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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20429



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FORM 10-QSB



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QUARTERLY REPORT UNDER SECTION 13 or 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2007

Commission File No:



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OAK RIDGE FINANCIAL SERVICES, INC.

(Exact name of small business issuer in
its charter)



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|                                                                |  |                                     
|--------------------------------------------------------------- |  | ------------------------------------
|North Carolina                                                  |  | 56-2149229                          
|(State or other jurisdiction of incorporation or organization)  |  | (I.R.S. Employer Identification No.)
|                                                                | 
|Post Office Box 2 2211 Oak Ridge Road Oak Ridge, North Carolina |  | 27310                               
|(Address of principal executive offices)                        |  | (Zip Code)                          

(336) 644-9944

(Issuers telephone number, including area code)



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

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

State the number of shares outstanding of each of the issuers classes of common equity, as of the latest practicable date.



|                           |  |                           
|-------------------------- |  | --------------------------
|Common Stock, no par value |  | 1,790,224 shares          
|Class                      |  | Outstanding at May 2, 2007



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##### Table of Contents

On May 8, 2007, Oak Ridge Financial Services, Inc., the holding company for Bank of Oak Ridge, filed a
From 8-K with the Securities Exchange Commission pursuant to Rule 12g-3 of the Securities Exchange Act of 1934, as amended (the Exchange Act). Prior to the reorganization of Bank of Oak Ridge into holding company form (the
Reorganization), Bank of Oak Ridge filed all reports required by the Exchange Act with the FDIC. At March 31, 2007, the Reorganization had not been consummated. As a result, this Form 10-QSB relates only to the Bank of Oak Ridge.



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##### Table of Contents

Bank of Oak Ridge

Table of Contents



|         |  |                                                                                                              |  |     
|-------- |  | ------------------------------------------------------------------------------------------------------------ |  | ----
|         |  |                                                                                                              |  | Page
|Part I.  |  | Financial Information                                                                                        |  |     
|         |  |                                                                                                             
|Item 1.  |  | Financial Statements                                                                                         |  |     
|         |  | Balance Sheets at March 31, 2007 (unaudited) and December 31, 2006                                           |  | 3   
|         |  |                                                                                                             
|         |  | Statements of Operations for the three months ended March 31, 2007 and 2006 (unaudited)                      |  | 4   
|         |  |                                                                                                             
|         |  | Statements of Changes in Stockholders Equity for the three months ended March 31, 2007 and 2006 (unaudited) |  | 5   
|         |  |                                                                                                             
|         |  | Statements of Cash Flows for the three months ended March 31, 2007 and 2006 (unaudited)                      |  | 6   
|         |  |                                                                                                             
|         |  | Notes to Unaudited Financial Statements                                                                      |  | 7   
|         |  |                                                                                                             
|Item 2.  |  | Managements Discussion and Analysis of Financial Condition and Results of Operations                        |  | 13  
|         |  |                                                                                                             
|Item 3.  |  | Controls and Procedures                                                                                      |  | 16  
|         |  |                                                                                                             
|Part II. |  | Other Information                                                                                            |  |     
|         |  |                                                                                                             
|Item 6.  |  | Exhibits                                                                                                     |  | 17  
|         |  |                                                                                                             
|         |  | Signature Page                                                                                               |  | 19  



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##### Table of Contents

Balance Sheets

March 31, 2007 and December 31, 2006

(Dollars in thousands  except share data)



|                                                                                                                                               |  |                            |         |                             |   |         |  
|---------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------- | ------- | --------------------------- | - | ------- | -
|                                                                                                                                               |  | (Unaudited) March 31, 2007 |         | (Audited) December 31, 2006 |  
|Assets                                                                                                                                         |  |                            |         |                             |   |         |  
|                                                                                                                                               |  |                           
|Cash and due from banks                                                                                                                        |  | $                          | 5,835   |                             | $ | 4,332   |  
|Interest-bearing deposits with banks                                                                                                           |  |                            | 190     |                             |   | 782     |  
|Federal funds sold                                                                                                                             |  |                            | 1,338   |                             |   | 6,798   |  
|Trading assets                                                                                                                                 |  |                            | 23,407  |                             |   |        |  
|Securities available-for-sale                                                                                                                  |  |                            |        |                             |   | 23,403  |  
|Securities held-to-maturity (fair value of $1,532 in 2006)                                                                                     |  |                            |        |                             |   | 1,613   |  
|Federal Home Loan Bank Stock, at cost                                                                                                          |  |                            | 1,161   |                             |   | 1,133   |  
|Loans, net of allowance for loan losses of $1,795 in 2007 and $1,704 in 2006                                                                   |  |                            | 167,716 |                             |   | 157,723 |  
|Property and equipment, net                                                                                                                    |  |                            | 5,425   |                             |   | 5,022   |  
|Accrued interest receivable                                                                                                                    |  |                            | 1,029   |                             |   | 962     |  
|Bank owned life insurance                                                                                                                      |  |                            | 4,146   |                             |   | 4,107   |  
|Other assets                                                                                                                                   |  |                            | 1,318   |                             |   | 1,261   |  
|                                                                                                                                               |  |                            |         |                             |   |         |  
|Total assets                                                                                                                                   |  | $                          | 211,565 |                             | $ | 207,136 |  
|                                                                                                                                               |  |                            |         |                             |   |         |  
|Liabilities and Stockholders Equity                                                                                                           |  |                            |         |                             |   |         |  
|                                                                                                                                               |  |                           
|Liabilities                                                                                                                                    |  |                            |         |                             |   |         |  
|Deposits:                                                                                                                                      |  |                            |         |                             |   |         |  
|Noninterest-bearing                                                                                                                            |  | $                          | 15,450  |                             | $ | 13,745  |  
|Interest-bearing                                                                                                                               |  |                            | 162,610 |                             |   | 158,540 |  
|                                                                                                                                               |  |                            |         |                             |   |         |  
|Total deposits                                                                                                                                 |  |                            | 178,060 |                             |   | 172,285 |  
|Short-term debt                                                                                                                                |  |                            |        |                             |   | 1,500   |  
|Long-term debt                                                                                                                                 |  |                            | 16,000  |                             |   | 16,000  |  
|Accrued interest payable                                                                                                                       |  |                            | 497     |                             |   | 447     |  
|Other liabilities                                                                                                                              |  |                            | 431     |                             |   | 451     |  
|                                                                                                                                               |  |                            |         |                             |   |         |  
|Total liabilities                                                                                                                              |  |                            | 194,988 |                             |   | 190,683 |  
|                                                                                                                                               |  |                            |         |                             |   |         |  
|Commitments and contingencies                                                                                                                  |  |                            |        |                             |   |        |  
|                                                                                                                                               |  |                           
|Stockholders equity                                                                                                                           |  |                            |         |                             |   |         |  
|Common stock, $3 par value; 20,000,000 shares authorized; 1,790,224 and 1,790,174 shares issued and outstanding in 2007 and 2006,
respectively |  |                            | 5,370   |                             |   | 5,370   |  
|Surplus                                                                                                                                        |  |                            | 10,450  |                             |   | 10,450  |  
|Retained earnings                                                                                                                              |  |                            | 757     |                             |   | 978     |  
|Accumulated other comprehensive loss                                                                                                           |  |                            |        |                             |   | (345    | )
|                                                                                                                                               |  |                            |         |                             |   |         |  
|Total stockholders equity                                                                                                                     |  |                            | 16,577  |                             |   | 16,453  |  
|                                                                                                                                               |  |                            |         |                             |   |         |  
|Total liabilities and stockholders equity                                                                                                     |  | $                          | 211,565 |                             | $ | 207,136 |  
|                                                                                                                                               |  |                            |         |                             |   |         |  

See Notes to Unaudited Financial Statements



Page 4



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##### Table of Contents

Statements of Operations

Three months ended March 31, 2007 and 2006 (unaudited)

(Dollars in thousands except per share data)



|                                                    |  |                             |           |                  |   |          
|--------------------------------------------------- |  | --------------------------- | --------- | ---------------- | - | ---------
|                                                    |  | Three months endedMarch 31,
|                                                    |  | (Unaudited) 2007            |           | (Unaudited) 2006
|Interest income                                     |  |                             |           |                  |   |          
|Loans and fees on loans                             |  | $                           | 3,386     |                  | $ | 2,455    
|Federal funds sold                                  |  |                             | 42        |                  |   | 65       
|Interest on deposits in banks                       |  |                             | 7         |                  |   | 1        
|Federal Home Loan Bank Stock Dividends              |  |                             | 16        |                  |   | 14       
|Taxable investment securities                       |  |                             |          |                  |   | 322      
|Trading account securities                          |  |                             | 264       |                  |   |         
|                                                    |  |                             |           |                  |   |          
|Total interest income                               |  |                             | 3,715     |                  |   | 2,857    
|                                                    |  |                             |           |                  |   |          
|Interest expense                                    |  |                             |           |                  |   |          
|Deposits                                            |  |                             | 1,724     |                  |   | 1,153    
|Short-term and long-term debt                       |  |                             | 216       |                  |   | 184      
|                                                    |  |                             |           |                  |   |          
|Total interest expense                              |  |                             | 1,940     |                  |   | 1,337    
|                                                    |  |                             |           |                  |   |          
|Net interest income                                 |  |                             | 1,775     |                  |   | 1,520    
|                                                    |  |                            
|Provision for loan losses                           |  |                             | 86        |                  |   | 116      
|                                                    |  |                             |           |                  |   |          
|Net interest income after provision for loan losses |  |                             | 1,689     |                  |   | 1,404    
|                                                    |  |                             |           |                  |   |          
|Noninterest income                                  |  |                             |           |                  |   |          
|Service charges on deposit accounts                 |  |                             | 119       |                  |   | 99       
|Mortgage loan origination fees                      |  |                             | 104       |                  |   | 70       
|Investment and insurance commissions                |  |                             | 142       |                  |   | 234      
|Fee income from accounts receivable financing       |  |                             | 39        |                  |   | 44       
|Income earned on bank owned life insurance          |  |                             | 39        |                  |   | 38       
|Gain on trading activity                            |  |                             | 89        |                  |   |         
|Other service charges and fees                      |  |                             | 47        |                  |   | 28       
|                                                    |  |                             |           |                  |   |          
|Total noninterest income                            |  |                             | 579       |                  |   | 513      
|                                                    |  |                             |           |                  |   |          
|Noninterest expense                                 |  |                             |           |                  |   |          
|Salaries and employee benefits                      |  |                             | 1,092     |                  |   | 869      
|Occupancy expense                                   |  |                             | 128       |                  |   | 123      
|Equipment expense                                   |  |                             | 133       |                  |   | 125      
|Data and item processing                            |  |                             | 73        |                  |   | 61       
|Professional and advertising                        |  |                             | 219       |                  |   | 239      
|Stationary and supplies                             |  |                             | 44        |                  |   | 39       
|Telecommunications expense                          |  |                             | 62        |                  |   | 33       
|Other expense                                       |  |                             | 263       |                  |   | 101      
|                                                    |  |                             |           |                  |   |          
|Total noninterest expense                           |  |                             | 2,014     |                  |   | 1,590    
|                                                    |  |                             |           |                  |   |          
|Income before income taxes                          |  |                             | 254       |                  |   | 327      
|Income tax expense                                  |  |                             | 82        |                  |   |         
|                                                    |  |                             |           |                  |   |          
|Net income                                          |  | $                           | 172       |                  | $ | 327      
|                                                    |  |                             |           |                  |   |          
|Basic earnings per share                            |  | $                           | 0.10      |                  | $ | 0.18     
|                                                    |  |                             |           |                  |   |          
|Diluted earnings per share                          |  | $                           | 0.09      |                  | $ | 0.18     
|                                                    |  |                             |           |                  |   |          
|Basic weighted average shares outstanding           |  |                             | 1,790,177 |                  |   | 1,789,505
|                                                    |  |                             |           |                  |   |          
|Diluted weighted average shares outstanding         |  |                             | 1,855,279 |                  |   | 1,851,256
|                                                    |  |                             |           |                  |   |          

See Notes to Unaudited Financial Statements



Page 5



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##### Table of Contents

Statements of Changes in Stockholders Equity and Comprehensive Income

Three months ended March 31, 2007 and 2006
(unaudited)

(In thousands except shares of common stock)



|                                                                                                     |        |              |        |         |       |                             |   |        |                                               |   |      |       |  |   |      |   |  |   |        |  
|---------------------------------------------------------------------------------------------------- | ------ | ------------ | ------ | ------- | ----- | --------------------------- | - | ------ | --------------------------------------------- | - | ---- | ----- |  | - | ---- | - |  | - | ------ | -
|                                                                                                     |        | Common Stock |        | Surplus |       | Retained Earnings (Deficit) |   |        | Accumulated Other Comprehensive Income (Loss) |   |      | Total | 
|                                                                                                     | Shares |              | Amount |         |       |                             |  
|Balance, December 31, 2005                                                                           |        | 1,789,499    |        | $       | 5,368 |                             | $ | 10,445 |                                               | $ | (281 | )     |  | $ | (389 | ) |  | $ | 15,143 |  
|                                                                                                     |        |              |        |         |       |                            
|Comprehensive income                                                                                 |        |              |        |         |       |                             |   |        |                                               |   |      |       |  |   |      |   |  |   |        |  
|Net income                                                                                           |        |             |        |         |      |                             |   |       |                                               |   | 327  |       |  |   |     |   |  |   | 327    |  
|Net change in unrealized loss on investment securities available-for-sale, net of tax benefit of $37 |        |             |        |         |      |                             |   |       |                                               |   |     |       |  |   | (54  | ) |  |   | (54    | )
|                                                                                                     |        |              |        |         |       |                             |   |        |                                               |   |      |       |  |   |      |   |  |   |        |  
|Total comprehensive income                                                                           |        |              |        |         |       |                             |   |        |                                               |   |      |       |  |   |      |   |  |   | 273    |  
|Issuance of common stock                                                                             |        | 500          |        |         | 2     |                             |   | 3      |                                               |   |     |       |  |   |     |   |  |   | 5      |  
|                                                                                                     |        |              |        |         |       |                             |   |        |                                               |   |      |       |  |   |      |   |  |   |        |  
|Balance, March 31, 2006                                                                              |        | 1,789,999    |        | $       | 5,370 |                             | $ | 10,448 |                                               | $ | 46   |       |  | $ | (443 | ) |  | $ | 15,421 |  
|                                                                                                     |        |              |        |         |       |                             |   |        |                                               |   |      |       |  |   |      |   |  |   |        |  
|Balance, December 31, 2006                                                                           |        | 1,790,174    |        | $       | 5,370 |                             | $ | 10,450 |                                               | $ | 978  |       |  | $ | (345 | ) |  | $ | 16,453 |  
|                                                                                                     |        |              |        |         |       |                            
|Comprehensive income                                                                                 |        |              |        |         |       |                             |   |        |                                               |   |      |       |  |   |      |   |  |   |        |  
|Net income                                                                                           |        |             |        |         |      |                             |   |       |                                               |   | 172  |       |  |   |     |   |  |   | 172    |  
|                                                                                                     |        |              |        |         |       |                             |   |        |                                               |   |      |       |  |   |      |   |  |   |        |  
|Total comprehensive income                                                                           |        |              |        |         |       |                             |   |        |                                               |   |      |       |  |   |      |   |  |   | 172    |  
|Cumulative effect of a change in accounting principle                                                |        |              |        |         |       |                             |   |        |                                               |   | (393 | )     |  |   | 345  |   |  |   | (48    | )
|Issuance of common stock                                                                             |        | 50           |        |         |      |                             |   |       |                                               |   |     |       |  |   |     |   |  |   |       |  
|                                                                                                     |        |              |        |         |       |                             |   |        |                                               |   |      |       |  |   |      |   |  |   |        |  
|Balance, March 31, 2007                                                                              |        | 1,790,224    |        | $       | 5,370 |                             | $ | 10,450 |                                               | $ | 757  |       |  | $ |     |   |  | $ | 16,577 |  
|                                                                                                     |        |              |        |         |       |                             |   |        |                                               |   |      |       |  |   |      |   |  |   |        |  

See Notes to Unaudited Financial Statements



Page 6



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##### Table of Contents

Statements of Cash Flows

Three months ended March 31, 2007 and 2006 (Unaudited)

(In thousands)



|                                                                        |  |                  |         |   |                  |   |        |  
|----------------------------------------------------------------------- |  | ---------------- | ------- | - | ---------------- | - | ------ | -
|                                                                        |  | (Unaudited) 2007 |         |   | (Unaudited) 2006 |  
|Cash flows from operating activities                                    |  |                  |         |   |                  |   |        |  
|Net income                                                              |  | $                | 172     |   |                  | $ | 327    |  
|Adjustments to reconcile net income to net cash provided by operations: |  |                  |         |   |                  |   |        |  
|Depreciation                                                            |  |                  | 131     |   |                  |   | 126    |  
|Provision for loan losses                                               |  |                  | 86      |   |                  |   | 116    |  
|Increase in cash value of bank owned life insurance                     |  |                  | (39     | ) |                  |   | (38    | )
|Deferred income tax benefit                                             |  |                  | 41      |   |                  |   | (240   | )
|Income taxes payable                                                    |  |                  |        |   |                  |   |       |  
|Amortization of discount on securities, net                             |  |                  | 13      |   |                  |   | 17     |  
|Changes in assets and liabilities:                                      |  |                  |         |   |                  |   |        |  
|Trading assets                                                          |  |                  | (89     | ) |                  |   |       |  
|Accrued interest receivable                                             |  |                  | (67     | ) |                  |   | (108   | )
|Other assets                                                            |  |                  | (65     | ) |                  |   | (18    | )
|Accrued interest payable                                                |  |                  | 50      |   |                  |   | 35     |  
|Other liabilities                                                       |  |                  | (20     | ) |                  |   | (149   | )
|                                                                        |  |                  |         |   |                  |   |        |  
|Net cash provided by operating activities                               |  |                  | 213     |   |                  |   | 68     |  
|                                                                        |  |                  |         |   |                  |   |        |  
|Cash flows from investing activities                                    |  |                  |         |   |                  |   |        |  
|Net decrease in federal funds sold                                      |  |                  | 5,460   |   |                  |   | 3,347  |  
|Activity in trading securities:                                         |  |                  |         |   |                  |   |        |  
|Maturities                                                              |  |                  | 800     |   |                  |   |       |  
|Principal payments                                                      |  |                  | 804     |   |                  |   |       |  
|Activity in available-for-sale securities:                              |  |                  |         |   |                  |   |        |  
|Maturities                                                              |  |                  |        |   |                  |   | 908    |  
|Activity in held-to-maturity securities:                                |  |                  |         |   |                  |   |        |  
|Maturities                                                              |  |                  |        |   |                  |   | 37     |  
|Purchases of restricted equity securities                               |  |                  | (28     | ) |                  |   | (76    | )
|Net increase in loans                                                   |  |                  | (10,079 | ) |                  |   | (6,739 | )
|Purchases of property and equipment                                     |  |                  | (534    | ) |                  |   | (99    | )
|                                                                        |  |                  |         |   |                  |   |        |  
|Net cash used in investing activities                                   |  |                  | (3,577  | ) |                  |   | (2,622 | )
|                                                                        |  |                  |         |   |                  |   |        |  
|Cash flows from financing activities                                    |  |                  |         |   |                  |   |        |  
|Net increase in deposits                                                |  |                  | 5,775   |   |                  |   | 4,616  |  
|Proceeds from issuance of debt                                          |  |                  |        |   |                  |   | 6,200  |  
|Repayment of borrowings                                                 |  |                  | (1,500  | ) |                  |   | (6,200 | )
|Issuance of common stock, net of related costs                          |  |                  |        |   |                  |   | 5      |  
|                                                                        |  |                  |         |   |                  |   |        |  
|Net cash provided by financing activities                               |  |                  | 4,275   |   |                  |   | 4,621  |  
|                                                                        |  |                  |         |   |                  |   |        |  
|Net increase (decrease) in cash and cash equivalents                    |  |                  | 911     |   |                  |   | 2,067  |  
|                                                                        |  |                 
|Cash and cash equivalents, beginning                                    |  |                  | 5,114   |   |                  |   | 1,453  |  
|                                                                        |  |                  |         |   |                  |   |        |  
|Cash and cash equivalents, ending                                       |  | $                | 6,025   |   |                  | $ | 3,520  |  
|                                                                        |  |                  |         |   |                  |   |        |  
|Supplemental disclosure of cash flow information                        |  |                  |         |   |                  |   |        |  
|Interest paid                                                           |  | $                | 1,890   |   |                  | $ | 1,302  |  
|                                                                        |  |                  |         |   |                  |   |        |  
|Taxes paid                                                              |  | $                | 16      |   |                  | $ |       |  
|                                                                        |  |                  |         |   |                  |   |        |  
|Supplemental disclosure of noncash activities                           |  |                  |         |   |                  |   |        |  
|Other real estate acquired in settlement of loans                       |  | $                |        |   |                  | $ | 114    |  
|                                                                        |  |                  |         |   |                  |   |        |  

See Notes to Unaudited Financial Statements



Page 7



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##### Table of Contents

Notes to Unaudited Financial Statements

Note 1. Organization and Summary of Significant Accounting Policies

Organization

Bank of Oak Ridge (the
Bank) was incorporated on April 6, 2000 as a North Carolina-chartered commercial bank, and opened for business on April 10, 2000. Our deposits are insured under the Federal Deposit Insurance Corporations
(FDIC) Bank Insurance Fund to the maximum amount permitted by law. Our operations are primarily retail oriented and directed toward individuals and small- and medium-sized businesses located in the Banks market, which is defined as
the Piedmont Triad area in North Carolina. The Bank offers a wide range of banking services, including checking, certificates of deposit, savings accounts, commercial and consumer loans and mortgages. The Bank also generates certificates of deposit
on the Internet through the advertising of our deposit rates on Index Powered Financial Services, LLCs Qwick-Rate CD Clearinghouse.

The Banks primary sources of revenue are interest income from its commercial and real estate lending activities and, to a lesser extent, from its investment portfolio. The Bank also earns fees from lending and deposit activities. The
major expenses of the Bank are interest on deposits and general and administrative expenses, such as salaries and related expenses.

The
accounting and reporting policies of the Bank follow generally accepted accounting principles and general practices within the financial services industry.

The unaudited financial statements of the Bank have been prepared in accordance with instructions from Form 10-QSB. Accordingly, they do not include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting solely of normal recurring adjustments) considered necessary for a fair presentation have been included.

The results of operations for the three months ended March 31, 2007 are not necessarily indicative of the results to be expected for the year ending
December 31, 2007. The financial statements and notes should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2006 filed on form 10-KSB.

The Bank defines cash equivalents as cash and due from banks and interest-bearing deposits with banks.

Certain reclassifications have been made to the prior periods financial statements to place them on a comparable basis with the current year. Net
income and stockholders equity previously reported were not affected by these reclassifications.

Note 2. Earnings Per Share

Basic Earnings per Share

Basic earnings per
share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding during the period, after giving retroactive effect to stock splits and dividends.

Diluted Earnings per Share

The computation of
diluted earnings per share is similar to the computation of basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if dilutive potential common shares had
been issued. The numerator is adjusted for any changes in income or loss that would result from the assumed conversion of those potential common shares.



Page 8



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##### Table of Contents

Notes to Unaudited Financial Statements

Note 3. Critical Accounting Policies

The Banks financial statements are prepared in accordance
with accounting principles generally accepted in the United States (GAAP). The notes to the audited financial statements included in the Banks Annual Report on Form 10-KSB for the year ended December 31, 2006 contain a summary of its
significant accounting policies. Management believes the Banks policies with respect to the methodology for the determination of the allowance for loan losses, and asset impairment judgments, such as the recoverability of intangible assets,
involve a higher degree of complexity and require management to make difficult and subjective judgments that often require assumptions or estimates about highly uncertain matters. Accordingly, the Bank considers the policies related to those areas
as critical.

The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses
charged to earnings. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance.

The allowance for loan losses is evaluated on a regular basis by management and is based upon managements periodic review of the collectibility of
the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrowers ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This
evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

The allowance consists of specific, general and unallocated components. The specific component relates to loans that are classified as impaired. For such loans, an allowance is established when the collateral value or observable market
price of the impaired loan is lower than the carrying value of that loan. The general component covers non-impaired loans and is based on the historical loss experience adjusted for qualitative factors. An unallocated component is maintained to
cover uncertainties that could affect managements estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating
specific and general losses in the portfolio.

A loan is considered impaired when, based on current information and events, it is probable
that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral
value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance
of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrowers prior
payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and construction loans by either the present value of expected future cash flows discounted
at the loans effective interest rate, the loans obtainable market price, or the fair value of the collateral if the loan is collateral dependent.

Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Bank does not separately identify individual consumer and residential loans for impairment disclosures.

Note 4. Stock-based Compensation

The
Bank has adopted both the Employee Stock Option Plan (Incentive Plan) and the Director Stock Option Plan (Nonstatutory Plan). Under each plan up to 178,937 shares may be issued for a total of 357,874 shares. Options granted under both
plans expire no more than 10 years from date of grant. Option exercise price under both plans shall be set by a committee of the Board of Directors at the date of grant, but shall not be less than 100 percent of fair market value at the date of the
grant. Options granted under either plan vest according to the terms of each particular grant.



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##### Table of Contents

Notes to Unaudited Financial Statements

Note 4. Stock-based Compensation, continued

Activity under the Bank plans during the three months ended
March 31, 2007 is summarized below:



|                                  |  |                     |  |         |                   |  |                     |  |        
|--------------------------------- |  | ------------------- |  | ------- | ----------------- |  | ------------------- |  | -------
|                                  |  | Incentive Plan      |  |         | Nonstatutory Plan
|                                  |  | Available For Grant |  | Granted |                   |  | Available For Grant |  | Granted
|Balance, December 31, 2006        |  | 950                 |  | 177,187 |                   |  | 3                   |  | 178,934
|                                  |  |                     |  |        
|Additional options made available |  |                     |  |         |                   |  |                     |  |        
|Granted                           |  |                    |  |        |                   |  |                    |  |       
|Exercised                         |  |                    |  | (50     | )                 |  |                    |  |       
|Forfeited                         |  | 200                 |  | (200    | )                 |  |                    |  |       
|Expired                           |  |                    |  |        |                   |  |                    |  |       
|                                  |  |                     |  |         |                   |  |                     |  |        
|Balance, March 31, 2007           |  | 1,150               |  | 176,937 |                   |  | 3                   |  | 178,934
|                                  |  |                     |  |         |                   |  |                     |  |        

The intrinsic value and the cash received from the options exercised during the three months ended March 31,
2007 was $40 and $560, respectively.

A stock option may be exercised, in whole or in part, by giving written notice of exercise to the
Corporate Secretary of the Bank, or such other officer of the Bank as the Committee shall designate, specifying the number of shares to be purchased along with payment in full of the exercise price. The Committee may, in the relevant award
agreement, also permit a participant (either on a selective or group basis) to simultaneously exercise stock options and sell the shares of common stock thereby acquired, and use the proceeds from such sale as payment of the exercise price of such
stock options. Payment instruments shall be received by the Bank subject to collection. The proceeds received by the Bank upon exercise of any stock option may be used by the Bank for general corporate purposes.

Information regarding the stock options outstanding at March 31, 2007 is as follows (dollars in thousands):



|                         |  |                                    |  |                                             |  |                                 |       |                           |   |    
|------------------------ |  | ---------------------------------- |  | ------------------------------------------- |  | ------------------------------- | ----- | ------------------------- | - | ---
|Range of Exercise Prices |  | Number Outstanding and Exercisable |  | Weighted Average Remaining Contractual Life |  | Weighted Average Exercise Price |       | Aggregate Intrinsic Value
|$8.80-9.99               |  | 102,888                            |  | 4.08 Years                                  |  | $                               | 8.80  |                           | $ | 329
|$10.00-10.39             |  | 142,606                            |  | 7.42 Years                                  |  | $                               | 10.00 |                           |   | 285
|$10.40-11.20             |  | 110,377                            |  | 7.30 Years                                  |  | $                               | 10.72 |                           |   | 141
|                         |  |                                    |  |                                             |  |                                 |       |                           |   |    
|                         |  | 355,871                            |  | 6.42 Years                                  |  | $                               | 9.88  |                           | $ | 755
|                         |  |                                    |  |                                             |  |                                 |       |                           |   |    



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##### Table of Contents

Notes to Unaudited Financial Statements

Note 5. Recent Accounting Pronouncements

In September 2006, the FASB issued SFAS No. 157,
Fair Value Measurements. SFAS No. 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements. SFAS No. 157 is effective
for financial statements issued for fiscal years beginning after November 15, 2007 with earlier application encouraged. In September 2006, the FASB issued SFAS No. 157 which defines fair value, establishes a consistent framework for
measuring fair value in Generally Accepted Accounting Principles, and expands disclosure requirements about fair value measurements. SFAS No. 157 among other things requires us to maximize the use of observable inputs and minimize the use of
unobservable inputs when measuring fair value.

Valuation techniques are based upon observable and unobservable inputs. Observable inputs
reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. These two types of inputs create the following fair value hierarchy:



|           |  |                                                                                                                                                                                                      
|---------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Level 1  - |  | Quoted prices for identical instruments in active markets.                                                                                                                                           
|Level 2  - |  | Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are
observable.
|Level 3  - |  | Instruments whose significant value drivers are unobservable.                                                                                                                                        

The Bank adopted SFAS No. 157 in the first quarter of 2007. Listed below are disclosures
related to SFAS No. 157:



|                   |  |                                           |        |                                                                |   |                                               |  |                                           |   |  |   |  
|------------------ |  | ----------------------------------------- | ------ | -------------------------------------------------------------- | - | --------------------------------------------- |  | ----------------------------------------- | - |  | - | -
|                   |  | Fair Value Measurements at March 31, 2007
|Description        |  | Fair Value Measurements 3/31/07           |        | Quoted Prices in Active Markets for
Identical Assets (Level 1) |   | Significant Other Observable Inputs (Level
2) |  | Significant Unobservable Inputs (Level 3)
|                   |  | (Dollars in thousands)                   
|Trading securities |  | $                                         | 23,407 |                                                                | $ | 23,407                                        |  | $                                         |  |  | $ | 

As of March 31, 2007, the Bank elected the fair value option under SFAS No. 157 for its
trading assets, securities available-for-sale and securities held-to-maturity. The change in the fair value for the 3-month period ended March 31, 2007 for trading assets was $89,000. This change was included in current period earnings.

Any investment security purchased is classified in one of the following categories: 1) trading, 2) available-for-sale, or 3)
held-to-maturity. Prior to our early adoption of SFAS No. 159, the majority of the securities in our portfolio had been classified as available-for-sale, while no securities were classified in the trading category. Available-for-sale securities
are reviewed regularly, and any unrealized gains or losses are recorded in comprehensive income in the shareholders equity account. In contrast, any change in market value of trading securities during the period is reflected in current period
income. Generally, falling interest rates will increase the market values of securities, thus enhancing the amounts recorded as gains or reducing losses, while rising rates will have the opposite effect. The passage of time partially counteracts
these interest rate effects, as the unrealized gain or loss on a given security will gradually decline to zero as the security approaches its maturity date.



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##### Table of Contents

Notes to Unaudited Financial Statements

Note 5. Recent Accounting Pronouncements, continued

In February 2007, the FASB issued SFAS
No. 159, Fair Value Option for Financial Assets and Financial Liabilities  Including an amendment of SFAS Statement No. 115. This statement permits, but does not require, entities with an opportunity to mitigate volatility in
reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions. Entities electing this option will apply it when the entity first recognizes an eligible instrument and
will report unrealized gains and losses on such instruments in current earnings. This statement 1) applies to all entities, 2) specifies certain election dates, 3) can be applied on an instrument-by-instrument basis with some exceptions, 4) is
irrevocable and 5) applies only to entire instruments. One exception is demand deposit liabilities which are explicitly excluded as qualifying for fair value. With respect to SFAS No. 115, available-for-sale and held-to-maturity securities at
the effective date are eligible for the fair value option at that date. If the fair value option is elected for those securities at the effective date, cumulative unrealized gains and losses at that date shall be included in the cumulative-effect
adjustment and thereafter, such securities will be accounted for as trading securities. SFAS No. 159 is effective for the Bank on January 1, 2008. Earlier adoption is permitted as of January 1, 2007 if the Bank also elects to apply
the provisions of SFAS No. 157, Fair Value Measurement. The Bank did adopt SFAS No. 159 as of January 1, 2007. Upon adoption of SFAS No. 159, the Bank selected the fair value option for its entire available-for-sale
and held-to-maturity securities portfolio consisting of government sponsored enterprise and mortgage-backed securities with a fair market value of January 1, 2007 of $25.0 million. Listed below are the financial details of the early adoption of
SFAS No. 159:



| | As of January 1, 2007, the Bank elected the fair value option for its entire securities portfolio which had a fair market value of $25.0 million as of that date;
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------



| | As a result of the above election, the Banks entire securities portfolio was reclassified from available-for-sale and held-to-maturity categories to the trading category;
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | The initial adoption of SFAS No. 159 had a minimal negative impact on total stockholders equity of $48,000 due to the reclassification of the Banks held-to-maturity
category to the trading category;
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | The cumulative-effect adjustment of $393,000, representing the unrealized loss on the Banks entire securities portfolio (net of tax), was reclassified from accumulated other
comprehensive loss as a reduction of Retained Earnings, on January 1, 2007; and
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | First quarter 2007 net income includes a pre-tax gain of $89,000, representing the change in fair value from January 1, 2007 to March 31, 2007 of the $23.4 million of
securities measured under SFAS No. 159.
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Sometime in the second quarter of 2007, the Bank plans to sell its entire
investment securities portfolio and reinvest the proceeds of the sale in a different securities portfolio. The Bank believes its early adoption of the accounting standard will have a positive impact on its ability to manage the interest rate risk on
its balance sheet by lengthening the duration of its portfolio, and will simplify the accounting for its investment portfolio by reducing the number of purchased securities from what it presently owns. Adoption of the accounting standard will
potentially benefit interest income, net income and basic and diluted earnings per share during the remainder of 2007 and future periods.

On January 1, 2007, the Bank adopted Financial Accounting Standards Interpretation No. 48, Accounting for Uncertainty in Income Taxes (FIN 48). FIN 48 clarifies the accounting for uncertainty in income taxes recognized in
an enterprises financial statements in accordance with FASB Statement No. 109, Accounting for Income Taxes. FIN 48 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement
of a tax position taken or expected to be taken in a tax return. FIN 48 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosures and transition.



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##### Table of Contents

Notes to Unaudited Financial Statements

Note 5. Recent Accounting Pronouncements, continued

There was no cumulative effect adjustment on
adoption of FIN 48. Accordingly, the Bank had no unrecognized tax benefits or associated interest or penalties at adoption or at March 31, 2007. Years ending December 31, 2003 through December 31, 2006 remain open for audit for all
major jurisdictions. The Banks policy is to classify any interest or penalties recognized in accordance with FIN 48 as interest expense or an expense other than income tax expense, respectively.



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##### Table of Contents

Managements Discussion and Analysis of Financial Condition and Results of Operations

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

Comparison of Financial Condition at March 31,
2007 and December 31, 2006

The Banks assets increased from $207.1 million to $211.6 million, up $4.5 million, or 2 percent,
from December 31, 2006 to March 31, 2007. The majority of the increase in assets was due to increases in net loans, cash and due from banks, and trading assets; offset by decreases in securities available-for-sale and held-to-maturity
securities, and federal funds sold. The increase in trading assets and decreases in available-for-sale and held-to-maturity securities were due to the Banks early adoption of SFAS No. 159 and No. 157.

Loans

Net loans totaled $167.7 million at the end of
the 2007 first quarter, up $10.0 million, or 6 percent, from $157.7 million at December 31, 2006. The average yield on loans was 8.23 percent for the 2007 first quarter, up 52 basis points from 7.71 percent for the same period in 2006.

Investments

Investments, which
consist of interest-bearing deposits with banks, federal funds sold, trading assets, securities available-for-sale and held-to-maturity, and Federal Home Loan Bank stock, totaled $26.1 million at the end of the 2007 first quarter, down $7.6 million,
or 23 percent, from $33.7 million at December 31, 2006. The biggest component of the total decline was a $5.5 million decline in federal funds sold, with the majority of the remaining net decrease of $1.6 million in trading assets, securities
available-for-sale, and securities held-to-maturity. The average yield on investments was 4.48 percent for the 2007 first quarter, up 10 basis points from 4.38 percent for the 2006 first quarter.

Deposits

Deposits totaled $178.1 million at the end
of the 2007 first quarter, up $5.8 million, or 3 percent, from $172.3 million at December 31, 2006. The increase in deposits assisted in funding the banks loan growth. The average cost of interest-bearing deposits was 4.37 percent for the
2007 first quarter, up 77 basis points from 3.60 percent for the 2006 first quarter.

Borrowings

Borrowings totaled $16.0 million at the end of the 2007 first quarter, down $1.5 million, or 9 percent, from $17.5 million at December 31, 2006. The
average cost of other borrowings was 5.30 percent for the 2007 first quarter, up 76 basis points from 4.54 percent for the 2006 first quarter.

Stockholders Equity

Stockholders equity totaled $16.6 million at the end of the 2007 first quarter, up
$100,000, or 1 percent, from $16.5 million at December 31, 2006. Part of the increase resulted from net income of $172,000, with the remaining increase due to the early adoption of SFAS No. 159. The early adoption had a negative impact on
total stockholders equity of $48,000 due to the reclassification of the Banks securities from the held-to-maturity category to the trading category. Additionally, the cumulative-effect adjustment of $393,000, representing the unrealized
loss on the Banks entire securities portfolio (net of tax), was reclassified from accumulated other comprehensive loss as a reduction of retained earnings, on January 1, 2007.

Nonperforming Assets

Nonaccrual and accruing loans greater than 90 days past due totaled $649,000 at
March 31, 2007, up $296,000, or 84 percent, from $353,000 at December 31, 2006. Approximately $518,000 of the total outstanding balance of nonaccrual and accruing loans greater than 90 days is to one borrower secured by a 1-4 family
residence. The Bank has foreclosed and sold the residence, and is in the process of collecting the remaining balance from a willing and able guarantor. No loss is expected on this loan. The remaining $131,000 of the total outstanding balance of
nonaccrual and accruing loans greater than 90 days are two loans secured by 1-4 family residences that are in the process of foreclosure. No loss is expected on the disposition of these loans. Therefore, management believes that the loan loss
reserves allocated to these loans are adequate to cover any anticipated losses. Nonperforming loans to total loans were 0.38 percent and 0.22 percent at March 31, 2007 and December 31, 2006, respectively.



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##### Table of Contents

Managements Discussion and Analysis of Financial Condition and Results of Operations

Operating Results for the three months ended March 31, 2007 and 2006

Net Income.

The Bank recorded net income of $172,000 and $327,000 for the three months ended March 31, 2007 and 2006,
respectively.

Net Interest Income

The
Banks net interest income in the first quarter of 2007 was $1.8 million, up $255,000, or 17 percent, from $1.5 million in the first quarter of 2006. The net interest margin in the first quarter of 2007 was 3.71 percent, compared with 3.76
percent for the same period in 2006. The 5 basis point decrease in the net interest margin in the first quarter of 2007 over the same period in 2006 is primarily a result of a 69 basis point increase in earning asset yields, offset by a 75 basis
point increase in funding costs. Average interest-earning assets increased $30.0 million, and average interest-bearing liabilities increased $30.1 million from the first quarter of 2006 to the same period in 2007.

Provision for Loan Losses

The provision for loan
losses decreased to $86,000 for the three months ended March 31, 2007 compared to $116,000 for the same period in the prior year. Provisions for loan losses are charged to income to bring the allowance for loan losses to a level we deem
appropriate. In evaluating the allowance for loan losses, we consider factors that include growth and composition of the loan portfolio, historical loan loss experience, individual loans that may have estimated losses, and other relevant factors.
The primary reason for the decreased provision from 2006 to 2007 was a decrease in the allowance for loan losses from 1.17 percent to 1.07 percent of loans from March 31, 2006 to March 31, 2007, respectively. The decrease in the allowance
for loan losses to total loans was based on our assessment of the strong credit quality of the Banks current loan portfolio as well as a low level of charge offs in the last three fiscal years. The allowance for loan losses to total loans was
1.06, 1.07 and 1.17 percent at March 31, 2007, December 31, 2006 and March 31, 2006, respectively.

Noninterest Income

Noninterest income totaled $579,000 for the 2007 first quarter, up $66,000, or 13 percent, from $513,000 for the 2006 first quarter.
Increases from 2006 to 2007 in service charges on deposit accounts, mortgage loan origination fees, income earned on bank owned life insurance, gain on trading activity, and other noninterest income of $20,000, $34,000, $1,000, $89,000 and $19,000,
respectively, accounted for the majority of the total increase in noninterest income. These increases were offset by decreases in investment and insurance commissions and fee income from accounts receivable financing of $92,000 and $5,000,
respectively. The increase in gain on trading activity was a result of the Banks early adoption of SFAS No. 159 on January 1, 2007. The large decrease in investment and insurance commissions from 2006 to 2007 was partly due to the
Banks financial advisors and their administrative team focusing on the successful conversion to a new broker-dealer that occurred in early March of 2007.

Noninterest Expense

Noninterest expense totaled $2.0 million for the 2007 first quarter, up $424,000, or 27 percent, from
$1.6 million for the 2006 first quarter. Salaries and employee benefits increased $223,000, or 26 percent, to $1.1 million compared to the first quarter of 2006, due to a higher number of bank employees required to support the Banks growth as
well as the 6.5 hours per week increase in operating hours that occurred in October of 2006 in conjunction with the introduction of the Banks Open Early, Open Late and 6-Day Branch Banking at all Locations strategies.
Additionally, the Bank opened its fourth banking office in June of 2006. The employees associated with this location also contributed to the increase in salaries and employee benefits from 2006 to 2007. Other expense increased $162,000, or 160
percent, to $263,000 compared to the first quarter of 2006, largely due to increases in directors fees, insurance expense, charitable contributions, employee related activities, and deposit account charge offs. Telecommunications expense
increased $29,000, or 88 percent, to $62,000 compared to the first quarter of 2006, largely due to the Banks continuing investment in increased bandwidth to make employees more efficient and productive. Monetary increases in the remaining
noninterest expense categories were not significant. Professional and advertising expenses decreased $20,000, or 8 percent, to $219,000 compared to the first quarter of 2006, largely due to lower advertising expenditures in the first quarter of 2007
compared to the same period in 2006.



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##### Table of Contents

Managements Discussion and Analysis of Financial Condition and Results of Operations

Forward-looking Information

This form contains certain
forward-looking statements with respect to the financial condition, results of operations and business of the Bank. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of management of the
Bank and on the information available to management at the time that these disclosures were prepared. These statements can be identified by the use of words like expect, anticipate, estimate and
believe, variations of these words and other similar expressions. Readers should not place undue reliance on forward-looking statements as a number of important factors could cause actual results to differ materially from those in the
forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, (1) competition in the Banks markets, (2) changes in the interest rate environment, (3) general national,
regional or local economic conditions may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and the possible impairment of collectibility of loans, (4) legislative or regulatory changes,
including changes in accounting standards, (5) significant changes in the federal and state legal and regulatory environment and tax laws, (6) the impact of changes in monetary and fiscal policies, laws, rules and regulations and
(7) other risks and factors identified in the Banks other filings with the Federal Deposit Insurance Corporation. The Bank undertakes no obligation to update any forward-looking statements.



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##### Table of Contents

Item 3. Controls and Procedures

The Banks management, under the supervision and with the participation of the
Chief Executive Officer and the Chief Financial Officer of the Bank (its principal executive officer and principal financial officer, respectively) have concluded based on their evaluation as of the end of the period covered by this Report, that the
Banks disclosure controls and procedures are effective to ensure that information required to be disclosed by the Bank in the reports filed or submitted by it under the Securities Exchange Act of 1934, as amended, is recorded, processed,
summarized and reported within the time periods specified in the applicable rules and forms, and include controls and procedures designed to ensure that information required to be disclosed by the Bank in such reports is accumulated and communicated
to the Banks management, including the Chief Executive Officer and the Chief Financial Officer of the Bank, as appropriate to allow timely decisions regarding required disclosure excluding one issue related to an independent review of the
Banks income tax expense calculation and related disclosures which was discovered during the preparation of the Banks 2006 financial statements. In the first quarter of 2007 the Bank implemented the independent review to strengthen its
controls with respect to this issue.

Other than the issue noted above, there have been no significant changes in internal control over
financial reporting during the period covered by this Report that have materially affected, or are reasonably likely to materially affect, the Banks internal control over financial reporting.



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##### Table of Contents

Bank of Oak Ridge

Part II. Other Information

Item 6. Exhibits

13(a) Exhibits



|                  |  |                                                                                                                                                                                                                 
|----------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit (3)(i)    |  | Articles of Incorporation, incorporated herein by reference to Exhibit 3(i) to the Form 10-SB filed with the FDIC on April 30, 2001, as amended January 25, 2002.                                               
|                  | 
|Exhibit (3)(ii)   |  | Articles of Amendment, incorporated herein by reference to Exhibit 3(ii) to the Form 10-QSB filed with the FDIC on August 13, 2004.                                                                             
|                  | 
|Exhibit (3)(iii)  |  | Bylaws, incorporated herein by reference to Exhibit 3(ii) to the Form 10-SB filed with the FDIC on April 30, 2001, as amended January 25, 2002.                                                                 
|                  | 
|Exhibit 4         |  | Specimen Stock Certificate, incorporated herein by reference to Exhibit 4 to the Form 10-SB filed with the FDIC on April 30, 2001, as amended January 25, 2002 and December 23,
2005.                           
|                  | 
|Exhibit (10)(i)   |  | Employment Agreement with Ronald O. Black, incorporated herein by reference to Exhibit 10(i) to the Form 10-SB filed with the FDIC on April 30, 2001, as amended January 25, 2002 and December 23,
2005.        
|                  | 
|Exhibit (10)(ii)  |  | Employment Agreement with L. William Vasaly, III, incorporated herein by reference to Exhibit 10(ii) to the Form 10-SB filed with the FDIC on April 30, 2001, as amended January 25, 2002 and
December 23, 2005.
|                  | 
|Exhibit (10)(iii) |  | Employment Agreement with Thomas W. Wayne, incorporated herein by reference to Exhibit (iii) to the Form 10-KSB filed with the FDIC on March 31, 2005, as amended on December 23,
2005.                         
|                  | 
|Exhibit (10)(iv)  |  | Outparcel Ground Lease between J.P. Monroe, L.L.C. and Bank of Oak Ridge dated June 1, 2002, incorporated herein by reference to Exhibit 10(v) to the Form 10-QSB filed with the FDIC on August
14, 2002.       



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##### Table of Contents

|                   |  |                                                                                                                                                                                                                                                            
|------------------ |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                   | 
|Exhibit (10)(v)    |  | Ground and Building Lease between KRS of Summerfield, LLC and Bank of Oak Ridge dated September 25, 2002, incorporated herein by reference to Exhibit 10(vi) to the Form 10-QSB filed with
the FDIC on November 14, 2002.                                  
|                   | 
|Exhibit (10)(vi)   |  | Ground Lease between Friendly Associates XVIII LLLP and Bank of Oak Ridge dated September 13, 2004, incorporated herein by reference to Exhibit (10)((vi) to the Form 10-KSB filed with the FDIC
on March 31, 2005.                                        
|                   | 
|Exhibit (10)(vii)  |  | Bank of Oak Ridge Director Stock Option Plan, incorporated herein by reference to Exhibit 10(iv) to the Form 10-SB filed with the FDIC on April 30, 2001, as amended January 25,
2002.                                                                     
|                   | 
|Exhibit (10)(viii) |  | Bank of Oak Ridge Employee Stock Option Plan, incorporated herein by reference to Exhibit 10(v) to the Form 10-SB filed with the FDIC on April 30, 2001, as amended January 25,
2002.                                                                      
|                   | 
|Exhibit (10)(ix)   |  | Bank of Oak Ridge Second Amended and Restated Director Stock Option Plan (amended March 16, 2004; approved by stockholders June 8, 2004), incorporated herein by reference to Exhibit 10(vii) to
the Form 10-QSB filed with the FDIC on August 13, 2004.   
|                   | 
|Exhibit (10)(x)    |  | Bank of Oak Ridge Second Amended and Restated Employee Stock Option Plan (amended March 16, 2004; approved by stockholders June 8, 2004), incorporated herein by reference to Exhibit (10)(viii)
to the Form 10-QSB filed with the FDIC on August 13, 2004.
|                   | 
|Exhibit (10)(xi)   |  | Salary continuation agreements with Ronald O. Black, L. William Vasaly III and Thomas W. Wayne dated January 20, 2006, incorporated herein by reference to Exhibits 10(xii), 10(xiii) and 10(xiv)
to the Form 8-K filed with the FDIC on January 23, 2006. 
|                   | 
|Exhibit (10)(xii)  |  | Bank of Oak Ridge 2006 Annual Incentive Plan incorporated herein by reference to Exhibit 10(xii) to the Form 10-KSB filed with the FDIC on March 27, 2007.                                                                                                 
|                   | 
|Exhibit (10)(xiii) |  | Oak Ridge Financial Services, Inc. Long Term Incentive Plan.                                                                                                                                                                                               
|                   | 
|Exhibit (14)       |  | Code of Ethics for Senior Officers Policy incorporated herein by reference to Exhibit 14 to the Form 10-KSB filed with the FDIC on March 30, 2004.                                                                                                         
|                   | 
|Exhibit (31.1)     |  | Certification of Ronald O. Black.                                                                                                                                                                                                                          
|                   | 
|Exhibit (31.2)     |  | Certification of Thomas W. Wayne.                                                                                                                                                                                                                          
|                   | 
|Exhibit (32)       |  | Certificate of Periodic Financial Report Pursuant to 18 U.S.C. Section 1350.                                                                                                                                                                               



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##### Table of Contents

Bank of Oak Ridge

Signatures

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



|                   |  |                                      
|------------------ |  | -------------------------------------
|                   |  | Bank of Oak Ridge                    
|                   |  | (Registrant)                         
|                   | 
|Date: May 11, 2007 |  | /s/ Ronald O. Black                  
|                   |  | Ronald O. Black                      
|                   |  | President and Chief Executive Officer
|                   |  | (Duly Authorized Representative)     
|                   | 
|Date: May 11, 2007 |  | /s/ Thomas W. Wayne                  
|                   |  | Thomas W. Wayne                      
|                   |  | Chief Financial Officer              



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