First Community Bank Corp of America (FCFL) 10-Q 2006 Q2 Quarterly report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2006

¨ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from            to            

Commission file number 000-50357

FIRST COMMUNITY BANK CORPORATION OF AMERICA

(Exact name of registrant as specified in its charter)

Florida	65-0623023
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

9001 Belcher Road

Pinellas Park, Florida 33782

(Address of principal executive offices) (Zip Codes)

(727) 520-0987

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Indicated 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 definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act). Check One:

Large accelerated filer  ¨ Accelerated filer  ¨ Non-accelerated filer  x

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

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date;

Common stock, par value $.05 per share	3,817,937 shares
(class)	Outstanding at July 20, 2006

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

INDEX

		Page
PART I. FINANCIAL INFORMATION
	Item 1. Financial Statements
	Condensed Consolidated Balance Sheets - At June 30, 2006 (unaudited) and At December 31, 2005	2
	Condensed Consolidated Statements of Earnings - Three and Six Months ended June 30, 2006 and 2005 (unaudited)	3
	Condensed Consolidated Statements of Changes in Stockholders’ Equity Six Months Ended June 30, 2006 and 2005 (unaudited)	4
	Condensed Consolidated Statements of Cash Flows - Six Months Ended June 30, 2006 and 2005 (unaudited)	5-6
	Notes to Condensed Consolidated Financial Statements (unaudited)	7-11
	Review by Independent Registered Public Accounting Firm	12
	Report of Independent Registered Public Accounting Firm	13
	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	14-22
	Item 3. Quantitative and Qualitative Disclosures About Market Risk	23
	Item 4. Controls and Procedures	23
PART II. OTHER INFORMATION
	Item 1. Legal Proceedings	23
	Item 4. Submission of Matters to a Vote of Security Holders	24
	Item 6. Exhibits	25
SIGNATURES		26

1

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Condensed Consolidated Balance Sheets

(Dollars in thousands, except per share amounts)

	June 30, 2006			December 31, 2005
	(Unaudited)
Assets
Cash and due from banks	$	2,781		2,273
Interest-bearing deposits with banks		8,492		19,425
Cash and cash equivalents		11,273		21,698
Other interest-bearing deposits with banks		255		527
Securities available for sale		7,759		8,918
Securities held to maturity		7,226		5,278
Loans, net of allowance for loan losses of $3,474 and $3,416		316,962		272,534
Federal Home Loan Bank stock, at cost		1,855		1,109
Premises and equipment, net		5,582		8,790
Accrued interest receivable		1,489		1,245
Deferred income taxes		1,471		1,471
Bank owned life insurance		2,352		2,310
Other assets		1,321		874
	$	357,545		324,754
Liabilities and Stockholders’ Equity
Liabilities:
Noninterest-bearing demand deposits		42,506		37,010
Savings, NOW and money-market deposits		101,312		115,286
Time deposits		142,318		120,333
Total deposits		286,136		272,629
Federal Home Loan Bank advances		27,000		12,000
Other borrowings		5,466		3,709
Accrued expenses and other liabilities		7,397		7,269
Total liabilities		325,999		295,607
Stockholders’ equity:
Preferred stock, $0.01 par value, 2,000,000 shares authorized, no shares issued or outstanding		—		—
Common stock, $0.05 par value, 20,000,000 shares authorized, 3,797,500 and 3,747,582 shares issued and outstanding		190		187
Additional paid-in capital		25,280		24,826
Retained earnings		6,118		4,200
Accumulated other comprehensive loss		(42	)	(66	)
Total stockholders’ equity		31,546		29,147
	$	357,545		324,754

See Accompanying Notes to Condensed Consolidated Financial Statements.

2

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings (Unaudited)

(In thousands, except per share amounts)

	Three Months Ended June 30,			Six Months Ended June 30,
	2006		2005	2006	2005
Interest income:
Loans	$	5,735	3,789	10,857	7,203
Securities		148	98	280	194
Other interest earning assets		50	43	120	89
Total interest income		5,933	3,930	11,257	7,486
Interest expense:
Deposits		1,945	940	3,569	1,778
Other borrowings		295	135	530	239
Total interest expense		2,240	1,075	4,099	2,017
Net interest income		3,693	2,855	7,158	5,469
Provision for loan losses		—	203	60	361
Net interest income after provision for loan losses		3,693	2,652	7,098	5,108
Noninterest income:
Service charges on deposit accounts		175	126	329	246
Other service charges and fees		45	27	99	50
Income from bank owned life insurance		21	21	42	43
Gain on sale of loans held for sale		47	15	95	28
Gain on sale of premises and equipment		225	—	225	—
Other		32	87	54	159
Total noninterest income		545	276	844	526
Noninterest expenses:
Employee compensation and benefits		1,717	1,186	3,276	2,258
Occupancy and equipment		259	207	535	378
Data processing		197	207	404	375
Professional fees		53	58	108	119
Office supplies		45	44	98	87
Insurance		43	40	87	79
Other		221	180	394	332
Total noninterest expenses		2,535	1,922	4,902	3,628
Earnings before income taxes		1,703	1,006	3,040	2,006
Income taxes		632	377	1,122	747
Net earnings	$	1,071	629	1,918	1,259
Earnings per share:
Basic earnings per share	$	.28	.19	.51	.38
Diluted earnings per share	$	.26	.17	.47	.33
Dividends per share	$	—	—	—	—

See Accompanying Notes to Condensed Consolidated Financial Statements.

3

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Condensed Consolidated Statements of Changes in Stockholders’ Equity

Six Months Ended June 30, 2006 and 2005

(In thousands, except share amounts)

	Common Stock					Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total
	Shares		Amount
Balance at December 31, 2004	2,115,497		$	169		19,374		4,136		(61	)	23,618
Comprehensive income:
Net earnings (unaudited)	—			—		—		1,259		—		1,259
Net change in unrealized loss on securities available for sale, net of taxes of $11 (unaudited)	—			—		—		—		(13	)	(13	)
Comprehensive income (unaudited)												1,246
Exercise of common stock options (unaudited)	6,563			1		50		—		—		51
Tax benefit from common stock options exercised (unaudited)	—			—		49		—		—		49
Repurchase of common stock (unaudited)	(11,500	)		(1	)	(287	)	—		—		(288	)
5% stock dividend, fractional shares paid-in cash of $4 (unaudited)	105,641			9		(9	)	(4	)	—		(4	)
Balance at June 30, 2005 (unaudited)	2,216,201		$	178		19,177		5,391		(74	)	24,672
Balance at December 31, 2005	3,747,582			187		24,826		4,200		(66	)	29,147
Comprehensive income:
Net earnings (unaudited)	—			—		—		1,918		—		1,918
Net change in unrealized loss on securities available for sale, net of taxes of $15 (unaudited)	—			—		—		—		24		24
Comprehensive income (unaudited)												1,942
Exercise of common stock options (unaudited)	49,971			3		261		—		—		264
Three-for-two stock split, fractional shares paid-in cash (unaudited)	(53	)		—		—		—		—		—
Tax benefit from common stock options exercised (unaudited)	—			—		188		—		—		188
Share based compensation expense (unaudited)	—			—		5		—		—		5
Balance at June 30, 2006 (unaudited)	3,797,500		$	190		25,280		6,118		(42	)	31,546

See Accompanying Notes to Condensed Consolidated Financial Statements.

4

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In thousands)

	Six Months Ended June 30,
	2006			2005
Cash flows from operating activities:
Net earnings	$	1,918		1,259
Adjustments to reconcile net earnings to net cash provided by operating activities:
Provision for loan losses		60		361
Depreciation and amortization		232		134
Net amortization of deferred loan fees and costs		64		26
Deferred income taxes		—		(136	)
Income from bank owned life insurance		(42	)	(43	)
Origination of loans held for sale		(6,745	)	(2,367	)
Proceeds from sale of loans held for sale		7,738		2,161
Gain on sale of loans held for sale		(95	)	(28	)
Gain on sale of foreclosed real estate		—		(1	)
Gain on sale of premises and equipment		(225	)	—
Increase in accrued interest receivable		(244	)	(102	)
(Increase) decrease in other assets		(447	)	10
Increase in accrued expenses and other liabilities		113		1,206
Share based compensation expense		5		—
Net cash provided by operating activities		2,332		2,480
Cash flows from investing activities:
Net change in other interest-bearing deposits with banks		272		190
Purchase of securities available for sale		(2,000	)	(491	)
Principal payments on securities available for sale		198		279
Proceeds from calls and maturities of securities available for sale		3,000		2,000
Purchase of securities held to maturity		(2,160	)	(999	)
Proceeds from calls of securities held to maturity		—		500
Principal payments on securities held to maturity		212		139
Net increase in loans		(45,450	)	(31,427	)
Net sale (purchase) of premises and equipment, net		3,201		(2,167	)
Purchase of Federal Home Loan Bank stock		(746	)	(233	)
Proceeds from sale of foreclosed real estate		—		50
Net cash used in investing activities		(43,473	)	(32,159	)
Cash flows from financing activities:
Increase in deposits		13,507		27,854
Repayment of Federal Home Loan Bank advances		(47,500	)	(9,500	)
Proceeds from Federal Home Loan Bank advances		62,500		12,000
Increase in other borrowings		1,757		1,895
Proceeds from exercise of stock options		264		51
Fractional shares of stock dividend paid in cash		—		(4	)
Repurchase of common stock		—		(288	)
Tax benefit from common stock options exercised		188		—
Net cash provided by financing activities		30,716		32,008
Net (decrease) increase in cash and cash equivalents		(10,425	)	2,329
Cash and cash equivalents at beginning of period		21,698		9,738
Cash and cash equivalents at end of period	$	11,273		12,067

(continued)

5

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited), Continued

(In thousands)

	Six Months Ended June 30,
	2006		2005
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest	$	3,952	1,978
Income taxes	$	1,122	1,110
Noncash transactions:
Accumulated other comprehensive loss, net change in unrealized loss on securities available for sale, net of income taxes	$	24	(13	)
Tax benefit from common stock options exercised	$	—	49
Stock dividend	$	—	9

See Accompanying Notes to Condensed Consolidated Financial Statements.

6

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

1. General.First Community Bank Corporation of America (the “Holding Company”) owns all of the outstanding common stock of First Community Bank of America (the “Bank”) and First Community Lender Services, Inc. (“FCLS”) (collectively, the “Company”). The Holding Company’s primary business activity is the operations of the Bank. The Bank is a federally-chartered stock savings bank that provides a variety of banking services to small and middle market businesses and individuals through its three banking offices located in Pinellas County, one banking office located in Charlotte County, and two offices located in Hillsborough County, Florida. FCLS had minimal activity during the six months ended June 30, 2006 and 2005.

In the opinion of the management of the Company, the accompanying condensed consolidated financial statements contain all adjustments (consisting principally of normal recurring accruals) necessary to present fairly the financial position at June 30, 2006, the results of operations for the three- and six-month periods ended June 30, 2006 and 2005 and cash flows for the six-month periods ended June 30, 2006 and 2005. The results of operations and other data for the three- and six-month periods ended June 30, 2006 are not necessarily indicative of results that may be expected for the year ending December 31, 2006.

2. Loan Impairment and Loan Losses.There were no loans identified as impaired during the six months ended June 30, 2006 or 2005.

The activity in the allowance for loan losses is as follows (in thousands):

	Three Months Ended June 30,					Six Months Ended June 30,
	2006			2005		2006		2005
Balance at beginning of period	$	3,476		2,785		3,416		2,640
Provision for loan losses		—		203		60		361
Charge-offs		(4	)	(4	)	(4	)	(18	)
Recoveries		2		1		2		2
Balance at end of period	$	3,474		2,985		3,474		2,985

Nonaccrual and past due loans were as follows (in thousands):

	At June 30,
	2006		2005
Nonaccrual loans	$	157	9
Past due ninety days or more, still accruing		—	—
	$	157	9

At June 30, 2006 and December 31, 2005 loans held for sale approximated $488,000 and $1,386,000, respectively and are included in net loans on the condensed consolidated balance sheets.

(continued)

7

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

3. Earnings Per Share (“EPS”).Earnings per share (“EPS”) of common stock has been computed on the basis of the weighted-average number of shares of common stock outstanding. Outstanding stock options and warrants are considered dilutive securities for purposes of calculating diluted EPS which is computed using the treasury stock method. All per share amounts have been adjusted to reflect the three-for-two stock split declared in December 2005. At June 30, 2006, there were no warrants outstanding. The following tables present the calculations of EPS (dollars in thousands, except per share amounts).

	2006					2005
	Earnings		Weighted- Average Shares	Per Share Amount		Earnings		Weighted- Average Shares	Per Share Amount
Three Months Ended June 30:
Basic EPS:
Net earnings available to common stockholders	$	1,071	3,796,758	$	.28	$	629	3,331,734	$	.19
Effect of dilutive securities-
Incremental shares from assumed conversion of options			309,075					446,558
Diluted EPS:
Net earnings available to common stockholders and assumed conversions	$	1,071	4,105,833	$	.26	$	629	3,778,292	$	.17
Six Months Ended June 30:
Basic EPS:
Net earnings available to common stockholders	$	1,918	3,796,754	$	.51	$	1,259	3,331,761	$	.38
Effect of dilutive securities-
Incremental shares from assumed conversion of options and warrants			302,059					451,043
Diluted EPS:
Net earnings available to common stockholders and assumed conversions	$	1,918	4,098,813	$	.47	$	1,259	3,782,804	$	.33

The following options were excluded from the calculation of EPS due to the exercise price being above the average market price:

	Number Outstanding	Exercise Price		Expire
For the three and six months ended June 30, 2006:
Options	6,000	$	20.19	2012-2016
	5,000		20.50	2012-2016
	10,000		21.00	2012-2016
For the three and six months ended June 30, 2005:
Options	3,150	$	18.41	2005

(continued)

8

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

4. Stock-Based Compensation. Prior to January 1, 2006, the Company’s stock option plans were accounted for under the recognition and measurement provisions of APB Opinion No. 25 (Opinion 25),Accounting for Stock Issued to Employees, and related Interpretations, as permitted by FASB Statement No. 123,Accounting for Stock-Based Compensation (as amended by SFAS No. 148,Accounting for Stock-Based Compensation Transition and Disclosure) (collectively SFAS 123). No stock-based employee compensation cost was recognized in the Company’s consolidated statements of earnings through December 31, 2005, as all options granted under the plans had an exercise price equal to the market value of the underlying common stock on the date of grant. Effective January 1, 2006, the Company adopted the fair value recognition provisions of FASB Statement No. 123(R),Share-Based Payment(SFAS 123R), using the modified-prospective-transition method. Under that transition method, compensation cost recognized in 2006 includes: (a) compensation cost for all share-based payments granted prior to, but not yet vested as of January 1, 2006, based on the grant date fair value calculated in accordance with the original provisions of SFAS 123, and (b) compensation cost for all share-based payments granted subsequent to December 31, 2005, based on the grant-date fair value estimated in accordance with the provisions of SFAS 123(R). At December 31, 2005, all outstanding options had vested.

In addition, prior to the adoption of SFAS 123(R), the tax benefits of stock options exercised were classified as operating cash flows. Since the adoption of SFAS 123(R), tax benefits resulting from tax deductions in excess of the compensation cost recognized for options are classified as financing cash flows. As the Company adopted the modified-prospective- transition method, the prior period condensed consolidated cash flow statement was not adjusted to reflect current period presentation.

The following table illustrates the effect on net earnings and earnings per share if the Company had applied the fair value recognition provisions of SFAS 123 to options granted under the Company’s stock option plan for the three and six months ended June 30, 2005. All per share amounts have been adjusted to reflect the three-for-two stock split declared in December 2005. For purposes of this pro forma disclosure, the value of the options is estimated using the Black-Scholes option-pricing model and is being amortized to expense as the options’ vest (in thousands, except per share data).

	Three Months Ended June 30,			Six Months Ended June 30,
	2005			2005
Net earnings, as reported	$	629			1,259
Deduct: Total stock-based employee compensation expense determined under fair value based method for all awards		(73	)		(92	)
Proforma net earnings	$	556			1,167
Basic earnings per share:
As reported	$	.19		$	.38
Proforma	$	.17		$	.35
Diluted earnings per share:
As reported	$	.17		$	.33
Proforma	$	.15		$	.31

(continued)

9

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

4. Stock-Based Compensation, Continued. The Company has three stock option plans for directors and employees of the Company. Under the first two plans, the total number of options which may be granted to purchase common stock is 492,188 (amended) for employees and 590,625 (amended) for directors. At June 30, 2006, no options remain available for grant under the directors’ plan and 84,851 options remain available for grant under the employees’ plan. The total number of options which may be granted to purchase common stock under the third plan is 225,000 (amended) for either directors or employees. At June 30, 2006, 15,000 options remain available for grant under the third plan. The directors’ options vest immediately and have a life of five years. The employees’ options vest over a range from grant date to eight years and expire six years after vesting is complete, however no employee option exceeds 10 years.

A summary of the activity in the Company’s stock option plan is as follows. All amounts reflect the three-for-two stock split paid in January 2006 (dollars in thousands, except per share amounts):

	Number of Options		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at December 31, 2005	744,744		$	9.87
Granted	21,000			20.65
Exercised	(49,971	)		5.26
Outstanding at June 30, 2006	715,773		$	10.51	4.4 years	$	7,472
Exercisable at June 30, 2006	698,973		$	10.27	4.3 years	$	7,465

The total intrinsic value of options exercised during the three and six months ended June 30, 2006 was $3,000 and $656,000, respectively and the tax benefit relating to the stock options exercised was $0 and $188,000, respectively. At June 30, 2006, there was approximately $91,000 of total unrecognized compensation expense related to nonvested share-based compensation arrangements granted under the plans. The cost is expected to be recognized over a weighted-average period of 45 months. The total fair value of shares vesting and recognized as compensation expense was approximately $5,000 for both the three and six months ended June 30, 2006, respectively, and the associated income tax benefit recognized was $0 for both the three and six months ended June 30, 2006.

(continued)

10

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

4. Stock-Based Compensation, Continued.No options were granted during the three months ended June 30, 2005. The fair value of each option granted for the three and six months ended June 30, 2006 and 2005 is estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions ($ in thousands):

	Three Months Ended June 30,			Six Months Ended June 30,
	2006			2006		2005
Risk-free interest rate		5.00	%	4.89	%	4.05	%
Dividend yield		—		—		—
Expected volatility		9	%	9	%	10	%
Expected life in years		5		5		4
Per share grant-date fair value of options issued during the year	$	4.69		4.58		4.03

5. Regulatory Capital. The Bank is required to maintain certain minimum regulatory capital requirements. At June 30, 2006, the Bank was in compliance with its regulatory capital requirements.

6. Reclassifications. Certain reclassification of prior period amounts have been made to conform to the current period presentation.

7. Sale-Leaseback Transaction. The Bank sold its properties in St. Petersburg and Pinellas Park, Florida on May 17, 2006, and simultaneously leased both properties with favorable long-term leases. An immediate gain of approximately $225,000 was recognized on one of the properties because of the excess gain over the present value of the lease payments. The remaining gain of approximately $2.6 million is being deferred using the straight-line method over the ten year lease life. The lease expense is being straight-lined over the ten year lease life due to yearly 2% CPI increases.

11

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Review by Independent Registered Public Accounting Firm

Hacker, Johnson & Smith PA, the Company’s independent registered public accounting firm, have made a limited review of the financial data as of June 30, 2006, and for the three- and six- month periods ended June 30, 2006 and 2005 presented in this document, in accordance with standards established by the Public Company Accounting Oversight Board.

Their report furnished pursuant to Article 10 of Regulation S-X is included herein.

12

Report of Independent Registered Public Accounting Firm

First Community Bank Corporation of America

Pinellas Park, Florida:

We have reviewed the accompanying interim condensed consolidated balance sheet of First Community Bank Corporation of America and Subsidiaries (the “Company”) as of June 30, 2006, the related interim condensed consolidated statements of earnings for the three- and six-month periods ended June 30, 2006 and 2005 and the related interim condensed consolidated statements of changes in stockholders’ equity and cash flows for the six-month periods ended June 30, 2006 and 2005. These interim financial statements are the responsibility of the Company’s management.

We conducted our reviews in accordance with the standards of the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim condensed consolidated financial statements for them to be in conformity with U.S. generally accepted accounting principles.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board, the consolidated balance sheet of the Company as of December 31, 2005, and the related consolidated statements of earnings, changes in stockholders’ equity and cash flows for the year then ended (not presented herein); and in our report dated February 24, 2006, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of December 31, 2005, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

/s/ Hacker, Johnson & Smith PA

HACKER, JOHNSON & SMITH PA

Tampa, Florida

August 1, 2006

13

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Item 2. Management’s Discussion and Analysis of

Financial Condition and Results of Operations

Forward Looking Statements

This document contains forward-looking statements as defined by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements involve substantial risks and uncertainties. When used in this document, or in the documents incorporated by reference, the words “anticipate”, “believe”, “estimate”, “may”, “intend” and “expect” and similar expressions are some of the forward-looking statements used in these documents. Actual results, performance, or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements. Factors which may cause results to change materially include competition, inflation, general economic conditions, changes in interest rates, and changes in the value of collateral securing loans First Community Bank Corporation of America has made, among other things.

General

First Community Bank Corporation of America (the “Holding Company”) owns all of the outstanding common stock of First Community Bank of America (the “Bank”) and First Community Lender Services, Inc. (“FCLS”) (collectively, the “Company”). The Holding Company’s primary business activity is the operations of the Bank. The Bank is a federally-chartered stock savings bank that provides a variety of banking services to small and middle market businesses and individuals through its three banking offices located in Pinellas County, one banking office located in Charlotte County and two offices located in Hillsborough County, Florida. FCLS had minimal activity during the three months ended June 30, 2006 and 2005.

Liquidity and Capital Resources

The Company’s primary source of cash during the six months ended June 30, 2006, was from net deposit inflows of approximately $13.5 million, proceeds from Federal Home Loan Bank advances of $62.5 million, principal repayments and maturities of securities of approximately $3.2 million and cash flows provided by operations of $2.3 million. Cash was used primarily to originate net loans of approximately $45.5 million to repay Federal Home Loan Bank advance of $47.5 million and purchase securities of approximately $4.2 million.

Off-Balance Sheet Arrangements

The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, unused lines of credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest-rate risk in excess of the amounts recognized in the condensed consolidated balance sheet. The contract amounts of these instruments reflect the extent of the Company’s involvement in particular classes of financial instruments.

14

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit, unused lines of credit and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments as it does for on-balance-sheet instruments.

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total committed amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if it is deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the counter party.

Standby letters of credit are conditional lending commitments issued by the Company to guarantee the performance of a customer to a third party and to support public and private borrowing arrangements. Essentially all letters of credit issued have expiration dates within one year. The credit risk involved in issuing letters-of-credit is essentially the same as that involved in extending loan facilities to customers. The Company generally holds collateral supporting these commitments.

Unused lines of credit and commitments to extend credit typically result in loans with a market interest rate.

A summary of the amounts of the Company’s financial instruments, with off-balance sheet risk at June 30, 2006, follows (in thousands):

	Contract Amount
Commitments to extend credit	$	417
Unused lines of credit	$	31,632
Standby letters of credit	$	3,009

Management believes that the Company has adequate resources to fund all of its commitments and that substantially all its existing commitments will be funded within the next twelve months.

15

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Selected Financial Information

The following rates are presented for the dates and periods indicated:

	Six Months Ended June 30, 2006		Year Ended December 31, 2005		Six Months Ended June 30, 2005
Average equity as a percentage of average assets	9.08	%	9.03	%	9.29	%
Equity to total assets at end of period	8.82	%	8.98	%	8.93	%
Return on average assets (1)	1.14	%	1.02	%	.96	%
Return on average equity (1)	12.51	%	11.34	%	10.38	%
Noninterest expenses to average assets (1)	2.93	%	2.79	%	2.78	%
Nonperforming assets as a percentage of total assets at end of period	.04	%	—	%	—	%

(1) Annualized for the six months ended June 30.

16

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Results of Operations

The following table sets forth, for the periods indicated, information regarding (i) the total dollar amount of interest and dividend income of the Company from interest-earning assets and the resultant average yields; (ii) the total dollar amount of interest expense on interest-bearing liabilities and the resultant average cost; (iii) net interest income; (iv) interest-rate spread; and (v) net interest margin.

	Three Months Ended June 30,
	2006						2005
	Average Balance		Interest and Dividends		Average Yield/ Rate		Average Balance		Interest and Dividends		Average Yield/ Rate
	(Dollars in thousands)
Interest-earning assets:
Loans (1)	$	305,499		5,735	7.51	%	$	226,235		3,789	6.70	%
Securities		15,704		148	3.77			14,776		98	2.66
Other interest-earning assets (2)		9,076		50	2.20			10,429		43	1.65
Total interest-earning assets		330,279		5,933	7.19			251,440		3,930	6.25
Noninterest-earning assets		16,241						15,178
Total assets	$	346,520					$	266,618
Interest-bearing liabilities:
Savings, NOW, money-market deposit accounts		93,603		474	2.03			84,636		230	1.09
Time deposits		138,139		1,471	4.26			98,477		710	2.88
Total interest-bearing deposits		231,742		1,945	3.36			183,113		940	2.05
Other interest-bearing liabilities (3)		26,548		295	4.43			16,312		135	3.31
Total interest-bearing liabilities		258,290		2,240	3.47			199,425		1,075	2.16
Noninterest-bearing liabilities		57,063						42,647
Stockholders’ equity		31,167						24,546
Total liabilities and stockholders’ equity	$	346,520					$	266,618
Net interest income			$	3,693					$	2,855
Interest-rate spread (4)					3.72	%					4.09	%
Net interest margin (5)					4.47	%					4.54	%
Ratio of average interest-earning assets to average interest-bearing liabilities		1.28						1.26

(1) Includes nonperforming loans.

(2) Includes Federal Home Loan Bank stock and interest-bearing deposits with banks.

(3) Includes Federal Home Loan Bank advances and other borrowings.

(4) Interest-rate spread represents the difference between the average yield on interest-earning assets and the average rate of interest-bearing liabilities.

(5) Net interest margin is net interest income divided by average interest-earning assets.

17

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

The following table sets forth, for the periods indicated, information regarding (i) the total dollar amount of interest and dividend income of the Company from interest-earning assets and the resultant average yields; (ii) the total dollar amount of interest expense on interest-bearing liabilities and the resultant average cost; (iii) net interest income; (iv) interest-rate spread; and (v) net interest margin.

	Six Months Ended June 30,
	2006						2005
	Average Balance		Interest and Dividends		Average Yield/ Rate		Average Balance		Interest and Dividends		Average Yield/ Rate
	(Dollars in thousands)
Interest-earning assets:
Loans (1)	$	295,097		10,857	7.36	%	$	218,793		7,203	6.58	%
Securities		15,612		280	3.59			15,096		194	2.57
Other interest-earning assets (2)		10,238		120	2.34			11,323		89	1.57
Total interest-earning assets		320,947		11,257	7.02			245,212		7,486	6.11
Noninterest-earning assets		16,680						15,935
Total assets	$	337,627					$	261,147
Interest-bearing liabilities:
Savings, NOW, money-market deposit accounts		93,810		914	1.95			83,756		408	0.97
Time deposits		130,336		2,655	4.07			98,102		1,370	2.79
Total interest-bearing deposits		224,146		3,569	3.19			181,858		1,778	1.96
Other interest-bearing liabilities (3)		25,132		530	4.22			14,689		239	3.25
Total interest-bearing liabilities		249,278		4,099	3.29			196,547		2,017	2.05
Noninterest-bearing liabilities		57,685						40,334
Stockholders’ equity		30,664						24,266
Total liabilities and stockholders’ equity	$	337,627					$	261,147
Net interest income			$	7,158					$	5,469
Interest-rate spread (4)					3.73	%					4.06	%
Net interest margin (5)					4.46	%					4.46	%
Ratio of average interest-earning assets to average interest-bearing liabilities		1.29						1.25

(1) Includes nonperforming loans.

(2) Includes Federal Home Loan Bank stock and interest-bearing deposits with banks.

(3) Includes Federal Home Loan Bank advances and other borrowings.

(4) Interest-rate spread represents the difference between the average yield on interest-earning assets and the average rate of interest-bearing liabilities.

(5) Net interest margin is net interest income divided by average interest-earning assets.

18

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Comparison of the Three-Month Periods Ended June 30, 2006 and 2005

General. Our net earnings for the three months ended June 30, 2006, increased to $1,071,000 or $.28 per basic share and $.26 per diluted share compared to $629,000 or $.19 per basic share and $.17 per diluted share for the three months ended June 30, 2005. Net earnings increased due to an increase in net interest income and noninterest income due to the sale of premises and equipment of $225,000, which was partially offset by an increase in noninterest expenses and the provision for income taxes.

Net Interest Income. Interest income increased to $5.9 million during the three months ended June 30, 2006, from $3.9 million in 2005. Interest on loans for the three months ended June 30, 2006 increased to $5.7 million from $3.8 million for the three months ended June 30, 2005. The increase in interest on loans was primarily due to an increase in the average balance of loans to $305.5 million, during the three months ended June 30, 2006 compared to $226.2 million, during the three months ended June 30, 2005. This increase was also due to an increase in the average yield earned to 7.51% for the three months ended June 30, 2006 from 6.70% for the three months ended June 30, 2005. Interest on securities increased to $148,000 during the three months ended June 30, 2006 from $98,000 for the three months ended June 30, 2005. The increase in interest income on securities was due to an increase in the average balance of securities from $14.8 million in 2005 to $15.7 million in 2006 and an increase in the average yield earned from 2.66% in 2005 to 3.77% in 2006.

Interest expense on interest bearing deposit accounts increased to $1.9 million during the three months ended June 30, 2006, compared to $940,000 during the three months ended June 30, 2005. The increase was due to an increase in the rate paid to 3.36% during the three months ended June 30, 2006 from 2.05% during the three months ended June 30, 2005, and an increase in the average balance of interest bearing deposits to $231.7 million in 2006 from $183.1 million in 2005. Interest expense on other borrowings increased to $295,000 during the three months ended June 30, 2006, compared to $135,000 during the three months ended June 30, 2005. The increase was due to an increase in the average balance of other borrowings to $26.6 million in 2006 from $16.3 million in 2005, and an increase in the average rate paid on other borrowings to 4.43% during the three months ended June 30, 2006 compared to 3.31% during the three months ended June 30, 2005.

19

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Comparison of the Three-Month Periods Ended June 30, 2006 and 2005

Provision for Loan Losses.Calculating the allowance for loan losses is divided into two primary allocation groups: (1) specific allocation loans and (2) all other passing grade loans. For specific allocation loans, the Company has determined an allowance amount to set aside which it believes is sufficient to cover any potential collateral shortfall. Problem loans are identified by the loan officer, loan review, loan committee or by the examiners. Those loans identified as problem loans are assigned a risk grade. Loans graded special mention are multiplied by an inherent loss factor of 3%-5% to determine the amount to be included in the allowance. Loans graded substandard are generally multiplied by a loss factor of 5%-15%, loans graded doubtful are generally multiplied by a loss factor of 50% and loans graded loss are multiplied by a loss factor of 100%. In addition to the 5%-15% and 50% on substandard and doubtful loans, respectively, the loans are individually reviewed for any additional reserve that may be necessary. All other loans, graded pass are multiplied by an historical experience factor to determine the appropriate level of the allowance for loan losses. In addition to historical experience factors, the Company also provides for losses due to economic factors, concentration of credit risk and portfolio composition changes.

The provision for loan losses was $0 for the three months ended June 30, 2006 compared to $203,000 for the three months ended June 30, 2005. While continued economic weakness, rapidly rising interest rates, or other factors could cause stress on the loan portfolio and affect the levels of nonperforming assets and charge-offs, management believes that the levels of nonperforming assets and the charge-off ratio are stable under the current circumstances.

The allowance for loan losses is $3.5 million at June 30, 2006. While management believes that its allowance for loan losses is adequate as of June 30, 2006, future adjustments to the Company’s allowance for loan losses may be necessary if economic conditions differ substantially from the assumptions used in making the initial determination.

Noninterest Income. Noninterest income increased to $545,000 in 2006 from $276,000 for the three- months ended June 30, 2005. The increase was primarily due to a one time gain of $225,000 on the sale of premises and equipment.

Noninterest Expenses. Total noninterest expenses increased to $2.5 million for the three months ended June 30, 2006 from $1.9 million for the comparable period ended June 30, 2005, primarily due to an increase in employee compensation and benefits of $531,000 due to the overall growth of the Company and the opening of a new banking office in the fourth quarter of 2006.

Income Taxes. Income taxes for the three months ended June 30, 2006 was $632,000 or 37.1% compared to $377,000 or 37.5% for the period ended June 30, 2005

20

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Comparison of the Six-Month Periods Ended June 30, 2006 and 2005

General. Our net earnings for the six months ended June 30, 2006, increased to $1,918,000 or $.51 per basic share and $.47 per diluted share compared to $1,259,000 or $.38 per basic share and $.33 per diluted share for the six months ended June 30, 2005. Net earnings increased due to an increase in net interest income and an increase in noninterest income due to the sale of premises and equipment, which was partially offset by an increase in noninterest expenses and the provision for income taxes.

Net Interest Income. Interest income increased to $11.3 million during the six months ended June 30, 2006, from $7.5 million in 2005. Interest on loans for the six months ended June 30, 2006 increased to $10.9 million from $7.2 million for the six months ended June 30, 2005. The increase in interest on loans was primarily due to an increase in the average balance of loans to $295.1 million during the six months ended June 30, 2006 compared to $218.8 million during the six months ended June 30, 2005. This increase was also due to an increase in the average yield earned to 7.36% for the six months ended June 30, 2006 from 6.58% for the six months ended June 30, 2005. Interest on securities increased to $280,000 during the six months ended June 30, 2006, from $194,000 for the six months ended June 30, 2005. The increase in interest income on securities was due to an increase in the average balance of securities from $15.1 million in 2005 to $15.6 million in 2006, and an increase in the average yield earned from 2.57% in 2005 to 3.59% in 2006.

Interest expense on interest-bearing deposit accounts increased to $3.6 million during the six months ended June 30, 2006, compared to $1.8 million during the six months ended June 30, 2005. The increase was due to an increase in the rate paid to 3.19% during the six months ended June 30, 2006 from 1.96% during the six months ended June 30, 2005, and an increase in the average balance of interest bearing deposits to $224.1 million in 2006 from $181.9 million in 2005. Interest expense on other borrowings increased to $530,000 during the six months ended June 30, 2006, compared to $239,000 during the six months ended June 30, 2005. The increase was due to a increase in the average balance of other borrowings to $25.1 million in 2006 from $14.7 million in 2005, and an increase in the average rate paid on other borrowings to 4.22% during the six months ended June 30, 2006 compared to 3.25% during the six months ended June 30, 2005.

21

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Comparison of the Six-Month Periods Ended June 30, 2006 and 2005

Provision for Loan Losses.Calculating the allowance for loan losses is divided into two primary allocation groups: (1) specific allocation loans and (2) all other passing grade loans. For specific allocation loans, the Company has determined an allowance amount to set aside which it believes is sufficient to cover any potential collateral shortfall. Problem loans are identified by the loan officer, loan review, loan committee or by the examiners. Those loans identified as problem loans are assigned a risk grade. Loans graded special mention are multiplied by an inherent loss factor of 3%-5% to determine the amount to be included in the allowance. Loans graded substandard are generally multiplied by a loss factor of 5%-15%, loans graded doubtful are generally multiplied by a loss factor of 50% and loans graded loss are multiplied by a loss factor of 100%. In addition to the 5%-15% and 50% on substandard and doubtful loans, respectively, the loans are individually reviewed for any additional reserve that may be necessary. All other loans, graded pass are multiplied by an historical experience factor to determine the appropriate level of the allowance for loan losses. In addition to historical experience factors, the Company also provides for losses due to economic factors, concentration of credit risk and portfolio composition changes.

The provision for loan losses was $60,000 for the six months ended June 30, 2006 compared to $361,000 for the six months ended June 30, 2005. While continued economic weakness, rapidly rising interest rates, or other factors could cause stress on the loan portfolio and affect the levels of nonperforming assets and charge-offs, management believes that the levels of nonperforming assets and the charge-off ratio are stable under the current circumstances.

The allowance for loan losses is $3.5 million at June 30, 2006. While management believes that its allowance for loan losses is adequate as of June 30, 2006, future adjustments to the Company’s allowance for loan losses may be necessary if economic conditions differ substantially from the assumptions used in making the initial determination.

Noninterest Income. Noninterest income increased to $844,000 in 2006 from $526,000 for the six months ended June 30, 2005. The increase is primarily due to a increase in gains recognized on the sale of loans held for sale and premises and equipment and an increase in service charges on deposit accounts.

Noninterest Expenses. Total noninterest expenses increased to $4.9 million for the six months ended June 30, 2006 from $3.6 million for the comparable period ended June 30, 2005, primarily due to an increase in employee compensation and benefits of $1.0 million due to the overall growth of the Company and the opening of new banking office in the fourth quarter of 2006.

Income Taxes. Income taxes for the six months ended June 30, 2006, was $1,122,000 or 36.9% compared to $747,000 or 37.2% for the period ended June 30, 2005.

22

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Market risk is the risk of loss from adverse changes in market prices and rates. The Company’s market risk arises primarily from interest-rate risk inherent in its lending, investment and deposit taking activities. The Company has little or no risk related to trading accounts, commodities or foreign exchange.

Management actively monitors and manages its interest rate risk exposure. The primary objective in managing interest-rate risk is to limit, within established guidelines, the adverse impact of changes in interest rates on the Company’s net interest income and capital, while adjusting the Company’s asset-liability structure to obtain the maximum yield-cost spread on that structure. Management relies primarily on its asset-liability structure to control interest rate risk. However, a sudden and substantial increase in interest rates could adversely impact the Company’s earnings, to the extent that the interest rates borne by assets and liabilities do not change at the same speed, to the same extent, or on the same basis. There has been no significant change in the Company’s market risk exposure since December 31, 2005.

Item 4. Controls and Procedures

a. Evaluation of disclosure controls and procedures. The Company maintains controls and procedures designed to ensure that information required to be disclosed in the reports that the Company files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission. Based upon their evaluation of those controls and procedures performed within 90 days of the filing date of this report, the Chief Executive and Chief Financial officers of the Company concluded that the Company’s disclosure controls and procedures were effective to ensure that the information required to be disclosed by the Company in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the U.S. Securities and Exchange Commission’s rules and forms.

b. Changes in internal controls. The Company made no significant changes in its internal controls or in other factors that could significantly affect these controls subsequent to the date of the evaluation of those controls by the Chief Executive and Chief Financial officers.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

There are no material pending legal proceeding to which First Community Bank Corporation of America and Subsidiaries, is a party or to which any of their property is subject.

23

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

PART II. OTHER INFORMATION, CONTINUED

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

The Annual Meeting of Shareholders (the “Annual Meeting”) of First Community Bank Corporation of America, was held on April 17, 2006, to consider the election of eight directors with terms expiring at the Annual Meeting in 2007, to fix the number of directors to serve on the board for the ensuing year at eleven, adoption of the 2005 Stock Plan, to approve an amendment to the Articles of Incorporation to increase the number of authorized shares to 20,000,000 and to create a class of preferred stock authorized in the amount of 2,000,000 shares, and the adjournment of the Annual Meeting to solicit additional proxies in the event there were not sufficient votes to approve any of the foregoing items.

At the Annual Meeting 2,077,525 shares were present in person or by proxy. Listed below are the directors that were elected at the Annual Meeting, their terms, and a summary of the votes cast for each nominee.

	Term Expiring	For	Against	Abstain
Brad Bishop	2007	2,077,425	—	100
Kenneth P. Cherven	2007	2,076,375	—	1,150
Edwin C. Hussemann	2007	2,077,425	—	100
Kenneth Delarbre	2007	2,077,425	—	100
James Macaluso	2007	2,076,375	—	1,150
David K. Meehan	2007	2,076,375	—	1,150
Robert G. Menke	2007	2,076,375	—	1,150
Robert M. Menke	2007	2,073,565	—	3,960

The shareholders voted on four other matters-

	For	Against	Abstain
Fix the number of directors to serve on the board	2,065,421	10,730	1,374
Adoption of 2005 Stock Plan	2,044,253	23,225	10,047
Amendment to the Articles of Incorporation	2,046,066	23,662	7,797
Solicit additional proxies if needed	2,055,191	20,960	1,374

24

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

PART II. OTHER INFORMATION, CONTINUED

Item 6. Exhibits

Exhibits. The following exhibits were filed with the Securities and Exchange Commission.

Exhibit No.	Description of Exhibit
*3.1	Amended and Restated Articles of Incorporation
*3.2	Bylaws
*4.1	Specimen Common Stock Certificate
*4.3	Warrant Certificate
**10.1	Employment Agreement of Kenneth P. Cherven dated June 16, 2002
*10.2	First Amended and Restated Non-Employee Director Stock Option Plan
*10.3	Long-Term Incentive Plan
*10.4	Incentive Compensation Plan
***10.5	Employment Agreement of Kenneth P. Cherven dated November 29, 2004
****10.6	Deferred Compensation Plan of Kenneth P. Cherven dated January 1, 2005.
31.1	Certification of Chief Executive Officer required by Rule 13a-14(a)/15d-14(a) under the Exchange Act
31.2	Certification of Chief Financial Officer required by Rule 13a-14(a)/15d-14(a) under the Exchange Act
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of Sarbanes-Oxley Act of 2002
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of Sarbanes-Oxley Act of 2002
**99.5	Audit Committee Charter

* Exhibits marked with an asterisk were submitted with the Company’s original filing of Form SB-2 on April 7, 2003.

** Exhibits marked with a double asterisk were submitted with the Company’s filing of its Amendment One to Form SB-2 on May 8, 2003.

*** Exhibits marked with triple asterisk were submitted with the Company’s filing of Form 10-QSB on May 13, 2005.

**** Exhibits marked with quadruple asterisk were submitted with the Company’s filing of Form 10-QSB on August 12, 2005.

25

FIRST COMMUNITY BANK CORPORATION OF AMERICA 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 COMMUNITY BANK CORPORATION OF AMERICA
	(Registrant)
Date: August 14, 2006	By:	/s/ Kenneth P. Cherven
		Kenneth P. Cherven, President and Chief Executive Officer
Date: August 14, 2006	By:	/s/ Sue A. Gilman
		Sue A. Gilman, Executive Vice President and Chief Financial Officer

26