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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 September 30, 2008



| ̈ | 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 of incorporation or organization) |  | (I.R.S. Employer Identification No.)

1701 Warwood Avenue

Wheeling, West Virginia 26003

(Address of principal executive offices)

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

N/A

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

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

Indicate by check mark whether the registrant is 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

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 November 7, 2008: Common Stock, $5.00 Par Value, shares outstanding: 1,599,411 shares









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FORM 10-Q INDEX







|                               |  |                                                                                       |  |      
|------------------------------ |  | ------------------------------------------------------------------------------------- |  | -----
|PART I - Financial Information |  |                                                                                      
|                               |  |                                                                                      
|Item 1                         |  | Financial Statements and Accompanying Notes                                           |  | 3-12 
|                               |  |                                                                                      
|Item 2                         |  | Managements Discussion and Analysis of Financial Condition and Results of Operations |  | 13-30
|                               |  |                                                                                      
|Item 3                         |  | Quantitative and Qualitative Disclosures About Market Risk                            |  | 31   
|                               |  |                                                                                      
|Item 4                         |  | Controls and Procedures                                                               |  | 31   
|                               | 
|PART II - Other Information    |  |                                                                                      
|                               |  |                                                                                      
|Item 1                         |  | Legal Proceedings                                                                     |  | 32   
|                               |  |                                                                                      
|Item 1A                        |  | Risk Factors                                                                          |  | 32   
|                               |  |                                                                                      
|Item 2                         |  | Unregistered Sales of Equity Securities and Use of Proceeds                           |  | 32   
|                               |  |                                                                                      
|Item 3                         |  | Defaults upon Senior Securities                                                       |  | 32   
|                               |  |                                                                                      
|Item 4                         |  | Submission of matters to a Vote of Security Holders                                   |  | 32   
|                               |  |                                                                                      
|Item 5                         |  | Other Information                                                                     |  | 33   
|                               |  |                                                                                      
|Item 6                         |  | Exhibits and Reports on Form 8-K                                                      |  | 33   
|                               |  |                                                                                      
|                               |  | Reports on Form 8-K                                                                   |  | 33   
|                               |  |                                                                                      
|                               |  | Signatures                                                                            |  | 34   
|                               |  |                                                                                      
|                               |  | Exhibit Index                                                                         |  | 35   



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FIRST WEST VIRGINIA BANCORP, INC.

PART I

FINANCIAL INFORMATION



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First West Virginia Bancorp, Inc.

CONSOLIDATED BALANCE SHEETS



|                                                                           |  |                   |             |   |                  |   |             |  
|-------------------------------------------------------------------------- |  | ----------------- | ----------- | - | ---------------- | - | ----------- | -
|                                                                           |  | September 30,2008 |             |   | December 31,2007 |  
|ASSETS                                                                     |  |                   |             |   |                  |   |             |  
|                                                                           |  | (Unaudited)       |             |   |                  |  
|Cash and due from banks                                                    |  | $                 | 5,873,924   |   |                  | $ | 5,533,577   |  
|Due from banks - interest bearing                                          |  |                   | 4,209,763   |   |                  |   | 639,603     |  
|Federal funds sold                                                         |  |                   | 10,410,000  |   |                  |   | 6,752,000   |  
|                                                                           |  |                   |             |   |                  |   |             |  
|Total cash and cash equivalents                                            |  |                   | 20,493,687  |   |                  |   | 12,925,180  |  
|Investment securities:                                                     |  |                   |             |   |                  |   |             |  
|Available-for-sale (at fair value)                                         |  |                   | 107,006,587 |   |                  |   | 105,983,126 |  
|Held-to-maturity (fair value of $506,044 and $675,604, respectively)       |  |                   | 499,947     |   |                  |   | 663,936     |  
|Loans                                                                      |  |                   | 121,220,070 |   |                  |   | 121,739,193 |  
|Less allowance for loan losses                                             |  |                   | (1,947,468  | ) |                  |   | (2,042,997  | )
|                                                                           |  |                   |             |   |                  |   |             |  
|Net loans                                                                  |  |                   | 119,272,602 |   |                  |   | 119,696,196 |  
|Premises and equipment, net                                                |  |                   | 4,743,080   |   |                  |   | 4,789,947   |  
|Accrued income receivable                                                  |  |                   | 1,163,055   |   |                  |   | 1,236,153   |  
|Other intangible assets                                                    |  |                   |            |   |                  |   | 14,792      |  
|Goodwill                                                                   |  |                   | 1,644,119   |   |                  |   | 1,644,119   |  
|Bank owned life insurance                                                  |  |                   | 3,524,385   |   |                  |   | 3,429,560   |  
|Other assets                                                               |  |                   | 3,730,324   |   |                  |   | 2,803,781   |  
|                                                                           |  |                   |             |   |                  |   |             |  
|Total assets                                                               |  | $                 | 262,077,786 |   |                  | $ | 253,186,790 |  
|                                                                           |  |                   |             |   |                  |   |             |  
|LIABILITIES                                                                |  |                   |             |   |                  |   |             |  
|Noninterest bearing deposits:                                              |  |                   |             |   |                  |   |             |  
|Demand                                                                     |  | $                 | 24,253,332  |   |                  | $ | 24,437,272  |  
|Interest bearing deposits:                                                 |  |                   |             |   |                  |   |             |  
|Demand                                                                     |  |                   | 36,355,635  |   |                  |   | 33,232,800  |  
|Savings                                                                    |  |                   | 54,284,367  |   |                  |   | 50,969,862  |  
|Time                                                                       |  |                   | 94,997,724  |   |                  |   | 94,486,897  |  
|                                                                           |  |                   |             |   |                  |   |             |  
|Total deposits                                                             |  |                   | 209,891,058 |   |                  |   | 203,126,831 |  
|Federal funds purchased and securities sold under agreements to repurchase |  |                   | 12,739,422  |   |                  |   | 12,196,144  |  
|Federal Home Loan Bank borrowings                                          |  |                   | 10,947,581  |   |                  |   | 9,298,492   |  
|Accrued interest payable                                                   |  |                   | 566,944     |   |                  |   | 598,054     |  
|Other liabilities                                                          |  |                   | 755,470     |   |                  |   | 752,670     |  
|                                                                           |  |                   |             |   |                  |   |             |  
|Total liabilities                                                          |  |                   | 234,900,475 |   |                  |   | 225,972,191 |  
|                                                                           |  |                   |             |   |                  |   |             |  
|STOCKHOLDERS EQUITY                                                       |  |                   |             |   |                  |   |             |  
|Common stock - 2,000,000 shares authorized at $5 par value:                |  |                   |             |   |                  |   |             |  
|1,538,443 shares issued at September 30, 2008 and December 31, 2007        |  |                   | 7,692,215   |   |                  |   | 7,692,215   |  
|Treasury stock - 10,000 shares at cost:                                    |  |                   | (228,100    | ) |                  |   | (228,100    | )
|Surplus                                                                    |  |                   | 4,982,606   |   |                  |   | 4,982,606   |  
|Retained earnings                                                          |  |                   | 15,192,860  |   |                  |   | 14,394,610  |  
|Accumulated other comprehensive income (loss)                              |  |                   | (462,270    | ) |                  |   | 373,268     |  
|                                                                           |  |                   |             |   |                  |   |             |  
|Total stockholders equity                                                 |  |                   | 27,177,311  |   |                  |   | 27,214,599  |  
|                                                                           |  |                   |             |   |                  |   |             |  
|Total liabilities and stockholders equity                                 |  | $                 | 262,077,786 |   |                  | $ | 253,186,790 |  
|                                                                           |  |                   |             |   |                  |   |             |  

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,September 30, |           |             | Nine Months Ended,September 30, |  
|                                                    | 2008        |                                  |           | 2007        |                                 |   | 2008      |   | 2007 |  
|                                                    | (Unaudited) |                                  |           | (Unaudited) |                                
|INTEREST AND DIVIDEND INCOME                        |             |                                  |           |             |                                 |   |           |   |      |   |            |  |   |            |  
|Loans, including fees:                              |             |                                  |           |             |                                 |   |           |   |      |   |            |  |   |            |  
|Taxable                                             |             | $                                | 1,807,025 |             |                                 | $ | 1,956,372 |   |      | $ | 5,556,833  |  | $ | 5,711,270  |  
|Tax-exempt                                          |             |                                  | 141,258   |             |                                 |   | 149,015   |   |      |   | 414,382    |  |   | 440,362    |  
|Debt securities:                                    |             |                                  |           |             |                                 |   |           |   |      |   |            |  |   |            |  
|Taxable                                             |             |                                  | 1,143,728 |             |                                 |   | 1,038,556 |   |      |   | 3,357,421  |  |   | 3,158,362  |  
|Tax-exempt                                          |             |                                  | 221,296   |             |                                 |   | 207,805   |   |      |   | 607,607    |  |   | 634,517    |  
|Dividends                                           |             |                                  | 9,145     |             |                                 |   | 10,446    |   |      |   | 30,126     |  |   | 29,980     |  
|Other interest income                               |             |                                  | 5,543     |             |                                 |   | 19,330    |   |      |   | 76,386     |  |   | 46,441     |  
|Federal funds sold                                  |             |                                  | 38,846    |             |                                 |   | 72,731    |   |      |   | 136,061    |  |   | 195,036    |  
|                                                    |             |                                  |           |             |                                 |   |           |   |      |   |            |  |   |            |  
|Total interest and dividend income                  |             |                                  | 3,366,841 |             |                                 |   | 3,454,255 |   |      |   | 10,178,816 |  |   | 10,215,968 |  
|                                                    |             |                                  |           |             |                                 |   |           |   |      |   |            |  |   |            |  
|INTEREST EXPENSE                                    |             |                                  |           |             |                                 |   |           |   |      |   |            |  |   |            |  
|Deposits                                            |             |                                  | 1,149,214 |             |                                 |   | 1,185,841 |   |      |   | 3,473,606  |  |   | 3,493,867  |  
|Federal funds purchased and repurchase agreements   |             |                                  | 42,388    |             |                                 |   | 122,336   |   |      |   | 130,652    |  |   | 390,840    |  
|FHLB and other long-term borrowings                 |             |                                  | 138,246   |             |                                 |   | 89,561    |   |      |   | 376,058    |  |   | 147,900    |  
|                                                    |             |                                  |           |             |                                 |   |           |   |      |   |            |  |   |            |  
|Total interest expense                              |             |                                  | 1,329,848 |             |                                 |   | 1,397,738 |   |      |   | 3,980,316  |  |   | 4,032,607  |  
|                                                    |             |                                  |           |             |                                 |   |           |   |      |   |            |  |   |            |  
|Net interest income                                 |             |                                  | 2,036,993 |             |                                 |   | 2,056,517 |   |      |   | 6,198,500  |  |   | 6,183,361  |  
|PROVISION FOR LOAN LOSSES                           |             |                                  |          |             |                                 |   | (100,000  | ) |      |   |           |  |   | (100,000   | )
|                                                    |             |                                  |           |             |                                 |   |           |   |      |   |            |  |   |            |  
|Net interest income after provision for loan losses |             |                                  | 2,036,993 |             |                                 |   | 2,156,517 |   |      |   | 6,198,500  |  |   | 6,283,361  |  
|                                                    |             |                                  |           |             |                                 |   |           |   |      |   |            |  |   |            |  
|NONINTEREST INCOME                                  |             |                                  |           |             |                                 |   |           |   |      |   |            |  |   |            |  
|Service charges and other fees                      |             |                                  | 201,658   |             |                                 |   | 237,541   |   |      |   | 615,091    |  |   | 688,097    |  
|Net gains (losses) on available for sale securities |             |                                  | (2,081    | )           |                                 |   | (605      | ) |      |   | 109,909    |  |   | (51,961    | )
|Other operating income                              |             |                                  | 153,780   |             |                                 |   | 132,545   |   |      |   | 422,392    |  |   | 368,602    |  
|                                                    |             |                                  |           |             |                                 |   |           |   |      |   |            |  |   |            |  
|Total noninterest income                            |             |                                  | 353,357   |             |                                 |   | 369,481   |   |      |   | 1,147,392  |  |   | 1,004,738  |  
|                                                    |             |                                  |           |             |                                 |   |           |   |      |   |            |  |   |            |  
|NONINTEREST EXPENSE                                 |             |                                  |           |             |                                 |   |           |   |      |   |            |  |   |            |  
|Salary and employee benefits                        |             |                                  | 900,893   |             |                                 |   | 961,406   |   |      |   | 2,726,477  |  |   | 2,938,821  |  
|Net occupancy expense of premises                   |             |                                  | 308,710   |             |                                 |   | 265,536   |   |      |   | 924,177    |  |   | 831,444    |  
|Other operating expenses                            |             |                                  | 525,110   |             |                                 |   | 560,356   |   |      |   | 1,569,836  |  |   | 1,669,190  |  
|                                                    |             |                                  |           |             |                                 |   |           |   |      |   |            |  |   |            |  
|Total noninterest expense                           |             |                                  | 1,734,713 |             |                                 |   | 1,787,298 |   |      |   | 5,220,490  |  |   | 5,439,455  |  
|                                                    |             |                                  |           |             |                                 |   |           |   |      |   |            |  |   |            |  
|Income before income taxes                          |             |                                  | 655,637   |             |                                 |   | 738,700   |   |      |   | 2,125,402  |  |   | 1,848,644  |  
|INCOME TAXES                                        |             |                                  | 133,732   |             |                                 |   | 159,087   |   |      |   | 455,939    |  |   | 347,613    |  
|                                                    |             |                                  |           |             |                                 |   |           |   |      |   |            |  |   |            |  
|Net income                                          |             | $                                | 521,905   |             |                                 | $ | 579,613   |   |      | $ | 1,669,463  |  | $ | 1,501,031  |  
|                                                    |             |                                  |           |             |                                 |   |           |   |      |   |            |  |   |            |  
|WEIGHTED AVERAGE SHARES OUTSTANDING                 |             |                                  | 1,528,443 |             |                                 |   | 1,528,443 |   |      |   | 1,528,443  |  |   | 1,528,443  |  
|                                                    |             |                                  |           |             |                                 |   |           |   |      |   |            |  |   |            |  
|EARNINGS PER COMMON SHARE                           |             | $                                | 0.34      |             |                                 | $ | 0.38      |   |      | $ | 1.09       |  | $ | 0.98       |  
|                                                    |             |                                  |           |             |                                 |   |           |   |      |   |            |  |   |            |  
|DIVIDENDS PER COMMON SHARE                          |             | $                                | 0.19      |             |                                 | $ | 0.19      |   |      | $ | 0.57       |  | $ | 0.57       |  
|                                                    |             |                                  |           |             |                                 |   |           |   |      |   |            |  |   |            |  

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 |  | Surplus |           | RetainedEarnings |   |           | TreasuryStock |   |            | AccumulatedOtherCompre-hensiveIncome (loss) |  |   | Compre-hensiveIncome |   |  | Total |         
|                                                                                    |  | Shares       |  | Amount  |           |                  |   |           |               |  
|BALANCE, DECEMBER 31, 2007                                                          |  | 1,538,443    |  | $       | 7,692,215 |                  | $ | 4,982,606 |               | $ | 14,394,610 |                                             |  | $ | (228,100             | ) |  | $     | 373,268  |   |  |   |           |   |  | $ | 27,214,599 |  
|Comprehensive income:                                                               |  |              |  |         |           |                  |   |           |               |   |            |                                             |  |   |                      |   |  |       |          |   |  |   |           |   |  |   |            |  
|Net income                                                                          |  |             |  |         |          |                  |   |          |               |   | 1,669,463  |                                             |  |   |                     |   |  |       |         |   |  | $ | 1,669,463 |   |  |   | 1,669,463  |  
|Other comprehensive income, net of tax                                              |  |              |  |         |           |                  |   |           |               |   |            |                                             |  |   |                      |   |  |       |          |   |  |   |           |   |  |   |            |  
|Unrealized losses on securities net of reclassification adjustment (see disclosure) |  |             |  |         |          |                  |   |          |               |   |           |                                             |  |   |                     |   |  |       | (835,538 | ) |  |   | (835,538  | ) |  |   | (835,538   | )
|                                                                                    |  |              |  |         |           |                  |   |           |               |   |            |                                             |  |   |                      |   |  |       |          |   |  |   |           |   |  |   |            |  
|Comprehensive income                                                                |  |              |  |         |           |                  |   |           |               |   |            |                                             |  |   |                      |   |  |       |          |   |  | $ | 833,925   |   |  |   |            |  
|                                                                                    |  |              |  |         |           |                  |   |           |               |   |            |                                             |  |   |                      |   |  |       |          |   |  |   |           |   |  |   |            |  
|Cash dividend ($.57 per share)                                                      |  |             |  |         |          |                  |   |          |               |   | (871,213   | )                                           |  |   |                     |   |  |       |         |   |  |   |           |   |  |   | (871,213   | )
|                                                                                    |  |              |  |         |           |                  |   |           |               |   |            |                                             |  |   |                      |   |  |       |          |   |  |   |           |   |  |   |            |  
|BALANCE, SEPTEMBER 30, 2008                                                         |  | 1,538,443    |  | $       | 7,692,215 |                  | $ | 4,982,606 |               | $ | 15,192,860 |                                             |  | $ | (228,100             | ) |  | $     | (462,270 | ) |  |   |           |   |  | $ | 27,177,311 |  
|                                                                                    |  |              |  |         |           |                  |   |           |               |   |            |                                             |  |   |                      |   |  |       |          |   |  |   |           |   |  |   |            |  



|                                                                                   |  |              |  |         |           |                                        |                  |           |      |               |   |            |                                             |  |   |                      |   |       |   |          |   |  |   |           |  |   |            |  
|---------------------------------------------------------------------------------- |  | ------------ |  | ------- | --------- | -------------------------------------- | ---------------- | --------- | ---- | ------------- | - | ---------- | ------------------------------------------- |  | - | -------------------- | - | ----- | - | -------- | - |  | - | --------- |  | - | ---------- | -
|                                                                                   |  | Common Stock |  | Surplus |           |                                        | RetainedEarnings |           |      | TreasuryStock |   |            | AccumulatedOtherCompre-hensiveIncome (loss) |  |   | Compre-hensiveIncome |   | Total |  
|                                                                                   |  | Shares       |  | Amount  |           |                                        |                  |           |      |              
|BALANCE, DECEMBER 31, 2006                                                         |  | 1,538,443    |  | $       | 7,692,215 |                                        | $                | 4,982,606 |      |               | $ | 13,520,264 |                                             |  | $ | (228,100             | ) |       | $ | (690,031 | ) |  |   |           |  | $ | 25,276,954 |  
|Comprehensive income:                                                              |  |              |  |         |           |                                        |                  |           |      |               |   |            |                                             |  |   |                      |   |       |   |          |   |  |   |           |  |   |            |  
|Net income                                                                         |  |             |  |         |          |                                        |                  |          |      |               |   | 1,501,031  |                                             |  |   |                     |   |       |   |         |   |  | $ | 1,501,031 |  |   | 1,501,031  |  
|Other comprehensive income, net of tax                                             |  |              |  |         |           |                                        |                  |           |      |               |   |            |                                             |  |   |                      |   |       |   |          |   |  |   |           |  |   |            |  
|Unrealized gains on securities net of reclassification adjustment (see disclosure) |  |             |  |         |          |                                        |                  |          |      |               |   |           |                                             |  |   |                     |   |       |   | 269,274  |   |  |   | 269,274   |  |   | 269,274    |  
|                                                                                   |  |              |  |         |           |                                        |                  |           |      |               |   |            |                                             |  |   |                      |   |       |   |          |   |  |   |           |  |   |            |  
|Comprehensive income                                                               |  |              |  |         |           |                                        |                  |           |      |               |   |            |                                             |  |   |                      |   |       |   |          |   |  | $ | 1,770,305 |  |   |            |  
|                                                                                   |  |              |  |         |           |                                        |                  |           |      |               |   |            |                                             |  |   |                      |   |       |   |          |   |  |   |           |  |   |            |  
|Cash dividend ($.57 per share)                                                     |  |             |  |         |          |                                        |                  |          |      |               |   | (871,213   | )                                           |  |   |                     |   |       |   |         |   |  |   |           |  |   | (871,213   | )
|                                                                                   |  |              |  |         |           |                                        |                  |           |      |               |   |            |                                             |  |   |                      |   |       |   |          |   |  |   |           |  |   |            |  
|BALANCE, SEPTEMBER 30, 2007                                                        |  | 1,538,443    |  | $       | 7,692,215 |                                        | $                | 4,982,606 |      |               | $ | 14,150,082 |                                             |  | $ | (228,100             | ) |       | $ | (420,757 | ) |  |   |           |  | $ | 26,176,046 |  
|                                                                                   |  |              |  |         |           |                                        |                  |           |      |               |   |            |                                             |  |   |                      |   |       |   |          |   |  |   |           |  |   |            |  
|                                                                                   |  |              |  |         |           |                                        |                 
|                                                                                   |  |              |  |         |           | For the Nine Months EndedSeptember 30, |                  |           |      |               |   |            |                                             |  |   |                      |   |      
|                                                                                   |  |              |  |         |           | 2008                                   |                  |           | 2007 |               |   |            |                                             |  |   |                      |   |       |   |          |  
|Disclosure of reclassification amount, net of tax:                                 |  |              |  |         |           |                                        |                  |           |      |               |   |            |                                             |  |   |                      |   |       |   |          |   |  |   |           |  |   |            |  
|Unrealized holding gains (losses) arising during the period                        |  |              |  |         |           |                                        | $                | (766,988  | )    |               | $ | 237,226    |                                             |  |   |                      |   |       |   |          |   |  |   |           |  |   |            |  
|Less reclassification adjustment for gains (losses) included in net income         |  |              |  |         |           |                                        |                  | 68,550    |      |               |   | (32,048    | )                                           |  |   |                      |   |       |   |          |   |  |   |           |  |   |            |  
|                                                                                   |  |              |  |         |           |                                        |                  |           |      |               |   |            |                                             |  |   |                      |   |       |   |          |   |  |   |           |  |   |            |  
|Net unrealized gains (losses) on securities                                        |  |              |  |         |           |                                        | $                | (835,538  | )    |               | $ | 269,274    |                                             |  |   |                      |   |       |   |          |   |  |   |           |  |   |            |  
|                                                                                   |  |              |  |         |           |                                        |                  |           |      |               |   |            |                                             |  |   |                      |   |       |   |          |   |  |   |           |  |   |            |  

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



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##### Table of Contents

First West Virginia Bancorp, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)



|                                                                                  |  |                                        |              |   |      |   |              |  
|--------------------------------------------------------------------------------- |  | -------------------------------------- | ------------ | - | ---- | - | ------------ | -
|                                                                                  |  | For the Nine Months EndedSeptember 30, |             
|                                                                                  |  | 2008                                   |              |   | 2007 |  
|OPERATING ACTIVITIES                                                              |  |                                        |              |   |      |   |              |  
|Net income                                                                        |  | $                                      | 1,669,463    |   |      | $ | 1,501,031    |  
|Adjustments to reconcile net income to net cash provided by operating activities: |  |                                        |              |   |      |   |              |  
|Provision for loan losses                                                         |  |                                        |             |   |      |   | (100,000     | )
|Depreciation and amortization                                                     |  |                                        | 335,486      |   |      |   | 304,544      |  
|Amortization of investment securities, net                                        |  |                                        | (195,391     | ) |      |   | (180,264     | )
|Investment security (gains) losses                                                |  |                                        | (109,909     | ) |      |   | 51,961       |  
|Increase in cash surrender value of bank-owned life insurance                     |  |                                        | (94,825      | ) |      |   | (90,586      | )
|Decrease (increase) in interest receivable                                        |  |                                        | 73,098       |   |      |   | (40,524      | )
|Increase in interest payable                                                      |  |                                        | (31,110      | ) |      |   | (13,862      | )
|Other, net                                                                        |  |                                        | (419,632     | ) |      |   | (271,204     | )
|                                                                                  |  |                                        |              |   |      |   |              |  
|Net cash provided by operating activities                                         |  |                                        | 1,227,180    |   |      |   | 1,161,096    |  
|                                                                                  |  |                                        |              |   |      |   |              |  
|INVESTING ACTIVITIES                                                              |  |                                        |              |   |      |   |              |  
|Net decrease in loans, net of charge-offs                                         |  |                                        | 350,527      |   |      |   | 675,216      |  
|Proceeds from sales of securities available-for-sale                              |  |                                        | 7,068,208    |   |      |   | 6,199,061    |  
|Proceeds from maturities of securities available-for-sale                         |  |                                        | 158,731,187  |   |      |   | 202,129,066  |  
|Proceeds from maturities of securities held-to-maturity                           |  |                                        | 165,000      |   |      |   | 155,000      |  
|Principal collected on mortgage-backed securities                                 |  |                                        | 7,821,458    |   |      |   | 6,722,569    |  
|Purchases of securities available-for-sale                                        |  |                                        | (175,679,674 | ) |      |   | (208,796,462 | )
|Recoveries on loans previously charged-off                                        |  |                                        | 73,067       |   |      |   | 4,801        |  
|Purchases of premises and equipment                                               |  |                                        | (273,827     | ) |      |   | (592,371     | )
|                                                                                  |  |                                        |              |   |      |   |              |  
|Net cash provided by (used in) investing activities                               |  |                                        | (1,744,054   | ) |      |   | 6,496,880    |  
|                                                                                  |  |                                        |              |   |      |   |              |  
|FINANCING ACTIVITIES                                                              |  |                                        |              |   |      |   |              |  
|Net increase (decrease) in deposits                                               |  |                                        | 6,764,227    |   |      |   | (5,695,643   | )
|Dividends paid                                                                    |  |                                        | (871,213     | ) |      |   | (871,213     | )
|Increase (decrease) in short-term borrowings                                      |  |                                        | 543,278      |   |      |   | (1,062,413   | )
|Increase in FHLB and other long-term borrowings                                   |  |                                        | 1,649,089    |   |      |   | 6,967,028    |  
|                                                                                  |  |                                        |              |   |      |   |              |  
|Net cash provided by (used in) financing activities                               |  |                                        | 8,085,381    |   |      |   | (662,241     | )
|                                                                                  |  |                                        |              |   |      |   |              |  
|INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                  |  |                                        | 7,568,507    |   |      |   | 6,995,735    |  
|CASH AND CASH EQUIVALENTS,                                                        |  |                                        |              |   |      |   |              |  
|BEGINNING OF YEAR                                                                 |  |                                        | 12,925,180   |   |      |   | 11,371,636   |  
|                                                                                  |  |                                        |              |   |      |   |              |  
|CASH AND CASH EQUIVALENTS,                                                        |  |                                        |              |   |      |   |              |  
|END OF PERIOD                                                                     |  | $                                      | 20,493,687   |   |      | $ | 18,367,371   |  
|                                                                                  |  |                                        |              |   |      |   |              |  
|Supplemental Disclosures:                                                         |  |                                        |              |   |      |   |              |  
|Cash Paid for Interest                                                            |  | $                                      | 4,011,427    |   |      | $ | 4,046,469    |  
|Cash Paid for Income Taxes                                                        |  | $                                      | 620,691      |   |      | $ | 289,076      |  

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

September 30, 2008 AND
2007

(Unaudited)

Note 1 -
Summary of SignificantAccounting 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.

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.

While temporary changes in the market value of available-for-sale securities are not recognized in earnings, a decline in fair value below amortized cost deemed to be other-than-temporary results in an adjustment to
the cost basis of the investment, with a corresponding loss charged against earnings. Management evaluates the investment securities for other-than-temporary declines in estimated fair value on a quarterly basis. This analysis requires management to
consider various factors in order to determine if a decline in estimated fair value is temporary or other-than-temporary. These factors include duration and magnitude of the decline in value, the financial condition of the issuer, and the
companys ability and intent to continue holding the investment for a period of time sufficient to allow for any anticipated recovery in market value. At September 30, 2008, 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.

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. The Company accounts for impaired loans in accordance with the provisions of Statement of Financial Accounting Standards (SFAS) No. 114 and No. 118,
Accounting for Creditors for Impairment of a Loan. 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. 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 September 30, 2008 and December 31, 2007, 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 agreement provides for a maximum commitment of $5,000,000. Loans sold to the FHLB are sold with limited recourse or credit risk up to a maximum amount of $125,000 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 $1,834,014 as of September 30, 2008 which are subject to
recourse obligation or credit risk in the amount of $43,043. As of December 31, 2007 the loans sold under this agreement amounted to $1,981,262 and were subject to a recourse obligation or credit risk in the amount of $41,635. The amount of
income recognized as of a result of this agreement was $6,102 and $7,121 for the nine month period ending September 30, 2008 and 2007, respectively.



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##### Table of Contents

First West Virginia Bancorp, Inc.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2008 AND 2007

(Unaudited)



NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)



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.

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 commercial and commercial real estate loans for which it is probable the Company will not be able to collect all amounts due according to the contractual terms of the loan agreement. The Company
individually evaluates such loans for impairment and does not aggregate loans by major risk classifications. The definition of impaired loans is not the same as the definition of nonaccrual loans, although the two categories
overlap. The Company may choose to place a loan on nonaccrual status due to payment delinquency or uncertain collectibility while not classifying the loan as impaired, provided the loan is not a commercial or commercial real estate classification.
Factors considered by management in determining impairment include payment status and collateral value. The amount of impairment for these types of loans is determined by the difference between the present value of the expected cash flows related to
the loan, using the original interest rate, and its recorded value, or as a practical expedient in the case of collateralized loans, the difference between the fair value of the collateral and the recorded amount of the loans. When foreclosure is
probable, impairment is measured based on the fair value of the collateral.

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 $1,947,468 at September 30, 2008, 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.

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.

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.

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.

An identifiable intangible asset resulted from the purchase of the core deposits of another financial institution in 2001 and, as such, are amortized
into noninterest expense on the straight-line basis over the period the Company expects to benefit from such assets (7 years). The Company recognized amortization expense of $-0- and $22,188 in the three month periods ended September 30, 2008
and 2007. The unamortized balance from the purchase of these core deposit intangible assets is $-0- and $14,792 at September 30, 2008 and December 31, 2007, respectively. While management feels the assumptions and variables used to value
the acquisition were reasonable, the use of different, but still reasonable, assumptions could produce different results.

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.



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##### Table of Contents

First West Virginia Bancorp, Inc.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2008 AND 2007

(Unaudited)



NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)



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 $3,524,385 and
$3,429,560 at September 30, 2008 and December 31, 2007, respectively. The face value of the bank-owned life insurance at September 30, 2008 was approximately $9.3 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.

Income Taxes: The
Company and its subsidiary file a consolidated federal income tax return. Deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected
to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. Deferred income tax expenses or benefits are based on the changes in the deferred tax
asset or liability from period to period.

Advertising Costs: Advertising costs are expensed as the costs are incurred. Advertising expenses
amounted to $20,569 and $36,839 for the three month periods ended September 30, 2008 and 2007, respectively. For the nine month periods ended September 30, 2008 and 2007 advertising expenses amounted to $62,307 and $136,531, respectively.

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.

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 nine month periods ended September 30, 2008 and September 30, 2007. 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 endedSeptember 30, |          |   | For the nine months endedSeptember 30, |  
|                                  |  | 2008                                    |          |   | 2007                                   |   |           | 2008 |  |   | 2007       |  
|Before-tax amount                 |  | $                                       | (481,050 | ) |                                        | $ | 1,315,935 |      |  | $ | (1,339,647 | ) |  | $ | 431,736   |  
|Tax effect                        |  |                                         | 181,019  |   |                                        |   | (495,186  | )    |  |   | 504,109    |   |  |   | (162,462  | )
|                                  |  |                                         |          |   |                                        |   |           |      |  |   |            |   |  |   |           |  
|Net of tax effect                 |  |                                         | (300,031 | ) |                                        |   | 820,749   |      |  |   | (835,538   | ) |  |   | 269,274   |  
|Net income as reported            |  |                                         | 521,905  |   |                                        |   | 579,613   |      |  |   | 1,669,463  |   |  |   | 1,501,031 |  
|                                  |  |                                         |          |   |                                        |   |           |      |  |   |            |   |  |   |           |  
|Total comprehensive income (loss) |  | $                                       | 221,874  |   |                                        | $ | 1,400,362 |      |  | $ | 833,925    |   |  | $ | 1,770,305 |  
|                                  |  |                                         |          |   |                                        |   |           |      |  |   |            |   |  |   |           |  

Fair Value Measurements:In September 2006, the FASB issued FASB No. 157, Fair Value
Measurements, to provide consistency and comparability in determining fair value measurements and to provide for expanded disclosures about fair value measurements. The definition of fair value maintains the exchange price notion in earlier
definitions of fair value but focuses on the exit price of the asset or liability. The exit price is the price that would be received to sell the asset or paid to transfer the liability adjusted for certain inherent risks and restrictions. Expanded
disclosures are also required about the use of fair value to measure assets and liabilities.

As required by FASB No. 157, each financial asset and
liability must be identified as having been valued according to specified level of input, 1, 2 or 3. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at
the measurement date. Fair values determined by Level 2 inputs utilize inputs other than quoted prices included in Level 1 that are observable for the asset, either directly or indirectly. Level 2 inputs include quoted prices for similar assets in
active markets, and inputs other than quoted prices that are observable for the asset or liability. Level 3 inputs are unobservable inputs for the asset, and include situations where there is little, if any, market activity for the asset or
liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy, within which the fair value measurement in its entirety falls, has
been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Companys assessment of the significance of a particular input to the fair value measurement in its entirety requires
judgment, and considers factors specific to the asset.



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##### Table of Contents

First West Virginia Bancorp, Inc.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2008 AND
2007

(Unaudited)

As of
September 30, 2008, the Company did not have any assets measured at fair value on a nonrecurring basis. The measurement of fair value should be consistent with one of the following valuation techniques: market approach, income approach, and/or
cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (including a business). For example, valuation techniques consistent with the
market approach often use market multiples derived from a set of comparables. Multiples might lie in ranges with a different multiple for each comparable. The selection of where within the range the appropriate multiple falls requires judgment,
considering factors specific to the measurement (qualitative and quantitative). Valuation techniques consistent with the market approach include matrix pricing. Matrix pricing is a mathematical technique used principally to value debt securities
without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities relationship to other benchmark quoted securities. As of September 30, 2008, all of the financial assets measured at fair
value utilized the market approach.

The following table presents the assets and liabilities reported on the consolidated statements of financial condition
at their fair value as of September 30, 2008 by level within the fair value hierarchy. As required by SFAS No. 157, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to
the fair value measurement.



|                              |  |                    |     |          |   |           |  |       |   |  |   |        
|----------------------------- |  | ------------------ | --- | -------- | - | --------- |  | ----- | - |  | - | -------
|                              |  | September 30, 2008
|                              |  | Level I            |     | Level II |   | Level III |  | Total
|                              |  | (In thousands)    
|Assets:                       |  |                    |     |          |   |           |  |       |   |  |   |        
|Securities available for sale |  | $                  | 288 |          | $ | 106,719   |  | $     |  |  | $ | 107,007

NOTE 2 - RECENT ACCOUNTING PRONOUNCEMENTS

In December 2007, the FASB issued FAS No. 141 (revised 2007), Business Combinations (FAS 141(R)),
which establishes principles and requirements for how an acquirer recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in an acquiree, including the
recognition and measurement of goodwill acquired in a business combination. FAS No. 141®) is effective for fiscal years beginning on or after December 15, 2008. Earlier adoption
is prohibited. The adoption of this standard is not expected to have a material effect on the Companys results of operations or financial position.

In September 2006, the FASB issued FAS No. 157, Fair Value Measurements, which provides enhanced guidance for using fair value to measure assets and liabilities. The standard applies whenever other standards require or permit
assets or liabilities to be measured at fair value. The Standard does not expand the use of fair value in any new circumstances. FAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007
and interim periods within those fiscal years. In February 2008, the FASB issued Staff Position No. 157-1, Application of FASB Statement No. 157 to FASB Statement No. 13 and Other Accounting Pronouncements That Address Fair Value
Measurements for Purposes of Lease Classification or Measurement under Statement 13, which removed leasing transactions accounted for under FAS No. 13 and related guidance from the scope of FAS No. 157. Also in February 2008, the FASB
issued Staff Position No.157-2, Partial Deferral of the Effective Date of Statement 157, which deferred the effective date of FAS No. 157 for all nonfinancial assets and nonfinancial liabilities to fiscal years beginning after
November 15, 2008. The adoption of this standard did not have a material effect on the Companys results of operations or financial position.

In September 2006, the FASB issued FAS No. 158, Employers Accounting for Defined Benefit Pension and
Other Post Retirement Plans, an amendment of FASB Statements No. 87, 88, 106 and 132®). This Statement requires that employers measure plan assets and obligations as of the balance
sheet date. This requirement is effective for fiscal years ending after December 15, 2008. The other provisions of the Statement were effective as of the end of the fiscal year ending after December 15, 2006, for public companies. The
adoption of this standard did not have a material effect on the Companys results of operations or financial position.

In February 2007, the FASB
issued FAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities  Including an amendment of FASB Statement No. 115, which provides all entities with an option to report selected financial assets and
liabilities at fair value. The objective of the FAS No. 159 is to improve financial reporting by providing entities with the opportunity to mitigate volatility in earnings caused by measuring related assets and liabilities differently without
having to apply the complex provisions of hedge accounting. FAS No. 159 is effective as of the beginning of an entitys first fiscal year beginning after November 15, 2007. Early adoption is permitted as of the beginning of a fiscal
year that begins on or before November 15, 2007 provided the entity also elects to apply the provisions of FAS No. 157, Fair Value Measurements. The adoption of this standard did not have a material effect on the Companys
results of operations or financial position.

In December 2007, the FASB issued FAS No. 160, Noncontrolling Interests in Consolidated Financial
Statements  an amendment of ARB No. 51. FAS No. 160 amends ARB No. 51 to establish accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. It clarifies
that a noncontrolling interest in a subsidiary, which is sometimes referred to as minority interest, is an ownership interest in the consolidated entity that should be reported as equity in the consolidated financial statements. Among other
requirements, this statement requires consolidated net income to be reported at amounts that include the amounts attributable to both the parent and the noncontrolling interest. It also requires disclosure, on the face of the consolidated income
statement, of the amounts of consolidated net income attributable to the parent and to the noncontrolling interest. FAS No. 160 is effective for fiscal years beginning on or after December 15, 2008. Earlier adoption is prohibited. The
adoption of this standard is not expected to have a material effect on the Companys results of operations or financial position.



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##### Table of Contents

First West Virginia Bancorp, Inc.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2008 AND 2007

(Unaudited)



NOTE 2 - RECENT ACCOUNTING PRONOUNCEMENTS (CONTINUED)



In March 2008, the FASB issued FAS No. 161, Disclosures about Derivative Instruments
and Hedging Activities, to require enhanced disclosures about derivative instruments and hedging activities. The new standard has revised financial reporting for derivative instruments and hedging activities by requiring more transparency about
how and why an entity uses derivative instruments, how derivative instruments and related hedged items are accounted for under FAS No. 133, Accounting for Derivative Instruments and Hedging Activities; and how derivative instruments and
related hedged items affect an entitys financial position, financial performance, and cash flows. FAS No. 161 requires disclosure of the fair values of derivative instruments and their gains and losses in a tabular format. It also
requires entities to provide more information about their liquidity by requiring disclosure of derivative features that are credit risk-related. Further, it requires cross-referencing within footnotes to enable financial statement users to locate
important information about derivative instruments. FAS No. 161 is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008, with early application encourage. The adoption of this
standard did not have a material effect on the Companys results of operations or financial position.

In September 2006, the FASB reached consensus
on the guidance provided by Emerging Issues Task Force Issue 06-4 (EITF 06-4), Accounting for Deferred Compensation and Postretirement Benefit Aspects of Endorsement Split-Dollar Life Insurance Arrangements. The guidance is
applicable to endorsement split-dollar life insurance arrangements, whereby the employer owns and controls the insurance policy, that are associated with a postretirement benefit. EITF 06-4 requires that for a split-dollar life insurance arrangement
within the scope of the Issue, an employer should recognize a liability for future benefits in accordance with FAS No. 106 (if, in substance, a postretirement benefit plan exists) or Accounting Principles Board Opinion No. 12 (if the
arrangement is, in substance, an individual deferred compensation contract) based on the substantive agreement with the employee. EITF 06-4 is effective for fiscal years beginning after December 15, 2007. The adoption of this EITF did not have
a material effect on the Companys results of operations or financial position.

In March 2007, the FASB ratified Emerging Issues Task Force Issue
No. 06-10 (EITF 06-10), Accounting for Collateral Assignment Split-Dollar Life Insurance Agreements. EITF 06-10 provides guidance for determining a liability for the postretirement benefit obligation as well as recognition
and measurement of the associated asset on the basis of the terms of the collateral assignment agreement. EITF 06-10 is effective for fiscal years beginning after December 15, 2007. The adoption of this EITF did not have a material effect on
the Companys results of operations or financial position.

In June 2007, the FASB ratified Emerging Issues Task Force Issue No. 06-11
(EITF 06-11), Accounting for Income Tax Benefits of Dividends on Share-Based Payment Awards. EITF 06-11 applies to share-based payment arrangements with dividend protection features that entitle employees to receive
(a) dividends on equity-classified nonvested shares, (b) dividend equivalents on equity-classified nonvested share units, or (c) payments equal to the dividends paid on the underlying shares while an equity-classified share option is
outstanding, when those dividends or dividend equivalents are charged to retained earnings under FAS No. 123R, Share-Based Payment, and result in an income tax deduction for the employer. A consensus was reached that a realized income
tax benefit from dividends or dividend equivalents that are charged to retained earnings and are paid to employees for equity-classified nonvested equity shares, nonvested equity share units, and outstanding equity share options should be recognized
as an increase in additional paid-in capital. EITF 06-11 is effective for fiscal years beginning after December 15, 2007, and interim periods within those fiscal years. The adoption of this EITF did not have a material effect on the
Companys results of operations or financial position.

In May 2008, the FASB issued FAS No. 162, The Hierarchy of Generally Accepted
Accounting Principles. FAS No. 162 identifies the sources of accounting principles and the framework for selecting the principles used in the preparation of financial statements of nongovernmental entities that are presented in conformity
with generally accepted accounting principles (the GAAP hierarchy). FAS No. 162 will become effective 60 days following the SECs approval of the Public Company Accounting Oversight Board amendments to AU Section 411, The Meaning
of Present Fairly in Conformity With Generally Accepted Accounting Principles. The Company does not expect the adoption of FAS No. 162 to have a material effect on its results of operations and financial position.

In April 2008, the FASB issued FASB Staff Position No. 142-3, Determination of the Useful Life of Intangible Assets(FSP 142-3). FSP 142-3 amends
the factors that should be considered in developing assumptions about renewal or extension used in estimating the useful life of a recognized intangible asset under FAS No. 142, Goodwill and Other Intangible Assets. This standard is
intended to improve the consistency between the useful life of a recognized intangible asset under FAS No. 142 and the period of expected cash flows used to measure the fair value of the asset under FAS No. 141R and other GAAP. FSP 142-3
is effective for financial statements issued for fiscal years beginning after December 15, 2008. The measurement provisions of this standard will apply only to intangible assets of the Company acquired after the effective date.

In June 2008, the FASB issued FASB Staff Position (FSP) No. EITF 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating
Securities, to clarify that instruments granted in share-based payment transactions can be participating securities prior to the requisite service having been rendered. A basic principle of the FSP is that unvested share-based payment awards
that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are to be included in the computation of EPS pursuant to the two-class method. The provisions of this FSP are effective
for financial statements issued for fiscal years beginning after December 15, 2008, and interim periods within those years. All prior-period EPS data presented (including interim financial statements, summaries of earnings, and selected
financial data) are required to be adjusted retrospectively to conform with the provisions of the FSP. The adoption of this FSP is not expected to have a material effect on the Companys results of operations or financial position.



PAGE 12



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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

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



|                                                  |  |                                 |         |   |                                |   |         |                         |  |   |         |   |  |      |         |   |      |   |         |      |  |   |         |   |  |   |         |  
|------------------------------------------------- |  | ------------------------------- | ------- | - | ------------------------------ | - | ------- | ----------------------- |  | - | ------- | - |  | ---- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | - |  | - | ------- | -
|                                                  |  | (Unaudited)                     |         |   | (Unaudited)                    |   |         |                         | 
|                                                  |  | Three Months EndedSeptember 30, |         |   | Nine Months EndedSeptember 30, |   |         | Years endedDecember 31, | 
|                                                  |  | 2008                            |         |   | 2007                           |   |         | 2008                    |  |   | 2007    |   |  | 2007 |         |   | 2006 |   |         | 2005 | 
|SUMMARY OF OPERATIONS                             |  |                                 |         |   |                                |   |         |                         |  |   |         |   |  |      |         |   |      |   |         |      |  |   |         |   |  |   |         |  
|Total interest income                             |  | $                               | 3,367   |   |                                | $ | 3,454   |                         |  | $ | 10,179  |   |  | $    | 10,216  |   |      | $ | 13,708  |      |  | $ | 13,772  |   |  | $ | 13,128  |  
|Total interest expense                            |  |                                 | 1,330   |   |                                |   | 1,398   |                         |  |   | 3,980   |   |  |      | 4,033   |   |      |   | 5,431   |      |  |   | 4,943   |   |  |   | 4,070   |  
|Net interest income                               |  |                                 | 2,037   |   |                                |   | 2,056   |                         |  |   | 6,199   |   |  |      | 6,183   |   |      |   | 8,277   |      |  |   | 8,829   |   |  |   | 9,058   |  
|Provision for loan losses                         |  |                                 |        |   |                                |   | (100    | )                       |  |   |        |   |  |      | (100    | ) |      |   | (100    | )    |  |   |        |   |  |   | 180     |  
|Total other income                                |  |                                 | 354     |   |                                |   | 370     |                         |  |   | 1,147   |   |  |      | 1,005   |   |      |   | 1,410   |      |  |   | 1,433   |   |  |   | 1,378   |  
|Total other expenses                              |  |                                 | 1,735   |   |                                |   | 1,787   |                         |  |   | 5,221   |   |  |      | 5,439   |   |      |   | 7,272   |      |  |   | 7,614   |   |  |   | 7,451   |  
|Income before income taxes                        |  |                                 | 656     |   |                                |   | 739     |                         |  |   | 2,125   |   |  |      | 1,849   |   |      |   | 2,515   |      |  |   | 2,648   |   |  |   | 2,804   |  
|Net income                                        |  |                                 | 522     |   |                                |   | 580     |                         |  |   | 1,669   |   |  |      | 1,501   |   |      |   | 2,036   |      |  |   | 2,144   |   |  |   | 2,262   |  
|PER SHARE DATA                                    |  |                                 |         |   |                                |   |         |                         |  |   |         |   |  |      |         |   |      |   |         |      |  |   |         |   |  |   |         |  
|Net income                                        |  | $                               | 0.34    |   |                                | $ | 0.38    |                         |  | $ | 1.09    |   |  | $    | 0.98    |   |      | $ | 1.33    |      |  | $ | 1.40    |   |  | $ | 1.48    |  
|Cash dividends declared                           |  |                                 | 0.19    |   |                                |   | 0.19    |                         |  |   | 0.57    |   |  |      | 0.57    |   |      |   | 0.76    |      |  |   | 0.76    |   |  |   | 0.76    |  
|Book value per share                              |  |                                 | 17.78   |   |                                |   | 17.13   |                         |  |   | 17.78   |   |  |      | 17.13   |   |      |   | 17.81   |      |  |   | 16.54   |   |  |   | 15.68   |  
|AVERAGE BALANCE SHEET SUMMARY                     |  |                                 |         |   |                                |   |         |                         |  |   |         |   |  |      |         |   |      |   |         |      |  |   |         |   |  |   |         |  
|Total loans, net                                  |  | $                               | 119,491 |   |                                | $ | 120,087 |                         |  | $ | 119,932 |   |  | $    | 120,022 |   |      | $ | 120,409 |      |  | $ | 129,997 |   |  | $ | 144,528 |  
|Investment securities                             |  |                                 | 111,161 |   |                                |   | 108,402 |                         |  |   | 107,646 |   |  |      | 110,468 |   |      |   | 109,278 |      |  |   | 109,533 |   |  |   | 102,882 |  
|Deposits - interest bearing                       |  |                                 | 184,540 |   |                                |   | 181,763 |                         |  |   | 182,146 |   |  |      | 183,466 |   |      |   | 182,682 |      |  |   | 190,160 |   |  |   | 200,902 |  
|Stockholders equity                              |  |                                 | 27,472  |   |                                |   | 26,264  |                         |  |   | 27,193  |   |  |      | 26,080  |   |      |   | 26,223  |      |  |   | 25,416  |   |  |   | 24,409  |  
|Total assets                                      |  |                                 | 262,155 |   |                                |   | 253,290 |                         |  |   | 257,701 |   |  |      | 253,335 |   |      |   | 253,930 |      |  |   | 262,946 |   |  |   | 270,500 |  
|SELECTED RATIOS                                   |  |                                 |         |   |                                |   |         |                         |  |   |         |   |  |      |         |   |      |   |         |      |  |   |         |   |  |   |         |  
|Return on average assets                          |  |                                 | 0.79    | % |                                |   | 0.91    | %                       |  |   | 0.87    | % |  |      | 0.79    | % |      |   | 0.80    | %    |  |   | 0.82    | % |  |   | 0.84    | %
|Return on average equity                          |  |                                 | 7.56    | % |                                |   | 8.76    | %                       |  |   | 8.20    | % |  |      | 7.69    | % |      |   | 7.76    | %    |  |   | 8.44    | % |  |   | 9.27    | %
|Average equity to average assets                  |  |                                 | 10.48   | % |                                |   | 10.37   | %                       |  |   | 10.55   | % |  |      | 10.29   | % |      |   | 10.33   | %    |  |   | 9.67    | % |  |   | 9.02    | %
|Dividend payout ratio                             |  |                                 | 55.88   | % |                                |   | 50.00   | %                       |  |   | 52.29   | % |  |      | 58.16   | % |      |   | 57.14   | %    |  |   | 54.29   | % |  |   | 51.35   | %
|Loan to Deposit ratio                             |  |                                 | 57.75   | % |                                |   | 58.59   | %                       |  |   | 57.75   | % |  |      | 58.59   | % |      |   | 59.93   | %    |  |   | 57.37   | % |  |   | 61.79   | %
|                                                  |  |                                 |         |  
|                                                  |  | (Unaudited)                     |         |   |                                |   |         |                         |  |   |         |  
|                                                  |  | September 30,                   |         |   | December 31,                   |   |         |                         | 
|                                                  |  | 2008                            |         |   | 2007                           |   |         | 2007                    |  |   | 2006    |   |  | 2005 |         |   |      |   |         |      | 
|BALANCE SHEET                                     |  |                                 |         |   |                                |   |         |                         |  |   |         |   |  |      |         |   |      |   |         |      |  |   |         |   |  |   |         |  
|Investments                                       |  | $                               | 107,506 |   |                                | $ | 105,045 |                         |  | $ | 106,647 |   |  | $    | 110,894 |   |      | $ | 107,998 |      |  |   |         |   |  |   |         |  
|Loans                                             |  |                                 | 121,220 |   |                                |   | 119,942 |                         |  |   | 121,739 |   |  |      | 120,709 |   |      |   | 135,214 |      |  |   |         |   |  |   |         |  
|Allowance for loan losses                         |  |                                 | (1,947  | ) |                                |   | (2,110  | )                       |  |   | (2,043  | ) |  |      | (2,297  | ) |      |   | (2,320  | )    |  |   |         |   |  |   |         |  
|Other assets                                      |  |                                 | 35,299  |   |                                |   | 32,794  |                         |  |   | 26,844  |   |  |      | 25,132  |   |      |   | 25,321  |      |  |   |         |   |  |   |         |  
|                                                  |  |                                 |         |   |                                |   |         |                         |  |   |         |   |  |      |         |   |      |   |         |      |  |   |         |   |  |   |         |  
|Total Assets                                      |  | $                               | 262,078 |   |                                | $ | 255,671 |                         |  | $ | 253,187 |   |  | $    | 254,438 |   |      | $ | 266,213 |      |  |   |         |   |  |   |         |  
|                                                  |  |                                 |         |   |                                |   |         |                         |  |   |         |   |  |      |         |   |      |   |         |      |  |   |         |   |  |   |         |  
|Deposits                                          |  | $                               | 209,891 |   |                                | $ | 204,713 |                         |  | $ | 203,127 |   |  | $    | 210,409 |   |      | $ | 218,817 |      |  |   |         |   |  |   |         |  
|Federal funds purchased and repurchase agreements |  |                                 | 12,739  |   |                                |   | 14,178  |                         |  |   | 12,196  |   |  |      | 15,240  |   |      |   | 19,084  |      |  |   |         |   |  |   |         |  
|FHLB borrowings                                   |  |                                 | 10,948  |   |                                |   | 9,310   |                         |  |   | 9,298   |   |  |      | 2,343   |   |      |   | 2,385   |      |  |   |         |   |  |   |         |  
|Long term debt                                    |  |                                 |        |   |                                |   |        |                         |  |   |        |   |  |      |        |   |      |   | 1,000   |      |  |   |         |   |  |   |         |  
|Other liabilities                                 |  |                                 | 1,323   |   |                                |   | 1,294   |                         |  |   | 1,351   |   |  |      | 1,169   |   |      |   | 968     |      |  |   |         |   |  |   |         |  
|Stockholders equity                              |  |                                 | 27,177  |   |                                |   | 26,176  |                         |  |   | 27,215  |   |  |      | 25,277  |   |      |   | 23,959  |      |  |   |         |   |  |   |         |  
|                                                  |  |                                 |         |   |                                |   |         |                         |  |   |         |   |  |      |         |   |      |   |         |      |  |   |         |   |  |   |         |  
|Total Liabilities and Stockholders equity        |  | $                               | 262,078 |   |                                | $ | 255,671 |                         |  | $ | 253,187 |   |  | $    | 254,438 |   |      | $ | 266,213 |      |  |   |         |   |  |   |         |  
|                                                  |  |                                 |         |   |                                |   |         |                         |  |   |         |   |  |      |         |   |      |   |         |      |  |   |         |   |  |   |         |  



PAGE 13



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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



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.

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 $1,669,463 or $1.09 per share for the nine months ended
September 30, 2008 compared to $1,501,031 or $.98 per share for the same period during 2007. The increase in net income for the nine months ended September 30, 2008 as compared to the same period in 2007 of $168,432 or 11.2% was primarily
the result of the increases in net interest income and noninterest income combined with the decrease in noninterest expenses and the increase in the provision for loan losses offset in part by the increase in income tax expense. As compared to the
same period in the prior year, net interest income increased $15,139 or .2%, primarily due to the increase in the income earned on investment securities and other interest income, offset in part by an increase in the interest expense paid on
interest bearing liabilities combined with the decline in the interest and fees earned on loans. Noninterest income increased $142,654 or 14.2% primarily due to the change in the gains (losses) on sales of investment securities combined with the
increase in other operating income, offset in part by the decrease in service charges and other fee income. Noninterest expenses declined $218,965 or 4.0% during the nine month period ended September 30, 2008 as compared to the same period in
2007 due to the decreases in salary and employee benefits expense and in other operating expenses, offset in part by a increase in occupancy expenses. The ROA was .87% for the nine months ended September 30, 2008 as compared to .79% for the
same period of the prior year. For the nine months ended September 30, 2008 compared to September 30, 2007, the ROE was 8.20% and 7.69%, respectively.

For the third quarter of 2008, net income was $521,905 or $.34 per share as compared to $579,613 or $.38 per share for the same period in 2007. The decrease in earnings was primarily due to decreases in net interest income and noninterest
income, offset in part by decreases in noninterest expenses and in income taxes and the increase in the provision for loan losses. Noninterest expenses were reduced $52,585 or 2.9% during the three month period ended September 30, 2008 as
compared to the same period in 2007 primarily due to the decreases in salary and employee benefits expense and other operating expenses, offset in part by the increase in occupancy expenses. Net interest income decreased $19,524 or 1.0% primarily
due to the decrease in the interest earned on loans, offset in part by an increase in the interest earned on investment securities and the decrease in the interest paid on interest bearing liabilities. The decline in noninterest income was primarily
due to the decrease in service charges and other fee income combined with change in the gains (losses) on sales of investment securities, offset in part by the increase in other operating income. The ROA was .79% for the three months ended
September 30, 2008 as compared to .91% for the same period of the prior year. For the three months ended September 30, 2008 compared to September 30, 2007, the ROE was 7.56% and 8.76%, respectively.

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



PAGE 14



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##### Table of Contents

First West Virginia Bancorp, Inc.

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



EARNINGS ANALYSIS - For the nine months ended September 30, 2008

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 Two presents the average balance sheets and an interest rate analysis for the nine months ended September 30, 2008 and 2007 and the year ended December 31,
2007.

For the nine months ended September 30, 2008, net interest income was $6,198,500, an increase of $15,139 or .2%, from the same period in 2007.
Net interest income rose primarily due to the increase in average volume of earning assets offset in part by the decline in the taxable equivalent yield on earning assets. The average earning assets increased approximately $4.3 million or 1.8% from
September 30, 2007 to 2008. The taxable equivalent net yield on earning assets decreased from 3.88% at September 30, 2007 to 3.80% at September 30, 2008.

Interest income on investment securities during the first nine months of 2008 increased $172,149 or 4.5% as compared to the same period of the prior year. The increase in interest income on investment securities
during the first nine months of 2008 was primarily due to the rise in the yields earned which was partially offset by a decline in the average volume. The taxable equivalent yield on investment securities rose 32 basis points in 2008, from 5.10% at
December 31, 2007 to 5.42% at September 30, 2008 and increased 32 basis points from September 30, 2007. The average volume of investment securities have decreased approximately $2.8 million or 2.6% since September 30, 2007.

Interest and fees on loans decreased $180,417 or 2.9%, from the same period in 2007 due to the decline in the average yield on loans, offset in part by
the increase in the average loan volume. The taxable equivalent yield on loans fell 24 basis points in 2008 from 7.20% at December 31, 2007 to 6.96% at September 30, 2008 and fell 22 basis points from September 30, 2007. The average
loan volume fell approximately $.1 million or .1% since September 30, 2007.

During the nine months ended September 30, 2008, interest expense
decreased $52,291 or 1.3% as compared to the same period in 2007. The decline in the yield paid on interest bearing liabilities, offset in part by the increase in the average volume primarily contributed to the decrease in interest expense during
the nine month period ended September 30, 2008. The average yield paid on interest bearing liabilities fell 9 basis points from 2.69% at December 31, 2007 to 2.60% at September 30, 2008.

Noninterest Income

Noninterest income increased $142,654 or
14.2% for the nine months ended September 30, 2008 as compared to same period of the prior year. The increase in noninterest income was primarily due to the change in the net gains (losses) on sales of investment securities combined with the
increase in other operating income, partially offset by a decline in service charges and other fee income.

The net gains (losses) on investment securities
increased $161,870 or 311.5% for the nine month period ended September 30, 2008 as compared to the same period in 2007. The increase in net gains (losses) on sales of investment securities was primarily attributable to sales recorded by the
Company and its subsidiary bank. The Companys subsidiary bank sold approximately $6.9 million of investment securities during the first quarter of 2008 to take advantage of reinvestment opportunities within the current market interest rate
environment. A net gain was recorded related to those sales of investment securities and amounted to $112,713. During the first quarter of 2007, the Companys subsidiary bank sold approximately $4.2 million of lower yielding taxable investment
securities to purchase higher yielding taxable investment securities to improve the overall long-term average yield. A loss was incurred related to those sales of investment securities and amounted to $54,673. The Company elected to take the loss in
the short-term in order to take advantage of the higher yields offered at the time these investment purchases were made as well as improving the long-term earnings. The Company accounted for securities gains of $114,687 and securities losses of
$4,778 during the nine month period ended September 30, 2008 and securities gains of $6,904 and securities losses of $58,865 during the nine month period ended September 30, 2007.



PAGE 15



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##### Table of Contents

First West Virginia Bancorp, Inc.

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



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

The following table presents an average balance sheet, interest earned on interest bearing assets, interest paid on interest bearing liabilities, average interest
rates and interest differentials for the nine months ended September 30, 2008 and 2007 and the year ended December 31, 2007. Average balance sheet information for the periods ended September 30, 2008 and 2007 and December 31,
2007 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)                                 |         |   |                   |   |             |                                             |      |               |  |   | (Unaudited) |  
|                                                  |  | For the nine months endedSeptember 30, 2008 |         |   | December 31, 2007 |   |             | For the nine months endedSeptember 30, 2007 |     
|                                                  |  | AverageVolume                               |         |   | Interest          |   | AverageRate |                                             |      | AverageVolume |  |   | Interest    |   | AverageRate |   |        | AverageVolume |      |   | Interest |   | AverageRate |  
|ASSETS:                                           |  |                                             |         |   |                   |   |             |                                             |      |               |  |   |             |   |             |   |        |               |      |   |          |   |             |   |  |   |        |  |      |  
|Investment securities:                            |  |                                             |         |   |                   |   |             |                                             |      |               |  |   |             |   |             |   |        |               |      |   |          |   |             |   |  |   |        |  |      |  
|U.S. Treasury and U.S. Government agencies        |  | $                                           | 22,891  |   |                   | $ | 867         |                                             | 5.06 | %             |  | $ | 31,375      |   |             | $ | 1,333  |               | 4.25 | % |          | $ | 32,178      |   |  | $ | 1,028  |  | 4.27 | %
|Mortgage backed securities                        |  |                                             | 62,819  |   |                   |   | 2,443       |                                             | 5.19 | %             |  |   | 54,359      |   |             |   | 2,776  |               | 5.11 | % |          |   | 54,577      |   |  |   | 2,086  |  | 5.11 | %
|States and political subdivisions                 |  |                                             | 20,774  |   |                   |   | 608         |                                             | 3.91 | %             |  |   | 23,196      |   |             |   | 887    |               | 3.82 | % |          |   | 23,362      |   |  |   | 667    |  | 3.82 | %
|Other securities                                  |  |                                             | 1,162   |   |                   |   | 47          |                                             | 5.40 | %             |  |   | 348         |   |             |   | 23     |               | 6.61 | % |          |   | 351         |   |  |   | 12     |  | 4.57 | %
|                                                  |  |                                             |         |   |                   |   |             |                                             |      |               |  |   |             |   |             |   |        |               |      |   |          |   |             |   |  |   |        |  |      |  
|Total Investment securities:                      |  |                                             | 107,646 |   |                   |   | 3,965       |                                             | 4.92 | %             |  |   | 109,278     |   |             |   | 5,019  |               | 4.59 | % |          |   | 110,468     |   |  |   | 3,793  |  | 4.59 | %
|Interest bearing deposits                         |  |                                             | 3,873   |   |                   |   | 66          |                                             | 2.28 | %             |  |   | 1,779       |   |             |   | 84     |               | 4.72 | % |          |   | 917         |   |  |   | 35     |  | 5.10 | %
|Federal funds sold                                |  |                                             | 9,029   |   |                   |   | 136         |                                             | 2.01 | %             |  |   | 5,582       |   |             |   | 274    |               | 4.91 | % |          |   | 5,131       |   |  |   | 195    |  | 5.08 | %
|Loans, net of unearned income                     |  |                                             | 119,932 |   |                   |   | 5,971       |                                             | 6.65 | %             |  |   | 120,409     |   |             |   | 8,273  |               | 6.87 | % |          |   | 120,022     |   |  |   | 6,152  |  | 6.85 | %
|Other earning assets                              |  |                                             | 1,316   |   |                   |   | 41          |                                             | 4.16 | %             |  |   | 1,051       |   |             |   | 58     |               | 5.52 | % |          |   | 998         |   |  |   | 41     |  | 5.49 | %
|                                                  |  |                                             |         |   |                   |   |             |                                             |      |               |  |   |             |   |             |   |        |               |      |   |          |   |             |   |  |   |        |  |      |  
|Total earning assets                              |  |                                             | 241,796 |   |                   |   | 10,179      |                                             | 5.62 | %             |  |   | 238,099     |   |             |   | 13,708 |               | 5.76 | % |          |   | 237,536     |   |  |   | 10,216 |  | 5.75 | %
|Other assets                                      |  |                                             | 17,891  |   |                   |   |             |                                             |      |               |  |   | 17,873      |   |             |   |        |               |      |   |          |   | 18,053      |   |  |   |        |  |      |  
|Allowance for loan losses                         |  |                                             | (1,986  | ) |                   |   |             |                                             |      |               |  |   | (2,042      | ) |             |   |        |               |      |   |          |   | (2,254      | ) |  |   |        |  |      |  
|                                                  |  |                                             |         |   |                   |   |             |                                             |      |               |  |   |             |   |             |   |        |               |      |   |          |   |             |   |  |   |        |  |      |  
|Total Assets                                      |  | $                                           | 257,701 |   |                   |   |             |                                             |      |               |  | $ | 253,930     |   |             |   |        |               |      |   |          | $ | 253,335     |   |  |   |        |  |      |  
|                                                  |  |                                             |         |   |                   |   |             |                                             |      |               |  |   |             |   |             |   |        |               |      |   |          |   |             |   |  |   |        |  |      |  
|LIABILITIES                                       |  |                                             |         |   |                   |   |             |                                             |      |               |  |   |             |   |             |   |        |               |      |   |          |   |             |   |  |   |        |  |      |  
|Time deposits                                     |  | $                                           | 95,272  |   |                   | $ | 3,033       |                                             | 4.25 | %             |  | $ | 95,603      |   |             | $ | 4,130  |               | 4.32 | % |          | $ | 95,913      |   |  | $ | 3,084  |  | 4.30 | %
|Savings deposits                                  |  |                                             | 52,085  |   |                   |   | 329         |                                             | 0.84 | %             |  |   | 52,513      |   |             |   | 415    |               | 0.79 | % |          |   | 53,106      |   |  |   | 312    |  | 0.79 | %
|Interest bearing demand deposits                  |  |                                             | 34,789  |   |                   |   | 111         |                                             | 0.43 | %             |  |   | 34,566      |   |             |   | 135    |               | 0.39 | % |          |   | 34,447      |   |  |   | 98     |  | 0.38 | %
|Federal funds purchased and repurchase agreements |  |                                             | 11,990  |   |                   |   | 131         |                                             | 1.46 | %             |  |   | 14,086      |   |             |   | 486    |               | 3.45 | % |          |   | 14,349      |   |  |   | 391    |  | 3.64 | %
|FHLB and other long-term borrowings               |  |                                             | 9,965   |   |                   |   | 376         |                                             | 5.04 | %             |  |   | 5,351       |   |             |   | 265    |               | 4.95 | % |          |   | 4,018       |   |  |   | 148    |  | 4.92 | %
|                                                  |  |                                             |         |   |                   |   |             |                                             |      |               |  |   |             |   |             |   |        |               |      |   |          |   |             |   |  |   |        |  |      |  
|Total interest bearing liabilities                |  |                                             | 204,101 |   |                   |   | 3,980       |                                             | 2.60 | %             |  |   | 202,119     |   |             |   | 5,431  |               | 2.69 | % |          |   | 201,833     |   |  |   | 4,033  |  | 2.67 | %
|Demand deposits                                   |  |                                             | 25,004  |   |                   |   |             |                                             |      |               |  |   | 24,321      |   |             |   |        |               |      |   |          |   | 24,192      |   |  |   |        |  |      |  
|Other liabilities                                 |  |                                             | 1,403   |   |                   |   |             |                                             |      |               |  |   | 1,267       |   |             |   |        |               |      |   |          |   | 1,230       |   |  |   |        |  |      |  
|                                                  |  |                                             |         |   |                   |   |             |                                             |      |               |  |   |             |   |             |   |        |               |      |   |          |   |             |   |  |   |        |  |      |  
|Total Liabilities                                 |  |                                             | 230,508 |   |                   |   |             |                                             |      |               |  |   | 227,707     |   |             |   |        |               |      |   |          |   | 227,255     |   |  |   |        |  |      |  
|STOCKHOLDERS EQUITY                              |  |                                             | 27,193  |   |                   |   |             |                                             |      |               |  |   | 26,223      |   |             |   |        |               |      |   |          |   | 26,080      |   |  |   |        |  |      |  
|                                                  |  |                                             |         |   |                   |   |             |                                             |      |               |  |   |             |   |             |   |        |               |      |   |          |   |             |   |  |   |        |  |      |  
|Total Liabilities and Stockholders Equity        |  | $                                           | 257,701 |   |                   |   |             |                                             |      |               |  | $ | 253,930     |   |             |   |        |               |      |   |          | $ | 253,335     |   |  |   |        |  |      |  
|                                                  |  |                                             |         |   |                   |   |             |                                             |      |               |  |   |             |   |             |   |        |               |      |   |          |   |             |   |  |   |        |  |      |  
|Net yield on earning assets                       |  |                                             |         |   |                   | $ | 6,199       |                                             | 3.42 | %             |  |   |             |   |             | $ | 8,277  |               | 3.48 | % |          |   |             |   |  | $ | 6,183  |  | 3.48 | %
|                                                  |  |                                             |         |   |                   |   |             |                                             |      |               |  |   |             |   |             |   |        |               |      |   |          |   |             |   |  |   |        |  |      |  

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 nine months ended September 30, 2008 and 2007, and the year ended December 31, 2007, respectively. The effect of this adjustment is presented
below.



|                                               |  |   |         |  |   |        |  |      |   |  |   |         |  |   |        |  |      |   |  |   |         |  |   |        |  |      |  
|---------------------------------------------- |  | - | ------- |  | - | ------ |  | ---- | - |  | - | ------- |  | - | ------ |  | ---- | - |  | - | ------- |  | - | ------ |  | ---- | -
|Investment securities                          |  | $ | 107,646 |  | $ | 4,370  |  | 5.42 | % |  | $ | 109,278 |  | $ | 5,578  |  | 5.10 | % |  | $ | 110,468 |  | $ | 4,216  |  | 5.10 | %
|Loans                                          |  |   | 119,932 |  |   | 6,247  |  | 6.96 | % |  |   | 120,409 |  |   | 8,664  |  | 7.20 | % |  |   | 120,022 |  |   | 6,445  |  | 7.18 | %
|                                               |  |   |         |  |   |        |  |      |   |  |   |         |  |   |        |  |      |   |  |   |         |  |   |        |  |      |  
|Total earning assets                           |  | $ | 241,796 |  | $ | 10,860 |  | 6.00 | % |  | $ | 238,099 |  | $ | 14,658 |  | 6.16 | % |  | $ | 237,536 |  | $ | 10,932 |  | 6.15 | %
|                                               |  |   |         |  |   |        |  |      |   |  |   |         |  |   |        |  |      |   |  |   |         |  |   |        |  |      |  
|Taxable equivalent net yield on earning assets |  |   |         |  | $ | 6,880  |  | 3.80 | % |  |   |         |  | $ | 9,227  |  | 3.88 | % |  |   |         |  | $ | 6,899  |  | 3.88 | %
|                                               |  |   |         |  |   |        |  |      |   |  |   |         |  |   |        |  |      |   |  |   |         |  |   |        |  |      |  



PAGE 16



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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 nine months ended September 30, 2008 (Continued)



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 nine month period ended September 30, 2008, other operating income increased $53,790 or 14.6% compared to the same period in 2007. The increase in other operating income during the nine month period ended
September 30, 2008 as compared to the same period in the prior year was primarily due to increases in ATM fees, credit card fees, filing fee income and an increase in the earnings related to the cash surrender value of the bank owned life
insurance on its key officers, offset in part by declines in safe deposit box rents, utility bill and collection fees, checkbook sales and credit life commissions and other miscellaneous income.

Noninterest Expense

Noninterest expense decreased $218,965 or
4.0% for the nine months ended September 30, 2008 as compared to same period of the prior year. The decrease in noninterest expense was primarily due to decreases in salary and employee benefits expenses and other operating expenses, offset in
part by an increase in occupancy expenses.

Salary and employee benefits decreased $212,344 or 7.2% during the nine months ended September 30, 2008
over the same period in 2007. Salary and employee benefit expense in 2008 compared to 2007 decreased primarily as a result of the decline in salary expenses combined with the reduction in employee benefits expense.

Other operating expense decreased $99,354, or 6.0%, compared to the same period of the prior year. The decline in other operating expenses was attributable primarily to
a reduction in directors fees, advertising expenses, postage and transportation expenses, service expenses, other expense, and regulatory assessments, offset in part by increases in stationery and supplies expenses and other taxes.

Other operating expenses for the nine months ended September 30 included the following:



|                                            |  |      |           |      |   |          
|------------------------------------------- |  | ---- | --------- | ---- | - | ---------
|Unaudited                                   |  | 2008 |           | 2007
|Directors fees                             |  | $    | 97,400    |      | $ | 99,700   
|Stationery and supplies                     |  |      | 160,678   |      |   | 104,894  
|Regulatory assessment and deposit insurance |  |      | 79,636    |      |   | 80,762   
|Advertising                                 |  |      | 62,307    |      |   | 136,531  
|Postage and transportation                  |  |      | 125,372   |      |   | 142,432  
|Other taxes                                 |  |      | 150,494   |      |   | 142,644  
|Service expense                             |  |      | 310,061   |      |   | 344,824  
|Other                                       |  |      | 583,888   |      |   | 617,403  
|                                            |  |      |           |      |   |          
|Total                                       |  | $    | 1,569,836 |      | $ | 1,669,190
|                                            |  |      |           |      |   |          

Net occupancy expenses of premises increased $92,733 or 11.2% during the nine months ended September 30, 2008
compared to the same period in 2007. The increase in furniture and fixture and building depreciation expenses and the increase in expenses for other real estate owned property, offset in part by the reduction in lease expenses due to the closure of
the subsidiary banks supermarket branch office contributed to the increase in occupancy expenses in 2008 as compared to 2007.

Income Taxes

Income tax expense for the nine month period ended September 30, 2008 was $455,939, increasing 31.2% compared to the same period in 2007.
Income tax expense increased primarily due to the increase in pre-taxable income of $276,758, offset in part by the decrease in tax-exempt income during the first nine months of 2008 over the same period in 2007. Components of the income tax expense
for September 30, 2008 were $368,418 for federal taxes and $87,521 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
nine months ended September 30, 2008 and 2007 and for the year ended December 31, 2007.



PAGE 17



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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 Three 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 September 30, 2008 and 2007. Average balance sheet information for the periods ended September 30, 2008 and 2007 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. Average rates were annualized for the three month periods ended September 30, 2008 and 2007.



|                                                  |  |                                                         |         |   |                                                         |   |             |  |      |               |  |   |          |   |             |   |       |  |      |  
|------------------------------------------------- |  | ------------------------------------------------------- | ------- | - | ------------------------------------------------------- | - | ----------- |  | ---- | ------------- |  | - | -------- | - | ----------- | - | ----- |  | ---- | -
|                                                  |  | (Unaudited)For the three months
endedSeptember 30, 2008 |         |   | (Unaudited)For the three months
endedSeptember 30, 2007 |  
|                                                  |  | AverageVolume                                           |         |   | Interest                                                |   | AverageRate |  |      | AverageVolume |  |   | Interest |   | AverageRate |  
|ASSETS:                                           |  |                                                         |         |   |                                                         |   |             |  |      |               |  |   |          |   |             |   |       |  |      |  
|Investment securities:                            |  |                                                         |         |   |                                                         |   |             |  |      |               |  |   |          |   |             |   |       |  |      |  
|U.S. Treasury and other U.S. Government agencies  |  | $                                                       | 23,625  |   |                                                         | $ | 274         |  | 4.61 | %             |  | $ | 30,829   |   |             | $ | 326   |  | 4.20 | %
|Mortgage backed securities                        |  |                                                         | 65,995  |   |                                                         |   | 858         |  | 5.17 | %             |  |   | 54,136   |   |             |   | 693   |  | 5.08 | %
|Obligations of states and political subdivisions  |  |                                                         | 19,731  |   |                                                         |   | 193         |  | 3.89 | %             |  |   | 23,090   |   |             |   | 223   |  | 3.83 | %
|Other securities                                  |  |                                                         | 1,810   |   |                                                         |   | 25          |  | 5.49 | %             |  |   | 347      |   |             |   | 4     |  | 4.57 | %
|                                                  |  |                                                         |         |   |                                                         |   |             |  |      |               |  |   |          |   |             |   |       |  |      |  
|Total Investment securities:                      |  |                                                         | 111,161 |   |                                                         |   | 1,350       |  | 4.83 | %             |  |   | 108,402  |   |             |   | 1,246 |  | 4.56 | %
|Interest bearing deposits                         |  |                                                         | 3,664   |   |                                                         |   | 17          |  | 1.85 | %             |  |   | 1,239    |   |             |   | 16    |  | 5.12 | %
|Federal funds sold                                |  |                                                         | 10,092  |   |                                                         |   | 39          |  | 1.54 | %             |  |   | 6,021    |   |             |   | 73    |  | 4.81 | %
|Loans, net of unearned income                     |  |                                                         | 119,491 |   |                                                         |   | 1,948       |  | 6.49 | %             |  |   | 120,087  |   |             |   | 2,105 |  | 6.95 | %
|Other earning assets                              |  |                                                         | 1,449   |   |                                                         |   | 13          |  | 3.57 | %             |  |   | 1,143    |   |             |   | 14    |  | 4.86 | %
|                                                  |  |                                                         |         |   |                                                         |   |             |  |      |               |  |   |          |   |             |   |       |  |      |  
|Total earning assets                              |  |                                                         | 245,857 |   |                                                         |   | 3,367       |  | 5.45 | %             |  |   | 236,892  |   |             |   | 3,454 |  | 5.78 | %
|Other assets                                      |  |                                                         | 18,243  |   |                                                         |   |             |  |      |               |  |   | 18,611   |   |             |   |       |  |      |  
|Allowance for loan losses                         |  |                                                         | (1,945  | ) |                                                         |   |             |  |      |               |  |   | (2,213   | ) |             |   |       |  |      |  
|                                                  |  |                                                         |         |   |                                                         |   |             |  |      |               |  |   |          |   |             |   |       |  |      |  
|Total Assets                                      |  | $                                                       | 262,155 |   |                                                         |   |             |  |      |               |  | $ | 253,290  |   |             |   |       |  |      |  
|                                                  |  |                                                         |         |   |                                                         |   |             |  |      |               |  |   |          |   |             |   |       |  |      |  
|LIABILITIES                                       |  |                                                         |         |   |                                                         |   |             |  |      |               |  |   |          |   |             |   |       |  |      |  
|Time deposits                                     |  | $                                                       | 94,896  |   |                                                         | $ | 982         |  | 4.12 | %             |  | $ | 95,584   |   |             | $ | 1,045 |  | 4.34 | %
|Savings deposits                                  |  |                                                         | 53,568  |   |                                                         |   | 122         |  | 0.91 | %             |  |   | 51,964   |   |             |   | 102   |  | 0.78 | %
|Interest bearing demand deposits                  |  |                                                         | 36,076  |   |                                                         |   | 46          |  | 0.51 | %             |  |   | 34,215   |   |             |   | 39    |  | 0.45 | %
|Federal funds purchased and repurchase agreements |  |                                                         | 12,640  |   |                                                         |   | 42          |  | 1.32 | %             |  |   | 13,278   |   |             |   | 119   |  | 3.56 | %
|FHLB and other long-term borrowings               |  |                                                         | 10,957  |   |                                                         |   | 138         |  | 5.01 | %             |  |   | 7,337    |   |             |   | 93    |  | 5.03 | %
|                                                  |  |                                                         |         |   |                                                         |   |             |  |      |               |  |   |          |   |             |   |       |  |      |  
|Total interest bearing liabilities                |  |                                                         | 208,137 |   |                                                         |   | 1,330       |  | 2.54 | %             |  |   | 202,378  |   |             |   | 1,398 |  | 2.74 | %
|Demand deposits                                   |  |                                                         | 25,280  |   |                                                         |   |             |  |      |               |  |   | 23,344   |   |             |   |       |  |      |  
|Other liabilities                                 |  |                                                         | 1,266   |   |                                                         |   |             |  |      |               |  |   | 1,304    |   |             |   |       |  |      |  
|                                                  |  |                                                         |         |   |                                                         |   |             |  |      |               |  |   |          |   |             |   |       |  |      |  
|Total Liabilities                                 |  |                                                         | 234,683 |   |                                                         |   |             |  |      |               |  |   | 227,026  |   |             |   |       |  |      |  
|STOCKHOLDERS EQUITY                              |  |                                                         | 27,472  |   |                                                         |   |             |  |      |               |  |   | 26,264   |   |             |   |       |  |      |  
|                                                  |  |                                                         |         |   |                                                         |   |             |  |      |               |  |   |          |   |             |   |       |  |      |  
|Total Liabilities and Stockholders Equity        |  | $                                                       | 262,155 |   |                                                         |   |             |  |      |               |  | $ | 253,290  |   |             |   |       |  |      |  
|                                                  |  |                                                         |         |   |                                                         |   |             |  |      |               |  |   |          |   |             |   |       |  |      |  
|Net yield on earning assets                       |  |                                                         |         |   |                                                         | $ | 2,037       |  | 3.30 | %             |  |   |          |   |             | $ | 2,056 |  | 3.44 | %
|                                                  |  |                                                         |         |   |                                                         |   |             |  |      |               |  |   |          |   |             |   |       |  |      |  

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 September 30, 2008 and 2007, respectively. The effect of this adjustment is presented below.



|                                               |  |   |         |  |   |       |  |      |   |  |   |         |  |   |       |  |      |  
|---------------------------------------------- |  | - | ------- |  | - | ----- |  | ---- | - |  | - | ------- |  | - | ----- |  | ---- | -
|Investment securities                          |  | $ | 111,161 |  | $ | 1,513 |  | 5.41 | % |  | $ | 108,402 |  | $ | 1,385 |  | 5.07 | %
|Loans                                          |  |   | 119,491 |  |   | 2,042 |  | 6.80 | % |  |   | 120,087 |  |   | 2,205 |  | 7.28 | %
|                                               |  |   |         |  |   |       |  |      |   |  |   |         |  |   |       |  |      |  
|Total earning assets                           |  | $ | 245,857 |  | $ | 3,624 |  | 5.86 | % |  | $ | 236,892 |  | $ | 3,693 |  | 6.18 | %
|                                               |  |   |         |  |   |       |  |      |   |  |   |         |  |   |       |  |      |  
|Taxable equivalent net yield on earning assets |  |   |         |  | $ | 2,294 |  | 3.71 | % |  |   |         |  | $ | 2,295 |  | 3.84 | %
|                                               |  |   |         |  |   |       |  |      |   |  |   |         |  |   |       |  |      |  



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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 September 30, 2008

Net Interest Income

For the three months ended
September 30, 2008, net interest income was $2,036,993, decreasing $19,524 or 1.0%, from the same period in 2007. The decrease in net interest income was primarily due to the decrease in the interest earned on loans, offset in part by the
increase in the interest earned on investment securities and the decrease in the interest paid on interest bearing liabilities. The taxable equivalent net yield on earnings assets decreased from 3.84% at September 30, 2007 to 3.71% at
September 30, 2008. Table Three presents the average balance sheets and an interest rate analysis for three months ended September 30, 2008 and 2007.

Interest and fees on loans decreased $157,104 or 7.5% for the three month period ended September 30, 2008 as compared to the same period in 2007 due to the decline in the average yield on loans. The taxable equivalent yield on loans
fell 40 basis points, to 6.80% at September 30, 2008 from 7.20% at December 31, 2007 and decreased 48 basis points from September 30, 2007.

Interest income on investment securities increased $118,663 or 9.5% during the third quarter of 2008 compared to the same period of the prior year. The increase in interest income on investment securities was primarily due to the rise in
the average yield earned. The taxable equivalent yield earned on investment securities rose 34 basis points, to 5.41% for the three months ended September 30, 2008 as compared to 5.07% for the same period in 2007.

Interest expense paid on deposit liabilities fell $67,890 or 4.9% during the three months ended September 30, 2008 as compared to the same period in 2007. The
decline 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 average balances. The average yield paid on interest bearing liabilities was down 20
basis points, from 2.74% at September 30, 2007 to 2.54% at September 30, 2008. The average volume of interest bearing liabilities rose approximately $5.8 million or 2.8%, from September 30, 2007 to September 30, 2008 primarily
due to an increase in Federal Home Loan Bank borrowings and in savings deposits and interest bearing deposit balances, offset in part by the decline in the balances maintained in certificate of deposit accounts and repurchase agreements.

Noninterest Income

Noninterest income decreased $16,124 or
4.4% for the three months ended September 30, 2008 as compared to same period of the prior year. The decrease in noninterest income was primarily due to the decreases in service charges and other fee income and the change in the net gains
(losses) on sales of investment securities, offset in part by the increase in other operating income.

Service charges decreased $35,883 during the three
months ended September 30, 2008, down 15.1%, from the same period in 2007. The decline in service charges and other fee income was primarily due to decreases in overdraft fees, service fees assessed on deposit accounts.

The Company accounted for securities gains of $175 and securities losses of $2,256 during the three month period ended September 30, 2008 and securities gains of
$333 and securities losses of $938 during the same period in 2007.

For the third quarter of 2008, other operating income increased $21,235 or 16.0% as
compared to same period of the prior year. The increase in other operating income during the three month period ended September 30, 2008 as compared to the same period in the prior year was primarily due to increases in ATM fees, credit card
fees, filing fee income, and an increase in earnings related to the cash surrender value of the bank owned life insurance on its key officers, offset in part by declines in sales of checkbooks, utility bill and collection fees and other
miscellaneous income.

Noninterest Expense

Noninterest expense decreased $52,585 or 2.9% for the three months ended September 30, 2008 as compared to same period of the prior year. The decrease in noninterest expense was primarily due to decreases in salary and employee
benefits and in other operating expenses, offset in part by an increases in occupancy expenses of premises.

Salary and employee benefits decreased $60,513
or 6.3% during the three months ended September 30, 2008 over the same period in 2007. The decrease in salary and employee benefit expense in 2008 compared to 2007 was primarily due to the decline in salary expenses combined with the reduction
in employee benefits expenses.

Other operating expense decreased $35,246, or 6.3%, compared to the same period of the prior year. The decrease in other
operating expenses during the three month period ended September 30, 2008 as compared to 2007 was attributable primarily due to the decreases in director fees, advertising expenses, postage and transportation expenses, service expense, and in
other expenses, which were offset in part by increases in stationery and supplies expenses, regulatory assessments, and other taxes,

Net occupancy
expenses of premises increased $43,174 or 16.3% during the three months ended September 30, 2008 compared to the same period in 2007. The increase in occupancy expenses was primarily due to increases in furniture and fixture depreciation
expenses and maintenance expenses and the increase in expenses for other real estate owned property, offset in part by the reduction in banking premises expenses.



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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



Other operating expenses for the three months ended September 30 included the following:



|                                            |  |      |         |      |   |        
|------------------------------------------- |  | ---- | ------- | ---- | - | -------
|Unaudited                                   |  | 2008 |         | 2007
|Directors fees                             |  | $    | 30,125  |      | $ | 31,975 
|Stationery and supplies                     |  |      | 54,539  |      |   | 31,268 
|Regulatory assessment and deposit insurance |  |      | 28,631  |      |   | 26,706 
|Advertising                                 |  |      | 20,569  |      |   | 36,839 
|Postage and transportation                  |  |      | 43,839  |      |   | 49,585 
|Other taxes                                 |  |      | 50,396  |      |   | 48,949 
|Service expense                             |  |      | 102,068 |      |   | 118,354
|Other                                       |  |      | 194,943 |      |   | 216,680
|                                            |  |      |         |      |   |        
|Total                                       |  | $    | 525,110 |      | $ | 560,356
|                                            |  |      |         |      |   |        

Income Taxes

Income tax expense for the three month period ended September 30, 2008 was $133,732, decreasing 15.9% compared to the same period in 2007. Income tax expense decreased primarily due to the decrease in pre-taxable income during the
three month period ended September 30, 2008 over the same period in 2007. Components of the income tax expense for the three months ended September 30, 2008 were $106,886 for federal taxes and $26,846 for West Virginia corporate net income
taxes.

Balance Sheet Analysis

Investments

Investment securities increased approximately $.9 million or .8% from December 31, 2007 to September 30, 2008.
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. Treasury securities, U.S. Government agency and corporation securities,
obligations of states and political subdivisions, mortgage-backed securities and equity securities. Taxable securities comprised 83.3% of total securities at September 30, 2008, as compared to 79.5% at December 31, 2007. Other than the
normal risks inherent in purchasing U.S. Treasury securities, U.S. Government agency and corporation securities, and obligations of states and political subdivisions, i.e., interest rate risk, management has no knowledge of other market or credit
risk involved in these investments. The Company does not have any high risk hybrid/derivative instruments.

Investment securities that are classified
available for sale are available for sale at any time based upon managements assessment of changes in economic or financial market conditions. These securities are carried at fair value and the unrealized holding gains and losses, net of
taxes, are reflected as a separate component of stockholders equity until realized. As the investment portfolio consists primarily of fixed rate debt securities, changes in the market rates of interest will effect the carrying value of
securities available for sale, adjusted upward or downward under the requirements of FAS 115 and represent temporary adjustments in values. The carrying value of securities available for sale was below book value by $741,175 at September 30,
2008 and was above book value by $598,473 at December 31, 2007, respectively. The fair value of securities classified as held to maturity was above book value by $6,097 and $11,668 at September 30, 2008 and December 31, 2007,
respectively.

Table Four - Investment Portfolio

The
following table presents the book values of investment securities.



|                                                                                      |  |                              |         |                  |   |        
|------------------------------------------------------------------------------------- |  | ---------------------------- | ------- | ---------------- | - | -------
|(dollars in thousands)                                                                |  | (Unaudited)September 30,2008 |         | December 31,2007
|Securities held-to-maturity:                                                          |  |                              |         |                  |   |        
|Obligations of states and political subdivisions                                      |  | $                            | 500     |                  | $ | 664    
|                                                                                      |  |                              |         |                  |   |        
|Total held-to-maturity                                                                |  |                              | 500     |                  |   | 664    
|                                                                                      |  |                              |         |                  |   |        
|Securities available-for-sale:                                                        |  |                              |         |                  |   |        
|U.S. Treasury securities and obligations of U.S. Government corporations and agencies |  |                              | 21,508  |                  |   | 26,477 
|Obligations of states and political subdivisions                                      |  |                              | 18,483  |                  |   | 22,153 
|Corporate debt securities                                                             |  |                              | 1,214   |                  |   |       
|Mortgage-backed securities                                                            |  |                              | 65,538  |                  |   | 57,001 
|Equity securities                                                                     |  |                              | 263     |                  |   | 352    
|                                                                                      |  |                              |         |                  |   |        
|Total available-for-sale                                                              |  |                              | 107,006 |                  |   | 105,983
|                                                                                      |  |                              |         |                  |   |        
|Total                                                                                 |  | $                            | 107,506 |                  | $ | 106,647
|                                                                                      |  |                              |         |                  |   |        



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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 Five - Information on unrealized losses of investment securities

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 September 30, 2008:



|                                                                       |  |                                            |        |                       |                         |        |           |       |                       |     |  |           |    |                       |  |   |        |  |   |        |  
|---------------------------------------------------------------------- |  | ------------------------------------------ | ------ | --------------------- | ----------------------- | ------ | --------- | ----- | --------------------- | --- |  | --------- | -- | --------------------- |  | - | ------ |  | - | ------ | -
|                                                                       |  | (Expressed in thousands)September 30,
2008 |       
|                                                                       |  | Less than TwelveMonths                     |        |                       | Twelve Months orGreater |        |           | Total |                      
|                                                                       |  | FairValue                                  |        | GrossUnrealizedLosses |                         |        | FairValue |       | GrossUnrealizedLosses |     |  | FairValue |    | GrossUnrealizedLosses | 
|U.S. Treasury securities and U.S. Government corporations and agencies |  | $                                          | 15,886 |                       | $                       | (102   | )         |       | $                     |    |  | $         |   |                       |  | $ | 15,886 |  | $ | (102   | )
|Obligations of states and political subdivisions                       |  |                                            | 12,199 |                       |                         | (533   | )         |       |                       |    |  |           |   |                       |  |   | 12,199 |  |   | (533   | )
|Corporate debt securities                                              |  |                                            | 1,214  |                       |                         | (291   | )         |       |                       |    |  |           |   |                       |  |   | 1,214  |  |   | (291   | )
|Mortgage-backed securities                                             |  |                                            | 26,894 |                       |                         | (255   | )         |       |                       | 763 |  |           | (6 | )                     |  |   | 27,657 |  |   | (261   | )
|                                                                       |  |                                            |        |                       |                         |        |           |       |                       |     |  |           |    |                       |  |   |        |  |   |        |  
|Total debt securities                                                  |  |                                            | 56,193 |                       |                         | (1,181 | )         |       |                       | 763 |  |           | (6 | )                     |  |   | 56,956 |  |   | (1,187 | )
|Equity securities                                                      |  |                                            |       |                       |                         |       |           |       |                       |    |  |           |   |                       |  |   |       |  |   |       |  
|                                                                       |  |                                            |        |                       |                         |        |           |       |                       |     |  |           |    |                       |  |   |        |  |   |        |  
|Total                                                                  |  | $                                          | 56,193 |                       | $                       | (1,181 | )         |       | $                     | 763 |  | $         | (6 | )                     |  | $ | 56,956 |  | $ | (1,187 | )
|                                                                       |  |                                            |        |                       |                         |        |           |       |                       |     |  |           |    |                       |  |   |        |  |   |        |  

The Companys investment securities portfolio contains unrealized losses of direct obligations of the U.S.
Treasury and 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 monthly basis, the Company evaluates the severity and duration of impairment for its
investment securities portfolio unless the company has the ability to hold the security to maturity without incurring a loss. Generally, impairment is considered other than temporary when an investment security has sustained a decline in market
value of ten percent or more for a period of six 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 are 90 positions that are temporarily impaired at September 30, 2008.



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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 Six - Maturity distribution of Investment Portfolio

The maturity distribution using book value including accretion of discounts and amortization of premiums and approximate yield of investment securities at
September 30, 2008 and December 31, 2007 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.



|                                |  |                               |     |       |                              |   |        |                            |         |  |                              |        |  |       |     |  |        |   |       |   |         |  |      |  
|------------------------------- |  | ----------------------------- | --- | ----- | ---------------------------- | - | ------ | -------------------------- | ------- |  | ---------------------------- | ------ |  | ----- | --- |  | ------ | - | ----- | - | ------- |  | ---- | -
|                                |  | (Unaudited)September 30,
2008 |     |       | December 31, 2007            |  
|                                |  | Securities Held toMaturity    |     |       | SecuritiesAvailable for Sale |   |        | Securities Held toMaturity |         |  | SecuritiesAvailable for Sale |       
|(dollars in thousands)          |  | Amount                        |     | Yield |                              |   | Amount |                            | Yield   |  |                              | Amount |  | Yield |     |  | Amount |   | Yield |  
|U.S. Treasury and other U.S.    |  |                               |     |       |                              |   |        |                            |         |  |                              |        |  |       |     |  |        |   |       |   |         |  |      |  
|Government Agencies             |  |                               |     |       |                              |   |        |                            |         |  |                              |        |  |       |     |  |        |   |       |   |         |  |      |  
|Within One Year                 |  | $                             |    |       |                             | % |        | $                          | 3,047   |  | 4.27                         | %      |  | $     |    |  |       | % |       | $ | 10,228  |  | 3.96 | %
|After One But Within Five Years |  |                               |    |       |                             |   |        |                            | 1,568   |  | 4.52                         |        |  |       |    |  |       |   |       |   | 16,245  |  | 4.25 |  
|After Five But Within Ten Years |  |                               |    |       |                             |   |        |                            | 16,889  |  | 5.04                         |        |  |       |    |  |       |   |       |   |        |  |     |  
|After Ten Years                 |  |                               |    |       |                             |   |        |                            | 4       |  | 2.65                         |        |  |       |    |  |       |   |       |   | 4       |  | 5.48 |  
|                                |  |                               |     |       |                              |   |        |                            |         |  |                              |        |  |       |     |  |        |   |       |   |         |  |      |  
|                                |  |                               |    |       |                             |   |        |                            | 21,508  |  | 4.89                         |        |  |       |    |  |       |   |       |   | 26,477  |  | 4.14 |  
|States & Political Subdivisions |  |                               |     |       |                              |   |        |                            |         |  |                              |        |  |       |     |  |        |   |       |   |         |  |      |  
|Within One Year                 |  |                               | 320 |       | 7.85                         |   |        |                            | 1,592   |  | 3.88                         |        |  |       | 165 |  | 7.44   |   |       |   | 1,820   |  | 3.96 |  
|After One But Within Five Years |  |                               | 180 |       | 5.76                         |   |        |                            | 4,969   |  | 4.46                         |        |  |       | 499 |  | 7.15   |   |       |   | 5,347   |  | 5.05 |  
|After Five But Within Ten Years |  |                               |    |       |                             |   |        |                            | 4,124   |  | 5.70                         |        |  |       |    |  |       |   |       |   | 5,963   |  | 5.53 |  
|After Ten Years                 |  |                               |    |       |                             |   |        |                            | 7,798   |  | 6.15                         |        |  |       |    |  |       |   |       |   | 9,023   |  | 5.85 |  
|                                |  |                               |     |       |                              |   |        |                            |         |  |                              |        |  |       |     |  |        |   |       |   |         |  |      |  
|                                |  |                               | 500 |       | 7.10                         |   |        |                            | 18,483  |  | 5.40                         |        |  |       | 664 |  | 7.22   |   |       |   | 22,153  |  | 5.42 |  
|Corporate Debt Securities       |  |                               |     |       |                              |   |        |                            |         |  |                              |        |  |       |     |  |        |   |       |   |         |  |      |  
|Within One Year                 |  |                               |    |       |                             |   |        |                            |        |  |                             |        |  |       |    |  |       |   |       |   |        |  |     |  
|After One But Within Five Years |  |                               |    |       |                             |   |        |                            | 1,214   |  | 7.34                         |        |  |       |    |  |       |   |       |   |        |  |     |  
|After Five But Within Ten Years |  |                               |    |       |                             |   |        |                            |        |  |                             |        |  |       |    |  |       |   |       |   |        |  |     |  
|After Ten Years                 |  |                               |    |       |                             |   |        |                            |        |  |                             |        |  |       |    |  |       |   |       |   |        |  |     |  
|                                |  |                               |     |       |                              |   |        |                            |         |  |                              |        |  |       |     |  |        |   |       |   |         |  |      |  
|                                |  |                               |    |       |                             |   |        |                            | 1,214   |  | 7.34                         |        |  |       |    |  |       |   |       |   |        |  |     |  
|Mortgage-Backed Securities      |  |                               |    |       |                             |   |        |                            | 65,538  |  | 5.19                         |        |  |       |    |  |       |   |       |   | 57,001  |  | 5.13 |  
|Equity Securities               |  |                               |    |       |                             |   |        |                            | 263     |  | 4.08                         |        |  |       |    |  |       |   |       |   | 352     |  | 6.66 |  
|                                |  |                               |     |       |                              |   |        |                            |         |  |                              |        |  |       |     |  |        |   |       |   |         |  |      |  
|Total                           |  | $                             | 500 |       | 7.10                         | % |        | $                          | 107,006 |  | 5.19                         | %      |  | $     | 664 |  | 7.22   | % |       | $ | 105,983 |  | 4.95 | %
|                                |  |                               |     |       |                              |   |        |                            |         |  |                              |        |  |       |     |  |        |   |       |   |         |  |      |  

Assets carried at $37,016,000 and $37,878,000 at September 30, 2008 and December 31, 2007, respectively,
were pledged to secure United States Government and other public funds and for other purposes as required or permitted by law.



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##### Table of Contents

First West Virginia Bancorp, Inc.

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



Loans

Loans
represent the largest asset on the Companys balance sheet. Total loans, net of unearned income, decreased $.5 million or .4% from December 31, 2007 to September 30, 2008. The decrease in total loans during the first nine months of
2008 was primarily due to decreases in residential real estate loans, which decreased approximately $2,587,000, offset by increases in commercial loans, installment loans and in other loans which increased approximately $979,000, $1,023,000 and
$63,000, respectively. The decline in residential real estate loans was primarily due to the decreased demand for closed end loans secured by one to four family residential properties. The volume of loans has been relatively flat since year end.

Real estate residential loans which include real estate construction, real estate farmland, and real estate residential loans comprised thirty-six percent
(36%) of the loan portfolio. Commercial loans which include real estate secured by non-farm, non-residential and commercial and industrial loans comprised forty-three percent (43%) of the loan portfolio. Installment loans comprised eleven
percent (11%) of the loan portfolio. Other loans which include non-rated industrial development obligations, direct financing leases and other loans comprised ten percent (10%) of the loan portfolio. The changes in the composition of the
loan portfolio since December 31, 2007 were a 2% increase in commercial loans and a 2% decrease in real estate residential loans.

Table Seven -
Loan Portfolio

Loans outstanding are as follows:



|                                              |  |                   |         |                  |   |        
|--------------------------------------------- |  | ----------------- | ------- | ---------------- | - | -------
|                                              |  | (Unaudited)       |         |                 
|(dollars in thousands)                        |  | September 30,2008 |         | December 31,2007
|Real Estate - residential:                    |  |                   |         |                  |   |        
|Real estate - construction                    |  | $                 | 597     |                  | $ | 927    
|Real estate - farmland                        |  |                   | 300     |                  |   | 318    
|Real estate - residential                     |  |                   | 43,210  |                  |   | 45,449 
|                                              |  |                   |         |                  |   |        
|                                              |  | $                 | 44,107  |                  | $ | 46,694 
|                                              |  |                   |         |                  |   |        
|Commercial:                                   |  |                   |         |                  |   |        
|Real estate-secured by nonfarm nonresidential |  | $                 | 42,131  |                  | $ | 42,350 
|Commercial and industrial                     |  |                   | 9,077   |                  |   | 7,879  
|                                              |  |                   |         |                  |   |        
|                                              |  | $                 | 51,208  |                  | $ | 50,229 
|                                              |  |                   |         |                  |   |        
|Installment:                                  |  |                   |         |                  |   |        
|Installment and other loans to individuals    |  | $                 | 13,884  |                  | $ | 12,861 
|                                              |  |                   |         |                  |   |        
|Other:                                        |  |                   |         |                  |   |        
|Nonrated industrial development obligations   |  | $                 | 12,172  |                  | $ | 12,045 
|Other loans                                   |  |                   | 45      |                  |   | 109    
|                                              |  |                   |         |                  |   |        
|                                              |  | $                 | 12,217  |                  | $ | 12,154 
|                                              |  |                   |         |                  |   |        
|Total                                         |  |                   | 121,416 |                  |   | 121,938
|Less unearned interest                        |  |                   | 196     |                  |   | 199    
|                                              |  |                   |         |                  |   |        
|                                              |  | $                 | 121,220 |                  | $ | 121,739
|                                              |  |                   |         |                  |   |        



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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 Eight - 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 September 30, 2008 and
December 31, 2007 :



|                                                                     |  |                    |       |                                 |   |                 |  |                    |        |                                 |   |                 |  |   |       |  |   |       
|-------------------------------------------------------------------- |  | ------------------ | ----- | ------------------------------- | - | --------------- |  | ------------------ | ------ | ------------------------------- | - | --------------- |  | - | ----- |  | - | ------
|(dollars in thousands)                                               |  | September 30, 2008 |       | December 31, 2007              
|                                                                     |  | In oneYear or Less |       | After oneYear ThroughFive Years |   | AfterFive Years |  | In oneYear or Less |        | After oneYear ThroughFive Years |   | AfterFive Years
|Real estate construction                                             |  | $                  | 304   |                                 | $ | 164             |  | $                  | 129    |                                 | $ | 518             |  | $ | 199   |  | $ | 210   
|Commercial real estate - secured by nonfarm, nonresidential property |  |                    | 773   |                                 |   | 3,807           |  |                    | 37,551 |                                 |   | 1,913           |  |   | 2,139 |  |   | 38,298
|Commercial and industrial                                            |  |                    | 1,928 |                                 |   | 2,599           |  |                    | 4,550  |                                 |   | 1,526           |  |   | 2,850 |  |   | 3,503 
|Nonrated industrial development obligations                          |  |                    | 1,122 |                                 |   | 2,662           |  |                    | 8,388  |                                 |   | 1,206           |  |   | 2,593 |  |   | 8,246 
|                                                                     |  |                    |       |                                 |   |                 |  |                    |        |                                 |   |                 |  |   |       |  |   |       
|Total                                                                |  | $                  | 4,127 |                                 | $ | 9,232           |  | $                  | 50,618 |                                 | $ | 5,163           |  | $ | 7,781 |  | $ | 50,257
|                                                                     |  |                    |       |                                 |   |                 |  |                    |        |                                 |   |                 |  |   |       |  |   |       

The following table presents an analysis of fixed and variable rate loans as of September 30, 2008 and
December 31, 2007 along with the contractual maturities of loans other than installment loans and residential mortgages:



|                       |  |                    |       |                                 |   |                 |  |                    |        |                                 |   |                 |  |   |       |  |   |       
|---------------------- |  | ------------------ | ----- | ------------------------------- | - | --------------- |  | ------------------ | ------ | ------------------------------- | - | --------------- |  | - | ----- |  | - | ------
|(dollars in thousands) |  | September 30, 2008 |       | December 31, 2007              
|                       |  | In oneYear or Less |       | After oneYear ThroughFive Years |   | AfterFive Years |  | In oneYear or Less |        | After oneYear ThroughFive Years |   | AfterFive Years
|Fixed Rates            |  | $                  | 2,066 |                                 | $ | 7,744           |  | $                  | 6,412  |                                 | $ | 2,724           |  | $ | 6,479 |  | $ | 6,819 
|Variable Rates         |  |                    | 2,061 |                                 |   | 1,488           |  |                    | 44,206 |                                 |   | 2,439           |  |   | 1,302 |  |   | 43,438
|                       |  |                    |       |                                 |   |                 |  |                    |        |                                 |   |                 |  |   |       |  |   |       
|Total                  |  | $                  | 4,127 |                                 | $ | 9,232           |  | $                  | 50,618 |                                 | $ | 5,163           |  | $ | 7,781 |  | $ | 50,257
|                       |  |                    |       |                                 |   |                 |  |                    |        |                                 |   |                 |  |   |       |  |   |       

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

Total non-performing loans were $3,268,000 at September 30,
2008 as compared to $2,463,000 at December 31, 2007. The increase in non-performing loans was primarily due to an increase in non-accrual loans. 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 $3,173,000 or 2.6% of total loans outstanding as of September 30, 2008, as compared to $2,437,000 or 2.0% of total loans at December 31, 2007.
Non-accrual loans increased during the first nine months of 2008 primarily due to the addition of six commercial loans, four non-farm-non residential real estate loans, and two residential real estate loans. Approximately $986,000 of the new loans
added relate to one commercial customer. Management continues to monitor the nonperforming assets to ensure against deterioration in collateral values.



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First West Virginia Bancorp, Inc.

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



Loans - Continued

Table Nine - 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:



|                                                                 |  |                   |       |   |                  |   |       |  
|---------------------------------------------------------------- |  | ----------------- | ----- | - | ---------------- | - | ----- | -
|                                                                 |  | (Unaudited)       |       |   |                  |  
|(dollars in thousands)                                           |  | September 30,2008 |       |   | December 31,2007 |  
|Past Due 90 Days or More:                                        |  |                   |       |   |                  |   |       |  
|Real estate - residential                                        |  | $                 |      |   |                  | $ |      |  
|Commercial                                                       |  |                   | 1     |   |                  |   | 14    |  
|Installment                                                      |  |                   | 4     |   |                  |   | 12    |  
|                                                                 |  |                   |       |   |                  |   |       |  
|                                                                 |  | $                 | 5     |   |                  | $ | 26    |  
|                                                                 |  |                   |       |   |                  |   |       |  
|Non-accrual:                                                     |  |                   |       |   |                  |   |       |  
|Real estate - residential                                        |  | $                 | 290   |   |                  | $ | 850   |  
|Commercial                                                       |  |                   | 2,876 |   |                  |   | 1,586 |  
|Installment                                                      |  |                   | 7     |   |                  |   | 1     |  
|                                                                 |  |                   |       |   |                  |   |       |  
|                                                                 |  | $                 | 3,173 |   |                  | $ | 2,437 |  
|                                                                 |  |                   |       |   |                  |   |       |  
|Other Real Estate                                                |  | $                 | 90    |   |                  | $ |      |  
|                                                                 |  |                   |       |   |                  |   |       |  
|Total non-performing assets                                      |  | $                 | 3,268 |   |                  | $ | 2,463 |  
|                                                                 |  |                   |       |   |                  |   |       |  
|Total non-performing assets to total loans and other real estate |  |                   | 2.73  | % |                  |   | 2.02  | %

Generally, all banks recognize interest income on the accrual basis, except for certain loans which are placed on
a non-accrual status. Loans are placed on a non-accrual status, when in the opinion of management doubt exists as to its collectibility. In accordance with the Office of the Comptroller of the Currency Policy, banks may not accrue interest on any
loan which either the principal or interest is past due 90 days or more unless the loan is both well secured and in the process of collection. The amount of interest income that would have been recognized had the loans performed in accordance with
their original terms was approximately $152,400, $108,800 and $156,500 for the nine months ended September 30, 2008 and 2007 and for the year ended December 31, 2007, respectively.



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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 Ten - Analysis of Allowance for Loan Losses

(dollars in thousands)

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



|                                                                                  |  |                          |         |   |                  |   |         |   |  |   |         |  
|--------------------------------------------------------------------------------- |  | ------------------------ | ------- | - | ---------------- | - | ------- | - |  | - | ------- | -
|                                                                                  |  | (Unaudited)September 30, |         |   | December 31,2007 |  
|                                                                                  |  | 2008                     |         |   | 2007             |   |        
|Allowance for loan losses:                                                        |  |                          |         |   |                  |   |         |   |  |   |         |  
|Balance at beginning of period:                                                   |  | $                        | 2,043   |   |                  | $ | 2,297   |   |  | $ | 2,297   |  
|Loans charged off:                                                                |  |                          |         |   |                  |   |         |   |  |   |         |  
|Real estate - residential                                                         |  |                          |        |   |                  |   | 29      |   |  |   | 29      |  
|Commercial                                                                        |  |                          | 150     |   |                  |   | 39      |   |  |   | 111     |  
|Installment                                                                       |  |                          | 19      |   |                  |   | 24      |   |  |   | 26      |  
|                                                                                  |  |                          |         |   |                  |   |         |   |  |   |         |  
|                                                                                  |  |                          | 169     |   |                  |   | 92      |   |  |   | 166     |  
|Recoveries:                                                                       |  |                          |         |   |                  |   |         |   |  |   |         |  
|Real estate - residential                                                         |  |                          |        |   |                  |   |        |   |  |   |        |  
|Commercial                                                                        |  |                          | 72      |   |                  |   | 3       |   |  |   | 5       |  
|Installment                                                                       |  |                          | 1       |   |                  |   | 2       |   |  |   | 7       |  
|                                                                                  |  |                          |         |   |                  |   |         |   |  |   |         |  
|                                                                                  |  |                          | 73      |   |                  |   | 5       |   |  |   | 12      |  
|Net loan charge-offs (recoveries)                                                 |  |                          | 96      |   |                  |   | 87      |   |  |   | 154     |  
|Additions charged to operations                                                   |  |                          |        |   |                  |   | (100    | ) |  |   | (100    | )
|                                                                                  |  |                          |         |   |                  |   |         |   |  |   |         |  
|Balance at end of period:                                                         |  | $                        | 1,947   |   |                  | $ | 2,110   |   |  | $ | 2,043   |  
|                                                                                  |  |                          |         |   |                  |   |         |   |  |   |         |  
|Average loans outstanding                                                         |  | $                        | 119,932 |   |                  | $ | 120,022 |   |  | $ | 120,409 |  
|                                                                                  |  |                          |         |   |                  |   |         |   |  |   |         |  
|Ratio of net charge-offs (recoveries) to average loans outstanding for the period |  |                          | 0.08    | % |                  |   | 0.07    | % |  |   | 0.13    | %
|Ratio of the allowance for loan losses to loans outstanding for the period        |  |                          | 1.61    | % |                  |   | 1.76    | % |  |   | 1.68    | %

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

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 $95,529 or 4.7% since December 31, 2007. The allowance for loan losses represented 1.6% and
1.7% of outstanding loans as of September 30, 2008 and December 31, 2007, respectively. Net loan charge-offs amounted to $96,000 for the nine month period ended September 30, 2008, compared to loan charge-offs of $87,000 for the same
period in 2007. There was no provision made to the allowance for loan losses during the nine month period ended September 30, 2008. The credit quality of the loan portfolio combined with the recent level of net charge-offs and nonperforming
assets continue to be considered in the calculation of the provision for loan losses. The Company has allocated the allowance for possible loan losses to specific portfolio segments based upon historical net charge-off experience, changes in the
level of nonperforming assets, local economic conditions and managements experience as presented in Table Eleven.

Table Eleven - Allocation of
allowance for possible loan losses

The following table presents an allocation of the allowance for loan losses at each of the four year periods ended
December 31, 2007, and the nine month period ended September 30, 2008. 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)September 30,2008 |       |                                             | December 31, |     
|                          |  |                              | 2007  |                                             |              | 2006 |        |   | 2005                                        |  |       | 2004   | 
|(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 | 
|Real estate - residential |  | $                            | 298   |                                             | 36.2         | %    |        | $ | 298                                         |  | 38.3  | %      |  | $                                           | 327   |  | 35.8   | % |                                             | $ | 327   |        | 33.4  | %                                           |  | $ | 325   |  | 33.5  | %
|Commercial                |  |                              | 1,199 |                                             | 42.2         |      |        |   | 1,277                                       |  | 41.2  |        |  |                                             | 1,483 |  | 43.3   |   |                                             |   | 1,465 |        | 44.5  |                                             |  |   | 1,520 |  | 45.2  |  
|Installment               |  |                              | 429   |                                             | 11.5         |      |        |   | 447                                         |  | 10.5  |        |  |                                             | 466   |  | 11.2   |   |                                             |   | 507   |        | 12.3  |                                             |  |   | 490   |  | 11.9  |  
|Others                    |  |                              | 21    |                                             | 10.1         |      |        |   | 21                                          |  | 10.0  |        |  |                                             | 21    |  | 9.7    |   |                                             |   | 21    |        | 9.8   |                                             |  |   | 21    |  | 9.4   |  
|                          |  |                              |       |                                             |              |      |        |   |                                             |  |       |        |  |                                             |       |  |        |   |                                             |   |       |        |       |                                             |  |   |       |  |       |  
|Total                     |  | $                            | 1,947 |                                             | 100.0        | %    |        | $ | 2,043                                       |  | 100.0 | %      |  | $                                           | 2,297 |  | 100.0  | % |                                             | $ | 2,320 |        | 100.0 | %                                           |  | $ | 2,356 |  | 100.0 | %
|                          |  |                              |       |                                             |              |      |        |   |                                             |  |       |        |  |                                             |       |  |        |   |                                             |   |       |        |       |                                             |  |   |       |  |       |  



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##### Table of Contents

First West Virginia Bancorp, Inc.

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



Deposits

A stable core deposit base is the major source of funds for the Companys subsidiary bank. The deposit mix depends upon many factors including competition from other financial institutions, depositor interest in certain types of
deposits, changes in the interest rate and the Companys need for certain types of deposit growth. Total deposits increased approximately $6.8 million or 3.3% during the first nine months of 2008. Since year end, the largest increases in
deposits were primarily in savings deposits and interest bearing demand deposits . At September 30, 2008, 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. The was no change in the deposit mix from December 31, 2007 to September 30, 2008.

Table
Twelve - Maturity Distribution of Time Certificates of Deposit

A maturity distribution of time certificates of deposit at September 30, 2008 and
December 31, 2007, follows:



|                           |  |                              |        |                  |   |       
|-------------------------- |  | ---------------------------- | ------ | ---------------- | - | ------
|                           |  | Maturities of Time Deposits 
|(dollars in thousands)     |  | (Unaudited)September 30,2008 |        | December 31,2007
|Due in 2008                |  | $                            | 17,492 |                  | $ | 45,687
|Due in 2009                |  |                              | 45,914 |                  |   | 24,186
|Due in 2010                |  |                              | 14,845 |                  |   | 12,242
|Due in 2011                |  |                              | 7,380  |                  |   | 6,277 
|Due in 2012                |  |                              | 6,517  |                  |   | 6,071 
|Due in 2013 and thereafter |  |                              | 2,850  |                  |   | 24    
|                           |  |                              |        |                  |   |       
|Total                      |  | $                            | 94,998 |                  | $ | 94,487
|                           |  |                              |        |                  |   |       

Time deposits include certificates of deposit issued in denominations of $100,000 or more which amounted to
$26,360,000 and $26,532,000 at September 30, 2008 and December 31, 2007, respectively. Interest expense on certificates of deposit of $100,000 or more was $884,000 and $906,500 at September 30, 2008 and 2007, respectively.

Table Thirteen - Maturity of Time Deposits of $100,000 or more

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)               |  | (Unaudited)September 30,
2008                     |        | December 31, 2007
|Three Months or Less                 |  | $                                                 | 6,309  |                   | $ | 3,605 
|Over Three and Less than Six Months  |  |                                                   | 8,428  |                   |   | 2,820 
|Over Six and Less than Twelve Months |  |                                                   | 3,704  |                   |   | 7,959 
|Over Twelve Months                   |  |                                                   | 7,919  |                   |   | 12,148
|                                     |  |                                                   |        |                   |   |       
|Total                                |  | $                                                 | 26,360 |                   | $ | 26,532
|                                     |  |                                                   |        |                   |   |       



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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



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 September 30, 2008 and December 31, 2007. Repurchase agreements increased approximately $.5 million or 4.5%, from December 31,
2007 to September 30, 2008. The increase in repurchase agreements since year end was primarily due to the increase in the balances maintained by commercial customers.

Federal Home Loan Bank and Other Long-term 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 September 30, 2008 was approximately $91.0 million subject to the purchase of additional FHLB stock. The FHLB borrowings were $10,947,581 and $9,298,492 at September 30, 2008 and December 31, 2007,
respectively. The subsidiary bank has two fixed rate bullet advances which amount to $7,000,000, with a weighted average interest rate of 5.08% which will mature in 2009 and 2010. The subsidiary bank also has three fixed rate amortizing advances
with a weighted average interest rate of 4.78% of which $2,263,916 and $1,683,665 will mature in 2018 and 2023, respectively.

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
September 30, 2008 and December 31, 2007, respectively.

Contractual maturities of FHLB borrowings as of September 30, 2008 were as follows:



|           |  |   |           
|---------- |  | - | ----------
|2008       |  | $ | 18,212    
|2009       |  |   | 3,572,871 
|2010       |  |   | 3,578,725 
|2011       |  |   | 82,570    
|2012       |  |   | 86,602    
|Thereafter |  |   | 3,608,601 
|           |  |   |           
|           |  | $ | 10,947,581
|           |  |   |           

The Company has a non-revolving line of credit of $3.0 million from a financial institution. The line of credit is
secured by 126,200 shares of Progressive Bank, N.A. stock. The note bears an interest rate of prime and is adjustable quarterly. The note matures in May 2015. The Companys initial borrowing under the loan amounted to $2.0 million. There were
no outstanding borrowings as of September 30, 2008 and as of December 31, 2007.

Capital Resources

Stockholders equity increased 2.9% during the nine month period ended September 30, 2008 entirely from current earnings after quarterly dividends, and a 3.0%
decrease in accumulated other comprehensive income. The decrease in accumulated other comprehensive income is primarily attributable to the effect of the change in the net unrealized loss on securities available for sale. Stockholders equity
amounted to 10.4% and 10.8% of total assets at September 30, 2008 and December 31, 2007, respectively. The Company paid dividends of $.57 per share during in the nine month periods ended September 30, 2008 and 2007.

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 2008, without approval of the Comptroller of the Currency, of approximately $915,000, plus an additional amount equal to the banks net profit for 2008 up to
the date of any such dividend declaration.

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).



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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



As of September 30, 2008, 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:



|                                          |  |        |        |       |                              |   |        |                                                               |        |  |     |        |  |       |        |  |      |  
|----------------------------------------- |  | ------ | ------ | ----- | ---------------------------- | - | ------ | ------------------------------------------------------------- | ------ |  | --- | ------ |  | ----- | ------ |  | ---- | -
|                                          |  | Actual |        |       | For CapitalAdequacy Purposes |   |        | To be WellCapitalized UnderPrompt CorrectiveAction Provisions |       
|(Amounts Expressed in Thousands)          |  | Amount |        | Ratio |                              |   | Amount |                                                               | Ratio  |  |     | Amount |  | Ratio |       
|First West Virginia Bancorp, Inc.         |  |        |        |       |                              |   |        |                                                               |        |  |     |        |  |       |        |  |      |  
|As of September 30, 2008                  |  |        |        |       |                              |   |        |                                                               |        |  |     |        |  |       |        |  |      |  
|Total Capital (to Risk Weighted Assets)   |  | $      | 27,843 |       | 18.58                        | % |        | $                                                             | 11,989 |  | 8.0 | %      |  | $     | 14,987 |  | 10.0 | %
|Tier I Capital (to Risk Weighted Assets)  |  |        | 25,975 |       | 17.33                        | % |        |                                                               | 5,995  |  | 4.0 | %      |  |       | 8,992  |  | 6.0  | %
|Tier I Capital (to Adjusted Total Assets) |  |        | 25,975 |       | 9.98                         | % |        |                                                               | 10,413 |  | 4.0 | %      |  |       | 13,017 |  | 5.0  | %
|As of December 31, 2007                   |  |        |        |       |                              |   |        |                                                               |        |  |     |        |  |       |        |  |      |  
|Total Capital (to Risk Weighted Assets)   |  | $      | 26,956 |       | 18.98                        | % |        | $                                                             | 11,362 |  | 8.0 | %      |  | $     | 14,203 |  | 10.0 | %
|Tier I Capital (to Risk Weighted Assets)  |  |        | 25,183 |       | 17.73                        | % |        |                                                               | 5,681  |  | 4.0 | %      |  |       | 8,522  |  | 6.0  | %
|Tier I Capital (to Adjusted Total Assets) |  |        | 25,183 |       | 9.91                         | % |        |                                                               | 10,170 |  | 4.0 | %      |  |       | 12,712 |  | 5.0  | %
|Progressive Bank, N.A.                    |  |        |        |       |                              |   |        |                                                               |        |  |     |        |  |       |        |  |      |  
|As of September 30, 2008                  |  |        |        |       |                              |   |        |                                                               |        |  |     |        |  |       |        |  |      |  
|Total Capital (to Risk Weighted Assets)   |  | $      | 27,556 |       | 18.44                        | % |        | $                                                             | 11,952 |  | 8.0 | %      |  | $     | 14,940 |  | 10.0 | %
|Tier I Capital (to Risk Weighted Assets)  |  |        | 25,688 |       | 17.19                        | % |        |                                                               | 5,976  |  | 4.0 | %      |  |       | 8,964  |  | 6.0  | %
|Tier I Capital (to Adjusted Total Assets) |  |        | 25,688 |       | 9.88                         | % |        |                                                               | 10,401 |  | 4.0 | %      |  |       | 13,001 |  | 5.0  | %
|As of December 31, 2007                   |  |        |        |       |                              |   |        |                                                               |        |  |     |        |  |       |        |  |      |  
|Total Capital (to Risk Weighted Assets)   |  | $      | 26,620 |       | 18.80                        | % |        | $                                                             | 11,325 |  | 8.0 | %      |  | $     | 14,156 |  | 10.0 | %
|Tier I Capital (to Risk Weighted Assets)  |  |        | 24,847 |       | 17.55                        | % |        |                                                               | 5,662  |  | 4.0 | %      |  |       | 8,494  |  | 6.0  | %
|Tier I Capital (to Adjusted Total Assets) |  |        | 24,847 |       | 9.80                         | % |        |                                                               | 10,141 |  | 4.0 | %      |  |       | 12,676 |  | 5.0  | %

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 $107,006,587 classified as available for sale at September 30, 2008. 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 $56,956,000. 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 September 30, 2008 was approximately $91.0 million subject to the purchase of additional FHLB stock. At September 30, 2008, 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 September 30, 2008. At September 30, 2008 and
December 31, 2007, the Company had outstanding loan commitments and unused lines of credit totaling $23,268,000 and $16,035,000, respectively. As of September 30, 2008, management placed a high probability for required funding within one
year of approximately $17.9 million. Approximately $4.1 million is principally unused home equity and credit card lines on which management places a low probability for required funding.



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##### Table of Contents

FIRST WEST VIRGINIA BANCORP, INC.

PART I



|Item 3 | Quantitative and Qualitative Disclosures About Market Risk
|------ | ----------------------------------------------------------

The Companys subsidiary bank uses an asset/liability model to measure the impact of changes in interest rates on net interest income on a periodic basis. Assumptions are made to simulate the impact of future changes in interest rates
and/or changes in balance sheet composition. The effect of changes in future interest rates on the mix of assets and liabilities may cause actual results to differ from simulated results. Guidelines established by the Companys subsidiary bank
provides that the estimated net interest income may not change by more than 10% in a one year period given a +/- 200 basis point parallel shift in interest rates. Excluding the potential effect of interest rate changes on assets and liabilities of
the Holding Company which are not deemed material, the anticipated impact on net interest income of the subsidiary bank at September 30, 2008 was as follows: given a 200 basis point increase scenario net interest income would be decreased by
approximately 3.9%, and given a 200 basis point decrease scenario net interest income would be reduced by approximately 6.2%. 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 1.7%, and given a 100 basis point decrease scenario net interest income would be reduced by 1.2%. 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
|------- | ------------

Please refer to the
Companys report on Form 10-K for the year ended December 31, 2007 for disclosures with respect to risk factors. There have been no material changes since year-end 2007 in the specified risk factors disclosed in the Annual Report on Form
10-K.



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

Inapplicable



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

Inapplicable



|Item 4 | Submission of Matters to Vote of Security Holders
|------ | -------------------------------------------------



| | a. | Inapplicable
| | -- | ------------



| | b. | Inapplicable
| | -- | ------------



| | c. | Inapplicable
| | -- | ------------



| | d. | Inapplicable
| | -- | ------------



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##### Table of Contents

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

Inapplicable



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



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

On
August 13, 2008 a report on Form 8-K was filed which contained a press release dated August 11, 2008 that reported the earnings of First West Virginia Bancorp, Inc. for the second quarter ended June 30, 2008.



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

The exhibits listed in the Exhibit Index
on page 35 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: November 7, 2008



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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.                                       
|              | 
|10.5          |  | Lease dated March 7, 2006 between Progressive Bank, N.A. and O. V. Smith & Sons of Big Chimney, Inc. Incorporated herein by reference.                                                                       
|              | 
|10.7          |  | Lease dated May 12, 2001 between Progressive Bank, N.A. and Sylvan J. Dlesk and Rosalie J. Dlesk doing business as Dlesk Realty & Investment Company. Incorporated herein by
reference.                      
|              | 
|10.8          |  | Lease dated January 1, 2005 between Progressive Bank, N.A. and Elm Grove Properties LLC. Incorporated herein by reference.                                                                                   
|              | 
|11.1          |  | Statement regarding computation of per share earnings. Filed herewith and incorporated herein by reference.                                                                                                  
|              | 
|13.3          |  | Summarized Quarterly Financial Information. Filed herewith and incorporated herein by reference.                                                                                                             
|              | 
|15            |  | Letter re unaudited interim financial information. Incorporated herein by reference. See Part 1, Notes to Consolidated Financial Statements                                                                  
|              | 
|31            |  | Rule 13a-14(a) / 15d/14(a) Certifications - Certification of Chief Executive Officer pursuant to section 302 of the Securities and Exchange Act of 1934. Filed herewith and incorporated herein by
reference.
|              | 
|31.1          |  | Rule 13a-14(a) / 15d/14(a) Certifications - Certification of Chief Financial Officer pursuant to section 302 of the Securities and Exchange Act of 1934. Filed herewith and incorporated herein by
reference.
|              | 
|32            |  | Certification pursuant to 18 U.S.C. §1350,as adopted pursuant to section 906 of the SARBANES-OXLEY ACT of 2002. Filed herewith and incorporated herein by reference.                                         
|              | 
|99.1          |  | Independent Accountants Report. Filed herewith and incorporated herein by reference.                                                                                                                        



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