FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

(Mark One)

(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
    SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2007, OR
                               --------------

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

For the transition period from ____________ to ____________.

Commission File No. 0-12870.

                        FIRST CHESTER COUNTY CORPORATION
                        --------------------------------
             (Exact name of Registrant as specified in its charter)

             Pennsylvania                               23-2288763
             ------------                               ----------
    (State or other jurisdiction of                   (IRS Employer
     incorporation or organization)                 Identification No.)

   9 North High Street, West Chester, Pennsylvania           19380
   -----------------------------------------------           -----
       (Address of principal executive office)             (Zip code)

                                 (484) 881-4000
                                 --------------
              (Registrant's telephone number, including area code)

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

Indicate by check mark whether the Registrant is a large  accelerated  filer, an
accelerated   filer,  or  a   non-accelerated   filer.  See  the  definition  of
"accelerated  filer and large  accelerated  filer" in Rule 12b-2 of the Exchange
Act.   (Check  one):   Large   accelerated   filer  ___   Accelerated   filer  X
Non-accelerated filer __

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

The number of shares  outstanding of Common Stock of the Registrant as of May 8,
2007 was 5,162,401.

                                       1
<PAGE>

                                      INDEX
                                                                            PAGE

Part I. FINANCIAL INFORMATION

   Item 1 -   Financial Statements
              Consolidated Balance Sheet
              March 31, 2007 (unaudited) and December 31, 2006                3

              Consolidated Statements of Income
              Three-Months Ended March 31, 2007 and 2006 (unaudited)          4

              Consolidated Statements of Cash Flows
              Three-Months Ended March 31, 2007 and 2006 (unaudited)          5

              Consolidated Statements of Stockholders' Equity
              Three-Months Ended March 31, 2007 and 2006 (unaudited)          6

              Notes to Consolidated Financial Statements                    7-9

   Item 2 -   Management's Discussion and Analysis of
              Financial Condition and Results of Operations               10-22

   Item 3 -   Quantitative and Qualitative Disclosures About Market Risk     23

   Item 4 -   Controls & Procedures                                          23

Part II. OTHER INFORMATION

   Item 1 -   Legal Proceedings                                              24

   Item 1A -  Risk Factors                                                   24

   Item 2 -   Unregistered Sales of Equity Securities and Use of Proceeds    24

   Item 3 -   Defaults Upon Senior Securities                                25

   Item 4 -   Submission of Matters to a Vote of Security Holders            25

   Item 5 -   Other Information                                              25

   Item 6 -   Exhibits                                                       25

   Signatures                                                                26

   Index to Exhibits                                                         27

   Exhibits                                                               28-33

                                       2
<PAGE>

                FIRST CHESTER COUNTY CORPORATION AND SUBSIDIARIES

                          PART I. FINANCIAL INFORMATION

ITEM 1. Financial Statements

                           CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>

 (Dollars in thousands)                                              March 31,
                                                                       2007       December 31,
                                                                    (unaudited)      2006
<S>                                                                 <C>           <C>
                                                                    -----------   ------------
ASSETS
 Cash and due from banks                                             $ 24,110      $ 27,556
 Federal funds sold and other overnight investments                    74,328        44,500
 Interest bearing deposits                                                264           285
                                                                     --------      --------
     Total cash and cash equivalents                                   98,702        72,341
                                                                     --------      --------
 Investment securities held-to-maturity (fair value of $0
     at March 31, 2007 and $5 at December 31, 2006, respectively)           -             5

 Investment securities available-for-sale, at fair value               86,936        88,709

 Loans and leases                                                     701,549       694,343
 Less:  allowance for loan and lease losses                            (8,128)       (8,186)
     Net loans and leases                                            --------     ----------
                                                                      693,421       686,157
 Premises and equipment, net                                           13,572        13,988
 Other assets                                                          11,183        10,894
                                                                     --------      --------
     Total assets                                                    $903,814      $872,094
                                                                     ========      ========
LIABILITIES
 Deposits
     Non-interest-bearing                                            $124,840      $129,911
     Interest-bearing (including certificates of deposit over $100
        of $56,482 and $43,825 at March 31, 2007 and
        December 31, 2006, respectively)                              623,540       594,757
                                                                     --------      --------
     Total deposits                                                   748,380       724,668

 Federal Home Loan Bank advances and other borrowings                  69,748        61,596
 Subordinated Debt                                                     15,465        15,465
 Other liabilities                                                      6,341         7,103
                                                                     --------      ---------
     Total liabilities                                               $839,934      $808,832
                                                                     --------      --------
STOCKHOLDERS' EQUITY
 Common stock, par value $1.00; authorized 10,000,000 shares;
     outstanding, 5,279,815 at March 31, 2007 and December 31, 2006     5,280         5,280
 Additional paid-in capital                                            11,102        11,939
 Retained earnings                                                     51,165        50,486
 Accumulated other comprehensive loss                                 ( 1,504)       (1,473)
 Treasury stock, at cost:  94,185 shares and 128,075 shares
       at March 31, 2007 and December 31, 2006, respectively           (2,163)       (2,970)
                                                                     --------      --------
     Total stockholders' equity                                        63,880        63,262
                                                                     --------      --------
     Total liabilities and stockholders' equity                      $903,814      $872,094
                                                                     ========      ========

The accompanying notes are an integral part of these statements.
</TABLE>

                                       3
<PAGE>

                FIRST CHESTER COUNTY CORPORATION AND SUBSIDIARIES

                        CONSOLIDATED STATEMENTS OF INCOME
                                   (UNAUDITED)

(Dollars in thousands - except per share)                Three Months Ended
                                                              March 31,
                                                          2007       2006
                                                          ----       ----
INTEREST INCOME
 Loans and leases, including fees                      $  11,904   $  10,779
 Investment securities                                     1,022       1,104
 Federal funds sold and deposits in Banks                    597         376
                                                       ---------   ---------
     Total interest income                                13,523      12,259
                                                       ---------   ---------
INTEREST EXPENSE
 Deposits                                                  4,893       3,197
 Subordinated debt                                           335         298
 Federal Home Loan Bank advances and other borrowings        595         640
                                                       ---------   ---------
     Total interest expense                                5,823       4,135
                                                       ---------   ---------
     Net interest income                                   7,700       8,124

 Provision for loan and lease losses                           -           3
                                                       ---------   ---------
     Net interest income after provision
     for loan and lease losses                             7,700       8,121
                                                       ---------   ---------
NON-INTEREST INCOME
 Wealth Management                                           887        809
 Service charges on deposit accounts                         539        453
 Investment securities gains (losses), net                     2        (80)
 Operating lease rental income                               308        268
 Gains (losses) on the sale of fixed assets                    -         10
 Gains and fees on the sale of residential mortgages          63         78
 Other                                                       556        580
                                                       ---------   ---------
     Total non-interest income                             2,355       2,118
                                                       ---------   ---------
NON-INTEREST EXPENSE
 Salaries and employee benefits                            4,700       4,387
 Occupancy, equipment and data processing                  1,354       1,351
 Depreciation expense on operating leases                    258         232
 Bank shares tax                                             160         271
 Professional services                                       514         464
 Marketing                                                   239         102
 Other                                                       906         869
                                                         -------   ---------
     Total non-interest expense                            8,131       7,676
                                                       ---------   ---------
     Income before income taxes                            1,924       2,563

INCOME TAXES                                                 548         717
                                                       ---------   ---------
NET INCOME                                             $   1,376   $   1,846
                                                       =========   =========

PER SHARE DATA
 Basic earnings per common share                       $    0.27   $    0.36
                                                       =========   =========
 Diluted earnings per common share                     $    0.26   $    0.35
                                                       =========   =========
 Dividends declared                                    $   0.135   $   0.135
                                                       =========   =========
Basic weighted average shares outstanding              5,143,502   5,154,182
                                                       =========   =========
Diluted weighted average shares outstanding            5,214,646   5,243,928
                                                       =========   =========

The accompanying notes are an integral part of these statements.

                                       4
<PAGE>

                FIRST CHESTER COUNTY CORPORATION AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                         Three Months Ended
 (Dollars in thousands)                                                       March 31,
                                                                         2007        2006
                                                                         ----        ----
<S>                                                                      <C>         <C>

OPERATING ACTIVITIES
 Net Income                                                            $  1,376    $  1,846
 Adjustments to reconcile net income to net cash
        provided by operating activities:
 Depreciation                                                               664         600
 Provision for loan and lease losses                                          -           3
 Amortization of investment security premiums
        and accretion of discounts, net                                      47          65
 Amortization of deferred loan fees                                          (2)        (46)
 Investment securities (gains) and losses, net                               (2)         80
 (Increase) in other assets                                                (273)       (707)
 (Decrease) in other liabilities                                           (762)     (1,416)
                                                                       --------    --------
     Net cash provided by operating activities                         $  1,048    $    425
                                                                       --------    --------
INVESTING ACTIVITIES
 Net increase in loans                                                   (7,262)    (21,350)
 Proceeds from sales of investment securities available-for-sale          4,412       3,363
 Proceeds from maturities of investment securities available-for-sale     1,771       4,180
 Proceeds from maturities of investment securities held-to-maturity           5           -
 Purchases of investment securities available-for-sale                   (4,502)     (2,918)
 Purchases of premises and equipment, net of sales                         (248)        (88)
                                                                       --------    --------
     Net cash used in investing activities                             $ (5,824)   $(16,813)
                                                                       --------    --------
FINANCING ACTIVITIES
 Increase (decrease) in Federal Home Loan Bank Advances
   and other short term borrowings                                       (5,266)      2,059
 Increase in Federal Home Loan Bank borrowings                           15,000           -
 Decrease in Federal Home Loan Bank borrowings                           (1,581)        (77)
 Net increase (decrease) in deposits                                     23,712      21,893
 Cash dividends paid                                                       (697)       (692)
 Net increase (decrease) in treasury stock transactions                     (31)        161
                                                                       --------    --------
     Net cash provided by financing activities                           31,137      23,344
                                                                       --------    --------
     NET INCREASE IN CASH AND CASH EQUIVALENTS                           26,361       6,956

Cash and cash equivalents at beginning of period                         72,341      68,943
                                                                       --------    --------
Cash and cash equivalents at end of period                             $ 98,702    $ 75,899
                                                                       ========    ========

The accompanying notes are an integral part of these statements.
</TABLE>

                                       5
<PAGE>

                FIRST CHESTER COUNTY CORPORATION AND SUBSIDIARIES

            CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY

<TABLE>
<CAPTION>

                                                                                 Accumulated
Total                                                     Additional                Other
                                        Common Stock      Paid-in    Retained  Comprehensive  Treasury  Stockholders'  Comprehensive
(Dollars in thousands)               Shares   Par Value   Capital    Earnings  Income/(loss)    Stock     Equity          Income
                                   ---------  ---------  ----------  --------  -------------  --------  -------------  -------------
<S>                                <C>        <C>        <C>         <C>       <C>            <C>       <C>            <C>
Balance Decemeber 31, 2005         5,279,815   $5,280     $12,441     $46,503    $(1,929)      (3,618)    $58,677
Cumulative effect under
SAB No. 108 adjustments                                                  (565)                               (565)


Balance January 1, 2006            5,279,815   $5,280     $12,441     $45,938    $(1,929)      (3,618)    $58,112

 Net income                                -        -           -       1,846          -            -       1,846         $1,846
 Cash dividends declared                   -        -           -        (692)         -            -        (692)             -
 Other comprehensive income
 Net unrealized gains (losses )on
  investment securities
  available-for-sale                       -        -          -            -       (189)           -        (189)          (189)
 Treasury stock transactions               -        -        (111)          -          -          272         161              -
                                   ---------   ------     -------     -------    --------     -------     -------   -     ------
 Total Comprehensive Income                                                                                               $1,657
                                                                                                                          ======

Balance March 31, 2006             5,279,815   $5,280     $12,330     $47,092    $(2,118)     $(3,346)    $59,238
                                   =========   ======     =======     =======    ========     ========    =======


Balance January 1, 2007            5,279,815   $5,280     $11,939     $50,486    $(1,473)     $(2,970)    $63,262

 Net income                                -        -         -         1,376          -            -       1,376         $1,376
 Cash dividends declared                   -        -         -          (697)         -            -        (697)
 Other Comprehensive Income
  Net unrealized gains (losses)
  on investment securities
  available-for-sale                       -        -         -             -        (31)           -         (31)           (31)
 Treasury stock transactions               -        -      (837)            -          -          807         (30)             -
                                           -        -         -             -          -            -           -              -
                                   ---------   ------     -------     -------    --------     -------     -------         ------
 Total Comprehensive Income                                                                                               $1,345
                                                                                                                          ======
Balance March 31, 2007             5,279,815   $5,280     $11,102     $51,165    $(1,504)     $(2,163)    $63,880
                                   =========   ======     =======     =======    ========     ========    =======

The accompanying notes are an integral part of these statements.
</TABLE>

                                       6
<PAGE>

                FIRST CHESTER COUNTY CORPORATION AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


1. BASIS OF PRESENTATION
   ---------------------

     The  foregoing  unaudited  financial   statements  have  been  prepared  in
     accordance  with  generally  accepted  accounting  principles  for  interim
     financial  information.  In the  opinion  of  Management,  all  adjustments
     (consisting  only of normal  recurring  adjustments)  necessary  for a fair
     presentation  of the financial  position and the results of operations  for
     the interim period  presented have been included.  These interim  financial
     statements  should be read in conjunction with the  consolidated  financial
     statements and footnotes thereto included in our Annual Report on Form 10-K
     for the year ended December 31, 2006 (our "2006 Annual Report").

     The results of operations for the  three-month  period ended March 31, 2007
     are not  necessarily  indicative of the results to be expected for the full
     year. Information regarding risks and uncertainties that could cause actual
     results to vary materially from our prior  performance may be found in Part
     I, Item 1A of our 2006 Annual Report.


2. EARNINGS PER SHARE
   ------------------
<TABLE>
<CAPTION>

Three Months ended March 31, 2007
---------------------------------

                                                 Income
                                               (thousands)     Shares      Per Share
                                               (numerator)  (denominator)    Amount
                                               -----------  -------------    ------
<S>                                            <C>          <C>              <C>

Basic earnings per share
 Net income available to common stockholders   $   1,376      5,143,502      $ 0.27
Effect of Dilutive Securities
 Options to purchase common stock                     --         71,144        (.01)
                                               -----------  -------------  --------
Diluted earnings per share
 Net income available to common stockholders   $   1,376      5,214,646      $ 0.26
                                               ===========  =============  ========

14,238  anti-dilutive  weighted shares have been excluded from this  computation
because the option  exercise  price was greater than the average market price of
the common shares.
</TABLE>

<TABLE>
<CAPTION>

Three Months ended March 31, 2006
---------------------------------

                                                 Income        Shares      Per Share
                                               (numerator)  (denominator)    Amount
                                               -----------  -------------    ------
<S>                                            <C>          <C>              <C>

Basic earnings per share
 Net income available to common stockholders   $   1,846      5,154,182      $ 0.36
Effect of Dilutive Securities
 Options to purchase common stock                     --         89,746        (.01)
Diluted earnings per share                     ---------      ---------      ------
 Net income available to common stockholders   $   1,846      5,243,928      $ 0.35
                                               =========      =========      ======

17,754  anti-dilutive  weighted shares have been excluded from this  computation
because the option  exercise  price was greater than the average market price of
the common shares.
</TABLE>

                                       7
<PAGE>

                FIRST CHESTER COUNTY CORPORATION AND SUBSIDIARIES

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

3. COMPREHENSIVE INCOME

Components of comprehensive income are presented in the following chart:

                                          Three Months Ended
                                               March 31,
                                           2007       2006
                                         --------   --------
Unrealized losses on securities:
   Unrealized losses arising in period   $  (49)     $ (206)
   Reclassification adjustment                2         (80)
                                            ---         ---
   Net unrealized losses                    (47)       (286)
                                            ---        ----
Other comprehensive income before taxes     (47)       (286)
Income tax benefit (expense)                 16          97
                                            ---         ---
Other comprehensive loss                    (31)       (189)
Net income                                1,376       1,846
                                          -----       -----
Total Comprehensive income               $1,345      $1,657
                                         ======      ======

4. RECENT ACCOUNTING PRONOUNCEMENTS

     In September 2006, FASB issued Statement  No.157 ("SFAS 157"),  "Fair Value
     Measurements," which is effective for fiscal years beginning after November
     15, 2007 and for interim periods within those years. This Statement defines
     fair value,  establishes a framework  for measuring  fair value and expands
     the  related   disclosure   requirements.   The  Corporation  is  currently
     evaluating  the impact  that the  adoption of SFAS No. 157 will have on our
     consolidated financial statements.

     In September 2006, FASB issued Statement  No.158 ("SFAS 158"),  "Employers'
     Accounting for Defined Benefit Pension and Other  Postretirement  Plans--an
     amendment  of FASB  Statements  No.  87, 88,  106,  and  132(R)".  SFAS 158
     requires an employer to recognize the over-funded or under-funded status of
     a defined benefit  postretirement plan (other than a multiemployer plan) as
     an asset  or  liability  in its  statement  of  financial  position  and to
     recognize  changes in that  funded  status in the year in which the changes
     occur through  comprehensive income. The Corporation adopted SFAS 158 as of
     December  31,  2006,  but because the  Corporation  does not have a defined
     benefit  plan,  the  adoption  of SFAS  158 did not have an  effect  on our
     consolidated financial statements.

     In  June  2006,  FASB  issued  FASB   Interpretation  No.  48  ("FIN  48"),
     "Accounting  for  Uncertainty in Income Taxes - an  interpretation  of FASB
     Statement  No. 109." FIN 48 clarifies the  accounting  for  uncertainty  in
     income  taxes  recognized  in  an  enterprise's   financial  statements  in
     accordance  with  SFAS No.  109,  "Accounting  for  Income  Taxes."  FIN 48
     prescribes  a  recognition  threshold  and  measurement  attribute  for the
     financial statement  recognition and measurement of a tax position taken or
     expected  to be taken in a tax  return.  FIN 48 also  provides  guidance on
     de-recognition,  classification,  interest  and  penalties,  accounting  in
     interim periods,  disclosure,  and transition.  FIN 48 will apply to fiscal
     years ending after December 15, 2006. The Corporation  adopted FIN 48 as of
     January 1, 2007 and the  adoption of FIN 48 did not have a material  effect
     on our consolidated financial statements.

     In March 2006, FASB issued SFAS No. 156 ("SFAS 156"),  "Amending Accounting
     for Separately Recognized Servicing Assets and Servicing Liabilities." This
     statement  amends  SFAS No.  140 and  requires  an entity to 1)  separately
     recognize  financial assets as servicing  assets or servicing  liabilities,
     each time it  undertakes  an  obligation  to service a  financial  asset by
     entering into certain kinds of servicing  contracts,  2) initially  measure
     all separately  recognized  servicing  assets and servicing  liabilities at
     fair value, if practicable and 3) separately  present  servicing assets and
     servicing liabilities  subsequently measured at fair value in the statement
     of  financial  position  and  additional  disclosures  for  all  separately
     recognized  servicing  assets and servicing  liabilities.  The  Corporation
     adopted SFAS 156 effective  January 1, 2006. The adoption of this statement
     did not have a material impact on our consolidated financial statements.


                                       8
<PAGE>

                FIRST CHESTER COUNTY CORPORATION AND SUBSIDIARIES

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued


     In February  2006,  the FASB issued SFAS No. 155 ("SFAS 155"),  "Accounting
     for Certain Hybrid Financial  Instruments--an  amendment of FASB Statements
     No. 133 and 140," to simplify and make more  consistent  the accounting for
     certain financial  instruments.  SFAS 155 amends SFAS No. 133,  "Accounting
     for Derivative Instruments and Hedging Activities" ("SFAS 133") and permits
     fair value  re-measurement  for any  hybrid  financial  instrument  with an
     embedded derivative that otherwise would require bifurcation, provided that
     the whole  instrument  is  accounted  for on a fair value  basis.  SFAS 155
     amends  SFAS 140 to allow a  qualifying  special-purpose  entity  to hold a
     derivative  financial  instrument  that  pertains to a beneficial  interest
     other than another derivative financial instrument. SFAS 155 applies to all
     financial instruments acquired or issued after the beginning of an entity's
     first  fiscal year that begins  after  September  15,  2006,  with  earlier
     application allowed.  SFAS 155 is not expected to have a material impact on
     our consolidated financial statements.

5. RECLASSIFICATIONS

     Certain  2006  numbers  have been  reclassified  to  conform  with the 2007
     presentation.  These  reclassifications  have no  impact  on net  income or
     earnings per share.

                                       9
<PAGE>

                FIRST CHESTER COUNTY CORPORATION AND SUBSIDIARIES

ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

This discussion is intended to further your  understanding  of the  consolidated
financial   condition  and  results  of  operations  of  First  Chester   County
Corporation  and  its  direct  and  indirect  wholly-owned  subsidiaries,  First
National Bank of Chester  County (the  "Bank"),  FNB Property  Management,  LLC,
First National Insurance Services, LLC, Turks Head Properties,  Inc., Turks Head
II, LLC,  First Chester County Capital Trust I, and First Chester County Capital
Trust II,  (collectively,  the "Corporation").  It should be read in conjunction
with the consolidated financial statements included in this report.

In addition to historical  information,  this  discussion and analysis  contains
statements  relating to future  results of the  Corporation  that are considered
"forward-looking  statements"  within  the  meaning  of the  Private  Securities
Litigation  Reform Act of 1995.  These statements can often be identified by the
use of  forward-looking  terminology such as "believes,"  "expects,"  "intends,"
"may,"  "will,"  "should"  "or  anticipates"  or  similar   terminology.   These
statements involve risks and uncertainties and are based on various assumptions.
Although the Corporation  believes that its expectations are based on reasonable
assumptions,  investors  and  prospective  investors  are  cautioned  that  such
statements are only projections,  and that these risks and uncertainties are all
difficult  to  predict  and most are beyond  the  control  of the  Corporation's
Management.  Information  about the primary risks and  uncertainties  that could
cause the  Corporation's  actual future  results to differ  materially  from our
historic results or the results described in forward-looking  statements made in
this report or presented  elsewhere by Management from time to time are included
in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December
31, 2006 (our "2006 Annual Report"). Material changes to such "risk factors" may
be reported in  subsequent  Quarterly  Reports on Form 10-Q in Part II, Item 1A.
There  have been no such  changes  from the risk  factors  set forth in our 2006
Annual Report.

The  Corporation  undertakes no obligation to publicly  release any revisions to
any forward-looking statements to reflect events or circumstances after the date
of this Report.

CRITICAL ACCOUNTING POLICIES, JUDGMENTS AND ESTIMATES

The  accounting  and  reporting  policies of the  Corporation  conform  with the
accounting  principles  generally  accepted in the United  States of America and
general practices within the financial services industry. The preparation of the
financial statements in conformity with accounting principles generally accepted
in the United  States of  America  requires  management  to make  estimates  and
assumptions that affect the amounts reported in the financial statements and the
accompanying notes. Actual results could differ from those estimates.

ALLOWANCE FOR LOAN AND LEASE LOSSES

The Corporation  considers that the  determination of the allowance for loan and
lease losses  involves a higher degree of judgment and complexity than its other
significant accounting policies. The balance in the allowance for loan losses is
determined  based on  Management's  review and  evaluation of the loan and lease
portfolio in relation to past loss  experience,  the size and composition of the
portfolio,  current economic events and conditions, and other pertinent factors,
including  Management's  assumptions as to future delinquencies,  recoveries and
losses.  All of these factors may be susceptible to significant  change.  To the
extent actual outcomes differ from Management's estimates, additional provisions
for loan and lease losses may be required that would  adversely  impact earnings
in future periods.

                                       10
<PAGE>

                FIRST CHESTER COUNTY CORPORATION AND SUBSIDIARIES

MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF  FINANCIAL  CONDITION  AND RESULTS OF
OPERATIONS - Continued

INCOME TAXES

Under the liability  method,  deferred tax assets and liabilities are determined
based on the difference between the financial  statement and tax bases of assets
and liabilities.  Deferred tax assets are subject to Management's judgment based
upon  available  evidence  that future  realization  is more likely than not. If
Management  determines that the Corporation may be unable to realize all or part
of the net  deferred  tax assets in the  future,  a direct  charge to income tax
expense may be required to reduce the  recorded  value of the net  deferred  tax
asset to the expected realizable amount.

EARNINGS AND DIVIDEND SUMMARY

Net  income for the three  months  ended  March 31,  2007 was $1.38  million,  a
decrease  of $470  thousand  or 25.5% from $1.85  million for the same period in
2006.  Basic  earnings  per share for the three  months ended March 31, 2007 and
2006 were $0.27 and $0.36 respectively. Cash dividends declared during the three
month period ended March 31, 2007 and 2006 were $0.135, respectively.

The  decrease in net income for the first  quarter 2007 as compared to the first
quarter of 2006,  was primarily the result of a decrease in net interest  income
combined  with an increase  in  non-interest  expense,  offset by an increase in
non-interest  income.  Interest  expense  increased,  when compared to the three
months ended March 31, 2006, due to growth in interest-bearing  deposit balances
combined  with an overall  rise in the cost of funds and a shift in the  deposit
mix to higher cost  deposits.  This  increase in interest  expense was partially
offset by an  increase  in  interest  income.  Interest  income  benefited  from
continued  growth in the loan  portfolio and from increases in interest rates on
the variable portion of the loan portfolio. The increase in non-interest expense
was primarily due to higher salaries and employee benefits expense combined with
higher  marketing  expense in the first quarter of 2007 as compared to the first
quarter of 2006.  The higher  salary and  benefits  expense  was due to a higher
average employee headcount;  specifically,  staffing for new branches as well as
new key  employees in the Wealth  Management  Division,  commercial  lending and
leasing areas. The higher marketing expense was due to our continued  investment
in heightened  brand awareness in new markets,  efforts to deepen  relationships
with existing  clients and  attracting  new consumer and business  clients.  The
increase in  non-interest  income was primarily due to higher Wealth  Management
revenue combined with higher service fee income on deposit accounts.

                                 SELECTED RATIOS

                                  Three Months Ended
                                      March 31,
                             2007                  2006
                           -------------------------------
SELECTED RATIOS
Return on Average Assets     0.63%                 0.88%
Return on Average Equity     8.73%                12.32%
Dividend Payout Ratio       50.65%                37.49%
Book Value Per Share        $12.32                $11.64

                                       11
<PAGE>

                FIRST CHESTER COUNTY CORPORATION AND SUBSIDIARIES

MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF  FINANCIAL  CONDITION  AND RESULTS OF
OPERATIONS - Continued

NET INTEREST INCOME

Net  interest  income  is the  difference  between  interest  income  earned  on
interest-earning   assets  and  interest   expense   paid  on   interest-bearing
liabilities.  Net interest income on a tax equivalent  basis for the three-month
period  ended  March 31,  2007 was $7.8  million,  a decrease  of 5.3% from $8.2
million for the same period in 2006. The decrease in tax equivalent net interest
income can be attributed to an increase in the average balance of total interest
bearing  liabilities  combined  with an  increase  in the  yields  paid on these
balances.  These  increases were partially  offset by an increase in the average
balance of interest-earning assets and an increase in the average interest rates
earned on interest earning assets when compared to the same period last year.

The net yield on interest-earning  assets, on a tax-equivalent  basis, was 3.79%
for the three-month period ended March 31, 2007,  compared to 4.16% for the same
period in 2006, a decrease of 8.89% or 37 basis points (one basis point is equal
to 1/100 of a percent). The yield on interest-earning  assets increased 38 basis
points  to  6.62%  in 2007  from  6.24%  in  2006.  The  average  yield  paid on
interest-bearing  liabilities  increased  85 basis  points to 3.45% in 2007 from
2.60% in 2006.

A flattened yield curve and pricing competition put pressure on our net interest
margin and adversely  impacted net interest  income.  Additionally,  pressure to
raise  deposits to fund loan growth has caused the  Corporation to acquire other
sources of funds, such as brokered deposits, and to introduce products to retain
deposits that were formerly "swept" off the balance sheet.  Deposits obtained in
this manner are higher cost funds and contribute to the increased  yield paid on
interest-bearing liabilities and reduce net interest income.

Average interest-earning assets increased approximately $30.8 million or 3.8% to
$834.4 million for the three-months  ended March 31, 2007 from $803.6 million in
the same period last year. The increase in average  interest-earning  assets for
the  three-month  period  ended March 31, 2007 was the result of a 3.5% or $23.9
million  increase in average total loans  combined with a 35.7% or $12.0 million
increase in average  the Federal  funds sold and  interest  bearing  deposits in
banks balance,  partially  offset by a 5.5% or $5.2 million  decrease in average
investment securities.

Average  interest-bearing  liabilities increased  approximately $41.2 million or
6.4% to $685.4 million for the  three-months  ended March 31, 2007,  from $644.2
million in the same period in 2006.  The  increase  in average  interest-bearing
liabilities for the three-month period was the result of a $50.3 million or 9.0%
increase in  interest-bearing  deposits,  partially off-set by a $9.1 million or
12.8% decrease in Federal Home Loan Bank ("FHLB") advances and other borrowings.

                                       12
<PAGE>

                FIRST CHESTER COUNTY CORPORATION AND SUBSIDIARIES

MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF  FINANCIAL  CONDITION  AND RESULTS OF
OPERATIONS - Continued

                       CONSOLIDATED AVERAGE BALANCE SHEET
             AND TAXABLE EQUIVALENT INCOME/EXPENSE AND RATES FOR THE
                        THREE MONTHS ENDED MARCH 31, 2007
<TABLE>
<CAPTION>

(Dollars in thousands)                                      2007                                2006
                                              ------------------------------       ------------------------------
                                                Average              Average        Average               Average
  ASSETS                                        Balance   Interest   Rate(3)        Balance    Interest   Rate(3)
                                               --------   --------   -------       --------    --------   -------
<S>                                            <C>        <C>        <C>           <C>         <C>        <C>

  Federal funds sold and interest              $ 45,713   $   597     5.29%        $ 33,676    $   376      4.53%
        bearing deposits in banks
  Investment securities:
       Taxable                                   80,314       950     4.80%          80,495      1,001      5.04%
       Tax-exempt(1)                              9,665       102     4.30%          14,678        145      4.01%
                                               --------   -------    -------       --------    -------    -------

       Total investment securities               89,979     1,052     4.74%          95,173      1,146      4.88%
                                               --------   -------    -------       --------    -------    -------

  Loans and leases: (2)
       Taxable                                  685,548    11,760     6.96%         659,940     10,623      6.53%
       Tax-exempt(1)                             13,138       209     6.46%          14,826        223      6.10%
                                               --------   -------    -------       --------    -------    -------

       Total loans and leases                   698,686    11,969     6.95%         674,766     10,846      6.52%
                                               --------   -------    -------       --------    -------    -------

  Total interest-earning assets                 834,378    13,618     6.62%         803,615     12,368      6.24%
  Non-interest earning assets:
       Allowance for loan
       and lease losses                          (8,156)                             (8,554)
       Cash and due from banks                   23,820                              23,810
       Other assets                              24,562                              23,520
                                               --------                            --------

  Total assets                                 $874,604                            $842,391
                                               ========                            ========

  LIABILITIES AND STOCKHOLDERS' EQUITY

  Savings, NOWS & money market deposits        $359,898   $ 2,065     2.33%        $369,344    $ 1,499      1.65%
  Certificates of deposits and other time       248,311     2,828     4.62%         188,589      1,698      3.65%
                                               --------   -------    -------       --------    -------    -------

  Total interest bearing deposits               608,209     4,893     3.26%         557,933      3,197      2.32%
  Subordinated debentures                        15,465       335     8.79%          15,465        298      7.81%
  Federal Home Loan Bank advances and
   other borrowings                              61,683       595     3.91%          70,772        640      3.67%
                                               --------   -------    -------       --------    -------    -------

  Total interest bearing liabilities            685,357     5,823     3.45%         644,170      4,135      2.60%
                                               --------   -------    -------       --------    -------    -------

  Non-interest bearing liabilities:
        Non-interest bearing demand deposits    118,757                             132,983
        Other liabilities                         7,442                               5,325
                                               --------                            --------

   Total liabilities                            811,556                            782,478
   Stockholders' equity                          63,048                             59,913
                                               --------                            --------

   Total liabilities and stockholders' equity  $874,604                            $842,391
                                               ========                            ========

   Net interest income                                    $ 7,795                              $ 8,233
                                                          =======                              =======

   Net yield on interest earning assets                               3.79%                                 4.16%
                                                                     =======                              =======

(1)  The indicated income and annual rate are presented on a taxable  equivalent
     basis using the federal  marginal  rate of 34%  adjusted  for the TEFRA 20%
     interest expense disallowance for 2007 and 2006.
(2)  Non-accruing loans are included in the average balance.
(3)  2007 rates are calculated using an actual over actual day count convention.
     2006 rates shown above are also calculated  using an actual over actual day
     count convention to conform with current period presentation.
</TABLE>

                                       13
<PAGE>
               FIRST CHESTER COUNTY CORPORATION AND SUBSIDIARIES

MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF  FINANCIAL  CONDITION  AND RESULTS OF
OPERATIONS - Continued

INTEREST INCOME

Interest income on Federal Funds sold and interest bearing deposits in banks for
the  three-month  period ended March 31, 2007  increased  58.8% to $597 thousand
when  compared to the same period in 2006.  The  increase in interest  income on
Federal Funds sold and other overnight investments for the three-month period is
the direct result of a 35.7% or $12.0 million  increase in average Federal Funds
sold and other overnight  investments and a 76 basis point increase on the rates
earned.

On a tax equivalent basis, interest income on investment securities decreased by
8.2% or $94 thousand to $1.1 million for the three-month  period ended March 31,
2007 from $1.1 million for the same period in 2006. The decrease was a result of
the decrease in average total investment securities by 5.5% or $5.2 million when
compared  to the same  period in 2006.  The  average  yield on total  investment
securities  decreased  by 14 basis  points to 4.74% for the  three-month  period
ended March 31, 2007 from 4.88% for the same period in 2006.

Interest  income  on  loans,  on  a  tax  equivalent  basis,  generated  by  the
Corporation's  loan portfolio  increased  10.4% or $1.1 million to $12.0 million
for the  three-month  period ended March 31, 2007  compared to $10.8 million for
the three months ended March 31, 2006.  The increase in interest  income for the
three-month  period  ended  March 31,  2007 is  primarily  the result of a $23.9
million  or 3.5%  increase  in the  average  balance  of loans  outstanding.  In
addition,  the yield on average loans  outstanding,  on a tax equivalent  basis,
increased by 43 basis points to 6.95% for the three-month period ended March 31,
2007 from 6.52% for the same period in 2006.

INTEREST EXPENSE

Interest expense on deposit accounts  increased by $1.7 million or 53.0% to $4.9
million for the  three-month  period  ended March 31, 2007 from $3.2 million for
the same period in 2006. This increase was due in part to an increase in average
total  interest-bearing  deposits  of  $50.3  million  or 9.0%  between  the two
periods.  In  addition,  the  average  interest  rates  paid on  these  deposits
increased by 94 basis points to 3.26% for the three-month period ended March 31,
2007 from 9.0% for the same period in 2006.

Market  interest  rate  increases  have  put  pressure  on  the  pricing  of the
Corporation's deposit base and on the cost of raising new deposits.  Competition
for deposits from other banks and non-banking institutions such as credit unions
and mutual fund companies  continues to be strong.  As the Corporation  competes
for deposit  dollars to fund its growth,  this component of net interest  income
will continue to rise. Additionally,  alternative funding sources continue to be
explored.  There can be no  assurance  that  such  alternative  sources  will be
acquired on terms and conditions that are satisfactory to the Corporation.

Interest  expense on  subordinated  debentures  increased  $37  thousand to $335
thousand for the three-month  period ended March 31, 2007 from $298 thousand for
the same period in 2006. The increase for the three-month period ended March 31,
2007 was a direct  result of an increase in the  average  interest  rate paid on
these debentures. Average balances between the two periods remained unchanged at
$15.5 million.

Interest expense on FHLB and other borrowings  decreased by $45 thousand or 7.0%
to $595  thousand  for the  three-month  period  ended  March 31, 2007 from $640
thousand for the same period in 2006.  Average balances of these funding sources
decreased  by 12.8% or $9.1  million  between the two periods  while the average
cost of these funds increased by 24 basis points. FHLB and other borrowings have
been an  alternative  to deposits to support loan growth.

                                       14
<PAGE>

                FIRST CHESTER COUNTY CORPORATION AND SUBSIDIARIES

MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF  FINANCIAL  CONDITION  AND RESULTS OF
OPERATIONS - Continued

PROVISION FOR LOAN AND LEASE LOSSES

During the three months ended March 31, 2007 and 2006, the Corporation  recorded
$0 and $3 thousand  provision for loan losses,  respectively.  The percentage of
non-accrual  loans to gross  loans was 1.04% at March 31,  2007 as  compared  to
1.05% and 1.06% at  December  31,  2006 and March 31,  2006,  respectively.  The
allowance  for loan losses as a percentage  of loans at March 31, 2007 was 1.16%
compared  to  1.18%  and  1.18%  at  December  31,  2006  and  March  31,  2006,
respectively.

The  allowance for loan and lease losses is an amount that  Management  believes
will be adequate  to absorb  possible  loan  losses on  existing  loans that may
become uncollectible and is established based on Management's  evaluation of the
collectability of loans.  These evaluations take into consideration such factors
as changes in the nature  and volume of the loan  portfolio,  overall  portfolio
quality,  adequacy of collateral,  review of specific problem loans, and current
economic conditions that may affect our borrowers ability to pay.

At June 30, 2006,  the  Corporation  reclassified a portion of the allowance for
loan and lease losses as other  liabilities on the  consolidated  balance sheet.
This amount  represents an allowance for possible  losses on unfunded  loans and
unused lines of credit. These loans and lines of credit, although unfunded, have
been committed to by the Bank. At March 31, 2007,  the total amount  recorded in
other liabilities on the consolidated balance sheet as an allowance for possible
losses on unfunded loans and lines of credit is $526 thousand. The allowance for
loan and lease losses as of March 31, 2006 was also reclassified to conform with
the 2007 presentation.  The amount reclassified as allowance for possible losses
on unfunded loans and lines of credit was $475 thousand for March 31, 2006.

                                                     Three Months Ended
(Dollars in thousands)                                   March 31,
                                                -------------------------
                                                   2007          2006
                                                ----------   -----------

Balance at beginning of period                   $  8,186      $  8,123
                                                 --------      --------

Provision charged to operating expense                  0             3

Recoveries of loans previously charged-off             30            72
Loans charged-off                                    (114)          (45)
                                                 --------      --------
Net loan (charge-offs) recoveries                     (84)           27
                                                 --------      --------

Allowance other adjustment (1)                         26           (49)
                                                 --------      --------

Balance at end of period                         $  8,128      $  8,104
                                                 ==========    ========

Period-end loans outstanding                     $701,549      $685,607
Average loans outstanding                        $698,686      $674,767

Allowance for loan and lease losses as a
   percentage of period-end loans outstanding       1.16%         1.18%
Net charge-offs (recoveries) to average loans
   outstanding                                      0.01%         0.00%

(1) The  "Allowance  other  adjustment"  represents the  reclassification  of an
allowance  for  possible  losses on unfunded  loans and unused  lines of credit.
These loans and lines of credit,  although  unfunded,  have been committed to by
the Bank.

                                       15
<PAGE>
               FIRST CHESTER COUNTY CORPORATION AND SUBSIDIARIES

MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF  FINANCIAL  CONDITION  AND RESULTS OF
OPERATIONS - Continued

Non-performing  loans and leases include those on  non-accrual  status and loans
past due 90 days or more and  still  accruing.  The  Corporation's  policy is to
write down all non-performing  loans and leases to net realizable value based on
current  assessments  of the value of the  collateral  securing  such  loans and
leases and leases.  Non-performing loans and leases are generally collateralized
and are in the process of collection. Non-performing loans and leases reduce the
Corporation's  earnings  because  interest  income is not earned on such assets.
There are fifteen non-accrual loans making up the $7.3 million total non-accrual
loans and leases  balance at March 31,  2007 of which,  there is one  commercial
loan of $5.9 million.  Management  is actively  working to collect this loan and
does not anticipate a loss of principal.  Management  continues to take steps to
reduce  non-accrual  loan and lease  levels and correct and control  current and
future  credit  quality  issues.   The  following  chart   represents   detailed
information regarding non-performing loans and leases:

<TABLE>
<CAPTION>

(Dollars in thousands)                                     March 31,       December 31,
                                                     -------------------   ------------
                                                       2007        2006       2006
                                                     -------     -------   ---------
<S>                                                  <C>         <C>       <C>

Past due over 90 days and still accruing             $    30     $    --   $   793
Non-accrual loans and leases (1)                       7,262       7,298     7,289
                                                     -------     -------   -------
Total non-performing loans and leases                  7,292       7,298     8,082

Other real estate owned                                   --          --        --
                                                     -------     -------   --------
Total non-performing assets                          $ 7,292     $ 7,298   $ 8,082
                                                     =======     =======   =======

Non-performing loans and leases as a percentage
 of total loans and leases                             1.04%       1.06%     1.16%

Allowance for loan and lease losses as a percentage
of non-performing loans and leases                   111.46%     111.04%   101.29%

Non-performing assets as a percentage of
total loans and other real estate owned                1.04%       1.06%     1.16%

Allowance for loan and lease losses as a
percentage of non-performing assets                  111.46%     111.04%   101.29%

(1)  Generally,  the Bank  places a loan or lease  in  non-accrual  status  when
principal or interest has been in default for a period of 90 days or more unless
the loan is both well secured and in the process of collection.

Management  is not aware of any loans or leases  other  than those  included  in
these  tables  that  would be  considered  potential  problem  loans  and  cause
Management  to have  doubts as to the  borrower's  ability  to comply  with loan
repayment terms.

The  Corporation  held no other real estate  owned  ("OREO") at March 31,  2007,
March 31, 2006, and December 31, 2006.
</TABLE>

                                       16
<PAGE>

                FIRST CHESTER COUNTY CORPORATION AND SUBSIDIARIES

MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF  FINANCIAL  CONDITION  AND RESULTS OF
OPERATIONS - Continued

The Corporation  identifies a loan as impaired when it is probable that interest
and principal will not be collected  according to the  contractual  terms of the
loan agreement. The accrual of interest is discontinued on impaired loans and no
income is  recognized  until all recorded  amounts of interest and principal are
recovered in full.

FASB 114  "Accounting  by  Creditors  for  Impairment  of  Loans"  requires  the
Corporation  to  examine  commercial  and  non-residential   mortgage  loans  on
non-accrual  status  for  impairment.  The  balance of  impaired  loans was $7.3
million,  $7.3 million,  and $7.3 million at March 31, 2007,  December 31, 2006,
and March 31, 2006,  respectively.  The associated  allowance for impaired loans
was $540 thousand,  $840 thousand, and $791 thousand at March 31, 2007, December
31, 2006, and March 31, 2006, respectively.

For the three-month  period ended March 31, 2007,  activity in the allowance for
impaired loan losses  includes a provision of $0 and charge-offs of $1 thousand.
There were no  recoveries  for the  three-month  period  ended  March 31,  2007.
Contractual  interest amounted to $173 thousand for the three-months ended March
31, 2007. Total cash collected on non-accrual  loans for the three-month  period
ended March 31, 2007 was $158  thousand  all of which was applied to  principal.
Loans  returned to performing for the  three-months  ended March 31, 2007 was $0
thousand.

NON-INTEREST INCOME

Total  non-interest  income increased 11.2% or $237 thousand to $2.4 million for
the three  months  ended March 31,  2007,  compared to $2.1 million for the same
period in 2006.  The various  components  of  non-interest  income are discussed
below.

The largest component of non-interest income is Wealth Management revenue, which
increased $78 thousand or 9.7% to $887 thousand for the three-months ended March
31, 2007 from $809 thousand  during the same period in 2006.  Wealth  Management
revenue is based primarily on the market value of assets under  management.  The
market value of assets  under  management  at March 31, 2007 was $557.4  million
which was $894 thousand or .2% higher than the value at March 31, 2006.

Service  charges on deposit  accounts  increased  $86  thousand or 18.9% to $539
thousand  for the  three-month  period  ended  March 31,  2007  compared to $453
thousand  for the same  period in 2006.  The  increase  in  service  charges  is
primarily due to an increase in charges on retail and commercial  demand deposit
accounts.

The  corporation  recognized  a net gain of $2 thousand  on sales of  investment
securities  during the  three-month  period ended March 31, 2007 compared with a
net loss of $80  thousand  during the same  period in 2006.  These net gains and
losses were taken as a result of normal portfolio management.

The Corporation has operating lease agreements with one customer.  The income on
these leases is classified as "Rental Income".  Rental Income on operating lease
agreements  for the  three-month  period  ended  March 31,  2007  increased  $40
thousand or 14.8% from $268 thousand when compared to the same period in 2006.

                                       17
<PAGE>

                FIRST CHESTER COUNTY CORPORATION AND SUBSIDIARIES

MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF  FINANCIAL  CONDITION  AND RESULTS OF
OPERATIONS - Continued

Gains on the sale of fixed  assets was $0 thousand  for the  three-months  ended
March 31, 2007 as compared to gains of $10 thousand for the same period in 2006.

Gains and fee income  generated  on the sale of  residential  mortgages  for the
three-month period ended March 31, 2007 decreased $15 thousand from $78 thousand
to $63 thousand  compared to the same period in 2006.  The decrease is primarily
due to a lower volume of originations and sales of residential  mortgages during
the three-months ended March 31, 2007 as compared to the same period in 2006.

Other  non-interest  income  decreased 4.0% or $24 thousand for the  three-month
period ended March 31, 2007.  Other  non-interest  income includes ATM surcharge
revenue,  STAR/Visa  Check Card  revenue,  safe  deposit  box  income,  merchant
services income, loan fee income,  miscellaneous loan income,  rental income and
other miscellaneous income.

NON-INTEREST EXPENSE

Total  non-interest  expense increased $455 thousand or 5.9% to $8.1 million for
the  three-month  period ended March 31,  2007,  compared to the same periods in
2006. The various components of non-interest expense are discussed below.

Salaries and employee  benefits  increased 7.1% or $313 thousand to $4.7 million
for the three-month  period ended March 31, 2007 compared to the same periods in
2006.  The higher  salary and  benefits  expense was  primarily  due to a higher
average employee headcount;  specifically,  staffing for new branches as well as
new key  employees in the Wealth  Management  Division,  commercial  lending and
leasing areas.

Net occupancy,  equipment and data processing  expense  increased $3 thousand or
..2% to $1.4  million  for the  three-month  period  ended  March  31,  2007 when
compared to the same periods in 2006.

Depreciation expense on operating leases increased $26 thousand or 11.2% to $258
thousand for the  three-month  period ended March 31, 2007 when  compared to the
same period in 2006. This depreciation  expense is the result of operating lease
agreements the Corporation has with one of our customers.  The income associated
with these operating leases is classified as Rental Income.

Expenses  for  professional  services  increased  $50  thousand or 10.7% to $514
thousand for the  three-month  period ended March 31, 2007 when  compared to the
same periods in 2006.

Marketing  expense  increased  $137  thousand,  or 134% to $239 thousand for the
three-months  ended March 31, 2007. The increase was primarily  attributable  to
higher expense from our continued  investment in heightened  brand  awareness in
new  markets,   efforts  to  deepen  relationships  with  existing  clients  and
attracting new consumer and business clients.

Total other non-interest expense increased $37 thousand or 4.3% to $906 thousand
for the three-month  period ended March 31, 2007 compared to the same periods in
2006.  Other  non-interest  expense  includes annual meeting and reports,  trust
processing,  postage,  directors' costs, telephone, travel and entertainment and
operating supplies.

                                       18
<PAGE>

                FIRST CHESTER COUNTY CORPORATION AND SUBSIDIARIES

MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF  FINANCIAL  CONDITION  AND RESULTS OF
OPERATIONS - Continued

INCOME TAXES

Income tax  expense  for the  three-month  period  ended March 31, 2007 was $548
thousand, compared to $717 thousand for the same period in 2006. This represents
an effective tax rate of 28.5% for the  three-month  period ended March 31, 2007
compared with 28.0% for the same periods in 2006.

LIQUIDITY MANAGEMENT AND INTEREST RATE SENSITIVITY

The  objective  of  liquidity  management  is  to  ensure  the  availability  of
sufficient  cash flows to meet all  financial  commitments  and to capitalize on
opportunities  for  business  expansion.   Liquidity  management  addresses  the
Corporation's  ability  to meet  deposit  withdrawals  either  on  demand  or at
contractual  maturity, to repay borrowings as they mature, and to make new loans
and investments as  opportunities  arise.  Liquidity is managed on a daily basis
enabling  Management to monitor changes in liquidity and to react accordingly to
fluctuations  in market  conditions.  The primary  sources of liquidity  for the
Corporation are funding available from deposit growth, FHLB Borrowings, and cash
flow  from  the  investment  and  loan  portfolios.  Deposits  consist  of  NOW,
money-market,  savings,  tiered savings,  large and small dollar certificates of
deposit,  and  non-interest  bearing demand deposit  accounts.  The  Corporation
considers  funds from NOW,  money  market,  savings and  certificates  less than
$100,000 as "core" deposits because of the historical  stability of such sources
of  funds.  Details  of  core  deposits,  non-interest  bearing  demand  deposit
accounts, and other deposit sources are highlighted in the following table:

<TABLE>
<CAPTION>

                                  For the Three Months Ended      For the year ended
(Dollars in thousands)                    March 31, 2007          December 31, 2006
                                  ---------------------------   ----------------------

                                  Average        Effective      Average      Effective
DEPOSIT TYPE                      Balance          Yield        Balance        Yield
------------                      -------        ----------     -------      ----------
<S>                               <C>            <C>            <C>          <C>

NOW Accounts                      $151,825         2.17%        $134,076       1.76%
Money Market                        86,967         4.17%          80,009       3.84%
Statement Savings                   45,875         0.80%          49,699       0.80%
Other Savings                          301         0.59%             636       0.56%
Tiered Savings                      74,930         1.45%         104,334       1.49%
                                  --------                      --------
Total NOW Savings,                 359,898         2.33%         368,754       2.00%
    and Money Market

CDs Less than $100,000             196,656         4.65%         169,630       4.16%
CDs Greater than $100,000           51,655         4.48%          44,795       3.99%
                                  --------                      --------
Total CDs                          248,311         4.62%         214,425       4.13%

Total Interest Bearing Deposits    608,209         3.26%         583,179       2.78%

Non-Interest Bearing
  Demand Deposits                  118,757                       126,461
                                  --------                      --------

Total Deposits                    $726,966         2.73%        $709,640       2.29%
                                  --------                      --------
</TABLE>

                                       19
<PAGE>

                FIRST CHESTER COUNTY CORPORATION AND SUBSIDIARIES

MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF  FINANCIAL  CONDITION  AND RESULTS OF
OPERATIONS - Continued

The Bank, as a member of FHLB,  maintains several credit facilities.  During the
first quarter of 2007, average FHLB advances were $61.7 million and consisted of
term advances with a variety of maturities.  The average  interest rate on these
advances was 3.9%. The Bank currently has a maximum borrowing capacity with FHLB
of approximately $214.6 million. FHLB advances are collateralized by a pledge on
the Bank's  portfolio of unencumbered  investment  securities,  certain mortgage
loans, and a lien on the Bank's FHLB stock.

To supplement  the  Corporation's  sources of  liquidity,  the  Corporation  has
initiated the use of alternative  funding sources such as brokered  deposits and
bringing  off-balance  sheet  "swept"  funds onto the balance sheet as deposits.
Management  has set limits for these funding  sources and will manage the impact
that such sources may have on liquidity and interest rate sensitivity.

The goal of interest rate  sensitivity  management is to avoid  fluctuating  net
interest  margins,  and to  enhance  consistent  growth of net  interest  income
through periods of changing  interest rates. Such sensitivity is measured as the
difference  in the volume of assets and  liabilities  in the existing  portfolio
that are subject to  repricing in a future time period.  The  Corporation's  net
interest rate  sensitivity  gap within one year is a negative  $181.3 million or
20.1% of total assets at March 31, 2007 compared with a negative  $241.1 million
or 27.6% of total assets at December 31, 2006. The Corporation's gap position is
one tool used to evaluate  interest  rate risk and the stability of net interest
margins.  Another tool that management uses to evaluate  interest rate risk is a
computer  simulation model that assesses the impact of changes in interest rates
on net interest  income,  net-income  under various  interest rate forecasts and
scenarios.  Management  has set  acceptable  limits  of risk  within  its  Asset
Liability  Committee ("ALCO") policy and monitors the results of the simulations
against  these  limits  quarterly.  As of the most recent  quarter-end,  certain
metrics  related to  interest  rate shock  scenarios  were not within the policy
limits set by ALCO.  These results do not necessarily  indicate  overexposure to
interest  rate risk;  rather,  these policy limits are one of several tools that
management  uses as a guide in the overall  management  of  interest  rate risk.
Management monitors interest rate risk as a regular part of corporate operations
with the intention of  maintaining a stable net interest  margin.  The following
table presents our interest sensitivity analysis as of March 31, 2007:

                                       20
<PAGE>

                FIRST CHESTER COUNTY CORPORATION AND SUBSIDIARIES

MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF  FINANCIAL  CONDITION  AND RESULTS OF
OPERATIONS - Continued

<TABLE>
<CAPTION>

                                                       Two         Over
(Dollars in thousands)                   Within      through       five     Non-rate
                                        one year    five years     years    sensitive     Total
                                        ---------   ---------    --------   ---------   --------
<S>                                     <C>         <C>          <C>        <C>         <C>

ASSETS
   Federal funds sold                   $  74,328   $      0     $      0    $      0   $ 74,328
   Investment securities                    7,088     14,169       65,679           0     86,936
   Interest bearing deposits in banks         264          0            0           0        264
   Net loans and leases                   242,076    363,367       96,106      (8,128)   693,421
   Cash and due from banks                      0          0            0      24,110     24,110
   Premises and equipment                       0          0            0      13,572     13,572
   Other assets                                 0          0            0      11,183     11,183
                                        ---------   --------     --------   ---------    -------
   Total assets                         $323,756    $377,536     $161,785   $  40,737   $903,814
                                        =========   ========     ========   =========   ========

LIABILITIES AND CAPITAL
    Non-interest bearing deposits       $       0   $      0     $      0   $ 124,840   $124,840
    Interest bearing deposits             485,253     15,443      122,844           0    623,540
    FHLB advances and other                 4,377     63,061        2,310           0     69,748
   Junior subordinated debentures          15,465          0            0           0     15,465
   Other liabilities                            0          0        6,341           0      6,342
   Capital                                      0          0            0      63,880     63,880
                                        ---------   --------     --------   ---------   ---------
   Total liabilities & capital          $ 505,095   $ 78,504     $131,495   $ 188,720   $903,814
                                        =========   ========     ========   =========   ========

   Net interest rate
     sensitivity gap                    $(181,339)  $299,032     $ 30,290   $(147,983)
                                        =========   ========    =========   =========
   Cumulative interest rate
     sensitivity gap                    $(181,339)  $117,693     $147,983   $       0
                                        =========   ========     ========   =========
   Cumulative interest rate
     sensitivity gap divided
     by total assets                       (20.1%)     13.0%        16.4%
                                        =========   ========     ========
</TABLE>


                                       21
<PAGE>

                FIRST CHESTER COUNTY CORPORATION AND SUBSIDIARIES

MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF  FINANCIAL  CONDITION  AND RESULTS OF
OPERATIONS - Continued

BRANCHING, TECHNOLOGY AND CAPITAL PROJECTS

The  Corporation  intends to open a series of new  branches  throughout  Chester
County  over the next five  years.  A new  customer-focused  branch  design  was
introduced  when  construction  was  finished on the branch  building in Oxford,
Pennsylvania.  The new  "signature  look" will be rolled out to new and  certain
current locations over the next five years. We are currently in negotiations for
the construction of a new branch in Longwood,  PA.  Technological  improvements,
including secure electronic delivery of customer checking and savings statements
and an improvement  of customer  service  issues,  are expected over the next 18
months  as the  Bank  utilizes  the  power  of  its  new  customer  relationship
management  system ("CRM").  Management  hopes to utilize the CRM along with the
Answer  Center to identify  service  issues and  customer  trends on a proactive
basis resulting in a higher degree of customer satisfaction.

CAPITAL ADEQUACY

The  Corporation  is subject to  Risk-Based  Capital  Guidelines  adopted by the
Federal  Reserve  Board for bank  holding  companies.  The  Corporation  is also
subject to similar capital requirements adopted by the Office of the Comptroller
of the Currency.  Under these  requirements,  the  regulatory  agencies have set
minimum  thresholds for Tier I Capital,  Total Capital,  and Leverage ratios. At
September 30, 2006, both the  Corporation's  and the Bank's capital exceeded all
minimum regulatory requirements,  and the Bank was considered "well capitalized"
as defined in the  regulations  issued  pursuant to the FDIC  Improvement Act of
1992.

<TABLE>
<CAPTION>

                                 As of March 31,    As of December 31,   "Well Capitalized"
                                 ---------------   ------------------
                                  2007     2006          2006               Requirements
                                 -----    -----          ----            ------------------
<S>                              <C>      <C>            <C>             <C>

     Corporation
     -----------
Leverage Ratio                    9.17%    9.13%         9.34%                  N/A
Tier I Capital Ratio             11.00%   10.85%        11.26%                  N/A
Total Risk-Based Capital Ratio   12.19%   12.06%        12.49%                  N/A
     Bank
     ----
Leverage Ratio                    8.46%    8.44%         8.58%                5.00%
Tier I Capital Ratio             10.10%    9.98%        10.31%                6.00%
Total Risk-Based Capital Ratio   11.30%   11.20%        11.53%               10.00%

The Bank is not under any agreement  with the regulatory  authorities  nor is it
aware of any current recommendations by the regulatory authorities that, if they
were to be  implemented,  would have a  material  affect on  liquidity,  capital
resources, or operations of the Corporation.
</TABLE>

                                       22
<PAGE>

                FIRST CHESTER COUNTY CORPORATION AND SUBSIDIARIES

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no  material  changes  in the  Corporation's  assessment  of its
sensitivity  to market risk since its  presentation  in the 2006 Annual  Report.
Please refer to the  "Management's  Discussion  and  Analysis"  section on pages
18-38 of the Corporation's 2006 Annual Report for more information.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure  Controls and  Procedures.  Included  with this  Quarterly  Report as
Exhibits   31.1,   31.2,   and  31.3  are   certifications   (the  "Section  302
Certifications"),  one by each of our Chief  Executive  Officer,  President  and
Chief  Financial  Officer (our  principal  executive,  operating  and  financial
officers,  respectively,  and,  collectively,  the "Principal  Officers").  This
section of the Quarterly Report contains information  concerning the evaluations
of our disclosure  controls and  procedures and internal  control over financial
reporting  that  are  referred  to  in  the  Section  302  Certifications.  This
information  should be read in conjunction  with the Section 302  Certifications
for a more complete understanding of the topics presented.

The SEC requires that as of the end of the quarter  covered by this Report,  our
CEO and CFO  evaluate  the  effectiveness  of the  design and  operation  of our
disclosure controls and procedures and report on the effectiveness of the design
and operation of our disclosure controls and procedures.

"Disclosure controls and procedures" mean the controls and other procedures that
are designed  with the  objective of ensuring  that  information  required to be
disclosed in our reports  filed under the  Securities  Exchange Act of 1934 (the
"Exchange  Act"),  such  as  this  Quarterly  Report,  is  recorded,  processed,
summarized and reported within the time periods specified in the rules and forms
promulgated  by the SEC.  Disclosure  controls and  procedures are also designed
with the  objective  of  ensuring  that  such  information  is  accumulated  and
communicated  to  our   management,   including  the  Principal   Officers,   as
appropriate, to allow timely decisions regarding required disclosure.

Management's Report on Disclosure  Controls and Procedures.  As required by Rule
13a-15(b), under the Exchange Act, Management, including our Principal Officers,
conducted an evaluation as of the end of the period  covered by this report,  of
the effectiveness of the Corporation's disclosure controls and procedures. Based
on that  evaluation,  the  Principal  Officers  concluded  that  our  disclosure
controls and procedures were effective,  as of March 31, 2007, at the reasonable
assurance  level, to ensure that  information  required to be disclosed by us in
the reports we file or submit under the Exchange Act is recorded,  processed and
reported within the time periods specified in the SEC rules and regulations.

Changes in internal  control over financial  reporting.  In connection  with the
ongoing review of the  Corporation's  internal control over financial  reporting
(as defined in Rule 13a-15(d),  under the Exchange Act),  Management,  including
the Principal  Officers,  regularly  assesses the adequacy of the  Corporation's
internal  control over  financial  reporting  to  determine  whether any changes
occurred during the period covered by this Report that have materially affected,
or are  reasonably  likely to  materially  affect,  the  Corporation's  internal
control over financial  reporting.  During the first quarter of 2007, there were
no such changes.

                                       23
<PAGE>

                FIRST CHESTER COUNTY CORPORATION AND SUBSIDIARIES

PART II - OTHER INFORMATION

Item 1. Legal Proceedings
        -----------------

Various actions and  proceedings are presently  pending to which the Corporation
is a party.  These actions and proceedings arise out of routine  operations and,
in Management's opinion, will not, either individually or in the aggregate, have
a  material  adverse  effect  on  the  consolidated  financial  position  of the
Corporation and its subsidiaries.

Item 1A. Risk Factors
         ------------

Information  regarding  risk  factors  appears  in Part 1, Item 1A of our Annual
Report on Form 10-K for the year ended  December  31,  2006.  There have been no
material changes from the risk factors as disclosed in that report.


Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
        -----------------------------------------------------------
<TABLE>
<CAPTION>

                    ISSUER PURCHASES OF EQUITY SECURITIES (1)


                                      (a)           (b)              (c)                     (d)
                                     Total        Average     Total Number of        Maximum Number (or
         Period                   Number of     Price Paid   Shares (or Units)   Approximate Dollar Value)
                                  Shares (or)   per Share    Purchased as Part   of Shares (or Units) that
                                    Units)      (or Unit)      of Publicly          May Yet Be Purchased
                                  Purchased                   Announced Plans       Under the Plans or
                                                              or Programs(1)             Programs (1)
<S>                               <C>           <C>           <C>                 <C>

January 1 to January 31, 2007     34,000(2)       $20.90         34,000(2)               $8,240,983

February 1 to February 28, 2007       --           --                --                  $8,240,983

March 1 to March 31, 2007             --           --                --                  $8,240,983

Total                             34,000(2)       $20.90         34,000(2)               $8,240,983
</TABLE>


(1) The Corporation announced on November 15, 2005 a program to repurchase up to
$10.0  million  of the  Corporation's  Common  Stock.  This  program  replaced a
previous program that expired in October 2005.

(2) All shares described above were acquired in block  transactions  intended to
comply with Rule 10b-18 under the Securities Exchange Act of 1934, as amended.

During April 2007 the Corporation repurchased 16,000 shares for an average price
of $21.16 per share in block  transactions  intended  to comply with Rule 10b-18
under the Securities Exchange Act of 1934, as amended.

                                       24
<PAGE>

                FIRST CHESTER COUNTY CORPORATION AND SUBSIDIARIES
                     PART II - OTHER INFORMATION - CONTINUED

Item 3. Defaults upon Senior Securities
        -------------------------------

          None

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

          None

Item 5. Other Information
        -----------------

          None

Item 6. Exhibits
        --------

          Exhibits  marked as "(cp)" are  management  contracts or  compensatory
          plans,  contracts  or  arrangements  in which a director or  executive
          officer  participates  or may  participate.  Exhibits  marked  with an
          asterisk are filed with this report.

          3(i). Certificate of Incorporation. Copy of the Corporation's Articles
                ----------------------------
          of Incorporation,  as amended,  is incorporated herein by reference to
          Exhibit 3 (i) to the  Corporation's  Quarterly Report On Form 10-Q for
          the quarter ended March 31, 2004.

          3(ii).   Bylaws  of  the   Corporation,   as  amended.   Copy  of  the
                   --------------------------------------------
          Corporation's  Bylaws, as amended, is incorporated herein by reference
          to Exhibit 3(ii) to the  Corporation's  Annual Report on Form 10-K for
          the year ended December 31, 2000.

          10.1 Lease Agreement, dated as of March 28, 2005, by and between First
          National Bank of Chester County and B.K.  Campbell,  Inc (an affiliate
          of Brian Campbell, a Director of the Corporation).*

          10.2  Joint  Marketing  Agreement,  dated as of July 1,  2005,  by and
          between First National Bank of Chester  County,  First National Wealth
          Advisory  Services and the Elite Group,  LLC (an  affiliate of Matthew
          Naylor, a Director of the Corporation).*


               31.1 Rule 13a-14(a) Certification of Chief Executive Officer*
               31.2 Rule 13a-14(a) Certification of President*
               31.3 Rule 13a-14(a) Certification of Chief Financial Officer*

               32.1 Section 906 Certification of the Chief Executive Officer*
               32.2 Section 906 Certification of the President*
               32.3 Section 906 Certification of the Chief Financial Officer*

                                       25
<PAGE>

                FIRST CHESTER COUNTY CORPORATION AND SUBSIDIARIES

                                   SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


                        FIRST CHESTER COUNTY CORPORATION





               May 9, 2007           /s/ John A. Featherman, III
                                     ---------------------------
                                     John A. Featherman, III
                                     Chief Executive Officer




               May 9, 2007           /s/ John E. Balzarini
                                     ---------------------
                                     John E. Balzarini
                                     Chief Financial Officer
                                    (Principal Financial and Accounting Officer)


                                       26
<PAGE>

                                INDEX TO EXHIBITS

The following is a list of the exhibits filed with, or incorporated by reference
into, this Report (those exhibits marked with an asterisk are filed herewith and
those marked "(cp)" are management contracts or compensatory plans, contracts or
arrangements  in which a  director  or  executive  officer  participates  or may
participate):

3(i).  Certificate  of  Incorporation.  Copy of the  Corporation's  Articles  of
       -----------  --  -------------
Incorporation,  as amended, is incorporated herein by reference to Exhibit 3 (i)
to the  Corporation's  Quarterly Report On Form 10-Q for the quarter ended March
31, 2004.

3(ii). Bylaws of the Corporation,  as amended. Copy of the Corporation's Bylaws,
       --------------------------  ----------
as  amended,  is  incorporated  herein  by  reference  to  Exhibit  3(ii) to the
Corporation's Annual Report on Form 10-K for the year ended December 31, 2000.

10.1 Lease Agreement,  dated as of March 28, 2005, by and between First National
Bank of Chester County and B.K. Campbell, Inc (an affiliate of Brian Campbell, a
Director of the Corporation).*

10.2 Joint Marketing  Agreement,  dated as of July 1, 2005, by and between First
National Bank of Chester County, First National Wealth Advisory Services and the
Elite  Group,   LLC  (an  affiliate  of  Matthew  Naylor,   a  Director  of  the
Corporation).*

31.1 Rule 13a-14(a) Certification of Chief Executive Officer*
31.2 Rule 13a-14(a) Certification of President *
31.3 Rule 13a-14(a) Certification of Chief Financial Officer*

32.1 Section 906 Certification of the Chief Executive Officer*
32.2 Section 906 Certification of the President*
32.3 Section 906 Certification of the Chief Financial Officer*

                                       27
<PAGE>

                                  Exhibit 31.1
                                  CERTIFICATION
                                  -------------

I, John A. Featherman, III, Chief Executive Officer of the Corporation,  certify
   -----------------------
that:

1. I have  reviewed  this  quarterly  report on Form 10-Q for the period  ending
March 31, 2007 of First Chester County Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact  necessary to make the statements
made, in light of the  circumstances  under which such statements were made, not
misleading with respect to the period covered by this report;

3.  Based  on my  knowledge,  the  financial  statements,  and  other  financial
information included in this report, fairly present in all material respects the
financial  condition,  results of operations and cash flows of the registrant as
of, and for, the periods presented in this report;

4.  The  registrant's  other  certifying  officers  and  I are  responsible  for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal  control over financial
reports  (as defined in Exchange  Act Rules  13a-15(f)  and 15d - 15(f)) for the
registrant and have:

     (a)  Designed  such  disclosure  controls  and  procedures,  or caused such
disclosure  controls and  procedures to be designed  under our  supervision,  to
ensure that  material  information  relating to the  registrant,  including  its
consolidated subsidiaries,  is made known to us by others within those entities,
particularly during the period in which this report is being prepared;

     (b) Designed such internal control over financial reporting, or caused such
internal control over financial  reporting to be designed under our supervision,
to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial  statements for external purposes in accordance
with generally accepted accounting principles;

     (c) Evaluated the effectiveness of the registrant's disclosure controls and
procedures and presented in this report our conclusions  about the effectiveness
of the disclosure  controls and procedures,  as of the end of the period covered
by this report based on such evaluation; and

     (d)  Disclosed  in this  report  any  change in the  registrant's  internal
control over financial  reporting  that occurred  during the  registrant's  most
recent fiscal quarter (the registrant's  fourth fiscal quarter in the case of an
annual  report)  that  has  materially  affected,  or is  reasonably  likely  to
materially affect, the registrant's  internal control over financial  reporting;
and

5. The registrant's other certifying officers and I have disclosed, based on our
most recent  evaluation of internal  control over  financial  reporting,  to the
registrant's  auditors  and the audit  committee  of the  registrant's  board of
directors (or persons performing the equivalent functions):

     (a) All significant  deficiencies and material  weaknesses in the design or
operation of internal  control over  financial  reporting  which are  reasonably
likely  to  adversely  affect  the  registrant's  ability  to  record,  process,
summarize and report financial information; and

     (b) Any fraud,  whether or not material,  that involves management or other
employees who have a significant role in the registrant's  internal control over
financial reporting.

May 9, 2007


/s/ John A. Featherman, III
---------------------------
John A. Featherman, III
Chief Executive Officer

                                       28
<PAGE>

                                  Exhibit 31.2
                                  CERTIFICATION
                                  -------------

I, Kevin C. Quinn, President of the Corporation, certify that:
   --------------

1. I have  reviewed  this  quarterly  report on Form 10-Q for the period  ending
March 31, 2007 of First Chester County Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact  necessary to make the statements
made, in light of the  circumstances  under which such statements were made, not
misleading with respect to the period covered by this report;

3.  Based  on my  knowledge,  the  financial  statements,  and  other  financial
information included in this report, fairly present in all material respects the
financial  condition,  results of operations and cash flows of the registrant as
of, and for, the periods presented in this report;

4.  The  registrant's  other  certifying  officers  and  I are  responsible  for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal  control over financial
reports  (as defined in Exchange  Act Rules  13a-15(f)  and 15d - 15(f)) for the
registrant and have:

     (a)  Designed  such  disclosure  controls  and  procedures,  or caused such
disclosure  controls and  procedures to be designed  under our  supervision,  to
ensure that  material  information  relating to the  registrant,  including  its
consolidated subsidiaries,  is made known to us by others within those entities,
particularly during the period in which this report is being prepared;

     (b) Designed such internal control over financial reporting, or caused such
internal control over financial  reporting to be designed under our supervision,
to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial  statements for external purposes in accordance
with generally accepted accounting principles;

     (c) Evaluated the effectiveness of the registrant's disclosure controls and
procedures and presented in this report our conclusions  about the effectiveness
of the disclosure  controls and procedures,  as of the end of the period covered
by this report based on such evaluation; and

     (d)  Disclosed  in this  report  any  change in the  registrant's  internal
control over financial  reporting  that occurred  during the  registrant's  most
recent fiscal quarter (the registrant's  fourth fiscal quarter in the case of an
annual  report)  that  has  materially  affected,  or is  reasonably  likely  to
materially affect, the registrant's  internal control over financial  reporting;
and

5. The registrant's other certifying officers and I have disclosed, based on our
most recent  evaluation of internal  control over  financial  reporting,  to the
registrant's  auditors  and the audit  committee  of the  registrant's  board of
directors (or persons performing the equivalent functions):

     (a) All significant  deficiencies and material  weaknesses in the design or
operation of internal  control over  financial  reporting  which are  reasonably
likely  to  adversely  affect  the  registrant's  ability  to  record,  process,
summarize and report financial information; and

     (b) Any fraud,  whether or not material,  that involves management or other
employees who have a significant role in the registrant's  internal control over
financial reporting.

May 9, 2007


/s/ Kevin C. Quinn
------------------
Kevin C. Quinn
President

                                       29
<PAGE>

                                  Exhibit 31.3
                                  CERTIFICATION

I, John E. Balzarini, Chief Financial Officer of the Corporation,  certify that:
   -----------------

1. I have  reviewed  this  quarterly  report on Form 10-Q for the period  ending
March 31, 2007 of First Chester County Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact  necessary to make the statements
made, in light of the  circumstances  under which such statements were made, not
misleading with respect to the period covered by this report;

3.  Based  on my  knowledge,  the  financial  statements,  and  other  financial
information included in this report, fairly present in all material respects the
financial  condition,  results of operations and cash flows of the registrant as
of, and for, the periods presented in this report;

4.  The  registrant's  other  certifying  officers  and  I are  responsible  for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal  control over financial
reports  (as defined in Exchange  Act Rules  13a-15(f)  and 15d - 15(f)) for the
registrant and have:

     (a)  Designed  such  disclosure  controls  and  procedures,  or caused such
disclosure  controls and  procedures to be designed  under our  supervision,  to
ensure that  material  information  relating to the  registrant,  including  its
consolidated subsidiaries,  is made known to us by others within those entities,
particularly during the period in which this report is being prepared;

     (b) Designed such internal control over financial reporting, or caused such
internal control over financial  reporting to be designed under our supervision,
to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial  statements for external purposes in accordance
with generally accepted accounting principles;

     (c) Evaluated the effectiveness of the registrant's disclosure controls and
procedures and presented in this report our conclusions  about the effectiveness
of the disclosure  controls and procedures,  as of the end of the period covered
by this report based on such evaluation; and

     (d)  Disclosed  in this  report  any  change in the  registrant's  internal
control over financial  reporting  that occurred  during the  registrant's  most
recent fiscal quarter (the registrant's  fourth fiscal quarter in the case of an
annual  report)  that  has  materially  affected,  or is  reasonably  likely  to
materially affect, the registrant's  internal control over financial  reporting;
and

5. The registrant's other certifying officers and I have disclosed, based on our
most recent  evaluation of internal  control over  financial  reporting,  to the
registrant's  auditors  and the audit  committee  of the  registrant's  board of
directors (or persons performing the equivalent functions):

     (a) All significant  deficiencies and material  weaknesses in the design or
operation of internal  control over  financial  reporting  which are  reasonably
likely  to  adversely  affect  the  registrant's  ability  to  record,  process,
summarize and report financial information; and

     (b) Any fraud,  whether or not material,  that involves management or other
employees who have a significant role in the registrant's  internal control over
financial reporting.

May 9, 2007



/s/ John E. Balzarini
---------------------
John E. Balzarini
Chief Financial Officer

                                       30
<PAGE>

                                  EXHIBIT 32.1


                            CERTIFICATION PURSUANT TO
                                 18 U.S.C. 1350,
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


In connection with the Quarterly Report of First Chester County Corporation (the
"Company")  on Form 10-Q for the period  ending March 31, 2007 as filed with the
Securities and Exchange Commission on the date hereof (the "Report"), I, John A.
Featherman,  III,  Chief  Executive  Officer  and  Chairman  of the Board of the
Company, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906
of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of
the Securities Exchange Act of 1934; and

(2) The  information  contained in the Report fairly  presents,  in all material
respects, the financial condition and result of operations of the Company.



Date:    May 9, 2007
                                                    /s/ John A. Featherman, III
                                                    ---------------------------
                                                    John A. Featherman, III
                                                    Chief Executive Officer and
                                                    Chairman of the Board

                                       31
<PAGE>

                                  EXHIBIT 32.2


                            CERTIFICATION PURSUANT TO
                                 18 U.S.C. 1350,
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


In connection with the Quarterly Report of First Chester County Corporation (the
"Company")  on Form 10-Q for the period  ending March 31, 2007 as filed with the
Securities and Exchange  Commission on the date hereof (the "Report"),  I, Kevin
C. Quinn,  President of the Company,  certify,  pursuant to 18 U.S.C.  1350,  as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of
the Securities Exchange Act of 1934; and

(2) The  information  contained in the Report fairly  presents,  in all material
respects, the financial condition and result of operations of the Company.



Date:    May 9, 2007
                                                             /s/ Kevin C. Quinn
                                                             ------------------
                                                             Kevin C. Quinn
                                                             President


                                       32
<PAGE>

                                  EXHIBIT 32.3

                            CERTIFICATION PURSUANT TO
                                 18 U.S.C. 1350,
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


In connection with the Quarterly Report of First Chester County Corporation (the
"Company")  on Form 10-Q for the period  ending March 31, 2007 as filed with the
Securities and Exchange Commission on the date hereof (the "Report"), I, John E.
Balzarini,  Chief  Financial  Officer of the  Company,  certify,  pursuant to 18
U.S.C.  1350, as adopted  pursuant to Section 906 of the  Sarbanes-Oxley  Act of
2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of
the Securities Exchange Act of 1934; and

(2) The  information  contained in the Report fairly  presents,  in all material
respects, the financial condition and result of operations of the Company.



Date:    May 9, 2007
                                                         /s/ John E. Balzarini
                                                         ---------------------
                                                         John E. Balzarini
                                                         Chief Financial Officer


                                       34
<PAGE>