ITEM 2.06 MATERIAL IMPAIRMENT

On October 14, 2008, the Registrant's Board of Directors approved the recording of a non-cash, other-than-temporary impairment charge of approximately $282,514.08 for the quarter ending September 30, 2008.
At September 30, 2008 the Registrant held equity securities of certain financial institutions with significant market value depreciation from the Registrant's cost basis. Management has been closely monitoring the market valuation and adverse financial events regarding these financial institutions and concluded that some of these equity securities were other-than-temporarily impaired as of September 30, 2008. An impairment charge of $282,514.08 ($186,459.29 after tax) was recorded applicable to September 30, 2008. In estimating other than temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost
(2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. The Registrant has evaluated the regulatory capital ratios of both the Registrant and its primary operating subsidiary, First Columbia Bank & Trust Co. (the "Bank"), and as of September 30, 2008 both the Registrant and the Bank will remain "well-capitalized" under applicable regulatory guidelines. The Registrant does not expect any material current or future cash expenditures to result from this charge.

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