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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549





FORM 10-Q



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

For the Quarterly Period Ended March 31, 2011



| ̈ | 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





First West Virginia Bancorp, Inc.

(Exact name of registrant as specified in its charter)



|                                                              |  |                                    
|------------------------------------------------------------- |  | -----------------------------------
|West Virginia                                                 |  | 55-6051901                         
|(State or other jurisdiction ofincorporation or organization) |  | (I.R.S. EmployerIdentification 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)

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 has submitted electronically and posted on its corporate Web site, if any, every
Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such
files).     ̈  Yes     ̈  No

Indicate by check mark whether the registrant is a large accelerated filer , an accelerated filer or a non-accelerated filer as defined
by Rule 12b-2 of the Exchange Act

Large Accelerated
Filer   ̈          Accelerated
Filer   ̈          Non-accelerated
filer   ̈          Smaller Reporting Company  x

Indicate by check mark whether the Registrant is a shell company as defined by Rule 12b-2 of the Exchange 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 March 31, 2011: Common Stock, $5.00 Par Value, shares
outstanding: 1,652,814 shares









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FORM 10-Q INDEX







|                               |  |                                                                                       |  |  |       | 
|------------------------------ |  | ------------------------------------------------------------------------------------- |  |  | ----- | 
|PART I - Financial Information |  |                                                                                       |  | 
|                               |  |                                                                                      
|Item 1                         |  | Financial Statements and Accompanying Notes                                           |  |  | 3-23  | 
|                               |  |                                                                                      
|Item 2                         |  | Managements Discussion and Analysis of Financial Condition and Results of Operations |  |  | 24-32 | 
|                               |  |                                                                                      
|Item 3                         |  | Quantitative and Qualitative Disclosures About Market Risk                            |  |  | 33    | 
|                               |  |                                                                                      
|Item 4                         |  | Controls and Procedures                                                               |  |  | 33    | 
|                               | 
|PART II - Other Information    |  |                                                                                       |  | 
|                               |  |                                                                                      
|Item 1                         |  | Legal Proceedings                                                                     |  |  | 34    | 
|                               |  |                                                                                      
|Item 1A                        |  | Risk Factors                                                                          |  |  | 34    | 
|                               |  |                                                                                      
|Item 2                         |  | Unregistered Sales of Equity Securities and Use of Proceeds                           |  |  | 34    | 
|                               |  |                                                                                      
|Item 3                         |  | Defaults upon Senior Securities                                                       |  |  | 34    | 
|                               |  |                                                                                      
|Item 4                         |  | (Removed and Reserved)                                                                |  |  | 34    | 
|                               |  |                                                                                      
|Item 5                         |  | Other Information                                                                     |  |  | 34    | 
|                               |  |                                                                                      
|Item 6                         |  | Exhibits and Reports on Form 8-K                                                      |  |  |       | 
|                               |  |                                                                                      
|                               |  | Reports on Form 8-K                                                                   |  |  | 34    | 
|                               |  |                                                                                      
|                               |  | Signatures                                                                            |  |  | 35    | 
|                               |  |                                                                                      
|                               |  | Exhibit Index                                                                         |  |  | 36    | 



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FIRST WEST VIRGINIA BANCORP, INC.

PART I

FINANCIAL INFORMATION



PAGE 3



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First West Virginia Bancorp, Inc.

CONSOLIDATED BALANCE SHEETS



|                                                                           |  |               |             |   |                  |   |             |  
|-------------------------------------------------------------------------- |  | ------------- | ----------- | - | ---------------- | - | ----------- | -
|                                                                           |  | March 31,2011 |             |   | December 31,2010 |  
|ASSETS                                                                     |  |               |             |   |                  |   |             |  
|                                                                           |  | (Unaudited)   |             |   |                  |  
|Cash and due from banks                                                    |  | $             | 4,765,224   |   |                  | $ | 4,622,677   |  
|Due from banks - interest bearing                                          |  |               | 9,432,125   |   |                  |   | 5,309,936   |  
|Federal funds sold                                                         |  |               |            |   |                  |   |            |  
|                                                                           |  |               |             |   |                  |   |             |  
|Total cash and cash equivalents                                            |  |               | 14,197,349  |   |                  |   | 9,932,613   |  
|Investment securities:                                                     |  |               |             |   |                  |   |             |  
|Available-for-sale (at fair value)                                         |  |               | 138,823,466 |   |                  |   | 133,168,794 |  
|Loans                                                                      |  |               | 117,324,249 |   |                  |   | 121,367,066 |  
|Less allowance for loan losses                                             |  |               | (2,000,650  | ) |                  |   | (2,059,025  | )
|                                                                           |  |               |             |   |                  |   |             |  
|Net loans                                                                  |  |               | 115,323,599 |   |                  |   | 119,308,041 |  
|Premises and equipment, net                                                |  |               | 5,798,088   |   |                  |   | 5,714,121   |  
|Accrued income receivable                                                  |  |               | 1,269,838   |   |                  |   | 1,094,835   |  
|Goodwill                                                                   |  |               | 1,644,119   |   |                  |   | 1,644,119   |  
|Bank owned life insurance                                                  |  |               | 3,440,550   |   |                  |   | 3,415,247   |  
|Other assets                                                               |  |               | 3,405,927   |   |                  |   | 3,680,882   |  
|                                                                           |  |               |             |   |                  |   |             |  
|Total assets                                                               |  | $             | 283,902,936 |   |                  | $ | 277,958,652 |  
|                                                                           |  |               |             |   |                  |   |             |  
|LIABILITIES                                                                |  |               |             |   |                  |   |             |  
|Noninterest bearing deposits:                                              |  |               |             |   |                  |   |             |  
|Demand                                                                     |  | $             | 28,722,219  |   |                  | $ | 28,319,278  |  
|Interest bearing deposits:                                                 |  |               |             |   |                  |   |             |  
|Demand                                                                     |  |               | 44,745,303  |   |                  |   | 42,112,794  |  
|Savings                                                                    |  |               | 83,089,488  |   |                  |   | 78,678,200  |  
|Time                                                                       |  |               | 77,558,719  |   |                  |   | 79,364,466  |  
|                                                                           |  |               |             |   |                  |   |             |  
|Total deposits                                                             |  |               | 234,115,729 |   |                  |   | 228,474,738 |  
|Federal funds purchased and securities sold under agreements to repurchase |  |               | 13,897,601  |   |                  |   | 13,477,420  |  
|Federal Home Loan Bank borrowings                                          |  |               | 3,755,309   |   |                  |   | 3,775,583   |  
|Accrued interest payable                                                   |  |               | 246,784     |   |                  |   | 276,662     |  
|Other liabilities                                                          |  |               | 343,679     |   |                  |   | 853,063     |  
|                                                                           |  |               |             |   |                  |   |             |  
|Total liabilities                                                          |  |               | 252,359,102 |   |                  |   | 246,857,466 |  
|                                                                           |  |               |             |   |                  |   |             |  
|STOCKHOLDERS EQUITY                                                       |  |               |             |   |                  |   |             |  
|Common stock - 2,000,000 shares authorized at $5 par value:                |  |               |             |   |                  |   |             |  
|1,662,814 shares issued at March 31, 2011 and December 31, 2010            |  |               | 8,314,070   |   |                  |   | 8,314,070   |  
|Treasury stock - 10,000 shares at cost:                                    |  |               | (228,100    | ) |                  |   | (228,100    | )
|Surplus                                                                    |  |               | 6,288,403   |   |                  |   | 6,288,403   |  
|Retained earnings                                                          |  |               | 15,958,185  |   |                  |   | 15,722,313  |  
|Accumulated other comprehensive income                                     |  |               | 1,211,276   |   |                  |   | 1,004,500   |  
|                                                                           |  |               |             |   |                  |   |             |  
|Total stockholders equity                                                 |  |               | 31,543,834  |   |                  |   | 31,101,186  |  
|                                                                           |  |               |             |   |                  |   |             |  
|Total liabilities and stockholders equity                                 |  | $             | 283,902,936 |   |                  | $ | 277,958,652 |  
|                                                                           |  |               |             |   |                  |   |             |  

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, |          
|                                                    |  | 2011                         |           |  | 2010 |  
|                                                    |  | (Unaudited)                  |          
|INTEREST AND DIVIDEND INCOME                        |  |                              |           |  |      |   |           | 
|Loans, including fees:                              |  |                              |           |  |      |   |           | 
|Taxable                                             |  | $                            | 1,541,088 |  |      | $ | 1,699,805 | 
|Tax-exempt                                          |  |                              | 143,397   |  |      |   | 122,477   | 
|Debt securities:                                    |  |                              |           |  |      |   |           | 
|Taxable                                             |  |                              | 826,095   |  |      |   | 869,271   | 
|Tax-exempt                                          |  |                              | 341,812   |  |      |   | 291,145   | 
|Other interest income                               |  |                              | 9,364     |  |      |   | 14,583    | 
|Federal funds sold                                  |  |                              |          |  |      |   | 8         | 
|                                                    |  |                              |           |  |      |   |           | 
|Total interest and dividend income                  |  |                              | 2,861,756 |  |      |   | 2,997,289 | 
|                                                    |  |                              |           |  |      |   |           | 
|INTEREST EXPENSE                                    |  |                              |           |  |      |   |           | 
|Deposits                                            |  |                              | 532,047   |  |      |   | 754,203   | 
|Federal funds purchased and repurchase agreements   |  |                              | 25,359    |  |      |   | 26,483    | 
|FHLB and other long-term borrowings                 |  |                              | 45,015    |  |      |   | 90,499    | 
|                                                    |  |                              |           |  |      |   |           | 
|Total interest expense                              |  |                              | 602,421   |  |      |   | 871,185   | 
|                                                    |  |                              |           |  |      |   |           | 
|Net interest income                                 |  |                              | 2,259,335 |  |      |   | 2,126,104 | 
|PROVISION FOR LOAN LOSSES                           |  |                              | 30,000    |  |      |   | 30,000    | 
|                                                    |  |                              |           |  |      |   |           | 
|Net interest income after provision for loan losses |  |                              | 2,229,335 |  |      |   | 2,096,104 | 
|                                                    |  |                              |           |  |      |   |           | 
|NONINTEREST INCOME                                  |  |                              |           |  |      |   |           | 
|Service charges and other fees                      |  |                              | 112,434   |  |      |   | 145,841   | 
|Net gains on available for sale securities          |  |                              | 172       |  |      |   |          | 
|Other operating income                              |  |                              | 173,902   |  |      |   | 149,074   | 
|                                                    |  |                              |           |  |      |   |           | 
|Total noninterest income                            |  |                              | 286,508   |  |      |   | 294,915   | 
|                                                    |  |                              |           |  |      |   |           | 
|NONINTEREST EXPENSE                                 |  |                              |           |  |      |   |           | 
|Salary and employee benefits                        |  |                              | 933,757   |  |      |   | 925,003   | 
|Net occupancy expense of premises                   |  |                              | 357,224   |  |      |   | 372,692   | 
|Other operating expenses                            |  |                              | 612,559   |  |      |   | 599,415   | 
|                                                    |  |                              |           |  |      |   |           | 
|Total noninterest expense                           |  |                              | 1,903,540 |  |      |   | 1,897,110 | 
|                                                    |  |                              |           |  |      |   |           | 
|Income before income taxes                          |  |                              | 612,303   |  |      |   | 493,909   | 
|INCOME TAXES                                        |  |                              | 62,396    |  |      |   | 33,258    | 
|                                                    |  |                              |           |  |      |   |           | 
|Net income                                          |  | $                            | 549,907   |  |      | $ | 460,651   | 
|                                                    |  |                              |           |  |      |   |           | 
|WEIGHTED AVERAGE SHARES OUTSTANDING                 |  |                              | 1,652,814 |  |      |   | 1,652,814 | 
|                                                    |  |                              |           |  |      |   |           | 
|EARNINGS PER COMMON SHARE                           |  | $                            | 0.33      |  |      | $ | 0.28      | 
|                                                    |  |                              |           |  |      |   |           | 
|DIVIDENDS PER COMMON SHARE                          |  | $                            | 0.19      |  |      | $ | 0.18      | 
|                                                    |  |                              |           |  |      |   |           | 

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 CHANGES IN STOCKHOLDERS EQUITY

(Unaudited)



|                                                                                   |  |              |           |  |        |   |           |                                     |  |   |           |  |  |                                 |            |   |                |   |          |        |  |   |           |  |  |   |         |  |  |   |            |  
|---------------------------------------------------------------------------------- |  | ------------ | --------- |  | ------ | - | --------- | ----------------------------------- |  | - | --------- |  |  | ------------------------------- | ---------- | - | -------------- | - | -------- | ------ |  | - | --------- |  |  | - | ------- |  |  | - | ---------- | -
|                                                                                   |  | Common Stock |           |  |        |   |           | Retained                            |  |   | Treasury  |  |  | AccumulatedOther
Compre-hensive |            |   | Compre-hensive |   |          | Total  | 
|                                                                                   |  | Shares       |           |  | Amount |   |           | Surplus                             |  |   | Earnings  |  |  | Stock                           |            |   | Income         |   |          | Income |  |  
|BALANCE, DECEMBER 31, 2010                                                         |  |              | 1,662,814 |  |        | $ | 8,314,070 |                                     |  | $ | 6,288,403 |  |  | $                               | 15,722,313 |   |                | $ | (228,100 | )      |  | $ | 1,004,500 |  |  |   |         |  |  | $ | 31,101,186 |  
|Comprehensive income:                                                              |  |              |           |  |        |   |           |                                     |  |   |           |  |  |                                 |            |   |                |   |          |        |  |   |           |  |  |   |         |  |  |   |            |  
|Net income                                                                         |  |              |          |  |        |   |          |                                     |  |   |          |  |  |                                 | 549,907    |   |                |   |         |        |  |   |          |  |  | $ | 549,907 |  |  |   | 549,907    |  
|Other comprehensive income, net of tax                                             |  |              |           |  |        |   |           |                                     |  |   |           |  |  |                                 |            |   |                |   |          |        |  |   |           |  |  |   |         |  |  |   |            |  
|Unrealized gains on securities net of reclassification adjustment (see disclosure) |  |              |          |  |        |   |          |                                     |  |   |          |  |  |                                 |           |   |                |   |         |        |  |   | 206,776   |  |  |   | 206,776 |  |  |   | 206,776    |  
|                                                                                   |  |              |           |  |        |   |           |                                     |  |   |           |  |  |                                 |            |   |                |   |          |        |  |   |           |  |  |   |         |  |  |   |            |  
|Comprehensive income                                                               |  |              |           |  |        |   |           |                                     |  |   |           |  |  |                                 |            |   |                |   |          |        |  |   |           |  |  | $ | 756,683 |  |  |   |            |  
|                                                                                   |  |              |           |  |        |   |           |                                     |  |   |           |  |  |                                 |            |   |                |   |          |        |  |   |           |  |  |   |         |  |  |   |            |  
|Cash dividend($.19 per share)                                                      |  |              |          |  |        |   |          |                                     |  |   |          |  |  |                                 | (314,035   | ) |                |   |         |        |  |   |          |  |  |   |         |  |  |   | (314,035   | )
|                                                                                   |  |              |           |  |        |   |           |                                     |  |   |           |  |  |                                 |            |   |                |   |          |        |  |   |           |  |  |   |         |  |  |   |            |  
|BALANCE, March 31, 2011                                                            |  |              | 1,662,814 |  |        | $ | 8,314,070 |                                     |  | $ | 6,288,403 |  |  | $                               | 15,958,185 |   |                | $ | (228,100 | )      |  | $ | 1,211,276 |  |  |   |         |  |  | $ | 31,543,834 |  
|                                                                                   |  |              |           |  |        |   |           |                                     |  |   |           |  |  |                                 |            |   |                |   |          |        |  |   |           |  |  |   |         |  |  |   |            |  
|                                                                                   |  |              |           |  |        |   |          
|                                                                                   |  | Common Stock |           |  |        |   |           | Retained                            |  |   | Treasury  |  |  | AccumulatedOther
Compre-hensive |            |   | Compre-hensive |   |          | Total  | 
|                                                                                   |  | Shares       |           |  | Amount |   |           | Surplus                             |  |   | Earnings  |  |  | Stock                           |            |   | Income         |   |          | Income |  |  
|BALANCE, DECEMBER 31, 2009                                                         |  |              | 1,599,411 |  |        | $ | 7,997,055 |                                     |  | $ | 5,609,357 |  |  | $                               | 15,589,770 |   |                | $ | (228,100 | )      |  | $ | 1,838,155 |  |  |   |         |  |  | $ | 30,806,237 |  
|Comprehensive income:                                                              |  |              |           |  |        |   |           |                                     |  |   |           |  |  |                                 |            |   |                |   |          |        |  |   |           |  |  |   |         |  |  |   |            |  
|Net income                                                                         |  |              |          |  |        |   |          |                                     |  |   |          |  |  |                                 | 460,651    |   |                |   |         |        |  |   |          |  |  | $ | 460,651 |  |  |   | 460,651    |  
|Other comprehensive income, net of tax                                             |  |              |           |  |        |   |           |                                     |  |   |           |  |  |                                 |            |   |                |   |          |        |  |   |           |  |  |   |         |  |  |   |            |  
|Unrealized gains on securities net of reclassification adjustment (see disclosure) |  |              |          |  |        |   |          |                                     |  |   |          |  |  |                                 |           |   |                |   |         |        |  |   | 256,408   |  |  |   | 256,408 |  |  |   | 256,408    |  
|                                                                                   |  |              |           |  |        |   |           |                                     |  |   |           |  |  |                                 |            |   |                |   |          |        |  |   |           |  |  |   |         |  |  |   |            |  
|Comprehensive income                                                               |  |              |           |  |        |   |           |                                     |  |   |           |  |  |                                 |            |   |                |   |          |        |  |   |           |  |  | $ | 717,059 |  |  |   |            |  
|                                                                                   |  |              |           |  |        |   |           |                                     |  |   |           |  |  |                                 |            |   |                |   |          |        |  |   |           |  |  |   |         |  |  |   |            |  
|Cash dividend($.18 per share)                                                      |  |              |          |  |        |   |          |                                     |  |   |          |  |  |                                 | (301,988   | ) |                |   |         |        |  |   |          |  |  |   |         |  |  |   | (301,988   | )
|                                                                                   |  |              |           |  |        |   |           |                                     |  |   |           |  |  |                                 |            |   |                |   |          |        |  |   |           |  |  |   |         |  |  |   |            |  
|BALANCE, March 31, 2010                                                            |  |              | 1,599,411 |  |        | $ | 7,997,055 |                                     |  | $ | 5,609,357 |  |  | $                               | 15,748,433 |   |                | $ | (228,100 | )      |  | $ | 2,094,563 |  |  |   |         |  |  | $ | 31,221,308 |  
|                                                                                   |  |              |           |  |        |   |           |                                     |  |   |           |  |  |                                 |            |   |                |   |          |        |  |   |           |  |  |   |         |  |  |   |            |  
|                                                                                   |  |              |           |  |        |   |          
|                                                                                   |  |              |           |  |        |   |           | For the Three MonthsEnded March 31, |  |   |           |  |  |                                 |            |   |                |   |          |        | 
|                                                                                   |  |              |           |  |        |   |           | 2011                                |  |   | 2010      |  |  |                                 |            |   |                |   |          |        |  |   |           | 
|Disclosure of reclassification amount, net of tax:                                 |  |              |           |  |        |   |           |                                     |  |   |           |  |  |                                 |            |   |                |   |          |        |  |   |           |  |  |   |         |  |  |   |            |  
|Unrealized holding gains arising during the period                                 |  |              |           |  |        |   |           |                                     |  | $ | 206,883   |  |  | $                               | 256,408    |   |                |   |          |        |  |   |           |  |  |   |         |  |  |   |            |  
|Less reclassification adjustment for gains included in net income                  |  |              |           |  |        |   |           |                                     |  |   | 107       |  |  |                                 |           |   |                |   |          |        |  |   |           |  |  |   |         |  |  |   |            |  
|                                                                                   |  |              |           |  |        |   |           |                                     |  |   |           |  |  |                                 |            |   |                |   |          |        |  |   |           |  |  |   |         |  |  |   |            |  
|Net unrealized gains on securities                                                 |  |              |           |  |        |   |           |                                     |  | $ | 206,776   |  |  | $                               | 256,408    |   |                |   |          |        |  |   |           |  |  |   |         |  |  |   |            |  
|                                                                                   |  |              |           |  |        |   |           |                                     |  |   |           |  |  |                                 |            |   |                |   |          |        |  |   |           |  |  |   |         |  |  |   |            |  



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##### Table of Contents

First West Virginia Bancorp, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)



|                                                                                  |  |                                     |             |   |      |   |             |  
|--------------------------------------------------------------------------------- |  | ----------------------------------- | ----------- | - | ---- | - | ----------- | -
|                                                                                  |  | For the Three Months EndedMarch 31, |            
|                                                                                  |  | 2011                                |             |   | 2010 |  
|OPERATING ACTIVITIES                                                              |  |                                     |             |   |      |   |             |  
|Net income                                                                        |  | $                                   | 549,907     |   |      | $ | 460,651     |  
|Adjustments to reconcile net income to net cash provided by operating activities: |  |                                     |             |   |      |   |             |  
|Provision for loan losses                                                         |  |                                     | 30,000      |   |      |   | 30,000      |  
|Depreciation and amortization                                                     |  |                                     | 116,503     |   |      |   | 112,752     |  
|Amortization of investment securities, net                                        |  |                                     | 63,711      |   |      |   | 32,236      |  
|Investment security gains                                                         |  |                                     | (172        | ) |      |   |            |  
|Increase in cash surrender value of bank-owned life insurance                     |  |                                     | (25,303     | ) |      |   | (26,004     | )
|Increase in interest receivable                                                   |  |                                     | (175,003    | ) |      |   | (16,559     | )
|Decrease in interest payable                                                      |  |                                     | (29,878     | ) |      |   | (52,226     | )
|Other, net                                                                        |  |                                     | (359,185    | ) |      |   | 692,224     |  
|                                                                                  |  |                                     |             |   |      |   |             |  
|Net cash provided by operating activities                                         |  |                                     | 170,580     |   |      |   | 1,233,074   |  
|                                                                                  |  |                                     |             |   |      |   |             |  
|INVESTING ACTIVITIES                                                              |  |                                     |             |   |      |   |             |  
|Net decrease in loans, net of charge-offs                                         |  |                                     | 3,922,322   |   |      |   | 2,297,001   |  
|Proceeds from sales of securities available-for-sale                              |  |                                     | 14,847      |   |      |   |            |  
|Proceeds from maturities of securities available-for-sale                         |  |                                     | 2,521,558   |   |      |   | 6,243,916   |  
|Principal collected on mortgage-backed securities                                 |  |                                     | 5,680,030   |   |      |   | 3,180,941   |  
|Purchases of securities available-for-sale                                        |  |                                     | (13,603,114 | ) |      |   | (11,085,327 | )
|Recoveries on loans previously charged-off                                        |  |                                     | 32,120      |   |      |   | 375         |  
|Purchases of premises and equipment                                               |  |                                     | (200,470    | ) |      |   | (342,147    | )
|                                                                                  |  |                                     |             |   |      |   |             |  
|Net cash provided by (used in) investing activities                               |  |                                     | (1,632,707  | ) |      |   | 294,759     |  
|                                                                                  |  |                                     |             |   |      |   |             |  
|FINANCING ACTIVITIES                                                              |  |                                     |             |   |      |   |             |  
|Net increase in deposits                                                          |  |                                     | 5,640,991   |   |      |   | 1,507,235   |  
|Dividends paid                                                                    |  |                                     | (314,035    | ) |      |   | (301,988    | )
|Increase in short-term borrowings                                                 |  |                                     | 420,181     |   |      |   | 2,156,248   |  
|Decrease in FHLB and other long-term borrowings                                   |  |                                     | (20,274     | ) |      |   | (19,331     | )
|                                                                                  |  |                                     |             |   |      |   |             |  
|Net cash provided by financing activities                                         |  |                                     | 5,726,863   |   |      |   | 3,342,164   |  
|                                                                                  |  |                                     |             |   |      |   |             |  
|INCREASE IN CASH AND CASH EQUIVALENTS                                             |  |                                     | 4,264,736   |   |      |   | 4,869,997   |  
|CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR                                      |  |                                     | 9,932,613   |   |      |   | 13,353,789  |  
|                                                                                  |  |                                     |             |   |      |   |             |  
|CASH AND CASH EQUIVALENTS, END OF PERIOD                                          |  | $                                   | 14,197,349  |   |      | $ | 18,223,786  |  
|                                                                                  |  |                                     |             |   |      |   |             |  
|Supplemental Disclosures:                                                         |  |                                     |             |   |      |   |             |  
|Cash Paid for Interest                                                            |  | $                                   | 632,299     |   |      | $ | 923,411     |  
|Cash Paid for Income Taxes                                                        |  | $                                   |            |   |      | $ |            |  

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, 2011 AND 2010

(Unaudited)

NOTE 1 - SUMMARY OF SIGNIFICANT 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. A summary of the significant accounting and reporting policies applied in
the presentation of the accompanying financial statements follows.

Nature of Operations and Basis of Presentation: First West Virginia
Bancorp, Inc. (the Company) is a West Virginia Company. The Company provides a variety of banking services to individuals and businesses through the branch network of its affiliate bank (the Bank). The Bank operates nine full
service branches located in Wheeling (3), Wellsburg, Moundsville, New Martinsville, Buckhannon, and Weston, West Virginia and Bellaire, Ohio. Primary deposit products consist of checking accounts, savings accounts, and certificates of deposit.
Primary lending products consist of commercial and residential real estate loans, consumer loans, and business loans.

Principles of
Consolidation: The consolidated financial statements of the Company include the financial statements of the parent and its wholly-owned subsidiary, Progressive Bank, N.A. All significant intercompany transactions and accounts have been
eliminated in consolidation.

Use of Estimates: The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial
statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to material change in the near term relate to the
determination of the allowance for loan losses and the valuation of deferred tax assets.

Cash and cash equivalents: Cash and cash
equivalents consist of cash on hand and amounts due from banks and federal funds sold with maturities of less than 90 days.

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.

Securities are periodically reviewed for other-than-temporary impairment based upon a number of factors, including, but not limited to, the length of time and extent to which the market value has been
less than cost, the financial condition of the underlying issuer, the ability of the issuer to meet contractual obligations, the likelihood of the securitys ability to recover any decline in its market value, and managements intent and
ability to hold the security for a period of time sufficient to allow for a recovery in market value. Among the factors that are considered in determining managements intent and ability is a review of the Companys capital adequacy,
interest rate risk position and liquidity. The assessment of a securitys ability to recover any decline in market value, the ability of the issuer to meet contractual obligations and managements intent and ability requires considerable
judgment. Once a decline in value is determined to be other than temporary, if the investor does not intend to sell the security, and it is more-likely-than-not that it will not be required to sell the security, before recovery of the
securitys amortized cost basis, the charge to earnings is limited to the amount of credit loss. Any remaining difference between fair value and amortized cost (the difference defined as the non-credit portion) is recognized in other
comprehensive income, net of applicable taxes. Otherwise, the entire difference between fair value and amortized cost is charged to earnings. At March 31, 2011 and December 31, 2010 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.

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. The Bank is a member of the FHLB and, as such, is required to maintain a minimum investment in stock of the
FHLB that varies with the level of advances outstanding with the FHLB. The stock is bought from and sold to the FHLB based upon its $100 par value. The stock does not have a readily determinable fair value and, as such, is classified as restricted
stock, carried at cost and evaluated by management. The stocks value is determined by the ultimate recoverability of the par value rather than by recognizing temporary declines. The determination of whether the par value will ultimately be
recovered is influenced by criteria such as the following: (a) the significance of the decline in net assets of the FHLB as compared with the capital stock amount and the length of time this situation has persisted, (b) commitments by the
FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance, (c) the impact of legislative and regulatory changes on the customer base of the FHLB, and (d) the liquidity
position of the FHLB.



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##### Table of Contents

First West Virginia Bancorp, Inc.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2011 AND 2010

(Unaudited)



NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)



The FHLB has incurred losses in the prior two years and has suspended the payments of dividends. The
losses are primarily attributable to impairment of investment securities associated with the extreme economic conditions in place over the last two years. Management evaluated the stock and concluded that the stock was not impaired for the periods
presented herein. More consideration was given to the long-term prospects for the FHLB as opposed to the recent stress caused by the extreme economic conditions the world is facing. Management also considered that the FHLBs regulatory capital
ratios have increased from the prior year, liquidity appears adequate, and new shares of FHLB stock continue to exchange hands at $100 par value.

Loans and Loans Held for Sale: Loans are generally reported at the principal balance outstanding, net of unearned income. Interest income on loans is accrued based on the principal outstanding. It
is the Companys policy to discontinue the accrual of interest when 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. It is the Companys policy not to
recognize interest income on specific impaired loans unless the likelihood of future loss is remote. Interest payments received on such loans are applied as a reduction of the loan principal balance. Nonaccrual loans may be returned to accrual
status when none of its principal and interest payments are due and there has been a sustained period of repayment performance. Loan origination and commitment fees and certain direct loan origination costs are deferred and the net amount amortized
over the contractual life of the related loans or commitments as an adjustment of the related loans yield. Loans held for sale are carried at the lower of cost or estimated market value in the aggregate. There were no loans held for sale as of
March 31, 2011 and December 31, 2010, respectively.

The Company has entered into an agreement with the Federal Home
Loan Bank of Pittsburgh (FHLB) under which the bank may sell conforming one-to-four family residential mortgage loans to the FHLB. The current agreement dated December 28, 2009 provides for a maximum commitment of $10,000,000. This
commitment expires on December 28, 2011. The bank also maintains the servicing of these loans, for which it is paid a servicing fee. The total amount of loans sold and outstanding to the FHLB were $7,858,945 and $6,758,928 as of March 31,
2011 and December 31, 2010, respectively. These loans were also subject to recourse obligation or credit risk in the amount of $250,865 and $232,888 at March 31, 2011 and December 31, 2010, respectively. The amount of income
recognized as of a result of this agreement was $16,101 and $4,663 for the three month periods ended March 31, 2011 and 2010, respectively.

Allowance for Loan Losses: The allowance for loan losses represents the amount which management estimates is adequate to provide for probable losses inherent in its loan portfolio. The allowance
method is used in providing for loan losses. Accordingly, all loan losses are charged to the allowance, and all recoveries are credited to it. The allowance for loan losses is established through a provision for loan losses that is charged to
operations. The provision is based on managements evaluation of the adequacy of the allowance for loan losses which encompasses the overall risk characteristics of the various portfolio segments, past experience with losses, the impact of
economic conditions on borrowers, and other relevant factors. The estimates used in determining the adequacy of the allowance for loan losses, including the amounts and timing of future cash flows expected on impaired loans, are particularly
susceptible to significant changes in the near term.

Management tracks and assigns a historical loss percentage for each loan
rating category within each loan type. A rolling three-year historical loss ratio is used, calculated on a quarterly basis.

Management currently utilizes nine qualitative factors that are adjusted based on changes in the lending environment and economic
conditions. The qualitative factors include the following: levels of and trends in delinquencies, non-accruals, and charge-offs; trends within the loan portfolio; changes in lending policies and procedures; experience of lending personnel and
management oversight; national and local economic trends; concentrations of credit; external factors such as legal and regulatory requirements; changes in the quality of loan review and Board oversight; and changes in the value of underlying
collateral. The number of qualitative factors can change. Factors can be added for new risks or taken away if the risk no longer applies. Each loan type will have its own risk profile and management will evaluate and adjust each qualitative factor
for each loan type quarterly, if necessary. For example, if one area of the loan portfolio is experiencing sharp increases in growth, it is likely the qualitative factor for trends in the loan portfolio would be increased for that loan type. As
levels of delinquencies and non-accrual loans decline for commercial real estate and commercial loans it is likely that factor would be reduced.

In terms of the Companys loan portfolio, the commercial and industrial loans and commercial real estate loans are deemed to have more risk than the consumer real estate loans and other consumer
loans in the portfolio. The commercial loans not secured by real estate are highly dependent on financial condition and are more dependent on economic conditions. The commercial loans secured by real estate are also dependent on economic conditions
but generally have stronger forms of collateral. More recently, commercial real estate has been negatively impacted by devaluation so these commercial loans carry a higher qualitative factor for changes in the value of collateral. The commercial
loans and commercial real estate loans have historically been responsible for the majority of the Companys delinquencies, non-accrual loans, and charge-offs so both of these categories carry higher qualitative factors than consumer real estate
loans and other consumer loans. The Company has historically experienced very low levels of consumer real estate and consumer loan charge-offs so these qualitative factors are set lower than the commercial real estate and commercial and industrial
loans.



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##### Table of Contents

First West Virginia Bancorp, Inc.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2011 AND 2010

(Unaudited)



NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)



Allowance for Loan Losses: (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.

Impaired loans are 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.

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 $2,000,650 at March 31, 2011, 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.

Goodwill and Other Intangible Assets Goodwill resulted from the Companys purchase of a
less-than-whole financial institution (the branch). The goodwill value of $1.6 million 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.

Bank-owned Life Insurance: Bank owned life insurance consists of investments in life insurance policies on executive officers and
other members of the banks management. The policies are carried at their net cash surrender value. Changes in the policy value are recorded as an adjustment to the carrying value with the corresponding amount recognized as non-interest income
or expense. Earnings on these policies are based on the net earnings on the cash surrender value of the policies. The net cash surrender value of bank-owned life insurance was $3,440,550 and $3,415,247 at March 31, 2011 and December 31,
2010, respectively. The death benefit value of the bank-owned life insurance at March 31, 2011 and at December 31, 2010 was $8.8 million. An agreement has been executed with all officers whereby a $40,000 death benefit is payable upon the
participants death while employed by the Company to their designated beneficiary

Advertising Costs: Advertising costs are
expensed as the costs are incurred. Advertising expenses amounted to $17,921 and $12,207 for the three month periods ended March 31, 2011 and 2010, respectively.

Premises and Equipment: Premises and equipment are stated at cost, less accumulated depreciation and amortization. Provisions for depreciation and amortization are computed generally using the
straight-line method over the estimated useful lives of the assets. When units of property are disposed of, the premises and equipment accounts are relieved of the cost and the accumulated depreciation related to such units. Any resulting gains or
losses are credited to or charged against income. Cost of repairs and maintenance is charged to expense as incurred. Additions and improvements are capitalized at cost.



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##### Table of Contents

First West Virginia Bancorp, Inc.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2011 AND 2010

(Unaudited)



NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)



Transfers of Financial Assets: Transfers of financial assets are accounted for as sales when
control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it
from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Other Real Estate Owned: Other real estate owned are carried at the lower of cost or their estimated current fair value, less estimated costs to
sell and are included in other assets. Other real estate owned consist primarily of properties acquired through, or in lieu of foreclosures. Any subsequent declines in fair value, and gains or losses on the disposition of these assets are credited
to or charged against income.

Income Taxes: The Company and its subsidiary file a consolidated federal income tax return. There is
currently no liability for uncertain tax positions and no known unrecognized tax benefits. The Company recognizes, when applicable, interest and penalties related to unrecognized tax benefits in the provision for income taxes in the Statement of
Income. 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.

Earnings Per Common Share: Earnings per common share are calculated by dividing net income by the weighted-average number of shares of common
stock outstanding during the year. The Company has no securities which would be considered potential common stock.

Stock Dividends:On
October 13, 2010, the Company declared a 4% stock dividend to stockholders of record on December 20, 2010. All common share data includes the effect of the stock dividends.

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 and three month periods ended March 31, 2011 and March 31, 2010. 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:



|                                  |  |                                     |          |   |      |   |          |  
|--------------------------------- |  | ----------------------------------- | -------- | - | ---- | - | -------- | -
|                                  |  | For the three months
endedMarch 31, |         
|                                  |  | 2011                                |          |   | 2010 |  
|Before-tax amount                 |  | $                                   | 331,531  |   |      | $ | 411,108  |  
|Tax effect                        |  |                                     | (124,755 | ) |      |   | (154,700 | )
|                                  |  |                                     |          |   |      |   |          |  
|Net of tax effect                 |  |                                     | 206,776  |   |      |   | 256,408  |  
|Net income as reported            |  |                                     | 549,907  |   |      |   | 460,651  |  
|                                  |  |                                     |          |   |      |   |          |  
|Total comprehensive income (loss) |  | $                                   | 756,683  |   |      | $ | 717,059  |  
|                                  |  |                                     |          |   |      |   |          |  

Recent Accounting Pronouncements: In January 2010, the FASB issued ASU No. 2010-06, Fair Value Measurements
and Disclosures (Topic 820): Improving Disclosures about Fair Value Measurements. ASU 2010-06 amends Subtopic 820-10 to clarify existing disclosures, require new disclosures, and includes conforming amendments to guidance on employers
disclosures about postretirement benefit plan assets. ASU 2010-06 is effective for interim and annual periods beginning after December 15, 2009, except for disclosures about purchases, sales, issuances, and settlements in the roll forward of
activity in Level 3 fair value measurements. Those disclosures are effective for fiscal years beginning after December 15, 2010 and for interim periods within those fiscal years. This guidance did not have a material impact on the
Companys financial position or results.

In July 2010, FASB issued ASU No. 2010-20, Receivables (Topic 310): Disclosures about
the Credit Quality of Financing Receivables and the Allowance for Credit Losses.ASU 2010-20 is intended to provide additional information to assist financial statement users in assessing an entitys credit risk exposures and evaluating the
adequacy of its allowance for credit losses. The disclosures as of the end of a reporting period are effective for interim and annual reporting periods ending on or after December 15, 2010. The disclosures about activity that occurs during a
reporting period are effective for interim and annual reporting periods beginning on or after December 15, 2010. The amendments in ASU 2010-20 encourage, but do not require, comparative disclosures for earlier reporting periods that ended
before initial adoption. However, an entity should provide comparative disclosures for those reporting periods ending after initial adoption. The adoption of this guidance did not have a significant impact on the Companys financial statements.



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##### Table of Contents

First West Virginia Bancorp, Inc.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2011 AND 2010

(Unaudited)



NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)



Recent Accounting Pronouncements (Continued)

In August, 2010, the FASB issued ASU 2010-21, Accounting for Technical Amendments to Various SEC Rules and Schedules. This ASU amends various SEC
paragraphs pursuant to the issuance of Release No. 33-9026: Technical Amendments to Rules, Forms, Schedules, and Codification of Financial Reporting Policies and did not have a significant impact on the Companys financial statements.

In August, 2010, the FASB issued ASU 2010-22, Technical Corrections to SEC Paragraphs  An announcement made by the staff of the U.S.
Securities and Exchange Commission. This ASU amends various SEC paragraphs based on external comments received and the issuance of SAB 112, which amends or rescinds portions of certain SAB topics and did not have a significant impact on the
Companys financial statements.

In December, 2010, the FASB issued ASU 2010-28, When to Perform Step 2 of the Goodwill Impairment
Test for Reporting Units with Zero or Negative Carrying Amounts. This ASU modifies Step 1 of the goodwill impairment test for reporting units with zero or negative carrying amounts. For those reporting units, an entity is required to perform
Step 2 of the goodwill impairment test if it is more likely than not that a goodwill impairment exists. In determining whether it is more likely than not that a goodwill impairment exists, an entity should consider whether there are any adverse
qualitative factors indicating an impairment may exist. The qualitative factors are consistent with the existing guidance, which requires that goodwill of a reporting unit be tested for impairment between annual tests if an event occurs or
circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. For public entities, the amendments in this Update are effective for fiscal year, and interim periods within those years,
beginning after December 15, 2010. Early adoption is not permitted. For nonpublic entities, the amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. Nonpublic entities may
early adopt the amendments using the effective date for public entities. The Company is currently evaluating the impact the adoption of the standard will have on the Companys financial position or results of operations.

In December 2010, the FASB issued ASU 2010-29, Disclosure of Supplementary Pro Forma Information for Business Combinations. The amendments in this
update specify that if a public entity presents comparative financial statements, the entity should disclose revenue and earnings of the combined entity as though the business combination(s) that occurred during the current year had occurred as of
the beginning of the comparable prior annual reporting period only. The amendments also expand the supplemental pro forma disclosures under Topic 805 to include a description of the nature and amount of material, nonrecurring pro forma adjustments
directly attributable to the business combination included in the reported pro forma revenue and earnings. The amendments in this Update are effective prospectively for business combinations for which the acquisition date is on or after the
beginning of the first annual reporting period beginning on or after December 15, 2010. Early adoption is permitted. This ASU is not expected to have a significant impact on the Companys financial statements.

In January 2011, the FASB issued ASU 2011-01, Receivables (Topic 310): Deferral of the Effective Date of Disclosures about Troubled Debt
Restructurings in Update No. 2010-20.The amendments in this Update temporarily delay the effective date of the disclosures about troubled debt restructurings in Update 2010-20, enabling public-entity creditors to provide those disclosures
after the FASB clarifies the guidance for determining what constitutes a troubled debt restructuring. The deferral in this Update will result in more consistent disclosures about troubled debt restructurings. This amendment does not defer the
effective date of the other disclosure requirements in Update 2010-20. In the proposed Update for determining what constitutes a troubled debt restructuring, the FASB proposed that the clarifications would be effective for interim and annual periods
ending after June 15, 2011. For the new disclosures about troubled debt restructurings in Update 2010-20, those clarifications would be applied retrospectively to the beginning of the fiscal year in which the proposal is adopted. The adoption
of this guidance is not expected to have a significant impact on the Corporations/Companys financial statements.

In April 2011, the FASB issued ASU 2011-02, Receivables (Topic 310): A Creditors Determination of Whether a Restructuring Is a
Troubled Debt Restructuring. The amendments in this Update provide additional guidance or clarification to help creditors in determining whether a creditor has granted a concession and whether a debtor is experiencing financial difficulties for
purposes of determining whether a restructuring constitutes a troubled debt restructuring. The amendments in this Update are effective for the first interim or annual reporting period beginning on or after June 15, 2011, and should be applied
retrospectively to the beginning annual period of adoption. As a result of applying these amendments, an entity may identify receivables that are newly considered impaired. For purposes of measuring impairment of those receivables, an entity should
apply the amendments prospectively for the first interim or annual period beginning on or after June 15, 2011. The Company is currently evaluating the impact the adoption of the standard will have on the Companys financial position or
results of operations.



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##### Table of Contents

First West Virginia Bancorp, Inc.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2011 AND 2010

(Unaudited)



NOTE 2 - INVESTMENT SECURITIES



The amortized cost and estimated fair values of investment securities are as follows at March 31,
2011 and December 31, 2010:



|                                                         |  |                          |         |  |                      |   |       |                       |  |   |            |   |  |   |         | 
|-------------------------------------------------------- |  | ------------------------ | ------- |  | -------------------- | - | ----- | --------------------- |  | - | ---------- | - |  | - | ------- | 
|                                                         |  | (Expressed in thousands) |        
|                                                         |  | March 31, 2011           |        
|                                                         |  | AmortizedCost            |         |  | GrossUnrealizedGains |   |       | GrossUnrealizedLosses |  |   | Fair Value |  
|Securities available-for-sale:                           |  |                          |         |  |                      |   |       |                       |  |   |            |   |  |   |         | 
|Obligations of U.S. Government corporations and agencies |  | $                        | 39,258  |  |                      | $ | 21    |                       |  | $ | (533       | ) |  | $ | 38,746  | 
|Obligations of states and political subdivisions         |  |                          | 34,411  |  |                      |   | 1,147 |                       |  |   | (9         | ) |  |   | 35,549  | 
|Mortgage-backed securities                               |  |                          | 62,989  |  |                      |   | 1,638 |                       |  |   | (342       | ) |  |   | 64,285  | 
|Equity securities                                        |  |                          | 223     |  |                      |   | 20    |                       |  |   |           |   |  |   | 243     | 
|                                                         |  |                          |         |  |                      |   |       |                       |  |   |            |   |  |   |         | 
|Total available-for-sale                                 |  |                          | 136,881 |  |                      |   | 2,826 |                       |  |   | (884       | ) |  |   | 138,823 | 
|                                                         |  |                          |         |  |                      |   |       |                       |  |   |            |   |  |   |         | 
|Total                                                    |  | $                        | 136,881 |  |                      | $ | 2,826 |                       |  | $ | (884       | ) |  | $ | 138,823 | 
|                                                         |  |                          |         |  |                      |   |       |                       |  |   |            |   |  |   |         | 
|                                                         | 
|                                                         |  | (Expressed in thousands) |        
|                                                         |  | December 31, 2010        |        
|                                                         |  | AmortizedCost            |         |  | GrossUnrealizedGains |   |       | GrossUnrealizedLosses |  |   | Fair Value |  
|Securities available-for-sale:                           |  |                          |         |  |                      |   |       |                       |  |   |            |   |  |   |         | 
|Obligations of U.S. Government corporations and agencies |  | $                        | 36,024  |  |                      | $ | 120   |                       |  | $ | (446       | ) |  | $ | 35,698  | 
|Obligations of states and political subdivisions         |  |                          | 33,738  |  |                      |   | 678   |                       |  |   | (125       | ) |  |   | 34,291  | 
|Mortgage-backed securities                               |  |                          | 61,580  |  |                      |   | 1,828 |                       |  |   | (458       | ) |  |   | 62,950  | 
|Equity securities                                        |  |                          | 216     |  |                      |   | 14    |                       |  |   |           |   |  |   | 230     | 
|                                                         |  |                          |         |  |                      |   |       |                       |  |   |            |   |  |   |         | 
|Total available-for-sale                                 |  |                          | 131,558 |  |                      |   | 2,640 |                       |  |   | (1,029     | ) |  |   | 133,169 | 
|                                                         |  |                          |         |  |                      |   |       |                       |  |   |            |   |  |   |         | 
|Total                                                    |  | $                        | 131,558 |  |                      | $ | 2,640 |                       |  | $ | (1,029     | ) |  | $ | 133,169 | 
|                                                         |  |                          |         |  |                      |   |       |                       |  |   |            |   |  |   |         | 

The Companys investment securities portfolio contains unrealized losses of direct obligations of the U.S. Government
agency securities, including mortgage-related instruments issued or backed by the full faith and credit of the United States government or are generally viewed as having the implied guarantee of the U.S. government, and debt obligations of a U.S.
state or political subdivision.

On a quarterly basis, the Company evaluates the severity and duration of impairment for its investment
securities portfolio and the Companys ability to hold the securities till they recover. Generally, impairment is considered other than temporary when an investment security has sustained a decline in market value for a period of twelve months.
The Company has concluded that any impairment of its investment securities portfolio is not other than temporary but is the result of interest rate changes that are not expected to result in the noncollection of principal and interest during the
period. There were 31 and 30 positions that were temporarily impaired at March 31, 2011 and December 31, 2010, respectively.



PAGE 13



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##### Table of Contents

First West Virginia Bancorp, Inc.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2011 AND 2010

(Unaudited)



NOTE 2 - INVESTMENT SECURITIES (CONTINUED)



The following tables show the Companys gross unrealized losses and fair value, aggregated by
investment category and length of time, that the individual securities have been in a continuous unrealized loss position, at March 31, 2011 and December 31, 2010:



|                                                 |  |                          |        |  |                         |   |        |           |  |   |                       |  |  |           |    |   |                       |   |        |  |  |   |        |  
|------------------------------------------------ |  | ------------------------ | ------ |  | ----------------------- | - | ------ | --------- |  | - | --------------------- |  |  | --------- | -- | - | --------------------- | - | ------ |  |  | - | ------ | -
|                                                 |  | (Expressed in thousands) |       
|                                                 |  | March 31, 2011           |       
|                                                 |  | Less than TwelveMonths   |        |  | Twelve Months orGreater |   |        | Total     | 
|                                                 |  | FairValue                |        |  | GrossUnrealizedLosses   |   |        | FairValue |  |   | GrossUnrealizedLosses |  |  | FairValue |    |   | GrossUnrealizedLosses |  
|U.S. Government corporations and agencies        |  | $                        | 28,946 |  |                         | $ | (533   | )         |  | $ |                      |  |  | $         |   |   |                       | $ | 28,946 |  |  | $ | (533   | )
|Obligations of states and political subdivisions |  |                          | 2,529  |  |                         |   | (9     | )         |  |   |                      |  |  |           |   |   |                       |   | 2,529  |  |  |   | (9     | )
|Mortgage-backed securities                       |  |                          | 18,996 |  |                         |   | (340   | )         |  |   | 254                   |  |  |           | (2 | ) |                       |   | 19,250 |  |  |   | (342   | )
|                                                 |  |                          |        |  |                         |   |        |           |  |   |                       |  |  |           |    |   |                       |   |        |  |  |   |        |  
|Total debt securities                            |  |                          | 50,471 |  |                         |   | (882   | )         |  |   | 254                   |  |  |           | (2 | ) |                       |   | 50,725 |  |  |   | (884   | )
|Equity securities                                |  |                          | 2      |  |                         |   |       |           |  |   |                      |  |  |           |   |   |                       |   | 2      |  |  |   |       |  
|                                                 |  |                          |        |  |                         |   |        |           |  |   |                       |  |  |           |    |   |                       |   |        |  |  |   |        |  
|Total                                            |  | $                        | 50,473 |  |                         | $ | (882   | )         |  | $ | 254                   |  |  | $         | (2 | ) |                       | $ | 50,727 |  |  | $ | (884   | )
|                                                 |  |                          |        |  |                         |   |        |           |  |   |                       |  |  |           |    |   |                       |   |        |  |  |   |        |  
|                                                 | 
|                                                 |  | (Expressed in thousands) |       
|                                                 |  | December 31, 2010        |       
|                                                 |  | Less than TwelveMonths   |        |  | Twelve Months orGreater |   |        | Total     | 
|                                                 |  | FairValue                |        |  | GrossUnrealizedLosses   |   |        | FairValue |  |   | GrossUnrealizedLosses |  |  | FairValue |    |   | GrossUnrealizedLosses |  
|U.S. Government corporations and agencies        |  | $                        | 15,542 |  |                         | $ | (446   | )         |  | $ |                      |  |  | $         |   |   |                       | $ | 15,542 |  |  | $ | (446   | )
|Obligations of states and political subdivisions |  |                          | 6,056  |  |                         |   | (125   | )         |  |   |                      |  |  |           |   |   |                       |   | 6,056  |  |  |   | (125   | )
|Mortgage-backed securities                       |  |                          | 17,291 |  |                         |   | (457   | )         |  |   | 266                   |  |  |           | (1 | ) |                       |   | 17,557 |  |  |   | (458   | )
|                                                 |  |                          |        |  |                         |   |        |           |  |   |                       |  |  |           |    |   |                       |   |        |  |  |   |        |  
|Total debt securities                            |  |                          | 38,889 |  |                         |   | (1,028 | )         |  |   | 266                   |  |  |           | (1 | ) |                       |   | 39,155 |  |  |   | (1,029 | )
|Equity securities                                |  |                          |       |  |                         |   |       |           |  |   |                      |  |  |           |   |   |                       |   |       |  |  |   |       |  
|                                                 |  |                          |        |  |                         |   |        |           |  |   |                       |  |  |           |    |   |                       |   |        |  |  |   |        |  
|Total                                            |  | $                        | 38,889 |  |                         | $ | (1,028 | )         |  | $ | 266                   |  |  | $         | (1 | ) |                       | $ | 39,155 |  |  | $ | (1,029 | )
|                                                 |  |                          |        |  |                         |   |        |           |  |   |                       |  |  |           |    |   |                       |   |        |  |  |   |        |  

The amortized cost and fair value of investment securities available for sale at March 31, 2011 and December 31,
2010, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.



|                                       |  |                          |         |  |                   |   |         |               |  |   |           |  |  |   |         | 
|-------------------------------------- |  | ------------------------ | ------- |  | ----------------- | - | ------- | ------------- |  | - | --------- |  |  | - | ------- | 
|                                       |  | (Expressed in thousands) |        
|                                       |  | March 31, 2011           |         |  | December 31, 2010 |  
|                                       |  | AmortizedCost            |         |  | FairValue         |   |         | AmortizedCost |  |   | FairValue | 
|Due in one year or less                |  | $                        | 1,875   |  |                   | $ | 1,886   |               |  | $ | 1,008     |  |  | $ | 1,016   | 
|Due after one year through five years  |  |                          | 10,905  |  |                   |   | 11,005  |               |  |   | 13,265    |  |  |   | 13,412  | 
|Due after five years through ten years |  |                          | 39,517  |  |                   |   | 39,322  |               |  |   | 33,211    |  |  |   | 33,022  | 
|Due after ten years                    |  |                          | 21,372  |  |                   |   | 22,082  |               |  |   | 22,278    |  |  |   | 22,539  | 
|                                       |  |                          |         |  |                   |   |         |               |  |   |           |  |  |   |         | 
|                                       |  |                          | 73,669  |  |                   |   | 74,295  |               |  |   | 69,762    |  |  |   | 69,989  | 
|Mortgage-backed securities             |  |                          | 62,989  |  |                   |   | 64,285  |               |  |   | 61,580    |  |  |   | 62,950  | 
|Equity securities                      |  |                          | 223     |  |                   |   | 243     |               |  |   | 216       |  |  |   | 230     | 
|                                       |  |                          |         |  |                   |   |         |               |  |   |           |  |  |   |         | 
|Total                                  |  | $                        | 136,881 |  |                   | $ | 138,823 |               |  | $ | 131,558   |  |  | $ | 133,169 | 
|                                       |  |                          |         |  |                   |   |         |               |  |   |           |  |  |   |         | 

Proceeds from sales of securities available-for-sale during the three month periods ended March 31, 2011 and 2010, were
$14,847 and $-0- respectively. Gross gains of $288 and gross losses of $116 during the three months ended March 31, 2011 were realized on those sales. Assets carried at $30,917,000 and $31,931,000 at March 31, 2011 and
December 31, 2010, respectively, were pledged to secure United States Government and other public funds and for other purposes as required or permitted by law.



PAGE 14



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##### Table of Contents

First West Virginia Bancorp, Inc.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2011 AND 2010

(Unaudited)



NOTE 2 - INVESTMENT SECURITIES (CONTINUED)



The maturity distribution using book value including accretion of discounts and amortization of premiums
and approximate yield of investment securities at March 31, 2011 and December 31, 2010 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. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.



|                                          |               |                |         |           |                   |   |         |  |  |               |      |   |           |   |         |       |  |   |         |  |  |  |      |  
|----------------------------------------- | ------------- | -------------- | ------- | --------- | ----------------- | - | ------- |  |  | ------------- | ---- | - | --------- | - | ------- | ----- |  | - | ------- |  |  |  | ---- | -
|(dollars in thousands)                    |               | March 31, 2011 |         |           | December 31, 2010 |  
|                                          | AmortizedCost |                |         | FairValue |                   |   | Yield   |  |  | AmortizedCost |      |   | FairValue |   |         | Yield | 
|U.S. Government corporations and agencies |               |                |         |           |                   |   |         |  |  |               |      |   |           |   |         |       |  |   |         |  |  |  |      |  
|Within One Year                           |               | $              | 5       |           |                   | $ | 5       |  |  |               | 0.14 | % |           | $ | 18      |       |  | $ | 18      |  |  |  | 0.20 | %
|After One But Within Five Years           |               |                | 8,515   |           |                   |   | 8,528   |  |  |               | 2.74 |   |           |   | 10,020  |       |  |   | 10,090  |  |  |  | 2.79 |  
|After Five But Within Ten Years           |               |                | 30,734  |           |                   |   | 30,210  |  |  |               | 3.02 |   |           |   | 25,984  |       |  |   | 25,586  |  |  |  | 2.92 |  
|After Ten Years                           |               |                | 4       |           |                   |   | 4       |  |  |               | 0.88 |   |           |   | 4       |       |  |   | 4       |  |  |  | 0.88 |  
|                                          |               |                |         |           |                   |   |         |  |  |               |      |   |           |   |         |       |  |   |         |  |  |  |      |  
|                                          |               |                | 39,258  |           |                   |   | 38,747  |  |  |               | 2.96 |   |           |   | 36,026  |       |  |   | 35,698  |  |  |  | 2.88 |  
|States & Political Subdivisions           |               |                |         |           |                   |   |         |  |  |               |      |   |           |   |         |       |  |   |         |  |  |  |      |  
|Within One Year                           |               |                | 1,870   |           |                   |   | 1,881   |  |  |               | 5.36 |   |           |   | 990     |       |  |   | 999     |  |  |  | 4.39 |  
|After One But Within Five Years           |               |                | 2,390   |           |                   |   | 2,477   |  |  |               | 5.23 |   |           |   | 3,246   |       |  |   | 3,322   |  |  |  | 5.57 |  
|After Five But Within Ten Years           |               |                | 8,783   |           |                   |   | 9,112   |  |  |               | 5.50 |   |           |   | 7,227   |       |  |   | 7,435   |  |  |  | 5.78 |  
|After Ten Years                           |               |                | 21,368  |           |                   |   | 22,078  |  |  |               | 6.22 |   |           |   | 22,274  |       |  |   | 22,535  |  |  |  | 6.38 |  
|                                          |               |                |         |           |                   |   |         |  |  |               |      |   |           |   |         |       |  |   |         |  |  |  |      |  
|                                          |               |                | 34,411  |           |                   |   | 35,548  |  |  |               | 5.92 |   |           |   | 33,737  |       |  |   | 34,291  |  |  |  | 6.11 |  
|Mortgage-Backed Securities                |               |                | 62,989  |           |                   |   | 64,285  |  |  |               | 3.77 |   |           |   | 61,580  |       |  |   | 62,950  |  |  |  | 3.98 |  
|Equity Securities                         |               |                | 223     |           |                   |   | 243     |  |  |               | 2.29 |   |           |   | 215     |       |  |   | 230     |  |  |  | 2.44 |  
|                                          |               |                |         |           |                   |   |         |  |  |               |      |   |           |   |         |       |  |   |         |  |  |  |      |  
|Total                                     |               | $              | 136,881 |           |                   | $ | 138,823 |  |  |               | 4.09 | % |           | $ | 131,558 |       |  | $ | 133,169 |  |  |  | 4.23 | %
|                                          |               |                |         |           |                   |   |         |  |  |               |      |   |           |   |         |       |  |   |         |  |  |  |      |  

NOTE 3 - LOANS AND LEASES

Loans outstanding at March 31, 2011 and December 31, 2010 are as follows:



|                                               |  |                          |         |  |                   |   |         | 
|---------------------------------------------- |  | ------------------------ | ------- |  | ----------------- | - | ------- | 
|                                               |  | (Expressed in Thousands) |        
|                                               |  | March 31, 2011           |         |  | December 31, 2010 |  
|Consumer Real Estate:                          |  |                          |         |  |                   |   |         | 
|Construction                                   |  | $                        | 305     |  |                   | $ | 308     | 
|Farmland                                       |  |                          | 237     |  |                   |   | 246     | 
|Residential 1-4 Family                         |  |                          | 26,919  |  |                   |   | 28,089  | 
|Home Equity Loans                              |  |                          | 2,928   |  |                   |   | 2,976   | 
|Home Equity Lines of Credit                    |  |                          | 2,228   |  |                   |   | 2,447   | 
|                                               |  |                          |         |  |                   |   |         | 
|Total Consumer Real Estate                     |  |                          | 32,617  |  |                   |   | 34,066  | 
|Commercial Real Estate:                        |  |                          |         |  |                   |   |         | 
|Non-farm, non-residential                      |  |                          | 48,764  |  |                   |   | 49,195  | 
|Multifamily (5 or more) residential properties |  |                          | 7,402   |  |                   |   | 7,458   | 
|                                               |  |                          |         |  |                   |   |         | 
|Total Commercial Real Estate                   |  |                          | 56,166  |  |                   |   | 56,653  | 
|Commercial and Other Loans:                    |  |                          |         |  |                   |   |         | 
|Commercial                                     |  |                          | 6,438   |  |                   |   | 7,033   | 
|Non-rated industrial development obligations   |  |                          | 13,054  |  |                   |   | 13,460  | 
|Other loans                                    |  |                          | 26      |  |                   |   | 39      | 
|                                               |  |                          |         |  |                   |   |         | 
|Total Commercial and Other Loans               |  |                          | 19,518  |  |                   |   | 20,532  | 
|Consumer Loans:                                |  |                          |         |  |                   |   |         | 
|Installment and other loans to individuals     |  |                          | 8,639   |  |                   |   | 9,696   | 
|Credit Cards                                   |  |                          | 534     |  |                   |   | 573     | 
|                                               |  |                          |         |  |                   |   |         | 
|Total Consumer Loans                           |  |                          | 9,173   |  |                   |   | 10,269  | 
|                                               |  |                          |         |  |                   |   |         | 
|Total loans                                    |  | $                        | 117,474 |  |                   | $ | 121,520 | 
|Less unearned interest and deferred fees       |  |                          | 150     |  |                   |   | 153     | 
|                                               |  |                          |         |  |                   |   |         | 
|Net loans                                      |  | $                        | 117,324 |  |                   | $ | 121,367 | 
|                                               |  |                          |         |  |                   |   |         | 



PAGE 15



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##### Table of Contents

First West Virginia Bancorp, Inc.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2011 AND 2010

(Unaudited)



NOTE 3 - LOANS AND LEASES (CONTINUED)



The Company has certain lending policies and procedures in place that are designed to maximize loan
income within an acceptable level of risk. These policies and procedures are reviewed by management and approved by the Board of Directors on a regular basis. A reporting system supplements the review process by providing management with frequent
reports related to loan production, loan quality, concentration of credit, loan delinquencies and non-performing and potential problem loans. Diversification in the loan portfolio is a means of managing risk associated with fluctuations in economic
conditions.

The Company originates direct and indirect consumer loans including principally residential real estate, home equity lines and
loans, credit cards, and indirect vehicle loans using a credit analysis as part of the underwriting process. Each loan type has a separate underwriting criteria, which consists of several factors including debt to income, type of collateral, credit
history and customer relationship with the Company.

Commercial and industrial loans are underwritten after evaluating and understanding the
borrowers ability to operate profitably. Underwriting standards are designed to promote relationship banking rather than transactional banking. The Companys management examines current and projected cash flows to determine the ability of
the borrower to repay their obligations as agreed. Commercial and industrial loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of the
borrower, however, may not be as expected and the collateral securing the loan may fluctuate in value. Minimum standards and underwriting guidelines have been established for commercial loan types.

Commercial real estate loans are subject to underwriting standards and processes similar to commercial and industrial loans, in addition to those of real
estate loans. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally largely
dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be adversely affected by the general economy or conditions specific to the real
estate market such as geography and/or property type.

Non-accrual loans amounted to $4,543,413 and $4,902,515 at March 31, 2011 and
December 31, 2010, respectively. The amount of interest income that would have been recognized had the loans performed in accordance with their original terms was $105,100, $82,400 and $289,590 for the three months ended March 31, 2011 and
2010 and for the year ended December 31, 2010, respectively.

The following tables present the contractual aging of the recorded
investment in past due loans by class of loans (in thousands):



|                                    |  |                   |         |   |                        |   |     |                        |  |   |                             |  |  |               |    |  |             |   |     |            |  |   |       |  |  |   |         |  
|----------------------------------- |  | ----------------- | ------- | - | ---------------------- | - | --- | ---------------------- |  | - | --------------------------- |  |  | ------------- | -- |  | ----------- | - | --- | ---------- |  | - | ----- |  |  | - | ------- | -
|                                    |  | March 31, 2011    |        
|                                    |  | Current           |         |   | Loans30-59daysPast Due |   |     | Loans60-89daysPast Due |  |   | Loans90 or moredaysPast Due |  |  | TotalPast Due |    |  | Non-Accrual |   |     | TotalLoans | 
|Commercial and Other Loans          |  | $                 | 18,896  |   |                        | $ | 570 |                        |  | $ |                            |  |  | $             |   |  |             | $ | 570 |            |  | $ | 52    |  |  | $ | 19,518  |  
|Commercial real estate              |  |                   | 52,090  |   |                        |   | 28  |                        |  |   | 120                         |  |  |               |   |  |             |   | 148 |            |  |   | 3,928 |  |  |   | 56,166  |  
|Consumer real estate                |  |                   | 31,887  |   |                        |   | 133 |                        |  |   | 7                           |  |  |               | 38 |  |             |   | 178 |            |  |   | 552   |  |  |   | 32,617  |  
|Consumer                            |  |                   | 9,136   |   |                        |   | 11  |                        |  |   | 13                          |  |  |               | 2  |  |             |   | 26  |            |  |   | 11    |  |  |   | 9,173   |  
|Unearned interest and deferred fees |  |                   | (150    | ) |                        |   |    |                        |  |   |                            |  |  |               |   |  |             |   |    |            |  |   |      |  |  |   | (150    | )
|                                    |  |                   |         |   |                        |   |     |                        |  |   |                             |  |  |               |    |  |             |   |     |            |  |   |       |  |  |   |         |  
|Total                               |  | $                 | 111,859 |   |                        | $ | 742 |                        |  | $ | 140                         |  |  | $             | 40 |  |             | $ | 922 |            |  | $ | 4,543 |  |  | $ | 117,324 |  
|                                    |  |                   |         |   |                        |   |     |                        |  |   |                             |  |  |               |    |  |             |   |     |            |  |   |       |  |  |   |         |  
|                                    | 
|                                    |  | December 31, 2010 |        
|                                    |  | Current           |         |   | Loans30-59daysPast Due |   |     | Loans60-89daysPast Due |  |   | Loans90 or moredaysPast Due |  |  | TotalPast Due |    |  | Non-Accrual |   |     | TotalLoans | 
|Commercial and Other Loans          |  | $                 | 20,369  |   |                        | $ | 109 |                        |  | $ |                            |  |  | $             |   |  |             | $ | 109 |            |  | $ | 54    |  |  | $ | 20,532  |  
|Commercial real estate              |  |                   | 52,451  |   |                        |   | 29  |                        |  |   | 26                          |  |  |               |   |  |             |   | 55  |            |  |   | 4,147 |  |  |   | 56,653  |  
|Consumer real estate                |  |                   | 33,247  |   |                        |   | 103 |                        |  |   |                            |  |  |               | 28 |  |             |   | 131 |            |  |   | 688   |  |  |   | 34,066  |  
|Consumer                            |  |                   | 10,218  |   |                        |   | 34  |                        |  |   | 3                           |  |  |               |   |  |             |   | 37  |            |  |   | 14    |  |  |   | 10,269  |  
|Unearned interest and deferred fees |  |                   | (153    | ) |                        |   |    |                        |  |   |                            |  |  |               |   |  |             |   |    |            |  |   |      |  |  |   | (153    | )
|                                    |  |                   |         |   |                        |   |     |                        |  |   |                             |  |  |               |    |  |             |   |     |            |  |   |       |  |  |   |         |  
|Total                               |  | $                 | 116,132 |   |                        | $ | 275 |                        |  | $ | 29                          |  |  | $             | 28 |  |             | $ | 332 |            |  | $ | 4,903 |  |  | $ | 121,367 |  
|                                    |  |                   |         |   |                        |   |     |                        |  |   |                             |  |  |               |    |  |             |   |     |            |  |   |       |  |  |   |         |  



PAGE 16



---

##### Table of Contents

First West Virginia Bancorp, Inc.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2011 AND 2010

(Unaudited)



NOTE 3 - LOANS AND LEASES (CONTINUED)



The Company utilizes an internal asset classification system as a means of reporting problem and
potential problem loans. Under the Companys risk rating system, the Company classifies problem and potential problem loans as Special Mention, Substandard, and Doubtful. Substandard loans include those
characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Loans classified as Doubtful have all the weaknesses inherent in those classified Substandard with the added characteristic that
the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Loans that do not currently expose the Company to sufficient risk to warrant
classification in one of the aforementioned categories, but possess weaknesses that deserve managements close attention are deemed to be Special Mention. Risk ratings are updated any time the situation warrants.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass-rated loans. The
following tables present the risk category of loans by class of loans based on the most recent analysis performed and the contractual aging as of March 31, 2011 and December 31, 2010 (in thousands):



|                                  |  |      |        |  |                |   |       |             |  |   |          |  |  |       |   |  |  |   |        | 
|--------------------------------- |  | ---- | ------ |  | -------------- | - | ----- | ----------- |  | - | -------- |  |  | ----- | - |  |  | - | ------ | 
|March 31, 2011                    |  | Pass |        |  | SpecialMention |   |       | Substandard |  |   | Doubtful |  |  | Total |  
|Commercial and Other              |  | $    | 18,999 |  |                | $ | 467   |             |  | $ | 52       |  |  | $     |  |  |  | $ | 19,518 | 
|Commercial Real Estate            |  |      | 41,857 |  |                |   | 6,360 |             |  |   | 7,949    |  |  |       |  |  |  |   | 56,166 | 
|Construction and Land Development |  |      | 387    |  |                |   |      |             |  |   | 155      |  |  |       |  |  |  |   | 542    | 
|                                  |  |      |        |  |                |   |       |             |  |   |          |  |  |       |   |  |  |   |        | 
|Total                             |  | $    | 61,243 |  |                | $ | 6,827 |             |  | $ | 8,156    |  |  | $     |  |  |  | $ | 76,226 | 
|                                  |  |      |        |  |                |   |       |             |  |   |          |  |  |       |   |  |  |   |        | 
|Current                           |  | $    | 61,243 |  |                | $ | 6,360 |             |  | $ | 4,853    |  |  | $     |  |  |  | $ | 72,456 | 
|Past Due 30-59 days               |  |      |       |  |                |   | 467   |             |  |   | 28       |  |  |       |  |  |  |   | 495    | 
|Past Due 60-89 days               |  |      |       |  |                |   |      |             |  |   |         |  |  |       |  |  |  |   |       | 
|Past Due 90 days or more          |  |      |       |  |                |   |      |             |  |   |         |  |  |       |  |  |  |   |       | 
|Non- accrual                      |  |      |       |  |                |   |      |             |  |   | 3,275    |  |  |       |  |  |  |   | 3,275  | 
|                                  |  |      |        |  |                |   |       |             |  |   |          |  |  |       |   |  |  |   |        | 
|Total                             |  | $    | 61,243 |  |                | $ | 6,827 |             |  | $ | 8,156    |  |  | $     |  |  |  | $ | 76,226 | 
|                                  |  |      |        |  |                |   |       |             |  |   |          |  |  |       |   |  |  |   |        | 
|                                  |  |      |        |  |               
|December 31, 2010                 |  | Pass |        |  | SpecialMention |   |       | Substandard |  |   | Doubtful |  |  | Total |  
|Commercial and Other              |  | $    | 19,735 |  |                | $ | 743   |             |  | $ | 54       |  |  | $     |  |  |  | $ | 20,532 | 
|Commercial Real Estate            |  |      | 42,050 |  |                |   | 6,388 |             |  |   | 8,215    |  |  |       |  |  |  |   | 56,653 | 
|Construction and Land Development |  |      | 399    |  |                |   |      |             |  |   | 155      |  |  |       |  |  |  |   | 554    | 
|                                  |  |      |        |  |                |   |       |             |  |   |          |  |  |       |   |  |  |   |        | 
|Total                             |  | $    | 62,184 |  |                | $ | 7,131 |             |  | $ | 8,424    |  |  | $     |  |  |  | $ | 77,739 | 
|                                  |  |      |        |  |                |   |       |             |  |   |          |  |  |       |   |  |  |   |        | 
|Current                           |  | $    | 62,184 |  |                | $ | 7,131 |             |  | $ | 4,194    |  |  | $     |  |  |  | $ | 73,509 | 
|Past Due 30-59 days               |  |      |       |  |                |   |      |             |  |   | 29       |  |  |       |  |  |  |   | 29     | 
|Past Due 60-89 days               |  |      |       |  |                |   |      |             |  |   |         |  |  |       |  |  |  |   |       | 
|Past Due 90 days or more          |  |      |       |  |                |   |      |             |  |   |         |  |  |       |  |  |  |   |       | 
|Non- accrual                      |  |      |       |  |                |   |      |             |  |   | 4,201    |  |  |       |  |  |  |   | 4,201  | 
|                                  |  |      |        |  |                |   |       |             |  |   |          |  |  |       |   |  |  |   |        | 
|Total                             |  | $    | 62,184 |  |                | $ | 7,131 |             |  | $ | 8,424    |  |  | $     |  |  |  | $ | 77,739 | 
|                                  |  |      |        |  |                |   |       |             |  |   |          |  |  |       |   |  |  |   |        | 

For consumer and residential real estate loan classes, the Company also evaluates credit quality based on the aging status
of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in those loan classes based on payment activity as of March 31, 2011 and December 31, 2010 (in thousands):



|                     |  |            |        |  |                |   |     |       |  |   |        | 
|-------------------- |  | ---------- | ------ |  | -------------- | - | --- | ----- |  | - | ------ | 
|March 31, 2011       |  | Performing |        |  | Non-performing |   |     | Total | 
|Consumer             |  | $          | 9,160  |  |                | $ | 13  |       |  | $ | 9,173  | 
|Consumer Real Estate |  |            | 32,027 |  |                |   | 590 |       |  |   | 32,617 | 
|                     |  |            |        |  |                |   |     |       |  |   |        | 
|Total                |  | $          | 41,187 |  |                | $ | 603 |       |  | $ | 41,790 | 
|                     |  |            |        |  |                |   |     |       |  |   |        | 



PAGE 17



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##### Table of Contents

First West Virginia Bancorp, Inc.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2011 AND 2010

(Unaudited)



NOTE 3 - LOANS AND LEASES (CONTINUED)



|                     |  |            |        |  |                |   |     |       |  |   |        | 
|-------------------- |  | ---------- | ------ |  | -------------- | - | --- | ----- |  | - | ------ | 
|December 31, 2010    |  | Performing |        |  | Non-performing |   |     | Total | 
|Consumer             |  | $          | 10,255 |  |                | $ | 14  |       |  | $ | 10,269 | 
|Consumer Real Estate |  |            | 32,796 |  |                |   | 716 |       |  |   | 33,512 | 
|                     |  |            |        |  |                |   |     |       |  |   |        | 
|Total                |  | $          | 43,051 |  |                | $ | 730 |       |  | $ | 43,781 | 
|                     |  |            |        |  |                |   |     |       |  |   |        | 



|                                                             |  |                          |       |  |                  |   |       | 
|------------------------------------------------------------ |  | ------------------------ | ----- |  | ---------------- | - | ----- | 
|                                                             |  | (Expressed in Thousands) |      
|                                                             |  | March 31,2011            |       |  | December 31,2010 |  
|Average investment in impaired loans                         |  | $                        | 4,565 |  |                  | $ | 5,062 | 
|                                                             |  |                          |       |  |                  |   |       | 
|Related allowance for loan losses                            |  |                          | 219   |  |                  |   | 256   | 
|                                                             |  |                          |       |  |                  |   |       | 
|Partial charge-offs                                          |  |                          |      |  |                  |   |      | 
|                                                             |  |                          |       |  |                  |   |       | 
|Interest income recognized on a cash basis on impaired loans |  |                          |      |  |                  |   |      | 
|                                                             |  |                          |       |  |                  |   |       | 

No additional funds are committed to be advanced in connection with impaired loans.

Impaired loans at March 31, 2011 and December 31, 2010 are set forth in the following tables. No interest income was recognized on impaired
loans subsequent to their classification as impaired (in thousands):



|                           |  |                                   |       |  |                                    |   |       |                                 |  |   |                         |  |  |                  |       |  |                           |   |     |  |  |   |       | 
|-------------------------- |  | --------------------------------- | ----- |  | ---------------------------------- | - | ----- | ------------------------------- |  | - | ----------------------- |  |  | ---------------- | ----- |  | ------------------------- | - | --- |  |  | - | ----- | 
|                           |  | March 31, 2011                    |      
|                           |  | UnpaidContractualPrincipalBalance |       |  | RecordedInvestmentWith NoAllowance |   |       | RecordedInvestmentWithAllowance |  |   | TotalRecordedInvestment |  |  | RelatedAllowance |       |  | AverageRecordedInvestment |  
|Commercial and Other Loans |  | $                                 | 52    |  |                                    | $ | 52    |                                 |  | $ |                        |  |  | $                | 52    |  |                           | $ |    |  |  | $ | 55    | 
|Commercial real estate     |  |                                   | 3,928 |  |                                    |   | 1,491 |                                 |  |   | 2,437                   |  |  |                  | 3,928 |  |                           |   | 219 |  |  |   | 4,136 | 
|Consumer real estate       |  |                                   | 355   |  |                                    |   | 355   |                                 |  |   |                        |  |  |                  | 355   |  |                           |   |    |  |  |   | 374   | 
|                           |  |                                   |       |  |                                    |   |       |                                 |  |   |                         |  |  |                  |       |  |                           |   |     |  |  |   |       | 
|Total                      |  | $                                 | 4,335 |  |                                    | $ | 1,898 |                                 |  | $ | 2,437                   |  |  | $                | 4,335 |  |                           | $ | 219 |  |  | $ | 4,565 | 
|                           |  |                                   |       |  |                                    |   |       |                                 |  |   |                         |  |  |                  |       |  |                           |   |     |  |  |   |       | 
|                           | 
|                           |  | December 31, 2010                 |      
|                           |  | UnpaidContractualPrincipalBalance |       |  | RecordedInvestmentWith NoAllowance |   |       | RecordedInvestmentWithAllowance |  |   | TotalRecordedInvestment |  |  | RelatedAllowance |       |  | AverageRecordedInvestment |  
|Commercial and Other Loans |  | $                                 | 54    |  |                                    | $ | 54    |                                 |  | $ |                        |  |  | $                | 54    |  |                           | $ |    |  |  | $ | 57    | 
|Commercial real estate     |  |                                   | 4,147 |  |                                    |   | 1,701 |                                 |  |   | 2,446                   |  |  |                  | 4,147 |  |                           |   | 256 |  |  |   | 4,613 | 
|Consumer real estate       |  |                                   | 364   |  |                                    |   | 364   |                                 |  |   |                        |  |  |                  | 364   |  |                           |   |    |  |  |   | 392   | 
|                           |  |                                   |       |  |                                    |   |       |                                 |  |   |                         |  |  |                  |       |  |                           |   |     |  |  |   |       | 
|Total                      |  | $                                 | 4,565 |  |                                    | $ | 2,119 |                                 |  | $ | 2,446                   |  |  | $                | 4,565 |  |                           | $ | 256 |  |  | $ | 5,062 | 
|                           |  |                                   |       |  |                                    |   |       |                                 |  |   |                         |  |  |                  |       |  |                           |   |     |  |  |   |       | 

NOTE 4 - ALLOWANCE FOR LOAN LOSSES

Activity in the allowance for loan losses is summarized as follows:



|                                       |  |               |           |  |                  |   |           | 
|-------------------------------------- |  | ------------- | --------- |  | ---------------- | - | --------- | 
|                                       |  | March 31,2011 |           |  | December 31,2010 |  
|Balance at beginning of year           |  | $             | 2,059,025 |  |                  | $ | 1,894,361 | 
|Additions charged to operating expense |  |               | 30,000    |  |                  |   | 220,000   | 
|Recoveries                             |  |               | 32,120    |  |                  |   | 10,108    | 
|                                       |  |               |           |  |                  |   |           | 
|Total                                  |  |               | 2,121,145 |  |                  |   | 2,124,469 | 
|Less loans charged-off                 |  |               | 120,495   |  |                  |   | 65,444    | 
|                                       |  |               |           |  |                  |   |           | 
|Balance at end of period               |  | $             | 2,000,650 |  |                  | $ | 2,059,025 | 
|                                       |  |               |           |  |                  |   |           | 



PAGE 18



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##### Table of Contents

First West Virginia Bancorp, Inc.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2011 AND 2010

(Unaudited)



NOTE 4 - ALLOWANCE FOR LOAN LOSSES (CONTINUED)



The following table summarizes the primary segments of the ALL, segregated into the amount for loans
individually evaluated for impairment by class of loans as of March 31, 2011 and December 31, 2010 (in thousands):



|                                            |  |                     |     |   |                       |   |       |                     |  |   |          |   |  |       |     |   |  |   |       |  
|------------------------------------------- |  | ------------------- | --- | - | --------------------- | - | ----- | ------------------- |  | - | -------- | - |  | ----- | --- | - |  | - | ----- | -
|March 31, 2011                              |  | Commercialand other |     |   | Commercial RealEstate |   |       | Consumer RealEstate |  |   | Consumer |   |  | Total |    
|Allowance for Loan Losses:                  |  |                     |     |   |                       |   |       |                     |  |   |          |   |  |       |     |   |  |   |       |  
|Beginning Balance                           |  | $                   | 212 |   |                       | $ | 1,511 |                     |  | $ | 272      |   |  | $     | 64  |   |  | $ | 2,059 |  
|Charge-offs                                 |  |                     |    |   |                       |   | (118  | )                   |  |   |         |   |  |       | (3  | ) |  |   | (121  | )
|Recoveries                                  |  |                     |    |   |                       |   | 30    |                     |  |   |         |   |  |       | 2   |   |  |   | 32    |  
|Provision                                   |  |                     | (4  | ) |                       |   | 50    |                     |  |   | (8       | ) |  |       | (8  | ) |  |   | 30    |  
|                                            |  |                     |     |   |                       |   |       |                     |  |   |          |   |  |       |     |   |  |   |       |  
|Ending Balance                              |  | $                   | 208 |   |                       | $ | 1473  |                     |  | $ | 264      |   |  | $     | 55  |   |  | $ | 2000  |  
|                                            |  |                     |     |   |                       |   |       |                     |  |   |          |   |  |       |     |   |  |   |       |  
|Loans individually evaluated for impairment |  | $                   |    |   |                       | $ | 219   |                     |  | $ |         |   |  | $     |    |   |  | $ | 219   |  
|Loans collectively evaluated for impairment |  |                     | 208 |   |                       |   | 1,254 |                     |  |   | 264      |   |  |       | 55  |   |  |   | 1,781 |  
|                                            |  |                     |     |   |                       |   |       |                     |  |   |          |   |  |       |     |   |  |   |       |  
|Ending Balance                              |  | $                   | 208 |   |                       | $ | 1,473 |                     |  | $ | 264      |   |  | $     | 55  |   |  | $ | 2,000 |  
|                                            |  |                     |     |   |                       |   |       |                     |  |   |          |   |  |       |     |   |  |   |       |  
|                                            |  |                     |     |   |                      
|December 31, 2010                           |  | Commercialand other |     |   | Commercial RealEstate |   |       | Consumer RealEstate |  |   | Consumer |   |  | Total |    
|Allowance for Loan Losses:                  |  |                     |     |   |                       |   |       |                     |  |   |          |   |  |       |     |   |  |   |       |  
|Beginning Balance                           |  | $                   | 203 |   |                       | $ | 1,345 |                     |  | $ | 267      |   |  | $     | 79  |   |  | $ | 1,894 |  
|Charge-offs                                 |  |                     | (14 | ) |                       |   |      |                     |  |   |         |   |  |       | (51 | ) |  |   | (65   | )
|Recoveries                                  |  |                     |    |   |                       |   |      |                     |  |   |         |   |  |       | 10  |   |  |   | 10    |  
|Provision                                   |  |                     | 23  |   |                       |   | 166   |                     |  |   | 5        |   |  |       | 26  |   |  |   | 220   |  
|                                            |  |                     |     |   |                       |   |       |                     |  |   |          |   |  |       |     |   |  |   |       |  
|Ending Balance                              |  | $                   | 212 |   |                       | $ | 1,511 |                     |  | $ | 272      |   |  | $     | 64  |   |  | $ | 2,059 |  
|                                            |  |                     |     |   |                       |   |       |                     |  |   |          |   |  |       |     |   |  |   |       |  
|Loans individually evaluated for impairment |  | $                   |    |   |                       | $ | 256   |                     |  | $ |         |   |  | $     |    |   |  | $ | 256   |  
|Loans collectively evaluated for impairment |  |                     | 212 |   |                       |   | 1,255 |                     |  |   | 272      |   |  |       | 64  |   |  |   | 1,803 |  
|                                            |  |                     |     |   |                       |   |       |                     |  |   |          |   |  |       |     |   |  |   |       |  
|Ending Balance                              |  | $                   | 212 |   |                       | $ | 1,511 |                     |  | $ | 272      |   |  | $     | 64  |   |  | $ | 2,059 |  
|                                            |  |                     |     |   |                       |   |       |                     |  |   |          |   |  |       |     |   |  |   |       |  

The following table presents loans individually evaluated for impairment by class of loans as of March 31, 2011 and
December 31, 2010 (in thousands):



|                             |  |                     |        |  |                       |   |        |                     |  |   |          |  |  |                   |        |  |       |   |      |   |  |   |         | 
|---------------------------- |  | ------------------- | ------ |  | --------------------- | - | ------ | ------------------- |  | - | -------- |  |  | ----------------- | ------ |  | ----- | - | ---- | - |  | - | ------- | 
|March 31, 2011               |  | Commercialand Other |        |  | CommercialReal Estate |   |        | ConsumerReal Estate |  |   | Consumer |  |  | UnearnedDiscounts |        |  | Total |  
|Loans individually evaluated |  | $                   |       |  |                       | $ | 2,437  |                     |  | $ |         |  |  | $                 |       |  |       | $ |     |   |  | $ | 2,437   | 
|Loans collectively evaluated |  |                     | 19,518 |  |                       |   | 53,729 |                     |  |   | 32,617   |  |  |                   | 9,173  |  |       |   | (150 | ) |  |   | 114,887 | 
|                             |  |                     |        |  |                       |   |        |                     |  |   |          |  |  |                   |        |  |       |   |      |   |  |   |         | 
|Ending Balance               |  | $                   | 19,518 |  |                       | $ | 56,166 |                     |  | $ | 32,617   |  |  | $                 | 9,173  |  |       | $ | (150 | ) |  | $ | 117,324 | 
|                             |  |                     |        |  |                       |   |        |                     |  |   |          |  |  |                   |        |  |       |   |      |   |  |   |         | 
|                             |  |                     |        |  |                       |  
|December 31, 2010            |  |                     |        |  |                       |   |        |                     |  |   |          |  |  |                   |        |  |       |  
|Loans individually evaluated |  | $                   |       |  |                       | $ | 2,446  |                     |  | $ |         |  |  | $                 |       |  |       | $ |     |   |  | $ | 2,446   | 
|Loans collectively evaluated |  | $                   | 20,532 |  |                       |   | 54,207 |                     |  |   | 34,066   |  |  |                   | 10,269 |  |       |   | (153 | ) |  |   | 118,921 | 
|                             |  |                     |        |  |                       |   |        |                     |  |   |          |  |  |                   |        |  |       |   |      |   |  |   |         | 
|Ending Balance               |  |                     | 20,532 |  |                       | $ | 56,653 |                     |  | $ | 34,066   |  |  | $                 | 10,269 |  |       | $ | (153 | ) |  | $ | 121,367 | 
|                             |  |                     |        |  |                       |   |        |                     |  |   |          |  |  |                   |        |  |       |   |      |   |  |   |         | 



PAGE 19



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##### Table of Contents

First West Virginia Bancorp, Inc.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2011 AND 2010

(Unaudited)



NOTE 5 - DEPOSITS

The composition of the Banks deposits at March 31, 2011 and December 31, 2010 follows:



|                                                                                    |  |                          |        |  |                 |   |        |         |  |   |        |  |  |   |        | 
|----------------------------------------------------------------------------------- |  | ------------------------ | ------ |  | --------------- | - | ------ | ------- |  | - | ------ |  |  | - | ------ | 
|                                                                                    |  | (Expressed in Thousands) |       
|                                                                                    |  | March 31, 2011           |       
|                                                                                    |  | Demand                   |        |  |                 |   |        |         | 
|                                                                                    |  | NoninterestBearing       |        |  | InterestBearing |   |        | Savings |  |   | Time   | 
|Individuals, partnerships and corporations (includes certified and official checks) |  | $                        | 28,250 |  |                 | $ | 38,097 |         |  | $ | 78,158 |  |  | $ | 73,704 | 
|United States Government                                                            |  |                          |       |  |                 |   |       |         |  |   |       |  |  |   |       | 
|States and political subdivisions                                                   |  |                          | 445    |  |                 |   | 6,648  |         |  |   | 4,670  |  |  |   | 3,265  | 
|Commercial banks and other depository institutions                                  |  |                          | 28     |  |                 |   |       |         |  |   | 261    |  |  |   | 590    | 
|                                                                                    |  |                          |        |  |                 |   |        |         |  |   |        |  |  |   |        | 
|Total                                                                               |  | $                        | 28,723 |  |                 | $ | 44,745 |         |  | $ | 83,089 |  |  | $ | 77,559 | 
|                                                                                    |  |                          |        |  |                 |   |        |         |  |   |        |  |  |   |        | 
|                                                                                    | 
|                                                                                    |  | (Expressed in Thousands) |       
|                                                                                    |  | December 31, 2010        |       
|                                                                                    |  | Demand                   |        |  |                 |   |        |         | 
|                                                                                    |  | NoninterestBearing       |        |  | InterestBearing |   |        | Savings |  |   | Time   | 
|Individuals, partnerships and corporations (includes certified and official checks) |  | $                        | 27,598 |  |                 | $ | 36,814 |         |  | $ | 73,873 |  |  | $ | 75,527 | 
|United States Government                                                            |  |                          | 12     |  |                 |   |       |         |  |   |       |  |  |   |       | 
|States and political subdivisions                                                   |  |                          | 682    |  |                 |   | 5,299  |         |  |   | 4,583  |  |  |   | 3,248  | 
|Commercial banks and other depository institutions                                  |  |                          | 27     |  |                 |   |       |         |  |   | 222    |  |  |   | 590    | 
|                                                                                    |  |                          |        |  |                 |   |        |         |  |   |        |  |  |   |        | 
|Total                                                                               |  | $                        | 28,319 |  |                 | $ | 42,113 |         |  | $ | 78,678 |  |  | $ | 79,365 | 
|                                                                                    |  |                          |        |  |                 |   |        |         |  |   |        |  |  |   |        | 

A maturity distribution of time certificates of deposit at March 31, 2011 and December 31, 2010, follows:



|                           |                |                             |        |                   |  |   |        | 
|-------------------------- | -------------- | --------------------------- | ------ | ----------------- |  | - | ------ | 
|(dollars in thousands)     |                | Maturities of Time Deposits |       
|                           | March 31, 2011 |                             |        | December 31, 2010 | 
|Due in 2011                |                | $                           | 29,745 |                   |  | $ | 42,104 | 
|Due in 2012                |                |                             | 27,578 |                   |  |   | 19,751 | 
|Due in 2013                |                |                             | 5,874  |                   |  |   | 5,365  | 
|Due in 2014                |                |                             | 5,682  |                   |  |   | 5,389  | 
|Due in 2015                |                |                             | 6,715  |                   |  |   | 6,749  | 
|Due in 2016 and thereafter |                |                             | 1,965  |                   |  |   | 7      | 
|                           |                |                             |        |                   |  |   |        | 
|Total                      |                | $                           | 77,559 |                   |  | $ | 79,365 | 
|                           |                |                             |        |                   |  |   |        | 

Time deposits include certificates of deposit issued in denominations of $100,000 or more which amounted to $23,232,000 and
$23,351,000 at March 31, 2011 and December 31, 2010, respectively. Interest expense on certificates of deposit of $100,000 or more was $121,100 and $171,217 for the three months ended March 31, 2011 and 2010, respectively.

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.



|                                     |  |                                                   |        |  |                   |   |        | 
|------------------------------------ |  | ------------------------------------------------- | ------ |  | ----------------- | - | ------ | 
|                                     |  | Maturities of Time Deposits in Excess of $100,000 |       
|(dollars in thousands)               |  | March 31, 2011                                    |        |  | December 31, 2010 |  
|Three Months or Less                 |  | $                                                 | 2,941  |  |                   | $ | 4,217  | 
|Over Three and Less than Six Months  |  |                                                   | 3,425  |  |                   |   | 2,842  | 
|Over Six and Less than Twelve Months |  |                                                   | 6,999  |  |                   |   | 5,798  | 
|Over Twelve Months                   |  |                                                   | 9,867  |  |                   |   | 10,494 | 
|                                     |  |                                                   |        |  |                   |   |        | 
|Total                                |  | $                                                 | 23,232 |  |                   | $ | 23,351 | 
|                                     |  |                                                   |        |  |                   |   |        | 



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##### Table of Contents

First West Virginia Bancorp, Inc.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2011 AND 2010

(Unaudited)



NOTE 6 - 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, 2011 was approximately $43.1 million subject to the
purchase of additional FHLB stock. The subsidiary bank had FHLB borrowings of $3,755,309 and $3,775,583 at March 31, 2011 and December 31, 2010, respectively. At March 31, 2011 the subsidiary bank had three fixed rate amortizing
advances which totaled $3,755,309 with a weighted average interest rate of 4.78% of which $2,139,348 will mature in 2018 and $1,615,961 will mature in 2023.

The subsidiary bank also has a one year line of credit agreement with the Federal Home Loan Bank (FHLB). The maximum credit available under this agreement is $7.0 million and expires December
2011. There were no borrowings outstanding under this agreement at March 31, 2011 and December 31, 2010, respectively.

Contractual
maturities of FHLB borrowings as of March 31, 2011 were as follows:



|                  |  |   |           | 
|----------------- |  | - | --------- | 
|December 31, 2011 |  | $ | 62,296    | 
|December 31, 2012 |  |   | 86,602    | 
|December 31, 2013 |  |   | 90,832    | 
|December 31, 2014 |  |   | 95,267    | 
|December 31, 2015 |  |   | 99,919    | 
|Thereafter        |  |   | 3,320,393 | 
|                  |  |   |           | 
|                  |  | $ | 3,755,309 | 
|                  |  |   |           | 

NOTE 7 - REGULATORY MATTERS

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, 2011, the most recent notifications from the Office of the Comptroller
of the Currency categorized the bank as well 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 of the Company and its subsidiary bank, along with the regulatory framework for adequately capitalized and well capitalized institutions are depicted as set forth in the following table:



|                                          |        |        |        |       |                              |  |        |                                                               |  |       |        |  |        |  |     |       |  |   |        |  |  |  |      |  
|----------------------------------------- | ------ | ------ | ------ | ----- | ---------------------------- |  | ------ | ------------------------------------------------------------- |  | ----- | ------ |  | ------ |  | --- | ----- |  | - | ------ |  |  |  | ---- | -
|(Amounts Expressed in Thousands)          |        | Actual |        |       | For CapitalAdequacy Purposes |  |        | To be WellCapitalized
UnderPrompt CorrectiveAction Provisions | 
|                                          | Amount |        |        | Ratio |                              |  | Amount |                                                               |  | Ratio |        |  | Amount |  |     | Ratio | 
|First West Virginia Bancorp, Inc.         |        |        |        |       |                              |  |        |                                                               |  |       |        |  |        |  |     |       |  |   |        |  |  |  |      |  
|As of March 31, 2011                      |        |        |        |       |                              |  |        |                                                               |  |       |        |  |        |  |     |       |  |   |        |  |  |  |      |  
|Total Capital (to Risk Weighted Assets)   |        | $      | 30,588 |       |                              |  | 20.24  | %                                                             |  | $     | 12,093 |  |        |  | 8.0 | %     |  | $ | 15,116 |  |  |  | 10.0 | %
|Tier I Capital (to Risk Weighted Assets)  |        |        | 28,701 |       |                              |  | 18.99  | %                                                             |  |       | 6,047  |  |        |  | 4.0 | %     |  |   | 9,070  |  |  |  | 6.0  | %
|Tier I Capital (to Adjusted Total Assets) |        |        | 28,701 |       |                              |  | 10.32  | %                                                             |  |       | 11,121 |  |        |  | 4.0 | %     |  |   | 13,901 |  |  |  | 5.0  | %
|As of December 31, 2010                   |        |        |        |       |                              |  |        |                                                               |  |       |        |  |        |  |     |       |  |   |        |  |  |  |      |  
|Total Capital (to Risk Weighted Assets)   |        | $      | 30,377 |       |                              |  | 19.78  | %                                                             |  | $     | 12,289 |  |        |  | 8.0 | %     |  | $ | 15,361 |  |  |  | 10.0 | %
|Tier I Capital (to Risk Weighted Assets)  |        |        | 28,462 |       |                              |  | 18.53  | %                                                             |  |       | 6,144  |  |        |  | 4.0 | %     |  |   | 9,217  |  |  |  | 6.0  | %
|Tier I Capital (to Adjusted Total Assets) |        |        | 28,462 |       |                              |  | 10.31  | %                                                             |  |       | 11,045 |  |        |  | 4.0 | %     |  |   | 13,806 |  |  |  | 5.0  | %
|Progressive Bank, N.A.                    |        |        |        |       |                              |  |        |                                                               |  |       |        |  |        |  |     |       |  |   |        |  |  |  |      |  
|As of March 31, 2011                      |        |        |        |       |                              |  |        |                                                               |  |       |        |  |        |  |     |       |  |   |        |  |  |  |      |  
|Total Capital (to Risk Weighted Assets)   |        | $      | 30,339 |       |                              |  | 20.11  | %                                                             |  | $     | 12,066 |  |        |  | 8.0 | %     |  | $ | 15,083 |  |  |  | 10.0 | %
|Tier I Capital (to Risk Weighted Assets)  |        |        | 28,452 |       |                              |  | 18.86  | %                                                             |  |       | 6,033  |  |        |  | 4.0 | %     |  |   | 9,050  |  |  |  | 6.0  | %
|Tier I Capital (to Adjusted Total Assets) |        |        | 28,452 |       |                              |  | 10.25  | %                                                             |  |       | 11,107 |  |        |  | 4.0 | %     |  |   | 13,884 |  |  |  | 5.0  | %
|As of December 31, 2010                   |        |        |        |       |                              |  |        |                                                               |  |       |        |  |        |  |     |       |  |   |        |  |  |  |      |  
|Total Capital (to Risk Weighted Assets)   |        | $      | 30,121 |       |                              |  | 19.68  | %                                                             |  | $     | 12,241 |  |        |  | 8.0 | %     |  | $ | 15,302 |  |  |  | 10.0 | %
|Tier I Capital (to Risk Weighted Assets)  |        |        | 28,206 |       |                              |  | 18.43  | %                                                             |  |       | 6,121  |  |        |  | 4.0 | %     |  |   | 9,181  |  |  |  | 6.0  | %
|Tier I Capital (to Adjusted Total Assets) |        |        | 28,206 |       |                              |  | 10.23  | %                                                             |  |       | 11,032 |  |        |  | 4.0 | %     |  |   | 13,789 |  |  |  | 5.0  | %



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##### Table of Contents

First West Virginia Bancorp, Inc.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2011 AND 2010

(Unaudited)



NOTE 8 - FAIR VALUE MEASUREMENTS

The following disclosures show the hierarchal disclosure framework associated with the level of pricing observations utilized in measuring assets and liabilities at fair value. The three broad levels
defined by U.S. generally accepted accounting principles are as follows:



| |  |  | Level I: Quoted prices are available in active markets for identical assets or liabilities as of the reported date.
| | - |  | -------------------------------------------------------------------------------------------------------------------



| |  |  | Level II: Pricing inputs are other than the quoted prices in active markets, which are either directly or indirectly observable as of the reported
date. The nature of these assets and liabilities includes items for which quoted prices are available but traded less frequently and items that are fair-valued using other financial instruments, the parameters of which can be directly observed.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Level III: Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. This
hierarchy requires the use of observable market data when available.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The following table presents the assets reported on
the balance sheet at their fair value as of March 31, 2011 and December 31, 2010, by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is
significant to the fair value measurement.



|                                         |         |                   |     |          |  |   |           |  |  |       |   |  |  |   |         | 
|---------------------------------------- | ------- | ----------------- | --- | -------- |  | - | --------- |  |  | ----- | - |  |  | - | ------- | 
|(dollars in thousands)                   |         | March 31, 2011    |    
|                                         | Level I |                   |     | Level II |  |   | Level III |  |  | Total |  
|Assets:                                  |         |                   |     |          |  |   |           |  |  |       |   |  |  |   |         | 
|Assets measured on a recurring basis:    |         |                   |     |          |  |   |           |  |  |       |   |  |  |   |         | 
|Securities available for sale            |         | $                 | 248 |          |  | $ | 138,575   |  |  | $     |  |  |  | $ | 138,823 | 
|Assets measured on a nonrecurring basis: |         |                   |     |          |  |   |           |  |  |       |   |  |  |   |         | 
|Impaired loans                           |         | $                 |    |          |  | $ | 4,543     |  |  | $     |  |  |  | $ | 4,543   | 
|                                         |        
|(dollars in thousands)                   |         | December 31, 2010 |    
|                                         | Level I |                   |     | Level II |  |   | Level III |  |  | Total |  
|Assets:                                  |         |                   |     |          |  |   |           |  |  |       |   |  |  |   |         | 
|Assets measured on a recurring basis:    |         |                   |     |          |  |   |           |  |  |       |   |  |  |   |         | 
|Securities available for sale            |         | $                 | 248 |          |  | $ | 132,921   |  |  | $     |  |  |  | $ | 133,169 | 
|Assets measured on a nonrecurring basis: |         |                   |     |          |  |   |           |  |  |       |   |  |  |   |         | 
|Impaired loans                           |         | $                 |    |          |  | $ | 4,903     |  |  | $     |  |  |  | $ | 4,903   | 

NOTE 9 - DISCLOSURES ABOUT
FAIR VALUE OF FINANCIAL INSTRUMENTS

The reported fair values of financial instruments are based on a variety of factors. Where possible,
fair values represent quoted market prices for identical or comparable instruments. In other cases, fair values have been estimated based on assumptions concerning the amount and timing of estimated future cash flows and assumed discount rates
reflecting varying degrees of risk. Intangible values assigned to customer relationships are not reflected in the reported fair values. Accordingly, the fair values may not represent actual values of the financial instruments that could have been
realized as of year end or that will be realized in the future.

The following methods and assumptions were used by the Company in estimating
the fair value disclosures for financial instruments:

Cash and Cash Equivalents: The carrying amount for cash and cash equivalents is
a reasonable estimate of fair value.

Investment Securities: Fair values for investment securities are based on quoted market prices,
where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments.

Loans: The fair value for net loans is estimated by discounting future cash flows using current market inputs at which loans with similar terms
and qualities would be made to borrowers of similar credit quality. Where quoted market prices were available, primarily for certain residential mortgage loans, such market rates were utilized as estimates for fair value.

Bank Owned Life Insurance: The carrying amount of bank owned life insurance represents the cash surrender value of the underlying insurance
policies, if such policies were terminated. Management believes that the carrying amount approximates the fair value.

Accrued interest
receivable: The carrying amount of accrued interest receivable approximates its fair value.



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##### Table of Contents

First West Virginia Bancorp, Inc.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2011 AND 2010

(Unaudited)



NOTE 9 - DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED)



Deposits: Noninterest bearing and interest bearing demand deposits and savings deposits are
valued at the amount payable on demand as of year end. The fair values for time deposits are based on discounted value of cash flows. The discount rates are estimated using rates currently offered for similar instruments with similar remaining
maturities.

Federal Funds Purchased and Repurchase Agreements: The carrying amount for federal funds purchased and repurchase
agreements are considered to be a reasonable estimate of fair value.

Federal Home Loan Bank and other long term borrowings: The fair
value of FHLB and other long term borrowings is based on the interest rates currently charged for borrowings with similar terms and maturities.

Accrued Interest Payable: The carrying amount of accrued interest payable approximates it fair value.

Off-Balance-Sheet Instruments: The fair value of commitments is estimated using the fees currently charged to enter into similar agreements,
taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. The amount of fees currently charged on commitments is determined to be insignificant and, therefore, the carrying value and fair value
of off-balance-sheet instruments are not shown.

The estimates of fair values of financial instruments are summarized as follows at
March 31, 2011 and December 31, 2010:



|                                                  |  |                |         |  |                   |   |         |                |  |   |           |  |  |   |         | 
|------------------------------------------------- |  | -------------- | ------- |  | ----------------- | - | ------- | -------------- |  | - | --------- |  |  | - | ------- | 
|                                                  |  | March 31, 2011 |         |  | December 31, 2010 |  
|(Amounts Expressed in Thousands)                  |  | CarryingAmount |         |  | FairValue         |   |         | CarryingAmount |  |   | FairValue | 
|Financial assets:                                 |  |                |         |  |                   |   |         |                |  |   |           |  |  |   |         | 
|Cash and cash equivalents                         |  | $              | 14,197  |  |                   | $ | 14,197  |                |  | $ | 9,933     |  |  | $ | 9,933   | 
|Investment securities                             |  |                | 138,823 |  |                   |   | 138,823 |                |  |   | 133,169   |  |  |   | 133,169 | 
|Loans                                             |  |                | 115,324 |  |                   |   | 115,641 |                |  |   | 119,308   |  |  |   | 120,493 | 
|Bank owned life insurance                         |  |                | 3,441   |  |                   |   | 3,441   |                |  |   | 3,415     |  |  |   | 3,415   | 
|Accrued interest receivable                       |  |                | 1,270   |  |                   |   | 1,270   |                |  |   | 1,095     |  |  |   | 1,095   | 
|Financial liabilities:                            |  |                |         |  |                   |   |         |                |  |   |           |  |  |   |         | 
|Deposits                                          |  |                | 234,116 |  |                   |   | 212,320 |                |  |   | 228,475   |  |  |   | 208,813 | 
|Federal funds purchased and repurchase agreements |  |                | 13,898  |  |                   |   | 13,898  |                |  |   | 13,477    |  |  |   | 13,477  | 
|FHLB and other long term borrowings               |  |                | 3,755   |  |                   |   | 3,755   |                |  |   | 3,776     |  |  |   | 3,776   | 
|Accrued interest payable                          |  |                | 247     |  |                   |   | 247     |                |  |   | 277       |  |  |   | 277     | 



PAGE 23



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##### Table of Contents

|Item 2. | Managements Discussion and Analysis of Results of Operations and Financial Condition
|------- | -------------------------------------------------------------------------------------

SELECTED FINANCIAL DATA(Dollars in thousands, except per share data)







|                                                  |  |                             |         |   |                          |   |         |      |  |   |         |   |  |      |         |   |      |   |         |   |  |   |         |  
|------------------------------------------------- |  | --------------------------- | ------- | - | ------------------------ | - | ------- | ---- |  | - | ------- | - |  | ---- | ------- | - | ---- | - | ------- | - |  | - | ------- | -
|                                                  |  | (Unaudited)                 |         |   |                          |   |         |      |  |   |         |   |  |      |        
|                                                  |  | Three Months EndedMarch 31, |         |   | Years ended December 31, |  
|                                                  |  | 2011                        |         |   | 2010                     |   |         | 2010 |  |   | 2009    |   |  | 2008 |         |   | 2007 |  
|SUMMARY OF OPERATIONS                             |  |                             |         |   |                          |   |         |      |  |   |         |   |  |      |         |   |      |   |         |   |  |   |         |  
|Total interest income                             |  | $                           | 2,862   |   |                          | $ | 2,997   |      |  | $ | 11,858  |   |  | $    | 12,914  |   |      | $ | 13,514  |   |  | $ | 13,708  |  
|Total interest expense                            |  |                             | 603     |   |                          |   | 871     |      |  |   | 3,056   |   |  |      | 4,328   |   |      |   | 5,275   |   |  |   | 5,431   |  
|Net interest income                               |  |                             | 2,259   |   |                          |   | 2,126   |      |  |   | 8,802   |   |  |      | 8,586   |   |      |   | 8,239   |   |  |   | 8,277   |  
|Provision for loan losses                         |  |                             | 30      |   |                          |   | 30      |      |  |   | 220     |   |  |      | 184     |   |      |   |        |   |  |   | (100    | )
|Total other income                                |  |                             | 287     |   |                          |   | 295     |      |  |   | 1,977   |   |  |      | 1,791   |   |      |   | 1,488   |   |  |   | 1,410   |  
|Total other expenses                              |  |                             | 1,904   |   |                          |   | 1,897   |      |  |   | 7,723   |   |  |      | 7,592   |   |      |   | 7,009   |   |  |   | 7,272   |  
|Income before income taxes                        |  |                             | 612     |   |                          |   | 494     |      |  |   | 2,836   |   |  |      | 2,601   |   |      |   | 2,718   |   |  |   | 2,515   |  
|Net income                                        |  |                             | 550     |   |                          |   | 461     |      |  |   | 2,339   |   |  |      | 2,305   |   |      |   | 2,206   |   |  |   | 2,036   |  
|PER SHARE DATA (1)                                |  |                             |         |   |                          |   |         |      |  |   |         |   |  |      |         |   |      |   |         |   |  |   |         |  
|Net income                                        |  | $                           | 0.33    |   |                          | $ | 0.28    |      |  | $ | 1.42    |   |  | $    | 1.39    |   |      | $ | 1.33    |   |  | $ | 1.23    |  
|Cash dividends declared                           |  |                             | 0.19    |   |                          |   | 0.18    |      |  |   | 0.73    |   |  |      | 0.73    |   |      |   | 0.71    |   |  |   | 0.70    |  
|Book value per share                              |  |                             | 19.08   |   |                          |   | 18.89   |      |  |   | 18.82   |   |  |      | 18.64   |   |      |   | 17.39   |   |  |   | 16.47   |  
|AVERAGE BALANCE SHEET SUMMARY                     |  |                             |         |   |                          |   |         |      |  |   |         |   |  |      |         |   |      |   |         |   |  |   |         |  
|Total loans, net                                  |  | $                           | 119,581 |   |                          | $ | 127,150 |      |  | $ | 124,074 |   |  | $    | 128,206 |   |      | $ | 120,722 |   |  | $ | 120,409 |  
|Investment securities                             |  |                             | 130,226 |   |                          |   | 112,034 |      |  |   | 116,990 |   |  |      | 112,142 |   |      |   | 108,114 |   |  |   | 109,278 |  
|Deposits - interest bearing                       |  |                             | 203,493 |   |                          |   | 194,223 |      |  |   | 198,042 |   |  |      | 190,981 |   |      |   | 182,450 |   |  |   | 182,682 |  
|Stockholders equity                              |  |                             | 30,088  |   |                          |   | 28,940  |      |  |   | 29,415  |   |  |      | 28,192  |   |      |   | 27,295  |   |  |   | 26,223  |  
|Total assets                                      |  |                             | 279,665 |   |                          |   | 268,494 |      |  |   | 273,778 |   |  |      | 266,414 |   |      |   | 258,275 |   |  |   | 253,930 |  
|BALANCE SHEET                                     |  |                             |         |   |                          |   |         |      |  |   |         |   |  |      |         |   |      |   |         |   |  |   |         |  
|Investments                                       |  | $                           | 138,823 |   |                          | $ | 126,094 |      |  | $ | 133,169 |   |  | $    | 115,997 |   |      | $ | 112,366 |   |  | $ | 106,647 |  
|Loans                                             |  |                             | 117,324 |   |                          |   | 126,266 |      |  |   | 121,367 |   |  |      | 128,581 |   |      |   | 124,635 |   |  |   | 121,739 |  
|Allowance for loan losses                         |  |                             | (2,000  | ) |                          |   | (1,906  | )    |  |   | (2,059  | ) |  |      | (1,894  | ) |      |   | (1,923  | ) |  |   | (2,043  | )
|Other assets                                      |  |                             | 29,756  |   |                          |   | 32,825  |      |  |   | 25,482  |   |  |      | 28,447  |   |      |   | 23,086  |   |  |   | 26,844  |  
|                                                  |  |                             |         |   |                          |   |         |      |  |   |         |   |  |      |         |   |      |   |         |   |  |   |         |  
|Total Assets                                      |  | $                           | 283,903 |   |                          | $ | 283,279 |      |  | $ | 277,959 |   |  | $    | 271,131 |   |      | $ | 258,164 |   |  | $ | 253,187 |  
|                                                  |  |                             |         |   |                          |   |         |      |  |   |         |   |  |      |         |   |      |   |         |   |  |   |         |  
|Deposits                                          |  | $                           | 234,116 |   |                          | $ | 222,753 |      |  | $ | 228,475 |   |  | $    | 221,246 |   |      | $ | 206,385 |   |  | $ | 203,127 |  
|Federal funds purchased and repurchase agreements |  |                             | 13,898  |   |                          |   | 13,182  |      |  |   | 13,477  |   |  |      | 11,025  |   |      |   | 11,013  |   |  |   | 12,196  |  
|FHLB borrowings                                   |  |                             | 3,755   |   |                          |   | 7,335   |      |  |   | 3,776   |   |  |      | 7,354   |   |      |   | 10,929  |   |  |   | 9,298   |  
|Other liabilities                                 |  |                             | 590     |   |                          |   | 8,788   |      |  |   | 1,130   |   |  |      | 700     |   |      |   | 1,100   |   |  |   | 1,351   |  
|Stockholders equity                              |  |                             | 31,544  |   |                          |   | 31,221  |      |  |   | 31,101  |   |  |      | 30,806  |   |      |   | 28,737  |   |  |   | 27,215  |  
|                                                  |  |                             |         |   |                          |   |         |      |  |   |         |   |  |      |         |   |      |   |         |   |  |   |         |  
|Total Liabilities and Stockholders equity        |  | $                           | 283,903 |   |                          | $ | 283,279 |      |  | $ | 277,959 |   |  | $    | 271,131 |   |      | $ | 258,164 |   |  | $ | 253,187 |  
|                                                  |  |                             |         |   |                          |   |         |      |  |   |         |   |  |      |         |   |      |   |         |   |  |   |         |  
|SELECTED RATIOS                                   |  |                             |         |   |                          |   |         |      |  |   |         |   |  |      |         |   |      |   |         |   |  |   |         |  
|Return on average assets                          |  |                             | 0.80    | % |                          |   | 0.70    | %    |  |   | 0.85    | % |  |      | 0.87    | % |      |   | 0.85    | % |  |   | 0.80    | %
|Return on average equity                          |  |                             | 7.41    | % |                          |   | 6.46    | %    |  |   | 7.95    | % |  |      | 8.18    | % |      |   | 8.08    | % |  |   | 7.76    | %
|Average equity to average assets                  |  |                             | 10.76   | % |                          |   | 10.78   | %    |  |   | 10.74   | % |  |      | 10.58   | % |      |   | 10.57   | % |  |   | 10.33   | %
|Dividend payout ratio (1)                         |  |                             | 57.58   | % |                          |   | 64.29   | %    |  |   | 51.41   | % |  |      | 52.52   | % |      |   | 53.38   | % |  |   | 56.91   | %
|Loan to Deposit ratio                             |  |                             | 50.11   | % |                          |   | 56.68   | %    |  |   | 53.12   | % |  |      | 58.12   | % |      |   | 60.39   | % |  |   | 59.93   | %



|(1) | Adjusted for the 4 percent common stock dividend to stockholders of record as of December 20, 2010 and the 4 percent common stock dividend to shareholders of
record on October 1, 2008.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



PAGE 24



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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



The following discussion and analysis provides further detail to the financial condition and results of
operations of the Company. The section should be read in conjunction with the notes and financial statements presented elsewhere in this report.

The Companys critical accounting policies involving the significant judgments and assumptions used in the preparation of the Consolidated Financial Statements as of March 31, 2011 have remained
unchanged from the disclosures presented in the Companys Annual Report on Form 10-K for the year ended December 31, 2010 under the section Managements Discussion and Analysis of Financial Condition and Results of
Operations.

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. Investors are cautioned that forward-looking statements, which are not historical fact, involve risks and uncertainties that could cause actual results to differ materially from those contemplated by such statements, including without
limitation, the effect of changing regional and national economic conditions; changes in interest rates, spreads on earning assets and interest-bearing liabilities, and associated interest rate sensitivity; sources of liquidity available to the
parent company and its related subsidiary operations; potential future credit losses and the credit risk of commercial, real estate, and consumer loan customers and their borrowing activities; actions of the Federal Reserve Board, Office of the
Comptroller of the Currency, Federal Deposit Insurance Corporation, the Securities and Exchange Commission, and other regulatory bodies; potential legislative and federal and state regulatory actions and reform; competitive conditions in the
financial services industry; rapidly changing technology affecting financial services, and/or other external developments materially impacting the Companys operational and financial performance. The Company does not assume any duty to update
forward-looking statements.

Critical Accounting Policies: The Companys accounting policies are integral to understanding the
results reported. The accounting policies are described in detail in Note 1 of the Consolidated Financial Statements. Our most complex accounting policies require managements judgment to ascertain the valuation of assets, liabilities,
commitments and contingencies. Detailed policies and control procedures have been established and are intended to ensure valuation methods are well controlled and applied consistently from period to period. In addition, the policies and procedures
are intended to ensure that the process for changing methodologies occurs in an appropriate manner. The following is a brief description of our current accounting policies involving significant management valuation judgments.

Other Than Temporary Impairment of Equity Securities: Equity securities are evaluated periodically to determine whether a decline
in their value is other than temporary. Management utilizes criteria such as the magnitude and duration of the decline, in addition to the reasons underlying the decline, to determine whether the loss in value is other than temporary. The term
other than temporary is not intended to indicate that the decline is permanent. It indicates that the prospects for a near term recovery of value are not necessarily favorable, or that there is a lack of evidence to support fair values
equal to, or greater than, the carrying value of the investment. Once a decline in value is determined to be other than temporary, the value of the security is reduced and a corresponding charge to earnings is recognized.

Allowance for Loan Losses: Arriving at an appropriate level of allowance for loan losses involves a high degree of judgment. The
Companys allowance for loan losses provides for probable losses based upon evaluations of known, and inherent risks in the loan portfolio. Management uses historical information to assess the adequacy of the allowance for loan losses as well
as the prevailing business environment; as it is affected by changing economic conditions and various external factors, which may impact the portfolio in ways currently unforeseen. The allowance is increased by provisions for loan losses and by
recoveries of loans previously charged-off and reduced by loans charged-off. For a full discussion of the Companys methodology of assessing the adequacy of the reserve for loan losses, refer to Note 1 of the Consolidated Financial Statements.

Goodwill and Other Intangible Assets: As discussed in Note 1 of the notes to the Consolidated Financial Statements,
the Company must assess goodwill and other intangible assets each year for impairment. This assessment involves estimating cash flows for future periods. If the future cash flows were less than the recorded goodwill and other intangible assets
balances, we would be required to take a charge against earnings to write down the assets to the lower value.

Deferred Tax
Assets: The Company uses an estimate of future earnings to support its position that the benefit of the deferred tax assets will be realized. If future income should prove non-existent or less than the amount of the deferred tax assets within
the tax years to which they may be applied, the asset may not be realized and our net income will be reduced. The deferred tax assets are described further in Note 1 of the Consolidated Financial Statements.

OVERVIEW

The Company reported net
income of $549,907 or $.33 per share for the three months ended March 31, 2011 compared to $460,651 or $.28 per share for the same period during 2010. The increase in net income for the three months ended March 31, 2011 as compared to the
same period in 2010 of $89,256 or 19.4% was primarily the result of increases in net interest income, offset in part by increases in noninterest expenses and income tax expense combined with the decrease in noninterest income. Net interest income
increased $133,231 or 6.3%, primarily due to the decrease in the interest expense paid on interest bearing liabilities combined with the increase in the interest earned on investment securities, offset in part by a decline in the interest and fees
earned on loans. Noninterest expenses increased $6,430 or .3% during the three month period ended March 31, 2011 as compared to the same period in 2010 primarily due to the increases in other operating expenses, as well as increases in salary
and employee benefits expense, offset in part by a decline in occupancy expenses. Noninterest income fell $8,407 or 2.9% primarily due to the decline in service charges and fees earned on deposit accounts, which was offset in part by increases in
other operating income and in the net change in the gains (losses) on sales of investment securities. Income tax expense increased during the first quarter of 2011 as compared to the same period in 2010 primarily due to the increase of
$118,394 in pre-taxable income. The ROA was .80% for the three months ended March 31, 2011 as compared to .70% for the same period of the prior year. For the three months ended March 31, 2011 compared to March 31, 2010, the ROE was
7.41% and 6.46%, respectively.

The sections that follow discuss in more detail the information contained in the summary of Selected Financial
Data of the Company.



PAGE 25



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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 - For the three months ended March 31, 2011

Net Interest Income

Net interest
income, which is the primary source of earnings for the Company, is the difference between interest earned on loans and investments and interest paid on deposits and other liabilities. 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 One presents the average balance sheets and an interest rate analysis for the three months ended March 31, 2011 and 2010 and the
year ended December 31, 2010.

For the three months ended March 31, 2011, net interest income increased $133,231 or 6.3%, from the
same period in 2010. The increase in net interest income was primarily due to the decrease in the interest paid on interest bearing liabilities combined with the increase in the interest earned on investment securities, offset in part by the decline
in the yield earned on loans. The changes in the volume and mix of earning assets and interest bearing liabilities combined with the changes in market rates of interest resulted in a taxable equivalent net yield on average earning assets of 4.00% at
March 31, 2011 as compared to 3.90% at December 31, 2010. The average volume of earning assets increased $6.9 million or 2.7% from December 31, 2010 to March 31, 2011.

Interest and fees on loans decreased $137,797 or 7.6%, from the same period in 2010 primarily due to the decline in the average loan volume combined with the decrease in the yield earned on loans. The
taxable equivalent yield on loans fell 4 basis points, to 6.04% at March 31, 2011 from 6.08% at December 31, 2010. The average balance on loans decreased $4.5 million or 3.6% since December 31, 2010. The decrease in loan volume was
primarily due to an decreased demand for commercial and commercial real estate loans, as well as consumer loans.

During the first quarter of
2011, interest income on investment securities increased $7,491 or .7% as compared to the same period of the prior year. The increase in interest income on investment securities was primarily due to the increase in the average volume, offset in part
by the decline in the yield earned on investment securities. The average volume of the investment portfolio increased approximately $13.2 million from December 31, 2010 to March 31, 2011. The taxable equivalent yield on investment
securities declined 27 basis points, to 4.35% at March 31, 2011 from 4.62% at December 31, 2010 and fell 56 basis points from March 31, 2010.

Interest expense decreased $268,764 or 30.9% during the three months ended March 31, 2011 as compared to the same period in 2010. The decrease in interest expense was primarily due to decreases in
the average yield paid on interest bearing liabilities which were offset in part by an increase in the average balances of interest bearing liabilities. The average yield on interest bearing liabilities fell 30 basis points, from 1.41% at
December 31, 2010 to 1.11% at March 31, 2011, while the average volume grew $3.6 million or 1.7% during this same period. The decline in the average yield on interest bearing liabilities was primarily due to the decline in the interest
rates on interest bearing deposits combined with a reduction in the average yield paid on repurchase agreements and other borrowings.

Noninterest Income

Noninterest
income decreased $8,407 or 2.9% for the three months ended March 31, 2011 as compared to same period of the prior year. The decrease in noninterest income was primarily due to the decline in service charges and other fee income, partially
offset by increases in other operating income and an increase in the net gains on sales of investment securities.

Service charges and other
fees represent the major component of noninterest income. These charges are earned from assessments made on checking and savings accounts. Service charges and other fee income fell $33,407 in the first three months of 2011 as compared to the same
period in 2010, down 22.9%, from 2010. Approximately $29,200 of the decrease related primarily to the decline in overdraft charges.

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, 2011, other operating income increased $24,828 or 16.7% compared to the same period in 2010.
The increase in other operating income during the three month period ended March 31, 2011 as compared to the same period in the prior year was primarily due to the increase in ATM fees, sales of checkbooks and in the income earned on loans sold
to the FHLB, offset in part by decreases in the earnings related to the cash surrender value of the bank owned life insurance on its key officers.

Noninterest Expense

Noninterest expense increased $6,430 or .3% for the three
months ended March 31, 2011 as compared to same period of the prior year. The increase in noninterest expense was primarily due to increases in other operating expenses and salary and employee benefits expenses, offset in part by the decrease
in occupancy expenses.

Other operating expense increased $13,144, or 2.2%, compared to the same period of the prior year. The increase in
other operating expenses was primarily due to a rise in service expenses, director fees, advertising expenses and regulatory assessments during the three month period ended March 31, 2011 as compared to the same period in 2010, offset in part
by decreases in office supplies and other taxes.



PAGE 26



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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 One 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, 2011 and 2010 and the year ended December 31, 2010. Average balance sheet information for the periods ended March 31, 2011 and
2010 and December 31, 2010 was compiled using the daily averages. 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, 2011 |         |   | December 31, 2010 |   |       | (Unaudited)March
31, 2010 | 
|                                                  |  | AverageVolume             |         |   | Interest          |   |       | AverageRate               |  |  | AverageVolume |   |  | Interest |         |   | AverageRate |   |        | AverageVolume |  |  | Interest |   |  | AverageRate |        
|ASSETS:                                           |  |                           |         |   |                   |   |       |                           |  |  |               |   |  |          |         |   |             |   |        |               |  |  |          |   |  |             |         |   |  |   |       |  |  |  |      |  
|Investment securities:                            |  |                           |         |   |                   |   |       |                           |  |  |               |   |  |          |         |   |             |   |        |               |  |  |          |   |  |             |         |   |  |   |       |  |  |  |      |  
|U.S. Treasury and U.S. Government agencies        |  | $                         | 36,075  |   |                   | $ | 259   |                           |  |  | 2.91          | % |  | $        | 30,220  |   |             | $ | 953    |               |  |  | 3.15     | % |  | $           | 26,354  |   |  | $ | 197   |  |  |  | 3.03 | %
|Mortgage backed securities                        |  |                           | 60,142  |   |                   |   | 557   |                           |  |  | 3.76          | % |  |          | 58,419  |   |             |   | 2,470  |               |  |  | 4.23     | % |  |             | 57,402  |   |  |   | 662   |  |  |  | 4.68 | %
|States and political subdivisions                 |  |                           | 33,824  |   |                   |   | 351   |                           |  |  | 4.21          | % |  |          | 28,116  |   |             |   | 1,199  |               |  |  | 4.26     | % |  |             | 28,037  |   |  |   | 300   |  |  |  | 4.34 | %
|Other securities                                  |  |                           | 185     |   |                   |   | 1     |                           |  |  | 2.19          | % |  |          | 235     |   |             |   | 4      |               |  |  | 1.70     | % |  |             | 241     |   |  |   | 1     |  |  |  | 1.68 | %
|                                                  |  |                           |         |   |                   |   |       |                           |  |  |               |   |  |          |         |   |             |   |        |               |  |  |          |   |  |             |         |   |  |   |       |  |  |  |      |  
|Total Investment securities:                      |  |                           | 130,226 |   |                   |   | 1,168 |                           |  |  | 3.64          | % |  |          | 116,990 |   |             |   | 4,626  |               |  |  | 3.95     | % |  |             | 112,034 |   |  |   | 1,160 |  |  |  | 4.20 | %
|Interest bearing deposits                         |  |                           | 10,687  |   |                   |   | 6     |                           |  |  | 0.23          | % |  |          | 12,416  |   |             |   | 35     |               |  |  | 0.28     | % |  |             | 10,121  |   |  |   | 11    |  |  |  | 0.44 | %
|Federal funds sold                                |  |                           |        |   |                   |   |      |                           |  |  | 0.00          | % |  |          | 58      |   |             |   |       |               |  |  | 0.00     | % |  |             | 236     |   |  |   |      |  |  |  | 0.00 | %
|Loans, net of unearned income                     |  |                           | 119,581 |   |                   |   | 1,684 |                           |  |  | 5.71          | % |  |          | 124,074 |   |             |   | 7,182  |               |  |  | 5.79     | % |  |             | 127,150 |   |  |   | 1,822 |  |  |  | 5.81 | %
|Other earning assets                              |  |                           | 1,407   |   |                   |   | 4     |                           |  |  | 1.15          | % |  |          | 1,481   |   |             |   | 15     |               |  |  | 1.01     | % |  |             | 1,492   |   |  |   | 4     |  |  |  | 1.09 | %
|                                                  |  |                           |         |   |                   |   |       |                           |  |  |               |   |  |          |         |   |             |   |        |               |  |  |          |   |  |             |         |   |  |   |       |  |  |  |      |  
|Total earning assets                              |  |                           | 261,901 |   |                   |   | 2,862 |                           |  |  | 4.43          | % |  |          | 255,019 |   |             |   | 11,858 |               |  |  | 4.65     | % |  |             | 251,033 |   |  |   | 2,997 |  |  |  | 4.84 | %
|Other assets                                      |  |                           | 19,774  |   |                   |   |       |                           |  |  |               |   |  |          | 20,818  |   |             |   |        |               |  |  |          |   |  |             | 19,369  |   |  |   |       |  |  |  |      |  
|Allowance for loan losses                         |  |                           | (2,010  | ) |                   |   |       |                           |  |  |               |   |  |          | (2,059  | ) |             |   |        |               |  |  |          |   |  |             | (1,908  | ) |  |   |       |  |  |  |      |  
|                                                  |  |                           |         |   |                   |   |       |                           |  |  |               |   |  |          |         |   |             |   |        |               |  |  |          |   |  |             |         |   |  |   |       |  |  |  |      |  
|Total Assets                                      |  | $                         | 279,665 |   |                   |   |       |                           |  |  |               |   |  | $        | 273,778 |   |             |   |        |               |  |  |          |   |  | $           | 268,494 |   |  |   |       |  |  |  |      |  
|                                                  |  |                           |         |   |                   |   |       |                           |  |  |               |   |  |          |         |   |             |   |        |               |  |  |          |   |  |             |         |   |  |   |       |  |  |  |      |  
|LIABILITIES                                       |  |                           |         |   |                   |   |       |                           |  |  |               |   |  |          |         |   |             |   |        |               |  |  |          |   |  |             |         |   |  |   |       |  |  |  |      |  
|Time deposits                                     |  | $                         | 78,537  |   |                   | $ | 408   |                           |  |  | 2.11          | % |  | $        | 83,399  |   |             | $ | 2,085  |               |  |  | 2.50     | % |  | $           | 85,829  |   |  | $ | 595   |  |  |  | 2.81 | %
|Savings deposits                                  |  |                           | 81,177  |   |                   |   | 106   |                           |  |  | 0.53          | % |  |          | 73,936  |   |             |   | 484    |               |  |  | 0.65     | % |  |             | 69,673  |   |  |   | 133   |  |  |  | 0.77 | %
|Interest bearing demand deposits                  |  |                           | 43,779  |   |                   |   | 18    |                           |  |  | 0.17          | % |  |          | 40,707  |   |             |   | 89     |               |  |  | 0.22     | % |  |             | 38,721  |   |  |   | 26    |  |  |  | 0.27 | %
|Federal funds purchased and repurchase agreements |  |                           | 13,636  |   |                   |   | 25    |                           |  |  | 0.74          | % |  |          | 13,437  |   |             |   | 112    |               |  |  | 0.83     | % |  |             | 11,823  |   |  |   | 26    |  |  |  | 0.89 | %
|FHLB and other long-term borrowings               |  |                           | 3,765   |   |                   |   | 45    |                           |  |  | 4.85          | % |  |          | 5,799   |   |             |   | 286    |               |  |  | 4.93     | % |  |             | 7,344   |   |  |   | 91    |  |  |  | 5.03 | %
|                                                  |  |                           |         |   |                   |   |       |                           |  |  |               |   |  |          |         |   |             |   |        |               |  |  |          |   |  |             |         |   |  |   |       |  |  |  |      |  
|Total interest bearing liabilities                |  |                           | 220,894 |   |                   |   | 602   |                           |  |  | 1.11          | % |  |          | 217,278 |   |             |   | 3,056  |               |  |  | 1.41     | % |  |             | 213,390 |   |  |   | 871   |  |  |  | 1.66 | %
|Demand deposits                                   |  |                           | 27,831  |   |                   |   |       |                           |  |  |               |   |  |          | 26,030  |   |             |   |        |               |  |  |          |   |  |             | 25,312  |   |  |   |       |  |  |  |      |  
|Other liabilities                                 |  |                           | 852     |   |                   |   |       |                           |  |  |               |   |  |          | 1,055   |   |             |   |        |               |  |  |          |   |  |             | 852     |   |  |   |       |  |  |  |      |  
|                                                  |  |                           |         |   |                   |   |       |                           |  |  |               |   |  |          |         |   |             |   |        |               |  |  |          |   |  |             |         |   |  |   |       |  |  |  |      |  
|Total Liabilities                                 |  |                           | 249,577 |   |                   |   |       |                           |  |  |               |   |  |          | 244,363 |   |             |   |        |               |  |  |          |   |  |             | 239,554 |   |  |   |       |  |  |  |      |  
|STOCKHOLDERS EQUITY                              |  |                           | 30,088  |   |                   |   |       |                           |  |  |               |   |  |          | 29,415  |   |             |   |        |               |  |  |          |   |  |             | 28,940  |   |  |   |       |  |  |  |      |  
|                                                  |  |                           |         |   |                   |   |       |                           |  |  |               |   |  |          |         |   |             |   |        |               |  |  |          |   |  |             |         |   |  |   |       |  |  |  |      |  
|Total Liabilities and Stockholders Equity        |  | $                         | 279,665 |   |                   |   |       |                           |  |  |               |   |  | $        | 273,778 |   |             |   |        |               |  |  |          |   |  | $           | 268,494 |   |  |   |       |  |  |  |      |  
|                                                  |  |                           |         |   |                   |   |       |                           |  |  |               |   |  |          |         |   |             |   |        |               |  |  |          |   |  |             |         |   |  |   |       |  |  |  |      |  
|Net yield on earning assets                       |  |                           |         |   |                   | $ | 2,260 |                           |  |  | 3.50          | % |  |          |         |   |             | $ | 8,802  |               |  |  | 3.45     | % |  |             |         |   |  | $ | 2,126 |  |  |  | 3.43 | %
|                                                  |  |                           |         |   |                   |   |       |                           |  |  |               |   |  |          |         |   |             |   |        |               |  |  |          |   |  |             |         |   |  |   |       |  |  |  |      |  

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, 2011 and 2010, and the year ended December 31, 2010, respectively. The effect of this adjustment is presented below.



|                                               |  |   |         |  |  |   |       |  |  |  |      |   |  |   |         |  |  |   |        |  |  |  |      |   |  |   |         |  |  |   |       |  |  |  |      |  
|---------------------------------------------- |  | - | ------- |  |  | - | ----- |  |  |  | ---- | - |  | - | ------- |  |  | - | ------ |  |  |  | ---- | - |  | - | ------- |  |  | - | ----- |  |  |  | ---- | -
|Investment securities                          |  | $ | 130,226 |  |  | $ | 1,396 |  |  |  | 4.35 | % |  | $ | 116,990 |  |  | $ | 5,402  |  |  |  | 4.62 | % |  | $ | 112,034 |  |  | $ | 1,355 |  |  |  | 4.91 | %
|Loans                                          |  |   | 119,581 |  |  |   | 1,780 |  |  |  | 6.04 | % |  |   | 124,074 |  |  |   | 7,539  |  |  |  | 6.08 | % |  |   | 127,150 |  |  |   | 1,904 |  |  |  | 6.07 | %
|                                               |  |   |         |  |  |   |       |  |  |  |      |   |  |   |         |  |  |   |        |  |  |  |      |   |  |   |         |  |  |   |       |  |  |  |      |  
|Total earning assets                           |  | $ | 261,901 |  |  | $ | 3,186 |  |  |  | 4.93 | % |  | $ | 255,019 |  |  | $ | 12,991 |  |  |  | 5.09 | % |  | $ | 251,033 |  |  | $ | 3,274 |  |  |  | 5.29 | %
|                                               |  |   |         |  |  |   |       |  |  |  |      |   |  |   |         |  |  |   |        |  |  |  |      |   |  |   |         |  |  |   |       |  |  |  |      |  
|Taxable equivalent net yield on earning assets |  |   |         |  |  | $ | 2,584 |  |  |  | 4.00 | % |  |   |         |  |  | $ | 9,935  |  |  |  | 3.90 | % |  |   |         |  |  | $ | 2,403 |  |  |  | 3.88 | %
|                                               |  |   |         |  |  |   |       |  |  |  |      |   |  |   |         |  |  |   |        |  |  |  |      |   |  |   |         |  |  |   |       |  |  |  |      |  



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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 - For the three months ended March 31, 2011 - (Continued)



Other operating expenses for the three months ended March 31 included the following:



|                                            |  |      |         |  |      |   |         | 
|------------------------------------------- |  | ---- | ------- |  | ---- | - | ------- | 
|Unaudited                                   |  | 2011 |         |  | 2010 |  
|Directors fees                             |  | $    | 31,100  |  |      | $ | 24,175  | 
|Stationery and supplies                     |  |      | 37,786  |  |      |   | 45,088  | 
|Regulatory assessment and deposit insurance |  |      | 103,307 |  |      |   | 102,352 | 
|Advertising                                 |  |      | 17,921  |  |      |   | 12,207  | 
|Postage and transportation                  |  |      | 41,861  |  |      |   | 41,748  | 
|Other taxes                                 |  |      | 47,196  |  |      |   | 53,121  | 
|Service expense                             |  |      | 102,922 |  |      |   | 84,115  | 
|Other                                       |  |      | 230,466 |  |      |   | 236,609 | 
|                                            |  |      |         |  |      |   |         | 
|Total                                       |  | $    | 612,559 |  |      | $ | 599,415 | 
|                                            |  |      |         |  |      |   |         | 

Income Taxes

Income tax expense for the three month period ended March 31, 2011 was $62,396, increasing 87.6% compared to the same period in 2010. Income tax expense increased primarily due to the increase in
pre-taxable income of $118,394, offset in part by the increase in tax-exempt income during the first three months of 2011 over the same period in 2010. Components of the income tax expense for March 31, 2011 were $37,827 for federal taxes and
$24,569 for West Virginia corporate net income taxes. 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, 2011 and 2010 and for the year
ended December 31, 2010.

Balance Sheet Analysis

Investments

Investment securities increased approximately $5.7 million or 4.3% from
December 31, 2010 to March 31, 2011. The investment portfolio is managed to attempt to achieve an optimum mix of asset quality, liquidity and maximum yield on investment. The investment portfolio consists of U.S. Government agency and
corporation securities, obligations of states and political subdivisions, corporate debt securities, mortgage-backed securities and equity securities. Taxable securities comprised 74.8% of total securities at March 31, 2011, as compared to
74.6% at December 31, 2010. Other than the normal risks inherent in purchasing U.S. Government agency and corporation securities, corporate debt securities, mortgage-backed 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 stockholders equity until realized. Available for sale securities, at fair value, increased 4.3% from
December 31, 2010 and represented 100% of the investment portfolio at March 31, 2011. The increase in the available for sale securities was primarily due to the purchase of obligations of U.S Government agency and corporation securities ,
obligations of states and political subdivisions and mortgage backed securities. The Company did not have any investment securities classified as held to maturity securities at March 31, 2011 and December 31, 2010. As the investment
portfolio consists primarily of fixed rate debt securities, changes in the market rates of interest will affect the carrying value of securities available for sale, adjusted upward or downward and represent temporary adjustments in value. The
carrying values of securities available for sale was above book value by $1,942,082 and $1,610,549 at March 31, 2011 and December 31, 2010, respectively.

Loans

Total loans, net of unearned income, declined $4,042,817 or 3.3% from
December 31, 2010 to March 31, 2011. The decrease in total loans in 2011 was primarily due to the decreases in consumer loans, consumer real estate loans, commercial real estate loans and commercial and other loans which decreased
$1,096,000 $1,449,000, $484,000 and $1,014,000, respectively. The decrease in consumer loans during the first quarter of 2011 was primarily due to the decline in installment loans to individuals. The decrease in consumer real estate loans was
primarily in residential real estate loans and home equity lines of credit during the first quarter of 2011. During 2011, the decrease in commercial real estate loans was primarily due to the decrease in loans secured by non-farm non-residential
commercial real estate as well as the decrease in multi-family residential loans. Commercial loans declined during 2011 primarily in commercial and industrial loans and in non-rated industrial development obligations.

Commercial real estate loans which include real estate loans secured by non-farm, non-residential properties and multi-family residential property loans
comprised forty-seven percent (47%) of the loan portfolio. Consumer real estate loans which include construction, farmland, real estate residential loans, and home equity loans comprised twenty-eight percent (28%) of the loan portfolio.
Commercial and other loans which include commercial and industrial loans and non-rated industrial development obligations comprised seventeen percent (17%) of the loan portfolio. Consumer loans which include installment and other loans to
individuals and credit cards comprised eight percent (8%) of the loan portfolio. There was no change in the composition of the loan portfolio from December 31, 2010 to March 31, 2011.



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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



Maturities and sensitivities of Loans to Changes in Interest Rates

The following table presents the contractual maturities of loans other than installment loans and residential mortgages as of March 31, 2011 and
December 31, 2010:



|                                                          |                    |                            |       |                                 |                   |   |                 |  |  |                    |        |  |                                 |   |       |                 |  |   |        |  |  |   |        | 
|--------------------------------------------------------- | ------------------ | -------------------------- | ----- | ------------------------------- | ----------------- | - | --------------- |  |  | ------------------ | ------ |  | ------------------------------- | - | ----- | --------------- |  | - | ------ |  |  | - | ------ | 
|(dollars in thousands)                                    |                    | (Unaudited)March 31,
 2011 |       |                                 | December 31, 2010 |  
|                                                          | In oneYear or Less |                            |       | After oneYear ThroughFive Years |                   |   | AfterFive Years |  |  | In oneYear or Less |        |  | After oneYear ThroughFive Years |   |       | AfterFive Years | 
|Construction                                              |                    | $                          | 155   |                                 |                   | $ | 20              |  |  | $                  | 130    |  |                                 | $ | 155   |                 |  | $ | 21     |  |  | $ | 132    | 
|Commercial real estate - nonfarm, nonresidential property |                    |                            | 361   |                                 |                   |   | 5,835           |  |  |                    | 42,568 |  |                                 |   | 736   |                 |  |   | 6,097  |  |  |   | 42,362 | 
|Commercial                                                |                    |                            | 1,156 |                                 |                   |   | 2,981           |  |  |                    | 2,301  |  |                                 |   | 1,519 |                 |  |   | 2,875  |  |  |   | 2,638  | 
|Nonrated industrial development obligations               |                    |                            | 959   |                                 |                   |   | 5,489           |  |  |                    | 6,606  |  |                                 |   | 997   |                 |  |   | 5,770  |  |  |   | 6,694  | 
|                                                          |                    |                            |       |                                 |                   |   |                 |  |  |                    |        |  |                                 |   |       |                 |  |   |        |  |  |   |        | 
|Total                                                     |                    | $                          | 2,631 |                                 |                   | $ | 14,325          |  |  | $                  | 51,605 |  |                                 | $ | 3,407 |                 |  | $ | 14,763 |  |  | $ | 51,826 | 
|                                                          |                    |                            |       |                                 |                   |   |                 |  |  |                    |        |  |                                 |   |       |                 |  |   |        |  |  |   |        | 

The following table presents an analysis of fixed and variable rate loans as of March 31, 2011 and December 31,
2010 along with the contractual maturities of loans other than installment loans and residential mortgages:



|                       |                    |                            |       |                                 |                   |   |                 |  |  |                    |        |  |                                 |   |       |                 |  |   |        |  |  |   |        | 
|---------------------- | ------------------ | -------------------------- | ----- | ------------------------------- | ----------------- | - | --------------- |  |  | ------------------ | ------ |  | ------------------------------- | - | ----- | --------------- |  | - | ------ |  |  | - | ------ | 
|(dollars in thousands) |                    | (Unaudited) March 31, 2011 |       |                                 | December 31, 2010 |  
|                       | In oneYear or Less |                            |       | After oneYear ThroughFive Years |                   |   | AfterFive Years |  |  | In oneYear or Less |        |  | After oneYear ThroughFive Years |   |       | AfterFive Years | 
|Fixed Rates            |                    | $                          | 1,608 |                                 |                   | $ | 10,227          |  |  | $                  | 9,530  |  |                                 | $ | 2,197 |                 |  | $ | 10,503 |  |  | $ | 9,607  | 
|Variable Rates         |                    |                            | 1,023 |                                 |                   |   | 4,098           |  |  |                    | 42,075 |  |                                 |   | 1,210 |                 |  |   | 4,260  |  |  |   | 42,219 | 
|                       |                    |                            |       |                                 |                   |   |                 |  |  |                    |        |  |                                 |   |       |                 |  |   |        |  |  |   |        | 
|Total                  |                    | $                          | 2,631 |                                 |                   | $ | 14,325          |  |  | $                  | 51,605 |  |                                 | $ | 3,407 |                 |  | $ | 14,763 |  |  | $ | 51,826 | 
|                       |                    |                            |       |                                 |                   |   |                 |  |  |                    |        |  |                                 |   |       |                 |  |   |        |  |  |   |        | 

Loans Held for Sale

The Company has entered into an agreement with the Federal Home Loan Bank of Pittsburgh (FHLB) under which the bank may sell conforming one-to-four family residential mortgage loans to the
FHLB. The agreement provides for a maximum commitment of $10,000,000. Loans sold to the FHLB are sold with limited recourse or credit risk based upon utilization of the original commitment. The bank also maintains the servicing of these loans, for
which it is paid a servicing fee. The total amount of loans sold under this agreement is $7,858,945 and $6,758,928 as of March 31, 2011 and December 31, 2010, respectively. The loans which were sold were also subject to a recourse
obligation or credit risk in the amount of $250,865 and $232,888 at March 31, 2011 and December 31, 2010, respectively.

Non-performing Loans

Non-performing assets include non-accrual loans on which the collectability 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 the following table. Total non-performing loans were $4,751,000 at March 31, 2011 as compared to $4,939,000 at December 31, 2010. Non-performing loans decreased $188,000 in 2011. The decrease in
non-performing loans in 2011 was primarily due to decreases in non-accrual loans, offset in part by the increase in other real estate loans and loans past due 90 days or more.



PAGE 29



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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



Non-performing Loans - (Continued)



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)                                           |      | March 31, |       |      | December 31, 2010 |  
|                                                                 | 2011 |           |       | 2010 |                   |   | 2009  |   |  | 2008 |       |   | 2007 |  
|Past Due 90 Days or More:                                        |      |           |       |      |                   |   |       |   |  |      |       |   |      |   |       |   |  |   |       |  
|Commercial and Other Loans                                       |      | $         |      |      |                   | $ |      |   |  | $    |      |   |      | $ |      |   |  | $ | 19    |  
|Commercial real estate                                           |      |           |      |      |                   |   |      |   |  |      |      |   |      |   |      |   |  |   |      |  
|Consumer real estate                                             |      |           | 38    |      |                   |   | 28    |   |  |      |      |   |      |   |      |   |  |   |      |  
|Consumer                                                         |      |           | 2     |      |                   |   |      |   |  |      |      |   |      |   |      |   |  |   | 7     |  
|                                                                 |      |           |       |      |                   |   |       |   |  |      |       |   |      |   |       |   |  |   |       |  
|                                                                 |      |           | 40    |      |                   |   | 28    |   |  |      |      |   |      |   |      |   |  |   | 26    |  
|                                                                 |      |           |       |      |                   |   |       |   |  |      |       |   |      |   |       |   |  |   |       |  
|Non-accrual:                                                     |      |           |       |      |                   |   |       |   |  |      |       |   |      |   |       |   |  |   |       |  
|Commercial and Other Loans                                       |      | $         | 52    |      |                   | $ | 54    |   |  | $    | 2,254 |   |      | $ | 111   |   |  | $ | 79    |  
|Commercial real estate                                           |      |           | 3,928 |      |                   |   | 4,147 |   |  |      | 1,195 |   |      |   | 2,866 |   |  |   | 2,165 |  
|Consumer real estate                                             |      |           | 552   |      |                   |   | 688   |   |  |      | 624   |   |      |   | 282   |   |  |   | 192   |  
|Consumer                                                         |      |           | 11    |      |                   |   | 14    |   |  |      | 19    |   |      |   | 16    |   |  |   | 1     |  
|                                                                 |      |           |       |      |                   |   |       |   |  |      |       |   |      |   |       |   |  |   |       |  
|                                                                 |      | $         | 4,543 |      |                   | $ | 4,903 |   |  | $    | 4,092 |   |      | $ | 3,275 |   |  | $ | 2,437 |  
|                                                                 |      |           |       |      |                   |   |       |   |  |      |       |   |      |   |       |   |  |   |       |  
|Other Real Estate                                                |      | $         | 168   |      |                   | $ | 8     |   |  | $    | 173   |   |      | $ | 8     |   |  | $ |      |  
|                                                                 |      |           |       |      |                   |   |       |   |  |      |       |   |      |   |       |   |  |   |       |  
|Total non-performing assets                                      |      | $         | 4,751 |      |                   | $ | 4,939 |   |  | $    | 4,265 |   |      | $ | 3,283 |   |  | $ | 2,463 |  
|                                                                 |      |           |       |      |                   |   |       |   |  |      |       |   |      |   |       |   |  |   |       |  
|Total non-performing assets to total loans and other real estate |      |           | 4.04  | %    |                   |   | 4.07  | % |  |      | 3.31  | % |      |   | 2.63  | % |  |   | 2.02  | %

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 $4,543,000 or 3.9% of total loans outstanding as of March 31, 2011, as compared to $4,903,000 or
4.0% of total loans outstanding as of December 31, 2010. Non-accrual loans decreased in 2011 primarily due to one commercial real estate loan transferring into other real estate owned and by payments applied to nonaccrual loans. Loans past due
90 days or more and still accruing interest were $40,000 and $28,000 at March 31, 2011 and December 31, 2010. Other real estate owned totaled $168,000 and $8,000 at March 31, 2011 and December 31, 2010, respectively. Management
continues to monitor the nonperforming assets to ensure against deterioration in collateral values.

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.



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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



Allowance for Loan Losses (Continued)



The allowance for loan losses decreased $58,375 or 2.8%, since December 31, 2010. The allowance for
loan losses represented 1.7% of outstanding loans as of March 31, 2011 and at December 31, 2010. Net loan charge-offs amounted to $88,375 for the three month period ended March 31, 2011, compared to loan charge-offs of $18,623 for the
same period in 2010. There was a provision in the amount of $30,000 made to the allowance for loan losses during the three months ended March 31, 2011 and 2010. 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.

The following table
presents an allocation of the allowance for possible loan losses at each of the four year periods ended December 31, 2010, and the three month period ended March 31, 2011. 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.



|                           |  |                      |       |  |                                             |      |       |        |      |   |                                             |      |  |        |       |   |                                             |   |       |        |  |  |                                             |   |  |        |       |  |                                             |  |       |   |  |   |       |  |  |  |       |  
|-------------------------- |  | -------------------- | ----- |  | ------------------------------------------- | ---- | ----- | ------ | ---- | - | ------------------------------------------- | ---- |  | ------ | ----- | - | ------------------------------------------- | - | ----- | ------ |  |  | ------------------------------------------- | - |  | ------ | ----- |  | ------------------------------------------- |  | ----- | - |  | - | ----- |  |  |  | ----- | -
|                           |  | (Unaudited)March2011 |       |  | December 31,                                |     
|                           |  |                      | 2010  |  |                                             | 2009 |       |        | 2008 |   |                                             | 2007 | 
|(dollars in thousands)     |  | Amount               |       |  | Percentof loansin eachcategoryto totalloans |      |       | Amount |      |   | Percentof loansin eachcategoryto totalloans |      |  | Amount |       |   | Percentof loansin eachcategoryto totalloans |   |       | Amount |  |  | Percentof loansin eachcategoryto totalloans |   |  | Amount |       |  | Percentof loansin eachcategoryto totalloans | 
|Commercial and Other Loans |  | $                    | 208   |  |                                             |      | 16.6  | %      |      | $ | 212                                         |      |  |        | 16.9  | % |                                             | $ | 203   |        |  |  | 16.1                                        | % |  | $      | 202   |  |                                             |  | 17.7  | % |  | $ | 147   |  |  |  | 16.4  | %
|Commercial real estate     |  |                      | 1,473 |  |                                             |      | 47.8  |        |      |   | 1,511                                       |      |  |        | 46.5  |   |                                             |   | 1,345 |        |  |  | 45.5                                        |   |  |        | 1,350 |  |                                             |  | 41.8  |   |  |   | 1,498 |  |  |  | 43.0  |  
|Consumer real estate       |  |                      | 264   |  |                                             |      | 27.8  |        |      |   | 272                                         |      |  |        | 28.1  |   |                                             |   | 267   |        |  |  | 28.2                                        |   |  |        | 267   |  |                                             |  | 29.2  |   |  |   | 267   |  |  |  | 30.0  |  
|Consumer                   |  |                      | 55    |  |                                             |      | 7.8   |        |      |   | 64                                          |      |  |        | 8.5   |   |                                             |   | 79    |        |  |  | 10.2                                        |   |  |        | 104   |  |                                             |  | 11.3  |   |  |   | 131   |  |  |  | 10.6  |  
|                           |  |                      |       |  |                                             |      |       |        |      |   |                                             |      |  |        |       |   |                                             |   |       |        |  |  |                                             |   |  |        |       |  |                                             |  |       |   |  |   |       |  |  |  |       |  
|Total                      |  | $                    | 2,000 |  |                                             |      | 100.0 | %      |      | $ | 2,059                                       |      |  |        | 100.0 | % |                                             | $ | 1,894 |        |  |  | 100.0                                       | % |  | $      | 1,923 |  |                                             |  | 100.0 | % |  | $ | 2,043 |  |  |  | 100.0 | %
|                           |  |                      |       |  |                                             |      |       |        |      |   |                                             |      |  |        |       |   |                                             |   |       |        |  |  |                                             |   |  |        |       |  |                                             |  |       |   |  |   |       |  |  |  |       |  

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 rates and the Companys need for certain types of deposit growth. Total deposits increased approximately $5.6 million or 2.5% during the first three months of 2011. Since year end
the increase in total deposits was primarily due to increases in interest bearing and noninterest bearing demand deposits, and savings deposits which increased approximately $2,633,000, $403,000 and $4,411,000, respectively, offset in part by the
decrease in certificates of deposit which fell $1,806,000. At March 31, 2011, noninterest bearing deposits comprised 12% of total deposits and interest bearing deposits which include NOW, money market, savings and time deposits comprised 88% of
total deposits. There was no change in the deposit mix from December 31, 2010 to March 31, 2011.

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, 2011 and December 31, 2010. Repurchase agreements increased $420,181 or
3.1%, from December 31, 2010 to March 31, 2011. The increase in repurchase agreements since year end was primarily due to the increase in the balances maintained by existing commercial customers.

Capital Resources

Stockholders equity increased .8% during the three month period ended March 31, 2011 entirely from current earnings after quarterly dividends,
and a .6% increase in accumulated other comprehensive income. The increase in accumulated other comprehensive income is primarily attributable to the effect of the change in the net unrealized gain on securities available for sale.
Stockholders equity amounted to 11.1% and 11.2% of total assets at March 31, 2011 and December 31, 2010, respectively. The Company paid dividends of $.19 per share during the three month period ended March 31, 2011 as compared
to the $.18 per share paid in the three month period ended March 31, 2010.



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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. The approval of the Comptroller of the Currency is required to pay dividends if the total of all dividends declared by a national bank in any calendar year exceeds the total of its net profits (as defined) for the
year, combined with its retained net profits of the preceding two years. Under this formula, the Companys subsidiary bank can declare dividends in 2011, without approval of the Comptroller of the Currency, of approximately $2,272,000, plus an
additional amount equal to the banks net profit for 2011 up to the date of any such dividend declaration.

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 Company had investment securities with an estimated fair value of $138,823,466 classified as
available for sale at March 31, 2011. These securities are available for sale at any time based upon managements assessment in order to provide necessary liquidity should the need arise. The fair value of temporarily impaired investment
securities that the company has the intent and ability to hold until the anticipated recovery in market value is $50,727,000. 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. The remaining maximum borrowing capacity with the FHLB at March 31, 2011 was approximately $43.1 million
subject to the purchase of additional FHLB stock. At March 31, 2011, the subsidiary bank had a short term line of credit in the aggregate amount of approximately $7 million available with the FHLB. There were no short term borrowings
outstanding pursuant to this agreement as of March 31, 2011. At March 31, 2011 and December 31, 2010, the Company had outstanding loan commitments and unused lines of credit totaling $18,099,000 and $18,484,000, respectively. As of
March 31, 2011, management placed a high probability for required funding within one year of approximately $14.1 million. Approximately $3.7 million is principally unused home equity and credit card lines on which management places a low
probability for required funding.



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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, 2011 was as follows: given a 200 basis point increase scenario net
interest income would be reduced by approximately 4.4%, and given a 200 basis point decrease scenario net interest income would be decreased by approximately 2.8%. The results using a +/-100 basis point interest rate scenario are also presented.
Under the 100 basis point increase scenario net interest income would be decreased by approximately 1.8%, and given a 100 basis point decrease scenario net interest income would be increased by .8%. 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 Chairman, 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, there were no 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 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 1A | Risk Factors
|------- | ------------

Not
applicable to Smaller Reporting Companies



|Item 2 | Unregistered Sales of Equity Securities and Use of Proceeds
|------ | -----------------------------------------------------------

Inapplicable



|Item 3 | Defaults Upon Senior Securities
|------ | -------------------------------

Inapplicable



|Item 4 | (Removed and Reserved)
|------ | ----------------------



|Item 5 | Other Information
|------ | -----------------

Inapplicable



|Item 6 | Exhibits and Reports on Form 8-K
|------ | --------------------------------



| | (a) | Reports on Form 8-K
| | --- | -------------------

On March 28, 2011 a report on Form 8-K was filed which contained a press release dated March 25, 2011 that reported the announcement of First West Virginia Bancorp Inc.s fourth quarter and
year end earnings.



| | (b) | Exhibits
| | --- | --------

The exhibits
listed in the Exhibit Index on page 36 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, President and Chief Executive Officer                                   
|                                  | 
|By:                               |  | /s/ Francie P. Reppy                                                              
|                                  |  | Francie P. Reppy                                                                  
|                                  |  | Executive Vice President, Chief Administrative Officer and Chief Financial Officer

Dated: May 12, 2011



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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          |  | Lease dated March 7, 2006 between Progressive Bank, N.A. and O. V. Smith & Sons of Big Chimney, Inc. Incorporated herein by reference.*                                                                      
|              | 
|10.5          |  | 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.*                     
|              | 
|10.7          |  | Lease dated December 1, 2009 between Progressive Bank, N.A. and Richard J. Dlesk, Sr. And Sharon G Neis-Dlesk. 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                                                                  
|              | 
|31.1          |  | 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.
|              | 
|31.2          |  | 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.                                                                                                                        



|* | Incorporated by reference to an identically numbered exhibit to the Form 10-K (File No. 001-13652) filed with the SEC on March 31, 2011.
|- | ----------------------------------------------------------------------------------------------------------------------------------------



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