**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**FORM      10-Q**

| x      | Quarterly                Report pursuant to Section 13 or 15 (d) of the Securities Exchange                Act of                1934 for the quarterly period ended June 30, 2006                 |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                               |
| o      | Transition                Report pursuant to Section 13 or 15(d) of the Securities Exchange                Act of                1934 for the transition period from _____ to                _____ |

**WGNB      CORP. **

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| Georgia                                 |   | 58-1640130                                          |
|-----------------------------------------|--------|-----------------------------------------------------|
| (State                of Incorporation) |   | (I.R.S.                Employer Identification No.) |

----

----

| Large                Accelerated filer  ̈ | Accelerated                filer  ̈ | Non-accelerated                filer ý |
|-----------------------------------------------|-----------------------------------------|---------------------------------------------|

| Class                                        | Outstanding                at August 11, 2006 |
|----------------------------------------------|-----------------------------------------------|
|                                         |                                          |
| Common                Stock, $1.25 par value | 3,332,989                                     |

----

**WGNB      CORP.**

**INDEX      TO FORM 10-Q**

| **Item                Number****in                Form 10-Q** |   |  **Description**                                                                                                                               |   |  **Page** |
|---------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|
|                                                          |   |                                                                                                                                                |   |           |
| **Part                I**                                     |   | **Financial                Information**                                                                                                            |   |           |
| Item                1.                                        |   | Financial                Statements                                                                                                                 |   | 1              |
|                                                          |   |                                                                                                                                                |   |           |
|                                                          |   | Consolidated                Balance Sheets at June 30, 2006 and December 31, 2005                                                                   |   |  2        |
|                                                          |   |                                                                                                                                                |   |           |
|                                                          |   | Consolidated                    Statements of Earnings for Three Months Ended June 30, 2006 and                    June 30,                    2005 |   | 3              |
|                                                          |   |                                                                                                                                                |   |           |
|                                                          |   | Consolidated                Statements of Comprehensive Income for Three Months Ended June 30,                2006                and June 30, 2005 |   | 4              |
|                                                          |   |                                                                                                                                                |   |           |
|                                                          |   | Consolidated                    Statements of Earnings for Six Months Ended June 30, 2006 and                    June 30,                    2005   |   | 5              |
|                                                          |   |                                                                                                                                                |   |           |
|                                                          |   | Consolidated                Statements of Comprehensive Income for Six Months Ended June 30,                2006 and                June 30, 2005   |   | 6              |
|                                                          |   |                                                                                                                                                |   |           |
|                                                          |   | Consolidated                    Statements of Cash Flows for Six Months Ended June 30, 2006 and June                    30, 2005               |   | 7              |
|                                                          |   |                                                                                                                                                |   |           |
|                                                          |   | Notes                to Consolidated Financial Statements                                                                                           |   | 9              |
|                                                          |   |                                                                                                                                                |   |           |
| Item                2.                                        |   | Management’s                Discussion and Analysis of Financial Condition and Results of                Operations                           |   | 12             |
|                                                          |   |                                                                                                                                                |   |           |
| Item                3.                                        |   | Quantitative                and Qualitative Disclosures About Market Risk                                                                           |   | 18             |
|                                                          |   |                                                                                                                                                |   |           |
| Item                4.                                        |   | Controls                and Procedures                                                                                                              |   | 19             |
|                                                          |   |                                                                                                                                                |   |           |
| **Part                II**                                    |   | **Other                Information**                                                                                                                |   |           |
|                                                          |   |                                                                                                                                                |   |           |
| Item                1.                                        |   | Legal                Proceedings                                                                                                                    |   | 20             |
|                                                          |   |                                                                                                                                                |   |           |
| Item                1A.                                       |   | Risk                Factors                                                                                                                         |   | 20             |
|                                                          |   |                                                                                                                                                |   |           |
| Item                2.                                        |   | Unregistered                Sales of Equity Securities and Use of Proceeds                                                                          |   | 20             |
|                                                          |   |                                                                                                                                                |   |           |
| Item                3.                                        |   | Defaults                Upon Senior Securities                                                                                                      |   | 20             |
|                                                          |   |                                                                                                                                                |   |           |
| Item                4.                                        |   | Submission                of Matters to a Vote of Security Holders                                                                                  |   | 20             |
|                                                          |   |                                                                                                                                                |   |           |
| Item                5.                                        |   | Other                Information                                                                                                                    |   | 20             |
|                                                          |   |                                                                                                                                                |   |           |
| Item                6.                                        |   | Exhibits                                                                                                                                            |   | 21             |
|                                                          |   |                                                                                                                                                |   |           |
|                                                          |   | Signatures                                                                                                                                          |   | 22             |

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**Part      I - Financial Information**

**Item      1.**
**Financial      Statements**

----

**WGNB      CORP.**

**Consolidated      Balance Sheets**

**As      of June 30, 2006 and December 31, 2005**

|                                                                                                          |   |                                                |        |
|---------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|-------------|
|                                                                                                          |   | June                30,   2006(unaudited) |        | December                31, 2005(audited) |   |
| Assets                                                                                                        |   |
|                                                                                                          |   |                                                |        |   |   |
| Cash                and due from banks                                                                        |   | $                                                   | 22,161,360  |   |   | 10,673,541 |   |
| Federal                funds sold                                                                             |   |                                                | 544,301     |   |   | 5,548,348 |   |
|                                                                                                          |   |                                                |        |   |   |   |   |
| Cash                and cash equivalents                                                                      |   |                                                | 22,705,661  |   |   | 16,221,889 |   |
|                                                                                                          |   |                                                |        |   |   |   |   |
| Securities                available for sale                                                                  |   |                                                | 55,174,702  |   |   | 64,359,833 |   |
| Securities                held to maturity, estimated fair values                of $8,090,000 and $6,840,000 |   |                                                | 8,089,698   |   |   | 6,736,552 |   |
| Loans,                net                                                                                     |   |                                                | 445,842,630 |   |   | 417,551,614 |   |
| Premises                and equipment, net                                                                    |   |                                                | 9,246,628   |   |   | 9,134,245 |   |
| Accrued                interest receivable                                                                    |   |                                                | 3,143,609   |   |   | 2,881,206 |   |
| Other                assets                                                                                   |   |                                                | 8,560,837   |   |   | 6,758,048 |   |
|                                                                                                          |   |                                                |        |   |   |   |   |
|                                                                                                          |   | $                                                   | 552,763,765 |   |   | 523,643,387 |   |
|                                                                                                          |   |                                                |        |   |   |   |   |
| Liabilities                and Stockholders’ Equity                                                     |
|                                                                                                          |   |                                                |        |   |   |   |   |
| Deposits:                                                                                                     |   |                                                |        |   |   |   |   |
| Demand                                                                                                        |   | $                                                   | 54,779,509  |   |   | 48,178,654 |   |
| Interest                bearing demand                                                                        |   |                                                | 139,409,474 |   |   | 156,804,968 |   |
| Savings                                                                                                       |   |                                                | 11,829,492  |   |   | 12,160,203 |   |
| Time                                                                                                          |   |                                                | 108,242,535 |   |   | 100,065,972 |   |
| Time,                over $100,000                                                                            |   |                                                | 128,397,320 |   |   | 111,839,648 |   |
|                                                                                                          |   |                                                |        |   |   |   |   |
| Total                deposits                                                                                 |   |                                                | 442,658,330 |   |   | 429,049,445 |   |
|                                                                                                          |   |                                                |        |   |   |   |   |
| Federal                Home Loan Bank advances                                                                |   |                                                | 52,000,000  |   |   | 42,000,000 |   |
| Federal                funds purchased                                                                        |   |                                                | 3,425,000   |   |   | - |   |
| Accrued                interest payable                                                                       |   |                                                | 2,534,723   |   |   | 2,133,858 |   |
| Other                liabilities                                                                              |   |                                                | 2,806,367   |   |   | 2,508,051 |   |
| Total                liabilities                                                                              |   |                                                | 503,424,420 |   |   | 475,691,354 |   |
|                                                                                                          |   |                                                |        |   |   |   |   |
| Commitments                and Contingencies                                                                  |   |                                                |        |   |   |   |   |
| Stockholders’                equity:                                                                    |   |                                                |        |   |   |   |   |
| Common                stock, $1.25 par value, 10,000,000 shares authorized;                                   |   |                                                |        |   |   |   |   |
| 3,332,070                and 3,325,196 shares issued and outstanding                                          |   |                                                | 4,165,088   |   |   | 4,156,495 |   |
| Additional                paid-in capital                                                                     |   |                                                | 4,652,361   |   |   | 4,881,728 |   |
| Retained                earnings                                                                              |   |                                                | 40,861,315  |   |   | 38,787,699 |   |
| Accumulated                other comprehensive income (loss)                                                  |   |                                                | (339,419    | ) |   | 126,111 |   |
|                                                                                                          |   |                                                |        |   |   |   |   |
| Total                stockholders’ equity                                                               |   |                                                | 49,339,345  |   |   | 47,952,033 |   |
|                                                                                                          |   |                                                |        |   |   |   |   |
|                                                                                                          |   | $                                                   | 552,763,765 |   |   | 523,643,387 |   |

*See      accompanying notes to unaudited consolidated financial      statements.*

----

**WGNB      CORP.**

**Consolidated      Statements of Earnings**

**For      the Three Months Ended June 30, 2006 and 2005**

**(unaudited)**

|                                                               |   |  For                the Three Months Ended |       |
|--------------------------------------------------------------------|--------|-------------------------------------------------|------------|
|                                                               |   | June                30, 2006                    |       | June                30, 2005 |   |
| Interest                income:                                    |   |                                            |       |   |   |
| Interest                and fees on loans                          |   | $                                               | 9,158,598  |   |   | 6,988,369 |   |
| Interest                on federal funds sold                      |   |                                            | 145,054    |   |   | 37,645 |   |
| Interest                on investment securities:                  |   |                                            |       |   |   |   |   |
| U.S.                Government agencies                            |   |                                            | 253,070    |   |   | 256,890 |   |
| State,                county and municipal                         |   |                                            | 364,698    |   |   | 415,811 |   |
| Other                                                              |   |                                            | 305,153    |   |   | 176,126 |   |
|                                                               |   |                                            |       |   |   |   |   |
| Total                interest income                               |   |                                            | 10,226,573 |   |   | 7,874,841 |   |
|                                                               |   |                                            |       |   |   |   |   |
| Interest                expense:                                   |   |                                            |       |   |   |   |   |
| Interest                on deposits:                               |   |                                            |       |   |   |   |   |
| Demand                                                             |   |                                            | 1,257,692  |   |   | 732,107 |   |
| Savings                                                            |   |                                            | 43,564     |   |   | 22,525 |   |
| Time                                                               |   |                                            | 2,454,168  |   |   | 1,581,823 |   |
| Interest                on FHLB and other borrowings               |   |                                            | 687,769    |   |   | 607,077 |   |
|                                                               |   |                                            |       |   |   |   |   |
| Total                interest expense                              |   |                                            | 4,443,193  |   |   | 2,943,532 |   |
|                                                               |   |                                            |       |   |   |   |   |
| Net                interest income                                 |   |                                            | 5,783,380  |   |   | 4,931,309 |   |
|                                                               |   |                                            |       |   |   |   |   |
| Provision                for loan losses                           |   |                                            | 415,000    |   |   | 500,000 |   |
|                                                               |   |                                            |       |   |   |   |   |
| Net                interest income after provision for loan losses |   |                                            | 5,368,380  |   |   | 4,431,309 |   |
|                                                               |   |                                            |       |   |   |   |   |
| Other                income:                                       |   |                                            |       |   |   |   |   |
| Service                charges on deposit accounts                 |   |                                            | 1,036,959  |   |   | 1,047,141 |   |
| Mortgage                origination fees                           |   |                                            | 93,110     |   |   | 105,254 |   |
| Miscellaneous                                                      |   |                                            | 373,681    |   |   | 307,681 |   |
|                                                               |   |                                            |       |   |   |   |   |
| Total                other income                                  |   |                                            | 1,503,750  |   |   | 1,460,076 |   |
|                                                               |   |                                            |       |   |   |   |   |
| Other                expenses:                                     |   |                                            |       |   |   |   |   |
| Salaries                and employee benefits                      |   |                                            | 2,425,546  |   |   | 2,192,569 |   |
| Occupancy                                                          |   |                                            | 609,579    |   |   | 537,214 |   |
| Other                operating                                     |   |                                            | 1,008,693  |   |   | 844,993 |   |
|                                                               |   |                                            |       |   |   |   |   |
| Total                other expenses                                |   |                                            | 4,043,818  |   |   | 3,574,776 |   |
|                                                               |   |                                            |       |   |   |   |   |
| Earnings                before income taxes                        |   |                                            | 2,828,312  |   |   | 2,316,609 |   |
|                                                               |   |                                            |       |   |   |   |   |
| Income                taxes                                        |   |                                            | 837,135    |   |   | 669,404 |   |
|                                                               |   |                                            |       |   |   |   |   |
| Net                earnings                                        |   | $                                               | 1,991,177  |   |   | 1,647,205 |   |
|                                                               |   |                                            |       |   |   |   |   |
| Basic                earnings per share                            |   | $                                               | 0.60       |   |   | 0.50 |   |
| Diluted                earnings per share                          |   | $                                               | 0.60       |   |   | 0.49 |   |
| Dividends                declared per share                        |   | $                                               | 0.2650     |   |   | 0.2250 |   |

*See      accompanying notes to unaudited consolidated financial      statements.*

----

**WGNB      CORP.**

**Consolidated      Statements of Comprehensive Income**

**For      the Three Months Ended June 30, 2006 and 2005**

**(unaudited)**

|                                                               |   |  For                the Three Months Ended |      |
|--------------------------------------------------------------------|--------|-------------------------------------------------|-----------|
|                                                               |   | June                30, 2006                    |      | June                30, 2005 |   |
|                                                               |   |                                            |      |   |   |
| Net                earnings                                        |   | $                                               | 1,991,177 |   |   | 1,647,205 |   |
| Other                comprehensive income (loss), net of tax:      |   |                                            |      |   |   |   |   |
| Unrealized                gains (losses) on investment             |   |                                            |      |   |   |   |   |
| securities                available for sale:                      |   |                                            |      |   |   |   |   |
| Unrealized                gains (losses) arising during the period |   |                                            | (694,123  | ) |   | 430,147 |   |
| Associated                benefit (taxes)                          |   |                                            | 236,002   |   |   | (146,250 | ) |
|                                                               |   |                                            |      |   |   |   |   |
| Other                comprehensive income (loss)                   |   |                                            | (458,121  | ) |   | 283,897 |   |
|                                                               |   |                                            |      |   |   |   |   |
| Comprehensive                income                                |   | $                                               | 1,533,056 |   |   | 1,931,102 |   |

*See      accompanying notes to unaudited consolidated financial statements.*

----

**WGNB      CORP.**

**Consolidated      Statements of Earnings**

**For      the Six Months Ended June 30, 2006 and 2005**

**(unaudited)**

|                                                               |   |  For                the Six Months Ended |       |
|--------------------------------------------------------------------|--------|-----------------------------------------------|------------|
|                                                               |   | June                30, 2006                  |       | June                30, 2005 |   |
| Interest                income:                                    |   |                                          |       |   |   |
| Interest                and fees on loans                          |   | $                                             | 17,562,156 |   |   | 13,167,003 |   |
| Interest                on federal funds sold                      |   |                                          | 256,494    |   |   | 88,956 |   |
| Interest                on investment securities:                  |   |                                          |       |   |   |   |   |
| U.S.                Government agencies                            |   |                                          | 545,872    |   |   | 512,596 |   |
| State,                county and municipal                         |   |                                          | 730,075    |   |   | 828,275 |   |
| Other                                                              |   |                                          | 596,253    |   |   | 352,970 |   |
|                                                               |   |                                          |       |   |   |   |   |
| Total                interest income                               |   |                                          | 19,690,850 |   |   | 14,949,800 |   |
|                                                               |   |                                          |       |   |   |   |   |
| Interest                expense:                                   |   |                                          |       |   |   |   |   |
| Interest                on deposits:                               |   |                                          |       |   |   |   |   |
| Demand                                                             |   |                                          | 2,410,926  |   |   | 1,238,027 |   |
| Savings                                                            |   |                                          | 87,165     |   |   | 37,404 |   |
| Time                                                               |   |                                          | 4,664,863  |   |   | 2,855,707 |   |
| Interest                on FHLB and other borrowings               |   |                                          | 1,312,683  |   |   | 1,183,950 |   |
|                                                               |   |                                          |       |   |   |   |   |
| Total                interest expense                              |   |                                          | 8,475,637  |   |   | 5,315,088 |   |
|                                                               |   |                                          |       |   |   |   |   |
| Net                interest income                                 |   |                                          | 11,215,213 |   |   | 9,634,712 |   |
|                                                               |   |                                          |       |   |   |   |   |
| Provision                for loan losses                           |   |                                          | 715,000    |   |   | 800,000 |   |
|                                                               |   |                                          |       |   |   |   |   |
| Net                interest income after provision for loan losses |   |                                          | 10,500,213 |   |   | 8,834,712 |   |
|                                                               |   |                                          |       |   |   |   |   |
| Other                income:                                       |   |                                          |       |   |   |   |   |
| Service                charges on deposit accounts                 |   |                                          | 2,013,772  |   |   | 1,976,595 |   |
| Mortgage                origination fees                           |   |                                          | 180,445    |   |   | 177,760 |   |
| Miscellaneous                                                      |   |                                          | 737,577    |   |   | 659,115 |   |
|                                                               |   |                                          |       |   |   |   |   |
| Total                other income                                  |   |                                          | 2,931,794  |   |   | 2,813,470 |   |
|                                                               |   |                                          |       |   |   |   |   |
| Other                expenses:                                     |   |                                          |       |   |   |   |   |
| Salaries                and employee benefits                      |   |                                          | 4,787,797  |   |   | 4,291,840 |   |
| Occupancy                                                          |   |                                          | 1,166,716  |   |   | 1,080,295 |   |
| Other                operating                                     |   |                                          | 1,986,568  |   |   | 1,724,724 |   |
|                                                               |   |                                          |       |   |   |   |   |
| Total                other expenses                                |   |                                          | 7,941,081  |   |   | 7,096,859 |   |
|                                                               |   |                                          |       |   |   |   |   |
| Earnings                before income taxes                        |   |                                          | 5,490,926  |   |   | 4,551,323 |   |
|                                                               |   |                                          |       |   |   |   |   |
| Income                taxes                                        |   |                                          | 1,684,633  |   |   | 1,290,147 |   |
|                                                               |   |                                          |       |   |   |   |   |
| Net                earnings                                        |   | $                                             | 3,806,293  |   |   | 3,261,176 |   |
| Basic                earnings per share                            |   | $                                             | 1.14       |   |   | 0.98 |   |
| Diluted                earnings per share                          |   | $                                             | 1.14       |   |   | 0.98 |   |
| Dividends                declared per share                        |   | $                                             | 0.52       |   |   | 0.44 |   |

*See      accompanying notes to unaudited consolidated financial      statements.*

----

**WGNB      CORP.**

**Consolidated      Statements of Comprehensive Income**

**For      the Six Months Ended June 30, 2006 and 2005**

**(unaudited)**

|                                                               |   |  For                the Six Months Ended |      |
|--------------------------------------------------------------------|--------|-----------------------------------------------|-----------|
|                                                               |   | June                30, 2006                  |      | June                30, 2005 |   |
|                                                               |   |                                          |      |   |   |
| Net                earnings                                        |   | $                                             | 3,806,293 |   |   | 3,261,176 |   |
| Other                comprehensive income (loss), net of tax:      |   |                                          |      |   |   |   |   |
| Unrealized                gains (losses) on investment             |   |                                          |      |   |   |   |   |
| securities                available for sale:                      |   |                                          |      |   |   |   |   |
| Unrealized                gains (losses) arising during the period |   |                                          | (705,348  | ) |   | (231,308 | ) |
| Associated                benefit (taxes)                          |   |                                          | 239,818   |   |   | 78,645 |   |
|                                                               |   |                                          |      |   |   |   |   |
| Other                comprehensive income (loss)                   |   |                                          | (465,530  | ) |   | (152,663 | ) |
|                                                               |   |                                          |      |   |   |   |   |
| Comprehensive                income                                |   | $                                             | 3,340,763 |   |   | 3,108,513 |   |

*See      accompanying notes to unaudited consolidated financial      statements.*

----

**WGNB      CORP.**

**Consolidated      Statements of Cash Flows**

**For      the Six Months Ended June 30, 2006 and 2005**

**(unaudited)**

|                                                                     |   |  For                the Six Months Ended |        |
|--------------------------------------------------------------------------|--------|-----------------------------------------------|-------------|
|                                                                     |   | June                30, 2006                  |        | June                30, 2005 |   |
|                                                                     |   |                                          |        |   |   |
| Cash                flows from operating activities:                     |   |                                          |        |   |   |
| Net                earnings                                              |   | $                                             | 3,806,293   |   |   | 3,261,176 |   |
| Adjustments                to reconcile net earnings to net cash         |   |                                          |        |   |   |   |   |
| provided                by operating activities:                         |   |                                          |        |   |   |   |   |
| Depreciation,                amortization and accretion                  |   |                                          | 500,893     |   |   | 589,820 |   |
| Provision                for loan losses                                 |   |                                          | 715,000     |   |   | 800,000 |   |
| Stock-based                employee compensation expense                 |   |                                          | 63,750      |   |   | - |   |
| (Gain)                Loss on sale of other real estate                  |   |                                          | (4,464      | ) |   | 5,972 |   |
| Loss                on sale or disposal of premises and equipment        |   |                                          | 1,276       |   |   | 43,914 |   |
| Change                in:                                                |   |                                          |             |   |   |  |   |
| Other                assets                                              |   |                                          | (2,679,905  | ) |   | (717,094 | ) |
| Other                liabilities                                         |   |                                          | 873,464     |   |   | 586,026 |   |
|                                                                     |   |                                          |        |   |   |   |   |
| Net                cash provided by operating activities                 |   |                                          | 3,276,307   |   |   | 4,569,814 |   |
|                                                                     |   |                                          |        |   |   |   |   |
| Cash                flows from investing activities:                     |   |                                          |        |   |   |   |   |
| Proceeds                from maturities of securities available for sale |   |                                          | 16,980,568  |   |   | 8,144,825 |   |
| Purchases                of securities available for sale                |   |                                          | (8,443,949  | ) |   | (8,354,786 | ) |
| Proceeds                from maturities of securities held to maturity   |   |                                          | 151,089     |   |   |   |   |
| Purchases                of securities held to maturity                  |   |                                          | (1,503,750  | ) |   | (232,500 | ) |
| Net                change in loans                                       |   |                                          | (29,006,016 | ) |   | (49,588,333 | ) |
| Purchases                of premises and equipment                       |   |                                          | (671,873    | ) |   | (1,077,370 | ) |
| Proceeds                from sales of other real estate                  |   |                                          | 619,177     |   |   | 355,148 |   |
|                                                                     |   |                                          |             |   |   |  |   |
| Net                cash used by investing activities                     |   |                                          | (21,874,754 | ) |   | (50,753,016 | ) |
|                                                                     |   |                                          |        |   |   |   |   |
| Cash                flows from financing activities:                     |   |                                          |        |   |   |   |   |
| Net                change in deposits                                    |   |                                          | 13,608,885  |   |   | 60,467,087 |   |
| Proceeds                from FHLB Advances                               |   |                                          | 10,000,000  |   |   | - |   |
| Repayment                of FHLB Advances                                |   |                                          | -           |   |   | (3,000,000 | ) |
| Net                change in federal funds purchased                     |   |                                          | 3,425,000   |   |   | 9,479,000 |   |
| Dividends                paid                                            |   |                                          | (1,667,142  | ) |   | (1,462,686 | ) |
| Proceeds                from exercise of stock options                   |   |                                          | 18,519      |   |   | - |   |
| Purchase                and retirement of common stock                   |   |                                          | (303,043    | ) |   | (38,101 | ) |
|                                                                     |   |                                          |        |   |   |   |   |
| Net                cash provided by financing activities                 |   |                                          | 25,082,219  |   |   | 65,445,300 |   |
|                                                                     |   |                                          |        |   |   |   |   |
| Change                in cash and cash equivalents                       |   |                                          | 6,438,772   |   |   | 19,262,098 |   |
| Cash                and cash equivalents at beginning of period          |   |                                          | 16,221,889  |   |   | 8,056,243 |   |
| Cash                and cash equivalents at end of period                |   | $                                             | 22,705,661  |   |   | 27,318,341 |   |

*See      accompanying notes to unaudited consolidated financial      statements.*

----

**WGNB      CORP.**

**Consolidated      Statements of Cash Flows, continued**

**For      the Six Months Ended June 30, 2006 and 2005**

**(unaudited)**

|                                                             |   |  For                the Six Months Ended |      |
|------------------------------------------------------------------|--------|-----------------------------------------------|-----------|
|                                                             |   | June                30, 2006                  |      | June                30, 2005 |   |
|                                                             |   |                                          |      |   |   |
| Supplemental                disclosure of cash flow information: |   |                                          |      |   |   |
| Cash                paid during the quarter for:                 |   |                                          |      |   |   |
| Interest                                                         |   | $                                             | 8,074,772 |   |   | 5,178,715 |   |
| Income                taxes                                      |   |                                          | 2,230,500 |   |   | 1,499,000 |   |
|                                                             |   |                                          |      |   |   |   |   |
| Non-cash                investing and financing activities:      |   |                                          |      |   |   |   |   |
| Transfer                of loans to other real owned             |   |                                          | -         |   |   | 135,723 |   |
| Change                in unrealized gains on                     |   |                                          |      |   |   |   |   |
| securities                available for sale, net of tax         |   |                                          | (465,530  | ) |   | (152,663 | ) |
| Change                in dividends payable                       |   |                                          | 65,535    |   |   | 67,612 |   |
| Issuance                of common stock to directors in lieu     |   |                                          |      |   |   |   |   |
| of                directors’ fees                          |   |                                          | -         |   |   | 14,245 |   |

*See      accompanying notes to unaudited consolidated financial      statements.*

----

**WGNB      Corp.**

**Notes      to Consolidated Financial Statements**

**June      30, 2006**

**(unaudited)**

| **(1)** | **Basis                of Presentation** |
|---------|------------------------------------------|

| **(2)** | **Net                Earnings Per Share** |
|---------|-------------------------------------------|

|                                                         |   | For                the quarter ended June 30, 2006 |      |
|--------------------------------------------------------------|--------|----------------------------------------------------|-----------|
|                                                         |   |                                               |      |   |   | Earnings |   |
|                                                         |   | Net                Earnings                        |      | Common                Shares |   | per                Share |   |
|                                                         |   |                                               |      |   |   |   |   |
| Basic                earnings per share                      |   | $                                                  | 1,991,177 |   |   | 3,332,070 |   | $ | 0.60 |   |
| Effect                of dilutive securities - Stock Options |   |                                               | -         |   |   | 18,425 |   |   | (0.01 | ) |
| Diluted                earnings per share                    |   | $                                                  | 1,991,177 |   |   | 3,350,495 |   | $ | 0.59 |   |

|                                                         |   | For                the quarter ended June 30, 2005 |      |
|--------------------------------------------------------------|--------|----------------------------------------------------|-----------|
|                                                         |   |                                               |      |   |   | Earnings |   |
|                                                         |   | Net                Earnings                        |      | Common                Shares |   | per                Share |   |
|                                                         |   |                                               |      |   |   |   |   |
| Basic                earnings per share                      |   | $                                                  | 1,647,205 |   |   | 3,324,323 |   | $ | 0.50 |   |
| Effect                of dilutive securities - Stock Options |   |                                               | -         |   |   | 18,655 |   |   | (0.01 | ) |
| Diluted                earnings per share                    |   | $                                                  | 1,647,205 |   |   | 3,342,978 |   | $ | 0.49 |   |
|                                                         |   |                                               |      |   |   |   |   |   |   |   |

|                                                         |   | For                the six months ended June 30, 2006 |      |
|--------------------------------------------------------------|--------|-------------------------------------------------------|-----------|
|                                                         |   |                                                  |      |   |   | Earnings |   |
|                                                         |   | Net                Earnings                           |      | Common                Shares  |   | per                Share |   |
|                                                         |   |                                                  |      |   |   |   |   |
| Basic                earnings per share                      |   | $                                                     | 3,806,293 |   |   | 3,330,581 |   | $ | 1.14 |   |
| Effect                of dilutive securities - Stock Options |   |                                                  | -         |   |   | 18,425 |   |   | - |   |
| Diluted                earnings per share                    |   | $                                                     | 3,806,293 |   |   | 3,349,006 |   | $ | 1.14 |   |

----

**WGNB      Corp.**

**Notes      to Consolidated Financial Statements**

**June      30, 2006**

**(unaudited)**

| **(2)** | **Net                Earnings Per Share,                continued** |
|---------|---------------------------------------------------------------------|

|                                                         |   | For                the six months ended June 30, 2005 |      |
|--------------------------------------------------------------|--------|-------------------------------------------------------|-----------|
|                                                         |   |                                                  |      |   |   | Earnings |   |
|                                                         |   | Net                Earnings                           |      | Common                Shares |   | per                Share |   |
|                                                         |   |                                                  |      |   |   |   |   |
| Basic                earnings per share                      |   | $                                                     | 3,261,176 |   |   | 3,324,315 |   | $ | 0.98 |   |
| Effect                of dilutive securities - Stock Options |   |                                                  | -         |   |   | 18,655 |   |   | - |   |
| Diluted                earnings per share                    |   | $                                                     | 3,261,176 |   |   | 3,342,970 |   | $ | 0.98 |   |

| **(3)** | **Stock                Compensation Plans** |
|---------|---------------------------------------------|

|                                                                                                                                       |   | Three                Months |      | Six                Months |   |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|-----------|---------------------------|--------|
|                                                                                                                                       |   | 2005                        |      | 2005                      |   |
| Net                earnings (as reported)                                                                                                  |   | $                           | 1,647,205 |                      |   | 3,261,176 |   |
| Stock-based                employee compensation expense determined under the                fair-value-method, net of related tax effects |   |                        | (39,027   | )                         |   | (78,054 | ) |
| Pro                forma net earnings                                                                                                      |   | $                           | 1,608,178 |                      |   | 3,183,122 |   |
| As                reported:                                                                                                                |   |                        |      |                      |   |   |   |
| Earnings                per common share                                                                                                   |   | $                           | 0.50      |                      |   | 0.98 |   |
| Diluted                earnings per common share                                                                                           |   | $                           | 0.49      |                      |   | 0.98 |   |
| Pro                forma:                                                                                                                  |   |                        |      |                      |   |   |   |
| Earnings                per common share                                                                                                   |   | $                           | 0.48      |                      |   | 0.96 |   |
| Diluted                earnings per common share                                                                                           |   | $                           | 0.48      |                      |   | 0.95 |   |

----

**WGNB      Corp.**

**Notes      to Consolidated Financial Statements**

**June      30, 2006**

**(unaudited)**

| **(3)** | **Stock                Compensation Plans,                continued** |
|---------|-----------------------------------------------------------------------|

|                                   |   | 2006   |                    | 2005   |   |
|----------------------------------------|--------|--------|-------------------------|--------|--------|
| Dividend                yield          |   |   | 2.85                    | %      |   | 2.84 | % |
| Expected                volatility     |   |   | 13                      | %      |   | 13 | % |
| Risk-free                interest rate |   |   | 4.54                    | %      |   | 4.09 | % |
| Expected                term           |   |   | 10                years |   |   | 10                years |   |

| **(4)** | **Contingent                Liabilities** |
|---------|-------------------------------------------|

----

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

**Cautionary      Notice Regarding Forward-Looking Statements**

**Critical      Accounting Policies**

----

**Results      of Operations **

*Overview*

*Net      Interest Income*

----

*Non-Interest      Income*

*Non-Interest      Expense *

----

*Income      Taxes*

*Provision      and Allowance for Loan Losses*

----

**Allowance      for Loan Loss**

|                                                            |   | **For                the Six Months Ended** |      |
|-----------------------------------------------------------------|--------|---------------------------------------------|-----------|
|                                                            |   | **June                30, 2006**            |      | **June                30, 2005** |   |
| Balance                at beginning of period                   |   | $                                           | 5,327,406 |   | $ | 4,080,148 |   |
| Charge-offs:                                                    |   |                                        |      |   |   |   |   |
| Commercial,                financial and agricultural           |   |                                        | 5,656     |   |   | 15,195 |   |
| Real                estate - construction                       |   |                                        | -         |   |   | - |   |
| Real                estate - mortgage                           |   |                                        | 909,758   |   |   | 20,000 |   |
| Consumer                loans                                   |   |                                        | 49,432    |   |   | 45,478 |   |
| Total                charge-offs                                |   |                                        | 964,846   |   |   | 80,673 |   |
| Recoveries:                                                     |   |                                        |      |   |   |   |   |
| Commercial,                financial and agricultural           |   |                                        | 8,959     |   |   | 7,990 |   |
| Real                estate - construction                       |   |                                        | -         |   |   | - |   |
| Real                estate - mortgage                           |   |                                        | -         |   |   | 18,326 |   |
| Consumer                loans                                   |   |                                        | 29,892    |   |   | 25,088 |   |
| Total                recoveries                                 |   |                                        | 38,851    |   |   | 51,404 |   |
| Net                charge-offs                                  |   |                                        | (925,995  | ) |   | (29,269 | ) |
| Provision                for loan losses                        |   |                                        | 715,000   |   |   | 800,000 |   |
|                                                            |   |                                        |      |   |   |   |   |
| Balance                at end of period                         |   | $                                           | 5,116,411 |   | $ | 4,850,879 |   |
|                                                            |   |                                        |      |   |   |   |   |
| Ratio                of net (charge-offs) recoveries during the |   |                                        |      |   |   |   |   |
| period                to average loans outstanding              |   |                                        | .21       | % |   | .00 | % |
|                                                            |   |                                        |      |   |   |   |   |
| Ratio                of allowance to total loans                |   |                                        | 1.13      | % |   | 1.20 | % |

*Non-Performing      Assets and Past Due Loans*

**Financial      Condition**

*Overview*

*Assets      and Funding *

----

| **Loans**                                             |   | **At                June 30, 2006** |            | **At                December 31, 2005** |   |
|-------------------------------------------------------|--------|-------------------------------------|-----------------|-----------------------------------------|--------|
| Commercial,                financial and agricultural |   | $                                   | 48,820,440      |                                    | $      | 51,555,201 |   |
| Real                Estate - mortgage                 |   |                                | 206,646,546     |                                    |   | 196,382,365 |   |
| Real                Estate - construction             |   |                                | 171,733,792     |                                    |   | 153,511,262 |   |
| Consumer                                              |   |                                | 24,646,868      |                                    |   | 22,271,301 |   |
| **Total**                                             |   | **$**                               | **451,847,646** |                                    | **$**  | **423,720,129** |   |
|                                                  |   |                                |            |                                    |   |   |   |
| Unearned                interest                      |   |                                | (888,605        | )                                       |   | (841,109 | ) |
| Allowance                for loan losses              |   |                                | (5,116,411      | )                                       |   | (5,327,406 | ) |
| **Net                Loans**                          |   | **$**                               | **445,842,630** |                                    | **$**  | **417,551,614** |   |

*Liquidity      and Capital Resources*

----

|                                      |   | **June                30, 2006** |   |
|-------------------------------------------|--------|----------------------------------|--------|
|                                      |   | **Actual**                       |   |   |   | **Required** |   |   |   | **Excess** |   |   |   |
|                                      |   | **Amount**                       |   | **%** |   | **Amount** |   | **%** |   | **Amount** |   | **%** |   |
|                                      |   |                             |   |   |   |   |   |   |   |   |   |   |   |
| Total                capital (to risk-    |   |                             |   |   |   |   |   |   |   |   |   |   |   |
| weighted                assets)           |   | $                                | 54,770 |   |   | 11.48 | % | $ | 38,174 |   |   | 8.00 | % | $ | 16,596 |   |   | 3.48 | % |
| Tier                1 capital (to risk-   |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| weighted                assets)           |   |                             | 49,679 |   |   | 10.41 | % |   | 19,087 |   |   | 4.00 | % |   | 30,592 |   |   | 6.41 | % |
| Tier                1 capital (to average |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| assets)                                   |   |                             | 49,679 |   |   | 9.08 | % |   | 21,888 |   |   | 4.00 | % |   | 27,791 |   |   |  5.08 | %  |

*Off      Balance Sheet Risks*

**Item      3. Quantitative and Qualitative Disclosures About Market Risk**

----

**Item      4. Controls and Procedures**

----

**Part      II - Other Information**

**Item      1.**
**Legal      Proceedings**

**Item      1A.**
**Risk      Factors**

**Item      2.**
**Unregistered      Sales of Equity Securities and Use of Proceeds**

**Item      3.**
**Defaults      Upon Senior Securities**

**Item      4.**
**Submission      of Matters to a Vote of Security Holders**

**Item      5.**
**Other      Information**

----

**Item      6.**
**Exhibits      **

|   | 3.1 | Amended                and Restated Articles of Incorporation (Incorporated by reference                to                Exhibit 3.1 to the Company’s Registration Statement on Form 10-SB filed                June 14, 2000 (the “Form 10-SB”). |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.2 | Amended                and Restated Bylaws (Incorporated by reference to Exhibit 3.2 to                the Form                10-SB). |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.1 | See                exhibits 3.1 and 3.2 for provisions of Company’s Articles of Incorporation                and Bylaws defining the rights of                shareholders. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.2 | Specimen                certificate representing shares of Common Stock (Incorporated by                reference                to Exhibit 4.2 to the Form 10-SB). |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.3 | Rights                Agreement dated as of February 12, 1997 between the Company and SunTrust                Bank, Atlanta (Incorporated by reference to Exhibit 4.3 to the Form                10-SB). |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 31.1 | Certification                of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley                Act of 2002 |
|--|------|----------------------------------------------------------------------------------------------------------------------------------|

|  | 31.2 | Certification                of Chief Financial Officer pursuant to Section 302 of the Sarbanes                Oxley                Act of 2002 |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 32.1 | Certification                of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley                Act of 2002 |
|--|------|----------------------------------------------------------------------------------------------------------------------------------|

|  | 32.2 | Certification                of Chief Financial Officer pursuant to Section 906 of the Sarbanes                Oxley                Act of 2002 |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SIGNATURES**

|         |                                                                     |                                                 |
|--------------|--------------------------------------------------------------------------|------------------------------------------------------|
|         | **WGNB              CORP.**                                              |
|    |                                                                |                                            |
|         | By:                                                            | /s/ H.              B.              Lipham, III |
|         | H.                B. Lipham, IIIInterim                President and CEO |

|   |                                                                                                    |                                                   |
|--------|---------------------------------------------------------------------------------------------------------|--------------------------------------------------------|
|   | By:                                                                                           | /s/ Steven                J.                Haack |
|   | Steven                  J. HaackTreasurer                  Principal                  Financial Officer |

----