----

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**UNITED        STATES**

**SECURITIES        AND EXCHANGE COMMISSION**

**Washington,        D.C. 20549**

**FORM        10-QSB**

**QUARTERLY        REPORT PURSUANT TO SECTION 13 OR 15(D)**

**OF        THE SECURITIES EXCHANGE ACT OF 1934**

**For        the quarterly period ended June 30, 2006**

**FIRST        METROPLEX CAPITAL, INC.**

| **Texas**                                                               |   | **71-0919962**                       |
|-------------------------------------------------------------------------|--------|--------------------------------------|
| (State                  or other jurisdiction of                        |   | (I.R.S.                  Employer    |
| incorporation                  or organization)                         |   | Identification                  No.) |
|                                                                    |   |                                 |
| 16000                  Dallas Parkway, Suite 125, Dallas, Texas 75248   |
| (Address                  of principal executive offices)               |
|                                                                    |
| (972)                  720-9000                                         |
| (Issuer’s                  telephone number, including area code) |
|                                                                    |
|                                                                    |
|                                                                    |

----

----

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**FIRST        METROPLEX CAPITAL, INC.**

| PART                  I. FINANCIAL INFORMATION                                                            | 3      |
|-----------------------------------------------------------------------------------------------------------|--------|
| ITEM                  1. Financial Statements                                                             | 3      |
| ITEM                  2. Management’s Discussion and Analysis or Plan of                  Operation | 15     |
| ITEM                  3. Controls and Procedures                                                          | 30     |
|                                                                                                      |   |
| PART                  II. OTHER INFORMATION                                                               | 31     |
| ITEM                  1. Legal Proceedings                                                                | 31     |
| ITEM                  2. Unregistered Sales of Equity Securities and Use of                  Proceeds     | 31     |
| ITEM                  3. Defaults Upon Senior Securities                                                  | 31     |
| ITEM                  4. Submission of Matters to a Vote of Security Holders                              | 31     |
| ITEM                  5. Other Information                                                                | 31     |
| ITEM                  6. Exhibits                                                                         | 31     |

----

**PART      I.**
**FINANCIAL      INFORMATION**

**ITEM      1.  **
**Financial      Statements**

| ** FIRST                METROPLEX CAPITAL, INC.**                                                       |   |
|--------------------------------------------------------------------------------------------------------------|--------|
| **CONSOLIDATED                BALANCE SHEETS**                                                               |   |
|                                                                                                         |   | **JUNE                30,****2006** |   | **DECEMBER                31,****2005** |   |
|                                                                                                         |   |
|                                                                                                         |   |  (Unaudited) |   |   |   |
| ASSETS                                                                                                       |   |   |   |   |   |
|                                                                                                         |   |   |   |   |   |
| Cash                and due from banks                                                                       |   | $ | 2,285,000 |   | $ | 2,933,000 |   |
| Federal                funds sold                                                                            |   |   | 9,005,000 |   |   | 17,485,000 |   |
|                                                                                                         |   |   |  |   |   |  |   |
| Total                cash and cash equivalents                                                               |   |   | 11,290,000 |   |   | 20,418,000 |   |
|                                                                                                         |   |   |  |   |   |  |   |
| Investments                restricted                                                                        |   |   | 420,000 |   |   | 420,000 |   |
| Loans,                less allowance for credit losses of $725,000 and $400,000,                respectively |   |   | 46,375,000 |   |   | 25,789,000 |   |
| Bank                premises and equipment, net                                                              |   |   | 1,338,000 |   |   | 1,100,000 |   |
| Other                assets                                                                                  |   |   | 655,000 |   |   | 289,000 |   |
|                                                                                                         |   |   |  |   |   |  |   |
| TOTAL                ASSETS                                                                                  |   | $ | 60,078,000 |   | $ | 48,016,000 |   |
|                                                                                                         |   |   |  |   |   |  |   |
| LIABILITIES                AND SHAREHOLDERS' EQUITY                                                          |   |   |  |   |   |  |   |
|                                                                                                         |   |   |  |   |   |  |   |
| LIABILITIES                                                                                                  |   |   |  |   |   |  |   |
| Demand                deposits                                                                               |   |   |  |   |   |  |   |
| Noninterest                bearing                                                                      |   | $ | 12,191,000 |   |   | 7,119,000 |   |
| Interest                bearing                                                                         |   |   | 21,041,000 |   |   | 16,390,000 |   |
| Time                deposits $100,000 and over                                                          |   |   | 10,298,000 |   |   | 8,216,000 |   |
| Other                time deposits                                                                      |   |   | 4,164,000 |   |   | 3,339,000 |   |
|                                                                                                         |   |   |  |   |   |  |   |
| Total                deposits                                                                                |   |   | 47,694,000 |   |   | 35,064,000 |   |
|                                                                                                         |   |   |  |   |   |  |   |
| Other                liabilities                                                                             |   |   | 94,000 |   |   | 76,000 |   |
|                                                                                                         |   |   |  |   |   |  |   |
| Total                liabilities                                                                             |   |   | 47,788,000 |   |   | 35,140,000 |   |
|                                                                                                         |   |   |  |   |   |   |   |
| SHAREHOLDERS'                EQUITY                                                                          |   |   |  |   |   |   |   |
| Common                stock, $0.01 par value                                                                 |   |   |  |   |   |   |   |
| 10,000,000                shares authorized                                                             |   |   |   |   |   |   |   |
| 1,680,150                and 1,680,150 shares issued and outstanding, respectively                           |   |   | 17,000 |   |   | 17,000 |   |
| Additional                paid-in capital                                                                    |   |   | 16,420,000 |   |   | 16,382,000 |   |
| Retained                deficit                                                                              |   |   | (4,148,000 | ) |   | (3,523,000 | ) |
|                                                                                                         |   |   |  |   |   |   |   |
| Total                shareholders' equity                                                                    |   |   | 12,289,000 |   |   | 12,876,000 |   |
|                                                                                                         |   |   |  |   |   |   |   |
| TOTAL                LIABILITIES AND SHAREHOLDERS' EQUITY                                                    |   | $ | 60,078,000 |   | $ | 48,016,000 |   |
|                                                                                                         |   |   |   |   |   |   |   |
|                                                                                                         |   |   |   |   |   |   |   |

----

**FIRST        METROPLEX CAPITAL, INC.**

**STATEMENTS        OF OPERATIONS**

**(Unaudited)**

|                                               |   |                                                                 |      |                                                                 |   |                                                                 |   |                                                                       |      |
|----------------------------------------------------|--------|----------------------------------------------------------------------|-----------|----------------------------------------------------------------------|--------|----------------------------------------------------------------------|--------|----------------------------------------------------------------------------|-----------|
|                                               |   | **3                MONTHS****ENDED****JUNE                30, 2006** |      | **3                MONTHS****ENDED****JUNE                30, 2005** |   | **6                MONTHS****ENDED****JUNE                30, 2006** |   | **6                MONTHS****ENDED****JUNE                30, 2005**  |      |
|                                               |   |                                                                 |      |                                                                 |   |                                                                 |   |                                                                       |      |
|                                               |   |                                                                 |      |                                                                 |   |                                                                 |   |                                                                       |      |
| INTEREST                INCOME                     |   |                                                                 |      |                                                                 |   |                                                                 |   |                                                                       |      |
| Interest                and fees on loans          |   | $                                                                    | 840,000   |                                                                 | $      | 299,000                                                              |   | $                                                                          | 1,468,000 |   | $ | 457,000 |   |
| Restricted                investments              |   |                                                                 | 6,000     |                                                                 |   | 6,000                                                                |   |                                                                       | 13,000    |   |   | 13,000 |   |
| Federal                funds sold                  |   |                                                                 | 219,000   |                                                                 |   | 66,000                                                               |   |                                                                       | 445,000   |   |   | 127,000 |   |
|                                               |   |                                                                 |      |                                                                 |   |                                                                 |   |                                                                       |      |   |   |   |   |
| Total                interest income          |   |                                                                 | 1,065,000 |                                                                 |   | 371,000                                                              |   |                                                                       | 1,926,000 |   |   | 597,000 |   |
|                                               |   |                                                                 |      |                                                                 |   |                                                                 |   |                                                                       |      |   |   |   |   |
| INTEREST                EXPENSE                    |   |                                                                 |      |                                                                 |   |                                                                 |   |                                                                       |      |   |   |   |   |
| Deposits                                           |   |                                                                 | 299,000   |                                                                 |   | 61,000                                                               |   |                                                                       | 566,000   |   |   | 91,000 |   |
|                                               |   |                                                                 |      |                                                                 |   |                                                                 |   |                                                                       |      |   |   |   |   |
| Interest                income, net           |   |                                                                 | 766,000   |                                                                 |   | 310,000                                                              |   |                                                                       | 1,360,000 |   |   | 506,000 |   |
|                                               |   |                                                                 |      |                                                                 |   |                                                                 |   |                                                                       |      |   |   |   |   |
| PROVISION                FOR CREDIT LOSSES         |   |                                                                 | 175,000   |                                                                 |   | 76,000                                                               |   |                                                                       | 325,000   |   |   | 150,000 |   |
|                                               |   |                                                                 |      |                                                                 |   |                                                                 |   |                                                                       |      |   |   |   |   |
| Interest                income after          |   |                                                                 |      |                                                                 |   |                                                                 |   |                                                                       |      |   |   |   |   |
| provision                for credit losses         |   |                                                                 | 591,000   |                                                                 |   | 234,000                                                              |   |                                                                       | 1,035,000 |   |   | 356,000 |   |
|                                               |   |                                                                 |      |                                                                 |   |                                                                 |   |                                                                       |      |   |   |   |   |
| OTHER                INCOME                        |   |                                                                 |      |                                                                 |   |                                                                 |   |                                                                       |      |   |   |   |   |
| Service                fees                        |   |                                                                 | 135,000   |                                                                 |   | 7,000                                                                |   |                                                                       | 187,000   |   |   | 10,000 |   |
|                                               |   |                                                                 |      |                                                                 |   |                                                                 |   |                                                                       |      |   |   |   |   |
|                                               |   |                                                                 |      |                                                                 |   |                                                                 |   |                                                                       |      |   |   |   |   |
| OTHER                EXPENSES                      |   |                                                                 |      |                                                                 |   |                                                                 |   |                                                                       |      |   |   |   |   |
| Salaries                and employee benefits      |   |                                                                 | 542,000   |                                                                 |   | 350,000                                                              |   |                                                                       | 1,098,000 |   |   | 702,000 |   |
| Occupancy                expense                   |   |                                                                 | 145,000   |                                                                 |   | 116,000                                                              |   |                                                                       | 276,000   |   |   | 221,000 |   |
| Professional                fees                   |   |                                                                 | 61,000    |                                                                 |   | 58,000                                                               |   |                                                                       | 79,000    |   |   | 89,000 |   |
| Other                operating expenses            |   |                                                                 | 240,000   |                                                                 |   | 172,000                                                              |   |                                                                       | 394,000   |   |   | 281,000 |   |
|                                               |   |                                                                 |      |                                                                 |   |                                                                 |   |                                                                       |      |   |   |   |   |
|                                               |   |                                                                 | 988,000   |                                                                 |   | 696,000                                                              |   |                                                                       | 1,847,000 |   |   | 1,293,000 |   |
|                                               |   |                                                                 |      |                                                                 |   |                                                                 |   |                                                                       |      |   |   |   |   |
| NET                LOSS                            |   | $                                                                    | (262,000  | )                                                                    | $      | (455,000                                                             | )      | $                                                                          | (625,000  | ) | $ | (927,000 | ) |
|                                               |   |                                                                 |      |                                                                 |   |                                                                 |   |                                                                       |      |   |   |   |   |
| Net                loss per weighted average share |   | $                                                                    | (0.16     | )                                                                    | $      | (0.27                                                                | )      | $                                                                          | (0.37     | ) | $ | (0.55 | ) |
|                                               |   |                                                                 |      |                                                                 |   |                                                                 |   |                                                                       |      |   |   |   |   |
| Weighted                average shares outstanding |   |                                                                 | 1,680,150 |                                                                 |   | 1,680,000                                                            |   |                                                                       | 1,680,150 |   |   | 1,680,000 |   |
|                                               |   |                                                                 |      |                                                                 |   |                                                                 |   |                                                                       |      |   |   |   |   |

----

| **FIRST                METROPLEX CAPITAL, INC.**                |   |
|-----------------------------------------------------------------|--------|
| **STATEMENT                OF CHANGES IN SHAREHOLDERS' EQUITY** |   |
| **SIX                MONTHS ENDED JUNE 30, 2006**               |   |
| **(Unaudited)**                                                 |   |

|                                          |   | **Common                Stock** |   | **Additional                Paid-in****Capital** |   | **Retained                Deficit** |   | **Accumulate****Other****Comprehensive****Income** |       | **Total** |   |
|-----------------------------------------------|--------|---------------------------------|--------|--------------------------------------------------|--------|-------------------------------------|--------|----------------------------------------------------|------------|-----------|--------|
|                                          |   |                            |   |                                             |   |                                |   |                                               |       |      |   |
| BALANCE,                December 31, 2005     |   | $                               | 17,000 |                                             | $      | 16,382,000                          |   | $                                                  | (3,523,000 | )         | $      | — |   | $12,876,000 |
| Comprehensive                income           |   |                            |   |                                             |   |                                |   |                                               |       |      |   |   |   |   |
| Net                loss - YTD            |   |                            |   |                                             |   |                                |   |                                               | (625,000   | )         |   |   |   |   |
| Total                comprehensive loss       |   |                            |   |                                             |   |                                |   |                                               |       |      |   |   |   | (625,000) |
|  Share                based compensation |   |                            |   |                                             |   | 38,000                              |   |                                               |       |      |   |   |   | 38,000 |
| BALANCE,                June 30, 2006         |   | $                               | 17,000 |                                             | $      | 16,420,000                          |   | $                                                  | (4,148,000 | )         |   | — |   | $12,289,000 |
|                                          |   |                            |   |                                             |   |                                |   |                                               |       |      |   |   |   |   |
|                                          |   |                            |   |                                             |   |                                |   |                                               |       |      |   |   |   |   |

----

| **FIRST                METROPLEX CAPITAL, INC.** |
|--------------------------------------------------|
| **STATEMENT                OF CASH FLOWS**       |
| **(Unaudited)**                                  |

|                                                         |   | **SIX****MONTHS                ENDED JUNE 30, 2006** |        | **SIX****MONTHS                ENDED JUNE 30, 2006** |   |
|--------------------------------------------------------------|--------|------------------------------------------------------|-------------|------------------------------------------------------|--------|
|                                                         |   |                                                 |        |                                                 |   |
| CASH                FLOWS FROM OPERATING ACTIVITIES          |   |                                                 |        |                                                 |   |
| Net                loss                                      |   | $                                                    | (625,000    | )                                                    | $      | (927,000 | ) |
| Adjustments                to reconcile net loss             |   |                                                 |             |                                                 |   |  |   |
| to                net cash used in operating activities      |   |                                                 |             |                                                 |   |  |   |
|                                                         |   |                                                 |             |                                                 |   |  |   |
| Provision                for credit losses                   |   |                                                 | 325,000     |                                                 |   | 150,000 |   |
| Depreciation                expense                          |   |                                                 | 120,000     |                                                 |   | 92,000 |   |
| Share                based compensation                      |   |                                                 | 38,000      |                                                 |   | — |   |
| Changes                in operating assets and liabilities:  |   |                                                 |             |                                                 |   |  |   |
| Other                assets                                  |   |                                                 | (365,000    | )                                                    |   | 111,000 |   |
| Other                liabilities                             |   |                                                 | 18,000      |                                                 |   | 33,000 |   |
|                                                         |   |                                                 |             |                                                 |   |  |   |
| Net                cash used in operating activities         |   |                                                 | (489,000    | )                                                    |   | (543,000 | ) |
|                                                         |   |                                                 |        |                                                 |   |   |   |
| CASH                FLOWS FROM INVESTING ACTIVITIES          |   |                                                 |        |                                                 |   |   |   |
| Net                change in loans                           |   |                                                 | (20,911,000 | )                                                    |   | (9,988,000 | ) |
| Purchases                of bank premises and equipment      |   |                                                 | (358,000    | )                                                    |   | (84,000 | ) |
|                                                         |   |                                                 |        |                                                 |   |   |   |
| Net                cash used in investing activities         |   |                                                 | (21,269,000 | )                                                    |   | (10,072,000 | ) |
|                                                         |   |                                                 |             |                                                 |   |  |   |
| CASH                FLOWS FROM FINANCING ACTIVITIES          |   |                                                 |             |                                                 |   |  |   |
| Net                change in demand deposits                 |   |                                                 | 9,723,000   |                                                 |   | 6,969,000 |   |
| Net                change in time deposits                   |   |                                                 | 2,907,000   |                                                 |   | 2,934,000 |   |
|                                                         |   |                                                 |             |                                                 |   |  |   |
| Net                cash provided by financing activities     |   |                                                 | 12,630,000  |                                                 |   | 9,903,000 |   |
|                                                         |   |                                                 |             |                                                 |   |  |   |
| Net                change in cash and cash equivalents  |   |                                                 | (9,128,000  | )                                                    |   | (712,000 | ) |
|                                                         |   |                                                 |             |                                                 |   |  |   |
| CASH                AND CASH EQUIVALENTS,                    |   |                                                 |             |                                                 |   |  |   |
| beginning                of period                           |   |                                                 | 20,418,000  |                                                 |   | 12,408,000 |   |
|                                                         |   |                                                 |             |                                                 |   |  |   |
| CASH                AND CASH EQUIVALENTS,                    |   |                                                 |             |                                                 |   |  |   |
| end                of period                                 |   | $                                                    | 11,290,000  |                                                 | $      | 11,696,000 |   |
|                                                         |   |                                                 |             |                                                 |   |  |   |
| SUPPLEMENTAL                DISCLOSURE OF                    |   |                                                 |             |                                                 |   |  |   |
| CASH                FLOW INFORMATION                         |   |                                                 |             |                                                 |   |  |   |
| Interest                paid                                 |   | $                                                    | 557,000     |                                                 | $      | 89,000 |   |
| Income                taxes paid                             |   | $                                                    | —     |                                                 | $      | — |   |

----

**FIRST      METROPLEX CAPITAL, INC.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE      1.**
**BASIS      OF PRESENTATION**

**Organization      and Nature of Operations**

**NOTE      2.**
**ADOPTION      OF NEW ACCOUNTING POLICIES**

*,      Share-Based Payment, *
*Stock-Based      Compensation*

*Accounting      for Stock Issued to Employees*
*Stock      Options*

----

**NOTE      3.**
**LOANS**

| Commercial                                    |   | $      | 24,046,000 |   |
|-----------------------------------------------|--------|--------|------------|--------|
| Consumer                installment           |   |   | 1,558,000  |   |
| Real                estate                    |   |   | 21,629,000 |   |
|                                          |   |   | 47,233,000 |   |
|                                          |   |   |       |   |
| Less                allowance for loan losses |   |   | 725,000    |   |
| Less                deferred loan fees        |   |   | 133,000    |   |
|                                          |   | $      | 46,375,000 |   |
|                                          |   |   |       |   |

|                                                      |   | **Six Months                Ended June 30,** |    | **Three                Months Ended June 30,** |   |
|-----------------------------------------------------------|--------|--------------------------------------------------------|---------|-----------------------------------------------------|--------|
|                                                      |   | **2006**                                               |    | **2005**                                            |   | **2006** |   | **2005** |   |
| Balance                at beginning of period             |   | $                                                      | 400,000 |                                                | $      | 100,000 |   | $ | 550,000 |   | $ | 174,000 |   |
| Provision                charged to operations            |   |                                                   | 325,000 |                                                |   | 150,000 |   |   | 175,000 |   |   | 76,000 |   |
| Loans                charged off                          |   |                                                   | — |                                                |   | — |   |   | — |   |   | — |   |
| Recoveries                of loans previously charged off |   |                                                   | — |                                                |   | — |   |   | — |   |   | — |   |
| Balance                at end of period                   |   | $                                                      | 725,000 |                                                | $      | 250,000 |   | $ | 725,000 |   | $ | 250,000 |   |
|                                                      |   |                                                   |    |                                                |   |   |   |   |   |   |   |   |   |

| Commercial                                    |   | $      | 11,572,000 |   |
|-----------------------------------------------|--------|--------|------------|--------|
| Consumer                installment           |   |   | 753,000    |   |
| Real                estate                    |   |   | 13,961,000 |   |
| Total                                         |   |   | 26,286,000 |   |
|                                          |   |   |       |   |
| Less                allowance for loan losses |   |   | 400,000    |   |
| Less                deferred loan fees        |   |   | 97,000     |   |
| Total                                         |   | $      | 25,789,000 |   |
|                                          |   |   |       |   |
|                                          |   |   |       |   |

----

**NOTE      4.**
**SECURITIES**

|                                      |   | **Amortized                Cost** |    | **Gross                Unrealized Gains** |   | **Gross                Unrealized (Losses)** |   | **Estimated                Fair Value** |    |
|-------------------------------------------|--------|-----------------------------------|---------|-------------------------------------------|--------|----------------------------------------------|--------|-----------------------------------------|---------|
|                                      |   |                              |    |                                      |   |                                         |   |                                    |    |
| Federal                Reserve Bank Stock |   | $                                 | 420,000 |                                      | $      | —                                      |   | $                                       | — |   | $ | 420,000 |   |
|                                      |   |                              |    |                                      |   |                                         |   |                                    |    |   |   |   |   |
|                                      |   |                              |    |                                      |   |                                         |   |                                    |    |   |   |   |   |

**NOTE      5.**
**RELATED      PARTIES**

**NOTE      6.**
**BANK      PREMISES AND EQUIPMENT**

|                                         |   | **June                30,****2006** |      | **December                31,****2005** |   |
|----------------------------------------------|--------|-------------------------------------|-----------|-----------------------------------------|--------|
|                                         |   |                                |      |                                    |   |
| Leasehold                improvements        |   | $                                   | 718,000   |                                    | $      | 505,000 |   |
| Furniture                and equipment       |   |                                | 961,000   |                                    |   | 816,000 |   |
|                                         |   |                                |      |                                    |   |   |   |
|                                         |   |                                | 1,679,000 |                                    |   | 1,321,000 |   |
| Less                accumulated depreciation |   |                                | 341,000   |                                    |   | 221,000 |   |
|                                         |   |                                |           |                                    |   |   |   |
|                                         |   | $                                   | 1,338,000 |                                    | $      | 1,100,000 |   |
|                                         |   |                                |      |                                    |   |   |   |
|                                         |   |                                |      |                                    |   |   |   |

**NOTE      7.**
**DEPOSITS**

|                                                        |   | **Amount** |       | **Percent ** |   |
|-------------------------------------------------------------|--------|------------|------------|-------------------|--------|
|                                                        |   |       |       |              |   |
| Noninterest                bearing demand                   |   | $          | 12,191,000 |              |   | 26 | % |
| Interest                bearing demand (NOW)                |   |       | 1,732,000  |              |   | 4 | % |
| Money                market accounts                        |   |       | 19,309,000 |              |   | 40 | % |
| Savings                accounts                             |   |       | 452,000    |              |   | 1 | % |
| Certificates                of deposit, less than $100,000  |   |       | 3,712,000  |              |   | 8 | % |
| Certificates                of deposit, $100,000 or greater |   |       | 10,298,000 |              |   | 21 | % |
|                                                        |   |       |       |              |   |  |   |
|                                                        |   | $          | 47,694,000 |              |   | 100 | % |
|                                                             |   |       |       |              |   |   |   |

----

| Noninterest                bearing demand                   |   | $      | 7,119,000  |   |   | 20     | %      |
|-------------------------------------------------------------|--------|--------|------------|--------|--------|--------|--------|
| Interest                bearing demand (NOW)                |   |   | 1,145,000  |   |   | 3      | %      |
| Money                market accounts                        |   |   | 15,245,000 |   |   | 44     | %      |
| Savings                accounts                             |   |   | 249,000    |   |   | 1      | %      |
| Certificates                of deposit, less than $100,000  |   |   | 3,090,000  |   |   | 9      | %      |
| Certificates                of deposit, $100,000 or greater |   |   | 8,216,000  |   |   | 23     | %      |
|                                                        |   |   |            |   |   |        |   |
| Total                                                       |   | $      | 35,064,000 |   |   | 100    | %      |
|                                                        |   |   |       |   |   |   |   |
|                                                        |   |   |       |   |   |   |   |

| 2006       |   | $      | 6,824,000  |   |
|------------|--------|--------|------------|--------|
| 2007       |   |   | 4,533,000  |   |
| 2008       |   |   | 55,000     |   |
| 2009       |   |   | 55,000     |   |
| 2010       |   |   | 1,971,000  |   |
|  2011 |   |   | 572,000    |   |
|       |   |   |       |   |
| Total      |   | $      | 14,010,000 |   |
|       |   |   |       |   |
|       |   |   |       |   |

**NOTE      8.**
**INCOME      TAXES**

**NOTE      9.**
**STOCK      OPTIONS**

----

|                                                |   | **Number                of Shares Underlying Options** |    | **Weighted                Average Exercise Prices** |   |
|-----------------------------------------------------|--------|--------------------------------------------------------|---------|-----------------------------------------------------|--------|
|                                                |   |                                                   |    |                                                |   |
| Outstanding                at beginning of the year |   |                                                   | 184,500 |                                                | $      | 10.00 |   |
| Granted                                             |   |                                                   | — |                                                |   | — |   |
| Exercised                                           |   |                                                   | — |                                                |   | — |   |
| Expired                forfeited                    |   |                                                   | — |                                                |   | — |   |
|                                                |   |                                                   |         |                                                |   |   |   |
| Outstanding                at end of period         |   |                                                   | 184,500 |                                                | $      | 10.00 |   |
| Exercisable                at end of period         |   |                                                   | 36,900  |                                                | $      | 10.00 |   |
| Available                for grant at end of period |   |                                                   | 75,500  |                                                | $      | 10.00 |   |
|                                                |   |                                                   |    |                                                |   |   |   |

|                                        |   | **Shares** |    | **Weighted                Average Grant Date Fair Value** |   |
|---------------------------------------------|--------|------------|---------|-----------------------------------------------------------|--------|
|                                        |   |       |    |                                                      |   |
| Nonvested                at January 1, 2006 |   |       | 147,600 |                                                      | $      | 2.11 |   |
| Granted                                     |   |       | — |                                                      |   | — |   |
| Vested                                      |   |       | — |                                                      |   | — |   |
| Forfeited                                   |   |       | — |                                                      |   | — |   |
|                                        |   |       |         |                                                      |   |   |   |
| Nonvested                at June 30, 2006   |   |       | 147,600 |                                                      | $      | 2.11 |   |

----

**NOTE      10.**
**STOCK      WARRANTS**

**NOTE      11.**
**COMMITMENTS      AND CONTINGENCIES**

**Employment      Agreements**

**NOTE      12.**
**REGULATORY      MATTERS**

----

| **  **                                        |   | **Actual**        |   | **For                Capital Adequacy Purposes** |   | **To                Be Well Capitalized Under Prompt Corrective Action                Provisions** |   |
|---------------------------------------------------------|--------|-------------------|--------|--------------------------------------------------|--------|----------------------------------------------------------------------------------------------------|--------|
|                                                    |   | **Amount**        |   | **Ratio**                                        |   | **Amount**                                                                                         |   | **Ratio** |   | **Amount** |   | **Ratio** |   |
|                                                    |   | **(000’s)** |   |                                             |   | **(000’s)**                                                                                  |   |   |   | **(000’s)** |   |   |   |
| **As                of June 30, 2006**                  |   |              |   |                                             |   |                                                                                               |   |   |   |   |   |   |   |
| Total                Capital (to Risk Weighted Assets)  |   | $                 | 12,280 |                                             |   | 24.2                                                                                               | %      |   | 4,052 |   |   | >8.0 | % | $ | 5,066 |   |   | >10.0 | % |
|                                                    |   |              |   |                                             |   |                                                                                                    |   |   |  |   |   |  |   |   |   |   |   |  |   |
| Tier                I Capital (to Risk Weighted Assets) |   |              | 11,646 |                                             |   | 23.0                                                                                               | %      |   | 2,026 |   |   | >4.0 | % |   | 3,039 |   |   | >6.0 | % |
|                                                    |   |              |        |                                             |   |                                                                                                    |   |   |  |   |   |  |   |   |   |   |   |  |   |
| Tier                I Capital (to Average Assets)       |   |              | 11,646 |                                             |   | 19.3                                                                                               | %      |   | 2,413 |   |   | >4.0 | % |   | 3,016 |   |   | >5.0 | % |

| **  **                                        |   | **Actual**        |   | **For                Capital Adequacy Purposes** |   | **To                Be Well Capitalized Under Prompt Corrective Action                Provisions** |   |
|---------------------------------------------------------|--------|-------------------|--------|--------------------------------------------------|--------|----------------------------------------------------------------------------------------------------|--------|
|                                                    |   | **Amount**        |   | **Ratio**                                        |   | **Amount**                                                                                         |   | **Ratio** |   | **Amount** |   | **Ratio** |   |
|                                                    |   | **(000’s)** |   |                                             |   | **(000’s)**                                                                                  |   |   |   | **(000’s)** |   |   |   |
| **As                of December 21, 2005**              |   |              |   |                                             |   |                                                                                               |   |   |   |   |   |   |   |
| Total                Capital (to Risk Weighted Assets)  |   | $                 | 12,584 |                                             |   | 39.9                                                                                               | %      | $ | 2,521 |   |   | >8.0 | % | $ | 3,151 |   |   | >10.0 | % |
|                                                    |   |              |   |                                             |   |                                                                                                    |   |   |   |   |   |  |   |   |   |   |   |  |   |
| Tier                I Capital (to Risk Weighted Assets) |   |              | 12,190 |                                             |   | 38.6                                                                                               | %      |   | 1,260 |   |   | >4.0 | % |   | 1,890 |   |   | >6.0 | % |
|                                                    |   |              |        |                                             |   |                                                                                                    |   |   |  |   |   |  |   |   |   |   |   |  |   |
| Tier                I Capital (to Average Assets)       |   |              | 12,190 |                                             |   | 29.6                                                                                               | %      |   | 1,647 |   |   | >4.0 | % |   | 2,059 |   |   | >5.0 | % |
|                                                    |   |              |   |                                             |   |                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                    |   |              |   |                                             |   |                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

**NOTE      13.**
**PARENT      COMPANY CONDENSED FINANCIAL STATEMENTS**

**FIRST      METROPLEX CAPITAL, INC.**

**CONDENSED      BALANCE SHEET**

|                                         |   | **June                30,****2006** |       | **December                31, 2005** |   |
|----------------------------------------------|--------|-------------------------------------|------------|--------------------------------------|--------|
| ASSETS                                       |   |                                |       |                                 |   |
| Cash                and due from banks       |   | $                                   | 639,000    |                                 | $      | 674,000 |   |
| Fixed                assets                  |   |                                | 5,000      |                                 |   | 11,000 |   |
| Investment                in subsidiary      |   |                                | 11,646,000 |                                 |   | 12,191,000 |   |
| Total                Assets                  |   | $                                   | 12,289,000 |                                 | $      | 12,876,000 |   |
|                                         |   |                                |       |                                 |   |   |   |
| LIABILITIES                AND CAPITAL       |   |                                |       |                                 |   |   |   |
| Capital                                      |   |                                | 12,289,000 |                                 |   | 12,876,000 |   |
| Total                Liabilities and Capital |   | $                                   | 12,289,000 |                                 | $      | 12,876,000 |   |
|                                         |   |                                |       |                                 |   |   |   |
|                                         |   |                                |       |                                 |   |   |   |
|                                         |   |                                |       |                                 |   |   |   |

**FIRST      METROPLEX CAPITAL, INC.**

**CONDENSED      INCOME STATEMENT**

|                                                                         |   | **3                Months****Ended****June                30, 2006** |     | **3                Months****Ended****June                30, 2005** |   | **6                Months****Ended****June                30, 2006** |   | **6                Months****Ended****June                30, 2005** |     |
|------------------------------------------------------------------------------|--------|----------------------------------------------------------------------|----------|----------------------------------------------------------------------|--------|----------------------------------------------------------------------|--------|----------------------------------------------------------------------|----------|
|                                                                         |   |                                                                 |     |                                                                 |   |                                                                 |   |                                                            |     |
| Equity                in loss from Bank                                      |   | $                                                                    | (206,000 | )                                                                    | $      | (369,000                                                             | )      | $                                                                    | (544,000 | ) | $ | (824,000 | ) |
| Noninterest                expense:Stock                related compensation |   |                                                                 | 19,000   |                                                                 |   |                                                                 |   |                                                                 | 38,000   |   |   |   |   |
| Professional                and administrative expenses                      |   |                                                                 | 37,000   |                                                                 |   | 86,000                                                               |   |                                                                 | 43,000   |   |   | 103,000 |   |
| Total                                                                        |   |                                                                 | 56,000   |                                                                 |   | 86,000                                                               |   |                                                                 | 81,000   |   |   | 103,000 |   |
| Net                Loss                                                      |   | $                                                                    | (262,000 | )                                                                    | $      | (455,000                                                             | )      | $                                                                    | (625,000 | ) | $ | (927,000 | ) |

----

| **FIRST                METROPLEX CAPITAL, INC.****CONDENSED                STATEMENT OF CASH FLOWS****FOR                THE SIX MONTHS ENDED JUNE 30,**  |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                           |   | **2006** |   | **2005** |   |
| Cash                Flows from Operating Activities:                                                                                                           |   |
| Net                Loss                                                                                                                                        |   | $ | (625,000 | ) | $ | (927,000 | ) |
| Adjustments                to reconcile net loss                                                                                                               |   |   |   |   |   |  |   |
| To                net cash provided by operating activities                                                                                                    |   |   |   |   |   |  |   |
| Equity                in loss of Bank                                                                                                                          |   |   | 544,000 |   |   | 824,000 |   |
|                  Stock related compensation                                                                                                               |   |   | 38,000 |   |   | — |   |
| Changes                in operating assets and liabilities:                                                                                                    |   |   |   |   |   |  |   |
| Other                assets                                                                                                                                    |   |   | 8,000 |   |   | 722,000 |   |
|                                                                                                                                                           |   |   |   |   |   |  |   |
| Net                cash provided by operating activities                                                                                                       |   |   | (35,000 | ) |   | 619,000 |   |
|                                                                                                                                                           |   |   |   |   |   |  |   |
| Cash                Flows from Investing Activities                                                                                                            |   |   |   |   |   |  |   |
| Sales                of equipment                                                                                                                              |   |   | — |   |   | — |   |
| Net                cash provided by investing activities                                                                                                       |   |   | — |   |   | — |   |
|                                                                                                                                                           |   |   |   |   |   |  |   |
| Cash                Flows from Financing Activities                                                                                                            |   |   | — |   |   | — |   |
|                                                                                                                                                           |   |   |   |   |   |   |   |
| Net                cash provided from financing activities                                                                                                     |   |   | — |   |   | — |   |
|                                                                                                                                                           |   |   |   |   |   |  |   |
| Net                change in cash and cash equivalents                                                                                                         |   |   | (35,000 | ) |   | 619,000 |   |
|                                                                                                                                                           |   |   |   |   |   |  |   |
| Cash                and cash equivalents, beginning of year                                                                                                    |   |   | 674,000 |   |   | 96,000 |   |
|                                                                                                                                                           |   |   |   |   |   |  |   |
| Cash                and cash equivalents, end of period                                                                                                        |   | $ | 639,000 |   | $ | 715,000 |   |
|                                                                                                                                                           |   |   |   |   |   |  |   |
| Supplemental                Disclosure of Cash Flow Information                                                                                                |   |   |   |   |   |  |   |
| Interest                paid                                                                                                                                   |   | $ | — |   | $ | — |   |
| Income                tax paid                                                                                                                                 |   | $ | — |   | $ | — |   |
|                                                                                                                                                           |   |   |   |   |   |   |   |

**ITEM      2.  **
**Management’s      Discussion and Analysis or Plan of Operation**

----

| ·   | we                have limited operating history upon which to base an estimate of                our                future financial performance; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | we                have incurred substantial start-up expenses associated with our                organization and our recent public offering and expect to sustain                losses                or achieve minimal profitability during our initial years of                operations; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | if                we are unable to implement our business plan and strategies, we will                be                hampered in our ability to develop business and serve or customers,                which,                in turn, could have an adverse effect on our financial                performance; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | if                we fail to retain our key employees, growth and profitability could                be                adversely affected; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | we                face substantial competition in our primary market                area; |
|--------------------|-------------------------------------------------------------------------------------------|

| ·   | the                Bank’s current legally mandated lending limits are lower than those of                our                competitors, which may impair our ability to attract                borrowers; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | an                economic downturn, especially one affecting our primary service area,                may                have an adverse effect on our financial                performance; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | changes                in governmental economic and monetary policies, the Internal Revenue                Code                and banking and credit regulations, as well as other factors, will                affect                the demand for loans and the ability of the Bank to attract                deposits; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | changes                in the general level of interest rates and other economic factors                can                affect the Bank’s interest income by affecting the spread between                interest-earning assets and interest-bearing                liabilities; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | we                have no current intentions of paying cash                dividends; |
|--------------------|---------------------------------------------------------------------------------------|

| ·   | we                are subject to significant government regulation and legislation                that                increases the cost of doing business and inhibits our ability to                compete; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | we                may not be able to raise additional capital on terms favorable to                us;                and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------|

| ·   | our                directors and executive officers beneficially own a significant portion                of                our outstanding common stock. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Executive      Overview**

***Introduction***

**Recent      Developments**

***Key      Performance Indicators at June 30, 2006***

| ·   | our                total assets grew to $60.1 million at the end of the second quarter                of                2006, representing an increase of $12.1 million, or 25%, from $48                million                at the end of 2005; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | our                total loans grew to $47.2 million at the end of the second quarter                of                2006, representing an increase of $20.9 million, or 79%, from $26.3                million at the end of 2005; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our                total deposits grew to $47.7 million at the end of the second quarter                of                2006, representing an increase of $12.6 million, or 35.9%, from $35.1                million at the end of 2005; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our                total revenue grew to $2,113,000 in the first two quarters of 2006                compared to $607,000 in the first two quarters of 2005, representing                an                increase of $1,506,000, or 248%;                and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our                net loss was $625,000 in the first two quarters of 2006, representing                a                decrease of $302,000, or 33%, from a net loss of $927,000 in the                first two                quarters of 2005. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Results      of Operations**

***Net      Interest Income and Net Interest Margin***

----

| **QUARTERLY                FINANCIAL SUMMARY - UNAUDITED**                   |   |   |
|------------------------------------------------------------------------------|--------|--------|
| Consolidated                Daily Average Balances, Average Yields and Rates |   |   |
| (Dollars                in thousands except per share data)                  |   |   |

|                                                      |   | For                the six months ended |   | For                the six months ended |   | For                the year ended |   |
|-----------------------------------------------------------|--------|-----------------------------------------|--------|-----------------------------------------|--------|-----------------------------------|--------|
|                                                      |   | June                30, 2006            |   | June                30, 2005            |   | December                31, 2005  |   |
|                                                      |   | Average                Balance          |   | RevenueExpense                          |   | YieldRate                         |   | AverageBalance |   | RevenueExpense |   | YieldRate |   | AverageBalance |   | RevenueExpense |   | YieldRate |   |
|                                                      |   |                                    |   |                                    |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Assets**                                                |   |                                    |   |                                    |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning                assets:                   |   |                                    |   |                                    |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                net of reserve                       |   |                                    | 33,329 |                                    |   | 1,468                             |   |   | 8.8 | % |   | 11,765 |   |   | 457 |   |   | 7.7 | % |   | 17,231 |   | $ | 1,380 |   |   | 8.0 | % |
| Federal                funds sold                         |   |                                    | 19,343 |                                    |   | 445                               |   |   | 4.6 | % |   | 9,838 |   |   | 127 |   |   | 2.6 | % |   | 10,857 |   |   | 347 |   |   | 3.2 | % |
| Securities                                                |   |                                    | 420    |                                    |   | 13                                |   |   | 6.0 | % |   | 420 |   |   | 13 |   |   | 6.0 | % |   | 420 |   |   | 25 |   |   | 6.0 | % |
| Total                earning assets                       |   |                                    | 53,092 |                                    |   | 1,926                             |   |   | 7.3 | % |   | 22,023 |   |   | 597 |   |   | 5.4 | % |   | 28,508 |   |   | 1,752 |   |   | 6.1 | % |
| Cash                and other assets                      |   |                                    | 3,729  |                                    |   |                              |   |   |   |   |   | 2,002 |   |   |   |   |   |   |   |   | 2,390 |   |   |   |   |   |   |   |
| Total                assets                               |   | $                                       | 56,821 |                                    |   |                              |   |   |   |   | $ | 24,025 |   |   |   |   |   |   |   | $ | 30,898 |   |   |   |   |   |   |   |
|                                                      |   |                                    |   |                                    |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Liabilities                and Stockholders' Equity**   |   |                                    |   |                                    |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW                accounts                               |   | $                                       | 1,468  |                                    |   | 9                                 |   |   | 1.2 | % | $ | 840 |   | $ | 2 |   |   | 0.5 | % | $ | 835 |   | $ | 6 |   |   | 0.7 | % |
| Money                market accounts                      |   |                                    | 19,202 |                                    |   | 277                               |   |   | 2.9 | % |   | 4,801 |   |   | 53 |   |   | 2.2 | % |   | 8,717 |   |   | 226 |   |   | 2.6 | % |
| Savings                accounts                           |   |                                    | 389    |                                    |   | 3                                 |   |   | 1.5 | % |   | 230 |   |   | 2 |   |   | 1.7 | % |   | 242 |   |   | 4 |   |   | 1.7 | % |
| Certificates                of deposit                    |   |                                    | 3,612  |                                    |   | 75                                |   |   | 4.2 | % |   | 633 |   |   | 9 |   |   | 2.8 | % |   | 1,522 |   |   | 54 |   |   | 3.5 | % |
| Certificates                of deposit $100,000 or more   |   |                                    | 9,677  |                                    |   | 203                               |   |   | 4.2 | % |   | 1,720 |   |   | 25 |   |   | 2.9 | % |   | 2,799 |   |   | 98 |   |   | 3.5 | % |
| Total                interest bearing deposits            |   |                                    | 34,348 |                                    |   | 566                               |   |   | 3.3 | % |   | 8,224 |   |   | 91 |   |   | 2.2 | % |   | 14,115 |   |   | 388 |   |   | 2.7 | % |
| Noninterest                bearing deposits               |   |                                    | 10,546 |                                    |   |                              |   |   |   |   |   | 2,566 |   |   |   |   |   |   |   |   | 3,875 |   |   |   |   |   |   |   |
| Other                liabilities                          |   |                                    | 84     |                                    |   |                              |   |   |   |   |   | 25 |   |   |   |   |   |   |   |   | 52 |   |   |   |   |   |   |   |
| Stockholders                equity                        |   |                                    | 11,844 |                                    |   |                              |   |   |   |   |   | 13,210 |   |   |   |   |   |   |   |   | 12,856 |   |   |   |   |   |   |   |
| Total                liabilities and stockholders' equity |   | $                                       | 56,822 |                                    |   |                              |   |   |   |   | $ | 24,025 |   |   |   |   |   |   |   | $ | 30,898 |   |   |   |   |   |   |   |
|                                                      |   |                                    |   |                                    |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest income                        |   |                                    |   |                                    |   | 1,360                             |   |   |   |   |   |   |   |   | 506 |   |   |   |   |   |   |   |   | 1,364 |   |   |   |   |
| Net                interest spread                        |   |                                    |   |                                    |   |                              |   |   | 4.0 | % |   |   |   |   |   |   |   | 3.2 | % |   |   |   |   |   |   |   | 3.4 | % |
| Net                interest margin                        |   |                                    |   |                                    |   |                              |   |   | 5.1 | % |   |   |   |   |   |   |   | 4.6 | % |   |   |   |   |   |   |   | 4.8 | % |
|                                                      |   |                                    |   |                                    |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision                for loan loss                    |   |                                    |   |                                    |   | 325                               |   |   |   |   |   |   |   |   | 150 |   |   |   |   |   |   |   |   | 300 |   |   |   |   |
| Non-interest                income                        |   |                                    |   |                                    |   | 187                               |   |   |   |   |   |   |   |   | 10 |   |   |   |   |   |   |   |   | 31 |   |   |   |   |
| Non-interest                expense                       |   |                                    |   |                                    |   | 1847                              |   |   |   |   |   |   |   |   | 1,293 |   |   |   |   |   |   |   |   | 2,676 |   |   |   |   |
| Income                (loss) before income taxes          |   |                                    |   |                                    |   | (625                              | )      |   |   |   |   |   |   |   | (927 | ) |   |   |   |   |   |   |   | (1,581 | ) |   |   |   |
| Income                taxes expense (benefit)             |   |                                    |   |                                    |   | —                           |   |   |   |   |   |   |   |   | — |   |   |   |   |   |   |   |   | — |   |   |   |   |
|                                                      |   |                                    |   |                                    |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                loss                                   |   |                                    |   |                                    | $      | (625                              | )      |   |   |   |   |   |   | $ | (927 | ) |   |   |   |   |   |   | $ | (1,581 | ) |   |   |   |
|                                                      |   |                                    |   |                                    |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings                (Loss) per share                  |   |                                    |   |                                    |   | (0.37                             | )      |   |   |   |   |   |   |   | (0.55 | ) |   |   |   |   |   |   |   | (0.94 | ) |   |   |   |
| Return                on average equity                   |   |                                    |   |                                    |   | (10.6                             | %)     |   |   |   |   |   |   |   | (9.4 | %) |   |   |   |   |   |   |   | -73.8 | % |   |   |   |

----

***Provision      for Loan Losses***

***Noninterest      Income***

***Noninterest      Expense***

|                                          |   | **Six                months****ended****June                30, 2006** |      | **Six                months****ended****June                30, 2005** |   | **Three                months****ended****June                30, 2006** |   | **Three                months****ended****June                30, 2005** |    |
|-----------------------------------------------|--------|------------------------------------------------------------------------|-----------|------------------------------------------------------------------------|--------|--------------------------------------------------------------------------|--------|--------------------------------------------------------------------------|---------|
| Salaries                and employee benefits |   | $                                                                      | 1,098,000 |                                                                   | $      | 702,000                                                                  |   | $                                                                        | 542,000 |   | $ | 350,000 |   |
| Net                occupancy expense          |   |                                                                   | 276,000   |                                                                   |   | 221,000                                                                  |   |                                                                     | 145,000 |   |   | 116,000 |   |
| Office                expenses                |   |                                                                   | 66,000    |                                                                   |   | 49,000                                                                   |   |                                                                     | 36,000  |   |   | 33,000 |   |
| Data                processing                |   |                                                                   | 140,000   |                                                                   |   | 72,000                                                                   |   |                                                                     | 85,000  |   |   | 45,000 |   |
| Professional                fees              |   |                                                                   | 79,000    |                                                                   |   | 89,000                                                                   |   |                                                                     | 61,000  |   |   | 58,000 |   |
| Advertising                and promotional    |   |                                                                   | 42,000    |                                                                   |   | 34,000                                                                   |   |                                                                     | 27,000  |   |   | 11,000 |   |
| Other                expenses                 |   |                                                                   | 146,000   |                                                                   |   | 126,000                                                                  |   |                                                                     | 92,000  |   |   | 84,000 |   |
| Total                noninterest expenses     |   | $                                                                      | 1,847,000 |                                                                   | $      | 1,293,000                                                                |   | $                                                                        | 988,000 |   | $ | 696,000 |   |
|                                          |   |                                                                   |      |                                                                   |   |                                                                     |   |                                                                     |    |   |   |   |   |
|                                          |   |                                                                   |      |                                                                   |   |                                                                     |   |                                                                     |    |   |   |   |   |

----

***Income      Taxes***

**Financial      Condition**

***Short-Term      Investments and Interest-bearing Deposits in Other Financial      Institutions***

***Investment      Securities***

----

***Loan      Portfolio***

|                                                |   | **As                of** **June                30, 2006** |       | **As                of****December                31, 2005** |   |
|----------------------------------------------------------|--------|----------------------------------------------------------------|------------|--------------------------------------------------------------|--------|
| Real                estate - mortgage                    |   | $                                                              | 12,844,000 |                                                         | $      | 10,342,000 |   |
| Commercial                and industrial                 |   |                                                           | 24,046,000 |                                                         |   | 11,572,000 |   |
| Consumer                                                 |   |                                                           | 1,558,000  |                                                         |   | 753,000 |   |
| Real                estate - construction                |   |                                                           | 8,785,000  |                                                         |   | 3,619,000 |   |
| Other                loans                               |   |                                                           | 0          |                                                         |   | 0 |   |
| Gross                loans and leases                    |   | $                                                              | 47,233,000 |                                                         | $      | 26,286,000 |   |
|                                                     |   |                                                           |       |                                                         |   |  |   |
| Less:                Allowance for loan and lease losses |   |                                                           | 725,000    |                                                         |   | 40,000 |   |
| Less:                Deferred loan fees                  |   |                                                           | 133,000    |                                                         |   | 97,000 |   |
| Loans,                net                                |   | $                                                              | 46,375,000 |                                                         | $      | 25,789,000 |   |
|                                                     |   |                                                           |       |                                                         |   |   |   |

----

|                                            |   | **As                of June 30, 2006**                           |       |
|-------------------------------------------------|--------|------------------------------------------------------------------|------------|
|                                            |   | **Over                1 Year****through                5 Years** |       | **Over                5 Years** |   |
|                                            |   | **One                Year****or                Less**            |       | **Fixed****Rate** |   | **Floating                or Adjustable Rate** |   | **Fixed****Rate** |   | **Floating                or Adjustable Rate** |   | **Total**  |   |
|                                            |   |                                                             |       |   |   |   |   |   |   |   |   |   |   |
| Real                estate — construction |   | $                                                                | 3,773,000  |   | $ | 5,012,000 |   | $ | 0 |   | $ | 0 |   | $ | 0 |   | $ | 8,785,000 |   |
| Real                estate — secured      |   |                                                             | 4,155,000  |   |   | 7,085,000 |   |   | 0 |   |   | 1,604,000 |   |   | 0 |   |   | 12,844,000 |   |
| Commercial                and industrial        |   |                                                             | 6,830,000  |   |   | 8,660,000 |   |   | 1,345,000 |   |   | 7,211,000 |   |   | 0 |   |   | 24,046,000 |   |
| Consumer                                        |   |                                                             | 1,065,000  |   |   | 493,000 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 1,558,000 |   |
| Total                                           |   | $                                                                | 15,823,000 |   | $ | 21,250,000 |   | $ | 1,345,000 |   | $ | 8,815,000 |   | $ | 0 |   | $ | 47,233,000 |   |
|                                            |   |                                                             |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

***Nonperforming      Loans and Assets***

***Allowance      for Loan Losses***

----

|                                                     |   | **As                of June 30,****2006** |    | **As                of December 31,****2005**   |   |
|----------------------------------------------------------|--------|-------------------------------------------|---------|-------------------------------------------------|--------|
|                                                     |   | **Amt.**                                  |    | **Loan                Category to Gross Loans** |   | **Amt.** |   | **Loan                Category to Gross Loans** |   |
| **Allocated:**                                           |   |                                      |    |                                            |   |   |   |   |   |
| Real                estate - construction                |   | $                                         | 132,000 |                                            |   | 18 | % | $ | 57,000 |   |   | 14 | % |
| Real                estate - secured                     |   |                                      | 193,000 |                                            |   | 27 |   |   | 143,000 |   |   | 36 |   |
| Commercial                and industrial                 |   |                                      | 377,000 |                                            |   | 52 |   |   | 189,000 |   |   | 47 |   |
| Consumers                                                |   |                                      | 23,000  |                                            |   | 3 |   |   | 11,000 |   |   | 3 |   |
| Total                allowance for loan and lease losses |   | $                                         | 725,000 |                                            |   | 100 | % | $ | 400,000 |   |   | 100 | % |
|                                                     |   |                                      |    |                                            |   |   |   |   |   |   |   |   |   |
|                                                     |   |                                      |    |                                            |   |   |   |   |   |   |   |   |   |

***Nonearning      Assets***

***Deposits***

----

|                                                    |   | **For                the six months ended** |   | **For                the six months ended** |   | **For                the year ended** |   |
|---------------------------------------------------------|--------|---------------------------------------------|--------|---------------------------------------------|--------|---------------------------------------|--------|
|                                                    |   | **June                30, 2006**            |   | **June                30, 2005**            |   | **December                31, 2005**  |   |
| (000's)                                                 |   | Average                                     |   | Percent                of                   |   |                                  |   | Average |   | Percent                of |   |   |   | Average |   | Percent                of |   |   |   |
|                                                    |   | Balance                                     |   | Deposits                                    |   | Rate                                  |   | Balance |   | Deposits |   | Rate |   | Balance |   | Deposits |   | Rate |   |
| Noninterest                bearing deposits             |   | $                                           | 10,546 |                                        |   | 23.5                                  | %      |   | 0.0 | % | $ | 2,566 |   |   | 21.1 | % |   | 0.0 | % | $ | 3,875 |   |   | 21.5 | % |   | 0.0 | % |
| NOW                accounts                             |   |                                        | 1,468  |                                        |   | 3.3                                   | %      |   | 1.2 | % |   | 840 |   |   | 10.5 | % |   | 0.5 | % |   | 835 |   |   | 4.6 | % |   | 0.7 | % |
| Money                market accounts                    |   |                                        | 19,202 |                                        |   | 42.6                                  | %      |   | 2.9 | % |   | 4,801 |   |   | 43.9 | % |   | 2.2 | % |   | 8,717 |   |   | 48.5 | % |   | 2.6 | % |
| Savings                accounts                         |   |                                        | 389    |                                        |   | 0.9                                   | %      |   | 1.5 | % |   | 230 |   |   | 2.9 | % |   | 1.7 | % |   | 242 |   |   | 1.3 | % |   | 1.4 | % |
| Certificates                of deposit                  |   |                                        | 3,612  |                                        |   | 8.1                                   | %      |   | 4.2 | % |   | 633 |   |   | 5.6 | % |   | 2.8 | % |   | 1,523 |   |   | 8.5 | % |   | 3.5 | % |
| Certificates                of deposit $100,000 or more |   |                                        | 9,677  |                                        |   | 21.6                                  | %      |   | 4.2 | % |   | 1,720 |   |   | 15.9 | % |   | 2.9 | % |   | 2,799 |   |   | 15.6 | % |   | 3.5 | % |
| Total                interest bearing deposits          |   | $                                           | 44,894 |                                        |   | 100.0                                 | %      |   | 2.5 | % | $ | 10,790 |   |   | 100.0 | % |   | 1.69 | % | $ | 17,991 |   |   | 100.0 | % |   | 2.2 | % |
|                                                    |   |                                        |   |                                        |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                    |   |                                        |   |                                        |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                |   |   | **June                30,****2006**  |   |   | **December                31,****2005**  |   |
|-----------------------------------------------------|--------|--------|-------------------------------------------|--------|--------|-----------------------------------------------|--------|
|                                                |   |   |                                      |   |   |                                          |   |
| Three                months or less                 |   | $      | 4,177,000                                 |   | $      | 340,000                                       |   |
| Over                three months through six months |   |   | 1,427,000                                 |   |   | 4,524,000                                     |   |
| Over                six months through 12 months    |   |   | 2,714,000                                 |   |   | 1,809,000                                     |   |
| Over                12 months                       |   |   | 1,980,000                                 |   |   | 1,543,000                                     |   |
| Total                                               |   | $      | 10,298,000                                |   | $      | 8,216,000                                     |   |
|                                                |   |   |                                      |   |   |                                          |   |
|                                                |   |   |                                      |   |   |                                          |   |

***Return      on Equity and Assets***

|                                    |   | **Six                Months Ended****June                30,****2006** |   | **Year                ended December 31,****2005** |   |
|-----------------------------------------|--------|------------------------------------------------------------------------|--------|----------------------------------------------------|--------|
|                                    |   |                                                                   |   |                                               |   |
| Return                on average assets |   |                                                                   | (2.2   | %)                                                 |   | (4.6 | %) |
| Return                on average equity |   |                                                                   | (10.0  | %)                                                 |   | (11.2 | %) |
| Dividend                payout ratio    |   |                                                                   | 0.0    | %                                                  |   | 0.0 | % |
| Equity                to assets ratio   |   |                                                                   | 20.5   | %                                                  |   | 41.6 | % |
|                                    |   |                                                                   |   |                                               |   |   |   |

***Off-Balance      Sheet Arrangements***

----

***Borrowings***

|                       |   | **As                of June 30, 2006** |       |
|---------------------------------|--------|----------------------------------------|------------|
|                            |   | **Less                than One Year**  |       | **One                Year to Three Years** |   | **Over                Three Years to Five Years** |   | **Over                Five Years** |   |
|                            |   |                                   |       |   |   |   |   |   |   |
| Time                deposits    |   | $                                      | 10,646,000 |   | $ | 821,000 |   | $ | 2,543,000 |   | $ | 0 |   |
| Operating                leases |   |                                   | 196,000    |   |   | 433,000 |   |   | 458,000 |   |   | 431,000 |   |
| Total                           |   | $                                      | 10,842,000 |   | $ | 1,254,000 |   | $ | 3,001,000 |   | $ | 431,000 |   |
|                            |   |                                   |       |   |   |   |   |   |   |   |   |   |   |

***Capital      Resources and Capital Adequacy Requirements***

----

|                                                    |   |   | **Actual**         |   |   | **For                Capital Adequacy Purposes**  |   |   | **To                Be Well Capitalized Under Prompt Corrective Action                Problems**  |   |
|---------------------------------------------------------|--------|--------|-------------------------|--------|--------|--------------------------------------------------------|--------|--------|--------------------------------------------------------------------------------------------------------|--------|
|                                                    |   |   | **Amount**         |   |   | **Ratio**                                              |   |   | **Amount**                                                                                             |   |   | **Ratio** |   |   | **Amount** |   |   | **Ratio** |   |
|                                                    |   |   | **<000’s>** |   |   |                                                   |   |   | **<000’s>**                                                                                |   |   |   |   |   | **<000’s>** |   |   |   |   |
|                                                    |   |   |                    |   |   |                                                   |   |   |                                                                                                   |   |   |   |   |   |   |   |   |   |   |
| **As                of June 30, 2006**                  |   |   |                    |   |   |                                                   |   |   |                                                                                                   |   |   |   |   |   |   |   |   |   |   |
| Total                Capital (to risk-weighted assets)  |   | $      | 12,280                  |   |   | 24.2                                                   | %      | $      | 4,052                                                                                                  |   |   | >8 | % | $ | 5,066 |   |   | >10 | % |
| Tier                1 capital (to risk-weighted assets) |   |   | 11,646                  |   |   | 23.0                                                   | %      |   | 2,026                                                                                                  |   |   | >4 | % |   | 3,039 |   |   | >6 | % |
| Tier                1 capital (to average assets)       |   |   | 11,646                  |   |   | 19.3                                                   | %      |   | 2,413                                                                                                  |   |   | >4 | % |   | 3,016 |   |   | >5 | % |
| **As                of December 31, 2005**              |   |   |                         |   |   |                                                   |   |   |                                                                                                        |   |   |  |   |   |  |   |   |  |   |
| Total                Capital (to risk-weighted assets)  |   | $      | 12,584                  |   |   | 39.9                                                   | %      |   | 2,521                                                                                                  |   |   | >8 | % |   | 3,151 |   |   | >10 | % |
| Tier                1 capital (to risk-weighted assets) |   |   | 12,190                  |   |   | 38.6                                                   | %      |   | 1,260                                                                                                  |   |   | >4 | % |   | 1,890 |   |   | >6 | % |
| Tier                1 capital (to average assets)       |   |   | 12,190                  |   |   | 29.6                                                   | %      |   | 1,647                                                                                                  |   |   | >4 | % |   | 2,059 |   |   | >5 | % |
|                                                    |   |   |                    |   |   |                                                   |   |   |                                                                                                   |   |   |   |   |   |   |   |   |   |   |
|                                                    |   |   |                    |   |   |                                                   |   |   |                                                                                                   |   |   |   |   |   |   |   |   |   |   |

***Liquidity      Management***

*i.e*

----

***Quantitative      and Qualitative Disclosure About Market Risks***

----

|                                                 |   | **Change                in Future Net Interest Income****At                June 30, 2006** |     |
|------------------------------------------------------|--------|--------------------------------------------------------------------------------------------|----------|
|                                                 |   | **Dollar****Change**                                                                       |     | **Percentage****Change** |   |
| +200                basis points over one year       |   |                                                                                       | 108,000  |   |   | 3.1 |   |   | % |  |
| +100                basis points over one year       |   |                                                                                       | 57,000   |   |   | 1.6 |   |   | % |  |
| —100                basis points over one year |   |                                                                                       | (159,000 | ) |   | (4.6 | ) |   | % |  |
| —200                basis points over one year |   |                                                                                       | (322,000 | ) |   | (9.3 | ) |   | % |  |
|                                                 |   |                                                                                       |     |   |   |   |   |   |   |   |
|                                                 |   |                                                                                       |     |   |   |   |   |   |   |   |

|                                                                                                             |   | **As                of June 30, 2006****Volumes                Subject to Repricing Within** |   |
|------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------|--------|
|                                                                                                             |   | **0-1                Days**                                                                  |   | **2-90                Days** |   | **91-365                Days** |   | **1-3                Years** |   | **Over                3 Years** |   | **Non-Interest                Sensitive** |   | **Total** |   |
| **Assets:                <000’s>**                                                                   |   |                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   |                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Short-term                investments and federal funds sold                                                     |   | $                                                                                            | 9,005  |   | $ | 0 |   | $ | 0 |   | $ | 0 |   | $ | 0 |   | $ | 0 |   | $ | 9,005 |   |
| Investment                securities                                                                             |   |                                                                                         | 0      |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 420 |   |   | 0 |   |   | 420 |   |
| Loans                                                                                                            |   |                                                                                         | 17,815 |   |   | 4,853 |   |   | 9,350 |   |   | 6,762 |   |   | 8,422 |   |   | 30 |   |   | 47,233 |   |
| Fixed                and other assets                                                                            |   |                                                                                         | 0      |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 3,421 |   |   | 3,420 |   |
| Total                Assets                                                                                      |   | $                                                                                            | 26,820 |   | $ | 4.853 |   | $ | 9,350 |   | $ | 6,762 |   | $ | 8,842 |   | $ | 3,451 |   | $ | 60,078 |   |
|                                                                                                             |   |                                                                                         |        |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| **Liabilities                and Shareholders’ Equity:**                                                   |   |                                                                                         |        |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Non-interest-bearing,                interest-bearing checking, savings and money market                accounts |   |                                                                                         | 8,554  |   |   | 0 |   |   | 0 |   |   | 12,940 |   |   | 0 |   |   | 12,191 |   |   | 33,685 |   |
| Certificates                of deposit                                                                           |   |                                                                                         | 0      |   |   | 4,674 |   |   | 5,972 |   |   | 821 |   |   | 2,543 |   |   | 0 |   |   | 14,010 |   |
| Borrowed                funds                                                                                    |   |                                                                                         | 0      |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |
| Other                liabilities                                                                                 |   |                                                                                         | 0      |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 94 |   |   | 94 |   |
| Shareholders’                equity                                                                        |   |                                                                                         | 0      |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 12,289 |   |   | 12,289 |   |
| Total                liabilities and shareholders’ equity                                                  |   |                                                                                         | 8,554  |   |   | 4,674 |   |   | 5,972 |   |   | 13,761 |   |   | 2,543 |   |   | 24,524 |   |   | 60,078 |   |
| Period                gap                                                                                        |   |                                                                                         | 18,266 |   |   | 179 |   |   | 3,378 |   |   | (6,999 | ) |   | 6,299 |   |   |   |   |   |   |   |
| Cumulative                gap                                                                                    |   |                                                                                         | 18,266 |   |   | 18,445 |   |   | 21,823 |   |   | 14,824 |   |   | 21,123 |   |   |   |   |   |   |   |
| Period                gap to total assets                                                                        |   |                                                                                         | 30     | % |   | 0 | % |   | 6 | % |   | (12 | %) |   | 11 | % |   |   |   |   |   |   |
| Cumulative                gap to total assets                                                                    |   |                                                                                         | 30     | % |   | 31 | % |   | 36 | % |   | 25 | % |   | 35 | % |   |   |   |   |   |   |
|                                                                                                             |   |                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   |                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

***Aggregate      Contractual Obligations***

|                                  |   |  **As                of June 30, 2006** |    |
|---------------------------------------|--------|----------------------------------------------|---------|
|                                  |   | **Less                than One Year**        |    | **One                Year to Three Years** |   | **Over                Three Years to Five Years** |   | **Over                Five Years** |   |
|                                  |   |                                         |    |   |   |   |   |   |   |
| Operating                Leases  |   | $                                            | 196,000 |   | $ | 433,000 |   | $ | 458,000 |   | $ | 431,000 |   |
|                                  |   |                                         |         |   |   |  |   |   |  |   |   |  |   |
| Total                                 |   | $                                            | 196,000 |   | $ | 433,000 |   | $ | 458,000 |   | $ | 431,000 |   |
|                                  |   |                                         |    |   |   |   |   |   |   |   |   |   |   |
|                                  |   |                                         |    |   |   |   |   |   |   |   |   |   |   |

**ITEM      3.  **
**Controls      and Procedures**

----

**PART      II.**
**OTHER      INFORMATION**

**ITEM      1.  **
**Legal      Proceedings**

**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**

|  **Exhibit                Number** |   | **Description                of Exhibit**                                                                                                                            |
|-----------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1                                    |   | Rule                13a-14(a) Certification of Chief Executive Officer.                                                                                              |
|                                    |   |                                                                                                                                                                 |
| 31.2                                    |   | Rule                13a-14(a) Certification of Chief Financial Officer.                                                                                              |
|                                    |   |                                                                                                                                                                 |
| 32                                      |   | Certification                pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section                906 of                the Sarbanes-Oxley Act of 2002. |
|                                    |   |                                                                                                                                                                 |

----

**SIGNATURES**

|                            |                                                                                |                                |
|--------------------------------------|-------------------------------------------------------------------------------------|-------------------------------------|
|                                 | FIRST                METROPLEX CAPITAL, INC.                                        |
|                            |                                                                           |                           |
| Date:                August 14, 2006 | By:                                                                            | /s/                Patrick G. Adams |
|                                 | Patrick                G. AdamsPresident                and Chief Executive Officer |
|                                 |                                                                                |

----