   |  |       |          |   |  |   |          |   |  |   |            |  



|                                                                                   |  |              |  |         |           |                   |   |           |                |   |            |                                              |  |                       |          |       |  |   |         |  |   |           |  |   |            |  
|---------------------------------------------------------------------------------- |  | ------------ |  | ------- | --------- | ----------------- | - | --------- | -------------- | - | ---------- | -------------------------------------------- |  | --------------------- | -------- | ----- |  | - | ------- |  | - | --------- |  | - | ---------- | -
|                                                                                   |  | Common Stock |  | Surplus |           | Retained Earnings |   |           | Treasury Stock |   |            | AccumulatedOtherCompre-hensive Income (loss) |  | Compre-hensive Income |          | Total | 
|                                                                                   |  | Shares       |  | Amount  |           |                   |   |           |                |  
|BALANCE, DECEMBER 31, 2003                                                         |  | 1,538,443    |  | $       | 7,692,215 |                   | $ | 4,982,606 |                | $ | 9,961,698  |                                              |  | $                     | (228,100 | )     |  | $ | 622,196 |  |   |           |  | $ | 23,030,615 |  
|Comprehensive income:                                                              |  |              |  |         |           |                   |   |           |                |   |            |                                              |  |                       |          |       |  |   |         |  |   |           |  |   |            |  
|Net income                                                                         |  |             |  |         |          |                   |   |          |                |   | 658,740    |                                              |  |                       |         |       |  |   |        |  | $ | 658,740   |  |   | 658,740    |  
|Other comprehensive income, net of tax                                             |  |              |  |         |           |                   |   |           |                |   |            |                                              |  |                       |          |       |  |   |         |  |   |           |  |   |            |  
|Unrealized gains on securities net of reclassification adjustment (see disclosure) |  |             |  |         |          |                   |   |          |                |   |           |                                              |  |                       |         |       |  |   | 343,974 |  |   | 343,974   |  |   | 343,974    |  
|                                                                                   |  |              |  |         |           |                   |   |           |                |   |            |                                              |  |                       |          |       |  |   |         |  |   |           |  |   |            |  
|Comprehensive income                                                               |  |              |  |         |           |                   |   |           |                |   |            |                                              |  |                       |          |       |  |   |         |  | $ | 1,002,714 |  |   |            |  
|                                                                                   |  |              |  |         |           |                   |   |           |                |   |            |                                              |  |                       |          |       |  |   |         |  |   |           |  |   |            |  
|Cash dividend ($.19 per share)                                                     |  |             |  |         |          |                   |   |          |                |   | (290,404   | )                                            |  |                       |         |       |  |   |        |  |   |           |  |   | (290,404   | )
|                                                                                   |  |              |  |         |           |                   |   |           |                |   |            |                                              |  |                       |          |       |  |   |         |  |   |           |  |   |            |  
|BALANCE, MARCH 31, 2004                                                            |  | 1,538,443    |  | $       | 7,692,215 |                   | $ | 4,982,606 |                | $ | 10,330,034 |                                              |  | $                     | (228,100 | )     |  | $ | 966,170 |  |   |           |  | $ | 23,742,925 |  
|                                                                                   |  |              |  |         |           |                   |   |           |                |   |            |                                              |  |                       |          |       |  |   |         |  |   |           |  |   |            |  



|                                                                           |  |                                     |          |   |      |   |         |  
|-------------------------------------------------------------------------- |  | ----------------------------------- | -------- | - | ---- | - | ------- | -
|                                                                           |  | For the Three Months EndedMarch 31, |         
|                                                                           |  | 2005                                |          |   | 2004 |  
|Disclosure of reclassification amount, net of tax:                         |  |                                     |          |   |      |   |         |  
|Unrealized holding gains (losses) arising during the period                |  | $                                   | (731,381 | ) |      | $ | 342,414 |  
|Less reclassification adjustment for gains (losses) included in net income |  |                                     | 48,559   |   |      |   | (1,560  | )
|                                                                           |  |                                     |          |   |      |   |         |  
|Net unrealized gains (losses) on securities                                |  | $                                   | (779,940 | ) |      | $ | 343,974 |  
|                                                                           |  |                                     |          |   |      |   |         |  



The accompanying notes
are an integral part of the unaudited consolidated financial statements.



6



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##### Table of Contents

First West Virginia Bancorp, Inc.



CONSOLIDATED STATEMENTS OF CASH FLOWS



(Unaudited)



|                                                                                  |  |                                      |              |   |      |   |             |  
|--------------------------------------------------------------------------------- |  | ------------------------------------ | ------------ | - | ---- | - | ----------- | -
|                                                                                  |  | For the Three Months Ended March 31, |             
|                                                                                  |  | 2005                                 |              |   | 2004 |  
|OPERATING ACTIVITIES                                                              |  |                                      |              |   |      |   |             |  
|Net income                                                                        |  | $                                    | 545,728      |   |      | $ | 658,740     |  
|Adjustments to reconcile net income to net cash provided by operating activities: |  |                                      |              |   |      |   |             |  
|Provision for loan losses                                                         |  |                                      | 90,000       |   |      |   | 30,000      |  
|Depreciation and amortization                                                     |  |                                      | 113,946      |   |      |   | 112,971     |  
|Amortization of investment securities, net                                        |  |                                      | 94,181       |   |      |   | 159,951     |  
|Investment security (gains) losses                                                |  |                                      | (77,856      | ) |      |   | 2,501       |  
|Net (gains) losses on sales of assets                                             |  |                                      | 53,043       |   |      |   | (3,726      | )
|Increase in cash surrender value of bank-owned life insurance                     |  |                                      | (30,318      | ) |      |   |            |  
|Increase in interest receivable                                                   |  |                                      | (79,130      | ) |      |   | (164,424    | )
|Increase in interest payable                                                      |  |                                      | 16,982       |   |      |   | 283         |  
|Other, net                                                                        |  |                                      | 230,554      |   |      |   | 6,600,994   |  
|                                                                                  |  |                                      |              |   |      |   |             |  
|Net cash provided by operating activities                                         |  |                                      | 957,130      |   |      |   | 7,397,290   |  
|                                                                                  |  |                                      |              |   |      |   |             |  
|INVESTING ACTIVITIES                                                              |  |                                      |              |   |      |   |             |  
|Net (increase) decrease in loans, net of charge-offs                              |  |                                      | 4,216,596    |   |      |   | (4,608,211  | )
|Proceeds from sales of securities available-for-sale                              |  |                                      | 2,786,518    |   |      |   | 10,553      |  
|Proceeds from maturities of securities available-for-sale                         |  |                                      | 114,694,201  |   |      |   | 15,588,793  |  
|Proceeds from maturities of securities held-to-maturity                           |  |                                      |             |   |      |   | 610,000     |  
|Principal collected on mortgage-backed securities                                 |  |                                      | 3,254,826    |   |      |   | 3,593,562   |  
|Purchases of securities available-for-sale                                        |  |                                      | (118,315,356 | ) |      |   | (15,026,698 | )
|Recoveries on loans previously charged-off                                        |  |                                      | 3,482        |   |      |   | 22,050      |  
|Purchases of premises and equipment                                               |  |                                      | (89,091      | ) |      |   | (21,156     | )
|Proceeds from sales of premises and equipment                                     |  |                                      | 11,527       |   |      |   | 14,101      |  
|                                                                                  |  |                                      |              |   |      |   |             |  
|Net cash provided by investing activities                                         |  |                                      | 6,562,703    |   |      |   | 182,994     |  
|                                                                                  |  |                                      |              |   |      |   |             |  
|FINANCING ACTIVITIES                                                              |  |                                      |              |   |      |   |             |  
|Net decrease in deposits                                                          |  |                                      | (4,451,523   | ) |      |   | (1,552,383  | )
|Dividends paid                                                                    |  |                                      | (290,404     | ) |      |   | (290,404    | )
|Decrease in short-term borrowings                                                 |  |                                      | (1,583,098   | ) |      |   | (1,543,145  | )
|Decrease in FHLB borrowings                                                       |  |                                      | (9,876       | ) |      |   | (9,418      | )
|                                                                                  |  |                                      |              |   |      |   |             |  
|Net cash used in financing activities                                             |  |                                      | (6,334,901   | ) |      |   | (3,395,350  | )
|                                                                                  |  |                                      |              |   |      |   |             |  
|INCREASE IN CASH AND CASH EQUIVALENTS                                             |  |                                      | 1,184,932    |   |      |   | 4,184,934   |  
|                                                                                  |  |                                     
|CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR                                      |  |                                      | 8,120,166    |   |      |   | 7,024,394   |  
|                                                                                  |  |                                      |              |   |      |   |             |  
|CASH AND CASH EQUIVALENTS, END OF PERIOD                                          |  | $                                    | 9,305,098    |   |      | $ | 11,209,328  |  
|                                                                                  |  |                                      |              |   |      |   |             |  
|Supplemental Disclosures:                                                         |  |                                      |              |   |      |   |             |  
|Cash Paid for Interest                                                            |  | $                                    | 970,289      |   |      | $ | 1,065,541   |  
|Cash Paid for Income Taxes                                                        |  | $                                    |             |   |      | $ | 45,000      |  



The accompanying notes
are an integral part of the unaudited consolidated financial statements.



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##### Table of Contents

First West Virginia Bancorp, Inc.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2005 AND 2004

(Unaudited)



Note 1 - Critical Accounting Policies



The accounting and reporting policies of First West Virginia Bancorp, Inc. ( the Company) and its subsidiary were prepared in accordance with accounting
principles generally accepted in the United States of America, (US GAAP) and to general practices within the financial services industry. The preparation of financial statements in conformity with US GAAP requires management to make
estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Management has identified the accounting policies described below as those that, due to
the judgments, estimates and assumptions inherent in those policies, are critical to an understanding of the Companys consolidated financial statements and managements discussion and analysis.



INCOME RECOGNITION



The Company recognizes interest income by methods conforming to US GAAP that include general
accounting practices within the financial services industry. Interest income on loans and investment securities is recognized by methods that result in level rates of return on principal amounts outstanding, including yield adjustments resulting
from the amortization of loan costs and premiums on investment securities and accretion of loan fees and discounts on investment securities.



In the event management believes collection of all or a portion of contractual interest on a loan has become doubtful, which generally occurs after the loan is 90 days
past due, the accrual of interest is discontinued. In addition, previously accrued interest deemed uncollectible that was recognized in income is reversed. Interest received on nonaccrual loans is included in income only if principal recovery is
reasonably assured. A nonaccrual loan is restored to accrual status when it is brought current or has performed in accordance with contractual terms for a reasonable period of time, and the collectibility of the total contractual principal and
interest is no longer doubtful.



ALLOWANCE FOR LOAN LOSSES



In general, determining the amount of the allowance for loan losses
requires significant judgment and the use of estimates by management. The Company maintains an allowance for loan losses to absorb probable losses in the loan portfolio based on a quarterly analysis of the portfolio. This formal analysis determines
an appropriate level and allocation of the allowance for loan losses among loan types and resulting provision for loan losses by considering factors affecting loan losses, including specific losses, levels and trends in impaired and nonperforming
loans, historical loan loss experience, current national and local economic conditions, volume, growth and composition of the portfolio, regulatory guidance and other relevant factors. Management continually monitors the loan portfolio through
reviews of past due loans and all significant loans which are considered to be potential problem loans on a monthly basis. The internal loan review function provides for an independent review to evaluate the adequacy of the allowance. The provision
could increase or decrease each quarter based upon the results of managements formal analysis.



The amount of the allowance for loan losses for the various loan types represents managements estimate of expected losses from existing loans based upon specific allocations for individual lending relationships
and historical loss experience for each category of homogeneous loans. Impaired loans are commercial and commercial real estate loans for which it is probable the Company will not be able to collect all amounts due according to the contractual terms
of the loan agreement. The Company individually evaluates such loans for impairment and does not aggregate loans by major risk classifications. The definition of impaired loans is not the same as the definition of nonaccrual
loans, although the two categories overlap. The Company may choose to place a loan on nonaccrual status due to payment delinquency or uncertain collectibility while not classifying the loan as impaired, provided the loan is not a commercial or
commercial real estate classification. Factors considered by management in determining impairment include payment status and collateral value. The amount of impairment for these types of loans is determined by the difference between the present
value of the expected cash flows related to the loan, using the original interest rate, and its recorded value, or as a practical expedient in the case of collateralized loans, the difference between the fair value of the collateral and the recorded
amount of the loans. When foreclosure is probable, impairment is measured based on the fair value of the collateral. While allocations are made to specific loans and pools of loans, the allowance is available for all loan losses.



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##### Table of Contents

First West Virginia Bancorp, Inc.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2005 AND 2004

(Unaudited)



Note 1 - Critical Accounting Policies - (Continued)



Mortgage loans secured by one-to-four family properties and all consumer loans are large groups of smaller-balance homogeneous loans and are measured for impairment
collectively. Loans that experience insignificant payment delays, which are defined as 90 days or less, generally are not classified as impaired. Management determines the significance of payment delays on a case-by-case basis taking into
consideration all circumstances concerning the loan, the credit worthiness and payment history of the borrower, the length of the payment delay, and the amount of shortfall in relation to the principal and interest owed. Individual loan reviews are
based upon specific quantitative and qualitative criteria, including the size of the loan, loan quality ratings, value of collateral, repayment ability of borrowers, and historical experience factors. The historical experience factors utilized for
individual loan reviews are based upon past loss experience, known trends in losses and delinquencies, the growth of loans in particular markets and industries, and known changes in economic conditions in the particular lending markets. Allowances
for homogeneous loans (such as residential mortgage loans, personal loans, etc.) are evaluated based upon historical loss experience, trends in losses and delinquencies, growth of loans in particular markets, and known changes in economic conditions
in each lending market. There can be no assurance the allowance for loan losses will be adequate to cover all losses, but management believes the allowance for loan losses in the amount of $2,425,439 at March 31, 2005, was adequate to provide for
probable losses from existing loans based on information currently available. While management uses available information to provide for loan losses, the ultimate collectibility of a substantial portion of the loan portfolio, and the need for future
additions to the allowance, will be based on changes in economic conditions and other relevant factors. As such, an adverse change in economic activity could reduce cash flows for both commercial and individual borrowers, which would likely cause
the Company to experience increases in problem assets, delinquencies and losses on loans.



INVESTMENT SECURITIES



Investment securities are classified at the time of purchase, based on managements intention and ability, as securities available for sale or held to maturity. Debt securities classified as held to maturity are stated at cost adjusted
for amortization of premium and accretion of discount which are computed using the interest method and recognized as adjustments of interest income. Certain other debt and equity securities have been classified as available for sale to serve
principally as a source of liquidity. Unrealized holding gains and losses for available-for-sale securities are reported as a separate component of stockholders equity, net of tax, until realized. Realized securities gains and losses are
computed using the specific identification method. Interest and dividends on investment securities are recognized as income when earned.



Common stock of the Federal Home Loan Bank (FHLB) and Federal Reserve Bank represents ownership interest in institutions that are wholly owned by other
financial institutions. These equity securities are accounted for at cost and are classified with other assets.



While temporary changes in the market value of available-for-sale securities are not recognized in earnings, a decline in fair value below amortized cost deemed to be
other-than-temporary results in an adjustment to the cost basis of the investment, with a corresponding loss charged against earnings. Management evaluates the investment securities for other-than-temporary declines in estimated fair value on a
quarterly basis. This analysis requires management to consider various factors in order to determine if a decline in estimated fair value is temporary or other-than-temporary. These factors include duration and magnitude of the decline in value, the
financial condition of the issuer, and the companys ability and intent to continue holding the investment for a period of time sufficient to allow for any anticipated recovery in market value. At March 31, 2005, there were no investment
securities identified by management to be other-than-temporarily impaired. If investments decline in fair value due to adverse changes in the financial markets, charges to income could occur in future periods.



GOODWILL AND OTHER INTANGIBLE ASSETS



The Company purchased the deposits of another financial institution in 2001. An identifiable
intangible asset resulted from the purchase of the core deposits and, as such, are amortized into noninterest expense on the straight-line basis over the period the Company expects to benefit from such assets (7 years). While management feels the
assumptions and variables used to value the acquisition was reasonable, the use of different, but still reasonable, assumptions could produce different results. The Company recognized amortization expense of $22,188 in both of the three months ended
March 31, 2005 and 2004. The unamortized balance from the purchase of these core deposit intangible assets is $258,858 and $281,046 at March 31, 2005 and December 31, 2004, respectively.



The Company has approximately $1.6 million of goodwill, resulting from the purchase of a less-than-whole financial institution. As such,
goodwill value is supported ultimately by revenue that is driven by the volume of business transacted. A decline in earnings as a result of a lack of growth or the inability to deliver cost effective services over sustained periods can lead to
impairment of goodwill that could adversely impact earnings in future periods. Goodwill and other intangibles are periodically reviewed for impairment. No impairment losses were recognized. Additionally, future events could cause management to
conclude that impairment indicators exist and that the goodwill is impaired, which would result in the Company recording an impairment loss. Any resulting impairment loss could have a material, adverse impact on the Companys financial
condition and results of operations.



9



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##### Table of Contents

First West Virginia Bancorp, Inc.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2005 AND 2004

(Unaudited)



Note 1 - Critical Accounting Policies - (Continued)



INCOME TAXES



The Company and its subsidiary file a consolidated federal income tax return. Deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax
assets and liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. Deferred income tax expenses or benefits are based
on the changes in the deferred tax asset or liability from period to period. The provision for income taxes during the current period is at a rate which management believes will approximate the effective rate for the year.



CASH FLOWS



Cash and cash equivalents consist of cash and due from banks and federal funds sold.



COMPREHENSIVE INCOME



The Company is required to present comprehensive income in a full set of general-purpose
financial statements for all periods presented. The following represents comprehensive income for the three months ended March 31, 2005, and 2004. Other comprehensive income comprises unrealized holding gains (losses) on the available-for-sale
securities portfolio. The Company has elected to report the effects of other comprehensive income as part of the Consolidated Statement of Changes in Stockholders Equity.



The following table represents other comprehensive income before tax and net of tax:



|                  |  |               |            |   |                   |   |          |  
|----------------- |  | ------------- | ---------- | - | ----------------- | - | -------- | -
|                  |  | March 31,2005 |            |   | December 31, 2004 |  
|Before-tax amount |  | $             | (1,250,505 | ) |                   | $ | (887,106 | )
|Tax effect        |  |               | 470,565    |   |                   |   | 333,818  |  
|                  |  |               |            |   |                   |   |          |  
|Net of tax effect |  | $             | (779,940   | ) |                   | $ | (553,288 | )
|                  |  |               |            |   |                   |   |          |  



NOTE 2 - REGULATORY MATTERS



In December, 2004, the Companys subsidiary bank entered into an
agreement with the Office of the Comptroller of the Currency (OCC) relating to the results of its most recent report of examination. The Formal Agreement contains certain required actions and certain restrictions. The agreement requires the
subsidiary bank to develop plans, programs, policies, and procedures relating to management and board supervision, long-term strategic goals, loan portfolio, criticized assets, capital, internal audit and internal loan review by certain dates and
then to implement and follow those plans, programs, policies and procedures. A review and evaluation of certain groups of loans and correction of deficiencies is also required. Additionally, the formal agreement mandates that the subsidiary bank
achieve and maintain a 7.50% Tier 1 leverage ratio and 13.0% Tier 1 capital ratio by March 31, 2005. The subsidiary bank was granted an extension until May 30, 2005 to meet the capital requirements. Under the terms of the formal agreement, the board
of directors of the subsidiary bank is responsible for the proper and sound management of the Bank and must appoint a compliance committee from among their independent members, and report monthly to the OCC on the progress in complying with the
agreement. The subsidiary bank board has appointed a compliance committee and has filed monthly reports with the OCC.



The Companys board of directors also adopted a resolution with the Federal Reserve Bank of Cleveland, under authority given it by the Board of Governors of the
Federal Reserve System, the federal regulatory agency for the Company. As with the agreement of the OCC, the Federal Reserve resolution necessitates certain actions and restrictions. Without prior Federal Reserve approval and a 30 day prior notice
requirement, the resolution prohibits the Company from paying dividends, incurring debt, or participating in the acquisition of treasury stock. In addition, prior written approval is required before engaging in any non-bank activities. To date, the
Company has taken, and intends to continue to take, all appropriate steps to comply with the Federal Reserve requirements.



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##### Table of Contents

First West Virginia Bancorp, Inc.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2005 AND 2004

(Unaudited)



NOTE 3 - RECENT ACCOUNTING PRONOUNCEMENTS



In April, the Securities and Exchange Commission adopted a new rule that amends the compliance dates for Financial Accounting Standards Boards (FASB)
Statement of Financial Accounting Standards No. 123 (revised 2004), Share-Based Payment (FAS No. 123R). The Statement requires that compensation cost relating to share-based payment transactions be recognized in financial statements and that this
cost be measured based on the fair value of the equity or liability instruments issued. FAS No. 123 (Revised 2004) covers a wide range of share-based compensation arrangements including share options, restricted share plans, performance-based
awards, share appreciation rights, and employee share purchase plans. The Company will adopt FAS No. 123 (Revised 2004) on January 1, 2006 and is currently evaluating the impact the adoption of the standard will have on the Companys results of
operations.



In December 2004, FASB issued FAS No. 153, Exchanges of
Nonmonetary Assets - An Amendment of APB Opinion No. 29. The guidance in APB Opinion No. 29, Accounting for Nonmonetary Transactions, is based on the principle that exchanges of nonmonetary assets should be measured based on the
fair value of the assets exchanged. The guidance in that Opinion, however, included certain exceptions to that principle. FAS No. 153 amends Opinion No. 29 to eliminate the exception for nonmonetary exchanges of similar productive assets and
replaces it with a general exception for exchanges of nonmonetary assets that do not have commercial substance. A nonmonetary exchange has commercial substance if the future cash flows of the entity are expected to change significantly as a result
of the exchange. The provisions of FAS No. 153 are effective for nonmonetary asset exchanges occurring in fiscal periods beginning after June 15, 2005. Early application is permitted and companies must apply the standard prospectively. The adoption
of this standard is not expected to have a material effect on the Companys results of operations or financial position.



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##### Table of Contents

First West Virginia Bancorp, Inc.

Managements Discussion and Analysis of the Financial Condition and

Results of Holding Company
Operations



First West Virginia Bancorp, Inc., a West Virginia corporation
headquartered in Wheeling, West Virginia, has one wholly-owned subsidiary: Progressive Bank, N.A., which operates in Wheeling, Wellsburg, Moundsville, New Martinsville, Buckhannon and Weston, West Virginia and Bellaire, Ohio. Following is a
discussion and analysis of the significant changes in the financial condition and results of operations of First West Virginia Bancorp, Inc., (the Company), and its subsidiary for the three months ended March 31, 2005 and 2004. This discussion and
analysis should be read in conjunction with the Consolidated Financial Statements, Notes, and tables contained in this report, as well as with the Holding Companys Annual Report contained on Form 10-K for the year ended December 31, 2004.



Forward-Looking Information



Certain information contained in this report, which are not historical facts, may be
forward-looking statements that involve risks and uncertainties. These statements are subject to important factors that could cause action results to differ materially from those contemplated by such statements, including without limitation, the
effect of changing economic conditions, changes in interest rates, changes in lending activities, changes in state and federal regulations, and other external factors which may materially impact the Companys operational and financial
performance.



OVERVIEW



The Company reported net income of $545,728 or $.36 per share for the three months ended
March 31, 2005 compared to $658,740 or $.43 per share for the same period during 2004. The 17.2% decrease in earnings was primarily due to the increase in noninterest expenses and the provision for loan losses, offset in part by the increases in net
interest income and noninterest income for the three months ended March 31, 2005 as compared to the same period in 2004. For the first three months of 2005, the Companys return on average assets (ROA) was .79% as compared to .94% for the same
period in 2004. The annualized return on average equity (ROE) was 9.23% for the first three months of 2005 as compared to 11.78% for the same period in 2004.



Operational earnings improved with net interest income increasing $71,993 or 3.2%, during the three months ended March 31, 2005, as compared to the same period in 2004.
Net interest income increased primarily due to the decrease in the interest rates paid on interest bearing liabilities. Noninterest expenses increased $306,369 or 18.9% during the three months ended March 31, 2005 as compared to the same period in
2004 primarily due to expenses associated with the December, 2004 formal agreement between the Companys subsidiary bank and the Office of the Comptroller of the Currency as well as the related expenses of leasing a new corporate office
facility in January, 2005.



The Company ended the first quarter of 2005 with
total assets of $273,202,178. Loans decreased during the first three months of 2005 by $4,240,740, or 2.7%, to $150,090,297. Total deposits decreased by $4,451,523, or 1.9% since December 31, 2004 and was primarily due to a decrease in savings and
time deposits offset in part by the increase in noninterest bearing deposits.



The allowance for loan losses amounted to $2,425,439 or 1.6% of total loans at March 31, 2005, compared to $2,356,101 or 1.5% of total loans at December 31, 2004. Non-performing assets were $1,867,000 at March 31, 2005, as compared to
$1,642,000 at December 31, 2004. The increase in non-performing assets was primarily due to the additional nonaccrual loans.



Table One is a summary of Selected Financial Data of the Company. The sections that follow discuss in more detail the information summarized in Table One.



12



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##### Table of Contents

Table One



SELECTED FINANCIAL DATA

(Dollars in thousands, except per share
data)



|                                                  |  |                                     |         |   |              |   |         |      |  |   |         |   |  |      |         |   |      |   |         |   |  |   |         |  
|------------------------------------------------- |  | ----------------------------------- | ------- | - | ------------ | - | ------- | ---- |  | - | ------- | - |  | ---- | ------- | - | ---- | - | ------- | - |  | - | ------- | -
|                                                  |  | For the three months endedMarch 31, |         |   | December 31, |  
|                                                  |  | 2005                                |         |   | 2004         |   |         | 2004 |  |   | 2003    |   |  | 2002 |         |   | 2001 |  
|SUMMARY OF OPERATIONS                             |  |                                     |         |   |              |   |         |      |  |   |         |   |  |      |         |   |      |   |         |   |  |   |         |  
|Total interest income                             |  | $                                   | 3,306   |   |              | $ | 3,312   |      |  | $ | 13,406  |   |  | $    | 13,319  |   |      | $ | 14,309  |   |  | $ | 14,772  |  
|Total interest expense                            |  |                                     | 987     |   |              |   | 1,066   |      |  |   | 4,195   |   |  |      | 4,603   |   |      |   | 5,101   |   |  |   | 6,422   |  
|Net interest income                               |  |                                     | 2,319   |   |              |   | 2,246   |      |  |   | 9,211   |   |  |      | 8,716   |   |      |   | 9,208   |   |  |   | 8,350   |  
|Provision for loan losses                         |  |                                     | 90      |   |              |   | 30      |      |  |   | 300     |   |  |      | 435     |   |      |   | 540     |   |  |   | 573     |  
|Total other income                                |  |                                     | 373     |   |              |   | 287     |      |  |   | 1,284   |   |  |      | 1,346   |   |      |   | 1,033   |   |  |   | 942     |  
|Total other expenses                              |  |                                     | 1,931   |   |              |   | 1,624   |      |  |   | 6,747   |   |  |      | 6,342   |   |      |   | 6,062   |   |  |   | 5,324   |  
|Income before income taxes                        |  |                                     | 671     |   |              |   | 879     |      |  |   | 3,448   |   |  |      | 3,285   |   |      |   | 3,639   |   |  |   | 3,395   |  
|Net income                                        |  |                                     | 546     |   |              |   | 659     |      |  |   | 2,637   |   |  |      | 2,518   |   |      |   | 2,674   |   |  |   | 2,412   |  
|PER SHARE DATA                                    |  |                                     |         |   |              |   |         |      |  |   |         |   |  |      |         |   |      |   |         |   |  |   |         |  
|Net income                                        |  | $                                   | 0.36    |   |              | $ | 0.43    |      |  | $ | 1.73    |   |  | $    | 1.64    |   |      | $ | 1.74    |   |  | $ | 1.57    |  
|Cash dividends declared                           |  |                                     | 0.19    |   |              |   | 0.19    |      |  |   | 0.76    |   |  |      | 0.73    |   |      |   | 0.69    |   |  |   | 0.68    |  
|Book value per share                              |  |                                     | 15.33   |   |              |   | 15.53   |      |  |   | 15.67   |   |  |      | 15.07   |   |      |   | 14.60   |   |  |   | 13.16   |  
|AVERAGE BALANCE SHEET SUMMARY                     |  |                                     |         |   |              |   |         |      |  |   |         |   |  |      |         |   |      |   |         |   |  |   |         |  
|Total loans, net                                  |  | $                                   | 152,050 |   |              | $ | 149,006 |      |  | $ | 151,562 |   |  | $    | 137,826 |   |      | $ | 131,383 |   |  | $ | 118,224 |  
|Investment securities                             |  |                                     | 107,010 |   |              |   | 112,579 |      |  |   | 110,528 |   |  |      | 117,758 |   |      |   | 93,962  |   |  |   | 73,639  |  
|Deposits - interest bearing                       |  |                                     | 210,219 |   |              |   | 218,060 |      |  |   | 215,937 |   |  |      | 217,064 |   |      |   | 200,170 |   |  |   | 168,820 |  
|Stockholders equity                              |  |                                     | 23,998  |   |              |   | 22,503  |      |  |   | 23,092  |   |  |      | 21,884  |   |      |   | 20,302  |   |  |   | 18,902  |  
|Total assets                                      |  |                                     | 280,605 |   |              |   | 281,898 |      |  |   | 284,930 |   |  |      | 277,952 |   |      |   | 252,543 |   |  |   | 217,006 |  
|BALANCE SHEET                                     |  |                                     |         |   |              |   |         |      |  |   |         |   |  |      |         |   |      |   |         |   |  |   |         |  
|Investments                                       |  | $                                   | 102,875 |   |              | $ | 114,858 |      |  | $ | 106,561 |   |  | $    | 119,245 |   |      | $ | 108,065 |   |  | $ | 82,202  |  
|Loans                                             |  |                                     | 150,090 |   |              |   | 151,150 |      |  |   | 154,331 |   |  |      | 146,711 |   |      |   | 136,772 |   |  |   | 120,944 |  
|Other assets                                      |  |                                     | 20,237  |   |              |   | 18,589  |      |  |   | 18,910  |   |  |      | 18,155  |   |      |   | 19,517  |   |  |   | 28,884  |  
|                                                  |  |                                     |         |   |              |   |         |      |  |   |         |   |  |      |         |   |      |   |         |   |  |   |         |  
|Total Assets                                      |  | $                                   | 273,202 |   |              | $ | 284,597 |      |  | $ | 279,802 |   |  | $    | 284,111 |   |      | $ | 264,354 |   |  | $ | 232,030 |  
|                                                  |  |                                     |         |   |              |   |         |      |  |   |         |   |  |      |         |   |      |   |         |   |  |   |         |  
|Deposits                                          |  | $                                   | 231,719 |   |              | $ | 240,395 |      |  | $ | 236,171 |   |  | $    | 241,947 |   |      | $ | 231,376 |   |  | $ | 203,772 |  
|Federal funds purchased and repurchase agreements |  |                                     | 14,176  |   |              |   | 13,546  |      |  |   | 15,759  |   |  |      | 15,089  |   |      |   | 9,038   |   |  |   | 6,538   |  
|FHLB borrowings                                   |  |                                     | 2,415   |   |              |   | 2,454   |      |  |   | 2,425   |   |  |      | 2,464   |   |      |   |        |   |  |   |        |  
|Other liabilities                                 |  |                                     | 1,464   |   |              |   | 4,459   |      |  |   | 1,494   |   |  |      | 1,580   |   |      |   | 1,480   |   |  |   | 1,471   |  
|Stockholders equity                              |  |                                     | 23,428  |   |              |   | 23,743  |      |  |   | 23,953  |   |  |      | 23,031  |   |      |   | 22,460  |   |  |   | 20,249  |  
|                                                  |  |                                     |         |   |              |   |         |      |  |   |         |   |  |      |         |   |      |   |         |   |  |   |         |  
|Total Liabilities and Stockholders equity        |  | $                                   | 273,202 |   |              | $ | 284,597 |      |  | $ | 279,802 |   |  | $    | 284,111 |   |      | $ | 264,354 |   |  | $ | 232,030 |  
|                                                  |  |                                     |         |   |              |   |         |      |  |   |         |   |  |      |         |   |      |   |         |   |  |   |         |  
|SELECTED RATIOS                                   |  |                                     |         |   |              |   |         |      |  |   |         |   |  |      |         |   |      |   |         |   |  |   |         |  
|Return on average assets                          |  |                                     | 0.79    | % |              |   | 0.94    | %    |  |   | 0.93    | % |  |      | 0.91    | % |      |   | 1.06    | % |  |   | 1.11    | %
|Return on average equity                          |  |                                     | 9.23    | % |              |   | 11.78   | %    |  |   | 11.42   | % |  |      | 11.51   | % |      |   | 13.17   | % |  |   | 12.76   | %
|Average equity to average assets                  |  |                                     | 8.55    | % |              |   | 7.98    | %    |  |   | 8.10    | % |  |      | 7.87    | % |      |   | 8.04    | % |  |   | 8.71    | %
|Dividend payout ratio                             |  |                                     | 52.78   | % |              |   | 44.19   | %    |  |   | 43.93   | % |  |      | 44.51   | % |      |   | 39.66   | % |  |   | 43.31   | %
|Loan to Deposit ratio                             |  |                                     | 64.77   | % |              |   | 62.88   | %    |  |   | 65.35   | % |  |      | 60.64   | % |      |   | 59.11   | % |  |   | 59.35   | %



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##### Table of Contents

First West Virginia Bancorp, Inc.

Managements Discussion and Analysis of the Financial Condition and Results of Holding Company Operations



EARNINGS ANALYSIS



Net Interest Income



Net interest income, which is the difference between interest earned on loans and investments and interest paid on deposits and other liabilities, is the primary source
of earnings for the Holding Company. Changes in the volume and mix of earning assets and interest bearing liabilities combined with changes in market rates of interest greatly effect net interest income. Table Two presents the average balance sheets
and an interest rate analysis for the three months ended March 31, 2005 and 2004.



For the three months ended March 31, 2005, net interest income was $2,318,444, an increase of $71,993 or 3.2%, from the same period in 2004. The increase in net interest income was primarily due to the decrease in interest paid on deposit
liabilities. The changes in the volume and mix of earning assets and interest bearing liabilities combined with the changes in the market rates of interest resulted in taxable equivalent net interest yields on average earning assets of 3.88% for the
three months ended March 31, 2005, as compared to 3.73% at December 31, 2004 and 3.66% at March 31, 2004.



During the three months ended March 31, 2005, interest expense decreased $78,553 or 7.4% as compared to the same period in 2004. The lower interest rates paid on interest bearing liabilities combined with the decrease
in the average volume of interest bearing liabilities primarily resulted in the decline in interest expense. The average yield paid on interest bearing liabilities decreased .03%, from 1.78% at December 31, 2004 to 1.75% at March 31, 2005. The
decrease in the average yield on interest bearing liabilities was primarily due to the decrease in the interest rates paid on time deposits and savings deposits.



Interest income decreased $6,560 or .2% for the first three months of 2005 compared to the same period of the prior year. Interest income on
investment securities decreased $2,814 or .3% during the three months ended March 31, 2005 over 2004 and was primarily the result of the decline in the average volume of investment securities. Interest and fees on loans decreased $19,591 or .8% for
the three month period ended March 31, 2005 as compared to the same period in 2004. The decrease in interest and fees on loans was primarily due to the decrease in the interest rates earned on loans offset by the increase in the average volume of
loans. The taxable equivalent yield on loans decreased from 6.32% at December 31, 2004 to 6.24% at March 31, 2005.



Noninterest Income



Non interest income increased $86,074 or 30.0% for the three months ended March 31, 2005 as compared to same period of the prior year. The increase in noninterest income
was primarily due to an increase in gains on sales of investment securities combined with the increase in other operating income, offset in part by decrease in service charges.



The Company accounted for securities gains of $86,126 and securities losses of $8,270 during the three month period ended March 31, 2005
which were primarily sales of securities available for sale and securities gains of $56 and securities losses of $2,557 during the period ended March 31, 2004 and those sales were attributable to sales of marketable equity securities.



14



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##### Table of Contents

First West Virginia Bancorp, Inc.

Managements Discussion and Analysis of the Financial Condition and Results of Holding Company Operations



Noninterest Income (Continued)



Service charges decreased $26,592 during the three months ended March 31, 2005, down 13.8%, from the same period in 2004. The decrease in service charges primarily
resulted from a decrease in the number of charges assessed on deposit accounts compared to the prior year.



Other operating income represents fees from safe deposit box rentals, sales of checkbooks, sales of cashiers checks and money orders, utility collections, ATM charges and card fees, home equity credit line fees,
credit life commissions, credit card fees and commissions and various other charges and fees related to normal customer banking relationships. For the three month period ended March 31, 2005, other operating income increased $32,309 or 33.4%
compared to the same period in 2004. The increase in other operating income resulted primarily from the earnings related to the cash surrender value of the bank owned life insurance on its key officers.



Noninterest Expense



Noninterest expense increased $306,369 or 18.9% for the three months ended March 31, 2005 as
compared to same period of the prior year. The increase in noninterest expense was primarily due to increases in salary and employee benefits, net occupancy expense and other operating expense. Salary and employee benefits increased $69,315 or 7.8%
during the three months ended March 31, 2005 over the same period in 2004. The increased salary and employee benefit expense in 2005 compared to 2004 was primarily due to the hiring of additional personnel to enhance lending operations, increased
employee benefit costs and normal annual merit adjustments. Occupancy expenses increased $45,495 or 17.4% during the three months ended March 31, 2005 compared to the same period in 2004. Increased building maintenance costs, property taxes,
insurance, and equipment repair and maintenance costs primarily contributed to the increase in occupancy expenses in 2005 as compared to 2004. Other operating expenses increased $191,559 or 40.6% for the three months ended March 31, 2005 over 2004.
Other operating expenses primarily increased due to increases in service expense, director fees, regulatory assessments, stationery and supplies expense, postage expense, the loss related to the write down of other real estate owned and other
expenses, offset in part by decreases in advertising expense and other taxes. Increased operating expenses during the three months ended March 31, 2005 pertained to: a write down of other real estate owned which amounted to $55,570 and primarily
relates to commercial property held by the subsidiary bank; complaince with the Sarbanes-Oxley Act Section 404; and compliance with the December, 2004 Formal Agreement.



Income Taxes



Income tax expense for the three month period ended March 31, 2005 was $125,141, a decrease of 43.2% compared to the same period in 2004. Income tax expense decreased
primarily due to the decrease in pre-taxable income combined with the increase of tax-exempt income during the first three months of 2005 over the same period in 2004. Components of the income tax expense for March 31, 2005 were $96,950 for federal
taxes and $28,191 for West Virginia corporate net income taxes.



For federal
income tax purposes, tax-exempt income is based on qualified state, county, and municipal bonds and loans. Tax-exempt income was $326,929 and $306,992 for the three month periods ended March 31, 2005 and 2004, respectively. Federal income tax rates
and West Virginia corporate net income tax rates remain consistent at 34% and 9%, respectively, for the three months ended March 31, 2005 and 2004 and for the year ended December 31, 2004.



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##### Table of Contents

First West Virginia Bancorp, Inc.

Managements Discussion and Analysis of the Financial Condition and Results of Holding Company Operations



Table Two Average Balance Sheets and Interest Rate Analysis (dollars in thousands)



The following table presents an average balance sheet, interest earned on interest bearing
assets, interest paid on interest bearing liabilities, average interest rates and interest differentials for the three months ended March 31, 2005 and 2004 and the year ended December 31, 2004. Average balance sheet information for the periods ended
March 31, 2005 and 2004 and December 31, 2004 was compiled using the daily average balance sheet. Loan fees and unearned discounts were included in income for average rate calculation purposes. Average yields on investment securities available for
sale have been calculated based on amortized cost. Non-accrual loans were included in the average balance computations; however, no interest was included in income subsequent to the non-accrual status classification.



|                                                                                                                                                                                                                                                                                                                                                              |  |                            |         |   |                   |   |              |                            |      |                |  |   |          |   |              |   |        |                |      |   |          |   |              |   |  |   |       |  |      |  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------- | ------- | - | ----------------- | - | ------------ | -------------------------- | ---- | -------------- |  | - | -------- | - | ------------ | - | ------ | -------------- | ---- | - | -------- | - | ------------ | - |  | - | ----- |  | ---- | -
|                                                                                                                                                                                                                                                                                                                                                              |  | (Unaudited) March 31, 2005 |         |   | December 31, 2004 |   |              | (Unaudited) March 31, 2004 |     
|                                                                                                                                                                                                                                                                                                                                                              |  | Average Volume             |         |   | Interest          |   | Average Rate |                            |      | Average Volume |  |   | Interest |   | Average Rate |   |        | Average Volume |      |   | Interest |   | Average Rate |  
|ASSETS:                                                                                                                                                                                                                                                                                                                                                       |  |                            |         |   |                   |   |              |                            |      |                |  |   |          |   |              |   |        |                |      |   |          |   |              |   |  |   |       |  |      |  
|Investment securities:                                                                                                                                                                                                                                                                                                                                        |  |                            |         |   |                   |   |              |                            |      |                |  |   |          |   |              |   |        |                |      |   |          |   |              |   |  |   |       |  |      |  
|U.S. Treasury and U. S. Government agencies                                                                                                                                                                                                                                                                                                                   |  | $                          | 47,470  |   |                   | $ | 374          |                            | 3.20 | %              |  | $ | 47,484   |   |              | $ | 1,457  |                | 3.07 | % |          | $ | 53,144       |   |  | $ | 400   |  | 3.03 | %
|Mortgage backed securities                                                                                                                                                                                                                                                                                                                                    |  |                            | 38,464  |   |                   |   | 357          |                            | 3.76 | %              |  |   | 39,313   |   |              |   | 1,346  |                | 3.42 | % |          |   | 37,020       |   |  |   | 314   |  | 3.41 | %
|States and political subdivisions                                                                                                                                                                                                                                                                                                                             |  |                            | 19,034  |   |                   |   | 174          |                            | 3.71 | %              |  |   | 20,005   |   |              |   | 728    |                | 3.64 | % |          |   | 18,880       |   |  |   | 171   |  | 3.64 | %
|Other securities                                                                                                                                                                                                                                                                                                                                              |  |                            | 2,042   |   |                   |   | 25           |                            | 4.97 | %              |  |   | 3,726    |   |              |   | 193    |                | 5.18 | % |          |   | 3,535        |   |  |   | 48    |  | 5.46 | %
|                                                                                                                                                                                                                                                                                                                                                              |  |                            |         |   |                   |   |              |                            |      |                |  |   |          |   |              |   |        |                |      |   |          |   |              |   |  |   |       |  |      |  
|Total Investment securities:                                                                                                                                                                                                                                                                                                                                  |  |                            | 107,010 |   |                   |   | 930          |                            | 3.52 | %              |  |   | 110,528  |   |              |   | 3,724  |                | 3.37 | % |          |   | 112,579      |   |  |   | 933   |  | 3.33 | %
|Interest bearing deposits                                                                                                                                                                                                                                                                                                                                     |  |                            | 528     |   |                   |   | 3            |                            | 2.30 | %              |  |   | 993      |   |              |   | 11     |                | 1.11 | % |          |   | 1,381        |   |  |   | 3     |  | 0.87 | %
|Federal funds sold                                                                                                                                                                                                                                                                                                                                            |  |                            | 4,645   |   |                   |   | 27           |                            | 2.36 | %              |  |   | 6,041    |   |              |   | 77     |                | 1.27 | % |          |   | 5,738        |   |  |   | 13    |  | 0.91 | %
|Loans, net of unearned income                                                                                                                                                                                                                                                                                                                                 |  |                            | 152,050 |   |                   |   | 2,338        |                            | 6.24 | %              |  |   | 151,562  |   |              |   | 9,572  |                | 6.32 | % |          |   | 149,006      |   |  |   | 2,357 |  | 6.36 | %
|Other earning assets                                                                                                                                                                                                                                                                                                                                          |  |                            | 789     |   |                   |   | 7            |                            | 3.60 | %              |  |   | 930      |   |              |   | 22     |                | 2.37 | % |          |   | 948          |   |  |   | 6     |  | 2.55 | %
|                                                                                                                                                                                                                                                                                                                                                              |  |                            |         |   |                   |   |              |                            |      |                |  |   |          |   |              |   |        |                |      |   |          |   |              |   |  |   |       |  |      |  
|Total earning assets                                                                                                                                                                                                                                                                                                                                          |  |                            | 265,022 |   |                   |   | 3,305        |                            | 5.06 | %              |  |   | 270,054  |   |              |   | 13,406 |                | 4.96 | % |          |   | 269,652      |   |  |   | 3,312 |  | 4.94 | %
|Cash and due from banks                                                                                                                                                                                                                                                                                                                                       |  |                            | 6,074   |   |                   |   |              |                            |      |                |  |   | 6,055    |   |              |   |        |                |      |   |          |   | 5,524        |   |  |   |       |  |      |  
|Bank premises and equipment                                                                                                                                                                                                                                                                                                                                   |  |                            | 3,858   |   |                   |   |              |                            |      |                |  |   | 3,876    |   |              |   |        |                |      |   |          |   | 3,891        |   |  |   |       |  |      |  
|Other assets                                                                                                                                                                                                                                                                                                                                                  |  |                            | 8,043   |   |                   |   |              |                            |      |                |  |   | 7,221    |   |              |   |        |                |      |   |          |   | 5,109        |   |  |   |       |  |      |  
|Allowance for loan losses                                                                                                                                                                                                                                                                                                                                     |  |                            | (2,392  | ) |                   |   |              |                            |      |                |  |   | (2,276   | ) |              |   |        |                |      |   |          |   | (2,278       | ) |  |   |       |  |      |  
|                                                                                                                                                                                                                                                                                                                                                              |  |                            |         |   |                   |   |              |                            |      |                |  |   |          |   |              |   |        |                |      |   |          |   |              |   |  |   |       |  |      |  
|Total Assets                                                                                                                                                                                                                                                                                                                                                  |  | $                          | 280,605 |   |                   |   |              |                            |      |                |  | $ | 284,930  |   |              |   |        |                |      |   |          | $ | 281,898      |   |  |   |       |  |      |  
|                                                                                                                                                                                                                                                                                                                                                              |  |                            |         |   |                   |   |              |                            |      |                |  |   |          |   |              |   |        |                |      |   |          |   |              |   |  |   |       |  |      |  
|LIABILITIES                                                                                                                                                                                                                                                                                                                                                   |  |                            |         |   |                   |   |              |                            |      |                |  |   |          |   |              |   |        |                |      |   |          |   |              |   |  |   |       |  |      |  
|Time deposits                                                                                                                                                                                                                                                                                                                                                 |  | $                          | 85,215  |   |                   | $ | 661          |                            | 3.15 | %              |  | $ | 87,972   |   |              | $ | 2,786  |                | 3.17 | % |          | $ | 91,245       |   |  | $ | 734   |  | 3.24 | %
|Savings deposits                                                                                                                                                                                                                                                                                                                                              |  |                            | 85,244  |   |                   |   | 197          |                            | 0.94 | %              |  |   | 88,786   |   |              |   | 879    |                | 0.99 | % |          |   | 88,705       |   |  |   | 218   |  | 0.99 | %
|Interest bearing demand deposits                                                                                                                                                                                                                                                                                                                              |  |                            | 39,760  |   |                   |   | 28           |                            | 0.29 | %              |  |   | 39,179   |   |              |   | 127    |                | 0.32 | % |          |   | 38,110       |   |  |   | 30    |  | 0.32 | %
|Federal funds purchased and repurchase agreements                                                                                                                                                                                                                                                                                                             |  |                            | 15,688  |   |                   |   | 72           |                            | 1.86 | %              |  |   | 16,906   |   |              |   | 286    |                | 1.69 | % |          |   | 13,654       |   |  |   | 55    |  | 1.62 | %
|FHLB borrowings                                                                                                                                                                                                                                                                                                                                               |  |                            | 2,420   |   |                   |   | 29           |                            | 4.86 | %              |  |   | 2,444    |   |              |   | 117    |                | 4.79 | % |          |   | 2,459        |   |  |   | 29    |  | 4.74 | %
|                                                                                                                                                                                                                                                                                                                                                              |  |                            |         |   |                   |   |              |                            |      |                |  |   |          |   |              |   |        |                |      |   |          |   |              |   |  |   |       |  |      |  
|Total interest bearing liabilities                                                                                                                                                                                                                                                                                                                            |  |                            | 228,327 |   |                   |   | 987          |                            | 1.75 | %              |  |   | 235,287  |   |              |   | 4,195  |                | 1.78 | % |          |   | 234,173      |   |  |   | 1,066 |  | 1.83 | %
|Demand deposits                                                                                                                                                                                                                                                                                                                                               |  |                            | 26,695  |   |                   |   |              |                            |      |                |  |   | 24,885   |   |              |   |        |                |      |   |          |   | 23,488       |   |  |   |       |  |      |  
|Other liabilities                                                                                                                                                                                                                                                                                                                                             |  |                            | 1,585   |   |                   |   |              |                            |      |                |  |   | 1,666    |   |              |   |        |                |      |   |          |   | 1,734        |   |  |   |       |  |      |  
|                                                                                                                                                                                                                                                                                                                                                              |  |                            |         |   |                   |   |              |                            |      |                |  |   |          |   |              |   |        |                |      |   |          |   |              |   |  |   |       |  |      |  
|Total Liabilities                                                                                                                                                                                                                                                                                                                                             |  |                            | 256,607 |   |                   |   |              |                            |      |                |  |   | 261,838  |   |              |   |        |                |      |   |          |   | 259,395      |   |  |   |       |  |      |  
|STOCKHOLDERS EQUITY                                                                                                                                                                                                                                                                                                                                          |  |                            | 23,998  |   |                   |   |              |                            |      |                |  |   | 23,092   |   |              |   |        |                |      |   |          |   | 22,503       |   |  |   |       |  |      |  
|                                                                                                                                                                                                                                                                                                                                                              |  |                            |         |   |                   |   |              |                            |      |                |  |   |          |   |              |   |        |                |      |   |          |   |              |   |  |   |       |  |      |  
|Total Liabilities and Stockholders Equity                                                                                                                                                                                                                                                                                                                    |  | $                          | 280,605 |   |                   |   |              |                            |      |                |  | $ | 284,930  |   |              |   |        |                |      |   |          | $ | 281,898      |   |  |   |       |  |      |  
|                                                                                                                                                                                                                                                                                                                                                              |  |                            |         |   |                   |   |              |                            |      |                |  |   |          |   |              |   |        |                |      |   |          |   |              |   |  |   |       |  |      |  
|Net yield on earning assets                                                                                                                                                                                                                                                                                                                                   |  |                            |         |   |                   | $ | 2,318        |                            | 3.55 | %              |  |   |          |   |              | $ | 9,211  |                | 3.41 | % |          |   |              |   |  | $ | 2,246 |  | 3.35 | %
|                                                                                                                                                                                                                                                                                                                                                              |  |                            |         |   |                   |   |              |                            |      |                |  |   |          |   |              |   |        |                |      |   |          |   |              |   |  |   |       |  |      |  
|The fully taxable equivalent basis of interest income from
obligations of states and political subdivisions has been determined using a combined Federal and State corporate income tax rate of 40% for the three months ended March 31, 2005 and 2004, and the year ended December 31, 2004, respectively. The
effect of this adjustment is presented below. |  |                            |        
|Investment securities                                                                                                                                                                                                                                                                                                                                         |  | $                          | 107,010 |   |                   | $ | 1,037        |                            | 3.93 | %              |  | $ | 110,528  |   |              | $ | 4,165  |                | 3.77 | % |          | $ | 112,579      |   |  | $ | 1,037 |  | 3.70 | %
|Loans                                                                                                                                                                                                                                                                                                                                                         |  |                            | 152,050 |   |                   |   | 2,449        |                            | 6.53 | %              |  |   | 151,562  |   |              |   | 10,000 |                | 6.60 | % |          |   | 149,006      |   |  |   | 2,458 |  | 6.63 | %
|                                                                                                                                                                                                                                                                                                                                                              |  |                            |         |   |                   |   |              |                            |      |                |  |   |          |   |              |   |        |                |      |   |          |   |              |   |  |   |       |  |      |  
|Total earning assets                                                                                                                                                                                                                                                                                                                                          |  | $                          | 265,022 |   |                   | $ | 3,523        |                            | 5.39 | %              |  | $ | 270,054  |   |              | $ | 14,275 |                | 5.29 | % |          | $ | 269,652      |   |  | $ | 3,517 |  | 5.25 | %
|                                                                                                                                                                                                                                                                                                                                                              |  |                            |         |   |                   |   |              |                            |      |                |  |   |          |   |              |   |        |                |      |   |          |   |              |   |  |   |       |  |      |  
|Taxable equivalent net yield on earning assets                                                                                                                                                                                                                                                                                                                |  |                            |         |   |                   | $ | 2,536        |                            | 3.88 | %              |  |   |          |   |              | $ | 10,080 |                | 3.73 | % |          |   |              |   |  | $ | 2,451 |  | 3.66 | %
|                                                                                                                                                                                                                                                                                                                                                              |  |                            |         |   |                   |   |              |                            |      |                |  |   |          |   |              |   |        |                |      |   |          |   |              |   |  |   |       |  |      |  



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##### Table of Contents

First West Virginia Bancorp, Inc.

Managements Discussion and Analysis of the Financial Condition and Results of Holding Company Operations



Balance Sheet Analysis



Investments



Investment securities decreased $3,685,924 or 3.5% from December 31, 2004 to March 31, 2005. The investment portfolio is managed to attempt to achieve an optimum mix of asset quality, liquidity and maximum yield on
investments. Taxable securities comprised 82.3% of total securities at March 31, 2005 and December 31, 2004. Other than the normal risks inherent in purchasing U.S. Treasury securities, U.S. Government corporation and agencies securities, and
obligations of states and political subdivisions, i.e. interest rate risk, management has no knowledge of other market or credit risk involved in these investments. The Company does not have any high risk hybrid/derivative instruments.



Investment securities that are classified available for sale are available for sale at any
time based upon managements assessment of changes in economic or financial market conditions. These securities are carried at fair value and the unrealized holding gains and losses, net of taxes, are reflected as a separate component of
stockholders equity until realized. Available for sale securities, at fair value decreased $3,683,676 or 3.6% from December 31, 2004, and represented 97.3% of the investment portfolio at March 31, 2005. The decrease was primarily due to
maturities and calls of U.S. Treasury and U.S. Government corporation and agency securities and obligations of states and political subdivisions and sales of corporate debt securities. The held to maturity securities decreased $2,248 or .1% from
December 31, 2004 and represented 2.7% of the investment portfolio as of March 31, 2005. As the investment portfolio consists primarily of fixed rate debt securities, changes in the market rates of interest will effect the carrying value of
securities available for sale, adjusted upward or downward under the requirements of FAS 115 and represent temporary adjustments in values. The carrying value of securities available for sale was decreased by $1,140,023 at March 31, 2005 and
increased by $110,482 at December 31, 2004. The fair value of securities classified as held to maturity was above book value by $76,023 and $102,751 at March 31, 2005 and December 31, 2004, respectively.



Table Four - Investment Portfolio



The following table presents the book values of investment securities (in thousands):



|                                                                                      |  |                           |         |                  |   |        
|------------------------------------------------------------------------------------- |  | ------------------------- | ------- | ---------------- | - | -------
|                                                                                      |  | (Unaudited) March 31,2005 |         | December 31,2004
|Securities held to maturity:                                                          |  |                           |         |                  |   |        
|Obligations of States & Political Subdivisions                                        |  | $                         | 2,822   |                  | $ | 2,825  
|                                                                                      |  |                           |         |                  |   |        
|Total held to maturity                                                                |  | $                         | 2,822   |                  | $ | 2,825  
|                                                                                      |  |                           |         |                  |   |        
|Securities available for sale:                                                        |  |                           |         |                  |   |        
|U.S. Treasury securities and obligations of U.S. Government corporations and Agencies |  | $                         | 46,284  |                  | $ | 43,590 
|Obligations of States & Political Subdivisions                                        |  |                           | 15,340  |                  |   | 17,263 
|Corporate Debt Securities                                                             |  |                           |        |                  |   | 2,848  
|Mortgage-Backed Securities                                                            |  |                           | 37,737  |                  |   | 39,390 
|Equity Securities                                                                     |  |                           | 692     |                  |   | 645    
|                                                                                      |  |                           |         |                  |   |        
|Total available for sale                                                              |  | $                         | 100,053 |                  | $ | 103,736
|                                                                                      |  |                           |         |                  |   |        
|Total                                                                                 |  | $                         | 102,875 |                  | $ | 106,561
|                                                                                      |  |                           |         |                  |   |        



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##### Table of Contents

First West Virginia Bancorp, Inc.

Managements Discussion and Analysis of the Financial Condition and Results of Holding Company Operations



Investments - Continued



Table Five - Maturity distribution of Investment Portfolio



(dollars in thousands)



The maturity distribution using book value including accretion of discounts and amortization of premiums and approximate yield of investment securities at March 31, 2005 and December 31, 2004 are presented in the
following table. Tax equivalent yield basis was used on tax exempt obligations. Approximate yield was calculated using a weighted average of yield to maturities.



|                                                 |  |                             |       |       |                               |   |        |                             |         |  |                               |        |  |       |       |  |        |   |       |   |         |  |      |  
|------------------------------------------------ |  | --------------------------- | ----- | ----- | ----------------------------- | - | ------ | --------------------------- | ------- |  | ----------------------------- | ------ |  | ----- | ----- |  | ------ | - | ----- | - | ------- |  | ---- | -
|                                                 |  | (Unaudited) March 31, 2005  |       |       | December 31, 2004             |  
|                                                 |  | Securities Held to Maturity |       |       | Securities Available for Sale |   |        | Securities Held to Maturity |         |  | Securities Available for Sale |       
|                                                 |  | Amount                      |       | Yield |                               |   | Amount |                             | Yield   |  |                               | Amount |  | Yield |       |  | Amount |   | Yield |  
|U.S. Treasury and other U.S. Government Agencies |  |                             |       |       |                               |   |        |                             |         |  |                               |        |  |       |       |  |        |   |       |   |         |  |      |  
|Within One Year                                  |  | $                           |      |       |                              | % |        | $                           | 11,017  |  | 2.24                          | %      |  | $     |      |  |       | % |       | $ | 11,058  |  | 2.24 | %
|After One But Within Five Years                  |  |                             |      |       |                              |   |        |                             | 30,533  |  | 3.35                          |        |  |       |      |  |       |   |       |   | 27,141  |  | 3.22 |  
|After Five But Within Ten Years                  |  |                             |      |       |                              |   |        |                             | 4,511   |  | 4.44                          |        |  |       |      |  |       |   |       |   | 5,163   |  | 4.27 |  
|After Ten Years                                  |  |                             |      |       |                              |   |        |                             | 223     |  | 2.92                          |        |  |       |      |  |       |   |       |   | 228     |  | 2.39 |  
|                                                 |  |                             |       |       |                               |   |        |                             |         |  |                               |        |  |       |       |  |        |   |       |   |         |  |      |  
|                                                 |  |                             |      |       |                              |   |        |                             | 46,284  |  | 3.19                          |        |  |       |      |  |       |   |       |   | 43,590  |  | 3.09 |  
|                                                 |  |                             |       |       |                               |   |        |                            
|States & Political Subdivisions                  |  |                             |       |       |                               |   |        |                             |         |  |                               |        |  |       |       |  |        |   |       |   |         |  |      |  
|Within One Year                                  |  |                             | 1,046 |       | 5.96                          |   |        |                             | 253     |  | 5.41                          |        |  |       | 1,049 |  | 5.96   |   |       |   | 536     |  | 4.29 |  
|After One But Within Five Years                  |  |                             | 1,679 |       | 6.46                          |   |        |                             | 5,955   |  | 4.35                          |        |  |       | 1,679 |  | 6.46   |   |       |   | 6,597   |  | 4.42 |  
|After Five But Within Ten Years                  |  |                             | 97    |       | 7.95                          |   |        |                             | 7,390   |  | 5.17                          |        |  |       | 97    |  | 7.95   |   |       |   | 8,009   |  | 5.14 |  
|After Ten Years                                  |  |                             |      |       |                              |   |        |                             | 1,742   |  | 6.16                          |        |  |       |      |  |       |   |       |   | 2,121   |  | 6.06 |  
|                                                 |  |                             |       |       |                               |   |        |                             |         |  |                               |        |  |       |       |  |        |   |       |   |         |  |      |  
|                                                 |  |                             | 2,822 |       | 6.33                          |   |        |                             | 15,340  |  | 4.97                          |        |  |       | 2,825 |  | 6.33   |   |       |   | 17,263  |  | 4.95 |  
|                                                 |  |                             |       |       |                               |   |        |                            
|Corporate Debt Securities                        |  |                             |       |       |                               |   |        |                             |         |  |                               |        |  |       |       |  |        |   |       |   |         |  |      |  
|Within One Year                                  |  |                             |      |       |                              |   |        |                             |        |  |                              |        |  |       |      |  |       |   |       |   | 1,811   |  | 6.29 |  
|After One But Within Five Years                  |  |                             |      |       |                              |   |        |                             |        |  |                              |        |  |       |      |  |       |   |       |   | 1,037   |  | 5.76 |  
|                                                 |  |                             |       |       |                               |   |        |                             |         |  |                               |        |  |       |       |  |        |   |       |   |         |  |      |  
|                                                 |  |                             |      |       |                              |   |        |                             |        |  |                              |        |  |       |      |  |       |   |       |   | 2,848   |  | 6.10 |  
|Mortgage-Backed Securities                       |  |                             |      |       |                              |   |        |                             | 37,737  |  | 4.12                          |        |  |       |      |  |       |   |       |   | 39,390  |  | 3.95 |  
|Equity Securities                                |  |                             |      |       |                              |   |        |                             | 692     |  | 2.09                          |        |  |       |      |  |       |   |       |   | 645     |  | 2.13 |  
|                                                 |  |                             |       |       |                               |   |        |                             |         |  |                               |        |  |       |       |  |        |   |       |   |         |  |      |  
|Total                                            |  | $                           | 2,822 |       | 6.33                          | % |        | $                           | 100,053 |  | 3.81                          | %      |  | $     | 2,825 |  | 6.33   | % |       | $ | 103,736 |  | 3.80 | %
|                                                 |  |                             |       |       |                               |   |        |                             |         |  |                               |        |  |       |       |  |        |   |       |   |         |  |      |  



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##### Table of Contents

First West Virginia Bancorp, Inc.

Managements Discussion and Analysis of the Financial Condition and Results of Holding Company Operations



Loans



Loans represent the largest asset on the Companys balance sheet. Total loans, net of unearned income, decreased $4.2 million or 2.8% from December 31, 2004 to March
31, 2005. The decline in the loan portfolio during the first three months of 2005 was primarily due to the decrease in residential real estate loans, commercial loans and installment loans, offset in part by an increase in other loans.



Real estate residential loans which include real estate construction, real estate
farmland, and real estate residential loans comprised thirty-three percent (33%) of the loan portfolio. Commercial loans which include real estate secured by non-farm, non-residential and commercial and industrial loans comprised forty-six percent
(46%) of the loan portfolio. Installment loans comprised eleven percent (11%) of the loan portfolio. Other loans which include non-rated industrial development obligations, direct financing leases and other loans comprised ten percent (10%) of the
loan portfolio. The changes in the composition of the loan portfolio since December 31, 2004 were a 1% increase in commercial loans, a 1% increase in other loans, a 1% decrease in real estate residential loans and a 1% decrease in installment loans.



Table Six - Loan Portfolio



Loans outstanding are as follows: (in thousands)



|                                              |  |                |         |                   |   |        
|--------------------------------------------- |  | -------------- | ------- | ----------------- | - | -------
|                                              |  | (Unaudited)    |         |                  
|                                              |  | March 31, 2005 |         | December 31, 2004
|Real Estate - residential:                    |  |                |         |                   |   |        
|Real Estate - construction                    |  | $              | 1,617   |                   | $ | 1,841  
|Real Estate - farmland                        |  |                | 258     |                   |   | 263    
|Real Estate - residential                     |  |                | 47,678  |                   |   | 49,754 
|                                              |  |                |         |                   |   |        
|                                              |  | $              | 49,553  |                   | $ | 51,858 
|                                              |  |                |         |                   |   |        
|Commercial:                                   |  |                |         |                   |   |        
|Real Estate-secured by nonfarm nonresidential |  | $              | 50,823  |                   | $ | 51,699 
|Commercial and industrial                     |  |                | 17,678  |                   |   | 18,092 
|                                              |  |                |         |                   |   |        
|                                              |  | $              | 68,501  |                   | $ | 69,791 
|                                              |  |                |         |                   |   |        
|Installment:                                  |  |                |         |                   |   |        
|Installment and other loans to individuals    |  | $              | 17,254  |                   | $ | 18,324 
|                                              |  |                |         |                   |   |        
|Other:                                        |  |                |         |                   |   |        
|Nonrated industrial development obligations   |  | $              | 14,973  |                   | $ | 14,538 
|Other loans                                   |  |                | 30      |                   |   | 40     
|                                              |  |                |         |                   |   |        
|                                              |  | $              | 15,003  |                   | $ | 14,578 
|                                              |  |                |         |                   |   |        
|Total                                         |  |                | 150,311 |                   |   | 154,551
|Less unearned interest                        |  |                | 221     |                   |   | 220    
|                                              |  |                |         |                   |   |        
|                                              |  | $              | 150,090 |                   | $ | 154,331
|                                              |  |                |         |                   |   |        



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First West Virginia Bancorp, Inc.

Managements Discussion and Analysis of the Financial Condition and Results of Holding Company Operations



Table Seven



Loan Portfolio - Maturities and sensitivities of Loans to Changes in Interest Rates

(dollars in thousands)



The following
table presents the contractual maturities of loans other than installment loans and residential mortgages as of March 31, 2005 and December 31, 2004:



|                                                                     |  |                    |       |                                   |   |                  |  |                     |        |                                   |   |                  |  |   |        |  |   |       
|-------------------------------------------------------------------- |  | ------------------ | ----- | --------------------------------- | - | ---------------- |  | ------------------- | ------ | --------------------------------- | - | ---------------- |  | - | ------ |  | - | ------
|                                                                     |  | March 31, 2005     |       | December 31, 2004                
|                                                                     |  | In oneYear or Less |       | After one Year Through Five Years |   | After Five Years |  | In one Year or Less |        | After one Year Through Five Years |   | After Five Years
|Real estate construction                                             |  | $                  | 460   |                                   | $ | 597              |  | $                   | 560    |                                   | $ | 515              |  | $ | 752    |  | $ | 574   
|Commercial real estate - secured by nonfarm, nonresidential property |  |                    | 1,495 |                                   |   | 1,924            |  |                     | 47,404 |                                   |   | 1,544            |  |   | 2,263  |  |   | 47,892
|Commercial and industrial                                            |  |                    | 1,194 |                                   |   | 7,917            |  |                     | 8,567  |                                   |   | 1,310            |  |   | 7,866  |  |   | 8,916 
|Nonrated industrial development obligations                          |  |                    | 1,637 |                                   |   | 3,338            |  |                     | 9,998  |                                   |   | 1,585            |  |   | 3,638  |  |   | 9,315 
|                                                                     |  |                    |       |                                   |   |                  |  |                     |        |                                   |   |                  |  |   |        |  |   |       
|Total                                                                |  | $                  | 4,786 |                                   | $ | 13,776           |  | $                   | 66,529 |                                   | $ | 4,954            |  | $ | 14,519 |  | $ | 66,697
|                                                                     |  |                    |       |                                   |   |                  |  |                     |        |                                   |   |                  |  |   |        |  |   |       



The following table presents an
analysis of fixed and variable rate loans as of March 31, 2005 and December 31, 2004 along with the contractual maturities of loans other than installment loans and residential mortgages:



|               |  |                    |       |                                   |   |                  |  |                     |        |                                   |   |                  |  |   |        |  |   |       
|-------------- |  | ------------------ | ----- | --------------------------------- | - | ---------------- |  | ------------------- | ------ | --------------------------------- | - | ---------------- |  | - | ------ |  | - | ------
|               |  | March 31, 2005     |       | December 31, 2004                
|               |  | In oneYear or Less |       | After one Year Through Five Years |   | After Five Years |  | In one Year or Less |        | After one Year Through Five Years |   | After Five Years
|Fixed Rates    |  | $                  | 2,854 |                                   | $ | 8,321            |  | $                   | 12,416 |                                   | $ | 2,951            |  | $ | 9,378  |  | $ | 12,817
|Variable Rates |  |                    | 1,932 |                                   |   | 5,455            |  |                     | 54,113 |                                   |   | 2,003            |  |   | 5,141  |  |   | 53,880
|               |  |                    |       |                                   |   |                  |  |                     |        |                                   |   |                  |  |   |        |  |   |       
|Total          |  | $                  | 4,786 |                                   | $ | 13,776           |  | $                   | 66,529 |                                   | $ | 4,954            |  | $ | 14,519 |  | $ | 66,697
|               |  |                    |       |                                   |   |                  |  |                     |        |                                   |   |                  |  |   |        |  |   |       



Non-performing assets include
non-accrual loans on which the collectibility of the full amount of interest is uncertain; loans which have been renegotiated to provide for a reduction or deferral of interest on principal because of a deterioration in the financial position of the
borrower; loans past due ninety days or more as to principal or interest; and other real estate owned. A summary of nonperforming assets is presented in Table Eight.



Total non-performing loans were $1,867,000 at March 31, 2005 as compared to $1,642,000 at December 31, 2004. The increase in non-performing
loans was primarily due to the addition of two non-accrual commercial loans during the first quarter of 2005. Loans past due 90 days or more and still accruing interest were $8,000 at March 31, 2005, as compared to $17,000 at December 31, 2004.



Loans are placed in non-accrual when the principal or interest is past due 90
days or more, unless the loan is both well secured and in the process of collection. Non-accrual loans were at $1,740,000 or 1.2% of total loans outstanding as of March 31, 2005, as compared to $1,441,000 or .9% of total loans at December 31, 2004.
Management continues to monitor the nonperforming assets to ensure against deterioration in collateral values.



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First West Virginia Bancorp, Inc.

Managements Discussion and Analysis of the Financial Condition and Results of Holding Company Operations



Loans - Continued



Table Eight - Risk Elements



Loans which are in the process of collection, but are contractually past due 90 days or more as to interest or principal, renegotiated, non-accrual loans and other real
estate are as follows:



|                                                                 |      |                       |       |      |                   |   |       |   |  |   |       |  
|---------------------------------------------------------------- | ---- | --------------------- | ----- | ---- | ----------------- | - | ----- | - |  | - | ----- | -
|(dollars in thousands)                                           |      | (Unaudited) March 31, |       |      | December 31, 2004 |  
|                                                                 |     
|                                                                 | 2005 |                       |       | 2004 |                   |  
|Past Due 90 Days or More:                                        |      |                       |       |      |                   |   |       |   |  |   |       |  
|Real Estate - residential                                        |      | $                     |      |      |                   | $ |      |   |  | $ |      |  
|Commercial                                                       |      |                       |      |      |                   |   | 15    |   |  |   | 6     |  
|Installment                                                      |      |                       | 8     |      |                   |   | 9     |   |  |   | 11    |  
|                                                                 |      |                       |       |      |                   |   |       |   |  |   |       |  
|                                                                 |      | $                     | 8     |      |                   | $ | 24    |   |  | $ | 17    |  
|                                                                 |      |                       |       |      |                   |   |       |   |  |   |       |  
|Non-accrual:                                                     |      |                       |       |      |                   |   |       |   |  |   |       |  
|Real Estate - residential                                        |      | $                     | 137   |      |                   | $ | 78    |   |  | $ | 74    |  
|Commercial                                                       |      |                       | 1,592 |      |                   |   | 2,025 |   |  |   | 1,357 |  
|Installment                                                      |      |                       | 11    |      |                   |   | 1     |   |  |   | 10    |  
|                                                                 |      |                       |       |      |                   |   |       |   |  |   |       |  
|                                                                 |      | $                     | 1,740 |      |                   | $ | 2,104 |   |  | $ | 1,441 |  
|                                                                 |      |                       |       |      |                   |   |       |   |  |   |       |  
|Other Real Estate                                                |      | $                     | 119   |      |                   | $ | 12    |   |  | $ | 184   |  
|                                                                 |      |                       |       |      |                   |   |       |   |  |   |       |  
|Total non-performing assets                                      |      | $                     | 1,867 |      |                   | $ | 2,140 |   |  | $ | 1,642 |  
|                                                                 |      |                       |       |      |                   |   |       |   |  |   |       |  
|Total non-performing assets to total loans and other real estate |      |                       | 1.24  | %    |                   |   | 1.42  | % |  |   | 1.06  | %



Generally, all banks recognize
interest income on the accrual basis, except for certain loans which are placed on a non-accrual status. Loans are placed on a non-accrual status, when in the opinion of management doubt exists as to its collectibility. In accordance with the Office
of the Comptroller of the Currency Policy, banks may not accrue interest on any loan which either the principal or interest is past due 90 days or more unless the loan is both well secured and in the process of collection. The amount of interest
income that would have been recognized had the loans performed in accordance with their original terms was approximately $55,400, $47,000 and $105,700 for the three months ended March 31, 2005 and 2004 and for the year ended December 31, 2004,
respectively.



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First West Virginia Bancorp, Inc.

Managements Discussion and Analysis of the Financial Condition and Results of Holding Company Operations



Table Nine



Analysis of Allowance for Possible Loan Losses

(dollars in thousands)



The following table presents a summary of loans charged off and recoveries of
loans previously charged off by type of loan.



|                                                                           |  |                       |         |   |                   |   |         |   |  |   |         |  
|-------------------------------------------------------------------------- |  | --------------------- | ------- | - | ----------------- | - | ------- | - |  | - | ------- | -
|                                                                           |  | (Unaudited) March 31, |         |   | December 31, 2004 |  
|                                                                           | 
|                                                                           |  | 2005                  |         |   | 2004              |   |        
|Allowance for loan losses:                                                 |  |                       |         |   |                   |   |         |   |  |   |         |  
|                                                                           |  |                       |        
|Balance at beginning of period:                                            |  | $                     | 2,356   |   |                   | $ | 2,305   |   |  | $ | 2,305   |  
|                                                                           |  |                       |        
|Loans Charged Off:                                                         |  |                       |         |   |                   |   |         |   |  |   |         |  
|Real Estate - residential                                                  |  |                       |        |   |                   |   |        |   |  |   | 3       |  
|Commercial                                                                 |  |                       | 3       |   |                   |   | 140     |   |  |   | 229     |  
|Installment                                                                |  |                       | 21      |   |                   |   | 29      |   |  |   | 70      |  
|                                                                           |  |                       |         |   |                   |   |         |   |  |   |         |  
|                                                                           |  |                       | 24      |   |                   |   | 169     |   |  |   | 302     |  
|                                                                           |  |                       |        
|Recoveries:                                                                |  |                       |         |   |                   |   |         |   |  |   |         |  
|Real Estate - residential                                                  |  |                       |        |   |                   |   | 17      |   |  |   | 17      |  
|Commercial                                                                 |  |                       |        |   |                   |   |        |   |  |   | 20      |  
|Installment                                                                |  |                       | 3       |   |                   |   | 5       |   |  |   | 16      |  
|                                                                           |  |                       |         |   |                   |   |         |   |  |   |         |  
|                                                                           |  |                       | 3       |   |                   |   | 22      |   |  |   | 53      |  
|                                                                           |  |                       |        
|Net Charge-offs                                                            |  |                       | 21      |   |                   |   | 147     |   |  |   | 249     |  
|                                                                           |  |                       |        
|Additions Charged to Operations                                            |  |                       | 90      |   |                   |   | 30      |   |  |   | 300     |  
|                                                                           |  |                       |         |   |                   |   |         |   |  |   |         |  
|Balance at end of period:                                                  |  | $                     | 2,425   |   |                   | $ | 2,188   |   |  | $ | 2,356   |  
|                                                                           |  |                       |         |   |                   |   |         |   |  |   |         |  
|Average Loans Outstanding                                                  |  | $                     | 152,050 |   |                   | $ | 149,006 |   |  | $ | 151,562 |  
|                                                                           |  |                       |         |   |                   |   |         |   |  |   |         |  
|Ratio of net charge-offs to Average loans outstanding for the period       |  |                       | 0.01    | % |                   |   | 0.10    | % |  |   | 0.16    | %
|                                                                           |  |                       |        
|Ratio of the Allowance for Loan Losses to Loans Outstanding for the period |  |                       | 1.62    | % |                   |   | 1.45    | % |  |   | 1.53    | %



The additions to the allowance for
loan losses are based on managements evaluation of characteristics of the loan portfolio, current and anticipated economic conditions, past loan experiences, net loans charged-off, specific problem loans and delinquencies, and other factors.



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First West Virginia Bancorp, Inc.

Managements Discussion and Analysis of the Financial Condition and Results of Holding Company Operations



Allowance for Loan Losses



In all lending activities there is an inherent risk that borrowers will be unable to repay their obligations. The Company maintains an allowance for loan losses to absorb
probable loan losses. The Company has historically maintained the allowance for loan losses at a level greater than actual charge-offs. Although a subjective evaluation is determined by management, the Company believes it has appropriately assessed
the risk of loans in the loan portfolio and has provided for an allowance which is adequate based on that assessment. Because the allowance is an estimate, any change in the economic conditions of the Companys market area could result in new
estimates which could affect the Companys earnings. Management monitors the quality of the loan portfolio through reviews of past due loans and all significant loans which are considered to be potential problem loans on a monthly basis. The
internal loan review function provides for an independent review of commercial, real estate, and installment loans in order to measure the asset quality of the portfolio. Managements review of the loan portfolio has not indicated any material
loans, not disclosed in the accompanying tables and discussions which are known to have possible credit problems that cause management to have serious doubts as to the ability of each borrower to comply with their present loan repayment terms.



The allowance for loan losses increased $69,338 or 2.9%, since December 31,
2004. The allowance for loan losses represented 1.6% and 1.5% of outstanding loans as of March 31, 2005 and December 31, 2004, respectively. Net loan charge-offs were $20,662 for the three month period ended March 31, 2005, compared to $146,654 for
the same period in 2004. The net loan charge-offs during the first three months of 2005 were primarily consumer loans. The provision for possible loan losses was $90,000 and $30,000 for the three month periods ended March 31, 2005 and 2004,
respectively. The credit quality of the loan portfolio combined with the recent level of net charge-offs and nonperforming assets continue to be considered in the calculation of the provision for loan losses. The Company has allocated the allowance
for possible loan losses to specific portfolio segments based upon historical net charge-off experience, changes in the level of nonperforming assets, local economic conditions and managements experience as presented in Table Ten.



Table Ten



Loan Portfolio - Allocation of allowance for possible loan losses

(dollars in thousands)



The following
table presents an allocation of the allowance for possible loan losses at each of the four year periods ended December 31, 2004, and the three month period ended March 31, 2005. The allocation presented below is based on the historical average of
net charge offs per category combined with the change in loan growth and managements review of the loan portfolio.



|                          |  |                |       |                                                  |       |   |              |      |                                                  |  |       |        |  |                                                  |       |  |        |   |                                                  |   |       |        |       |                                                  |  |   |       |  |       |  
|------------------------- |  | -------------- | ----- | ------------------------------------------------ | ----- | - | ------------ | ---- | ------------------------------------------------ |  | ----- | ------ |  | ------------------------------------------------ | ----- |  | ------ | - | ------------------------------------------------ | - | ----- | ------ | ----- | ------------------------------------------------ |  | - | ----- |  | ----- | -
|                          |  |                |       |                                                  |       |   | December 31, |     
|                          |  | March 31. 2005 |       |                                                  | 2004  |   |              | 2003 |                                                  |  | 2002  |        |  | 2001                                             |      
|                          |  | Amount         |       | Percent of loans in each category to total loans |       |   | Amount       |      | Percent of loans in each category to total loans |  |       | Amount |  | Percent of loans in each category to total loans |       |  | Amount |   | Percent of loans in each category to total loans |   |       | Amount |       | Percent of loans in each category to total loans | 
|Real estate - residential |  | $              | 325   |                                                  | 33.0  | % |              | $    | 325                                              |  | 33.5  | %      |  | $                                                | 311   |  | 36.0   | % |                                                  | $ | 276   |        | 37.5  | %                                                |  | $ | 263   |  | 37.3  | %
|Commercial                |  |                | 1,586 |                                                  | 45.5  |   |              |      | 1,520                                            |  | 45.2  |        |  |                                                  | 1,429 |  | 43.0   |   |                                                  |   | 1,161 |        | 41.7  |                                                  |  |   | 821   |  | 40.0  |  
|Installment               |  |                | 493   |                                                  | 11.5  |   |              |      | 490                                              |  | 11.9  |        |  |                                                  | 544   |  | 12.9   |   |                                                  |   | 569   |        | 12.9  |                                                  |  |   | 541   |  | 16.1  |  
|Others                    |  |                | 21    |                                                  | 10.0  |   |              |      | 21                                               |  | 9.4   |        |  |                                                  | 21    |  | 8.1    |   |                                                  |   | 21    |        | 7.9   |                                                  |  |   | 21    |  | 6.6   |  
|                          |  |                |       |                                                  |       |   |              |      |                                                  |  |       |        |  |                                                  |       |  |        |   |                                                  |   |       |        |       |                                                  |  |   |       |  |       |  
|Total                     |  | $              | 2,425 |                                                  | 100.0 | % |              | $    | 2,356                                            |  | 100.0 | %      |  | $                                                | 2,305 |  | 100.0  | % |                                                  | $ | 2,027 |        | 100.0 | %                                                |  | $ | 1,646 |  | 100.0 | %
|                          |  |                |       |                                                  |       |   |              |      |                                                  |  |       |        |  |                                                  |       |  |        |   |                                                  |   |       |        |       |                                                  |  |   |       |  |       |  



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##### Table of Contents

First West Virginia Bancorp, Inc.

Managements Discussion and Analysis of the Financial Condition and Results of Holding Company Operations



Deposits



A stable core deposit base is the major source of funds for the Companys subsidiary bank. The deposit mix depends upon many factors including competition from other
financial institutions, depositor interest in certain types of deposits, changes in the interest rate and the Companys need for certain types of deposit growth. Total deposits were $231,719,484 at March 31, 2005, down 1.9% since December 31,
2004. Since year end the decline in deposits was primarily in savings and time deposits and non-interest bearing demand deposits, offset in part by an increase in interest bearing demand deposits. At March 31, 2005, noninterest bearing deposits
comprised 11% of total deposits and interest bearing deposits which include NOW, money market, savings and time deposits comprised 89% of total deposits. There was no change in the deposit mix from December 31, 2004 to March 31, 2005.



Table Eleven



The following table presents other time deposits of $100,000 or more issued by domestic offices by time remaining until maturity of 3 months
or less; over 3 through 6 months; over 6 through 12 months; and over 12 months. (In thousands)



|                                     |  |                                                   |        |                   |   |       
|------------------------------------ |  | ------------------------------------------------- | ------ | ----------------- | - | ------
|                                     |  | Maturities of Time Deposits in Excess of $100,000
|                                     |  | (Unaudited) March 31, 2005                        |        | December 31, 2004
|                                     |  |                                                  
|Three Months or Less                 |  | $                                                 | 3,848  |                   | $ | 1,514 
|Over Three and Less than Six Months  |  |                                                   | 2,469  |                   |   | 3,638 
|Over Six and Less than Twelve Months |  |                                                   | 3,464  |                   |   | 3,217 
|Over Twelve Months                   |  |                                                   | 9,734  |                   |   | 11,757
|                                     |  |                                                   |        |                   |   |       
|Total                                |  | $                                                 | 19,515 |                   | $ | 20,126
|                                     |  |                                                   |        |                   |   |       



Federal Funds Purchased and
Repurchase Agreements



Federal funds purchased and repurchase agreements
represent borrowings of a short duration, usually less than 30 days. For repurchase agreements, the securities underlying the agreements remained under the Banks control. There were no Federal funds purchased at March 31, 2005 and December 31,
2004. Repurchase agreements decreased 10.0%, from $15,759,200 at December 31, 2004 to $14,176,102 at March 31, 2005. The decline in repurchase agreements was primarily due to a reduction of the balance of one commercial customer.



Federal Home Loan Bank Borrowings



The subsidiary bank is a member of the Federal Home Loan Bank of Pittsburgh
(FHLB). The FHLB borrowings are secured by a blanket lien by the FHLB on certain residential real estate loans or securities with a market value at least equal to the outstanding balances. The remaining maximum borrowing capacity with
the FHLB at March 31, 2005 was approximately $104.8 million subject to the purchase of additional FHLB stock. The subsidiary bank had FHLB borrowings of $2,415,235 and $2,425,111 at March 31, 2005 and December 31, 2004, respectively, with an
interest rate of 4.76%. The borrowings will mature in 2018. The FHLB funding was utilized to mitigate the impact of rising interest rates for a long term fixed rate loan commitment. The subsidiary bank also has a one year line of credit agreement
with the FHLB. The maximum credit available under this agreement is $7 million and expires December, 2005.



Capital Resources



Stockholders
equity increased 1.1% during the three month period ended March 31, 2005 entirely from current earnings after quarterly dividends, and a 3.3% decrease in accumulated other comprehensive income. The decrease in accumulated other comprehensive income
is primarily attributable to the effect of the change in the net unrealized loss on securities available for sale. Stockholders equity amounted to 8.6% of total assets at March 31, 2005 and December 31, 2004.



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##### Table of Contents

First West Virginia Bancorp, Inc.

Managements Discussion and Analysis of the Financial Condition and Results of Holding Company Operations



Capital Resources - Continued



The Companys primary source of funds for payment of dividends to shareholders is from the dividends from its subsidiary bank. In December 2004, the subsidiary bank
entered into a Formal agreement with the Office of the Comptroller of the Currency. Under the terms of the Formal Agreement, the subsidiary bank cannot declare a dividend in 2005 without approval of the Comptroller of the Currency. The Board of
Directors also adopted a resolution with the Federal Reserve Bank of Cleveland which prohibits the Company from paying dividends or participating in the acquisition of treasury stock without prior Federal Reserve approval and a 30 day prior notice
requirement. The Company has taken, and intends to continue to take, all appropriate steps to comply with the Federal Reserve requirements.



The Company and its subsidiary bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital
requirements can initiate certain mandatory, and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Companys financial statements. Under capital adequacy guidelines and the
regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of the Companys and banks assets, liabilities, and certain off-balance-sheet items as
calculated under regulatory accounting practices. The Companys and banks capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk, weighting, and other factors. Quantitative
measures established by regulation to ensure capital adequacy require the Company and bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier I capital (as defined in the regulations) to risk-weighted assets (as
defined), and of Tier I capital (as defined) to adjusted total assets (as defined).



As of March 31, 2005, the most recent notifications from the Office of the Comptroller of the Currency categorized the bank as adequately capitalized under the regulatory framework for prompt corrective action. There are no conditions or
events since that notification that management believes has changed the capital category. The capital ratios and the regulatory framework for adequately capitalized institutions are depicted as set forth in the following table:



|                                                          |  |        |        |       |                             |   |        |   |        |  |     |  
|--------------------------------------------------------- |  | ------ | ------ | ----- | --------------------------- | - | ------ | - | ------ |  | --- | -
|                                                          |  | Actual |        |       | For CapitalAdequacyPurposes |  
|(Amounts Expressed in Thousands)                          |  | Amount |        | Ratio |                             |   | Amount |   | Ratio  | 
|As of December 31, 2004                                   |  |        |        |       |                             |   |        |   |        |  |     |  
|Holding Company Total Capital (to Risk Weighted Assets)   |  | $      | 22,745 |       | 12.97                       | % |        | $ | 14,033 |  | 8.0 | %
|Holding Company Tier I Capital (to Risk Weighted Assets)  |  |        | 20,561 |       | 11.72                       | % |        |   | 7,016  |  | 4.0 | %
|Holding Company Tier I Capital (to Adjusted Total Assets) |  |        | 20,561 |       | 7.24                        | % |        |   | 11,366 |  | 4.0 | %
|                                                          |  |        |        |      
|Subsidiary Bank Total Capital (to Risk Weighted Assets)   |  | $      | 22,417 |       | 12.84                       | % |        | $ | 13,965 |  | 8.0 | %
|Subsidiary Bank Tier I Capital (to Risk Weighted Assets)  |  |        | 20,233 |       | 11.59                       | % |        |   | 6,983  |  | 4.0 | %
|Subsidiary Bank Tier I Capital (to Adjusted Total Assets) |  |        | 20,233 |       | 7.14                        | % |        |   | 11,332 |  | 4.0 | %
|                                                          |  |        |        |      
|As of March 31, 2005                                      |  |        |        |       |                             |   |        |   |        |  |     |  
|Holding Company Total Capital (to Risk Weighted Assets)   |  | $      | 22,339 |       | 13.55                       | % |        | $ | 13,192 |  | 8.0 | %
|Holding Company Tier I Capital (to Risk Weighted Assets)  |  |        | 20,281 |       | 12.30                       | % |        |   | 6,596  |  | 4.0 | %
|Holding Company Tier I Capital (to Adjusted Total Assets) |  |        | 20,281 |       | 7.33                        | % |        |   | 11,071 |  | 4.0 | %
|                                                          |  |        |        |      
|Subsidiary Bank Total Capital (to Risk Weighted Assets)   |  | $      | 22,177 |       | 13.50                       | % |        | $ | 13,140 |  | 8.0 | %
|Subsidiary Bank Tier I Capital (to Risk Weighted Assets)  |  |        | 20,119 |       | 12.25                       | % |        |   | 6,570  |  | 4.0 | %
|Subsidiary Bank Tier I Capital (to Adjusted Total Assets) |  |        | 20,119 |       | 7.29                        | % |        |   | 11,045 |  | 4.0 | %



The Formal Agreement
requires Tier 1 capital at least equal to thirteen percent (13%) of risk-weighted assets and Tier 1 capital at least equal to seven and one half percent (7.5%) of adjusted total assets by March 31, 2005. The subsidiary bank was granted an extension
until May 30, 2005 to meet the capital requirements.



Liquidity



Liquidity management ensures that funds are available to meet loan
commitments, deposit withdrawals, and operating expenses. Funds are provided by loan repayments, investment securities maturities, or deposits, and can be raised by liquidating assets or through additional borrowings. The Holding Company had
investment securities with an estimated fair value of $100,052,796 classified as available for sale at March 31, 2005. These securities are available for sale at any time based upon managements assessment in order to provide necessary
liquidity should the need arise. In addition, the Companys subsidiary bank, Progressive Bank, N.A., is a member of the Federal Home Loan Bank of Pittsburgh (FHLB). Membership in the FHLB provides an additional source of funding, in
the form of collateralized advances. At March 31, 2005, the subsidiary bank had a short term line of credit available with the FHLB in the aggregate amount of approximately $7 million. There were no short term borrowings outstanding pursuant to this
agreement as of March 31, 2005.



At March 31, 2005 and December 31, 2004, the
Company had outstanding loan commitments and unused lines of credit totaling $14,208,000 and $20,581,000, respectively. As of March 31, 2005, management placed a high probability for required funding within one year of approximately $8.5 million.
Approximately $4.6 million is principally unused home equity and credit card lines on which management places a low probability for required funding.



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##### Table of Contents

FIRST WEST VIRGINIA BANCORP, INC.

PART I



Item 3 Quantitative and Qualitative Disclosures About Market Risk



The Companys subsidiary bank uses an asset/liability model to measure the impact of changes in interest rates on net interest income on a periodic basis. Assumptions are made to simulate the impact of future
changes in interest rates and/or changes in balance sheet composition. The effect of changes in future interest rates on the mix of assets and liabilities may cause actual results to differ from simulated results. Guidelines established by the
Companys subsidiary bank provides that the estimated net interest income may not change by more than 10% in a one year period given a +/- 200 basis point parallel shift in interest rates. Excluding the potential effect of interest rate changes
on assets and liabilities of the Holding Company which are not deemed material, the anticipated impact on net interest income of the subsidiary bank at March 31, 2005 was as follows: given a 200 basis point increase scenario net interest income
would be reduced by approximately 5.9%, and given a 200 basis point decrease scenario net interest income would be reduced by approximately 8.5%. The projections provided by the model are not intended as an actual forecast of the banks
performance in a particular rate environment, and should not be relied upon. Actual changes in the interest rate environment normally do not take place instantaneously, but over a period of time, and do not occur in a parallel fashion. Additionally,
the balance sheet composition, spread relationships for new dollars invested, non interest income and expenses, investment practices, and deposit practices all change as a result of changes in interest rates and would need to be considered by the
Asset Liability committee.



Item 4 Controls and Procedures



Evaluation
of Disclosure Controls and Procedures



The Companys Interim
President and Chief Executive Officer, Sylvan J. Dlesk, and Executive Vice President, Chief Administrative Officer and Chief Financial Officer, Francie P. Reppy, after evaluating the effectiveness of the Companys disclosure controls and
procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) as of a date within 90 days prior to the filing of this report (the Evaluation Date), have concluded that, as of the Evaluation Date, the Companys disclosure controls
and procedures were adequate and effective to ensure that material information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods
specified in Securities and Exchange Commission rules and forms.



Changes in
Internal Controls



During the quarter, the Companys subsidiary bank
adopted various control procedures relating to loan underwriting standards as well as the loan origination and approval processes. Control procedures were initiated to ensure compliance with loan approval terms and conditions and credit risk
analysis standards. Also, controls were established to address the loan credit performance of borrowers through rate sensitivity analysis and stress testing.



There were no other significant changes in the Companys internal controls or in other factors that could significantly affect the Companys disclosure controls
and procedures subsequent to the date of their evaluation, nor were there any significant deficiencies or other material weaknesses in the Companys internal controls. As a result, no corrective actions were required or undertaken.



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##### Table of Contents

FIRST WEST VIRGINIA BANCORP, INC.



PART
II

OTHER INFORMATION



Item 1 Legal Proceedings



The
nature of the business of the Holding Companys subsidiary generates a certain amount of litigation involving matters arising in the ordinary course of business. The Company is unaware of any litigation other than ordinary routine litigation
incidental to the business of the Company, to which it or its subsidiary is a party or of which any of their property is subject.



Item 2 Unregistered Sales of Equity Securities and Use of Proceeds



Inapplicable



Item 3 Defaults Upon Senior Securities



Inapplicable



Item 4 Submission of Matters to Vote of Security Holders



a. Inapplicable



b.
Inapplicable



c. Inapplicable



d. Inapplicable



Item 5 Other Information



Inapplicable



Item 6 Exhibits and Reports on Form 8-K



(a) Reports on Form 8-K



On
February 22, 2005 a report on Form 8-K was filed which contained a release dated February 22, 2005 that reported the termination of a written employment agreement with Charles K. Graham, President and CEO of the Company and the resignation of
Charles K. Graham, President and CEO of the Company and President and CEO of its subsidiary, Progressive Bank, N.A. from all positions associated with the Company and its subsidiary bank effective March 31, 2005.



On March 14, 2005 a report on Form 8-K was filed which contained a press
release dated March 10, 2005 that reported the earnings of First West Virginia Bancorp, Inc. for the fourth quarter and year ended December 31, 2004.



On April 4, 2005 a report on Form 8-K/A was filed and reported that on March 29, 2005 the Board of Directors of the Companys subsidiary bank,
Progressive Bank, N.A., were advised by the OCC that the waiver request for Sylvan J. Dlesk as interim CEO/President of the subsidiary bank had been approved effective April 1, 2005, for a period not to exceed one hundred twenty (120) days or such
earlier date on which a permanent CEO/President has been identified and obtained appropriate regulatory approvals.



(b) Exhibits



The exhibits listed in the Exhibit Index on page 29 of this FORM 10-Q are incorporated by reference and/or filed herewith.



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##### Table of Contents

SIGNATURES



Pursuant to the requirements of Section 13
or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



|                                  |  |                                                                                   
|--------------------------------- |  | ----------------------------------------------------------------------------------
|First West Virginia Bancorp, Inc.
|(Registrant)                     
|                                  | 
|By:                               |  | /s/ Sylvan J. Dlesk                                                               
|                                  |  | Sylvan J. Dlesk                                                                   
|                                  |  | Chairman                                                                          
|                                  | 
|By:                               |  | /s/ Francie P. Reppy                                                              
|                                  |  | Francie P. Reppy                                                                  
|                                  |  | Executive Vice President, Chief Administrative Officer and Chief Financial Officer



Dated: May 12, 2005



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##### Table of Contents

EXHIBIT INDEX



The following exhibits
are filed herewith and/or are incorporated herein by reference.



|              |  |                                                                                                                                                                                                              
|------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ExhibitNumber |  | Description                                                                                                                                                                                                  
|3.1           |  | Certificate and Articles of Incorporation of First West Virginia Bancorp, Inc. Incorporated herein by reference.                                                                                             
|              | 
|3.2           |  | Bylaws of First West Virginia Bancorp, Inc. Incorporated herein by reference.                                                                                                                                
|              | 
|10.3          |  | Lease dated July 20, 1993 between Progressive Bank, N.A., formerly known as First West Virginia Bank, N.A., and Angela I. Stauver. Incorporated herein by
reference.                                       
|              | 
|10.4          |  | Banking Services License Agreement dated October 26, 1994 between Progressive Bank, N.A., formerly known as First West Virginia Bank, N.A., and The Kroger Co. Incorporated herein
by reference.           
|              | 
|10.5          |  | Lease dated November 14, 1995 between Progressive Bank, N.A. - Buckhannon and First West Virginia Bancorp, Inc. and O. V. Smith & Sons of Big Chimney, Inc. Incorporated herein by
reference.                
|              | 
|10.6          |  | Lease dated May 20, 1998 between Progressive Bank, N.A. and Robert Scott Lumber Company. Incorporated herein by reference.                                                                                   
|              | 
|10.7          |  | Lease dated May 12, 2001 between Progressive Bank, N.A. and Sylvan J. Dlesk and Rosalie J. Dlesk doing business as Dlesk Realty & Investment Company. Incorporated herein by
reference.                      
|              | 
|10.8          |  | Lease dated January 1, 2005 between Progressive Bank, N.A. and Elm Grove Properties LLC. Filed herewith and incorporated herein by reference.                                                                
|              | 
|11.1          |  | Statement regarding computation of per share earnings. Filed herewith and incorporated herein by reference.                                                                                                  
|              | 
|13.3          |  | Summarized Quarterly Financial Information. Filed herewith and incorporated herein by reference.                                                                                                             
|              | 
|15            |  | Letter re unaudited interim financial information. Incorporated herein by reference. See Part 1, Notes to Consolidated Financial Statements                                                                  
|              | 
|31            |  | Rule 13a-14(a) / 15d/14(a) Certifications - Certification of Chief Executive Officer pursuant to section 302 of the Securities and Exchange Act of 1934. Filed herewith and incorporated herein
by reference.
|              | 
|31.1          |  | Rule 13a-14(a) / 15d/14(a) Certifications - Certification of Chief Financial Officer pursuant to section 302 of the Securities and Exchange Act of 1934. Filed herewith and incorporated herein
by reference.
|              | 
|32            |  | Certification pursuant to 18 U.S.C. §1350,as adopted pursuant to section 906 of the SARBANES-OXLEY ACT of 2002. Filed herewith and incorporated herein by reference.                                         
|              | 
|99.1          |  | Independent Accountants Report. Filed herewith and incorporated herein by reference.                                                                                                                        



29