Marco Community Bancorp 10-Q/A 2007 Q2 Quarterly report (amended)

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q/A

(Mark One)

x Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2007

¨ Transition report under Section 13 or 15(d) of the Exchange Act

For the transition period from            to            

Commission file number 333-103651

MARCO COMMUNITY BANCORP, INC.

(Exact Name of Registrant as Specified in Its Charter)

Florida	84-1620092
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

1770 San Marco Road

Marco Island, Florida 34145

(Address of Principal Executive Offices)

(239) 389-5200

(Issuer’s Telephone Number, Including Area Code)

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

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

Indicate by check mark whether the registrant is a 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 File  ¨    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

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

Common stock, par value $.01 per share	3,217,359 shares
(class)	Outstanding at July 31, 2007

MARCO COMMUNITY BANCORP, INC. AND SUBSIDIARIES

INDEX

	Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets - At June 30, 2007 (unaudited) and at December 31, 2006	2
Condensed Consolidated Statements of Operations - Three and Six Months ended June 30, 2007 and 2006 (unaudited)	3
Condensed Consolidated Statements of Changes in Stockholders’ Equity - Six Months ended June 30, 2007 and 2006 (unaudited)	4
Condensed Consolidated Statements of Cash Flows - Six Months ended June 30, 2007 and 2006 (unaudited)	5
Notes to Condensed Consolidated Financial Statements (unaudited)	6-11
Review by Independent Registered Public Accounting Firm	12
Report of Independent Registered Public Accounting Firm	13
Item 6. Exhibits	14
SIGNATURES	15

Explanatory Note: This amendment is filed to correct the volume of non-accrual loans stated in footnote 2 to the Financial Statements

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MARCO COMMUNITY BANCORP, INC. AND SUBSIDIARIES

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Condensed Consolidated Balance Sheets

($ in thousands, except per share amounts)

	June 30, 2007			December 31, 2006
	(Unaudited)
Assets
Cash and due from banks	$	1,672		2,437
Federal funds sold		17,516		22,327
Interest-bearing deposits		2,193		2,141
Total cash and cash equivalents		21,381		26,905
Securities held to maturity (fair value of $6,056 and $2,323 in 2007 and 2006)		6,084		2,330
Loans, net of allowance for loan losses of $2,961 in 2007 and $2,047 in 2006		128,326		130,988
Other real estate owned		2,199		—
Premises and equipment, net		3,496		3,590
Federal Reserve Bank stock, at cost		424		424
Federal Home Loan Bank stock, at cost		293		345
Accrued interest receivable		796		887
Deferred income taxes		2,612		228
Other assets		356		303
Total assets	$	165,967		166,000
Liabilities and Stockholders’ Equity
Liabilities:
Noninterest-bearing demand deposits		4,124		4,002
Savings, NOW and money-market deposits		45,160		48,594
Time deposits		94,659		89,697
Total deposits		143,943		142,293
Repurchase agreements		441		—
Official checks		397		389
Accrued interest payable and other liabilities		655		640
Total liabilities		145,436		143,322
Stockholders’ equity:
Preferred stock, no par value; 1,000,000 shares authorized, none issued or outstanding		—		—
Common stock, $.01 par value; 9,000,000 shares authorized, 3,216,609 and 3,156,009 shares issued and outstanding in 2007 and 2006		32		32
Additional paid-in capital		20,823		20,165
(Accumulated deficit) retained earnings		(324	)	2,481
Total stockholders’ equity		20,531		22,678
Total liabilities and stockholders’ equity	$	165,967		166,000

See Accompanying Notes to Condensed Consolidated Financial Statements.

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MARCO COMMUNITY BANCORP, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations (Unaudited)

(In thousands, except per share amounts)

	Three Months Ended June 30,				Six Months Ended June 30,
	2007			2006	2007		2006
Interest income:
Loans	$	2,633		2,784	5,309		5,443
Securities		82		—	136		—
Other interest-earning assets		294		325	673		582
Total interest income		3,009		3,109	6,118		6,025
Interest expense:
Deposits		1,494		1,250	2,969		2,307
Other borrowings		3		—	3		—
Total interest expense		1,497		1,250	2,972		2,307
Net interest income		1,512		1,859	3,146		3,718
Provision for loan losses		5,295		68	5,295		348
Net interest (expense) income after provision for loan losses		(3,783	)	1,791	(2,149	)	3,370
Noninterest income:
Service charges on deposit accounts		6		10	13		16
CLCC loan brokerage fees		248		95	828		164
Other service charges and fees		48		47	97		98
Total noninterest income		302		152	938		278
Noninterest expenses:
Salaries and employee benefits		720		599	1,519		1,175
Occupancy and equipment		174		132	336		269
Advertising		67		53	123		97
Insurance		15		9	30		17
Data processing		61		53	128		100
Telephone		20		11	42		22
Professional fees		107		64	141		115
Stationary and supplies		14		8	26		21
Director fees		32		28	49		56
Other		135		94	253		220
Total noninterest expenses		1,345		1,051	2,647		2,092
(Loss) earnings before income taxes		(4,826	)	892	(3,858	)	1,556
Income tax (benefit) provision		(1,811	)	336	(1,431	)	597
Net (loss) earnings	$	(3,015	)	556	(2,427	)	959
Net (loss) earnings per share, basic	$	(0.95	)	0.19	(0.77	)	0.33
Weighted-average number of shares outstanding, basic		3,168		2,980	3,162		2,937
Net (loss) earnings per share, diluted	$	(0.95	)	0.17	(0.77	)	0.30
Weighted-average number of shares outstanding, diluted		3,168		3,199	3,162		3,205
Dividends per share	$	—		—	0.12		0.10

See Accompanying Notes to Condensed Consolidated Financial Statements.

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MARCO COMMUNITY BANCORP, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Changes in Stockholders’ Equity

Six Months Ended June 30, 2007 and 2006

($ in thousands)

	Common Stock		Additional Paid-In Capital	(Accumulated Deficit) Retained Earnings		Total Stockholders’ Equity
Balance at December 31, 2005	$	28	17,420	924		18,372
Exercise of stock warrants (119,290 shares) (unaudited)		1	953	—		954
Exercise of stock options (31,987 shares), including tax benefit of $138 (unaudited)		1	331	—		332
Share-based compensation (unaudited)		—	74	—		74
Cash dividends paid (unaudited)		—	—	(297	)	(297	)
Net earnings (unaudited)		—	—	959		959
Balance at June 30, 2006 (unaudited)	$	30	18,778	1,586		20,394
Balance at December 31, 2006	$	32	20,165	2,481		22,678
Exercise of stock options (60,600 shares), including tax benefit of $220 (unaudited)		—	601	—		601
Share-based compensation (unaudited)		—	57	—		57
Cash dividends paid (unaudited)		—	—	(378	)	(378	)
Net loss (unaudited)		—	—	(2,427	)	(2,427	)
Balance at June 30, 2007 (unaudited)	$	32	20,823	(324	)	20,531

See Accompanying Notes to Condensed Consolidated Financial Statements.

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MARCO COMMUNITY BANCORP, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In thousands)

	Six Months Ended June 30,
	2007			2006
Cash flows from operating activities:
Net (loss) earnings	$	(2,427	)	959
Adjustments to reconcile net (loss) earnings to net cash provided by operating activities:
Depreciation		135		139
Share – based compensation		57		74
Provision for loan losses		5,295		348
Deferred income tax benefit		(2,384	)	—
Amortization of loan fees and costs, net		19		(19	)
Decrease in accrued interest receivable		91		59
(Increase) decrease in other assets		(53	)	13
Increase (decrease) in official checks, accrued interest payable and other liabilities		23		(731	)
Net cash provided by operating activities		756		842
Cash flows from investing activities:
Purchase of security held to maturity		(3,924	)	—
Principal payment of security held to maturity		170		—
Redemption of Federal Home Loan Bank Stock		52		—
Purchase of Federal Reserve Bank Stock		—		(30	)
Net (increase) decrease in loans		(4,851	)	6,777
Purchase of premises and equipment		(41	)	(82	)
Net cash provided by (used in) investing activities		(8,594	)	6,665
Cash flows from financing activities:
Net increase (decrease) in deposits		1,650		(1,347	)
Net increase in repurchase agreements		441		—
Net proceeds from exercise of common stock warrants and options		381		1,148
Cash dividends paid		(378	)	(297	)
Tax benefit from exercise of stock options		220		138
Net cash (used in) provided by financing activities		2,314		(358	)
Net increase in cash and cash equivalents		(5,524	)	7,149
Cash and cash equivalents at beginning of period		26,905		19,341
Cash and cash equivalents at end of period	$	21,381		26,490
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest	$	2,909		2,246
Income taxes	$	660		960
Noncash transaction-
Transfer of loans to other real estate owned	$	2,199		—

See Accompanying Notes to Condensed Consolidated Financial Statements.

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MARCO COMMUNITY BANCORP, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

1. Description of Business and Basis of Presentation

General. Marco Community Bancorp, Inc. (the “Holding Company”) which was incorporated on January 28, 2003 owns 100% of the outstanding common stock of Marco Community Bank (the “Bank”) and Commercial Lending Capital Corp. (“CLCC”) (collectively the “Company”). The Holding Company’s only business activity is the operation of the Bank and CLCC. The Bank is a state (Florida) chartered commercial bank. The Bank offers a variety of community banking services to individual and corporate customers through its banking office located in Marco Island, Florida and its loan production office in Fort Myers, Florida. The deposits of the Bank are insured up to the applicable limits by the Federal Deposit Insurance Corporation. CLCC was incorporated to provide commercial loans to customers that would otherwise seek financing elsewhere because of credit limit constraints.

In the opinion of management, 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, 2007, the results of operations for the three- and six-month periods ended June 30, 2007 and 2006 and cash flows for the six month periods ended June 30, 2007 and 2006. The results of operations for the three- and six- month periods ended June 30, 2007 are not necessarily indicative of the results to be expected for the year ending December 31, 2007.

2. Loan Impairment and Loan Losses

Impaired collateral dependent loans were as follows (in thousands):

	Three Months Ended June 30,			Six Months Ended June 30,
	2007		2006	2007	2006
Balance at end of period	$	13,520	741	13,520	741
Total related allowance for losses	$	1,119	63	1,119	63
Average investment in impaired loans	$	3,450	741	2,916	370
Interest income recognized on impaired loans	$	—	—	—	—
Interest income received on impaired loans	$	—	—	—	—

At June 30, 2007 the Company had $14.8 million in nonaccrual loans and no loans which were over ninety days past due and still accruing interest. At June 30, 2006, the Company had no nonaccrual loans or loans which were ninety days past due but still accruing interest.

(continued)

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MARCO COMMUNITY BANCORP, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

2. Loan Impairment and Loan Losses, Continued

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2007			2006	2007		2006
Beginning balance	$	2,047		1,979	2,047		1,699
Charge-offs		(4,381	)	—	(4,381	)	—
Provision for loan losses		5,295		68	5,295		348
Ending balance	$	2,961		2,047	2,961		2,047

3. Earnings (Loss) Per Share (“EPS”)

Earnings (loss) 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 are not considered dilutive securities for the three and six month periods ended June 30, 2007 due to the net losses incurred by the Company. Outstanding stock options and warrants are considered dilutive securities for the three and six month periods ended June 30, 2006, for the purposes of calculating diluted EPS which is computed using the treasury stock method. The following table presents the calculations of EPS (in thousands, except for per share amounts).

	2007							2006
	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	$	(3,015	)	3,168	$	(0.95	)	$	556	2,980	$	0.19
Effect of dilutive securities-
Incremental shares from assumed conversion of options and warrants				—						219
Diluted EPS-
Net earnings available to common stockholders and assumed conversions	$	(3,015	)	3,168	$	(0.95	)	$	556	3,199	$	0.17
Six Months Ended June 30:
Basic EPS-
Net earnings available to common stockholders	$	(2,427	)	3,162	$	(0.77	)	$	959	2,937	$	0.33
Effect of dilutive securities-
Incremental shares from assumed conversion of options and warrants				—						268
Diluted EPS-
Net earnings available to common stockholders and assumed conversions	$	(2,427	)	3,162	$	(0.77	)	$	959	3,205	$	0.30

(continued)

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MARCO COMMUNITY BANCORP, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

4. Regulatory Capital

The Bank is required to maintain certain minimum regulatory capital requirements. The following is a summary at June 30, 2007 of the regulatory capital requirements for a well capitalized financial institution and the Bank’s actual capital on a percentage basis:

	Actual		Regulatory Requirement
Total capital to risk-weighted assets	13.22	%	10.00	%
Tier I capital to risk-weighted assets	12.06	%	6.00	%
Tier I capital to total assets—leverage ratio	9.24	%	5.00	%

5. Share-Based Compensation

Prior to January 1, 2006, the Company’s employees and directors stock option plans were accounted for under the recognition and measurement provisions of Accounting Principles Board (APB) Opinion No. 25 (Opinion 25),Accounting for Stock Issued to Employees, and related Interpretations, as permitted by Financial Accounting Standards Board (FASB) Statement No. 123,Accounting for Stock-Based Compensation (as amended by Statement of Financial Accounting Standard (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 operations 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 123(R)), 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). The directors advisory stock option plan is being expensed over the vesting period based on the fair value of the option on the date the options become fully vested. The Company recognizes stock-based compensation expense in salaries and employee benefits in the accompanying consolidated statements of operations on an accelerated basis over the vesting period.

In 2004, the Company adopted three stock option plans. The Employees’ Stock Option Plan is for the benefit of officers and other key employees of the Holding Company, the Bank and CLCC. Stock options are granted at an exercise price equal to or greater than the fair market value of the common stock on the date of grant. These options have ten year terms and vest 20% a year over a five year period.

(continued)

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MARCO COMMUNITY BANCORP, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

5. Share-Based Compensation, Continued

The Directors’ Stock Option Plan is for the benefit of directors of the Holding Company, the Bank and CLCC. Stock options are granted at an exercise price equal to or greater than the fair market value of the common stock on the date of grant. These options have ten year terms and have various vesting schedules.

The Advisory Directors’ Stock Option Plan is for the benefit of advisory directors of the Company. Stock options are granted at an exercise price equal to or greater than the fair market value of the common stock on the date of grant. These options have six year terms and begin vesting one year after the date of grant at 25% a year over a four year period.

The plans were amended in 2007 to increase the size of the three Company plans so that the number of shares of common stock reserved for issuance under all three Company plans is a collective amount equal to 15% of the common stock outstanding, up to a maximum of 1,500,000 shares. At June 30, 2007, an aggregate of 154,000 options remain available for grant in all three plans.

A summary of the plans is as follows (in thousands, except for share and per share information):

	Number of Shares		Weighted- Average Per Share Exercise Price		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
The Employees’ Plan:
Options outstanding at December 31, 2006	147,850		$	9.83
Options exercised	(6,600	)		6.79
Options forfeited	(19,000	)		11.58
Options outstanding at June 30, 2007	122,250		$	9.72	7.85	$	891
Options exercisable at June 30, 2007	45,400		$	8.02	7.46	$	408
The Directors’ Plan:
Options outstanding at December 31, 2006	101,250			6.25
Options granted	7,500			17.70
Options exercised	(52,500	)		6.24
Options outstanding at June 30, 2007	56,250		$	7.79	5.85	$	524
Options exercisable at June 30, 2007	48,750		$	6.26	5.85	$	524
The Advisory Directors’ Plan:
Options outstanding at December 31, 2006	16,313			6.00
Options granted	3,750			15.92
Options exercised	(1,500	)		6.00
Options forfeited	(375	)		6.00
Options outstanding at June 30, 2007	18,188		$	8.05	1.15	$	164
Options exercisable at June 30, 2007	6,171		$	6.00	1.50	$	68

(continued)

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MARCO COMMUNITY BANCORP, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

5. Share-Based Compensation, Continued

The total intrinsic value of options exercised during the six months ended June 30, 2007 and 2006 was $687,000 and $386,000, respectively. There was a $220,000 tax benefit relating to the stock options exercised during the six months ended June 30, 2007 and a $138,000 tax benefit for the six months ended June 30, 2006. At June 30, 2007, there was $193,000 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 3.4 years. The total fair value of shares vested and recognized as compensation expense was $57,000 and $74,000 for each of the six month periods ended June 30, 2007 and 2006, and no income tax benefit was recognized.

The fair value of each option granted for the three and six months ended June 30, 2007 and 2006 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,
	2007			2006		2007		2006
Weighted-average risk-free interest rate		4.82	%	5.14	%	4.80	%	5.14	%
Weighted-average dividend yield		1.36	%	1.23	%	1.37	%	1.23	%
Weighted-average expected stock volatility		32.33	%	24.79	%	32.33	%	24.79	%
Expected life in years		6.5 years		6.5 years		6.5 years		6.5 years
Per share weighted-average grant- date fair value of options issued during the period	$	6.44		3.21		6.17		3.21

As part of its adoption of SFAS 123(R), the Company examined its historical pattern of option exercises in an effort to determine if there were any pattern based on certain employee populations. From this analysis, the Company could not identify any patterns in the exercise of options. As such, the Company used the guidance in Staff Accounting Bulletin No. 107 to determine the estimated life of options issued subsequent to the adoption of SFAS 123(R). Expected volatility is based on historical volatility of the Company’s stock. The risk –free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. The dividend yield assumption is based on the Company’s history and expectation of dividend payments.

(continued)

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MARCO COMMUNITY BANCORP, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

6. Stock Repurchase Program

In July 2006, the Company’s Board of Directors approved a stock repurchase program which allows the Company to acquire up to $200,000 worth of shares of the Company’s common stock in the open market.

7. Stock Purchase and Sale Agreement

On May 15, 2007, the Company entered into a Stock Purchase and Sale Agreement (“Agreement”) with a group of prominent local investors, led by members of the Barron Collier and Lutgert families, Kevin Hale and Michael Morris (“Purchasers”). The Agreement is part of a plan of recapitalization for the Company, and calls for the investor group to infuse $23,180,787 into the Company and current Company shareholders to receive a cash dividend of $6.50 per share.

Specifically, the Agreement calls for the Company to sell to the investor group 3,566,275 shares at $6.50 per share and simultaneously use the material portion of those funds to pay a $6.50 per share dividend to current shareholders. The sale of the shares will result in the investor group having a controlling interest in the Company. The Agreement requires that the Company have $21.5 million in stockholders’ equity at closing. At the time of issuance, the shares will not be registered with the Securities and Exchange Commission, but will be sold through a private placement offering. Based on the current amount of the Company’s stockholders’ equity, the Agreement will need to be amended and key features of the transaction will need to be adjusted and approved by the Company’s stockholders. The text of the Stock Purchase and Sale Agreement is incorporated by reference in Part II, Item 6; Exhibit 10.7 of this Form 10-Q.

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MARCO COMMUNITY BANCORP, INC. 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, 2007, and for the three- and six- month periods ended June 30, 2007 and 2006 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

Marco Community Bancorp, Inc.

Marco Island, Florida:

We have reviewed the accompanying interim condensed consolidated balance sheet of Marco Community Bancorp, Inc. and Subsidiaries (the “Company”) as of June 30, 2007, the related interim condensed consolidated statements of operations for the three- and six- month periods ended June 30, 2007 and 2006 and the related interim condensed consolidated statements of cash flows and changes in stockholders’ equity for the six-month periods ended June 30, 2007 and 2006. These interim condensed 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, 2006, 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 March 19, 2007, 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, 2006, 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 6, 2007

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MARCO COMMUNITY BANCORP, INC. AND SUBSIDIARIES

Item 6. Exhibits

(a) Exhibits

The exhibits denominated with (a) were filed with the Company’s Form SB-2 which was filed with the Securities and Exchange Commission on March 7, 2003, those denominated with (b) were filed with the Company’s Form 8-K which was filed with the Securities and Exchange Commission on May 17, 2007, those denominated with (c) were filed with the Company’s Form SB-2 SEC No. 333-117877 which was filed with the Securities and Exchange Commission on August 2, 2004, those denominated with (d) were filed with the Company’s Definitive Schedule 14-A which was filed with the Securities and Exchange Commission on March 21, 2007, those denominated with (e) were filed with the Company’s Form 8-K which was filed with the Securities and Exchange Commission on July 27, 2006 and those denominated with (f) were filed with the Company’s Form 10-Q which was filed with the Securities and Exchange Commission on August 14, 2007.

Exhibit No.	Description of Exhibit
(a)   3.1	Articles of Incorporation of Marco Community Bancorp, Inc. as filed with the Florida Department of State
(a)   3.2	Bylaws of Marco Community Bancorp, Inc.
(a)   4.1	Specimen Common Stock Certificate
(a)   4.2	2003 Warrant Plan
(e) 10.1	Employment Agreement with Howard B. Montgomery
(c) 10.2	Letter Agreement with Thomas M. Whelan
(d) 10.3	Employees’ Stock Option Plan, as amended
(d) 10.4	Directors’ Stock Option Plan, as amended
(d) 10.5	Advisory Directors’ Stock Option Plan, as amended
(e) 10.6	2006 Stock Repurchase Plan
(b) 10.7	Stock Purchase and Sale Agreement
(f) 10.8	Written Agreement with the Federal Reserve Bank of Atlanta and the Florida Office of Financial Regulation
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

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MARCO COMMUNITY BANCORP, INC. 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.

		MARCO COMMUNITY BANCORP, INC.
			(Registrant)
Date:	August 16, 2007	By:	/s/ Richard Storm, Jr.
			Richard Storm, Jr., Chief Executive Officer
Date:	August 16, 2007	By:	/s/ Thomas M. Whelan
			Thomas M. Whelan, Senior Vice President and Chief Financial Officer

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