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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



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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, 2007



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

For the transition period from _____________ to _____________.

Commission File
No. 1-13652



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First West Virginia Bancorp, Inc.

(Exact name of registrant as specified in its charter)



|                                                              |  |                                    
|------------------------------------------------------------- |  | -----------------------------------
|West Virginia                                                 |  | 55-6051901                         
|(State or other jurisdiction ofincorporation or organization) |  | (I.R.S. EmployerIdentification No.)

1701 Warwood Avenue

Wheeling, West Virginia 26003

(Address of principal executive offices)

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

N/A

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

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

Indicate by check mark whether the registrant 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  x

Indicate by check mark whether the Registrant is a shell company as defined by Rule 12b-2 of the Exchange
Act. ̈Yes    x  No

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

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

APPLICABLE ONLY TO CORPORATE ISSUERS:

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

The number of shares outstanding of the issuers common stock as of November 7, 2007: Common Stock, $5.00 Par Value, shares outstanding:
1,528,443 shares



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##### Table of Contents

FORM 10-Q INDEX



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|                               |  |                                                                                       |  |      
|------------------------------ |  | ------------------------------------------------------------------------------------- |  | -----
|PART I - Financial Information |  |                                                                                      
|                               |  |                                                                                      
|Item 1                         |  | Financial Statements and Accompanying Notes                                           |  | 3-11 
|                               |  |                                                                                      
|Item 2                         |  | Managements Discussion and Analysis of Financial Condition and Results of Operations |  | 12-29
|                               |  |                                                                                      
|Item 3                         |  | Quantitative and Qualitative Disclosures About Market Risk                            |  |      
|                               |  |                                                                                      
|Item 4                         |  | Controls and Procedures                                                               |  | 29   
|                               | 
|PART II - Other Information    |  | 29                                                                                   
|                               |  |                                                                                      
|Item 1                         |  | Legal Proceedings                                                                     |  | 30   
|                               |  |                                                                                      
|Item 1A                        |  | Risk Factors                                                                          |  | 30   
|                               |  |                                                                                      
|Item 2                         |  | Unregistered Sales of Equity Securities and Use of Proceeds                           |  | 30   
|                               |  |                                                                                      
|Item 3                         |  | Defaults upon Senior Securities                                                       |  | 30   
|                               |  |                                                                                      
|Item 4                         |  | Submission of matters to a Vote of Security Holders                                   |  | 30   
|                               |  |                                                                                      
|Item 5                         |  | Other Information                                                                     |  | 31   
|                               |  |                                                                                      
|Item 6                         |  | Exhibits and Reports on Form 8-K                                                      |  | 31   
|                               |  |                                                                                      
|                               |  | Reports on Form 8-K                                                                   |  | 31   
|                               |  | Signatures                                                                            |  | 32   
|                               |  | Exhibit Index                                                                         |  | 33   



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##### Table of Contents

First West Virginia Bancorp, Inc.

CONSOLIDATED BALANCE SHEETS



|                                                                           |  |                   |             |   |                  |   |             |  
|-------------------------------------------------------------------------- |  | ----------------- | ----------- | - | ---------------- | - | ----------- | -
|                                                                           |  | September 30,2007 |             |   | December 31,2006 |  
|ASSETS                                                                     |  |                   |             |   |                  |   |             |  
|                                                                           |  | (Unaudited)       |             |   |                  |  
|Cash and due from banks                                                    |  | $                 | 5,114,583   |   |                  | $ | 6,650,406   |  
|Due from banks - interest bearing                                          |  |                   | 3,242,788   |   |                  |   | 668,230     |  
|Federal funds sold                                                         |  |                   | 10,010,000  |   |                  |   | 4,053,000   |  
|                                                                           |  |                   |             |   |                  |   |             |  
|Total cash and cash equivalents                                            |  |                   | 18,367,371  |   |                  |   | 11,371,636  |  
|Investment securities:                                                     |  |                   |             |   |                  |   |             |  
|Available-for-sale (at fair value)                                         |  |                   | 104,226,440 |   |                  |   | 109,921,387 |  
|Held-to-maturity (fair value of $829,016 and $989,241, respectively)       |  |                   | 818,605     |   |                  |   | 972,855     |  
|Loans                                                                      |  |                   | 119,942,022 |   |                  |   | 120,709,320 |  
|Less allowance for loan losses                                             |  |                   | (2,109,677  | ) |                  |   | (2,296,958  | )
|                                                                           |  |                   |             |   |                  |   |             |  
|Net loans                                                                  |  |                   | 117,832,345 |   |                  |   | 118,412,362 |  
|Premises and equipment, net                                                |  |                   | 4,687,087   |   |                  |   | 4,334,131   |  
|Accrued income receivable                                                  |  |                   | 1,303,859   |   |                  |   | 1,263,335   |  
|Other intangible assets                                                    |  |                   | 36,979      |   |                  |   | 103,543     |  
|Goodwill                                                                   |  |                   | 1,644,119   |   |                  |   | 1,644,119   |  
|Bank owned life insurance                                                  |  |                   | 3,398,297   |   |                  |   | 3,307,711   |  
|Other assets                                                               |  |                   | 3,355,773   |   |                  |   | 3,106,482   |  
|                                                                           |  |                   |             |   |                  |   |             |  
|Total assets                                                               |  | $                 | 255,670,875 |   |                  | $ | 254,437,561 |  
|                                                                           |  |                   |             |   |                  |   |             |  
|LIABILITIES                                                                |  |                   |             |   |                  |   |             |  
|Noninterest bearing deposits:                                              |  |                   |             |   |                  |   |             |  
|Demand                                                                     |  | $                 | 24,375,358  |   |                  | $ | 25,586,509  |  
|Interest bearing deposits:                                                 |  |                   |             |   |                  |   |             |  
|Demand                                                                     |  |                   | 34,537,586  |   |                  |   | 33,070,271  |  
|Savings                                                                    |  |                   | 50,427,747  |   |                  |   | 54,606,775  |  
|Time                                                                       |  |                   | 95,372,081  |   |                  |   | 97,144,860  |  
|                                                                           |  |                   |             |   |                  |   |             |  
|Total deposits                                                             |  |                   | 204,712,772 |   |                  |   | 210,408,415 |  
|Federal funds purchased and securities sold under agreements to repurchase |  |                   | 14,177,745  |   |                  |   | 15,240,158  |  
|Federal Home Loan Bank borrowings                                          |  |                   | 9,309,746   |   |                  |   | 2,342,718   |  
|Accrued interest payable                                                   |  |                   | 583,595     |   |                  |   | 597,457     |  
|Other liabilities                                                          |  |                   | 710,971     |   |                  |   | 571,859     |  
|                                                                           |  |                   |             |   |                  |   |             |  
|Total liabilities                                                          |  |                   | 229,494,829 |   |                  |   | 229,160,607 |  
|                                                                           |  |                   |             |   |                  |   |             |  
|STOCKHOLDERS EQUITY                                                       |  |                   |             |   |                  |   |             |  
|Common stock - 2,000,000 shares authorized at $5 par value:                |  |                   |             |   |                  |   |             |  
|1,538,443 shares issued at September 30, 2007 and December 31, 2006        |  |                   | 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                                                          |  |                   | 14,150,082  |   |                  |   | 13,520,264  |  
|Accumulated other comprehensive loss                                       |  |                   | (420,757    | ) |                  |   | (690,031    | )
|                                                                           |  |                   |             |   |                  |   |             |  
|Total stockholders equity                                                 |  |                   | 26,176,046  |   |                  |   | 25,276,954  |  
|                                                                           |  |                   |             |   |                  |   |             |  
|Total liabilities and stockholders equity                                 |  | $                 | 255,670,875 |   |                  | $ | 254,437,561 |  
|                                                                           |  |                   |             |   |                  |   |             |  

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 INCOME



|                                                    |  |                                  |           |                                 |      |   |           |  |   |            |   |  |   |           
|--------------------------------------------------- |  | -------------------------------- | --------- | ------------------------------- | ---- | - | --------- |  | - | ---------- | - |  | - | ----------
|                                                    |  | Three Months Ended,September 30, |           | Nine Months Ended,September 30,
|                                                    |  | 2007                             |           |                                 | 2006 |   | 2007      |  |   | 2006      
|                                                    |  | (Unaudited)                      |           | (Unaudited)                    
|INTEREST AND DIVIDEND INCOME                        |  |                                  |           |                                 |      |   |           |  |   |            |   |  |   |           
|Loans, including fees:                              |  |                                  |           |                                 |      |   |           |  |   |            |   |  |   |           
|Taxable                                             |  | $                                | 1,956,372 |                                 |      | $ | 2,093,888 |  | $ | 5,711,270  |   |  | $ | 6,181,455 
|Tax-exempt                                          |  |                                  | 149,015   |                                 |      |   | 145,521   |  |   | 440,362    |   |  |   | 437,573   
|Debt securities:                                    |  |                                  |           |                                 |      |   |           |  |   |            |   |  |   |           
|Taxable                                             |  |                                  | 1,038,556 |                                 |      |   | 954,946   |  |   | 3,158,362  |   |  |   | 2,841,988 
|Tax-exempt                                          |  |                                  | 207,805   |                                 |      |   | 196,220   |  |   | 634,517    |   |  |   | 580,021   
|Dividends                                           |  |                                  | 10,446    |                                 |      |   | 8,924     |  |   | 29,980     |   |  |   | 26,172    
|Other interest income                               |  |                                  | 19,330    |                                 |      |   | 42,616    |  |   | 46,441     |   |  |   | 63,668    
|Federal funds sold                                  |  |                                  | 72,731    |                                 |      |   | 76,119    |  |   | 195,036    |   |  |   | 190,129   
|                                                    |  |                                  |           |                                 |      |   |           |  |   |            |   |  |   |           
|Total interest and dividend income                  |  |                                  | 3,454,255 |                                 |      |   | 3,518,234 |  |   | 10,215,968 |   |  |   | 10,321,006
|                                                    |  |                                  |           |                                 |      |   |           |  |   |            |   |  |   |           
|INTEREST EXPENSE                                    |  |                                  |           |                                 |      |   |           |  |   |            |   |  |   |           
|Deposits                                            |  |                                  | 1,185,841 |                                 |      |   | 1,083,010 |  |   | 3,493,867  |   |  |   | 2,960,873 
|Federal funds purchased and repurchase agreements   |  |                                  | 122,336   |                                 |      |   | 180,357   |  |   | 390,840    |   |  |   | 484,351   
|FHLB and other long-term borrowings                 |  |                                  | 89,561    |                                 |      |   | 25,294    |  |   | 147,900    |   |  |   | 113,492   
|                                                    |  |                                  |           |                                 |      |   |           |  |   |            |   |  |   |           
|Total interest expense                              |  |                                  | 1,397,738 |                                 |      |   | 1,288,661 |  |   | 4,032,607  |   |  |   | 3,558,716 
|                                                    |  |                                  |           |                                 |      |   |           |  |   |            |   |  |   |           
|Net interest income                                 |  |                                  | 2,056,517 |                                 |      |   | 2,229,573 |  |   | 6,183,361  |   |  |   | 6,762,290 
|PROVISION FOR LOAN LOSSES                           |  |                                  | (100,000  | )                               |      |   |          |  |   | (100,000   | ) |  |   |          
|                                                    |  |                                  |           |                                 |      |   |           |  |   |            |   |  |   |           
|Net interest income after provision for loan losses |  |                                  | 2,156,517 |                                 |      |   | 2,229,573 |  |   | 6,283,361  |   |  |   | 6,762,290 
|                                                    |  |                                  |           |                                 |      |   |           |  |   |            |   |  |   |           
|NONINTEREST INCOME                                  |  |                                  |           |                                 |      |   |           |  |   |            |   |  |   |           
|Service charges and other fees                      |  |                                  | 237,541   |                                 |      |   | 240,753   |  |   | 688,097    |   |  |   | 675,468   
|Net gains (losses) on available for sale securities |  |                                  | (605      | )                               |      |   | 778       |  |   | (51,961    | ) |  |   | 44,887    
|Other operating income                              |  |                                  | 132,545   |                                 |      |   | 128,071   |  |   | 368,602    |   |  |   | 358,935   
|                                                    |  |                                  |           |                                 |      |   |           |  |   |            |   |  |   |           
|Total noninterest income                            |  |                                  | 369,481   |                                 |      |   | 369,602   |  |   | 1,004,738  |   |  |   | 1,079,290 
|                                                    |  |                                  |           |                                 |      |   |           |  |   |            |   |  |   |           
|NONINTEREST EXPENSE                                 |  |                                  |           |                                 |      |   |           |  |   |            |   |  |   |           
|Salary and employee benefits                        |  |                                  | 961,406   |                                 |      |   | 957,242   |  |   | 2,938,821  |   |  |   | 2,950,632 
|Net occupancy expense of premises                   |  |                                  | 265,536   |                                 |      |   | 274,285   |  |   | 831,444    |   |  |   | 863,832   
|Other operating expenses                            |  |                                  | 560,356   |                                 |      |   | 603,442   |  |   | 1,669,190  |   |  |   | 1,838,141 
|                                                    |  |                                  |           |                                 |      |   |           |  |   |            |   |  |   |           
|Total noninterest expense                           |  |                                  | 1,787,298 |                                 |      |   | 1,834,969 |  |   | 5,439,455  |   |  |   | 5,652,605 
|                                                    |  |                                  |           |                                 |      |   |           |  |   |            |   |  |   |           
|Income before income taxes                          |  |                                  | 738,700   |                                 |      |   | 764,206   |  |   | 1,848,644  |   |  |   | 2,188,975 
|INCOME TAXES                                        |  |                                  | 159,087   |                                 |      |   | 172,513   |  |   | 347,613    |   |  |   | 447,806   
|                                                    |  |                                  |           |                                 |      |   |           |  |   |            |   |  |   |           
|Net income                                          |  | $                                | 579,613   |                                 |      | $ | 591,693   |  | $ | 1,501,031  |   |  | $ | 1,741,169 
|                                                    |  |                                  |           |                                 |      |   |           |  |   |            |   |  |   |           
|WEIGHTED AVERAGE SHARES OUTSTANDING                 |  |                                  | 1,528,443 |                                 |      |   | 1,528,443 |  |   | 1,528,443  |   |  |   | 1,528,443 
|                                                    |  |                                  |           |                                 |      |   |           |  |   |            |   |  |   |           
|EARNINGS PER COMMON SHARE                           |  | $                                | 0.38      |                                 |      | $ | 0.39      |  | $ | 0.98       |   |  | $ | 1.14      
|                                                    |  |                                  |           |                                 |      |   |           |  |   |            |   |  |   |           
|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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##### Table of Contents

First West Virginia Bancorp, Inc.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY

(Unaudited)



|                                                                                   |  |              |  |        |           |                                        |          |           |          |          |   |            |                                |  |               |                |   |        |   |            |   |  |   |           |  |   |            |  
|---------------------------------------------------------------------------------- |  | ------------ |  | ------ | --------- | -------------------------------------- | -------- | --------- | -------- | -------- | - | ---------- | ------------------------------ |  | ------------- | -------------- | - | ------ | - | ---------- | - |  | - | --------- |  | - | ---------- | -
|                                                                                   |  | Common Stock |  |        |           |                                        | Retained |           |          | Treasury |   |            | AccumulatedOtherCompre-hensive |  |               | Compre-hensive |   |        |  
|                                                                                   |  | Shares       |  | Amount |           | Surplus                                |          |           | Earnings |          |   | Stock      |                                |  | Income (loss) |                |   | Income |   | Total      |  
|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 |  
|                                                                                   |  |              |  |        |           |                                        |          |           |          |          |   |            |                                |  |               |                |   |        |   |            |   |  |   |           |  |   |            |  
|                                                                                   |  |              |  |        |           |                                        |         
|                                                                                   |  | Common Stock |  |        |           |                                        | Retained |           |          | Treasury |   |            | AccumulatedOtherCompre-hensive |  |               | Compre-hensive |   |        |  
|                                                                                   |  | Shares       |  | Amount |           | Surplus                                |          |           | Earnings |          |   | Stock      |                                |  | Income (loss) |                |   | Income |   | Total      |  
|BALANCE, DECEMBER 31, 2005                                                         |  | 1,538,443    |  | $      | 7,692,215 |                                        | $        | 4,982,606 |          |          | $ | 12,538,056 |                                |  | $             | (228,100       | ) |        | $ | (1,026,148 | ) |  |   |           |  | $ | 23,958,629 |  
|Comprehensive income:                                                              |  |              |  |        |           |                                        |          |           |          |          |   |            |                                |  |               |                |   |        |   |            |   |  |   |           |  |   |            |  
|Net income                                                                         |  |             |  |        |          |                                        |          |          |          |          |   | 1,741,169  |                                |  |               |               |   |        |   |           |   |  | $ | 1,741,169 |  |   | 1,741,169  |  
|Other comprehensive income, net of tax                                             |  |              |  |        |           |                                        |          |           |          |          |   |            |                                |  |               |                |   |        |   |            |   |  |   |           |  |   |            |  
|Unrealized gains on securities net of reclassification adjustment (see disclosure) |  |             |  |        |          |                                        |          |          |          |          |   |           |                                |  |               |               |   |        |   | 219,367    |   |  |   | 219,367   |  |   | 219,367    |  
|                                                                                   |  |              |  |        |           |                                        |          |           |          |          |   |            |                                |  |               |                |   |        |   |            |   |  |   |           |  |   |            |  
|Comprehensive income                                                               |  |              |  |        |           |                                        |          |           |          |          |   |            |                                |  |               |                |   |        |   |            |   |  | $ | 1,960,536 |  |   |            |  
|                                                                                   |  |              |  |        |           |                                        |          |           |          |          |   |            |                                |  |               |                |   |        |   |            |   |  |   |           |  |   |            |  
|Cash dividend ($.57 per share)                                                     |  |             |  |        |          |                                        |          |          |          |          |   | (871,213   | )                              |  |               |               |   |        |   |           |   |  |   |           |  |   | (871,213   | )
|                                                                                   |  |              |  |        |           |                                        |          |           |          |          |   |            |                                |  |               |                |   |        |   |            |   |  |   |           |  |   |            |  
|BALANCE, SEPTEMBER 30, 2006                                                        |  | 1,538,443    |  | $      | 7,692,215 |                                        | $        | 4,982,606 |          |          | $ | 13,408,012 |                                |  | $             | (228,100       | ) |        | $ | (806,781   | ) |  |   |           |  | $ | 25,047,952 |  
|                                                                                   |  |              |  |        |           |                                        |          |           |          |          |   |            |                                |  |               |                |   |        |   |            |   |  |   |           |  |   |            |  
|                                                                                   |  |              |  |        |           |                                        |         
|                                                                                   |  |              |  |        |           | For the Nine Months EndedSeptember 30, |          |           |          |          |   |            |                                |  |               |                |   |       
|                                                                                   |  |              |  |        |           | 2007                                   |          |           | 2006     |          |   |            |                                |  |               |                |   |        |   |            |  
|Disclosure of reclassification amount, net of tax:                                 |  |              |  |        |           |                                        |          |           |          |          |   |            |                                |  |               |                |   |        |   |            |   |  |   |           |  |   |            |  
|Unrealized holding gains arising during the period                                 |  |              |  |        |           |                                        | $        | 237,226   |          |          | $ | 247,363    |                                |  |               |                |   |        |   |            |   |  |   |           |  |   |            |  
|Less reclassification adjustment for gains (losses) included in net income         |  |              |  |        |           |                                        |          | (32,048   | )        |          |   | 27,996     |                                |  |               |                |   |        |   |            |   |  |   |           |  |   |            |  
|                                                                                   |  |              |  |        |           |                                        |          |           |          |          |   |            |                                |  |               |                |   |        |   |            |   |  |   |           |  |   |            |  
|Net unrealized gains on securities                                                 |  |              |  |        |           |                                        | $        | 269,274   |          |          | $ | 219,367    |                                |  |               |                |   |        |   |            |   |  |   |           |  |   |            |  
|                                                                                   |  |              |  |        |           |                                        |          |           |          |          |   |            |                                |  |               |                |   |        |   |            |   |  |   |           |  |   |            |  

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



5



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##### Table of Contents

First West Virginia Bancorp, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)



|                                                                                  |  |                                        |              |   |      |   |             |  
|--------------------------------------------------------------------------------- |  | -------------------------------------- | ------------ | - | ---- | - | ----------- | -
|                                                                                  |  | For the Nine Months EndedSeptember 30, |             
|                                                                                  |  | 2007                                   |              |   | 2006 |  
|OPERATING ACTIVITIES                                                              |  |                                        |              |   |      |   |             |  
|Net income                                                                        |  | $                                      | 1,501,031    |   |      | $ | 1,741,169   |  
|Adjustments to reconcile net income to net cash provided by operating activities: |  |                                        |              |   |      |   |             |  
|Provision for loan losses                                                         |  |                                        | (100,000     | ) |      |   |            |  
|Depreciation and amortization                                                     |  |                                        | 304,544      |   |      |   | 330,339     |  
|Amortization of investment securities, net                                        |  |                                        | (180,264     | ) |      |   | (63,261     | )
|Investment security (gains) losses                                                |  |                                        | 51,961       |   |      |   | (44,887     | )
|Increase in cash surrender value of bank-owned life insurance                     |  |                                        | (90,586      | ) |      |   | (83,864     | )
|Decrease in interest receivable                                                   |  |                                        | (40,524      | ) |      |   | (71,456     | )
|Increase (decrease) in interest payable                                           |  |                                        | (13,862      | ) |      |   | 133,036     |  
|Other, net                                                                        |  |                                        | (271,204     | ) |      |   | (196,335    | )
|                                                                                  |  |                                        |              |   |      |   |             |  
|Net cash provided by operating activities                                         |  |                                        | 1,161,096    |   |      |   | 1,744,741   |  
|                                                                                  |  |                                        |              |   |      |   |             |  
|INVESTING ACTIVITIES                                                              |  |                                        |              |   |      |   |             |  
|Net decrease in loans, net of charge-offs                                         |  |                                        | 675,216      |   |      |   | 7,950,520   |  
|Proceeds from sales of securities available-for-sale                              |  |                                        | 6,199,061    |   |      |   | 356,564     |  
|Proceeds from maturities of securities available-for-sale                         |  |                                        | 202,129,066  |   |      |   | 90,048,969  |  
|Proceeds from maturities of securities held-to-maturity                           |  |                                        | 155,000      |   |      |   | 440,000     |  
|Principal collected on mortgage-backed securities                                 |  |                                        | 6,722,569    |   |      |   | 7,632,447   |  
|Purchases of securities available-for-sale                                        |  |                                        | (208,796,462 | ) |      |   | (93,584,959 | )
|Recoveries on loans previously charged-off                                        |  |                                        | 4,801        |   |      |   | 45,922      |  
|Purchases of premises and equipment                                               |  |                                        | (592,371     | ) |      |   | (81,896     | )
|                                                                                  |  |                                        |              |   |      |   |             |  
|Net cash provided by investing activities                                         |  |                                        | 6,496,880    |   |      |   | 12,807,567  |  
|                                                                                  |  |                                        |              |   |      |   |             |  
|FINANCING ACTIVITIES                                                              |  |                                        |              |   |      |   |             |  
|Net decrease in deposits                                                          |  |                                        | (5,695,643   | ) |      |   | (2,169,301  | )
|Dividends paid                                                                    |  |                                        | (871,213     | ) |      |   | (871,213    | )
|Increase (decrease) in short-term borrowings                                      |  |                                        | (1,062,413   | ) |      |   | 14,435      |  
|Increase (decrease) in FHLB and other long-term borrowings                        |  |                                        | 6,967,028    |   |      |   | (1,031,443  | )
|                                                                                  |  |                                        |              |   |      |   |             |  
|Net cash used in financing activities                                             |  |                                        | (662,241     | ) |      |   | (4,057,522  | )
|                                                                                  |  |                                        |              |   |      |   |             |  
|INCREASE IN CASH AND CASH EQUIVALENTS                                             |  |                                        | 6,995,735    |   |      |   | 10,494,786  |  
|CASH AND CASH EQUIVALENTS,                                                        |  |                                        |              |   |      |   |             |  
|BEGINNING OF YEAR                                                                 |  |                                        | 11,371,636   |   |      |   | 11,748,655  |  
|                                                                                  |  |                                        |              |   |      |   |             |  
|CASH AND CASH EQUIVALENTS,                                                        |  |                                        |              |   |      |   |             |  
|END OF PERIOD                                                                     |  | $                                      | 18,367,371   |   |      | $ | 22,243,441  |  
|                                                                                  |  |                                        |              |   |      |   |             |  
|Supplemental Disclosures:                                                         |  |                                        |              |   |      |   |             |  
|Cash Paid for Interest                                                            |  | $                                      | 4,046,469    |   |      | $ | 3,430,844   |  
|Cash Paid for Income Taxes                                                        |  | $                                      | 289,076      |   |      | $ | 431,021     |  

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, 2007 AND
2006

(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, 2007, 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, 2007 and December 31, 2006, 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 $1,998,064 as of September 30, 2007 which are subject to
recourse obligation or credit risk in the amount of $41,635. As of December 31, 2006 the loans sold under this agreement amounted to $1,487,168 and were subject to a recourse obligation or credit risk in the amount of $31,385. The amount of
income recognized as of a result of this agreement was $7,121 and $7,050 for the period ending September 30, 2007 and 2006, respectively.



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##### Table of Contents

First West Virginia Bancorp, Inc.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2007 AND
2006

(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 $2,109,677 at September 30, 2007, 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 $22,188 in the three month periods ended September 30, 2007 and 2006.
The unamortized balance from the purchase of these core deposit intangible assets is $36,979 and $103,543 at September 30, 2007 and December 31, 2006, respectively. The estimated aggregate amortization expense for each of the succeeding
periods is as follows: $22,187 in 2007 and $14,792 in 2008. 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, 2007 AND
2006

(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 $3,398,297 and
$3,307,711 at September 30, 2007 and December 31, 2006, respectively. The face value of the bank-owned life insurance at September 30, 2007 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 $36,839 and $41,527 for the three month periods ended September 30, 2007 and 2006, respectively. For the nine month periods ended September 30, 2007 and 2006 advertising expenses amounted to $136,531 and $99,397, 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, 2007 and September 30, 2006. 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 ended September 30, |  
|                           |  | 2007                                    |           |   | 2006                                    |   |           | 2007 |  |   | 2006      |  
|Before-tax amount          |  | $                                       | 1,315,935 |   |                                         | $ | 1,740,018 |      |  | $ | 431,736   |   |  | $ | 351,718   |  
|Tax effect                 |  |                                         | (495,186  | ) |                                         |   | (654,768  | )    |  |   | (162,462  | ) |  |   | (132,351  | )
|                           |  |                                         |           |   |                                         |   |           |      |  |   |           |   |  |   |           |  
|Net of tax effect          |  |                                         | 820,749   |   |                                         |   | 1,085,250 |      |  |   | 269,274   |   |  |   | 219,367   |  
|Net income as reported     |  |                                         | 579,613   |   |                                         |   | 591,693   |      |  |   | 1,501,031 |   |  |   | 1,741,169 |  
|                           |  |                                         |           |   |                                         |   |           |      |  |   |           |   |  |   |           |  
|Total comprehensive income |  | $                                       | 1,400,362 |   |                                         | $ | 1,676,943 |      |  | $ | 1,770,305 |   |  | $ | 1,960,536 |  
|                           |  |                                         |           |   |                                         |   |           |      |  |   |           |   |  |   |           |  

NOTE 2 - RECENT ACCOUNTING PRONOUNCEMENTS

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. Early adoption is permitted. The adoption of this standard is not expected to 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 is not expected to have a material effect on the Companys results of operations or financial position.



9



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##### Table of Contents

First West Virginia Bancorp, Inc.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2007 AND
2006

(Unaudited)

NOTE 2 -
RECENT ACCOUNTING PRONOUNCEMENTS (CONTINUED)

In June 2006, the FASB issued FASB Interpretation No. 48 (FIN 48), Accounting for
Uncertainty in Income Taxes. FIN 48 is an interpretation of FAS No. 109, Accounting for Income Taxes, and it seeks to reduce the diversity in practice associated with certain aspects of measurement and recognition in accounting for
income taxes. In addition, FIN No. 48 requires expanded disclosure with respect to the uncertainty in income taxes and is effective for fiscal years beginning after December 15, 2006. The Company is currently evaluating the impact the
adoption of the standard will have on the Companys results of operations.

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 Company is currently evaluating the impact the adoption of the
EITF will have on the Companys results of operations or financial condition.

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 Company is currently evaluating the impact the adoption of
the EITF will have on the Companys results of operations or financial condition.



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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 Ended September 30, |         |   | Nine Months EndedSeptember 30, |   |         | Years endedDecember 31, | 
|                                                  |  | 2007                             |         |   | 2006                           |   |         | 2007                    |  |   | 2006    |   |  | 2006 |         |   | 2005 |   |         | 2004 | 
|SUMMARY OF OPERATIONS                             |  |                                  |         |   |                                |   |         |                         |  |   |         |   |  |      |         |   |      |   |         |      |  |   |         |   |  |   |         |  
|Total interest income                             |  | $                                | 3,454   |   |                                | $ | 3,518   |                         |  | $ | 10,216  |   |  | $    | 10,321  |   |      | $ | 13,772  |      |  | $ | 13,128  |   |  | $ | 13,406  |  
|Total interest expense                            |  |                                  | 1,398   |   |                                |   | 1,289   |                         |  |   | 4,033   |   |  |      | 3,559   |   |      |   | 4,943   |      |  |   | 4,070   |   |  |   | 4,195   |  
|Net interest income                               |  |                                  | 2,056   |   |                                |   | 2,229   |                         |  |   | 6,183   |   |  |      | 6,762   |   |      |   | 8,829   |      |  |   | 9,058   |   |  |   | 9,211   |  
|Provision for loan losses                         |  |                                  | (100    | ) |                                |   |        |                         |  |   | (100    | ) |  |      |        |   |      |   |        |      |  |   | 180     |   |  |   | 300     |  
|Total other income                                |  |                                  | 370     |   |                                |   | 370     |                         |  |   | 1,005   |   |  |      | 1,079   |   |      |   | 1,433   |      |  |   | 1,378   |   |  |   | 1,284   |  
|Total other expenses                              |  |                                  | 1,787   |   |                                |   | 1,835   |                         |  |   | 5,439   |   |  |      | 5,652   |   |      |   | 7,614   |      |  |   | 7,451   |   |  |   | 6,747   |  
|Income before income taxes                        |  |                                  | 739     |   |                                |   | 764     |                         |  |   | 1,849   |   |  |      | 2,189   |   |      |   | 2,648   |      |  |   | 2,804   |   |  |   | 3,448   |  
|Net income                                        |  |                                  | 580     |   |                                |   | 592     |                         |  |   | 1,501   |   |  |      | 1,741   |   |      |   | 2,144   |      |  |   | 2,262   |   |  |   | 2,637   |  
|PER SHARE DATA                                    |  |                                  |         |   |                                |   |         |                         |  |   |         |   |  |      |         |   |      |   |         |      |  |   |         |   |  |   |         |  
|Net income                                        |  | $                                | 0.38    |   |                                | $ | 0.39    |                         |  | $ | 0.98    |   |  | $    | 1.14    |   |      | $ | 1.40    |      |  | $ | 1.48    |   |  | $ | 1.73    |  
|Cash dividends declared                           |  |                                  | 0.19    |   |                                |   | 0.19    |                         |  |   | 0.57    |   |  |      | 0.57    |   |      |   | 0.76    |      |  |   | 0.76    |   |  |   | 0.76    |  
|Book value per share                              |  |                                  | 17.13   |   |                                |   | 16.39   |                         |  |   | 17.13   |   |  |      | 16.39   |   |      |   | 16.54   |      |  |   | 15.68   |   |  |   | 15.67   |  
|AVERAGE BALANCE SHEET SUMMARY                     |  |                                  |         |   |                                |   |         |                         |  |   |         |   |  |      |         |   |      |   |         |      |  |   |         |   |  |   |         |  
|Total loans, net                                  |  | $                                | 120,087 |   |                                | $ | 129,379 |                         |  | $ | 120,022 |   |  | $    | 132,478 |   |      | $ | 129,997 |      |  | $ | 144,528 |   |  | $ | 151,562 |  
|Investment securities                             |  |                                  | 108,402 |   |                                |   | 107,664 |                         |  |   | 110,468 |   |  |      | 108,743 |   |      |   | 109,533 |      |  |   | 102,882 |   |  |   | 110,528 |  
|Deposits - interest bearing                       |  |                                  | 181,763 |   |                                |   | 189,847 |                         |  |   | 183,466 |   |  |      | 190,801 |   |      |   | 190,160 |      |  |   | 200,902 |   |  |   | 215,937 |  
|Stockholders equity                              |  |                                  | 26,264  |   |                                |   | 25,548  |                         |  |   | 26,080  |   |  |      | 25,289  |   |      |   | 25,416  |      |  |   | 24,409  |   |  |   | 23,092  |  
|Total assets                                      |  |                                  | 253,290 |   |                                |   | 262,319 |                         |  |   | 253,335 |   |  |      | 264,120 |   |      |   | 262,946 |      |  |   | 270,500 |   |  |   | 284,930 |  
|SELECTED RATIOS                                   |  |                                  |         |   |                                |   |         |                         |  |   |         |   |  |      |         |   |      |   |         |      |  |   |         |   |  |   |         |  
|Return on average assets                          |  |                                  | 0.91    | % |                                |   | 0.90    | %                       |  |   | 0.79    | % |  |      | 0.88    | % |      |   | 0.82    | %    |  |   | 0.84    | % |  |   | 0.93    | %
|Return on average equity                          |  |                                  | 8.76    | % |                                |   | 9.19    | %                       |  |   | 7.69    | % |  |      | 9.20    | % |      |   | 8.44    | %    |  |   | 9.27    | % |  |   | 11.42   | %
|Average equity to average assets                  |  |                                  | 10.37   | % |                                |   | 9.74    | %                       |  |   | 10.29   | % |  |      | 9.57    | % |      |   | 9.67    | %    |  |   | 9.02    | % |  |   | 8.10    | %
|Dividend payout ratio                             |  |                                  | 50.00   | % |                                |   | 48.72   | %                       |  |   | 58.16   | % |  |      | 50.00   | % |      |   | 54.29   | %    |  |   | 51.35   | % |  |   | 43.93   | %
|Loan to Deposit ratio                             |  |                                  | 58.59   | % |                                |   | 58.71   | %                       |  |   | 58.59   | % |  |      | 58.71   | % |      |   | 57.37   | %    |  |   | 61.79   | % |  |   | 65.35   | %
|                                                  |  |                                  |         |  
|                                                  |  | (Unaudited)September 30,         |         |   | December 31,                   |   |         |                         |  |   |         |  
|                                                  |  | 2007                             |         |   | 2006                           |   |         | 2006                    |  |   | 2005    |   |  | 2004 |         |   |      |   |         |      | 
|BALANCE SHEET                                     |  |                                  |         |   |                                |   |         |                         |  |   |         |   |  |      |         |   |      |   |         |      |  |   |         |   |  |   |         |  
|Investments                                       |  | $                                | 105,045 |   |                                | $ | 103,565 |                         |  | $ | 110,894 |   |  | $    | 107,998 |   |      | $ | 106,561 |      |  |   |         |   |  |   |         |  
|Loans                                             |  |                                  | 119,942 |   |                                |   | 127,196 |                         |  |   | 120,709 |   |  |      | 135,214 |   |      |   | 154,331 |      |  |   |         |   |  |   |         |  
|Allowance for loan losses                         |  |                                  | (2,110  | ) |                                |   | (2,298  | )                       |  |   | (2,297  | ) |  |      | (2,320  | ) |      |   | (2,356  | )    |  |   |         |   |  |   |         |  
|Other assets                                      |  |                                  | 32,794  |   |                                |   | 35,851  |                         |  |   | 25,132  |   |  |      | 25,321  |   |      |   | 21,266  |      |  |   |         |   |  |   |         |  
|                                                  |  |                                  |         |   |                                |   |         |                         |  |   |         |   |  |      |         |   |      |   |         |      |  |   |         |   |  |   |         |  
|Total Assets                                      |  | $                                | 255,671 |   |                                | $ | 264,314 |                         |  | $ | 254,438 |   |  | $    | 266,213 |   |      | $ | 279,802 |      |  |   |         |   |  |   |         |  
|                                                  |  |                                  |         |   |                                |   |         |                         |  |   |         |   |  |      |         |   |      |   |         |      |  |   |         |   |  |   |         |  
|Deposits                                          |  | $                                | 204,713 |   |                                | $ | 216,648 |                         |  | $ | 210,409 |   |  | $    | 218,817 |   |      | $ | 236,171 |      |  |   |         |   |  |   |         |  
|Federal funds purchased and repurchase agreements |  |                                  | 14,178  |   |                                |   | 19,099  |                         |  |   | 15,240  |   |  |      | 19,084  |   |      |   | 15,759  |      |  |   |         |   |  |   |         |  
|FHLB borrowings                                   |  |                                  | 9,310   |   |                                |   | 2,353   |                         |  |   | 2,343   |   |  |      | 2,385   |   |      |   | 2,425   |      |  |   |         |   |  |   |         |  
|Long term debt                                    |  |                                  |        |   |                                |   |        |                         |  |   |        |   |  |      | 1,000   |   |      |   |        |      |  |   |         |   |  |   |         |  
|Other liabilities                                 |  |                                  | 1,294   |   |                                |   | 1,166   |                         |  |   | 1,169   |   |  |      | 968     |   |      |   | 1,494   |      |  |   |         |   |  |   |         |  
|Stockholders equity                              |  |                                  | 26,176  |   |                                |   | 25,048  |                         |  |   | 25,277  |   |  |      | 23,959  |   |      |   | 23,953  |      |  |   |         |   |  |   |         |  
|                                                  |  |                                  |         |   |                                |   |         |                         |  |   |         |   |  |      |         |   |      |   |         |      |  |   |         |   |  |   |         |  
|Total Liabilities and Stockholders equity        |  | $                                | 255,671 |   |                                | $ | 264,314 |                         |  | $ | 254,438 |   |  | $    | 266,213 |   |      | $ | 279,802 |      |  |   |         |   |  |   |         |  
|                                                  |  |                                  |         |   |                                |   |         |                         |  |   |         |   |  |      |         |   |      |   |         |      |  |   |         |   |  |   |         |  



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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 $1,501,031 or $.98 per share for the nine months ended
September 30, 2007 compared to $1,741,169 or $1.14 per share for the same period during 2006. The decline in net income for the nine months ended September 30, 2007 as compared to the same period in 2006 of $240,138 or 13.8.% was primarily
the result of the decline in net interest income and in noninterest income, offset in part by the decrease in noninterest expenses combined with the decrease in the provision for loan losses. Net interest income fell $578,929 or 8.6% primarily due
to the increase of $473,891 or 13.3% in the interest expense paid on interest bearing liabilities combined with the decline of $467,396 or 7.1% in the interest earned on loans, offset in part by the increase of $370,870 or 10.8% in income earned on
investment securities. Noninterest income decreased primarily due to the decline in the gains on sales of investment securities, offset in part by the increase in service charges and other fee income combined with the increase in other operating
income. Noninterest expenses declined $213,150 or 3.8% during the nine month period ended September 30, 2007 as compared to the same period in 2006 due to the decreases in other operating expenses, occupancy expenses and in salary and employee
benefits expense.

For the third quarter of 2007, net income was $579,613 or $.38 per share as compared to $591,693 or $.39 per share for the same period
in 2006. The decrease in earnings of $12,080 or 2.0% was primarily due to decreases in net interest income and noninterest income, offset in part by the decrease in noninterest expenses combined with the decrease in the provision for loan losses.
Net interest income decreased $173,056 or 7.8% primarily due to the decrease in the interest earned on loans combined with the increase in the interest paid on interest bearing liabilities, offset in part by the increase in the income earned on the
investment securities. The decrease in noninterest income was primarily due to the decrease in the gains (losses) on sales of investment securities combined with the decrease in service charges and other fee income, offset in part by the increase in
other operating income. Noninterest expenses decreased $47,671 or 2.6% during the three month period ended September 30, 2007 as compared to the same period in 2006 primarily due to the reduction in other operating expenses combined with the
decrease in occupancy expenses, offset in part by a slight increase in salary and employee benefits expense. The ROA was .91% for the three months ended September 30, 2007 as compared to .90% for the same period of the prior year. For the three
months ended September 30, 2007 compared to September 30, 2006, the ROE was 8.76% and 9.19%, 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

The Company ended the third quarter of 2007 with total assets of $255,670,875. Total deposits decreased by $5,695,643, or 2.7% since December 31, 2006 and was primarily due to decreases in noninterest bearing
demand deposits, savings deposits and time deposits, offset in part by the increase in interest bearing demand deposits. The allowance for loan losses amounted to $2,109,677 or 1.8% of total loans at September 30, 2007. Non-performing assets
were $2,620,000 at September 30, 2007, as compared to $3,383,000 at December 31, 2006. The decrease in non-performing assets was primarily due to the decrease in nonaccrual loans during the nine month period ended September 30, 2007.

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.

EARNINGS ANALYSIS - For the nine months ended September 30, 2007

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, 2007 and 2006 and the year ended December 31, 2006.

For the nine months ended September 30, 2007, net interest income was $6,183,361, a decrease of $578,929 or 8.6%, from the same period in 2006. The decrease in net
interest income was primarily due to the decline in average earning assets combined with the decline in the taxable equivalent net yield on earning assets. The average earning assets declined approximately $11.3 million or 4.5% from
September 30, 2006 to 2007. The taxable equivalent net yield on earning assets decreased from 4.00% at September 30, 2006 to 3.88% at September 30, 2007.

Interest income decreased $105,038 or 1.0% during the nine months ended September 30, 2007 as compared to the same period in 2006 due to the decrease in the average earning assets, offset in part by the increase
in the average yield on earning assets. The increase in the average yield was primarily due to increases in the average yield and an in the average balance of investment securities combined with an increase in the average yield on loans, offset in
part by a decline in the average volume of loans.

Interest income on investment securities during the nine month period ended September 30, 2007
increased $370,870 or 10.8% as compared to the same period of the prior year. The rise in interest income on investment securities during the first nine months of 2007 was primarily due to an increase in the average yield earned combined with an
increase in the average balance of investment securities. During the first quarter of 2007, the Company sold approximately $4.2 million of lower yielding taxable investment securities to purchase higher yielding taxable investment securities to
improve the average yield. The taxable equivalent yield on investment securities rose .37% in 2007, from 4.73% at December 31, 2006 to 5.10% at September 30, 2007. The average investment securities balances have increased approximately $.9
million or .9% since December 31, 2006.

Interest and fees on loans decreased $467,396 or 7.1%, from the same period in 2006. The decline in interest
and fees on loans during the nine month period ended September 30, 2007 was primarily due to the decline in the average loan volume which was partially offset by an increase in the average yield on loans. The average loan volume decreased $10.0
million or 7.7% in 2007. The taxable equivalent yield on loans increased .19% in 2007 from 6.99% at December 31, 2006 to 7.18% at September 30, 2007 The decline in loan volume was primarily due to loan payoffs and the decreased demand for
quality loans combined with the increased competition from other financial institutions and lending companies.

Interest expense increased $473,891 or
13.3% during the the nine month period ended September 30, 2007 as compared to the same period in 2006. Increases in the average volume and the average yield on time deposits combined with the increase in the average yield on federal funds
purchased and repurchase agreements and interest bearing demand deposits and the increases in the average volume of Federal Home Loan Bank and other long term borrowings, offset in part by decreases in the average volume and average yield of savings
deposits, and decreases in the average volume of federal funds purchased and repurchase agreements and the decrease in the average yield on Federal Home Loan Bank and other long term borrowings contributed to the increase in interest expense during
the nine month period ended September 30, 2007. The average yield paid on interest bearing liabilities increased .34%, from 2.33% at December 31, 2006 to 2.67% at September 30, 2007.

Noninterest Income

Noninterest income decreased $74,552 or
6.9% for the nine months ended September 30, 2007 as compared to same period of the prior year. The decrease in noninterest income was primarily due to the decrease in gains (losses) on sales of investment securities, offset in part by
increases in service charges and other fee income and in other operating income. Service charges and other fees increased $12,629 during the nine months ended September 30, 2007, up 1.9%, from the same period in 2006. Service charges and other
fees rose primarily due to an increase in overdraft fees assessed on deposit accounts.

The Company and its subsidiary bank accounted for securities gains
of $6,904 and securities losses of $58,865 during the nine month period ended September 30, 2007 and securities gains of $66,153 and securities losses of $21,266 during the nine month period ended September 30, 2006.



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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, 2007 and 2006 and the year
ended December 31, 2006. Average balance sheet information for the periods ended September 30, 2007 and 2006 and December 31, 2006 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, 2007 |         |   | December 31, 2006 |   |             | For the nine months endedSeptember 30, 2006 |     
|                                                                                                                                                                                                                                                                                                                                                                 |  | AverageVolume                               |         |   | Interest          |   | AverageRate |                                             |      | AverageVolume |  |   | Interest    |   | AverageRate |   |        | AverageVolume |       |   | Interest |   | AverageRate |  
|ASSETS:                                                                                                                                                                                                                                                                                                                                                          |  |                                             |         |   |                   |   |             |                                             |      |               |  |   |             |   |             |   |        |               |       |   |          |   |             |   |  |   |        |  |       |  
|Investment securities:                                                                                                                                                                                                                                                                                                                                           |  |                                             |         |   |                   |   |             |                                             |      |               |  |   |             |   |             |   |        |               |       |   |          |   |             |   |  |   |        |  |       |  
|U.S. Treasury and U. S. Government agencies                                                                                                                                                                                                                                                                                                                      |  | $                                           | 32,178  |   |                   | $ | 1,028       |                                             | 4.27 | %             |  | $ | 40,506      |   |             | $ | 1,577  |               | 3.89  | % |          | $ | 40,905      |   |  | $ | 1,174  |  | 3.84  | %
|Mortgage backed securities                                                                                                                                                                                                                                                                                                                                       |  |                                             | 54,577  |   |                   |   | 2,086       |                                             | 5.11 | %             |  |   | 46,682      |   |             |   | 2,228  |               | 4.77  | % |          |   | 45,586      |   |  |   | 1,609  |  | 4.72  | %
|States and political subdivisions                                                                                                                                                                                                                                                                                                                                |  |                                             | 23,362  |   |                   |   | 667         |                                             | 3.82 | %             |  |   | 22,003      |   |             |   | 812    |               | 3.69  | % |          |   | 21,918      |   |  |   | 606    |  | 3.70  | %
|Other securities                                                                                                                                                                                                                                                                                                                                                 |  |                                             | 351     |   |                   |   | 12          |                                             | 4.57 | %             |  |   | 342         |   |             |   | 40     |               | 11.70 | % |          |   | 334         |   |  |   | 33     |  | 13.21 | %
|                                                                                                                                                                                                                                                                                                                                                                 |  |                                             |         |   |                   |   |             |                                             |      |               |  |   |             |   |             |   |        |               |       |   |          |   |             |   |  |   |        |  |       |  
|Total Investment securities:                                                                                                                                                                                                                                                                                                                                     |  |                                             | 110,468 |   |                   |   | 3,793       |                                             | 4.59 | %             |  |   | 109,533     |   |             |   | 4,657  |               | 4.25  | % |          |   | 108,743     |   |  |   | 3,422  |  | 4.21  | %
|Interest bearing deposits                                                                                                                                                                                                                                                                                                                                        |  |                                             | 917     |   |                   |   | 35          |                                             | 5.10 | %             |  |   | 1,623       |   |             |   | 83     |               | 5.11  | % |          |   | 1,402       |   |  |   | 53     |  | 5.05  | %
|Federal funds sold                                                                                                                                                                                                                                                                                                                                               |  |                                             | 5,131   |   |                   |   | 195         |                                             | 5.08 | %             |  |   | 5,701       |   |             |   | 280    |               | 4.91  | % |          |   | 5,357       |   |  |   | 190    |  | 4.74  | %
|Loans, net of unearned income                                                                                                                                                                                                                                                                                                                                    |  |                                             | 120,022 |   |                   |   | 6,152       |                                             | 6.85 | %             |  |   | 129,997     |   |             |   | 8,703  |               | 6.69  | % |          |   | 132,478     |   |  |   | 6,619  |  | 6.68  | %
|Other earning assets                                                                                                                                                                                                                                                                                                                                             |  |                                             | 998     |   |                   |   | 41          |                                             | 5.49 | %             |  |   | 887         |   |             |   | 49     |               | 5.52  | % |          |   | 877         |   |  |   | 37     |  | 5.64  | %
|                                                                                                                                                                                                                                                                                                                                                                 |  |                                             |         |   |                   |   |             |                                             |      |               |  |   |             |   |             |   |        |               |       |   |          |   |             |   |  |   |        |  |       |  
|Total earning assets                                                                                                                                                                                                                                                                                                                                             |  |                                             | 237,536 |   |                   |   | 10,216      |                                             | 5.75 | %             |  |   | 247,741     |   |             |   | 13,772 |               | 5.56  | % |          |   | 248,857     |   |  |   | 10,321 |  | 5.55  | %
|Other assets                                                                                                                                                                                                                                                                                                                                                     |  |                                             | 18,053  |   |                   |   |             |                                             |      |               |  |   | 17,529      |   |             |   |        |               |       |   |          |   | 17,594      |   |  |   |        |  |       |  
|Allowance for loan losses                                                                                                                                                                                                                                                                                                                                        |  |                                             | (2,254  | ) |                   |   |             |                                             |      |               |  |   | (2,324      | ) |             |   |        |               |       |   |          |   | (2,331      | ) |  |   |        |  |       |  
|                                                                                                                                                                                                                                                                                                                                                                 |  |                                             |         |   |                   |   |             |                                             |      |               |  |   |             |   |             |   |        |               |       |   |          |   |             |   |  |   |        |  |       |  
|Total Assets                                                                                                                                                                                                                                                                                                                                                     |  | $                                           | 253,335 |   |                   |   |             |                                             |      |               |  | $ | 262,946     |   |             |   |        |               |       |   |          | $ | 264,120     |   |  |   |        |  |       |  
|                                                                                                                                                                                                                                                                                                                                                                 |  |                                             |         |   |                   |   |             |                                             |      |               |  |   |             |   |             |   |        |               |       |   |          |   |             |   |  |   |        |  |       |  
|LIABILITIES                                                                                                                                                                                                                                                                                                                                                      |  |                                             |         |   |                   |   |             |                                             |      |               |  |   |             |   |             |   |        |               |       |   |          |   |             |   |  |   |        |  |       |  
|Time deposits                                                                                                                                                                                                                                                                                                                                                    |  | $                                           | 95,913  |   |                   | $ | 3,084       |                                             | 4.30 | %             |  | $ | 92,141      |   |             | $ | 3,495  |               | 3.79  | % |          | $ | 89,743      |   |  | $ | 2,448  |  | 3.65  | %
|Savings deposits                                                                                                                                                                                                                                                                                                                                                 |  |                                             | 53,106  |   |                   |   | 312         |                                             | 0.79 | %             |  |   | 61,757      |   |             |   | 522    |               | 0.85  | % |          |   | 64,159      |   |  |   | 414    |  | 0.86  | %
|Interest bearing demand deposits                                                                                                                                                                                                                                                                                                                                 |  |                                             | 34,447  |   |                   |   | 98          |                                             | 0.38 | %             |  |   | 36,262      |   |             |   | 128    |               | 0.35  | % |          |   | 36,899      |   |  |   | 94     |  | 0.34  | %
|Federal funds purchased and repurchase agreements                                                                                                                                                                                                                                                                                                                |  |                                             | 14,349  |   |                   |   | 391         |                                             | 3.64 | %             |  |   | 18,891      |   |             |   | 656    |               | 3.47  | % |          |   | 19,287      |   |  |   | 489    |  | 3.39  | %
|FHLB and other long-term borrowings                                                                                                                                                                                                                                                                                                                              |  |                                             | 4,018   |   |                   |   | 148         |                                             | 4.92 | %             |  |   | 2,753       |   |             |   | 142    |               | 5.16  | % |          |   | 2,890       |   |  |   | 114    |  | 5.27  | %
|                                                                                                                                                                                                                                                                                                                                                                 |  |                                             |         |   |                   |   |             |                                             |      |               |  |   |             |   |             |   |        |               |       |   |          |   |             |   |  |   |        |  |       |  
|Total interest bearing liabilities                                                                                                                                                                                                                                                                                                                               |  |                                             | 201,833 |   |                   |   | 4,033       |                                             | 2.67 | %             |  |   | 211,804     |   |             |   | 4,943  |               | 2.33  | % |          |   | 212,978     |   |  |   | 3,559  |  | 2.23  | %
|Demand deposits                                                                                                                                                                                                                                                                                                                                                  |  |                                             | 24,192  |   |                   |   |             |                                             |      |               |  |   | 24,537      |   |             |   |        |               |       |   |          |   | 24,707      |   |  |   |        |  |       |  
|Other liabilities                                                                                                                                                                                                                                                                                                                                                |  |                                             | 1,230   |   |                   |   |             |                                             |      |               |  |   | 1,189       |   |             |   |        |               |       |   |          |   | 1,146       |   |  |   |        |  |       |  
|                                                                                                                                                                                                                                                                                                                                                                 |  |                                             |         |   |                   |   |             |                                             |      |               |  |   |             |   |             |   |        |               |       |   |          |   |             |   |  |   |        |  |       |  
|Total Liabilities                                                                                                                                                                                                                                                                                                                                                |  |                                             | 227,255 |   |                   |   |             |                                             |      |               |  |   | 237,530     |   |             |   |        |               |       |   |          |   | 238,831     |   |  |   |        |  |       |  
|STOCKHOLDERS EQUITY                                                                                                                                                                                                                                                                                                                                             |  |                                             | 26,080  |   |                   |   |             |                                             |      |               |  |   | 25,416      |   |             |   |        |               |       |   |          |   | 25,289      |   |  |   |        |  |       |  
|                                                                                                                                                                                                                                                                                                                                                                 |  |                                             |         |   |                   |   |             |                                             |      |               |  |   |             |   |             |   |        |               |       |   |          |   |             |   |  |   |        |  |       |  
|Total Liabilities and Stockholders Equity                                                                                                                                                                                                                                                                                                                       |  | $                                           | 253,335 |   |                   |   |             |                                             |      |               |  | $ | 262,946     |   |             |   |        |               |       |   |          | $ | 264,120     |   |  |   |        |  |       |  
|                                                                                                                                                                                                                                                                                                                                                                 |  |                                             |         |   |                   |   |             |                                             |      |               |  |   |             |   |             |   |        |               |       |   |          |   |             |   |  |   |        |  |       |  
|Net yield on earning assets                                                                                                                                                                                                                                                                                                                                      |  |                                             |         |   |                   | $ | 6,183       |                                             | 3.48 | %             |  |   |             |   |             | $ | 8,829  |               | 3.56  | % |          |   |             |   |  | $ | 6,762  |  | 3.63  | %
|                                                                                                                                                                                                                                                                                                                                                                 |  |                                             |         |   |                   |   |             |                                             |      |               |  |   |             |   |             |   |        |               |       |   |          |   |             |   |  |   |        |  |       |  
|                                                                                                                                                                                                                                                                                                                                                                
|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, 2007 and 2006, and the year ended December 31, 2006, respectively. The effect of this adjustment is presented below. | 
|                                                                                                                                                                                                                                                                                                                                                                 |  |                                             |         |   |                   |   |             |                                             |     
|Investment securities                                                                                                                                                                                                                                                                                                                                            |  | $                                           | 110,468 |   |                   | $ | 4,216       |                                             | 5.10 | %             |  | $ | 109,533     |   |             | $ | 5,178  |               | 4.73  | % |          | $ | 108,743     |   |  | $ | 3,809  |  | 4.68  | %
|Loans                                                                                                                                                                                                                                                                                                                                                            |  |                                             | 120,022 |   |                   |   | 6,445       |                                             | 7.18 | %             |  |   | 129,997     |   |             |   | 9,087  |               | 6.99  | % |          |   | 132,478     |   |  |   | 6,911  |  | 6.97  | %
|                                                                                                                                                                                                                                                                                                                                                                 |  |                                             |         |   |                   |   |             |                                             |      |               |  |   |             |   |             |   |        |               |       |   |          |   |             |   |  |   |        |  |       |  
|Total earning assets                                                                                                                                                                                                                                                                                                                                             |  | $                                           | 237,536 |   |                   | $ | 10,932      |                                             | 6.15 | %             |  | $ | 247,741     |   |             | $ | 14,677 |               | 5.92  | % |          | $ | 248,857     |   |  | $ | 11,000 |  | 5.91  | %
|                                                                                                                                                                                                                                                                                                                                                                 |  |                                             |         |   |                   |   |             |                                             |      |               |  |   |             |   |             |   |        |               |       |   |          |   |             |   |  |   |        |  |       |  
|Taxable equivalent net yield on earning assets                                                                                                                                                                                                                                                                                                                   |  |                                             |         |   |                   | $ | 6,899       |                                             | 3.88 | %             |  |   |             |   |             | $ | 9,734  |               | 3.93  | % |          |   |             |   |  | $ | 7,441  |  | 4.00  | %
|                                                                                                                                                                                                                                                                                                                                                                 |  |                                             |         |   |                   |   |             |                                             |      |               |  |   |             |   |             |   |        |               |       |   |          |   |             |   |  |   |        |  |       |  



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, 2007 (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, 2007, other operating income increased $9,667 or 2.7% compared to the same period in 2006. The increase in other
operating income was primarily due to increases in ATM fees, in earnings related to the cash surrender value of the bank owned life insurance on its key officers, in credit life commissions and in miscellaneous income, partially offset by declines
in sales of checkbooks and in utility bill and collection fees during the nine months ended September 30, 2007 compared to the same period in the prior year.

Noninterest Expense

Noninterest expense decreased $213,150 or 3.8% for the nine months ended September 30, 2007 as compared to
same period of the prior year. The decrease in noninterest expense was primarily due to decreases in other operating expenses, salary and employee benefits and net occupancy expense of premises.

Salary and employee benefits decreased $11,811 or .4% during the nine months ended September 30, 2007 over the same period in 2006. The decrease in salary and
employee benefit expense in 2007 compared to 2006 was primarily due to the reduction in employee benefit expenses related to deferred compensation expenses, offset in part by normal annual merit adjustments. Net occupancy expenses of premises
declined $32,388 or 3.8% during the nine months ended September 30, 2007 compared to the same period in 2006. Decreased furniture and fixture expenses and property insurance costs, offset in part by increased occupancy expenses and real estate
taxes primarily contributed to the increase in 2007 as compared to 2006.

Other operating expense decreased $168,951, or 9.2%, compared to the same period
of the prior year. The decline in other operating expenses was attributable primarily to a reduction in regulatory assessments, other expenses, stationery and supplies expenses, other taxes, service expenses, directors fees, and postage and
transportation expenses, offset in part by an increase in advertising expenses.

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



|                                            |  |      |           |      |   |          
|------------------------------------------- |  | ---- | --------- | ---- | - | ---------
|Unaudited                                   |  | 2007 |           | 2006
|Directors fees                             |  | $    | 99,700    |      | $ | 111,100  
|Stationery and supplies                     |  |      | 104,894   |      |   | 127,856  
|Regulatory assessment and deposit insurance |  |      | 80,762    |      |   | 160,969  
|Advertising                                 |  |      | 136,531   |      |   | 99,397   
|Postage and transportation                  |  |      | 142,432   |      |   | 151,638  
|Other taxes                                 |  |      | 142,644   |      |   | 161,642  
|Service expense                             |  |      | 344,824   |      |   | 356,364  
|Other                                       |  |      | 617,403   |      |   | 669,175  
|                                            |  |      |           |      |   |          
|Total                                       |  | $    | 1,669,190 |      | $ | 1,838,141
|                                            |  |      |           |      |   |          

Income Taxes

Income tax expense for the nine month period ended September 30, 2007 was $347,613, decreasing 22.4% compared to the same period in 2006. Income tax expense decreased primarily due to the decrease in pre-taxable income of $340,331
combined with an increase in tax-exempt income during the nine month period of 2007 over the same period in 2006. Components of the income tax expense for September 30, 2007 were $278,309 for federal taxes and $69,304 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, 2007 and 2006 and for the year ended December 31,
2006.

EARNINGS ANALYSIS - For the three months ended September 30, 2007

Net Interest Income

For the three months ended September 30, 2007, net interest income was $2,056,517,
decreasing $173,056 or 7.8%, from the same period in 2006. The decrease in net interest income was primarily due to a decline in average earning assets combined with the decline in the taxable equivalent net yield on earning assets. The average
earning assets declined $10.0 million or 4.1% from September 30, 2006 to 2007. The taxable equivalent net yield on earnings assets decreased from 3.95% at September 30, 2006 to 3.84% at September 30, 2007. Table Three presents the
average balance sheets and an interest rate analysis for three months ended September 30, 2007 and 2006.

Interest income decreased $63,979 or 1.8%
during the third quarter of 2007 compared to the same period in 2006. The decrease in interest income was primarily due to the decline in average earning assets, offset in part by an increase in the average yield of earning assets. The increase in
the average yield was primarily due to an increase in the average yield and an increase in the average balances of investment securities combined with an increase in the average yield on loans, offset in part by a decline in the average balances of
loans.



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 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, 2007 and 2006.
Average balance sheet information for the periods ended September 30, 2007 and 2006 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, 2007 and 2006.



|                                                                                                                                                                                                                                                                                                                            |  |                                              |         |   |                                              |   |             |  |      |               |  |   |          |   |             |   |       |  |      |  
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------- | ------- | - | -------------------------------------------- | - | ----------- |  | ---- | ------------- |  | - | -------- | - | ----------- | - | ----- |  | ---- | -
|                                                                                                                                                                                                                                                                                                                            |  | (Unaudited)                                  |         |   | (Unaudited)                                  |  
|                                                                                                                                                                                                                                                                                                                            |  | For the three months endedSeptember 30, 2007 |         |   | For the three months endedSeptember 30, 2006 |  
|                                                                                                                                                                                                                                                                                                                            |  | AverageVolume                                |         |   | Interest                                     |   | AverageRate |  |      | AverageVolume |  |   | Interest |   | AverageRate |  
|ASSETS:                                                                                                                                                                                                                                                                                                                     |  |                                              |         |   |                                              |   |             |  |      |               |  |   |          |   |             |   |       |  |      |  
|Investment securities:                                                                                                                                                                                                                                                                                                      |  |                                              |         |   |                                              |   |             |  |      |               |  |   |          |   |             |   |       |  |      |  
|U.S. Treasury and other U. S.                                                                                                                                                                                                                                                                                               |  |                                              |         |   |                                              |   |             |  |      |               |  |   |          |   |             |   |       |  |      |  
|Government agencies                                                                                                                                                                                                                                                                                                         |  | $                                            | 30,829  |   |                                              | $ | 326         |  | 4.20 | %             |  | $ | 39,592   |   |             | $ | 393   |  | 3.94 | %
|Mortgage backed securities                                                                                                                                                                                                                                                                                                  |  |                                              | 54,136  |   |                                              |   | 693         |  | 5.08 | %             |  |   | 45,872   |   |             |   | 555   |  | 4.80 | %
|Obligations of states and political subdivisions                                                                                                                                                                                                                                                                            |  |                                              | 23,090  |   |                                              |   | 223         |  | 3.83 | %             |  |   | 21,830   |   |             |   | 201   |  | 3.65 | %
|Other securities                                                                                                                                                                                                                                                                                                            |  |                                              | 347     |   |                                              |   | 4           |  | 4.57 | %             |  |   | 370      |   |             |   | 2     |  | 2.14 | %
|                                                                                                                                                                                                                                                                                                                            |  |                                              |         |   |                                              |   |             |  |      |               |  |   |          |   |             |   |       |  |      |  
|Total Investment securities:                                                                                                                                                                                                                                                                                                |  |                                              | 108,402 |   |                                              |   | 1,246       |  | 4.56 | %             |  |   | 107,664  |   |             |   | 1,151 |  | 4.24 | %
|Interest bearing deposits                                                                                                                                                                                                                                                                                                   |  |                                              | 1,239   |   |                                              |   | 16          |  | 5.12 | %             |  |   | 2,952    |   |             |   | 39    |  | 5.24 | %
|Federal funds sold                                                                                                                                                                                                                                                                                                          |  |                                              | 6,021   |   |                                              |   | 73          |  | 4.81 | %             |  |   | 6,018    |   |             |   | 76    |  | 5.01 | %
|Loans, net of unearned income                                                                                                                                                                                                                                                                                               |  |                                              | 120,087 |   |                                              |   | 2,105       |  | 6.95 | %             |  |   | 129,379  |   |             |   | 2,239 |  | 6.87 | %
|Other earning assets                                                                                                                                                                                                                                                                                                        |  |                                              | 1,143   |   |                                              |   | 14          |  | 4.86 | %             |  |   | 922      |   |             |   | 13    |  | 5.59 | %
|                                                                                                                                                                                                                                                                                                                            |  |                                              |         |   |                                              |   |             |  |      |               |  |   |          |   |             |   |       |  |      |  
|Total earning assets                                                                                                                                                                                                                                                                                                        |  |                                              | 236,892 |   |                                              |   | 3,454       |  | 5.78 | %             |  |   | 246,935  |   |             |   | 3,518 |  | 5.65 | %
|Other assets                                                                                                                                                                                                                                                                                                                |  |                                              | 18,611  |   |                                              |   |             |  |      |               |  |   | 17,702   |   |             |   |       |  |      |  
|Allowance for loan losses                                                                                                                                                                                                                                                                                                   |  |                                              | (2,213  | ) |                                              |   |             |  |      |               |  |   | (2,318   | ) |             |   |       |  |      |  
|                                                                                                                                                                                                                                                                                                                            |  |                                              |         |   |                                              |   |             |  |      |               |  |   |          |   |             |   |       |  |      |  
|Total Assets                                                                                                                                                                                                                                                                                                                |  | $                                            | 253,290 |   |                                              |   |             |  |      |               |  | $ | 262,319  |   |             |   |       |  |      |  
|                                                                                                                                                                                                                                                                                                                            |  |                                              |         |   |                                              |   |             |  |      |               |  |   |          |   |             |   |       |  |      |  
|LIABILITIES                                                                                                                                                                                                                                                                                                                 |  |                                              |         |   |                                              |   |             |  |      |               |  |   |          |   |             |   |       |  |      |  
|Time deposits                                                                                                                                                                                                                                                                                                               |  | $                                            | 95,584  |   |                                              | $ | 1,045       |  | 4.34 | %             |  | $ | 94,338   |   |             | $ | 917   |  | 3.86 | %
|Savings deposits                                                                                                                                                                                                                                                                                                            |  |                                              | 51,964  |   |                                              |   | 102         |  | 0.78 | %             |  |   | 59,672   |   |             |   | 123   |  | 0.82 | %
|Interest bearing demand deposits                                                                                                                                                                                                                                                                                            |  |                                              | 34,215  |   |                                              |   | 39          |  | 0.45 | %             |  |   | 35,837   |   |             |   | 37    |  | 0.41 | %
|Federal funds purchased and repurchase agreements                                                                                                                                                                                                                                                                           |  |                                              | 13,278  |   |                                              |   | 119         |  | 3.56 | %             |  |   | 19,385   |   |             |   | 183   |  | 3.75 | %
|FHLB and other long-term borrowings                                                                                                                                                                                                                                                                                         |  |                                              | 7,337   |   |                                              |   | 93          |  | 5.03 | %             |  |   | 2,358    |   |             |   | 28    |  | 4.71 | %
|                                                                                                                                                                                                                                                                                                                            |  |                                              |         |   |                                              |   |             |  |      |               |  |   |          |   |             |   |       |  |      |  
|Total interest bearing liabilities                                                                                                                                                                                                                                                                                          |  |                                              | 202,378 |   |                                              |   | 1,398       |  | 2.74 | %             |  |   | 211,590  |   |             |   | 1,288 |  | 2.42 | %
|Demand deposits                                                                                                                                                                                                                                                                                                             |  |                                              | 23,344  |   |                                              |   |             |  |      |               |  |   | 23,907   |   |             |   |       |  |      |  
|Other liabilities                                                                                                                                                                                                                                                                                                           |  |                                              | 1,304   |   |                                              |   |             |  |      |               |  |   | 1,274    |   |             |   |       |  |      |  
|                                                                                                                                                                                                                                                                                                                            |  |                                              |         |   |                                              |   |             |  |      |               |  |   |          |   |             |   |       |  |      |  
|Total Liabilities                                                                                                                                                                                                                                                                                                           |  |                                              | 227,026 |   |                                              |   |             |  |      |               |  |   | 236,771  |   |             |   |       |  |      |  
|STOCKHOLDERS EQUITY                                                                                                                                                                                                                                                                                                        |  |                                              | 26,264  |   |                                              |   |             |  |      |               |  |   | 25,548   |   |             |   |       |  |      |  
|                                                                                                                                                                                                                                                                                                                            |  |                                              |         |   |                                              |   |             |  |      |               |  |   |          |   |             |   |       |  |      |  
|Total Liabilities and Stockholders Equity                                                                                                                                                                                                                                                                                  |  | $                                            | 253,290 |   |                                              |   |             |  |      |               |  | $ | 262,319  |   |             |   |       |  |      |  
|                                                                                                                                                                                                                                                                                                                            |  |                                              |         |   |                                              |   |             |  |      |               |  |   |          |   |             |   |       |  |      |  
|Net yield on earning assets                                                                                                                                                                                                                                                                                                 |  |                                              |         |   |                                              | $ | 2,056       |  | 3.44 | %             |  |   |          |   |             | $ | 2,230 |  | 3.58 | %
|                                                                                                                                                                                                                                                                                                                            |  |                                              |         |   |                                              |   |             |  |      |               |  |   |          |   |             |   |       |  |      |  
|                                                                                                                                                                                                                                                                                                                           
|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, 2007 and 2006, respectively. The effect of this adjustment is presented below. | 
|                                                                                                                                                                                                                                                                                                                            |  |                                              |         |   |                                              |  
|Investment securities                                                                                                                                                                                                                                                                                                       |  | $                                            | 108,402 |   |                                              | $ | 1,385       |  | 5.07 | %             |  | $ | 107,664  |   |             | $ | 1,282 |  | 4.72 | %
|Loans                                                                                                                                                                                                                                                                                                                       |  |                                              | 120,087 |   |                                              |   | 2,205       |  | 7.28 | %             |  |   | 129,379  |   |             |   | 2,336 |  | 7.16 | %
|                                                                                                                                                                                                                                                                                                                            |  |                                              |         |   |                                              |   |             |  |      |               |  |   |          |   |             |   |       |  |      |  
|Total earning assets                                                                                                                                                                                                                                                                                                        |  | $                                            | 236,892 |   |                                              | $ | 3,693       |  | 6.18 | %             |  | $ | 246,935  |   |             | $ | 3,746 |  | 6.02 | %
|                                                                                                                                                                                                                                                                                                                            |  |                                              |         |   |                                              |   |             |  |      |               |  |   |          |   |             |   |       |  |      |  
|Taxable equivalent net yield on earning assets                                                                                                                                                                                                                                                                              |  |                                              |         |   |                                              | $ | 2,295       |  | 3.84 | %             |  |   |          |   |             | $ | 2,458 |  | 3.95 | %
|                                                                                                                                                                                                                                                                                                                            |  |                                              |         |   |                                              |   |             |  |      |               |  |   |          |   |             |   |       |  |      |  



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 three months ended September 30, 2007

Net Interest Income (continued)

Interest income on investment securities increased $95,195 or 8.3% during the third quarter of 2007 compared to the same period of the prior year.
The increase in interest income on investment securities was due to the rise in the average yield earned combined with an increase in the average volume. The taxable equivalent yield earned on investment securities rose .35%, to 5.07% for the three
months ended September 30, 2007 as compared to 4.72% for the same period in 2006.

Interest and fees on loans decreased $134,022 or 6.0% for the three
month period ended September 30, 2007 as compared to the same period in 2006 due to the decline in the average loan volume which was partially offset by an increase in the average yield on loans. The average balances on loans declined $9.3
million or 7.2% since September 30, 2006. The decline in loan volume was primarily due to loan payoffs and the decreased demand for quality loans as a result of the higher interest rate environment and the competition from other financial
institutions and lending companies. The taxable equivalent yield on loans rose .29% , to 7.28% at September 30, 2007 from 6.99% at December 31, 2006 and increased .12% from September 30, 2006.

Interest expense on interest bearing liabilities increased $109,077 or 8.5% during the three months ended September 30, 2007 as compared to the same period in 2006.
The increase in the interest expense paid on interest bearing liabilities was attributable to the increase in the average yield, offset in part by the decline in the average balances. Specifically, increases in the average balance and yield on time
deposits and FHLB and other long term borrowings combined with the increase in the average yield on interest bearing demand deposits, offset in part by decreases in the average balance and yield of savings deposits and repurchase agreements and the
decrease in the average yield on interest bearing deposits contributed to the increase in interest expense during the three month period ended September 30, 2007 as compared to the same period in the prior year. The average yield paid on
interest bearing liabilities was up .32%, from 2.42% at September 30, 2006 to 2.74% at September 30, 2007. The rise in the average yields on deposit liabilities was the result of the Companys increase in the interest rates paid on
deposit products to meet competitive market pressures primarily on certificates of deposit combined with the change in the deposit mix from savings deposits to certificates of deposit as a result of customers seeking higher yielding deposit
products. The average volume of interest bearing liabilities declined $9.2 million or 4.4%, from $211.6 million at September 30, 2006 to $202.4 million at September 30, 2007.

Noninterest Income

Service charges and other fee income decreased $3,212 during the three months ended
September 30, 2007, down 1.3%, from the same period in 2006. The decrease in service charges primarily resulted from the decline in servicing fees earned from deposit customer accounts, offset in part by the increase in fees earned from the
overdraft protection program.

The Company accounted for securities gains of $333 and securities losses of $938 during the three month period ended
September 30, 2007 and securities gains of $812 and securities losses of $34 during the same period in 2006.

Other operating income increased $4,474
or 3.5% as compared to same period of the prior year. The increase in other operating income during the three month period ended September 30, 2007 as compared to the same period in the prior year was primarily due to increases in ATM fees, in
earnings related to the cash surrender value of the bank owned life insurance on its key officers, and sales of checkbooks, partially offset by declines in FHLB servicing fees, credit life commissions and in utility bill and collection fees.

Noninterest Expense

Noninterest expense
decreased $47,671 or 2.6% for the three months ended September 30, 2007 as compared to same period of the prior year. The decrease in noninterest expense was primarily due to decreases in occupancy expenses of premises and in other operating
expenses, offset in part by an increase in salary and employee benefits expenses.

Other operating expense decreased $43,086, or 7.1%, compared to the same
period of the prior year. The decline in other operating expenses during the three month period ended September 30, 2007 as compared to the same period in 2006 was attributable primarily due to the decreases in regulatory assessments, director
fees, postage and transportation expenses, other taxes, stationery and supplies expenses, advertising and other expenses which were offset in part by an increase in service expenses.

Net occupancy expenses of premises decreased $8,749, or 3.2%, compared to the same period of the prior year. The decrease in net occupancy expense during the three month period ended September 30, 2007 as
compared to the same period in 2006 was primarily due to the decrease in furniture and fixture expenses which was primarily in depreciation expenses, offset in part by increases in real estate taxes and insurance expenses.

Salary and employee benefits increased $4,164 or .4% during the three months ended September 30, 2007 over the same period in 2006. The increase in salary and
employee benefit expense in 2007 compared to 2006 was primarily due to the increase in salaries due to normal annual merit adjustments partially offset by the reduction in employee benefits expenses and payroll taxes.



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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                                   |  | 2007 |         | 2006
|Directors fees                             |  | $    | 31,975  |      | $ | 32,925 
|Stationery and supplies                     |  |      | 31,268  |      |   | 33,877 
|Regulatory assessment and deposit insurance |  |      | 26,706  |      |   | 52,974 
|Advertising                                 |  |      | 36,839  |      |   | 41,528 
|Postage and transportation                  |  |      | 49,585  |      |   | 53,192 
|Other taxes                                 |  |      | 48,949  |      |   | 53,041 
|Service expense                             |  |      | 118,354 |      |   | 115,113
|Other                                       |  |      | 216,680 |      |   | 220,792
|                                            |  |      |         |      |   |        
|Total                                       |  | $    | 560,356 |      | $ | 603,442
|                                            |  |      |         |      |   |        

Income Taxes

Income tax expense for the three month period ended June 30, 2007 was $133,269, increasing 7.6% compared to the same period in 2006. Income tax expense increased primarily due to the increase in tax exempt income during the three month
period ended June 30, 2007 over the same period in 2006. Components of the income tax expense for the three months ended June 30, 2007 were $118,125 for federal taxes and $15,144 for West Virginia corporate net income taxes.

Balance Sheet Analysis

Investments

Investment securities decreased approximately $5.8 million or 5.3% from December 31, 2006 to September 30, 2007. 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 79.3% of total securities at September 30, 2007, as compared to 80.0% at December 31, 2006. 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 decreased by $674,615 and $1,106,350 at September 30, 2007 and December 31, 2006,
respectively. The fair value of securities classified as held to maturity was above book value by $10,411 and $16,386 at September 30, 2007 and December 31, 2006, respectively.

Table Four - Investment Portfolio

The following table presents the book values of investment securities.



|                                                                                     |  |                   |          |                  |   |         
|------------------------------------------------------------------------------------ |  | ----------------- | -------- | ---------------- | - | --------
|                                                                                     |  | (Unaudited)       |          |                 
|(dollars in thousands)                                                               |  | September 30,2007 |          | December 31,2006
|Securities held-to-maturity:                                                         |  |                   |          |                  |   |         
|Obligations of states and political subdivisions                                     |  | $                 | 819      |                  | $ | 973     
|                                                                                     |  |                   |          |                  |   |         
|Total held-to-maturity                                                               |  |                   | 819      |                  |   | 973     
|                                                                                     |  |                   |          |                  |   |         
|Securities available-for-sale:                                                       |  |                   |          |                  |   |         
|U.S. Treasury securities and obligations ofU.S. Government corporations and agencies |  |                   | 29,442   |                  |   | 36,197  
|Obligations of states and political subdivisions                                     |  |                   | 21,919   |                  |   | 21,684  
|Mortgage-backed securities                                                           |  |                   | 52,504   |                  |   | 51,665  
|Equity securities                                                                    |  |                   | 361      |                  |   | 375     
|                                                                                     |  |                   |          |                  |   |         
|Total available-for-sale                                                             |  |                   | 104,226  |                  |   | 109,921 
|Total                                                                                |  |                   | $105,045 |                  |   | $110,894
|                                                                                     |  |                   |          |                  |   |         



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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, 2007:



|                                                                       |  |                                             |        |                       |                          |      |           |       |                       |        |  |           |      |                       |  |   |        |  |   |      |  
|---------------------------------------------------------------------- |  | ------------------------------------------- | ------ | --------------------- | ------------------------ | ---- | --------- | ----- | --------------------- | ------ |  | --------- | ---- | --------------------- |  | - | ------ |  | - | ---- | -
|                                                                       |  | (Expressed in thousands) September 30, 2007 |       
|                                                                       |  | Less than Twelve Months                     |        |                       | Twelve Months or Greater |      |           | Total |                      
|                                                                       |  | FairValue                                   |        | GrossUnrealizedLosses |                          |      | FairValue |       | GrossUnrealizedLosses |        |  | FairValue |      | GrossUnrealizedLosses | 
|U.S. Treasury securities and U.S. Government corporations and agencies |  |                                             |        |                       |                          |      |           |       |                       |        |  |           |      |                       |  |   |        |  |   |      |  
|                                                                       |  | $                                           |       |                       | $                        |     |           |       | $                     | 19,419 |  | $         | (149 | )                     |  | $ | 19,419 |  | $ | (149 | )
|Obligations of states and political subdivisions                       |  |                                             |        |                       |                          |      |           |       |                       |        |  |           |      |                       |  |   |        |  |   |      |  
|                                                                       |  |                                             | 9,400  |                       |                          | (108 | )         |       |                       | 6,495  |  |           | (108 | )                     |  |   | 15,895 |  |   | (216 | )
|Mortgage-backed securities                                             |  |                                             | 13,741 |                       |                          | (101 | )         |       |                       | 22,960 |  |           | (468 | )                     |  |   | 36,701 |  |   | (569 | )
|                                                                       |  |                                             |        |                       |                          |      |           |       |                       |        |  |           |      |                       |  |   |        |  |   |      |  
|Total debt securities                                                  |  |                                             | 23,141 |                       |                          | (209 | )         |       |                       | 48,874 |  |           | (725 | )                     |  |   | 72,015 |  |   | (934 | )
|Equity securities                                                      |  |                                             |       |                       |                          |     |           |       |                       |       |  |           |     |                       |  |   |       |  |   |     |  
|                                                                       |  |                                             |        |                       |                          |      |           |       |                       |        |  |           |      |                       |  |   |        |  |   |      |  
|Total                                                                  |  | $                                           | 23,141 |                       | $                        | (209 | )         |       | $                     | 48,874 |  | $         | (725 | )                     |  | $ | 72,015 |  | $ | (934 | )
|                                                                       |  |                                             |        |                       |                          |      |           |       |                       |        |  |           |      |                       |  |   |        |  |   |      |  

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 154 positions that are temporarily impaired at September 30, 2007.



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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, 2007 and December 31, 2006 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, 2007         |     |       | December 31, 2006            |  
|                                |  | Securities Held toMaturity |     |       | SecuritiesAvailable for Sale |   |        | Securities Heldto Maturity |         |  | Securities Availablefor Sale |       
|(dollars in thousands)          |  | Amount                     |     | Yield |                              |   | Amount |                            | Yield   |  |                              | Amount |  | Yield |     |  | Amount |   | Yield |  
|U.S. Treasury and other U.S.    |  |                            |     |       |                              |   |        |                            |         |  |                              |        |  |       |     |  |        |   |       |   |         |  |       |  
|Government Agencies             |  |                            |     |       |                              |   |        |                            |         |  |                              |        |  |       |     |  |        |   |       |   |         |  |       |  
|Within One Year                 |  | $                          |    |       |                             | % |        | $                          | 6,460   |  | 3.66                         | %      |  | $     |    |  |       | % |       | $ | 5,051   |  | 3.12  | %
|After One But Within Five Years |  |                            |    |       |                             |   |        |                            | 22,977  |  | 4.39                         |        |  |       |    |  |       |   |       |   | 30,819  |  | 4.37  |  
|After Five But Within Ten Years |  |                            |    |       |                             |   |        |                            |        |  |                             |        |  |       |    |  |       |   |       |   | 141     |  | 5.95  |  
|After Ten Years                 |  |                            |    |       |                             |   |        |                            | 5       |  | 5.96                         |        |  |       |    |  |       |   |       |   | 186     |  | 5.88  |  
|                                |  |                            |     |       |                              |   |        |                            |         |  |                              |        |  |       |     |  |        |   |       |   |         |  |       |  
|                                |  |                            |    |       |                             |   |        |                            | 29,442  |  | 4.23                         |        |  |       |    |  |       |   |       |   | 36,197  |  | 4.21  |  
|States & Political Subdivisions |  |                            |     |       |                              |   |        |                            |         |  |                              |        |  |       |     |  |        |   |       |   |         |  |       |  
|Within One Year                 |  |                            |    |       |                             |   |        |                            | 1,682   |  | 3.93                         |        |  |       | 310 |  | 6.37   |   |       |   | 1,140   |  | 3.97  |  
|After One But Within Five Years |  |                            | 819 |       | 7.15                         |   |        |                            | 4,895   |  | 4.99                         |        |  |       | 663 |  | 7.23   |   |       |   | 4,955   |  | 4.31  |  
|After Five But Within Ten Years |  |                            |    |       |                             |   |        |                            | 6,482   |  | 5.63                         |        |  |       |    |  |       |   |       |   | 6,696   |  | 5.50  |  
|After Ten Years                 |  |                            |    |       |                             |   |        |                            | 8,860   |  | 5.96                         |        |  |       |    |  |       |   |       |   | 8,893   |  | 5.76  |  
|                                |  |                            |     |       |                              |   |        |                            |         |  |                              |        |  |       |     |  |        |   |       |   |         |  |       |  
|                                |  |                            | 819 |       | 7.15                         |   |        |                            | 21,919  |  | 5.49                         |        |  |       | 973 |  | 6.96   |   |       |   | 21,684  |  | 5.25  |  
|Mortgage-Backed Securities      |  |                            |    |       |                             |   |        |                            | 52,504  |  | 5.17                         |        |  |       |    |  |       |   |       |   | 51,665  |  | 5.07  |  
|Equity Securities               |  |                            |    |       |                             |   |        |                            | 361     |  | 4.67                         |        |  |       |    |  |       |   |       |   | 375     |  | 10.80 |  
|                                |  |                            |     |       |                              |   |        |                            |         |  |                              |        |  |       |     |  |        |   |       |   |         |  |       |  
|Total                           |  | $                          | 819 |       | 7.15                         | % |        | $                          | 104,226 |  | 4.97                         | %      |  | $     | 973 |  | 6.96   | % |       | $ | 109,921 |  | 4.84  | %
|                                |  |                            |     |       |                              |   |        |                            |         |  |                              |        |  |       |     |  |        |   |       |   |         |  |       |  

Assets carried at $41,455,000 and $42,987,000 at September 30, 2007 and December 31, 2006, 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

Total loans, net of unearned income, decreased $.8 million or .6% from December 31, 2006 to
September 30, 2007. 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-eight percent
(38%) of the loan portfolio. Commercial loans which include real estate secured by non-farm, non-residential and commercial and industrial loans comprised forty percent (40%) 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 eleven percent (11%) of the loan portfolio. The changes in the composition of
the loan portfolio since December 31, 2006 were a 2% increase in real estate residential loans, a 1% increase in other loans and a 3% decrease in commercial loans.

Table Seven - Loan Portfolio

Loans outstanding are as follows:



|                                              |  |                   |         |                  |   |        
|--------------------------------------------- |  | ----------------- | ------- | ---------------- | - | -------
|                                              |  | (Unaudited)       |         |                 
|(dollars in thousands)                        |  | September 30,2007 |         | December 31,2006
|Real Estate - residential:                    |  |                   |         |                  |   |        
|Real estate - construction                    |  | $                 | 1,825   |                  | $ | 1,205  
|Real estate - farmland                        |  |                   | 324     |                  |   | 378    
|Real estate - residential                     |  |                   | 43,674  |                  |   | 41,759 
|                                              |  |                   |         |                  |   |        
|                                              |  | $                 | 45,823  |                  | $ | 43,342 
|                                              |  |                   |         |                  |   |        
|Commercial:                                   |  |                   |         |                  |   |        
|Real estate-secured by nonfarm nonresidential |  | $                 | 41,217  |                  | $ | 44,110 
|Commercial and industrial                     |  |                   | 7,261   |                  |   | 8,219  
|                                              |  |                   |         |                  |   |        
|                                              |  | $                 | 48,478  |                  | $ | 52,329 
|                                              |  |                   |         |                  |   |        
|Installment:                                  |  |                   |         |                  |   |        
|Installment and other loans to individuals    |  | $                 | 13,222  |                  | $ | 13,473 
|                                              |  |                   |         |                  |   |        
|Other:                                        |  |                   |         |                  |   |        
|Nonrated industrial development obligations   |  | $                 | 12,566  |                  | $ | 11,655 
|Other loans                                   |  |                   | 54      |                  |   | 88     
|                                              |  |                   |         |                  |   |        
|                                              |  | $                 | 12,620  |                  | $ | 11,743 
|                                              |  |                   |         |                  |   |        
|Total                                         |  |                   | 120,143 |                  |   | 120,887
|Less unearned interest                        |  |                   | 201     |                  |   | 178    
|                                              |  |                   |         |                  |   |        
|                                              |  | $                 | 119,942 |                  | $ | 120,709
|                                              |  |                   |         |                  |   |        



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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, 2007 and December 31, 2006 :



|                                                                                                                                                                                                                                |                    |                    |                                 |                   |                 |       |                    |   |                                 |  |                 |       |  |   |       |  |   |       
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------ | ------------------ | ------------------------------- | ----------------- | --------------- | ----- | ------------------ | - | ------------------------------- |  | --------------- | ----- |  | - | ----- |  | - | ------
|(dollars in thousands                                                                                                                                                                                                           |                    | September 30, 2007 |                                 | December 31, 2006
|                                                                                                                                                                                                                                | In oneYear or Less |                    | After oneYear ThroughFive Years |                   | After FiveYears |       | In oneYear or Less |   | After oneYear ThroughFive Years |  | AfterFive Years
|Real estate construction                                                                                                                                                                                                        |                    | $                  | 278                             |                   | $               | 339   |                    | $ | 1,208                           |  | $               | 430   |  | $ | 400   |  | $ | 375   
|Commercial real estate - secured by nonfarm, nonresidential property                                                                                                                                                            |                    |                    | 1,930                           |                   |                 | 2,045 |                    |   | 37,242                          |  |                 | 1,977 |  |   | 3,247 |  |   | 38,886
|Commercial and industrial                                                                                                                                                                                                       |                    |                    | 1,884                           |                   |                 | 2,597 |                    |   | 2,780                           |  |                 | 2,437 |  |   | 3,390 |  |   | 2,392 
|Nonrated industrial development obligations                                                                                                                                                                                     |                    |                    | 1,194                           |                   |                 | 2,734 |                    |   | 8,638                           |  |                 | 526   |  |   | 2,944 |  |   | 8,185 
|                                                                                                                                                                                                                                |                    |                    |                                 |                   |                 |       |                    |   |                                 |  |                 |       |  |   |       |  |   |       
|Total                                                                                                                                                                                                                           |                    | $                  | 5,286                           |                   | $               | 7,715 |                    | $ | 49,868                          |  | $               | 5,370 |  | $ | 9,981 |  | $ | 49,838
|                                                                                                                                                                                                                                |                    |                    |                                 |                   |                 |       |                    |   |                                 |  |                 |       |  |   |       |  |   |       
|                                                                                                                                                                                                                               
|The following table presents an analysis of fixed and variable rate loans as of September 30, 2007 and December 31, 2006 along with the contractual maturities of loans
other than installment loans and residential mortgages:
|                                                                                                                                                                                                                                |                    |                   
|(dollars in thousands                                                                                                                                                                                                           |                    | September 30, 2007 |                                 | December 31, 2006
|                                                                                                                                                                                                                                | In oneYear or Less |                    | After oneYear ThroughFive Years |                   | AfterFive Years |       | In oneYear or Less |   | After oneYear ThroughFive Years |  | AfterFive Years
|Fixed Rates                                                                                                                                                                                                                     |                    | $                  | 2,777                           |                   | $               | 6,267 |                    | $ | 6,844                           |  | $               | 2,110 |  | $ | 5,804 |  | $ | 8,609 
|Variable Rates                                                                                                                                                                                                                  |                    |                    | 2,509                           |                   |                 | 1,448 |                    |   | 43,024                          |  |                 | 3,260 |  |   | 4,177 |  |   | 41,229
|                                                                                                                                                                                                                                |                    |                    |                                 |                   |                 |       |                    |   |                                 |  |                 |       |  |   |       |  |   |       
|Total                                                                                                                                                                                                                           |                    | $                  | 5,286                           |                   | $               | 7,715 |                    | $ | 49,868                          |  | $               | 5,370 |  | $ | 9,981 |  | $ | 49,838
|                                                                                                                                                                                                                                |                    |                    |                                 |                   |                 |       |                    |   |                                 |  |                 |       |  |   |       |  |   |       

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 $2,620,000 at September 30,
2007 as compared to $3,383,000 at December 31, 2006. The decrease in non-performing loans was primarily due to the decline 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 $2,520,000 or 2.1% of total loans outstanding as of September 30, 2007, as compared to $3,380,000 or 2.8% of total loans at December 31, 2006.
Non-accrual loans decreased during the nine months of 2007 due to the payoff of three loans. Management continues to monitor the nonperforming assets to ensure against deterioration in collateral values.



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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 - 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, |       |      | December 31, |  
|                                                                 | 2007 |               |       | 2006 |              |   | 2006  |  
|Past Due 90 Days or More:                                        |      |               |       |      |              |   |       |   |  |   |       |  
|Real estate - residential                                        |      | $             | 9     |      |              | $ |      |   |  | $ |      |  
|Commercial                                                       |      |               | 5     |      |              |   | 542   |   |  |   |      |  
|Installment                                                      |      |               | 8     |      |              |   | 1     |   |  |   | 3     |  
|                                                                 |      |               |       |      |              |   |       |   |  |   |       |  
|                                                                 |      | $             | 22    |      |              | $ | 543   |   |  | $ | 3     |  
|                                                                 |      |               |       |      |              |   |       |   |  |   |       |  
|Non-accrual:                                                     |      |               |       |      |              |   |       |   |  |   |       |  
|Real estate - residential                                        |      | $             | 843   |      |              | $ | 221   |   |  | $ | 958   |  
|Commercial                                                       |      |               | 1,676 |      |              |   | 1,280 |   |  |   | 2,409 |  
|Installment                                                      |      |               | 1     |      |              |   | 12    |   |  |   | 13    |  
|                                                                 |      |               |       |      |              |   |       |   |  |   |       |  
|                                                                 |      | $             | 2,520 |      |              | $ | 1,513 |   |  | $ | 3,380 |  
|                                                                 |      |               |       |      |              |   |       |   |  |   |       |  
|Other Real Estate                                                |      | $             | 78    |      |              | $ |      |   |  | $ |      |  
|                                                                 |      |               |       |      |              |   |       |   |  |   |       |  
|Total non-performing assets                                      |      | $             | 2,620 |      |              | $ | 2,056 |   |  | $ | 3,383 |  
|                                                                 |      |               |       |      |              |   |       |   |  |   |       |  
|Total non-performing assets to total loans and other real estate |      |               | 2.18  | %    |              |   | 1.62  | % |  |   | 2.80  | %

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 $108,800, $95,400 and $204,100 for the nine months ended September 30, 2007 and 2006 and for the year ended December 31, 2006, respectively.



23



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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          |         |   | 2006         |   |         | 2006 | 
|Allowance for loan losses:                                                        |  |               |         |   |              |   |         |      |  |   |         |  
|Balance at beginning of period:                                                   |  | $             | 2,297   |   |              | $ | 2,320   |      |  | $ | 2,320   |  
|Loans charged off:                                                                |  |               |         |   |              |   |         |      |  |   |         |  
|Real estate - residential                                                         |  |               | 29      |   |              |   |        |      |  |   |        |  
|Commercial                                                                        |  |               | 39      |   |              |   | 16      |      |  |   | 18      |  
|Installment                                                                       |  |               | 24      |   |              |   | 52      |      |  |   | 56      |  
|                                                                                  |  |               |         |   |              |   |         |      |  |   |         |  
|                                                                                  |  |               | 92      |   |              |   | 68      |      |  |   | 74      |  
|Recoveries:                                                                       |  |               |         |   |              |   |         |      |  |   |         |  
|Real estate - residential                                                         |  |               |        |   |              |   |        |      |  |   |        |  
|Commercial                                                                        |  |               | 3       |   |              |   | 31      |      |  |   | 36      |  
|Installment                                                                       |  |               | 2       |   |              |   | 15      |      |  |   | 15      |  
|                                                                                  |  |               |         |   |              |   |         |      |  |   |         |  
|                                                                                  |  |               | 5       |   |              |   | 46      |      |  |   | 51      |  
|Net loan charge-offs (recoveries)                                                 |  |               | 87      |   |              |   | 22      |      |  |   | 23      |  
|Additions (deletions) charged to operations                                       |  |               | (100    | ) |              |   |        |      |  |   |        |  
|                                                                                  |  |               |         |   |              |   |         |      |  |   |         |  
|Balance at end of period:                                                         |  | $             | 2,110   |   |              | $ | 2,298   |      |  | $ | 2,297   |  
|                                                                                  |  |               |         |   |              |   |         |      |  |   |         |  
|Average loans outstanding                                                         |  | $             | 120,022 |   |              | $ | 132,478 |      |  | $ | 129,997 |  
|                                                                                  |  |               |         |   |              |   |         |      |  |   |         |  
|Ratio of net charge-offs (recoveries) to average loans outstanding for the period |  |               | 0.07    | % |              |   | 0.02    | %    |  |   | 0.02    | %
|Ratio of the allowance for loan losses to loans outstanding for the period        |  |               | 1.76    | % |              |   | 1.81    | %    |  |   | 1.90    | %

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 represented 1.8% and 1.9% of outstanding loans
as of September 30, 2007 and December 31, 2006, respectively. Net loan charge-offs amounted to $87,281 for the nine month period ended September 30, 2007, compared to net loan charge-offs of $21,644 for the same period in 2006. A
negative provision for loan losses in the amount of $100,000 was recorded in the third quarter of 2007 to reduce the allowance for loan losses based upon the decline in specific reserves required on nonperforming assets from the previous quarter end
and the overall improvement in the performance of the loan portfolio. There was no provision made to the allowance for loan losses during the nine month period ended September 30, 2006. 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, 2006, and the nine month period ended September 30, 2007. 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, |       |                                             | December 31, |  
|                          |  | 2007          |       |                                             | 2006         |   |        | 2005 |                                             |  | 2004  |        |  | 2003                                        |      
|(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   |                                             | 38.1         | % |        | $    | 327                                         |  | 35.8  | %      |  | $                                           | 327   |  | 33.4   | % |                                             | $ | 325   |        | 33.5  | %                                           |  | $ | 311   |  | 36.0  | %
|Commercial                |  |               | 1,347 |                                             | 40.4         |   |        |      | 1,483                                       |  | 43.3  |        |  |                                             | 1,465 |  | 44.5   |   |                                             |   | 1,520 |        | 45.2  |                                             |  |   | 1,429 |  | 43.0  |  
|Installment               |  |               | 444   |                                             | 11.0         |   |        |      | 466                                         |  | 11.2  |        |  |                                             | 507   |  | 12.3   |   |                                             |   | 490   |        | 11.9  |                                             |  |   | 544   |  | 12.9  |  
|Others                    |  |               | 21    |                                             | 10.5         |   |        |      | 21                                          |  | 9.7   |        |  |                                             | 21    |  | 9.8    |   |                                             |   | 21    |        | 9.4   |                                             |  |   | 21    |  | 8.1   |  
|                          |  |               |       |                                             |              |   |        |      |                                             |  |       |        |  |                                             |       |  |        |   |                                             |   |       |        |       |                                             |  |   |       |  |       |  
|Total                     |  | $             | 2,110 |                                             | 100.0        | % |        | $    | 2,297                                       |  | 100.0 | %      |  | $                                           | 2,320 |  | 100.0  | % |                                             | $ | 2,356 |        | 100.0 | %                                           |  | $ | 2,305 |  | 100.0 | %
|                          |  |               |       |                                             |              |   |        |      |                                             |  |       |        |  |                                             |       |  |        |   |                                             |   |       |        |       |                                             |  |   |       |  |       |  



25



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##### Table of Contents

First West Virginia Bancorp, Inc.

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

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 decreased approximately $5.7 million or 2.7% during the first nine months of 2007. Since year end the decrease in deposits was primarily due to decreases in inoninterest bearing demand deposits, savings deposits and time deposits, offset in
part by an increase in interest bearing demand deposits. At September 30, 2007, 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, 2006 to September 30, 2007.

Table Twelve - Maturity Distribution of
Time Certificates of Deposit

A maturity distribution of time certificates of deposit at September 30, 2007 and December 31, 2006, follows:



|                           |                   |                             |                  |  |   |       
|-------------------------- | ----------------- | --------------------------- | ---------------- |  | - | ------
|(dollars in thousands)     |                   | Maturities of Time Deposits
|                           | (Unaudited)       |                             |                 
|                           | September 30,2007 |                             | December 31,2006
|Due in 2007                |                   | $                           | 14,962           |  | $ | 63,047
|Due in 2008                |                   |                             | 35,439           |  |   | 8,945 
|Due in 2009                |                   |                             | 22,102           |  |   | 7,651 
|Due in 2010                |                   |                             | 11,418           |  |   | 10,971
|Due in 2011                |                   |                             | 6,247            |  |   | 6,413 
|Due in 2012 and thereafter |                   |                             | 5,204            |  |   | 118   
|                           |                   |                             |                  |  |   |       
|Total                      |                   | $                           | 95,372           |  | $ | 97,145
|                           |                   |                             |                  |  |   |       

Time deposits include certificates of deposit issued in denominations of $100,000 or more which amounted to
$26,907,000 and $28,389,000 at September 30, 2007 and December 31, 2006, respectively. Interest expense on certificates of deposit of $100,000 or more was $906,500 and $663,100 at September 30, 2007 and 2006, 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
|                                     |  | (Unaudited)                                       |        |                  
|(dollars in thousands)               |  | September 30, 2007                                |        | December 31, 2006
|Three Months or Less                 |  | $                                                 | 4,378  |                   | $ | 3,929 
|Over Three and Less than Six Months  |  |                                                   | 3,476  |                   |   | 4,565 
|Over Six and Less than Twelve Months |  |                                                   | 3,921  |                   |   | 11,544
|Over Twelve Months                   |  |                                                   | 15,132 |                   |   | 8,351 
|                                     |  |                                                   |        |                   |   |       
|Total                                |  | $                                                 | 26,907 |                   | $ | 28,389
|                                     |  |                                                   |        |                   |   |       



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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, 2007 and
December 31, 2006. Repurchase agreements decreased approximately $1.1 million or 7.0%, from December 31, 2006 to September 30, 2007. The decrease in repurchase agreements since year end was primarily due to the reduction in the
balances maintained by commercial customers.

Federal Home Loan Bank and Other Long-term Borrowings

Federal Home Loan Bank (FHLB) borrowings were $9,309,746 and $2,342,718 at September 30, 2007 and December 31, 2006, respectively. The increase in
FHLB borrowings was due to the addition of two fixed rate bullet advances of $3,500,000 during the second quarter of 2007. These advances are at an average interest rate of 5.08% and will mature in 2009 and in 2010 . The subsidiary bank also has two
fixed rate amortizing advances with an interest rate of 4.76% which will mature in 2018.

The subsidiary bank also has a one year line of credit agreement
with the FHLB. The maximum credit available under this agreement is $7 million and expires December, 2007.

The Company has an available line of credit in
the amount of $1 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 adjusted on a quarterly basis. The line of credit expires in May
2015. Under the terms of the note, quarterly interest only payments are required until May 2008 and quarterly principal and interest payments are required thereafter. There were no outstanding borrowings under the line of credit at
September 30, 2007.

Capital Resources

Stockholders equity increased 2.5% during the nine month period ended September 30, 2007 entirely from current earnings after quarterly dividends, and a 1.1% increase in accumulated other comprehensive income. The increase in
accumulated other comprehensive income is primarily attributable to the effect of the change in the net unrealized loss on securities available for sale. Stockholders equity amounted to 10.2% and 9.9% of total assets at September 30, 2007
and December 31, 2006, respectively. The Company paid dividends of $.57 per share during in the nine month periods ended September 30, 2007 and 2006.

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 2007, without approval of the Comptroller of the Currency, of approximately $250,000, plus an additional amount equal to the banks net profit for 2007 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, 2007, the most recent notifications from the Office of
the Comptroller of the Currency categorized the bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes has changed the capital
category. The capital ratios of the Company and its subsidiary bank, along with the regulatory framework for adequately capitalized and well capitalized institutions are depicted as set forth in the following table:



|                                          |        |        |        |  |                              |        |  |                                                               |        |  |        |   |       |   |        |  |      |  
|----------------------------------------- | ------ | ------ | ------ |  | ---------------------------- | ------ |  | ------------------------------------------------------------- | ------ |  | ------ | - | ----- | - | ------ |  | ---- | -
|(Amounts Expressed in Thousands)          |        | Actual |        |  | For CapitalAdequacy Purposes |        |  | To be WellCapitalized UnderPrompt CorrectiveAction Provisions |       
|                                          | Amount |        | Ratio  |  |                              | Amount |  | Ratio                                                         |        |  | Amount |   | Ratio |  
|First West Virginia Bancorp, Inc.         |        |        |        |  |                              |        |  |                                                               |        |  |        |   |       |   |        |  |      |  
|As of September 30, 2007                  |        |        |        |  |                              |        |  |                                                               |        |  |        |   |       |   |        |  |      |  
|Total Capital (to Risk Weighted Assets)   |        | $      | 26,723 |  | 18.60                        | %      |  | $                                                             | 11,493 |  | 8.0    | % |       | $ | 14,366 |  | 10.0 | %
|Tier I Capital (to Risk Weighted Assets)  |        |        | 24,929 |  | 17.35                        | %      |  |                                                               | 5,746  |  | 4.0    | % |       |   | 8,619  |  | 6.0  | %
|Tier I Capital (to Adjusted Total Assets) |        |        | 24,929 |  | 9.91                         | %      |  |                                                               | 10,064 |  | 4.0    | % |       |   | 12,580 |  | 5.0  | %
|As of December 31, 2006                   |        |        |        |  |                              |        |  |                                                               |        |  |        |   |       |   |        |  |      |  
|Total Capital (to Risk Weighted Assets)   |        | $      | 26,014 |  | 18.20                        | %      |  | $                                                             | 11,436 |  | 8.0    | % |       | $ | 14,296 |  | 10.0 | %
|Tier I Capital (to Risk Weighted Assets)  |        |        | 24,227 |  | 16.95                        | %      |  |                                                               | 5,718  |  | 4.0    | % |       |   | 8,577  |  | 6.0  | %
|Tier I Capital (to Adjusted Total Assets) |        |        | 24,227 |  | 9.41                         | %      |  |                                                               | 10,301 |  | 4.0    | % |       |   | 12,876 |  | 5.0  | %
|Progressive Bank, N.A.                    |        |        |        |  |                              |        |  |                                                               |        |  |        |   |       |   |        |  |      |  
|As of September 30, 2007                  |        |        |        |  |                              |        |  |                                                               |        |  |        |   |       |   |        |  |      |  
|Total Capital (to Risk Weighted Assets)   |        | $      | 26,364 |  | 18.41                        | %      |  | $                                                             | 11,455 |  | 8.0    | % |       | $ | 14,319 |  | 10.0 | %
|Tier I Capital (to Risk Weighted Assets)  |        |        | 24,570 |  | 17.16                        | %      |  |                                                               | 5,727  |  | 4.0    | % |       |   | 8,591  |  | 6.0  | %
|Tier I Capital (to Adjusted Total Assets) |        |        | 24,570 |  | 9.78                         | %      |  |                                                               | 10,044 |  | 4.0    | % |       |   | 12,556 |  | 5.0  | %
|As of December 31, 2006                   |        |        |        |  |                              |        |  |                                                               |        |  |        |   |       |   |        |  |      |  
|Total Capital (to Risk Weighted Assets)   |        | $      | 25,636 |  | 18.00                        | %      |  | $                                                             | 11,396 |  | 8.0    | % |       | $ | 14,245 |  | 10.0 | %
|Tier I Capital (to Risk Weighted Assets)  |        |        | 23,849 |  | 16.74                        | %      |  |                                                               | 5,698  |  | 4.0    | % |       |   | 8,547  |  | 6.0  | %
|Tier I Capital (to Adjusted Total Assets) |        |        | 23,849 |  | 9.27                         | %      |  |                                                               | 10,287 |  | 4.0    | % |       |   | 12,859 |  | 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 $104,226,440 classified as available for sale at September 30, 2007. 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 $97,512,000. 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, 2007 was approximately $81.2 million subject to the purchase of additional FHLB stock. At September 30, 2007, 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, 2007. At September 30, 2007 and
December 31, 2006, the Company had outstanding loan commitments and unused lines of credit totaling $16,165,000 and $16,268,000, respectively. As of September 30, 2007, management placed a high probability for required funding within one
year of approximately $11.5 million. Approximately $3.6 million is principally unused home equity and credit card lines on which management places a low probability for required funding.



28



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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, 2007 was as follows: given a 200 basis point increase scenario net interest income would be increased by
approximately .7%, and given a 200 basis point decrease scenario net interest income would be reduced by approximately 7.2%. 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, 2006 for disclosures with respect to risk factors. There have been no material changes since year-end 2006 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 July 26, 2007 a report
on Form 8-K was filed which contained a press release dated July 26, 2007 that reported the earnings of First West Virginia Bancorp, Inc. for the second quarter ended June 30, 2007.



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

The exhibits listed in the Exhibit Index
on page 33 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 8, 2007          



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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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