**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-K**

**SECURITY      CAPITAL CORPORATION**

| MISSISSIPPI                                                                  | 64-0681198                                             |
|------------------------------------------------------------------------------|--------------------------------------------------------|
| State                or Other Jurisdiction of Incorporation or Organization) | (I.R.S.                Employer Identification Number) |
|                                                                         |                                                   |
|                                                                         |                                                   |
| 295                Highway 6 West/P. O. Box 690, Batesville, Mississippi     | 38606                                                  |
| (Address                of principal executive offices)                      | (Zip                Code)                              |
|                                                                         |                                                   |
| Registrant's                Telephone Number:                                | (662)                563-9311                          |

|                               | Name                of Each Exchange on |
|------------------------------------|-----------------------------------------|
| Title                of Each Class | Which                Registered         |
|                               |                                    |
| None                               | None                                    |

|                                      | Name                of Each Exchange on |
|-------------------------------------------|-----------------------------------------|
| Title                of Each Class        | Which                Registered         |
|                                      |                                    |
| Common                Stock, $5 par value | None                                    |

----

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**CROSS      REFERENCE INDEX**

|                        |                                                                                                                                                          |     |
|-----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
|                        |                                                                                                                                                          | **Page** |
| **PART                I**   |                                                                                                                                                          |     |
|                        |                                                                                                                                                          |     |
| Item                1       | Business                                                                                                                                                      | 2        |
| Item                2       | Properties                                                                                                                                                    | 13       |
| Item                3       | Legal                Proceedings                                                                                                                              | 17       |
| Item                4       | Submission                of Matters to a Vote of Security Holders                                                                                            | 17       |
|                        |                                                                                                                                                          |     |
| **PART                II**  |                                                                                                                                                          |     |
|                        |                                                                                                                                                          |     |
| Item                5       | Market                for the Registrant's Common Equity, Related Stockholder Matters and                Issuer                Purchases of Equity Securities | 18       |
| Item                6       | Selected                Financial Data                                                                                                                        | 18       |
| Item                7       | Management's                Discussion and Analysis of Financial Condition and Results of                Operations                                           | 20       |
| Item                7A      | Quantitative                and Qualitative Disclosures about Market Risk                                                                                     | 42       |
| Item                8       | Financial                Statements and Supplementary Data                                                                                                    | 43       |
| Item                9       | Changes                in and Disagreements with Accountants on Accounting and Financial                Disclosure                                            | 76       |
| Item                9A      | Controls                and Procedures                                                                                                                        | 76       |
| Item                9B      | Other                Information                                                                                                                              | 76       |
|                        |                                                                                                                                                          |     |
| **PART                III** |                                                                                                                                                          |     |
|                        |                                                                                                                                                          |     |
| Item                10      | Directors                and Executive Officers of the Registrant                                                                                             | 76       |
| Item                11      | Executive                Compensation                                                                                                                         | 77       |
| Item                12      | Security                Ownership of Management and Related Stockholder Matters                                                                               | 77       |
| Item                13      | Certain                Relationships and Related Transactions                                                                                                 | 77       |
| Item                14      | Principal                Accounting Fees and Services                                                                                                         | 77       |
|                        |                                                                                                                                                          |     |
| **Part                IV**  |                                                                                                                                                          |     |
|                        |                                                                                                                                                          |     |
| Item                15      | Exhibits                and Financial Statement Schedules                                                                                                     | 78       |

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**PART      I**

**ITEM      1. BUSINESS**

**General      Development and Structure of Business**

**Operations**

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|                    |  POPULATION  |
|-------------------------|------------------------|
|                    |  2000        |  1990  |  1980  |  1970  |
|  DeSoto       |  107,199     |  67,910  |  53,930  |  35,885  |
|  Panola       |  34,274      |  29,996  |  28,164  |  26,829  |
|  Quitman      |  10,117      |  10,490  |  12,636  |  15,888  |
|  Tunica       |  9,277       |  8,164  |  9,652  |  11,854  |
|  Mississippi  |  2,844,658   |  2,573,216  |  2,520,698  |  2,216,994  |
|                    |                   |   |   |   |

|                                                                                                                |  PER                CAPITA INCOME  |
|---------------------------------------------------------------------------------------------------------------------|----------------------------------------------|
|                                                                                                                |  2003                              |  2002  |  2001  |  2000  |  1999  |
|  DeSoto                                                                                                   |  $28,713                           |  $28,251  |  $27,679  |  $26,070  |  $24,537  |
|  Panola                                                                                                   |  19,173                            |  18,331  |  18,238  |  17,186  |  16,242  |
|  Quitman                                                                                                  |  17,933                            |  15,256  |  16,820  |  14,717  |  14,568  |
|  Tunica                                                                                                   |  19,325                            |  16,823  |  18,444  |  17,327  |  17,335  |
|  Mississippi                                                                                              |  23,466                            |  22,511  |  21,950  |  21,005  |  20,053  |
|  SOURCE:                United States Department of Commerce, Bureau of Economic                Analysis  |

|                                                                                        |  MEDIAN                AGE  |
|---------------------------------------------------------------------------------------------|---------------------------------------|
|                                                                                        |  2000                       |  1990  |
|  DeSoto                                                                           |  33.7                       |  31.5  |
|  Panola                                                                           |  33.0                       |  30.1  |
|  Quitman                                                                          |  31.8                       |  30.1  |
|  Tunica                                                                           |  30.6                       |  25.3  |
|  SOURCE:                Center for Population Studies, University of Mississippi  |

----

|                                                        |   | December                  31,   |    |
|-------------------------------------------------------------|--------|---------------------------------|---------|
|                                                        |   | 2005                            |    | 2004 |   |
|                                                        |   | (In                  thousands) |    |
|                                                        |   |                            |    |   |   |
| Commercial,                  financial and agricultural     |   | $                               | 30,826  |   | $ | 28,077 |   |
| Real                  estate - construction and development |   |                            | 86,404  |   |   | 49,189 |   |
| Real                  estate - mortgage                     |   |                            | 149,602 |   |   | 124,911 |   |
| Installment                  loans to individuals           |   |                            | 28,833  |   |   | 29,898 |   |
| Other                                                       |   |                            | 2,280   |   |   | 2,328 |   |
|                                                        |   |                            | 297,945 |   |   | 234,403 |   |
| Less                  allowance for loan losses             |   |                            | (3,899  | ) |   | (3,598 | ) |
|                                                        |   |                            |    |   |   |   |   |
|                                                        |   | $                               | 294,046 |   | $ | 230,805 |   |

----

**Employees**

**Supervision      and Regulation**

*The      BHCA: *

*Investments,      Control, and Activities: *

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*Source      of Strength and Cross-Guarantee: *

*State      and FDIC Regulation: *

*FDICIA:      *

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*Deposit      Insurance: *

*Transactions      with Affiliates and Insiders: *

*Community      Reinvestment Act: *

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*Other      Regulations: *

*Enforcement      Powers: *

*Effect      of Governmental Monetary Policies: *

*Financial      Services Modernization Act: *

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|   | • | Repeals                historical restrictions on, and eliminates many federal and state                law                barriers to, affiliations among banks, securities firms, insurance                companies, and other financial service                providers; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Provides                a uniform framework for the functional regulation of the activities                of                banks, savings institutions, and their holding companies; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Broadens                the activities that may be conducted by national banks, banking                subsidiaries of bank holding companies, and their financial                subsidiaries; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Provides                an enhanced framework for protecting the privacy of consumer                information; |
|--------|---------|------------------------------------------------------------------------------------------------------------------|

|   | • | Adopts                a number of provisions related to the capitalization, membership,                corporate governance, and other measures designed to modernize the                Federal                Home Loan Bank system; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Modifies                the laws governing the implementation of the Community Reinvestment                Act                ("CRA"); and |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Addresses                a variety of other legal and regulatory issues affecting both day-to-day                operations and long-term activities of financial                institutions. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Capital.      *

----

|                                      | Corporation | Bank  |         |
|-------------------------------------------|-------------|-------|--------------|
| Risk-Based                  Capital Ratio | Ratio       | Ratio | Requirements |
| Total                  Capital            | 14.40       | 13.80 | 8            |
| Tier                  1 Capital           | 13.20       | 12.70 | 4            |
| Leverage                  Capital         | 10.20       | 9.80  | 3            |

*Deposit      Insurance Assessments: *

**Competition**

**Available      Information**

----

**Statistical      Disclosure**

**Table      1 - Five Year Financial Summary**

**Table      2 - Average Balances, Interest Earned and Interest Yields**

**Table      3 - Net Interest Earning Assets **

**Table      3A - Volume/Rate Analysis**

**Table      4 - Non-Interest Income and Expense**

**Table      5 - Loans by Type**

**Table      6 - Loan Liquidity**

**Table      7 - Allowance for Loan Losses**

**Table      8 - Nonperforming Assets**

**Table      8A - Allocation of the Allowance for Loan Losses**

**Table      9 - Securities**

**Table      10 - Securities Maturity and Repricing Schedule**

**Table      11 - Securities Weighted Maturity and Tax Equivalent Yield by      Classification**

**Table      12 - Deposit Information**

**Table      13 - Maturity Ranges of Time Deposits with Balances More Than      $100,000**

**Table      14 - Funding Uses and Sources**

----

**Table      15 - Liquidity; Interest Rate Sensitivity**

**Table      15A - Changes in Net Interest Income over One Year Horizon**

**Table      16 - Capital Ratios**

**ITEM      1A. RISK FACTORS**

*Making      or continuing an investment in securities issued by the Company, including      the      Company’s common stock, involves certain risks that you should carefully      consider. The risks and uncertainties described below are not the only risks      that may have a material adverse effect on the Company. Additional risks and      uncertainties also could adversely affect the Company’s business and results of      operations. If any of the following risks actually occur, the Company’s      business, financial condition or results of operations could be negatively      affected, the market price for your securities could decline, and you could      lose      all or a part of your investment. Further, to the extent that any of the      information contained in this Annual Report on Form 10-K constitutes      forward-looking statements, the risk factors set forth below also are cautionary      statements identifying important factors that could cause the Company’s actual      results to differ materially from those expressed in any forward-looking      statements made by or on behalf of the Company. *

**The      Company may be vulnerable to certain sectors of the      economy.**

**General      economic conditions in the areas where the Company’s operations or loans are      concentrated may adversely affect our customers’ ability to meet their      obligations.**

**The      Company is subject to a risk of rapid and significant changes in market interest      rates.**

----

**Certain      changes in interest rates, inflation, or the financial markets could affect      demand for the Company’s products and the Company’s ability to deliver products      efficiently.**

**Changes      in the policies of monetary authorities and other government action could      adversely affect the Company’s profitability. **

**Natural      disasters could affect the Company’s ability to operate.**

**Greater      loan losses than expected may adversely affect the Company’s earnings.**

----

**The      Company’s stock is not listed or traded on the financial      markets.**

**The      Company is subject to regulation by various Federal and State      entities.**

**The      Company engages in acquisitions of other businesses from time to      time.**

**The      Company is subject to industry competition which may have an impact upon its      success. **

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**Anti-takeover      laws and certain agreements and charter provisions may adversely affect share      value. **

**Securities      issued by the Company, including the Company’s common stock, are not FDIC      insured. **

**Security      Capital Corporation's Profitability Depends on Economic Policies and Factors      Beyond Our Control.**

**There      is No Assurance That Security Capital Corporation Will Be Able to Successfully      Compete with Others for Business.**

**ITEM      1B. UNRESOLVED STAFF COMMENTS**

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**ITEM      2. PROPERTIES**

| Name                  of Office       | Location/Telephone                  Number        | Banking                  Services Offered  |
|---------------------------------------|---------------------------------------------------|--------------------------------------------|
|                                  |                                              |                                       |
| Main                  Office          | 295                  Highway 6 West;              | Loans,                  Deposits, Cash,    |
|                                  | Batesville,                  Mississippi 38606;   | Safe                  Deposit Boxes, ATM,  |
|                                  | 662-563-9311                                      | Trust,                  Drive-thru.        |
|                                  |                                              |                                       |
| Express                  Branch       | 130                  Highway 51 North             | Drive-thru,                  Cash.         |
|                                  | Batesville,                  Mississippi 38606;   |                                       |
|                                  | 662-563-9311                                      |                                       |
|                                  |                                              |                                       |
| Marks                  Branch         | Highway                  3 South                  | Loans,                  Deposits, Cash,    |
|                                  | Marks,                  Mississippi 38646;        | Safe                  Deposit Boxes,       |
|                                  | 662-326-8053                                      | Drive-thru.                                |
|                                  |                                              |                                       |
| Power                  Drive Branch   | 230                  Power Drive                  | Loans,                  Deposits, ATM      |
|                                  | Batesville,                  Mississippi 38606;   | Safe                  Deposit Boxes,       |
|                                  | 662-563-9311                                      | Cash,                  Drive-thru          |
|                                  |                                              |                                       |
| Sardis                  Branch        | 201                  South Main                   | Loans,                  Deposits, Cash     |
|                                  | Sardis,                  Mississippi 38666;       | Safe                  Deposit Boxes,       |
|                                  | 662-487-1661                                      | Drive-thru.                                |
|                                  |                                              |                                       |
| Olive                  Branch Branch  | 6659                  Highway 305                 | Loans,                  Deposits, Cash,    |
|                                  | Olive                  Branch, Mississippi 38654; | Safe                  Deposit Boxes, ATM,  |
|                                  | 662-895-1994                                      | Drive-thru.                                |
|                                  |                                              |                                       |
| Como                  Branch          | 227                  Main Street                  | Loans,                  Deposits, Cash     |
|                                  | Como,                  Mississippi 38619          | Safe                  Deposit Boxes,       |
|                                  | 662-526-5191                                      | Drive-thru.                                |
|                                  |                                              |                                       |
| Crenshaw                  Branch      | 729                  Broad Street                 | Loans,                  Deposits, Cash,    |
|                                  | Crenshaw,                  Mississippi            | Safe                  Deposit Boxes,       |
|                                  | 662-382-5215                                      | Drive-thru.                                |
|                                  |                                              |                                       |
| Tunica                  Branch        | 1262                  Edwards Street              | Loans,                  Deposits, Drive-   |
|                                  | Tunica,                  Mississippi              | thru,                  Safe Deposit Boxes, |
|                                  | 662-363-2311                                      | ATM,                  Cash.                |
|                                  |                                              |                                       |
| Robinsonville                  Branch | 11490                  Old Highway 61             | Loans,                  Deposits, Drive-   |
|                                  | Robinsonville,                  Mississippi       | thru,                  Cash, ATM.          |
|                                  | 662-363-5015                                      |                                       |
|                                  |                                              |                                       |
| Hernando                  Branch      | 985                  Commerce Street              | Loans,                  Deposits, Cash,    |
|                                  | Hernando,                  Mississippi            | Safe                  Deposit Boxes,       |
|                                  | 662-449-4115                                      | ATM,                  Drive-thru.          |
|                                  |                                              |                                       |
| Pope                  Branch          | 7024                  Highway 51                  | Deposits,                  Cash, ATM,      |
|                                  | Pope,                  Mississippi                | Drive-thru.                                |
|                                  | 662-578-5650                                      |                                       |
|                                  |                                              |                                       |
| Southaven                  Branch     | 3035                  Church Road                 | Loans,                  Deposits, Cash,    |
|                                  | Southaven,                  MS 38672              | Safe                  Deposit Boxes,       |
|                                  | 662-893-3243                                      | ATM,                  Drive-thru.          |

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|                                                 |                                     |                                             |
|------------------------------------------------------|------------------------------------------|--------------------------------------------------|
|                                                 |                                     |                                             |
| Trust                  and Financial Services Branch | 220                  Power Drive         | Investment                  Planning &       |
|                                                 | Batesville,                  Mississippi | Management,                  Personal Trusts,    |
|                                                 | 662-563-9311                             | Corporate                  Trusts, Pension & |
|                                                 |                                     | Profit-Sharing                  Plans, IRAs,     |
|                                                 |                                     | Paying                  Agent Accounts.          |
|                                                 |                                     |                                             |

**ITEM      3. LEGAL PROCEEDINGS**

**ITEM      4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS**

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**PART      II**

**ITEM      5. **
**MARKET      FOR THE REGISTRANT'S COMMON STOCK AND RELATED STOCKHOLDER      MATTERS**

**Market      Value**

**Dividends**

**ITEM      6. SELECTED FINANCIAL DATA**

**Five      Year Financial Summary**

| **Security                Capital Corporation**                                                                                                                    |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| **Table                1 - Five Year Financial Summary**                                                                                                           |   |
|                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **                          **   |   |   | **12/31/2005**  |   |   | **12/31/2004** |   |   | **12/31/2003** |   |   | **12/31/2002** |   |   | **12/31/2001** |   |
| **(Dollars                in thousands except per share data and Other Financial                Data)**                                                            |   |   |
| **Income                Statement Data:**                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                Income                                                                                                                                     |   |   | 24,458 |   |   | 19,092 |   |   | 17,009 |   |   | 16,847 |   |   | 19,834 |   |
| Interest                Expense                                                                                                                                    |   |   | 6,907 |   |   | 4,139 |   |   | 3,955 |   |   | 4,760 |   |   | 7,744 |   |
| Net                Interest Income                                                                                                                                 |   |   | 17,551 |   |   | 14,953 |   |   | 13,054 |   |   | 12,087 |   |   | 12,090 |   |
| Provision                for Loan Losses                                                                                                                           |   |   | 1,440 |   |   | 637 |   |   | 546 |   |   | 672 |   |   | 701 |   |
| Net                Interest Income After Provision                                                                                                                 |   |   | 16,111 |   |   | 14,316 |   |   | 12,508 |   |   | 11,415 |   |   | 11,389 |   |
| Noninterest                Income                                                                                                                                  |   |   | 6,151 |   |   | 5,657 |   |   | 5,666 |   |   | 5,155 |   |   | 4,591 |   |
| Noninterest                Expenses                                                                                                                                |   |   | 12,948 |   |   | 11,410 |   |   | 10,618 |   |   | 10,092 |   |   | 9,555 |   |
| Income                Before Income Taxes                                                                                                                          |   |   | 9,314 |   |   | 8,563 |   |   | 7,556 |   |   | 6,478 |   |   | 6,425 |   |
| Income                Tax Expense                                                                                                                                  |   |   | 2,707 |   |   | 2,431 |   |   | 2,039 |   |   | 1,666 |   |   | 1,814 |   |
| NET                INCOME                                                                                                                                          |   |   | 6,607 |   |   | 6,132 |   |   | 5,517 |   |   | 4,812 |   |   | 4,611 |   |
|                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Per                Share Data:**                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Income*                                                                                                                                         |   |   | 2.53 |   |   | 2.35 |   |   | 2.12 |   |   | 1.85 |   |   | 1.77 |   |
| Cash                Dividends*                                                                                                                                     |   |   | 1.00 |   |   | 0.95 |   |   | 0.86 |   |   | 0.78 |   |   | 0.70 |   |
| Book                Value*                                                                                                                                         |   |   | 18.07 |   |   | 16.72 |   |   | 15.69 |   |   | 14.54 |   |   | 13.22 |   |
|                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Other                Ratios:**                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Return                on Average Assets                                                                                                                            |   |   | 1.57 |   |   | 1.65 |   |   | 1.66 |   |   | 1.60 |   |   | 1.62 |   |
| Return                on Equity                                                                                                                                    |   |   | 14.16 |   |   | 14.22 |   |   | 13.73 |   |   | 13.45 |   |   | 13.78 |   |
| Loans                to Deposits                                                                                                                                   |   |   | 83.98 |   |   | 70.29 |   |   | 70.87 |   |   | 70.60 |   |   | 72.33 |   |
| Loans                to Total Assets                                                                                                                               |   |   | 68.36 |   |   | 60.06 |   |   | 60.08 |   |   | 59.42 |   |   | 61.08 |   |
| Equity                Capital to Total Assets                                                                                                                      |   |   | 10.83 |   |   | 11.24 |   |   | 12.01 |   |   | 12.00 |   |   | 12.36 |   |
| Average                Equity to Average Assets                                                                                                                    |   |   | 11.12 |   |   | 11.61 |   |   | 12.12 |   |   | 11.94 |   |   | 11.73 |   |
| Dividend                Payout Ratio                                                                                                                               |   |   | 39.52 |   |   | 40.52 |   |   | 40.66 |   |   | 42.04 |   |   | 39.47 |   |
|                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Other                Financial Data:**                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                Dividends Declared                                                                                                                             |   |   | 2,611,400 |   |   | 2,484,937 |   |   | 2,243,187 |   |   | 2,022,867 |   |   | 1,819,753 |   |
| Weighted                Average                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Outstanding                Common Shares                                                                                                                           |   |   | 2,611,126 |   |   | 2,608,680 |   |   | 2,603,814 |   |   | 2,603,034 |   |   | 2,603,510 |   |
|                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| *                The per share information is based upon the retroactive effect of                the                stock dividends for the period. The per share |
| data                being reflected was derived using the weighted average number of                outstanding shares at December 31, 2005, as                    |
| the                denominator. (The weighted average number of outstanding shares at                December 31, 2005, was 2,622,878.)                            |
| For                example, the cash dividends per share were determined by dividing                the                amount of dividends by 2,622,878.           |

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|                                     |   |   |    |   |   |    |   |   |    |   |   |    |   |   |    |   |
|------------------------------------------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
| **Balance                Sheet Data:**   |   |   |    |   |   |    |   |   |    |   |   |    |   |   |    |   |
| Total                Assets              |   |   | 435,876 |   |   | 390,274 |   |   | 340,253 |   |   | 315,596 |   |   | 278,512 |   |
| Earning                Assets            |   |   | 381,794 |   |   | 349,276 |   |   | 304,056 |   |   | 276,677 |   |   | 244,345 |   |
| Investment                Securities AFS |   |   | 78,949  |   |   | 96,669  |   |   | 76,320  |   |   | 74,879  |   |   | 62,056  |   |
| Investment                Securites HTM  |   |   | 2,047   |   |   | 2,050   |   |   | 2,053   |   |   | 0       |   |   | 0       |   |
| Other                Securities          |   |   | 1,456   |   |   | 1,259   |   |   | 991     |   |   | 738     |   |   | 717     |   |
| Loans                - Net               |   |   | 294,046 |   |   | 230,805 |   |   | 200,759 |   |   | 184,060 |   |   | 167,079 |   |
| Allowance                for Loan Losses |   |   | 3,899   |   |   | 3,598   |   |   | 3,665   |   |   | 3,455   |   |   | 3,039   |   |
| Total                Deposits            |   |   | 354,766 |   |   | 333,458 |   |   | 288,442 |   |   | 265,597 |   |   | 235,192 |   |
| Savings                Deposits          |   |   | 30,349  |   |   | 28,416  |   |   | 25,869  |   |   | 19,747  |   |   | 17,552  |   |
| Time                Deposits             |   |   | 129,057 |   |   | 116,064 |   |   | 110,914 |   |   | 121,093 |   |   | 112,032 |   |
| Long                Term Borrowings      |   |   | 12,991  |   |   | 8,634   |   |   | 4,738   |   |   | 5,113   |   |   | 3,678   |   |
| Shareholders'                Equity      |   |   | 47,187  |   |   | 43,870  |   |   | 40,848  |   |   | 37,857  |   |   | 34,429  |   |
|                                     |   |   |    |   |   |    |   |   |    |   |   |    |   |   |    |   |
|                                     |   |   |    |   |   |    |   |   |    |   |   |    |   |   |    |   |
| **Average                Balances:**     |   |   |    |   |   |    |   |   |    |   |   |    |   |   |    |   |
| Total                Assets              |   |   | 419,569 |   |   | 371,424 |   |   | 331,612 |   |   | 299,830 |   |   | 285,249 |   |
| Earning                Assets            |   |   | 372,321 |   |   | 333,561 |   |   | 296,651 |   |   | 268,860 |   |   | 257,788 |   |
| Securities                               |   |   | 93,077  |   |   | 97,514  |   |   | 87,954  |   |   | 69,521  |   |   | 67,788  |   |
| Total                Loans               |   |   | 271,323 |   |   | 221,309 |   |   | 197,814 |   |   | 179,295 |   |   | 178,263 |   |
| Allowance                for Loan Losses |   |   | 3,727   |   |   | 3,850   |   |   | 3,667   |   |   | 3,232   |   |   | 3,006   |   |
| Savings                Deposits          |   |   | 29,420  |   |   | 26,663  |   |   | 23,006  |   |   | 18,340  |   |   | 16,277  |   |
| Time                Deposits             |   |   | 117,127 |   |   | 114,125 |   |   | 114,998 |   |   | 110,189 |   |   | 114,704 |   |
| Long-Term                Borrowings      |   |   | 11,766  |   |   | 7,695   |   |   | 3,197   |   |   | 4,852   |   |   | 3,539   |   |
| Shareholder's                Equity      |   |   | 46,665  |   |   | 43,110  |   |   | 40,183  |   |   | 35,790  |   |   | 33,470  |   |
|                                     |   |   |    |   |   |    |   |   |    |   |   |    |   |   |    |   |
| **Other                Data:**           |   |   |    |   |   |    |   |   |    |   |   |    |   |   |    |   |
| Number                of Employees       |   |   | 182     |   |   | 162     |   |   | 157     |   |   | 146     |   |   | 140     |   |

----

**ITEM      7. **
**MANAGEMENT’S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS**

**Application      of Critical Accounting Policies**

**Management's      Discussion and Analysis of Financial Condition and Results of      Operations**

**For      the Years Ended December 31, 2005, 2004, and 2003**

*This      discussion includes various forward-looking statements with respect to credit      quality (including delinquency trends and the allowance for loan losses),      corporate objectives and other financial and business matters. When used in      this      discussion the words "anticipate," "project," "expect," "believe," and similar      expressions are intended to identify forward-looking statements. Security      Capital Corporation cautions that these forward-looking statements are subject      to mumerous assu,ptios, risks and uncertainties, all of which may*

*change      over time. Actual results could differ materially from forward-looking      statements. *

*In      addition to factors disclosed by Security Capital Corporation elsewhere in      this      report, the following factors, among others, could cause actual results to      differ materially from such forward-looking statements: exposure to local      economic conditions, interest rate risk, credit quality, risks inherent in      consumer and commercial lending, competition, and the extent and timing of      legislative and regulatory actions and reforms.*

**Results      of Operations**

**Overview**

----

**Net      Interest Income**

| **Security                Capital Corporation**                                                   |   |
|---------------------------------------------------------------------------------------------------|--------|
| **Table                2 - Average Balances; Interest Earned and Interest                Yields** |   |
| (Dollars                in thousands)                                                             |   |
|                                                                                              |   | Years                ended December 31, |   |
|                                                                                              |   | 2005 | 2004 | 2003 |
| Average                                                                                           |   |   |   |   |   |  |   |   | Average |   |   | Average |   |   |  |   |   | Average |   |   | Average |   |   |  |   |   | Average |   |
| Balance                                                                                           |   |   |   |   |   | Interest |   |   | Yields |   |   | Balance |   |   | Interest |   |   | Yields |   |   | Balance |   |   | Interest |   |   | Yields |   |
| **Assets:**                                                                                       |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Interest-Earning                Assets:                                                           |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Securities                                                                                        |   |   | 92,679 |   |   | 3,687 |   |   | 3.98 |   |   | 96,219 |   |   | 3,826 |   |   | 3.98 |   |   | 85,582 |   |   | 3,256 |   |   | 3.80 |   |
| BV                to MV                                                                           |   |   | 398 |   |   |  |   |   |  |   |   | 1,295 |   |   |  |   |   |  |   |   | 2,372 |   |   |  |   |   |  |   |
| Total                Securities                                                                   |   |   | 93,077 |   |   | 3,687 |   |   | 3.96 |   |   | 97,514 |   |   | 3,826 |   |   | 3.92 |   |   | 87,954 |   |   | 3,256 |   |   | 3.70 |   |
|                                                                                              |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Loans                (2)                                                                          |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Commerical/Agricultural                                                                           |   |   | 197,627 |   |   | 13,888 |   |   | 7.03 |   |   | 150,633 |   |   | 8,951 |   |   | 5.94 |   |   | 138,228 |   |   | 8,409 |   |   | 6.08 |   |
| Consumer/Installment                                                                              |   |   | 68,682 |   |   | 5,275 |   |   | 7.68 |   |   | 66,148 |   |   | 5,050 |   |   | 7.63 |   |   | 55,178 |   |   | 4,559 |   |   | 8.26 |   |
| Mortgage                                                                                          |   |   | 859 |   |   | 70 |   |   | 8.15 |   |   | 1,096 |   |   | 89 |   |   | 8.12 |   |   | 1,565 |   |   | 127 |   |   | 8.12 |   |
| Other                Personal Loans                                                               |   |   | 4,155 |   |   | 278 |   |   | 6.69 |   |   | 3,432 |   |   | 952 |   |   | 27.74 |   |   | 2,843 |   |   | 168 |   |   | 5.91 |   |
| Total                Loans                                                                        |   |   | 271,323 |   |   | 19,511 |   |   | 7.19 |   |   | 221,309 |   |   | 15,042 |   |   | 6.80 |   |   | 197,814 |   |   | 13,263 |   |   | 6.70 |   |
|                                                                                              |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Other                Investments                                                                  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| CDs                with Other Banks                                                               |   |   | 564 |   |   | 19 |   |   | 3.37 |   |   | 529 |   |   | 19 |   |   | 3.59 |   |   | 677 |   |   | 28 |   |   | 4.14 |   |
| Federal                Funds Sold                                                                 |   |   | 3,567 |   |   | 106 |   |   | 2.97 |   |   | 4,488 |   |   | 58 |   |   | 1.29 |   |   | 5,412 |   |   | 64 |   |   | 1.18 |   |
| FHLB                Account/Bank Accounts                                                         |   |   | 3,325 |   |   | 76 |   |   | 2.29 |   |   | 9,721 |   |   | 147 |   |   | 1.51 |   |   | 4,794 |   |   | 47 |   |   | 0.98 |   |
| Total                Other                                                                        |   |   | 7,456 |   |   | 201 |   |   | 2.70 |   |   | 14,738 |   |   | 224 |   |   | 1.52 |   |   | 10,883 |   |   | 139 |   |   | 1.28 |   |
|                                                                                              |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Total                Earning Assets                                                               |   |   | 371,856 |   |   | 23,399 |   |   | 6.29 |   |   | 333,561 |   |   | 19,092 |   |   | 5.72 |   |   | 296,651 |   |   | 16,658 |   |   | 5.62 |   |
|                                                                                              |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Noninterest                Earning Assets:                                                        |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
|                                                                                              |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Allowance                for Loan Losses                                                          |   |   | -3,727 |   |   |  |   |   |  |   |   | -3,850 |   |   |  |   |   |  |   |   | -3,667 |   |   |  |   |   |  |   |
| Fixed                Assets                                                                       |   |   | 16,570 |   |   |  |   |   |  |   |   | 12,612 |   |   |  |   |   |  |   |   | 11,277 |   |   |  |   |   |  |   |
| Other                Assets                                                                       |   |   | 19,250 |   |   |  |   |   |  |   |   | 14,951 |   |   |  |   |   |  |   |   | 14,808 |   |   |  |   |   |  |   |
| Cash                and Due Froms                                                                 |   |   | 15,620 |   |   |  |   |   |  |   |   | 14,150 |   |   |  |   |   |  |   |   | 12,543 |   |   |  |   |   |  |   |
|                                                                                              |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Total                Noninterest Earning Assets                                                   |   |   | 47,713 |   |   |  |   |   |  |   |   | 37,863 |   |   |  |   |   |  |   |   | 34,961 |   |   |  |   |   |  |   |
|                                                                                              |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| **Total                Assets**                                                                   |   |   | 419,569 |   |   |  |   |   |  |   |   | 371,424 |   |   |  |   |   |  |   |   | 331,612 |   |   |  |   |   |  |   |

----

|                                                    |   |   |         |   |   |        |   |   |      |   |   |         |   |   |        |   |   |      |   |   |         |   |   |        |   |   |      |   |
|---------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|------|--------|--------|---------|--------|--------|--------|--------|--------|------|--------|--------|---------|--------|--------|--------|--------|--------|------|--------|
| **Liabilities                & Shareholder Equity** |   |   |         |   |   |        |   |   |      |   |   |         |   |   |        |   |   |      |   |   |         |   |   |        |   |   |      |   |
|                                                    |   |   |         |   |   |        |   |   |      |   |   |         |   |   |        |   |   |      |   |   |         |   |   |        |   |   |      |   |
| Interest-Bearing                Liabilities             |   |   |         |   |   |        |   |   |      |   |   |         |   |   |        |   |   |      |   |   |         |   |   |        |   |   |      |   |
| Deposits:                                               |   |   |         |   |   |        |   |   |      |   |   |         |   |   |        |   |   |      |   |   |         |   |   |        |   |   |      |   |
| Interest-Bearing                DDA                     |   |   | 145,036 |   |   | 2,461  |   |   | 1.70 |   |   | 123,215 |   |   | 1,280  |   |   | 1.04 |   |   | 93,409  |   |   | 931    |   |   | 1.00 |   |
| Savings                Deposits                         |   |   | 29,420  |   |   | 348    |   |   | 1.18 |   |   | 26,663  |   |   | 280    |   |   | 1.05 |   |   | 22,780  |   |   | 258    |   |   | 1.13 |   |
| Time                Deposits                            |   |   | 117,127 |   |   | 3,355  |   |   | 2.86 |   |   | 114,125 |   |   | 2,230  |   |   | 1.95 |   |   | 114,998 |   |   | 2,421  |   |   | 2.11 |   |
|                                                    |   |   |         |   |   |        |   |   |      |   |   |         |   |   |        |   |   |      |   |   |         |   |   |        |   |   |      |   |
| Total                Interest-Bearing Deposits          |   |   | 291,583 |   |   | 6,164  |   |   | 2.11 |   |   | 264,003 |   |   | 3,790  |   |   | 1.44 |   |   | 231,187 |   |   | 3,610  |   |   | 1.56 |   |
|                                                    |   |   |         |   |   |        |   |   |      |   |   |         |   |   |        |   |   |      |   |   |         |   |   |        |   |   |      |   |
| Borrowed                Funds                           |   |   |         |   |   |        |   |   |      |   |   |         |   |   |        |   |   |      |   |   |         |   |   |        |   |   |      |   |
| Short-Term                Borrowings                    |   |   | 6,272   |   |   | 230    |   |   | 3.67 |   |   | 1,032   |   |   | 15     |   |   | 1.45 |   |   | 860     |   |   | 10     |   |   | 1.16 |   |
| FHLB                Advances- Short/Long-Term           |   |   | 11,766  |   |   | 506    |   |   | 4.30 |   |   | 7,695   |   |   | 334    |   |   | 4.34 |   |   | 7,985   |   |   | 334    |   |   | 4.18 |   |
|                                                    |   |   |         |   |   |        |   |   |      |   |   |         |   |   |        |   |   |      |   |   |         |   |   |        |   |   |      |   |
| Total                Borrowed Funds                     |   |   | 18,038  |   |   | 736    |   |   | 4.08 |   |   | 8,727   |   |   | 349    |   |   | 4.00 |   |   | 8,845   |   |   | 344    |   |   | 3.89 |   |
|                                                    |   |   |         |   |   |        |   |   |      |   |   |         |   |   |        |   |   |      |   |   |         |   |   |        |   |   |      |   |
| Total                Interest-Bearing Liabilities       |   |   | 309,621 |   |   | 6,900  |   |   | 2.23 |   |   | 272,730 |   |   | 4,139  |   |   | 1.52 |   |   | 240,032 |   |   | 3,954  |   |   | 1.65 |   |
|                                                    |   |   |         |   |   |        |   |   |      |   |   |         |   |   |        |   |   |      |   |   |         |   |   |        |   |   |      |   |
| Non-Interest-Bearing                Liabilities         |   |   |         |   |   |        |   |   |      |   |   |         |   |   |        |   |   |      |   |   |         |   |   |        |   |   |      |   |
| Non-Interest-Bearing                Deposits            |   |   | 58,199  |   |   |        |   |   |      |   |   | 51,798  |   |   |        |   |   |      |   |   | 47,260  |   |   |        |   |   |      |   |
| Other                Liabilities                        |   |   | 5,084   |   |   |        |   |   |      |   |   | 3,786   |   |   |        |   |   |      |   |   | 4,137   |   |   |        |   |   |      |   |
|                                                    |   |   |         |   |   |        |   |   |      |   |   |         |   |   |        |   |   |      |   |   |         |   |   |        |   |   |      |   |
| Shareholders'                Equity                     |   |   | 46,665  |   |   |        |   |   |      |   |   | 43,110  |   |   |        |   |   |      |   |   | 40,183  |   |   |        |   |   |      |   |
|                                                    |   |   |         |   |   |        |   |   |      |   |   |         |   |   |        |   |   |      |   |   |         |   |   |        |   |   |      |   |
| **Total                Liabilities & SH Equity**    |   |   | 419,569 |   |   |        |   |   |      |   |   | 371,424 |   |   |        |   |   |      |   |   | 331,612 |   |   |        |   |   |      |   |
|                                                    |   |   |         |   |   |        |   |   |      |   |   |         |   |   |        |   |   |      |   |   |         |   |   |        |   |   |      |   |
| Net                Interest Income &                |   |   |         |   |   |        |   |   |      |   |   |         |   |   |        |   |   |      |   |   |         |   |   |        |   |   |      |   |
| Interest                Rate Spread                     |   |   |         |   |   | 16,499 |   |   | 4.06 |   |   |         |   |   | 14,953 |   |   | 4.21 |   |   |         |   |   | 12,704 |   |   | 3.97 |   |
|                                                    |   |   |         |   |   |        |   |   |      |   |   |         |   |   |        |   |   |      |   |   |         |   |   |        |   |   |      |   |
| Net                Interest Margin                      |   |   |         |   |   |        |   |   | 4.44 |   |   |         |   |   |        |   |   | 4.48 |   |   |         |   |   |        |   |   | 4.28 |   |

| **Table                3 - Net Interest Earning Assets** |   |
|----------------------------------------------------------|--------|
| (in                thousands)                            |   |
|                                                     |   |   |   |   |   |   |   |
|                                                     |   | **2005** |   | **2004** |   | **2003** |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |
| Average                Interest                          |   |   |   |   |   |   |   |   |   |   |
| Earning                Assets                            |   |   | 371,856 |   |   | 333,561 |   |   | 296,651 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |
| Average                Interest                          |   |   |   |   |   |   |   |   |   |   |
| Bearing                Liabilities                       |   |   | 309,621 |   |   | 272,730 |   |   | 240,032 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |
| Net                                                      |   |   | 62,235 |   |   | 60,831 |   |   | 56,619 |   |

----

| **Table                3A - Volume/Rate Analysis** |   |
|----------------------------------------------------|--------|
| (in                thousands)                      |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                               |   | 2005                Change from 2004 |   | 2004                Change from 2003 |   |
| Volume                                             |   |   |   |   |   | Rate |   |   | Total |   |   | Volume |   |   | Rate |   |   | Total |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INTEREST                INCOME: (1)                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                              |   |   | 3,596 |   |   | 863 |   |   | 4,459 |   |   | 1,518 |   |   | -472 |   |   | 1,046 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment                Securities               |   |   | -176 |   |   | 39 |   |   | -137 |   |   | 375 |   |   | 179 |   |   | 554 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                                              |   |   | -197 |   |   | 174 |   |   | -23 |   |   | 58 |   |   | 27 |   |   | 85 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                Interest Income               |   |   | 3,223 |   |   | 1,076 |   |   | 4,299 |   |   | 1,951 |   |   | -266 |   |   | 1,685 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INTEREST                EXPENSE: (2)               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                Bearing                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand                Deposit Accounts             |   |   | 371 |   |   | 813 |   |   | 1,184 |   |   | 310 |   |   | 33 |   |   | 343 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings                Deposits                    |   |   | 33 |   |   | 35 |   |   | 68 |   |   | 43 |   |   | -21 |   |   | 22 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Time                Deposits                       |   |   | 86 |   |   | 1,039 |   |   | 1,125 |   |   | -17 |   |   | -186 |   |   | -203 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Borrowed                Funds                      |   |   | 380 |   |   | 7 |   |   | 387 |   |   | -5 |   |   | 10 |   |   | 5 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                Interest Expense              |   |   | 870 |   |   | 1,894 |   |   | 2,764 |   |   | 331 |   |   | -164 |   |   | 167 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET                INTEREST INCOME                 |   |   | 2,353 |   |   | -818 |   |   | 1,535 |   |   | 1,620 |   |   | 102 |   |   | 1,518 |   |

**Non-Interest      Income and Non-Interest Expense**

----

| **Table                4 - Non-Interest Income and Expense** |   |
|--------------------------------------------------------------|--------|
| (in                thousands)                                |   |
|                                                         |   |   |   |   |   |   |   |
|                                                         |   | **2005** |   | **2004** |   | **2003** |   |
| Non-Interest                Income:                          |   |   |   |   |   |   |   |   |   |   |
| Trust                Department Income                       |   |   | 978 |   |   | 911 |   |   | 876 |   |
| Service                Charges: Deposits                     |   |   | 4,333 |   |   | 3,876 |   |   | 3,758 |   |
| Other                Operating Income                        |   |   | 840 |   |   | 870 |   |   | 1,032 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |
| Total                Non-Interest Income                     |   |   | 6,151 |   |   | 5,657 |   |   | 5,666 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |
| Non-Interest                Expense:                         |   |   |   |   |   |   |   |   |   |   |
| Salaries                & Employee Benefits              |   |   | 8,588 |   |   | 7,607 |   |   | 6,649 |   |
| Occupancy                Expense                             |   |   | 1,553 |   |   | 1,236 |   |   | 1,311 |   |
| Other                Operating Expense                       |   |   | 2,807 |   |   | 2,567 |   |   | 2,658 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |
| Total                Non-Interest Expense                    |   |   | 12,948 |   |   | 11,410 |   |   | 10,618 |   |

**Income      Taxes**

**Financial      Condition**

**Loans**

**Authorization      of Loans**

----

**Collateral      and Documentation Requirements **

**Characteristics,      Criteria and Risks of Types**

**Concentration      of Credit**

| **Table                5 - Loans by Type**                  |   |
|-------------------------------------------------------------|--------|
| (in                thousands)                               |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |   | **2005** |   |   | **2004** |   |   | **2003** |   |   | **2002** |   |   | **2001** |   |
| Commercial,                Financial & Agricultural     |   |   | 30,826 |   |   | 28,077 |   |   | 32,878 |   |   | 38,229 |   |   | 34,459 |   |
| Real                Estate - Construction & Development |   |   | 86,404 |   |   | 49,189 |   |   | 37,116 |   |   | 27,165 |   |   | 21,183 |   |
| Real                Estate - Mortgage                       |   |   | 149,602 |   |   | 124,911 |   |   | 103,348 |   |   | 96,737 |   |   | 88,074 |   |
| Installment                Loans to Individuals             |   |   | 28,833 |   |   | 29,898 |   |   | 28,529 |   |   | 22,602 |   |   | 23,893 |   |
| Other                                                       |   |   | 2,280 |   |   | 2,328 |   |   | 2,553 |   |   | 2,782 |   |   | 2,509 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                Loans                                  |   |   | 297,945 |   |   | 234,403 |   |   | 204,424 |   |   | 187,515 |   |   | 170,118 |   |

----

| **Table                6 - Loan Liquidity**                |   |
|------------------------------------------------------------|--------|
| (Dollars                in thousands)                      |   |
|                                                       |   |   |   |   |   |   |   |   |   |
|                                                       |   | **Within** |   | **1                thr 5** |   | **Over** |   |   |   |
| **Loans                That Will Reprice or Will Mature:** |   | **1                Year** |   | **Years** |   | **5                Years** |   | **Total** |   |
| Allocation                by Maturity Date:                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial,                financial and agriculture loans |   |   | 18,243 |   |   | 12,249 |   |   | 334 |   |   | 30,826 |   |
| Construction                and development                |   |   | 76,106 |   |   | 10,234 |   |   | 64 |   |   | 86,404 |   |
|                                                       |   |   | 94,349 |   |   | 22,483 |   |   | 398 |   |   | 117,230 |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Repricing                frequency of loan types above:    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed                Rate                                  |   |   | 24,335 |   |   | 14,598 |   |   | 304 |   |   | 39,237 |   |
| Variable                Rate                               |   |   | 70,014 |   |   | 7,885 |   |   | 94 |   |   | 77,993 |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                      |   |   | 94,349 |   |   | 22,483 |   |   | 398 |   |   | 117,230 |   |
| Percent                of Total                            |   |   | 80.48 | % |   | 19.18 | % |   | 0.34 | % |   | 100.00 | % |

**Allowance      and Provision for Loan Losses**

----

| **Security                Capital Corporation**             |   |
|-------------------------------------------------------------|--------|
| **Table                7 - Allowance for Loan Losses**      |   |
| **(Dollars                in thousands)**                   |   |
|                                                        |   |   | **2005** |   |   | **2004** |   |   | **2,003** |   |   | **2002** |   |   | **2001** |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at Beginning of Year                 |   |   | 3,598 |   |   | 3,665 |   |   | 3,455 |   |   | 3,039 |   |   | 2,920 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                Charged-Off                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial,                Financial & Agricultural     |   |   | 250 |   |   | 242 |   |   | 146 |   |   | 75 |   |   | 58 |   |
| Real                Estate - Construction & Development |   |   | 20 |   |   | 6 |   |   | 4 |   |   | 0 |   |   |   |   |
| Real                Estate - Mortgage                       |   |   | 313 |   |   | 225 |   |   | 69 |   |   | 75 |   |   | 121 |   |
| Installment                Loans to Individuals             |   |   | 971 |   |   | 655 |   |   | 167 |   |   | 584 |   |   | 666 |   |
| Other                                                       |   |   | 63 |   |   |   |   |   | 324 |   |   | 4 |   |   | 21 |   |
| Total                Charge-Offs                            |   |   | 1,617 |   |   | 1,128 |   |   | 710 |   |   | 738 |   |   | 866 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Charge-Off                Recovered                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial,                Financial & Agricultural     |   |   | 23 |   |   | 2 |   |   | 36 |   |   | 8 |   |   | 18 |   |
| Real                Estate - Construction & Development |   |   |  |   |   |  |   |   | 26 |   |   | 6 |   |   | 2 |   |
| Real                Estate - Mortgage                       |   |   | 49 |   |   | 24 |   |   |   |   |   | 39 |   |   | 6 |   |
| Installment                Loans to Individuals             |   |   | 383 |   |   | 398 |   |   | 104 |   |   | 423 |   |   | 254 |   |
| Other                                                       |   |   | 23 |   |   |   |   |   | 208 |   |   | 6 |   |   | 4 |   |
| Total                Recoveries                             |   |   | 478 |   |   | 424 |   |   | 374 |   |   | 482 |   |   | 284 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Charge-Offs                              |   |   | 1,139 |   |   | 704 |   |   | 336 |   |   | 256 |   |   | 582 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                Year Provision                       |   |   | 1,440 |   |   | 637 |   |   | 546 |   |   | 672 |   |   | 701 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at End of Year                       |   |   | 3,899 |   |   | 3,598 |   |   | 3,665 |   |   | 3,455 |   |   | 3,039 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                at End of Year                         |   |   | 294,046 |   |   | 230,805 |   |   | 200,759 |   |   | 187,515 |   |   | 170,118 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio:                Allowance to Loans                    |   |   | 1.33 | % |   | 1.56 | % |   | 1.83 | % |   | 1.84 | % |   | 1.79 | % |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average                Loans                                |   |   | 271,323 |   |   | 221,309 |   |   | 197,814 |   |   | 179,295 |   |   | 178,263 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio:                Allowance to Average Loans            |   |   | 1.44 | % |   | 1.63 | % |   | 1.85 | % |   | 1.93 | % |   | 1.70 | % |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio:                Net Charge Offs to Average Loans      |   |   | 0.42 | % |   | 0.32 | % |   | 0.17 | % |   | 0.14 | % |   | 0.33 | % |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| **Table                8 - Nonperforming Assets** |   |
|---------------------------------------------------|--------|
| (Dollars                in thousands)             |   |
|                                              |   |   | **2005** |   |   | **2004** |   |   | **2003** |   |   | **2002** |   |   | **2001** |   |
| Loans:                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-accrual                                       |   |   | 15 |   |   | 172 |   |   | 78 |   |   | 590 |   |   | 495 |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 90                Days and Over Past-Due          |   |   | 786 |   |   | 724 |   |   | 629 |   |   | 307 |   |   | 333 |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                Nonperforming Loans          |   |   | 801 |   |   | 896 |   |   | 707 |   |   | 897 |   |   | 828 |   |
| As                % of Total Loans                |   |   | 0.27 | % |   | 0.38 | % |   | 0.35 | % |   | 0.44 | % |   | 0.49 | % |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                Real Estate                  |   |   | 558 |   |   | 165 |   |   | 129 |   |   | 234 |   |   | 228 |   |
| As                % of Total Loans                |   |   | 0.19 | % |   | 0.07 | % |   | 0.06 | % |   | 0.12 | % |   | 0.13 | % |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loan                Loss Reserve                  |   |   | 3,899 |   |   | 3,598 |   |   | 3,665 |   |   | 3,455 |   |   | 2,959 |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loan                Charge-Offs                   |   |   | 1617 |   |   | 1128 |   |   | 710 |   |   | 738 |   |   | 865 |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                Loans                        |   |   | 297,945 |   |   | 234,403 |   |   | 204,424 |   |   | 187,515 |   |   | 170,118 |   |

**Potential      Problem Loans**

----

| **Table                8A - Allocation of the Allowance for Loan Losses** |   |
|---------------------------------------------------------------------------|--------|
| **At                December 31,**                                        |   |
| (Dollars                in thousands)                                     |   |
|                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                      |   | **2005** |   | **2004** |   | **2003** |   | **2002** |   | **2001** |   |
| **Amount**                                                                |   |   |   |   | **Percent** |   | **Balance** |   |   | **Percent** |   |   | **Balance** |   |   | **Percent** |   |   | **Amount** |   |   | **Percent** |   |   | **Amount** |   |   | **Percent** |   |
|                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial,                Financial                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| &                Agricultural                                         |   | $                401 |   | 10.31 | % | $ | 538 |   |   | 14.95 | % | $ | 856 |   |   | 23.36 | % | $ | 1,006 |   |   | 29.12 | % | $ | 679 |   |   | 22.34 | % |
|                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real                Estate - Construction                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| &                Development                                          |   | 865 |   | 22.24 | % |   | 522 |   |   | 14.51 | % |   | 461 |   |   | 12.58 | % |   | 298 |   |   | 8.63 | % |   | 227 |   |   | 7.47 | % |
|                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real                Estate - Mortgage                                     |   | 1,896 |   | 48.75 | % |   | 1,735 |   |   | 48.22 | % |   | 1,533 |   |   | 41.83 | % |   | 1,246 |   |   | 36.06 | % |   | 1,040 |   |   | 34.22 | % |
|                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Installment                Loans                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| to                Individuals                                             |   | 575 |   | 14.79 | % |   | 780 |   |   | 21.68 | % |   | 732 |   |   | 19.97 | % |   | 816 |   |   | 23.62 | % |   | 859 |   |   | 28.27 | % |
|                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                Loans                                                |   | 152 |   | 3.91 | % |   | 23 |   |   | 0.64 | % |   | 26 |   |   | 0.71 | % |   | 28 |   |   | 0.81 | % |   | 25 |   |   | 0.82 | % |
|                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unallocated                                                               |   | - |   | - |   |   | - |   |   | - |   |   | 57 |   |   | 1.56 | % |   | 61 |   |   | 1.77 | % |   | 209 |   |   | 6.88 | % |
|                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                Loans                                                |   | $                3,889 |   | 100.00 | % | $ | 3,598 |   |   | 100.00 | % | $ | 3,665 |   |   | 100.00 | % | $ | 3,455 |   |   | 100.00 | % | $ | 3,039 |   |   | 100.00 | % |

**Note:      Percent in the above table represents the amount represented by the loan type      in      the loan portfolio.**

----

----

**Securities**

| **Table                9 - Securities**      |   |
|----------------------------------------------|--------|
| (in                thousands)                |   |
|                                         |   |   | **2005** |   |   | **2004** |   |   | **2003** |   |   | **2002** |   |   | **2001** |   |
| Securities                Available for Sale |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.                S. Treasuries              |   |   | - |   |   | - |   |   | 702 |   |   | 713 |   |   | 1,007 |   |
| U.                S. Agencies                |   |   | 11,175 |   |   | 23,316 |   |   | 28,560 |   |   | 15,026 |   |   | 1,032 |   |
| Mortgage                Backed               |   |   | 20,872 |   |   | 22,419 |   |   | 9,611 |   |   | 17,158 |   |   | 14,045 |   |
| State,                Municipals & Other |   |   | 46,902 |   |   | 50,934 |   |   | 37,447 |   |   | 41,982 |   |   | 45,972 |   |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                Securities AFS          |   |   | 78,949 |   |   | 96,669 |   |   | 76,320 |   |   | 74,879 |   |   | 62,056 |   |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities                Held to Maturity   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.                S. Treasuries              |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |
| U.                S. Agencies                |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Mortgage                Backed               |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |
| State,                Municipals & Other |   |   | 2,047 |   |   | 2,050 |   |   | 2,053 |   |   | - |   |   | - |   |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                Securities HTM          |   |   | 2,047 |   |   | 2,050 |   |   | 2,053 |   |   | - |   |   | - |   |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                Securities              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equities                                     |   |   | 1,456 |   |   | 1,259 |   |   | 991 |   |   | 738 |   |   | 717 |   |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                Securities              |   |   | 82,452 |   |   | 99,978 |   |   | 79,364 |   |   | 75,617 |   |   | 62,773 |   |

----

| **Table                10**                                                                                                                          |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| **Securities                Maturity & Repricing Schedule**                                                                                      |   |
| **For                12/31/2005**                                                                                                                    |   |
| **(Dollars                in thousands)**                                                                                                            |   |
|                                                                                                                                                 |   | **1                Year** |   | **After                1 Year** |   | **5                to 10** |   | **Over** |   |
| **                        ** |   |   | **and              Less **  |   |   | **Thru                5 Years** |   |   | **Years** |   |   | **10                Years** |   |
| **Agencies**                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Fair                Value**                                                                                                                        |   |   | 0 |   |   | 2,452 |   |   | 981 |   |   | 7,741 |   |
| **Book                Yield**                                                                                                                        |   |   |  |   |   | 4.000 |   |   | 3.947 |   |   | 3.970 |   |
|                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Taxable                Municipals**                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Fair                Value**                                                                                                                        |   |   | 213 |   |   | 921 |   |   | 179 |   |   | 0 |   |
| **Book                Yield**                                                                                                                        |   |   | 5.718 |   |   | 5.684 |   |   | 4.746 |   |   | 4.910 |   |
|                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Municipals**                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Fair                Value**                                                                                                                        |   |   | 8,058 |   |   | 15,283 |   |   | 11,635 |   |   | 12,677 |   |
| **Book                Yield**                                                                                                                        |   |   | 4.118 |   |   | 5.091 |   |   | 5.949 |   |   | 7.276 |   |
|                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Equity-FHLB**                                                                                                                                      |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 1,202 |   |
| **Book                Yield**                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   | 2.440 |   |
|                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Other                Securities**                                                                                                                  |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 254 |   |
|                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **MBS**                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Fair                Value**                                                                                                                        |   |   | 0 |   |   | 2,591 |   |   | 3,720 |   |   | 14,560 |   |
| **Book                Yield**                                                                                                                        |   |   |   |   |   | 4.405 |   |   | 4.121 |   |   | 5.266 |   |
|                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Total                Fair Values**                                                                                                                 |   |   | 8,271 |   |   | 21,247 |   |   | 16,515 |   |   | 36,434 |   |
| **Weigh                Bk Yields**                                                                                                                   |   |   | 4.159 |   |   | 4.907 |   |   | 5.405 |   |   | 5.598 |   |

----

| **Table                11 - Securities Weighted Maturity and Tax Equivalent Yield by                Classification** |   |
|----------------------------------------------------------------------------------------------------------------------|--------|
| **December                31, 2005**                                                                                 |   |
|                                                                                                                 |   |   |   | **Weighted** |   |
|                                                                                                                 |   | **Weighted** |   | **Tax-Equivalent** |   |
|                                                                                                                 |   | **Maturity** |   | **Yield** |   |
| U.                S. Agencies                                                                                        |   |   | 10.32                Yrs |   |   | 3.975 | % |
| Mortgage                Backed                                                                                       |   |   | 4.64                Yrs |   |   | 4.949 | % |
| Taxable                Municipals                                                                                    |   |   | 2.72                Yrs |   |   | 5.579 | % |
| Tax-Exempt                Municipals                                                                                 |   |   | 6.63                Yrs |   |   | 5.707 | % |
|                                                                                                                 |   |   |   |   |   |   |   |
| Total                Securities Portfolio                                                                            |   |   | 6.55                Yrs |   |   | 5.256 | % |

----

**Deposits**

| **Table                12 - Deposit Information** |   |
|---------------------------------------------------|--------|
| (Dollars                in thousands)             |   |
|                                              |   | **2005** |   |   |   | **2004** |   |   |   | **2003** |   | **2002** |   | **2001** |   |
| **Average**                                       |   |   |   |   |   | **Avg** |   |   | **Average** |   |   | **Avg** |   |   | **Average** |   |   | **Avg** |   |   | **Average** |   |   | **Avg** |   |   | **Average** |   |   | **Avg** |   |
| **Balance**                                       |   |   |   |   |   | **Rate** |   |   | **Balance** |   |   | **Rate** |   |   | **Balance** |   |   | **Rate** |   |   | **Balance** |   |   | **Rate** |   |   | **Balance** |   |   | **Rate** |   |
| **Noninterest-                Bearing**           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Demand**                                        |   |   | 57,954 |   |   |   |   |   | 51,557 |   |   |   |   |   | 47,034 |   |   |   |   |   | 41,552 |   |   |   |   |   | 38,736 |   |   |   |   |
| **Savings**                                       |   |   | 245 |   |   |   |   |   | 241 |   |   |   |   |   | 226 |   |   |   |   |   | 213 |   |   |   |   |   | 181 |   |   |   |   |
| **Interest-bearing**                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Demand**                                        |   |   | 145,036 |   |   | 1.70 |   |   | 123,215 |   |   | 1.04 |   |   | 93,409 |   |   | 1.00 |   |   | 79,950 |   |   | 1.34 |   |   | 70,591 |   |   | 2.39 |   |
| **Savings**                                       |   |   | 29,420 |   |   | 1.18 |   |   | 26,663 |   |   | 1.05 |   |   | 22,780 |   |   | 1.13 |   |   | 18,127 |   |   | 1.58 |   |   | 16,097 |   |   | 2.01 |   |
| **Time                Deposits**                  |   |   | 117,127 |   |   | 2.86 |   |   | 114,125 |   |   | 1.95 |   |   | 114,998 |   |   | 2.11 |   |   | 110,189 |   |   | 2.67 |   |   | 114,704 |   |   | 4.73 |   |
|                                              |   |   | 349,782 |   |   |   |   |   | 315,801 |   |   |   |   |   | 278,447 |   |   |   |   |   | 250,031 |   |   |   |   |   | 240,309 |   |   |   |   |

| **Table                13 - Maturity Ranges of Time Deposits** |   |
|----------------------------------------------------------------|--------|
| **With                Balances More Than $100,000**            |   |
| **As                of December 31, 2005**                     |   |
| **(in                thousands)**                              |   |
|                                                           |   |   |   |   |
| 3                Months or Less                                |   | $ | 21,902 |   |
| Over                3 Months thru 6 Months                     |   |   | 10,205 |   |
| Over                6 Months thru 12 Months                    |   |   | 17,558 |   |
| Over                12 Months                                  |   |   | 9,773 |   |
|                                                           |   |  $ | 59,438 |   |
|                                                           |   |   |   |   |

----

**Borrowings**

----

**Liquidity      and Rate Sensitivity**

----

----

| **Table                14 - Funding Uses and Sources**                      |   |
|-----------------------------------------------------------------------------|--------|
| **(Dollars                in thousands)**                                   |   |
|                                                                        |   | **2005** |   | **2004** |   | **2003** |   |
|                                                                        |   |       |   | **Increase** |   |   |   |   |   | **Increase** |   |   |   |   |   | **Increase** |   |   |   |
| **Average**                                                                 |   |   |   | (Decrease | )% |   |   |   |   | **Average** |   |   | (Decrease | )% |   |   |   |   | **Average** |   |   | (Decrease | )% |   |   |   |
| **Balance**                                                                 |   |   |   | **Amount** |   |   | **Change** |   |   | **Balance** |   |   | **Amount** |   |   | **Change** |   |   | **Balance** |   |   | **Amount** |   |   | **Change** |   |
| **Funding                Uses**                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                                                       |   | 271,323 |   | 50,014 |   |   | 22.60 |   |   | 221,309 |   |   | 23,495 |   |   | 11.88 |   |   | 197,814 |   |   | 18,519 |   |   | 10.33 |   |
| Securities*                                                                 |   | 92,679 |   | -3,540 |   |   | -3.68 |   |   | 96,219 |   |   | 10,637 |   |   | 12.43 |   |   | 85,582 |   |   | 19,164 |   |   | 28.85 |   |
| Federal                Funds Sold                                           |   | 3,567 |   | -921 |   |   | -20.52 |   |   | 4,488 |   |   | -924 |   |   | -17.07 |   |   | 5,412 |   |   | -496 |   |   | -8.40 |   |
|                                                                        |   | 367,569 |   | 45,553 |   |   | 14.15 |   |   | 322,016 |   |   | 33,208 |   |   | 11.50 |   |   | 288,808 |   |   | 37,187 |   |   | 14.78 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Funding                Sources**                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest                Bearing Deposits                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand                Deposits                                              |   | 57,954 |   |   | 6,397 |   |   | 12.41 |   |   | 51,557 |   |   | 4,523 |   |   | 9.62 |   |   | 47,034 |   |   | 5,482 |   |   | 13.19 |   |
| Savings                Deposits                                             |   | 245 |   |   | 4 |   |   | 1.66 |   |   | 241 |   |   | 15 |   |   | 6.64 |   |   | 226 |   |   | 13 |   |   | 6.10 |   |
| Interest                Bearing Deposits                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand                Deposits                                              |   | 145,036 |   |   | 21,821 |   |   | 17.71 |   |   | 123,215 |   |   | 29,806 |   |   | 31.91 |   |   | 93,409 |   |   | 13,459 |   |   | 16.83 |   |
| Savings                Deposits                                             |   | 29,420 |   |   | 2,757 |   |   | 10.34 |   |   | 26,663 |   |   | 3,883 |   |   | 17.05 |   |   | 22,780 |   |   | 4,653 |   |   | 25.67 |   |
| Time                Deposits                                                |   | 117,127 |   |   | 3,002 |   |   | 2.63 |   |   | 114,125 |   |   | -873 |   |   | -0.76 |   |   | 114,998 |   |   | 4,809 |   |   | 4.36 |   |
| Borrowings                                                                  |   | 18,038 |   |   | 9,311 |   |   | 106.69 |   |   | 8,727 |   |   | -118 |   |   | -1.33 |   |   | 8,845 |   |   | -1,589 |   |   | -15.23 |   |
|                                                                        |   | 367,820 |   |   | 43,292 |   |   | 13.34 |   |   | 324,528 |   |   | 37,236 |   |   | 12.96 |   |   | 287,292 |   |   | 26,827 |   |   | 10.30 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| *Cost                basis is used for securities instead of market values. |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| **Table                15 - Liquidity; Interest Rate Sensitivity** |   |
|--------------------------------------------------------------------|--------|
| **As                of December 31, 2005**                         |   |
| **(Dollars                in thousands)**                          |   |
|                                                               |   |   |   |
|                                                               |   | **Less** |   | **Over                3 Mos** |   | **Over                1 yr** |   | **Over** |   |   |   |
| **3                Mos**                                           |   |   |   |   |   | **thru                1 Yr** |   |   | **thru                3 Yrs** |   |   | **3                Yrs** |   |   | **Total** |   |
| **Interest                Earning Assets**                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                                              |   |   | 107,705 |   |   | 91,001 |   |   | 62,046 |   |   | 37,193 |   |   | 297,945 |   |
| Short-Term                Investments                              |   |   | 931 |   |   | - |   |   | - |   |   | - |   |   | 931 |   |
| Investment                Securities                               |   |   | 4,215 |   |   | 12,419 |   |   | 24,322 |   |   | 41,496 |   |   | 82,452 |   |
| Other                                                              |   |   | - |   |   | - |   |   | - |   |   | 5,556 |   |   | 5,556 |   |
| Total                Interest Earning Assets                       |   |   | 112,851 |   |   | 103,420 |   |   | 86,368 |   |   | 84,245 |   |   | 386,884 |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Interest                Bearing Liabilities**                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW                                                                |   |   | 30,373 |   |   | - |   |   | 6,170 |   |   | 37,543 |   |   | 74,086 |   |
| Money                Market                                        |   |   | 45,541 |   |   | - |   |   | 1,716 |   |   | 10,393 |   |   | 57,650 |   |
| Savings                Deposits                                    |   |   | 24,713 |   |   | - |   |   | 927 |   |   | 5,251 |   |   | 30,891 |   |
| Time                Deposits                                       |   |   | 37,828 |   |   | 63,111 |   |   | 20,733 |   |   | 7,385 |   |   | 129,057 |   |
| Short-Term                Borrowings                               |   |   | 16,105 |   |   | - |   |   | - |   |   | - |   |   | 16,105 |   |
| Long-Term                Borrowings                                |   |   | 148 |   |   | 456 |   |   | 3,299 |   |   | 9,088 |   |   | 12,991 |   |
| Total                Interest Bearing Liabilities                  |   |   | 154,708 |   |   | 63,567 |   |   | 32,845 |   |   | 69,660 |   |   | 320,780 |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Rate                Sensitive Assets (RSA)                         |   |   | 112,851 |   |   | 216,271 |   |   | 302,639 |   |   | 386,884 |   |   | 386,884 |   |
| Rate                Sensitive Liabilities (RSL)                    |   |   | 154,708 |   |   | 218,275 |   |   | 251,120 |   |   | 320,780 |   |   | 320,780 |   |
| Rate                Sensitive Gap                                  |   |   | -41,857 |   |   | 39,853 |   |   | 53,523 |   |   | 14,585 |   |   | 66,104 |   |
| Rate                Sensitive Cumulative Gap                       |   |   | -41,857 |   |   | -2,004 |   |   | 51,519 |   |   | 66,104 |   |   | 66,104 |   |
| Cumulative                % of Earning Assets                      |   |   | -10.82 | % |   | -0.52 | % |   | 13.32 | % |   | 17.09 | % |   | 17.09 | % |
| Cumulative                % of Total Assets                        |   |   | -12.30 | % |   | -0.59 | % |   | 15.14 | % |   | 19.43 | % |   | 19.43 | % |

----

| **Table                15A - Change in Net Interest Income Over One Year                Horizon** |   |
|---------------------------------------------------------------------------------------------------|--------|
|                                                                                              |   |   |   |   |   |   |   |   |   |
|                                                                                              |   | (Dollars                in Thousands) |   |
|                                                                                              |   | at                December 31, 2005 |   | at                December 31, 2004 |   |
| Dollar                                                                                            |   |   | % | % |   |   |   |   | Dollar | % |   |   |   |
| Changes                in Levels of Interest Rates                                                |   |   | Change |   |   | Change |   |   | Change |   |   | Change |   |
|                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase                2.00%                                                                     |   |   | -$102 |   |   | 0.50 | % | $ | 285 |   |   | 1.74 | % |
| Increase                1.00%                                                                     |   |   | -109 |   |   | 0.60 | % |   | 185 |   |   | 1.13 | % |
| Decrease                1.00%                                                                     |   |   | 259 |   |   | 1.40 | % |   | -306 |   |   | -1.87 | % |
| Decrease                2.00%                                                                     |   |   | 518 |   |   | 2.80 | % |   | -542 |   |   | -3.32 | % |

**Capital      Adequacy**

----

| **Table                16 - Capital Ratios**       |   |
|----------------------------------------------------|--------|
| (Dollars                in thousands)              |   |
|                                               |   |   |   |   |   |   |   |
|                                               |   | **As                of December 31,** |   |
|                                               |   |   | **2005** |   |   | **2004** |   |   | **2003** |   |
| **Tier                1 Capital**                  |   |   |   |   |   |   |   |   |   |   |
|                                               |   |   |   |   |   |   |   |   |   |   |
| Total                Tier 1 Capital                |   |   | 43,568 |   |   | 39,486 |   |   | 35,690 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |
| **Total                Capital**                   |   |   |   |   |   |   |   |   |   |   |
| Tier                1 Capital                      |   |   | 43,568 |   |   | 39,486 |   |   | 35,690 |   |
| Allowable                Allowance for Loan Losses |   |   | 3,899 |   |   | 3,373 |   |   | 2,940 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |
| Total                Capital                       |   |   | 47,467 |   |   | 42,859 |   |   | 38,630 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |
| **Risk                Weighted Assets**            |   |   |   |   |   |   |   |   |   |   |
|                                               |   |   |   |   |   |   |   |   |   |   |
| Net                Average Assets                  |   |   | 426,707 |   |   | 378,931 |   |   | 334,653 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |
| Total                Risk Weighted Assets          |   |   | 330,071 |   |   | 271,296 |   |   | 234,441 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |
| **Risk                Based Ratios**               |   |   |   |   |   |   |   |   |   |   |
| Tier                1 Leverage Ratio               |   |   | 10.21 |   |   | 10.42 |   |   | 10.79 |   |
| Tier                1 Risk Based Capital Ratio     |   |   | 13.20 |   |   | 14.55 |   |   | 15.22 |   |
| Total                Risk Based Capital Ratio      |   |   | 14.38 |   |   | 15.80 |   |   | 16.48 |   |

**Off-Balance      Sheet Arrangements**

**There      were no off-balance sheet arrangements existing at December 31,      2005.**

**Tabular      Disclosure of Contractual Obligations**

| Tabular                Disclosure of Contractual Obligations |   |
|--------------------------------------------------------------|--------|
| (in                thousands)                                |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |
|                                                         |   |   |   | Payment                due by period |   |
| Less                than                                     |   |   |   |   |   |   |   |   | 1                to 3 |   |   | 3                to 5 |   |   | More                Than |   |
| Contractual                Obligations                       |   |   | Total |   |   | 1                Year |   |   | Years |   |   | Years |   |   | 5                Years |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-Term                Debt Obligations                    |   | $ | 12,991 |   | $ | 572 |   | $ | 3,233 |   | $ | 2,359 |   | $ | 6,827 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital                Lease Obligations                     |   |   | 19 |   |   | 10 |   |   | 9 |   |   | - |   |   | - |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                Lease Obligations                   |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchase                Obligations                          |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                Long-Term Liabilities                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reflected                on the Registrant's                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                Sheet under GAAP                      |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                        |   | $ | 13,010 |   | $ | 582 |   | $ | 3,242 |   | $ | 2,359 |   | $ | 6,827 |   |

----

**ITEM      7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET      RISK**

risk      exposure and as market conditions dictate, modifies balance sheet      positions.

----

**ITEM      8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA**

**SECURITY        CAPITAL CORPORATION**

**SELECTED        FINANCIAL DATA**

**YEARS        ENDED DECEMBER 31,**

|                                                     |   | 2005                                                   |    | 2004   |   | 2003    |   | 2002   |    | 2001   |   |
|----------------------------------------------------------|--------|--------------------------------------------------------|---------|--------|--------|---------|--------|--------|---------|--------|--------|
|                                                     |   | (In                  thousands, except per share data) |    |
| ***INCOME                  DATA***                       |   |                                                   |    |   |   |    |   |   |    |   |   |
| Interest                  and fees on loans              |   | $                                                      | 20,570  |   | $      | 15,042  |   | $      | 13,584  |   | $      | 13,175 |   | $ | 15,817 |   |
| Interest                  and dividends on securities    |   |                                                   | 3,643   |   |   | 3,826   |   |   | 3,256   |   |   | 3,210 |   |   | 3,506 |   |
| Other                  interest income                   |   |                                                   | 245     |   |   | 224     |   |   | 169     |   |   | 462 |   |   | 511 |   |
| Total                  interest income                   |   |                                                   | 24,458  |   |   | 19,092  |   |   | 17,009  |   |   | 16,847 |   |   | 19,834 |   |
| Interest                  expense                        |   |                                                   | 6,907   |   |   | 4,139   |   |   | 3,955   |   |   | 4,760 |   |   | 7,744 |   |
| Net                  interest income                     |   |                                                   | 17,551  |   |   | 14,953  |   |   | 13,054  |   |   | 12,087 |   |   | 12,090 |   |
| Provision                  for loan losses               |   |                                                   | 1,440   |   |   | 637     |   |   | 546     |   |   | 672 |   |   | 701 |   |
| Net                  interest income after provision for |   |                                                   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |
| loan                  losses                             |   |                                                   | 16,111  |   |   | 14,316  |   |   | 12,508  |   |   | 11,415 |   |   | 11,389 |   |
| Service                  charges on deposit accounts     |   |                                                   | 4,333   |   |   | 3,876   |   |   | 3,758   |   |   | 3,671 |   |   | 3,456 |   |
| Other                  income                            |   |                                                   | 1,818   |   |   | 1,781   |   |   | 1,908   |   |   | 1,484 |   |   | 1,135 |   |
| Total                  noninterest income                |   |                                                   | 6,151   |   |   | 5,657   |   |   | 5,666   |   |   | 5,155 |   |   | 4,591 |   |
| Salaries                  and employee benefits          |   |                                                   | 8,588   |   |   | 7,607   |   |   | 6,649   |   |   | 6,145 |   |   | 5,598 |   |
| Occupancy                  and equipment expense         |   |                                                   | 1,553   |   |   | 1,236   |   |   | 1,311   |   |   | 1,277 |   |   | 1,143 |   |
| Other                  expenses                          |   |                                                   | 2,807   |   |   | 2,567   |   |   | 2,658   |   |   | 2,670 |   |   | 2,814 |   |
| Total                  noninterest expenses              |   |                                                   | 12,948  |   |   | 11,410  |   |   | 10,618  |   |   | 10,092 |   |   | 9,555 |   |
|                                                     |   |                                                   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |
| Income                  before income taxes              |   |                                                   | 9,314   |   |   | 8,563   |   |   | 7,556   |   |   | 6,478 |   |   | 6,425 |   |
| Income                  taxes                            |   |                                                   | 2,707   |   |   | 2,431   |   |   | 2,039   |   |   | 1,666 |   |   | 1,814 |   |
|                                                     |   |                                                   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |
| Net                  income                              |   | $                                                      | 6,607   |   | $      | 6,132   |   | $      | 5,517   |   | $      | 4,812 |   | $ | 4,611 |   |
|                                                     |   |                                                   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |
| ***PER                  SHARE DATA***(1)                 |   |                                                   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |
| Net                  income - basic                      |   | $                                                      | 2.53    |   | $      | 2.35    |   | $      | 2.12    |   | $      | 1.85 |   | $ | 1.77 |   |
| Dividends                                                |   |                                                   | 1.00    |   |   | .95     |   |   | .86     |   |   | .78 |   |   | .70 |   |
| Book                  value                              |   |                                                   | 18.07   |   |   | 16.72   |   |   | 15.69   |   |   | 14.54 |   |   | 13.22 |   |
|                                                     |   |                                                   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |
| ***OTHER                  RATIOS***                      |   |                                                   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |
| Return                  on average assets                |   |                                                   | 1.57    |   |   | 1.65    |   |   | 1.66    |   |   | 1.60 |   |   | 1.62 |   |
| Return                  on equity                        |   |                                                   | 14.16   |   |   | 14.22   |   |   | 13.73   |   |   | 13.45 |   |   | 13.78 |   |
| Loans                  to deposits                       |   |                                                   | 83.98   |   |   | 70.29   |   |   | 70.87   |   |   | 70.60 |   |   | 72.33 |   |
| Loans                  to total assets                   |   |                                                   | 68.36   |   |   | 60.06   |   |   | 60.08   |   |   | 59.42 |   |   | 61.08 |   |
| Equity                  capital to total assets          |   |                                                   | 10.83   |   |   | 11.24   |   |   | 12.01   |   |   | 12.00 |   |   | 12.36 |   |
| Average                  equity to average assets        |   |                                                   | 11.12   |   |   | 11.61   |   |   | 12.12   |   |   | 11.94 |   |   | 11.73 |   |
| Dividend                  payout ratio                   |   |                                                   | 39.52   |   |   | 40.52   |   |   | 40.66   |   |   | 42.04 |   |   | 39.47 |   |
|                                                     |   |                                                   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |
| ***FINANCIAL                  DATA***                    |   |                                                   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |
| Total                  assets                            |   | $                                                      | 435,876 |   | $      | 390,274 |   | $      | 340,253 |   | $      | 315,596 |   | $ | 278,512 |   |
| Net                  loans                               |   |                                                   | 294,046 |   |   | 230,805 |   |   | 200,759 |   |   | 184,060 |   |   | 167,079 |   |
| Total                  deposits                          |   |                                                   | 354,766 |   |   | 333,458 |   |   | 288,442 |   |   | 265,597 |   |   | 235,192 |   |
| Total                  shareholders' equity              |   |                                                   | 47,187  |   |   | 43,870  |   |   | 40,848  |   |   | 37,857 |   |   | 34,429 |   |
|                                                     |   |                                                   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |

| (1)   | Restated                for stock dividends |
|-----------------|---------------------------------------------|

----

**SECURITY        CAPITAL CORPORATION**

**CONSOLIDATED        BALANCE SHEETS**

**DECEMBER        31, 2005 and 2004**

|                                                               |   | 2005                            |    | 2004   |   |
|--------------------------------------------------------------------|--------|---------------------------------|---------|--------|--------|
| ***ASSETS***                                                       |   | (In                  thousands) |    |
|                                                               |   |                            |    |   |   |
| Cash                  and due from banks                           |   | $                               | 19,138  |   | $      | 15,662 |   |
| Interest-bearing                  deposits with banks              |   |                            | 539     |   |   | 426 |   |
| Total                  cash and cash equivalents                   |   |                            | 19,677  |   |   | 16,088 |   |
|                                                               |   |                            |    |   |   |   |   |
| Federal                  funds sold                                |   |                            | -       |   |   | 14,000 |   |
| Certificates                  of deposit with other banks          |   |                            | 392     |   |   | 591 |   |
|                                                               |   |                            |    |   |   |   |   |
| Securities                  available-for-sale                     |   |                            | 78,949  |   |   | 96,669 |   |
| Securities                  held-to-maturity (estimated fair value |   |                            |    |   |   |   |   |
| of                  $2,063 in 2005 and $2,052 in 2004)             |   |                            | 2,047   |   |   | 2,050 |   |
| Securities,                  other                                 |   |                            | 1,456   |   |   | 1,259 |   |
| Total                  securities                                  |   |                            | 82,452  |   |   | 99,978 |   |
| Loans,                  less allowance for loan losses of          |   |                            |    |   |   |   |   |
| $3,899                  in 2005 and $3,598 in 2004                 |   |                            | 294,046 |   |   | 230,805 |   |
| Interest                  receivable                               |   |                            | 4,015   |   |   | 3,138 |   |
| Premises                  and equipment                            |   |                            | 18,706  |   |   | 14,959 |   |
| Intangible                  assets                                 |   |                            | 3,874   |   |   | 3,874 |   |
| Cash                  surrender value of life insurance            |   |                            | 5,670   |   |   | 3,476 |   |
| Customers'                  liability on acceptances               |   |                            | 3,205   |   |   | 1,762 |   |
| Other                  assets                                      |   |                            | 3,839   |   |   | 1,603 |   |
| Total                  Assets                                      |   | $                               | 435,876 |   | $      | 390,274 |   |
|                                                               |   |                            |    |   |   |   |   |
| ***LIABILITIES                  AND SHAREHOLDERS' EQUITY***        |   |                            |    |   |   |   |   |
|                                                               |   |                            |    |   |   |   |   |
| Liabilities:                                                       |   |                            |    |   |   |   |   |
| Noninterest-bearing                  deposits                      |   | $                               | 63,082  |   | $      | 53,502 |   |
| Interest-bearing                  deposits                         |   |                            | 291,684 |   |   | 279,956 |   |
| Total                  deposits                                    |   |                            | 354,766 |   |   | 333,458 |   |
| Interest                  payable                                  |   |                            | 1,038   |   |   | 595 |   |
| Acceptances                  outstanding                           |   |                            | 3,205   |   |   | 1,762 |   |
| Federal                  funds purchased                           |   |                            | 15,000  |   |   | - |   |
| Borrowed                  funds                                    |   |                            | 14,096  |   |   | 10,131 |   |
| Other                  liabilities                                 |   |                            | 584     |   |   | 458 |   |
| Total                  liabilities                                 |   |                            | 388,689 |   |   | 346,404 |   |
| Shareholders'                  equity:                             |   |                            |    |   |   |   |   |
| Common                  stock - $5 par value, 5,000,000 shares     |   |                            |    |   |   |   |   |
| authorized,                  2,622,878 shares and 2,498,504        |   |                            |    |   |   |   |   |
| shares                  issued in 2005 and 2004, respectively      |   |                            | 13,114  |   |   | 12,493 |   |
| Surplus                                                            |   |                            | 31,380  |   |   | 27,826 |   |
| Retainedearnings                                                   |   |                            | 3,003   |   |   | 3,106 |   |
| Accumulated                  other comprehensive income            |   |                            | (255    | )      |   | 510 |   |
| Treasury                  stock, at par, 11,058 shares and         |   |                            |    |   |   |   |   |
| 13,087                  shares in 2005 and 2004, respectively      |   |                            | (55     | )      |   | (65 | ) |
| Total                  shareholders' equity                        |   |                            | 47,187  |   |   | 43,870 |   |
| Total                  Liabilities and Shareholders' Equity        |   | $                               | 435,876 |   | $      | 390,274 |   |
|                                                               |   |                            |    |   |   |   |   |

----

**SECURITY        CAPITAL CORPORATION**

**CONSOLIDATED        STATEMENTS OF INCOME**

**YEARS        ENDED DECEMBER 31, 2005, 2004 AND 2003**

|                                                                 |   | 2005                                                   |   | 2004   |   | 2003   |   |
|----------------------------------------------------------------------|--------|--------------------------------------------------------|--------|--------|--------|--------|--------|
|                                                                 |   | (In                  thousands, except per share data) |   |
| ***INTEREST                  INCOME***                               |   |                                                   |   |   |   |   |   |
| Interest                  and fees on loans                          |   | $                                                      | 20,570 |   | $      | 15,042 |   | $ | 13,584 |   |
| Interest                  and dividends on securities                |   |                                                   |   |   |   |   |   |   |   |   |
| Taxable                                                              |   |                                                   | 1,705  |   |   | 1,966  |   |   | 1,597 |   |
| Tax-exempt                                                           |   |                                                   | 1,938  |   |   | 1,860  |   |   | 1,659 |   |
| Other                                                                |   |                                                   | 245    |   |   | 224    |   |   | 169 |   |
| Total                  interest income                               |   |                                                   | 24,458 |   |   | 19,092 |   |   | 17,009 |   |
|                                                                 |   |                                                   |   |   |   |   |   |   |   |   |
| ***INTEREST                  EXPENSE***                              |   |                                                   |   |   |   |   |   |   |   |   |
| Interest                  on time deposits of $100,000 or more       |   |                                                   | 1,452  |   |   | 850    |   |   | 936 |   |
| Interest                  on other deposits                          |   |                                                   | 4,712  |   |   | 2,940  |   |   | 2,675 |   |
| Interest                  on borrowed funds                          |   |                                                   | 743    |   |   | 349    |   |   | 344 |   |
| Total                  interest expense                              |   |                                                   | 6,907  |   |   | 4,139  |   |   | 3,955 |   |
|                                                                 |   |                                                   |   |   |   |   |   |   |   |   |
| Net                  interest income                                 |   |                                                   | 17,551 |   |   | 14,953 |   |   | 13,054 |   |
|                                                                 |   |                                                   |   |   |   |   |   |   |   |   |
| Provision                  for loan losses                           |   |                                                   | 1,440  |   |   | 637    |   |   | 546 |   |
| Net                  interest income after provision for loan losses |   |                                                   | 16,111 |   |   | 14,316 |   |   | 12,508 |   |
|                                                                 |   |                                                   |   |   |   |   |   |   |   |   |
| ***OTHER                  INCOME***                                  |   |                                                   |   |   |   |   |   |   |   |   |
| Service                  charges on deposit accounts                 |   |                                                   | 4,333  |   |   | 3,876  |   |   | 3,758 |   |
| Other                  service charges and fees                      |   |                                                   | 388    |   |   | 325    |   |   | 299 |   |
| Trust                  Department income                             |   |                                                   | 978    |   |   | 911    |   |   | 876 |   |
| Securities                  gains (losses), net                      |   |                                                   | (52    | )      |   | (12    | )      |   | 1 |   |
| Gains                  (losses) on sale of other assets, net         |   |                                                   | 67     |   |   | 224    |   |   | 423 |   |
| Other                                                                |   |                                                   | 437    |   |   | 333    |   |   | 309 |   |
| Total                  other income                                  |   |                                                   | 6,151  |   |   | 5,657  |   |   | 5,666 |   |
|                                                                 |   |                                                   |   |   |   |   |   |   |   |   |
| ***OTHER                  EXPENSE***                                 |   |                                                   |   |   |   |   |   |   |   |   |
| Salaries                  and employee benefits                      |   |                                                   | 8,588  |   |   | 7,607  |   |   | 6,649 |   |
| Net                  occupancy expense                               |   |                                                   | 801    |   |   | 713    |   |   | 766 |   |
| Furniture                  and equipment expense                     |   |                                                   | 752    |   |   | 523    |   |   | 545 |   |
| Printing,                  stationery, and supplies                  |   |                                                   | 250    |   |   | 194    |   |   | 251 |   |
| Data                  processing                                     |   |                                                   | 301    |   |   | 280    |   |   | 254 |   |
| Directors'                  fees                                     |   |                                                   | 259    |   |   | 247    |   |   | 234 |   |
| Professional                  fees                                   |   |                                                   | 143    |   |   | 183    |   |   | 232 |   |
| Other                                                                |   |                                                   | 1,854  |   |   | 1,663  |   |   | 1,687 |   |
| Total                  other expense                                 |   |                                                   | 12,948 |   |   | 11,410 |   |   | 10,618 |   |
|                                                                 |   |                                                   |   |   |   |   |   |   |   |   |
| Income                  before income taxes                          |   |                                                   | 9,314  |   |   | 8,563  |   |   | 7,556 |   |
| Income                  taxes                                        |   |                                                   | 2,707  |   |   | 2,431  |   |   | 2,039 |   |
|                                                                 |   |                                                   |   |   |   |   |   |   |   |   |
| Net                  income                                          |   | $                                                      | 6,607  |   | $      | 6,132  |   | $ | 5,517 |   |
|                                                                 |   |                                                   |   |   |   |   |   |   |   |   |
| Basic                  net income per share                          |   | $                                                      | 2.53   |   | $      | 2.35   |   | $ | 2.12 |   |
|                                                                 |   |                                                   |   |   |   |   |   |   |   |   |
|                                                                 |   |                                                   |   |   |   |   |   |   |   |   |

----

**SECURITY        CAPITAL CORPORATION**

**CONSOLIDATED        STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY**

**YEARS        ENDED DECEMBER 31, 2005, 2004 AND 2003**

|                                                       |   |          |   |   |   |    |   |     |   |     |   | Accumulated   |   |   |   |
|------------------------------------------------------------|--------|---------------|--------|--------|--------|---------|--------|----------|--------|----------|--------|---------------|--------|--------|--------|
|                                                       |   |          |   |   |   |    |   |     |   |     |   | Other         |   |   |   |
|                                                       |   | Comprehensive |   | Common |   |    |   | Retained |   | Treasury |   | Comprehensive |   |   |   |
|                                                       |   | Income        |   | Stock  |   | Surplus |   | Earnings |   | Stock    |   | Income        |   | Total  |   |
|                                                       |   |          |   |   |   |    |   |     |   |     |   |          |   |   |   |
| Balance,                  January 1, 2003                  |   |          |   |   | $      | 11,338  |   | $        | 22,311 |     | $      | 2,681         |   | $      | (100   | ) | $ | 1,627 |   | $ | 37,857 |   |
|                                                       |   |          |   |   |   |    |   |     |   |     |   |          |   |   |   |   |   |   |   |   |   |   |
| Comprehensive                  income:                     |   |          |   |   |   |    |   |     |   |     |   |          |   |   |   |   |   |   |   |   |   |   |
| Net                  income for 2003                       |   | $             | 5,517  |   |   | -       |   |     | -      |     |   | 5,517         |   |   | -      |   |   | - |   |   | 5,517 |   |
| Net                  change in unrealized gain (loss) on   |   |          |   |   |   |    |   |     |   |     |   |          |   |   |   |   |   |   |   |   |   |   |
| securities                  available-for-sale, net of tax |   |          | (342   | )      |   | -       |   |     | -      |     |   | -             |   |   | -      |   |   | (342 | ) |   | (342 | ) |
| Comprehensive                  income                      |   | $             | 5,175  |   |   |    |   |     |   |     |   |          |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |          |   |   |   |    |   |     |   |     |   |          |   |   |   |   |   |   |   |   |   |   |
| Cash                  dividends paid                       |   |          |   |   |   | -       |   |     | -      |     |   | (2,243        | )      |   | -      |   |   | - |   |   | (2,243 | ) |
| 5%                  stock dividend                         |   |          |   |   |   | 562     |   |     | 2,502  |     |   | (3,064        | )      |   | -      |   |   | - |   |   | - |   |
| Purchase                  of fractional shares             |   |          |   |   |   | -       |   |     | (8     | )        |   | -             |   |   | (2     | ) |   | - |   |   | (10 | ) |
| Reissuance                  of treasury stock              |   |          |   |   |   | -       |   |     | 57     |     |   | -             |   |   | 12     |   |   | - |   |   | 69 |   |
|                                                       |   |          |   |   |   |    |   |     |   |     |   |          |   |   |   |   |   |   |   |   |   |   |
| Balance,                  December 31, 2003                |   |          |   |   |   | 11,900  |   |     | 24,862 |     |   | 2,891         |   |   | (90    | ) |   | 1,285 |   |   | 40,848 |   |
|                                                       |   |          |   |   |   |    |   |     |   |     |   |          |   |   |   |   |   |   |   |   |   |   |
| Comprehensive                  income:                     |   |          |   |   |   |    |   |     |   |     |   |          |   |   |   |   |   |   |   |   |   |   |
| Net                  income for 2004                       |   | $             | 6,132  |   |   | -       |   |     | -      |     |   | 6,132         |   |   | -      |   |   | - |   |   | 6,132 |   |
| Net                  change in unrealized gain (loss) on   |   |          |   |   |   |    |   |     |   |     |   |          |   |   |   |   |   |   |   |   |   |   |
| securities                  available-for-sale, net of tax |   |          | (775   | )      |   | -       |   |     | -      |     |   | -             |   |   | -      |   |   | (775 | ) |   | (775 | ) |
| Comprehensive                  income                      |   | $             | 5,357  |   |   |    |   |     |   |     |   |          |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |          |   |   |   |    |   |     |   |     |   |          |   |   |   |   |   |   |   |   |   |   |
| Cash                  dividends paid                       |   |          |   |   |   | -       |   |     | -      |     |   | (2,485        | )      |   | -      |   |   | - |   |   | (2,485 | ) |
| 5%                  stock dividend                         |   |          |   |   |   | 593     |   |     | 2,839  |     |   | (3,432        | )      |   | -      |   |   | - |   |   | - |   |
| Purchase                  of fractional shares             |   |          |   |   |   | -       |   |     | (10    | )        |   | -             |   |   | (2     | ) |   | - |   |   | (12 | ) |
| Purchase                  of treasury stock                |   |          |   |   |   | -       |   |     | (5     | )        |   | -             |   |   | (1     | ) |   | (6 | ) |   |   |   |
| Reissuance                  of treasury stock              |   |          |   |   |   | -       |   |     | 140    |     |   | -             |   |   | 28     |   |   | - |   |   | 168 |   |
|                                                       |   |          |   |   |   |    |   |     |   |     |   |          |   |   |   |   |   |   |   |   |   |   |
| Balance,                  December 31, 2004                |   |          |   |   | $      | 12,493  |   | $        | 27,826 |     | $      | 3,106         |   | $      | (65    | ) | $ | 510 |   | $ | 43,870 |   |
|                                                       |   |          |   |   |   |    |   |     |   |     |   |          |   |   |   |   |   |   |   |   |   |   |
| Comprehensive                  income:                     |   |          |   |   |   |    |   |     |   |     |   |          |   |   |   |   |   |   |   |   |   |   |
| Net                  income for 2005                       |   | $             | 6,607  |   |   | -       |   |     | -      |     |   | 6,607         |   |   | -      |   |   | - |   |   | 6,607 |   |
| Net                  change in unrealized gain (loss) on   |   |          |   |   |   |    |   |     |   |     |   |          |   |   |   |   |   |   |   |   |   |   |
| securities                  available-for-sale, net of tax |   |          | (765   | )      |   | -       |   |     | -      |     |   | -             |   |   | -      |   |   | (765 | ) |   | (765 | ) |
| Comprehensive                  income                      |   | $             | 5,842  |   |   |    |   |     |   |     |   |          |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |          |   |   |   |    |   |     |   |     |   |          |   |   |   |   |   |   |   |   |   |   |
| Cash                  dividends paid                       |   |          |   |   |   | -       |   |     | -      |     |   | (2,612        | )      |   | -      |   |   | - |   |   | (2,612 | ) |
| 5%                  stock dividend                         |   |          |   |   |   | 621     |   |     | 3,477  |     |   | (4,098        | )      |   | -      |   |   | - |   |   | - |   |
| Purchase                  of fractional shares             |   |          |   |   |   | -       |   |     | (13    | )        |   | -             |   |   | (2     | ) |   | - |   |   | (15 | ) |
| Reissuance                  of treasury stock              |   |          |   |   |   | -       |   |     | 90     |     |   | -             |   |   | 12     |   |   | - |   |   | 102 |   |
|                                                       |   |          |   |   |   |    |   |     |   |     |   |          |   |   |   |   |   |   |   |   |   |   |
| Balance,                  December 31, 2005                |   |          |   |   | $      | 13,114  |   | $        | 31,380 |     | $      | 3,003         |   | $      | (55    | ) | $ | (255 | ) | $ | 47,187 |   |

----

**SECURITY        CAPITAL CORPORATION**

**CONSOLIDATED        STATEMENTS OF CASH FLOWS**

**YEARS        ENDED DECEMBER 31, 2005, 2004 AND 2003**

|                                                                  |   | 2005   |    | 2004                            |   | 2003    |   |
|-----------------------------------------------------------------------|--------|--------|---------|---------------------------------|--------|---------|--------|
|                                                                  |   |   |    | (In                  thousands) |   |    |   |
| ***CASH                  FLOWS FROM OPERATING ACTIVITIES***           |   |   |    |                            |   |    |   |
| Net                  income                                           |   | $      | 6,607   |                            | $      | 6,132   |   | $ | 5,517 |   |
| Adjustments                  to reconcile net income to net cash      |   |   |    |                            |   |    |   |   |   |   |
| provided                  by operating activities:                    |   |   |    |                            |   |    |   |   |   |   |
| Provision                  for loan losses                            |   |   | 1,440   |                            |   | 637     |   |   | 546 |   |
| Amortization                  of premiums and discounts on            |   |   |    |                            |   |    |   |   |   |   |
| securities,                  net                                      |   |   | 601     |                            |   | 814     |   |   | 1,408 |   |
| Depreciation                  and amortization                        |   |   | 880     |                            |   | 688     |   |   | 710 |   |
| Deferred                  income taxes                                |   |   | (24     | )                               |   | 242     |   |   | 37 |   |
| FHLB                  stock dividend                                  |   |   | (38     | )                               |   | (17     | )      |   | (23 | ) |
| (Gain)                  loss on sale of securities, net               |   |   | 52      |                            |   | 12      |   |   | (1 | ) |
| (Gain)                  loss on sale of other assets, net             |   |   | (67     | )                               |   | (224    | )      |   | (423 | ) |
| Changes                  in:                                          |   |   |    |                            |   |    |   |   |   |   |
| Interest                  receivable                                  |   |   | (877    | )                               |   | (724    | )      |   | 285 |   |
| Cash                  value of life insurance, net                    |   |   | (194    | )                               |   | (118    | )      |   | (158 | ) |
| Other                  assets                                         |   |   | (4,550  | )                               |   | (2,271  | )      |   | (761 | ) |
| Interest                  payable                                     |   |   | 443     |                            |   | 77      |   |   | (196 | ) |
| Other                  liabilities                                    |   |   | 1,569   |                            |   | 1,158   |   |   | (54 | ) |
|                                                                  |   |   |    |                            |   |    |   |   |   |   |
| Net                  cash provided by operating activities            |   |   | 5,842   |                            |   | 6,406   |   |   | 6,887 |   |
|                                                                  |   |   |    |                            |   |    |   |   |   |   |
| ***CASH                  FLOWS FROM INVESTING ACTIVITIES***           |   |   |    |                            |   |    |   |   |   |   |
| Purchase                  of securities available-for-sale            |   |   | (19,284 | )                               |   | (58,568 | )      |   | (50,482 | ) |
| Proceeds                  of maturities and calls of securities       |   |   |    |                            |   |    |   |   |   |   |
| available-for-sale                                                    |   |   | 28,386  |                            |   | 24,481  |   |   | 47,090 |   |
| Proceeds                  from sales of securities available for sale |   |   | 6,746   |                            |   | 11,680  |   |   | - |   |
| Purchase                  of securities held to maturity              |   |   | -       |                            |   | -       |   |   | (2,054 | ) |
| Purchase                  of other securities                         |   |   | (158    | )                               |   | (250    | )      |   | (230 | ) |
| Additions                  to premises and equipment                  |   |   | (4,545  | )                               |   | (2,900  | )      |   | (451 | ) |
| Proceeds                  of sale of other assets                     |   |   | 284     |                            |   | 550     |   |   | 898 |   |
| Purchase                  of bank-owned life insurance                |   |   | (2,000  | )                               |   | -       |   |   | - |   |
| Changes                  in:                                          |   |   |    |                            |   |    |   |   |   |   |
| Loans                                                                 |   |   | (63,629 | )                               |   | (30,318 | )      |   | (16,918 | ) |
| Federal                  funds sold                                   |   |   | 14,000  |                            |   | 6,380   |   |   | (4,620 | ) |
| Certificates                  of deposits with other banks            |   |   | 199     |                            |   | (99     | )      |   | 1,359 |   |
|                                                                  |   |   |    |                            |   |    |   |   |   |   |
| Net                  cash used in investing activities                |   |   | (40,001 | )                               |   | (49,044 | )      |   | (25,408 | ) |
|                                                                  |   |   |    |                            |   |    |   |   |   |   |
|                                                                  |   |   |    |                            |   |    |   |   |   |   |

----

**                              SECURITY        CAPITAL        CORPORATION**

**                CONSOLIDATED        STATEMENTS OF CASH FLOWS**

**                       YEARS ENDED DECEMBER 31, 2005, 2004 AND 2003**

| ***CASH                  FLOWS FROM FINANCING ACTIVITIES***              |   |   |   |   |   |   |   |
|--------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
| Dividends                  paid on common stock                          |   | $      | (2,612 | )      | $      | (2,485 | )      | $ | (2,243 | ) |
| Purchase                  of treasury stock                              |   |   | -      |   |   | (6     | )      |   | - |   |
| Reissuance                  of treasury stock                            |   |   | 102    |   |   | 168    |   |   | 68 |   |
| Purchase                  of fractional shares                           |   |   | (15    | )      |   | (12    | )      |   | (10 | ) |
| Repayment                  of debt                                       |   |   | (8,948 | )      |   | (4,676 | )      |   | (4,030 | ) |
| Proceeds                  from issuance of debt                          |   |   | 12,913 |   |   | 5,640  |   |   | 3,268 |   |
| Changes                  in:                                             |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                 |   |   | 21,308 |   |   | 45,015 |   |   | 22,845 |   |
| Federal                  funds purchased                                 |   |   | 15,000 |   |   | -      |   |   | - |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |
| Net                  cash provided by financing activities               |   |   | 37,748 |   |   | 43,644 |   |   | 19,898 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |
| Net                  increase in cash and cash equivalents               |   |   | 3,589  |   |   | 1,006  |   |   | 1,377 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |
| Cash                  and cash equivalents at beginning of year          |   |   | 16,088 |   |   | 15,082 |   |   | 13,705 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |
| Cash                  and cash equivalents at end of year                |   | $      | 19,677 |   | $      | 16,088 |   | $ | 15,082 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |
| ***Supplemental                  Disclosures of Cash Flow Information*** |   |   |   |   |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |
| Cash                  paid during the year for:                          |   |   |   |   |   |   |   |   |   |   |
| Interest                                                                 |   | $      | 6,464  |   | $      | 4,061  |   | $ | 4,150 |   |
| Income                  taxes                                            |   |   | 2,910  |   |   | 2,232  |   |   | 2,002 |   |
| Noncash                  activities:                                     |   |   |   |   |   |   |   |   |   |   |
| Transfers                  of loans to other real estate and             |   |   |   |   |   |   |   |   |   |   |
| repossessed                  inventory                                   |   |   | 1,052  |   |   | 228    |   |   | 228 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |

----

**SECURITY        CAPITAL CORPORATION**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

***NOTE        A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES***

***1.***
***Consolidation***

***2.***
***Nature        of Operations***

***3.***
***Estimates***

----

**SECURITY        CAPITAL CORPORATION**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

***NOTE        A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES***

***3.***
***Estimates***

***4.***
***Securities***

*Securities        Available-for-Sale*

*Securities        Held-to-Maturity*

*Trading        Account Securities*

----

**SECURITY        CAPITAL CORPORATION**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

***NOTE        A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES***

***4.***
***Securities***

*Other        Securities*

***5.***
***Loans***

***6.***
***Allowance        for Loan Losses***

----

**SECURITY        CAPITAL CORPORATION**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

***NOTE        A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES***

***6.***
***Allowance        for Loan Losses***

***7.***
***Premises        and Equipment***

----

**SECURITY        CAPITAL CORPORATION**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

***NOTE        A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES***

***8.***
***Bank        Owned Life Insurance***

***9.***
***Other        Real Estate***

***10.***
***Income        Taxes***

***11.***
***Net        Income per Share***

----

**SECURITY        CAPITAL CORPORATION**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

***NOTE        A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES***

***11.***
***Net        Income per Share***

|                                                        |   | 2005                                                   |   | 2004   |   | 2003   |   |
|-------------------------------------------------------------|--------|--------------------------------------------------------|--------|--------|--------|--------|--------|
|                                                        |   | (In                  thousands, except per share data) |   |
| ***Basic                  Net Income Per Share***           |   |                                                   |   |   |   |   |   |
| Weighted                  average common shares outstanding |   |                                                   | 2,611  |   |   | 2,609  |   |   | 2,604 |   |
| Net                  income                                 |   | $                                                      | 6,607  |   | $      | 6,132  |   | $ | 5,517 |   |
| Basic                  net income per share                 |   | $                                                      | 2.53   |   | $      | 2.35   |   | $ | 2.12 |   |

***12.***
***Statement        of Cash Flows***

***13.***
***Advertising***

***14.***
***Goodwill***

***15.***
***Off-Balance        Sheet Financial Instruments***

----

**SECURITY        CAPITAL CORPORATION**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

***NOTE        A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES***

***16.***
***Trust        Assets***

***17.***
***Business        Segments***

***18.***
***Reclassifications***

***19.***
***Accounting        Pronouncements***

* *

----

**SECURITY        CAPITAL CORPORATION**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

***NOTE        A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES***

***19.***
***Accounting        Pronouncements***

* *

***NOTE        B - RESERVE REQUIREMENTS***

----

**SECURITY        CAPITAL CORPORATION**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

***NOTE        C - SECURITIES***

|                                            |   |                            |   | Gross      |   | Gross      |   |                        |   |
|-------------------------------------------------|--------|---------------------------------|--------|------------|--------|------------|--------|-----------------------------|--------|
|                                            |   | Amortized                       |   | Unrealized |   | Unrealized |   | Estimated                   |   |
|                                            |   | Cost                            |   | Gains      |   | Losses     |   | Fair                  Value |   |
| *December                  31, 2005:*           |   | (In                  thousands) |   |
| Securities                  available-for-sale: |   |                            |   |       |   |       |   |                        |   |   |   |   |   |
| U.                  S. Government agencies      |   | $                               | 11,491 |       | $      | -          |   | $                           | 316    |   | $ | 11,175 |   |
| Mortgage-backed                  securities     |   |                            | 21,254 |       |   | 42         |   |                        | 426    |   |   | 20,870 |   |
| State                  and local political      |   |                            |   |       |   |       |   |                        |   |   |   |   |   |
| subdivisions                                    |   |                            | 46,611 |       |   | 708        |   |                        | 415    |   |   | 46,904 |   |
|                                            |   |                            |   |       |   |       |   |                        |   |   |   |   |   |
|                                            |   | $                               | 79,356 |       | $      | 750        |   | $                           | 1,157  |   | $ | 78,949 |   |
| Securities                  held-to-maturity:   |   |                            |   |       |   |       |   |                        |   |   |   |   |   |
| State                  and local political      |   |                            |   |       |   |       |   |                        |   |   |   |   |   |
| subdivisions                                    |   | $                               | 2,047  |       | $      | 41         |   | $                           | 25     |   | $ | 2,063 |   |
|                                            |   |                            |   |       |   |       |   |                        |   |   |   |   |   |
|                                            |   |                            |   |       |   |       |   |                        |   |   |   |   |   |
| *December                  31, 2004:*           |   |                            |        |       |   |       |   |                        |   |   |   |   |   |
| Securities                  available-for-sale: |   |                            |   |       |   |       |   |                        |   |   |   |   |   |
| U.                  S. Government agencies      |   |                            | 23,557 |       |   | 23         |   |                        | 264    |   |   | 23,316 |   |
| Mortgage-backed                  securities     |   |                            | 22,371 |       |   | 192        |   |                        | 144    |   |   | 22,419 |   |
| State                  and local political      |   |                            |   |       |   |       |   |                        |   |   |   |   |   |
| subdivisions                                    |   |                            | 49,927 |       |   | 1,173      |   |                        | 166    |   |   | 50,934 |   |
|                                            |   |                            |   |       |   |       |   |                        |   |   |   |   |   |
|                                            |   | $                               | 95,855 |       | $      | 1,388      |   | $                           | 574    |   | $ | 96,669 |   |
| Securities                  held-to-maturity:   |   |                            |   |       |   |       |   |                        |   |   |   |   |   |
| State                  and local political      |   |                            |   |       |   |       |   |                        |   |   |   |   |   |
| subdivisions                                    |   | $                               | 2,050  |       | $      | 17         |   | $                           | 15     |   | $ | 2,052 |   |
|                                            |   |                            |   |       |   |       |   |                        |   |   |   |   |   |

----

**SECURITY        CAPITAL CORPORATION**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

***NOTE        C - SECURITIES***

|                                                    |   | Available-For-Sale              |   | Held-to-Maturity            |   |
|---------------------------------------------------------|--------|---------------------------------|--------|-----------------------------|--------|
|                                                    |   | Amortized                       |   | Estimated                   |   | Amortized |   | Estimated |   |
|                                                    |   | Cost                            |   | Fair                  Value |   | Cost |   | Fair                  Value |   |
|                                                    |   | (In                  thousands) |   |
|                                                    |   |                            |   |                        |   |   |   |   |   |
| Due                  in one year or less                |   | $                               | 8,283  |                        | $      | 8,270 |   | $ | - |   | $ | - |   |
| Due                  after one year through five years  |   |                            | 18,410 |                        |   | 18,276 |   |   | 407 |   |   | 382 |   |
| Due                  after five years through ten years |   |                            | 12,829 |                        |   | 12,795 |   |   | - |   |   | - |   |
| Due                  after 10 years                     |   |                            | 18,580 |                        |   | 18,738 |   |   | 1,640 |   |   | 1,681 |   |
| Mortgage-backed                  securities             |   |                            | 21,254 |                        |   | 20,870 |   |   | - |   |   | - |   |
|                                                    |   | $                               | 79,356 |                        | $      | 78,949 |   | $ | 2,047 |   | $ | 2,063 |   |

|                                       |   | Losses                  < 12 Months |   | Losses                  12 Months or > |   | Total  |   |
|--------------------------------------------|--------|----------------------------------------|--------|-------------------------------------------|--------|--------|--------|
|                                       |   | (In                  thousands)        |   |
|                                       |   |                                   |   | Gross                                     |   |   |   | Gross |   |   |   | Gross |   |
|                                       |   | Fair                                   |   | Unrealized                                |   | Fair   |   | Unrealized |   | Fair |   | Unrealized |   |
|                                       |   | Value                                  |   | Losses                                    |   | Value  |   | Losses |   | Value |   | Losses |   |
| *2005*                                     |   |                                   |   |                                      |   |   |   |   |   |   |   |   |   |
| U.                  S. Government          |   |                                   |   |                                      |   |   |   |   |   |   |   |   |   |
| agencies                                   |   | $                                      | 3,915  |                                      | $      | 76     |   | $ | 7,260 |   | $ | 240 |   | $ | 11,175 |   | $ | 316 |   |
| Mortgage-backed                            |   |                                   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| securities                                 |   |                                   | 11,439 |                                      |   | 274    |   |   | 7,432 |   |   | 152 |   |   | 18,871 |   |   | 426 |   |
| State                  and local political |   |                                   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| subdivisions                               |   |                                   | 14,474 |                                      |   | 230    |   |   | 9,242 |   |   | 185 |   |   | 23,716 |   |   | 415 |   |
|                                       |   |                                   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   | $                                      | 29,828 |                                      | $      | 580    |   | $ | 23,934 |   | $ | 577 |   | $ | 53,762 |   | $ | 1,157 |   |

----

**SECURITY        CAPITAL CORPORATION**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

***NOTE        C - SECURITIES***

|                                       |   | Losses                  < 12 Months |   | Losses                  12 Months or > |   | Total  |   |
|--------------------------------------------|--------|----------------------------------------|--------|-------------------------------------------|--------|--------|--------|
|                                       |   | (In                  thousands)        |   |
|                                       |   |                                   |   | Gross                                     |   |   |   | Gross |   |   |   | Gross |   |
|                                       |   | Fair                                   |   | Unrealized                                |   | Fair   |   | Unrealized |   | Fair |   | Unrealized |   |
|                                       |   | Value                                  |   | Losses                                    |   | Value  |   | Losses |   | Value |   | Losses |   |
| *2004*                                     |   |                                   |   |                                      |   |   |   |   |   |   |   |   |   |
| U.                  S. Government          |   |                                   |   |                                      |   |   |   |   |   |   |   |   |   |
| agencies                                   |   | $                                      | 15,332 |                                      | $      | 264    |   | $ | - |   | $ | - |   | $ | 15,332 |   | $ | 264 |   |
| Mortgage-backed                            |   |                                   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| securities                                 |   |                                   | 12,203 |                                      |   | 140    |   |   | 1,133 |   |   | 4 |   |   | 13,336 |   |   | 144 |   |
| State                  and local political |   |                                   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Subdivisions                               |   |                                   | 15,530 |                                      |   | 163    |   |   | 303 |   |   | 3 |   |   | 15,833 |   |   | 166 |   |
|                                       |   |                                   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   | $                                      | 43,065 |                                      | $      | 567    |   | $ | 1,436 |   | $ | 7 |   | $ | 44,501 |   | $ | 574 |   |

|                                               |   | Losses                  < 12 Months |   | Losses                  12 Months or > |   | Total  |   |
|----------------------------------------------------|--------|----------------------------------------|--------|-------------------------------------------|--------|--------|--------|
|                                               |   | (In                  thousands)        |   |
|                                               |   | Gross                                  |   | Gross                                     |   | Gross  |   |   |   |   |   |   |   |
|                                               |   | Fair                                   |   | Unrealized                                |   | Fair   |   | Unrealized |   | Fair |   | Unrealized |   |
|                                               |   | Value                                  |   | Losses                                    |   | Value  |   | Losses |   | Value |   | Losses |   |
| *2005*                                             |   |                                   |   |                                      |   |   |   |   |   |   |   |   |   |
| State                  and local political         |   |                                   |   |                                      |   |   |   |   |   |   |   |   |   |
| subdivisions                                       |   | $                                      | -      |                                      | $      | -      |   | $ | 382 |   | $ | 25 |   | $ | 382 |   | $ | 25 |   |
|                                               |   |                                   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                               |   |                                   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| *2004*                                             |   |                                   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| * *State                  and local political |   |                                   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| subdivisions                                       |   | $                                      | 201    |                                      | $      | 6      |   | $ | 194 |   | $ | 9 |   | $ | 395 |   | $ | 15 |   |

----

**SECURITY        CAPITAL CORPORATION**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

***NOTE        D - LOANS***

|                                                        |   | December                  31,   |    |
|-------------------------------------------------------------|--------|---------------------------------|---------|
|                                                        |   | 2005                            |    | 2004 |   |
|                                                        |   | (In                  thousands) |    |
|                                                        |   |                            |    |   |   |
| Commercial,                  financial and agricultural     |   | $                               | 30,826  |   | $ | 28,077 |   |
| Real                  estate - construction and development |   |                            | 86,404  |   |   | 49,189 |   |
| Real                  estate - mortgage                     |   |                            | 149,602 |   |   | 124,911 |   |
| Installment                  loans to individuals           |   |                            | 28,833  |   |   | 29,898 |   |
| Other                                                       |   |                            | 2,280   |   |   | 2,328 |   |
|                                                        |   |                            | 297,945 |   |   | 234,403 |   |
| Less                  allowance for loan losses             |   |                            | (3,899  | ) |   | (3,598 | ) |
|                                                        |   | $                               | 294,046 |   | $ | 230,805 |   |

|                                                    |   | Years                  Ended December 31, |   |
|---------------------------------------------------------|--------|-------------------------------------------|--------|
|                                                    |   | 2005                                      |   | 2004 |   | 2003 |   |
|                                                    |   | (In                  thousands)           |   |
|                                                    |   |                                      |   |   |   |   |   |
| Balance                  at beginning of year           |   | $                                         | 3,598  |   | $ | 3,665 |   | $ | 3,455 |   |
| Charge-offs                  during year                |   |                                      | (1,617 | ) |   | (1,128 | ) |   | (710 | ) |
| Recoveries                  on loans previously         |   |                                      |   |   |   |   |   |   |   |   |
| charged                  off                            |   |                                      | 478    |   |   | 424 |   |   | 374 |   |
| Provision                  charged to operating expense |   |                                      | 1,440  |   |   | 637 |   |   | 546 |   |
|                                                    |   |                                      |   |   |   |   |   |   |   |   |
| Balance                  at end of year                 |   | $                                         | 3,899  |   | $ | 3,598 |   | $ | 3,665 |   |
|                                                    |   |                                      |   |   |   |   |   |   |   |   |

----

**SECURITY        CAPITAL CORPORATION**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

***NOTE        E - PREMISES AND EQUIPMENT***

|                                                            |   | Estimated                  Useful |   | December                  31, |   |
|-----------------------------------------------------------------|--------|-----------------------------------|--------|-------------------------------|--------|
|                                                            |   | Life                  in Years    |   | 2005                          |   | 2004 |   |
|                                                            |   | (In                  thousands)   |   |
|                                                            |   |                              |   |                          |   |   |   |
| Land                                                            |   |                              | -      |                          | $      | 4,795 |   | $ | 3,471 |   |
| Buildings                  and improvements                     |   |                              | 10-40  |                          |   | 14,132 |   |   | 11,981 |   |
| Furniture                  and equipment                        |   |                              | 3-10   |                          |   | 6,055 |   |   | 5,033 |   |
|                                                            |   |                              |   |                          |   | 24,982 |   |   | 20,485 |   |
| Less                  accumulated depreciation and amortization |   |                              |   |                          |   | (6,276 | ) |   | (5,526 | ) |
|                                                            |   |                              |   |                          |   |   |   |   |   |   |
|                                                            |   |                              |   |                          | $      | 18,706 |   | $ | 14,959 |   |

***NOTE        F - TIME DEPOSITS***

|   | Year       | Amount   |
|--------|------------|----------|
|   |       |     |
|   | 2006       | $100,924 |
|   | 2007       | 19,387   |
|   | 2008       | 1,362    |
|   | 2009       | 1,967    |
|   | 2010       | 1,699    |
|   | Thereafter | 3,718    |
|   |       |     |
|   |       | $129,057 |

----

**SECURITY        CAPITAL CORPORATION**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

***NOTE        G - BORROWED FUNDS***

|                                        |   | December                  31,   |   |
|---------------------------------------------|--------|---------------------------------|--------|
|                                        |   | 2005                            |   | 2004 |   |
|                                        |   | (In                  thousands) |   |
|                                        |   |                            |   |   |   |
| FHLB                  advances              |   | $                               | 12,991 |   | $ | 8,634 |   |
| Treasury                  tax and loan note |   |                            | 1,105  |   |   | 1,497 |   |
|                                        |   |                            |   |   |   |   |   |
|                                        |   | $                               | 14,096 |   | $ | 10,131 |   |

|   | Year       | Amount                          |   |
|--------|------------|---------------------------------|--------|
|   |       | (In                  thousands) |   |
|   |       |                            |   |
|   | 2006       | $572                            |   |
|   | 2007       | 1,602                           |   |
|   | 2008       | 1,631                           |   |
|   | 2009       | 1,662                           |   |
|   | 2010       | 697                             |   |
|   | Thereafter | 6,827                           |   |

----

**SECURITY        CAPITAL CORPORATION**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

***NOTE        H - EMPLOYEE RETIREMENT PLANS***

* *

***NOTE        I - COMPREHENSIVE INCOME***

|                                                        |   | Years                  Ended December 31, |   |
|-------------------------------------------------------------|--------|-------------------------------------------|--------|
|                                                        |   | 2005                                      |   | 2004 |   | 2003 |   |
|                                                        |   | (In                  thousands)           |   |
| Net                  change in unrealized (losses) gains on |   |                                      |   |   |   |   |   |
| available-for-sale                  securities              |   | $                                         | (1,221 | ) | $ | (1,235 | ) | $ | (546 | ) |
| Reclassification                  adjustment for net losses |   |                                      |   |   |   |   |   |   |   |   |
| (gains)                  realized in income                 |   |                                      | 52     |   |   | 12 |   |   | (1 | ) |
| Net                  unrealized (gains) losses              |   |                                      | (1,169 | ) |   | (1,223 | ) |   | (547 | ) |
| Tax                  effect                                 |   |                                      | 404    |   |   | 448 |   |   | 205 |   |
|                                                        |   |                                      |   |   |   |   |   |   |   |   |
| Net                  change in unrealized gains (losses) on |   |                                      |   |   |   |   |   |   |   |   |
| securities                  available-for-sale, net of tax  |   | $                                         | (765   | ) | $ | (775 | ) | $ | (342 | ) |

----

**SECURITY        CAPITAL CORPORATION**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

***NOTE        J - INCOME TAXES***

|     |   | Years                  Ended December 31, |   |
|----------|--------|-------------------------------------------|--------|
|     |   | 2005                                      |   | 2004 |   | 2003 |   |
|     |   | (In                  thousands)           |   |
|     |   |                                      |   |   |   |   |   |
| Current: |   |                                      |   |   |   |   |   |
| Federal  |   | $                                         | 2,352  |   | $ | 1,901 |   | $ | 1,746 |   |
| State    |   |                                      | 379    |   |   | 288 |   |   | 256 |   |
| Deferred |   |                                      | (24    | ) |   | 242 |   |   | 37 |   |
|     |   |                                      |   |   |   |   |   |   |   |   |
|     |   | $                                         | 2,707  |   | $ | 2,431 |   | $ | 2,039 |   |

|                                                        |   | Years                  Ended December 31, |   |
|-------------------------------------------------------------|--------|-------------------------------------------|--------|
|                                                        |   | 2005                                      |   | 2004 |   | 2003 |   |
|                                                        |   | (In                  thousands)           |   |
|                                                        |   |                                      |   |   |   |   |   |
| Tax                  on income before income taxes          |   | $                                         | 3,167  |   | $ | 2,911 |   | $ | 2,569 |   |
| Increase                  (decrease) resulting from:        |   |                                      |   |   |   |   |   |   |   |   |
| Tax-exempt                  income                          |   |                                      | (719   | ) |   | (639 | ) |   | (623 | ) |
| Disallowed                  interest expense                |   |                                      | 54     |   |   | 33 |   |   | 29 |   |
| State                  income taxes, net of federal benefit |   |                                      | 250    |   |   | 190 |   |   | 169 |   |
| Other,                  net                                 |   |                                      | (45    | ) |   | (64 | ) |   | (105 | ) |
|                                                        |   |                                      |   |   |   |   |   |   |   |   |
|                                                        |   | $                                         | 2,707  |   | $ | 2,431 |   | $ | 2,039 |   |

----

**SECURITY        CAPITAL CORPORATION**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

***NOTE        J - INCOME TAXES***

|                                           |   | December                  31,   |   |
|------------------------------------------------|--------|---------------------------------|--------|
|                                           |   | 2005                            |   | 2004 |   |
|                                           |   | (In                  thousands) |   |
| Deferred                  tax assets:          |   |                            |   |   |   |
| Allowance                  for loan losses     |   | $                               | 1,266  |   | $ | 1,152 |   |
| Unrealized                  loss on securities |   |                            |   |   |   |   |   |
| available                  for sale            |   |                            | 152    |   |   | - |   |
| Other                                          |   |                            | 14     |   |   | 10 |   |
|                                           |   |                            | 1,432  |   |   | 1,162 |   |
|                                           |   |                            |   |   |   |   |   |
| Deferred                  tax liabilities:     |   |                            |   |   |   |   |   |
| Premises                  and equipment        |   |                            | (168   | ) |   | (174 | ) |
| Unrealized                  gain on securities |   |                            |   |   |   |   |   |
| available                  for sale            |   |                            | -      |   |   | (304 | ) |
| Other                                          |   |                            | (580   | ) |   | (479 | ) |
|                                           |   |                            | (748   | ) |   | (957 | ) |
| Net                  deferred tax asset        |   | $                               | 684    |   | $ | 205 |   |
|                                           |   |                            |   |   |   |   |   |

***NOTE        K - COMMITMENTS AND CONTINGENT LIABILITIES***

|                                          |   | Contractual                  Amount |   |
|-----------------------------------------------|--------|-------------------------------------|--------|
|                                          |   | 2005                                |   | 2004 |   |
|                                          |   | (In                  thousands)     |   |
|                                          |   |                                |   |   |   |
| Commitments                  to extend credit |   | $                                   | 48,228 |   | $ | 41,901 |   |
| Credit                  card arrangements     |   |                                | 2,253  |   |   | 2,227 |   |
| Letters                  of credit            |   |                                | 14,251 |   |   | 15,655 |   |
|                                          |   |                                |   |   |   |   |   |

----

**SECURITY        CAPITAL CORPORATION**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

***NOTE        K - COMMITMENTS AND CONTINGENT LIABILITIES***

|   | Year   | Amount  |   |
|--------|--------|---------|--------|
|   |   |    |   |
|   | 2006   | $9,600  |   |
|   | 2007   | 9,600   |   |
|   | 2008   | -       |   |
|   | 2009   | -       |   |
|   | 2010   | -       |   |
|   |   | $19,200 |   |

***NOTE        L - RELATED PARTY TRANSACTIONS***

----

**SECURITY        CAPITAL CORPORATION**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

***NOTE        M - REGULATORY MATTERS***

|                                  |   | Security                  Capital |   |   |   |   |   |
|---------------------------------------|--------|-----------------------------------|--------|--------|--------|--------|--------|
|                                  |   | Corporation                       |   |   |   |   |   |
|                                  |   | (Consolidated)                    |   | Bank   |   |
|                                  |   | Amount                            |   | Ratio  |   | Amount |   | Ratio |   |
|                                  |   | ($                  In Thousands) |   |
| *December                  31, 2005:* |   |                              |   |   |   |   |   |   |   |
| Total                  risk-based     |   | $                                 | 47,467 |   |   | 14.4   | %      | $ | 45,417 |   |   | 13.8 | % |
| Tier                  1 risk-based    |   |                              | 43,568 |   |   | 13.2   | %      |   | 41,518 |   |   | 12.7 | % |
| Tier                  1 leverage      |   |                              | 43,568 |   |   | 10.2   | %      |   | 41,518 |   |   | 9.8 | % |
|                                  |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| *December                  31, 2004:* |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Total                  risk-based     |   | $                                 | 42,859 |   |   | 15.8   | %      | $ | 40,884 |   |   | 15.2 | % |
| Tier                  1 risk-based    |   |                              | 39,486 |   |   | 14.6   | %      |   | 37,511 |   |   | 13.9 | % |
| Tier                  1 leverage      |   |                              | 39,486 |   |   | 10.4   | %      |   | 37,511 |   |   | 9.9 | % |

----

**SECURITY        CAPITAL CORPORATION**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

***NOTE        M - REGULATORY MATTERS***

|                                  |   | Security                  Capital |   |   |   |   |   |
|---------------------------------------|--------|-----------------------------------|--------|--------|--------|--------|--------|
|                                  |   | Corporation                       |   |   |   |   |   |
|                                  |   | (Consolidated)                    |   | Bank   |   |
|                                  |   | Amount                            |   | Ratio  |   | Amount |   | Ratio |   |
|                                  |   | ($                  In Thousands) |   |
| *December                  31, 2005:* |   |                              |   |   |   |   |   |   |   |
| Total                  risk-based     |   | $                                 | 26,406 |   |   | 8.0    | %      | $ | 26,247 |   |   | 8.0 | % |
| Tier                  1 risk-based    |   |                              | 13,203 |   |   | 4.0    | %      |   | 13,123 |   |   | 4.0 | % |
| Tier                  1 leverage      |   |                              | 12,801 |   |   | 3.0    | %      |   | 12,747 |   |   | 3.0 | % |
|                                  |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| *December                  31, 2004:* |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Total                  risk-based     |   | $                                 | 21,704 |   |   | 8.0    | %      | $ | 21,571 |   |   | 8.0 | % |
| Tier                  1 risk-based    |   |                              | 10,851 |   |   | 4.0    | %      |   | 10,785 |   |   | 4.0 | % |
| Tier                  1 leverage      |   |                              | 11,368 |   |   | 3.0    | %      |   | 11,325 |   |   | 3.0 | % |

***NOTE        N - DISCLOSURE ABOUT FAIR VALUES OF FINANCIAL        INSTRUMENTS***

***Cash        and Cash Equivalents***

***Securities***

----

**SECURITY        CAPITAL CORPORATION**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

***NOTE        N - DISCLOSURE ABOUT FAIR VALUES OF FINANCIAL INSTRUMENTS***

***Loans***

***Deposits***

***FHLB        and Other Borrowings***

***Off-Balance        Sheet Instruments***

|                                           |   | December                  31, 2005 |    |                            |   | December                  31, 2004 |   |
|------------------------------------------------|--------|------------------------------------|---------|---------------------------------|--------|------------------------------------|--------|
|                                           |   | Carrying                           |    | Estimated                       |   | Carrying                           |   | Estimated |   |
|                                           |   | Amount                             |    | Fair                  Value     |   | Amount                             |   | Fair                  Value |   |
|                                           |   | (In                  thousands)    |    | (In                  thousands) |   |
| Financial                  assets:             |   |                               |    |                            |   |                               |   |   |   |
| Cash                  and cash equivalents     |   | $                                  | 19,677  |                            | $      | 19,677                             |   | $ | 16,088 |   | $ | 16,088 |   |
| Federal                  funds sold            |   |                               | -       |                            |   | -                                  |   |   | 14,000 |   |   | 14,000 |   |
| Certificates                  of deposit with  |   |                               |    |                            |   |                               |   |   |   |   |   |   |   |
| other                  banks                   |   |                               | 392     |                            |   | 392                                |   |   | 591 |   |   | 591 |   |
| Securities                  available-for-sale |   |                               | 78,949  |                            |   | 78,949                             |   |   | 96,669 |   |   | 96,669 |   |
| Securities                  held-to-maturity   |   |                               | 2,047   |                            |   | 2,063                              |   |   | 2,050 |   |   | 2,052 |   |
| Securities,                  other             |   |                               | 1,456   |                            |   | 1,456                              |   |   | 1,259 |   |   | 1,259 |   |
| Loans                                          |   |                               | 294,046 |                            |   | 272,375                            |   |   | 230,805 |   |   | 215,967 |   |
| Financial                  liabilities:        |   |                               |    |                            |   |                               |   |   |   |   |   |   |   |
| Noninterest-bearing                  deposits  |   |                               | 63,082  |                            |   | 63,082                             |   |   | 53,502 |   |   | 53,502 |   |
| Interest-bearing                  deposits     |   |                               | 291,684 |                            |   | 290,334                            |   |   | 279,956 |   |   | 278,908 |   |
| FHLB                  and other borrowings     |   |                               | 29,096  |                            |   | 29,096                             |   |   | 10,131 |   |   | 10,086 |   |

----

**SECURITY        CAPITAL CORPORATION**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

***NOTE        O - CONCENTRATIONS OF CREDIT***

***NOTE        P - CONDENSED PARENT COMPANY STATEMENTS***

***BALANCE        SHEETS***

|                                                        |   | December                  31,   |   |
|-------------------------------------------------------------|--------|---------------------------------|--------|
|                                                        |   | 2005                            |   | 2004 |   |
|                                                        |   | (In                  thousands) |   |
| ***Assets***                                                |   |                            |   |   |   |
| Cash                  and cash equivalents                  |   | $                               | 23     |   | $ | 116 |   |
| Investment                  in subsidiaries                 |   |                            | 45,730 |   |   | 42,489 |   |
| Land                                                        |   |                            | 2,173  |   |   | 994 |   |
| Other                  assets                               |   |                            | 243    |   |   | 317 |   |
|                                                        |   |                            |   |   |   |   |   |
|                                                        |   | $                               | 48,169 |   | $ | 43,916 |   |
| ***Liabilities                  and Shareholders' Equity*** |   |                            |   |   |   |   |   |
| Notes                  payable                              |   | $                               | 930    |   | $ | - |   |
| Other                  liabilities                          |   |                            | 52     |   |   | 46 |   |
| Shareholders'                  equity                       |   |                            | 47,187 |   |   | 43,870 |   |
|                                                        |   |                            |   |   |   |   |   |
|                                                        |   | $                               | 48,169 |   | $ | 43,916 |   |

----

**SECURITY        CAPITAL CORPORATION**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

***NOTE        P - CONDENSED PARENT COMPANY STATEMENTS***

***STATEMENTS        OF INCOME***

|                                                              |   | Years                  Ended December 31, |   |
|-------------------------------------------------------------------|--------|-------------------------------------------|--------|
|                                                              |   | 2005                                      |   | 2004 |   | 2003 |   |
|                                                              |   | (In                  thousands)           |   |
| ***Income***                                                      |   |                                      |   |   |   |   |   |
| Dividends                  from subsidiary                        |   | $                                         | 2,695  |   | $ | 2,420 |   | $ | 2,530 |   |
| Gain                  on sale of other asset                      |   |                                      | -      |   |   | - |   |   | 406 |   |
| Other                                                             |   |                                      | 53     |   |   | 10 |   |   | 10 |   |
|                                                              |   |                                      | 2,748  |   |   | 2,430 |   |   | 2,946 |   |
|                                                              |   |                                      |   |   |   |   |   |   |   |   |
| ***Expense***                                                     |   |                                      | 202    |   |   | 151 |   |   | 177 |   |
| Income                  before income taxes and equity in         |   |                                      |   |   |   |   |   |   |   |   |
| undistributed                  earnings of subsidiaries           |   |                                      | 2,546  |   |   | 2,279 |   |   | 2,769 |   |
| Income                  tax (expense) benefit                     |   |                                      | 56     |   |   | 50 |   |   | (78 | ) |
| Income                  before equity in undistributed earnings   |   |                                      |   |   |   |   |   |   |   |   |
| of                  subsidiaries                                  |   |                                      | 2,602  |   |   | 2,329 |   |   | 2,691 |   |
| Equity                  in undistributed earnings of subsidiaries |   |                                      |   |   |   |   |   |   |   |   |
| in                  excess of dividends                           |   |                                      | 4,005  |   |   | 3,803 |   |   | 2,826 |   |
|                                                              |   |                                      |   |   |   |   |   |   |   |   |
| Net                  income                                       |   | $                                         | 6,607  |   | $ | 6,132 |   | $ | 5,517 |   |
|                                                              |   |                                      |   |   |   |   |   |   |   |   |

----

**SECURITY        CAPITAL CORPORATION**

**                                                                             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

***NOTE        P - CONDENSED PARENT COMPANY STATEMENTS***

***STATEMENTS        OF CASH FLOWS***

|                                                                  |   | Years                  Ended December 31, |   |
|-----------------------------------------------------------------------|--------|-------------------------------------------|--------|
|                                                                  |   | 2005                                      |   | 2004 |   | 2003 |   |
|                                                                  |   | (In                  thousands)           |   |
| ***Cash                  Flows From Operating Activities***           |   |                                      |   |   |   |   |   |
| Net                  income                                           |   | $                                         | 6,607  |   | $ | 6,132 |   | $ | 5,517 |   |
| Equity                  in subsidiaries’ earnings               |   |                                      | (4,005 | ) |   | (3,803 | ) |   | (2,826 | ) |
| Gain                  on sale of other asset                          |   |                                      | -      |   |   | - |   |   | (406 | ) |
| Other,                  net                                           |   |                                      | 80     |   |   | (68 | ) |   | 234 |   |
|                                                                  |   |                                      |   |   |   |   |   |   |   |   |
| Net                  cash provided by operating activities            |   |                                      | 2,682  |   |   | 2,261 |   |   | 2,519 |   |
|                                                                  |   |                                      |   |   |   |   |   |   |   |   |
| ***Cash                  Flows From Investing Activities***           |   |                                      |   |   |   |   |   |   |   |   |
| Purchases                  of assets                                  |   |                                      | (1,179 | ) |   | (1,204 | ) |   | - |   |
| Proceeds                  from sale of other asset                    |   |                                      | *-*    |   |   | - |   |   | 406 |   |
| Other,                  net                                           |   |                                      | (2     | ) |   | - |   |   | - |   |
|                                                                  |   |                                      |        |   |   |   |   |   |   |   |
| Net                  cash provided by (used in) investing activities  |   |                                      | (1,181 | ) |   | (1,204 | ) |   | 406 |   |
|                                                                  |   |                                      |   |   |   |   |   |   |   |   |
| ***Cash                  Flows From Financing Activities***           |   |                                      |   |   |   |   |   |   |   |   |
| Dividends                  paid on common stock                       |   |                                      | (2,611 | ) |   | (2,485 | ) |   | (2,243 | ) |
| Issuance                  of debt                                     |   |                                      | 930    |   |   | - |   |   | - |   |
| Other,                  net                                           |   |                                      | 87     |   |   | 150 |   |   | 58 |   |
|                                                                  |   |                                      |   |   |   |   |   |   |   |   |
| Net                  cash used in financing activities                |   |                                      | (1,594 | ) |   | (2,335 | ) |   | (2,185 | ) |
|                                                                  |   |                                      |   |   |   |   |   |   |   |   |
| Net                  increase (decrease) in cash and cash equivalents |   |                                      | (93    | ) |   | (1,278 | ) |   | 740 |   |
| Cash                  and cash equivalents at beginning of year       |   |                                      | 116    |   |   | 1,394 |   |   | 654 |   |
|                                                                  |   |                                      |   |   |   |   |   |   |   |   |
| Cash                  and cash equivalents at end of year             |   | $                                         | 23     |   | $ | 116 |   | $ | 1,394 |   |

----

**SECURITY        CAPITAL CORPORATION**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

***NOTE        Q - SUMMARY OF QUARTERLY RESULTS OF OPERATIONS AND PER SHARE AMOUNTS        (UNAUDITED)***

|                                                     |   | Three                  Months Ended                    |   |
|----------------------------------------------------------|--------|--------------------------------------------------------|--------|
|                                                     |   | Mar.                  31                               |   | June                  30 |   | Sept.                  30 |   | Dec.                  31 |   |
|                                                     |   | (In                  thousands, except per share data) |   |
| **2005**                                                 |   |                                                   |   |   |   |   |   |   |   |
| Total                  interest income                   |   | $                                                      | 5,332  |   | $ | 5,906 |   | $ | 6,493 |   | $ | 6,727 |   |
| Total                  interest expense                  |   |                                                   | 1,287  |   |   | 1,595 |   |   | 1,893 |   |   | 2,132 |   |
| Net                  interest income                     |   |                                                   | 4,045  |   |   | 4,311 |   |   | 4,600 |   |   | 4,595 |   |
| Provision                  for loan losses               |   |                                                   | 185    |   |   | 185 |   |   | 465 |   |   | 605 |   |
| Net                  interest income after provision for |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |
| loan                  losses                             |   |                                                   | 3,860  |   |   | 4,126 |   |   | 4,135 |   |   | 3,990 |   |
| Total                  noninterest income, excluding     |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |
| securities                  gains (losses)               |   |                                                   | 1,492  |   |   | 1,555 |   |   | 1,616 |   |   | 1,556 |   |
| Securities                  gains (losses)               |   |                                                   | 7      |   |   | - |   |   | (16 | ) |   | (43 | ) |
| Total                  noninterest expenses              |   |                                                   | 3,075  |   |   | 3,269 |   |   | 3,325 |   |   | 3,295 |   |
| Income                  taxes                            |   |                                                   | 657    |   |   | 593 |   |   | 754 |   |   | 703 |   |
|                                                     |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  income                              |   |                                                   | 1,627  |   |   | 1,819 |   |   | 1,656 |   |   | 1,505 |   |
| Per                  share: (1)                          |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  income                              |   | $                                                      | .62    |   | $ | .70 |   | $ | .63 |   | $ | .58 |   |
| Cash                  dividends declared                 |   |                                                   | -      |   |   | - |   |   | - |   |   | 1.00 |   |

----

**SECURITY        CAPITAL CORPORATION**

**                                                                              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

***NOTE        Q - SUMMARY OF QUARTERLY RESULTS OF OPERATIONS AND PER SHARE AMOUNTS (UNAUDITED)***

|                                                     |   | Three                  Months Ended                    |   |
|----------------------------------------------------------|--------|--------------------------------------------------------|--------|
|                                                     |   | Mar.                  31                               |   | June                  30 |   | Sept.                  30 |   | Dec.                  31 |   |
|                                                     |   | (In                  thousands, except per share data) |   |
| **2004**                                                 |   |                                                   |   |   |   |   |   |   |   |
| Total                  interest income                   |   | $                                                      | 4,392  |   | $ | 4,610 |   | $ | 4,969 |   | $ | 5,121 |   |
| Total                  interest expense                  |   |                                                   | 949    |   |   | 956 |   |   | 1,061 |   |   | 1,173 |   |
| Net                  interest income                     |   |                                                   | 3,443  |   |   | 3,654 |   |   | 3,908 |   |   | 3,948 |   |
| Provision                  for loan losses               |   |                                                   | 163    |   |   | 144 |   |   | 148 |   |   | 182 |   |
| Net                  interest income after provision for |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |
| loan                  losses                             |   |                                                   | 3,280  |   |   | 3,510 |   |   | 3,760 |   |   | 3,766 |   |
| Total                  noninterest income, excluding     |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |
| securities                  gains (losses)               |   |                                                   | 1,313  |   |   | 1,720 |   |   | 1,409 |   |   | 1,350 |   |
| Securities                  gains (losses)               |   |                                                   | -      |   |   | 33 |   |   | (45 | ) |   | - |   |
| Total                  noninterest expenses              |   |                                                   | 2,716  |   |   | 2,988 |   |   | 2,852 |   |   | 2,977 |   |
| Income                  taxes                            |   |                                                   | 485    |   |   | 644 |   |   | 532 |   |   | 770 |   |
|                                                     |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  income                              |   | $                                                      | 1,392  |   | $ | 1,631 |   | $ | 1,740 |   | $ | 1,369 |   |
|                                                     |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |
| Per                  share: (1)                          |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  income                              |   | $                                                      | .53    |   | $ | .62 |   | $ | .67 |   | $ | .52 |   |
| Cash                  dividends declared                 |   |                                                   | -      |   |   | - |   |   | - |   |   | 1.00 |   |

| (1)   | Restated                for stock dividends. |
|-----------------|----------------------------------------------|

----

**REPORT          OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

----

**TEM        9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL        DISCLOSURE**

**ITEM      9A. CONTROLS AND PROCEDURES**

**ITEM      9B. OTHER INFORMATION**

**PART      III**

**ITEM      10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT**

----

**ITEM      11. EXECUTIVE COMPENSATION**

**ITEM      12. SECURITY OWNERSHIP OF MANAGEMENT AND RELATED STOCKHOLDER**
**      MATTERS**

**ITEM      13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS**

**ITEM      14. PRINCIPAL ACCOUNTING FEES AND SERVICES**

----

**PART      IV**

**ITEM      15. **
**EXHIBITS      AND FINANCIAL STATEMENT SCHEDULES **

**Financial      Statements**
**and      Exhibits**

| (a)   | Independent                Registered Public Accountants’Report |
|-----------------|-----------------------------------------------------------------------|

| (b)   | Consolidated                Financial Statements - See the Financial Statements included in Item                8. |
|-----------------|--------------------------------------------------------------------------------------------------------------------|

| (c)   | Financial                Statement Schedules - Financial statement schedules are omitted for                the                reason that they are not required or are not applicable, or the required                information is included in the financial                statements. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Exhibits                - The exhibits filed as part of this Annual Report on Form 10-K are                identified in the Exhibit Index, which Exhibit Index specifically                identifies those exhibits that describe or evidence all management                contracts and compensation plans or arrangements required to be filed                as                exhibits to this report. Such Exhibit Index is incorporated herein                by                reference. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| DATE: | March                30, 2006 |   |   |   |   |
|-------|-------------------------------|--------|--------|--------|--------|

| DATE: | March                30, 2006 |   |   |   |   |
|-------|-------------------------------|--------|--------|--------|--------|

| DATE: | March                30, 2006 |   |   |   |   |
|-------|-------------------------------|--------|--------|--------|--------|

| DATE: | March                30, 2006 |   |   |   |   |
|-------|-------------------------------|--------|--------|--------|--------|

| DATE: | March                30, 2006 |   |   |   |   |
|-------|-------------------------------|--------|--------|--------|--------|

| DATE: | March                30, 2006 |   |   |   |   |
|-------|-------------------------------|--------|--------|--------|--------|

| DATE: | March                30, 2006 |   |   |   |   |
|-------|-------------------------------|--------|--------|--------|--------|

| DATE: | March                30, 2006 |   |   |   |   |
|-------|-------------------------------|--------|--------|--------|--------|

| DATE: | March                30, 2006 |   |   |   |   |
|-------|-------------------------------|--------|--------|--------|--------|

----

| Exhibit                Index |
|------------------------------|
|                         |   |   |
|                         |   | Reference                to |
|                         |   | Prior                Filing or |
| Exhibit                      |   | Exhibit                Number |
| Number                       | Document | Attached                Hereto |
| 3.1                          | Registrant's                Articles of Incorporation | * |
|                         |   |   |
| 3.2                          | Registrant's                Bylaws | * |
|                         |   |   |
| 21                           | Subsidiaries                of the registrant | 21 |
|                         |   |   |
| 31.1                         | Rule                13a-14(a) Certification of the Company's President | 31.1 |
|                         | and                Chief Executive Officer |   |
|                         |   |   |
| 31.2                         | Rule                13a-14(a) Certification of the Company's Chief | 31.2 |
|                         | Financial                Officer |   |
|                         |   |   |
| 32                           | Section                1350 Certification | 32 |
|                         |   |   |
|                         |   |   |
|                         |   |   |
| *                            | Filed                on March 31,2003, as an exhibit to the Registrant's Registration                Statement |   |
|                         | on                Form 10-SB (File No. 000-50224), and incorporated herein by                reference |   |