UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 10-Q


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

For the quarterly period ended June 30, 2002

OR

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

                         Commission File Number 0-11132

                           FIRST BANKING CENTER, INC.
             (Exact name of registrant as specified in its charter)

             Wisconsin                                     39-1391327
   (State or other jurisdiction of                     (I.R.S. Employer
    incorporation or organization)                      Identification No.)



                    400 Milwaukee Ave., Burlington, WI 53105
               (Address of principal executive offices) (Zip Code)



                                 (262) 763-3581
              (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 the number of shares  outstanding  of each of the  issuer's  classes of
common  stock,  as of July 22, 2002.  Common stock,  $1.00 par value,  1,471,301
shares outstanding.

<PAGE>

                    FIRST BANKING CENTER, INC AND SUBSIDIARY
                                      INDEX
                                  June 30, 2002



Part I   Financial Information

         Item 1       Consolidated Financial Statements

                      Unaudited Consolidated Balance Sheets,
                      June 30, 2002 and December 31, 2001

                      Unaudited Consolidated Statements of Income,
                      For the six months ended June 30, 2002 and 2001

                      Unaudited Consolidated Statements of Cash Flows, For
                      the six months ended June 30, 2002 and 2001

                      Notes to Unaudited Consolidated Financial Statements

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

         Item 3       Quantitative and Qualitative Disclosures about Market Risk

Part II  Other Information

         Item 1       Legal Proceedings

         Item 2       Changes in Securities and Use of Proceeds

         Item 3       Defaults upon Senior Securities

         Item 4       Submission of Matters to a Vote of Security Holders

         Item 5       Other Information

         Item 6       Exhibits and Reports on Form 8-K

         Signature

<PAGE>

PART I. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
<TABLE>
                                    FIRST BANKING CENTER, INC. AND SUBSIDIARY
                                      UNAUDITED CONSOLIDATED BALANCE SHEETS
<CAPTION>

                                                                                       June 30,     December 31,
                                                                                   2002           2001
                                                                                    -------------------------------
                                                                                        (Dollars in thousands)
<S>                                                                                  <C>             <C>
ASSETS
  Cash and due from banks                                                                  $11,455         $20,735
  Federal funds sold                                                                         8,286          12,010
  Interest-bearing deposits in banks                                                           148             267
  Available for sale securities                                                             60,427          59,343
  Loans, less allowance for loan losses of $4,541 and
    $4,367 in 2002 and 2001, respectively                                                  357,465         361,705
  Office buildings and equipment, net                                                       10,335          10,521
  Other assets                                                                              10,629          11,199
                                                                                    -------------------------------

      TOTAL ASSETS                                                                        $458,745        $475,780
                                                                                    ===============================

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities
  Deposits
    Demand                                                                                 $59,047         $66,612
    Savings and NOW accounts                                                               163,309         164,904
    Time                                                                                   130,171         120,898
                                                                                    -------------------------------
      Total Deposits                                                                       352,527         352,414
  Short-term borrowings                                                                     21,613          29,199
  Other borrowings                                                                          35,462          47,847
  Other liabilities                                                                          3,712           4,081
                                                                                    -------------------------------

      TOTAL LIABILITIES                                                                   $413,314        $433,541
                                                                                    -------------------------------

STOCKHOLDERS' EQUITY
  Common Stock, $1.00 par value 3,000,000 shares authorized; 1,489,380 shares
    issued; 1,471,301 and 1,473,197 shares outstanding
    as of June 30, 2002 and December 31, 2001, respectively                                  1,489           1,489
  Surplus                                                                                    4,190           4,184
  Retained Earnings                                                                         39,402          36,649
  Accumulated other comprehensive income                                                     1,076             542
  Common stock in treasury, at cost-18,079 and 16,183 shares
   for June 30, 2002 and December 31, 2001, respectively                                     ($726)          ($625)
                                                                                    -------------------------------

      TOTAL STOCKHOLDERS' EQUITY                                                           $45,431         $42,239
                                                                                    -------------------------------

      TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                          $458,745        $475,780
                                                                                    ===============================



                                 "See accompanying notes to financial statements"

</TABLE>

<PAGE>

<TABLE>
                                        FIRST BANKING CENTER, INC. AND SUBSIDIARY
                                       UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
<CAPTION>

                                                                      Three months ended            Six months ended
                                                                           June 30,                     June 30,
                                                                     2002           2001           2002          2001
                                                                 ----------------------------------------------------------
                                                                       (Dollars in thousands, except per share data)
<S>                                                               <C>           <C>            <C>            <C>
INTEREST INCOME
  Interest and fees on loans                                            $6,426         $7,443        $12,799       $14,820
  Interest and dividends on securities:
    Taxable                                                                272            303            548           717
    Non-taxable                                                            402            348            794           674
  Interest on federal funds sold                                            16             81             49           160
  Interest on interest-bearing deposits in banks                             9             60             26            71
                                                                 ----------------------------------------------------------
      TOTAL INTEREST INCOME                                              7,125          8,235         14,216        16,442
                                                                 ----------------------------------------------------------

INTEREST EXPENSE
  Interest on deposits                                                   1,615          3,040          3,337         6,330
  Interest on short-term borrowings                                        107            183            229           476
  Interest on other borrowings                                             406            445            808           819
                                                                 ----------------------------------------------------------
      TOTAL INTEREST EXPENSE                                             2,128          3,668          4,374         7,625
                                                                 ----------------------------------------------------------

      NET INTEREST INCOME                                                4,997          4,567          9,842         8,817

  Provision for loan losses                                                 90             90            180           180
                                                                 ----------------------------------------------------------
      NET INTEREST INCOME AFTER PROVISION FOR
        LOAN LOSSES                                                      4,907          4,477          9,662         8,637
                                                                 ----------------------------------------------------------

NON-INTEREST INCOME
  Trust fees                                                               137            137            275           275
  Service charges on deposit accounts                                      458            398            891           719
   Investment securities gains                                              13              0             13             0
  Other                                                                    360            289            759           586
                                                                 ----------------------------------------------------------
      TOTAL NON-INTEREST INCOME                                            968            824          1,938         1,580
                                                                 ----------------------------------------------------------

NON-INTEREST EXPENSE
  Salary and employee benefits                                           1,979          1,870          4,085         3,723
  Occupancy                                                                246            222            488           473
  Equipment                                                                376            345            750           673
  Data Processing services                                                 230            191            461           383
  Other                                                                    695            752          1,306         1,434
                                                                 ----------------------------------------------------------
      TOTAL NON-INTEREST EXPENSE                                         3,526          3,380          7,090         6,686
                                                                 ----------------------------------------------------------

      INCOME BEFORE INCOME TAXES                                         2,349          1,921          4,510         3,531

  Income taxes                                                             638            501          1,208           906
                                                                 ----------------------------------------------------------

      NET INCOME                                                        $1,711         $1,420         $3,302        $2,625
                                                                 ==========================================================

        Basic earnings per share                                         $1.16          $0.96          $2.24         $1.78
        Diluted earnings per share                                       $1.14          $0.96          $2.19         $1.77
        Dividends per share                                              $0.37          $0.34          $0.37         $0.34



                                     "See accompanying notes to financial statements"
</TABLE>

<PAGE>

<TABLE>
                                     FIRST BANKING CENTER, INC. AND SUBSIDIARY
                                  UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
<CAPTION>

                                                                                              Six months ended
                                                                                                  June 30,
                                                                                             2002          2001
                                                                                         ---------------------------
                                                                                           (Dollars in thousands)
<S>                                                                                      <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income                                                                                    $3,302       $2,625
  Adjustments to reconcile net income to net cash
   provided by (used in) operating activities:
    Depreciation                                                                                   425          411
    Provision for loan losses                                                                      180          180
    Loans originated for sale                                                                  (19,586)     (52,080)
    Proceeds from sale of loans                                                                 23,647       50,126
    Amortization of premiums and accretion of discounts
      on securities, net                                                                            43           23
    Amortization                                                                                    51           51
    Investment securities gains                                                                    (13)           0
    Tax benefit of nonqualified stock options exercised                                              6            0
    (Increase) decrease in other assets                                                            244       (1,372)
    Increase (decrease) in other liabilities                                                      (369)         127
                                                                                         ---------------------------

        NET CASH PROVIDED BY OPERATING ACTIVITIES                                                7,930           91
                                                                                         ---------------------------

CASH FLOWS FROM INVESTING ACTIVITIES:
    Net decrease in interest-bearing deposits in banks                                             119           23
    Net (increase) decrease in federal funds sold                                                3,724       (8,129)
    Proceeds from sales of available for sale securities                                         7,615        2,786
    Proceeds from maturities and calls of available for sale securities                         30,462       61,116
    Purchase of available for sale securities                                                  (38,381)     (45,417)
    Net increase in loans                                                                           (1)     (21,117)
    Purchase of office buildings and equipment, net                                               (239)        (766)
                                                                                         ---------------------------

        NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES                                      3,299      (11,504)
                                                                                         ---------------------------

CASH FLOWS FROM FINANCING ACTIVITIES:
    Net increase (decrease) in deposits                                                            113       (2,672)
    Dividends paid                                                                                (546)        (500)
    Proceeds from other borrowings                                                               1,000       10,000
    Payments on other borrowings                                                               (13,385)     (10,878)
    Net decrease in short term borrowings                                                       (7,586)        (853)
    Purchase of treasury stock                                                                    (179)        (231)
    Sale of treasury stock for the exercise of stock options                                        74            2
                                                                                         ---------------------------

        NET CASH USED IN FINANCING ACTIVITIES                                                  (20,509)      (5,132)
                                                                                         ---------------------------

    NET DECREASE IN CASH AND DUE FROM BANKS                                                     (9,280)     (16,545)

CASH AND DUE FROM BANKS:
    Beginning                                                                                   20,735       29,287
                                                                                         ---------------------------

    Ending                                                                                     $11,455      $12,742
                                                                                         ===========================

Supplemental Disclosures of Cash Flow Information,
  Cash Paid During the Year for:
    Interest                                                                                    $4,327       $7,839
    Income taxes                                                                                $1,012       $1,060

Supplemental Schedule of Noncash Investing Activities,
  Change in Accumulated Other Comprehensive Income,
  Unrealized Gain on Available-for-Sale Securities, Net                                           $534         $465


                                 "See accompanying notes to financial statements"
</TABLE>

<PAGE>

                    FIRST BANKING CENTER, INC AND SUBSIDIARY
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                                  June 30,2002

NOTE 1 - Basis of Presentation

The unaudited  consolidated  financial  statements include the accounts of First
Banking  Center,  Inc. and its  subsidiary  (the  "Company").  In the opinion of
management,  all adjustments  (consisting only of normal recurring  adjustments)
necessary  for a  fair  presentation  of  the  financial  position,  results  of
operation and cash flows for the interim  periods have been made. The results of
operations for the three and six months ended June 30, 2002 are not  necessarily
indicative of the results to be expected for the entire fiscal year.

The unaudited interim financial statements have been prepared in conformity with
accounting  principles  generally  accepted in the United  States of America and
industry practice.  Certain information in footnote disclosure normally included
in  financial  statements  prepared in  accordance  with  accounting  principles
generally  accepted in the United  States of America and  industry  practice has
been  condensed or omitted  pursuant to rules and  regulations of the Securities
and  Exchange   Commission.   These  financial  statements  should  be  read  in
conjunction  with  the  consolidated  financial  statements  and  notes  thereto
included in the Company's December 31, 2001 audited financial statements.

The preparation of financial statements in conformity with accounting principles
generally  accepted in the United States of America requires  management to make
estimates  and  assumptions  which  affect  the  reported  amounts of assets and
liabilities  and disclosure of contingent  assets and liabilities as of the date
of the  financial  statements,  as well as the  reported  amounts  of income and
expenses  during the reported  periods.  Actual  results could differ from those
estimates.

NOTE 2 - Earnings Per Share

The following information  calculates the computation of earnings per share on a
basic and diluted basis.
<TABLE>
<CAPTION>
                                                                        Three Months Ended           Six Months Ended
                                                                             June 30,                    June 30,
                                                                        2002          2001          2002          2001
                                                                    --------------------------------------------------------
                                                                    (Dollars in thousands, except per share data)
<S>                                                                 <C>             <C>           <C>           <C>
Basic
Net income                                                                 $1,711        $1,420        $3,302        $2,625
Weighted average shares outstanding                                         1,471         1,471         1,471         1,471
Basic earnings per share                                                    $1.16         $0.96         $2.24         $1.78
                                                                    ========================================================

Diluted
Net income                                                                 $1,711        $1,420        $3,302        $2,625
Weighted average shares outstanding                                         1,471         1,471         1,471         1,471
Effect of dilutive stock options outstanding                                   34            16            34            16
                                                                    --------------------------------------------------------
Diluted weighted average shares outstanding                                 1,505         1,487         1,505         1,487
Diluted earnings per share                                                  $1.14         $0.96         $2.19         $1.77
                                                                    ========================================================
</TABLE>

NOTE 3-Comprehensive Income

The following table presents our comprehensive income.
<TABLE>
<CAPTION>
                                                                        Three Months Ended           Six Months Ended
                                                                             June 30,                    June 30,
                                                                        2002          2001          2002          2001
                                                                    --------------------------------------------------------
                                                                                    (Dollars in thousands)
<S>                                                                 <C>             <C>           <C>           <C>
Net income                                                                 $1,711        $1,420        $3,302        $2,625
Other comprehensive income
  Net change in unrealized gain on available for sale securities              659             2           534           465
                                                                    --------------------------------------------------------
Total comprehensive income                                                 $2,370        $1,422        $3,836        $3,090
                                                                    ========================================================
</TABLE>

<PAGE>

Item 2. Management's  Discussion and Analysis of Financial Condition and Results
        of Operations

                    FIRST BANKING CENTER, INC AND SUBSIDIARY
                       MANAGEMENTS DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                               As of June 30, 2002

The following discussion provides additional analysis of the financial condition
and results of operations of the Company for the six months ended June 30, 2002.
This discussion  focuses on the significant  factors that affected the Company's
earnings so far in 2002,  with  comparisons to 2001. As of June 30, 2002,  First
Banking  Center (the "Bank") was the only direct  subsidiary  of the Company and
its operations  contributed  nearly all of the revenue for the year. The Company
provides  various support  functions for the Bank and receives  payment from the
Bank for these  services.  These  intercompany  payments are  eliminated for the
purpose  of these  consolidated  financial  statements.  The Bank has two wholly
owned  subsidiaries,  FBC Financial  Services,  Corp., a brokerage and financial
services subsidiary, and FBC-Burlington,  Inc., an investment subsidiary located
in Nevada.

Overview

As of June 30, 2002,  total Company assets were $458.7 million  decreasing  3.6%
from $475.8 million as of December 31, 2001. Total income,  as of June 30, 2002,
was $3.3 million or $2.24 per share, increasing 25.8% from $2.6 million or $1.78
per  share in 2001.  The  significant  items  resulting  in the  above-mentioned
results are discussed below.

Financial Condition

Loans

Loans  outstanding  were $362.0  million and $366.1 million on June 30, 2002 and
December 31, 2001  respectively.  This  represents a decrease of $4.1 million or
1.1%.  The decrease is due to the sale of  residential  real estate  loans.  The
following   table   summarizes   the   changes   to  date  in  the  major   loan
classifications.
<TABLE>
<CAPTION>
                                                                                         As a % of Total Loans
                                                                        Change
                                            June 30,    December 31,      in            June 30,     December 31,
                                              2002          2001        Balance          2002           2001
                                           ---------------------------------------    -----------------------------
                                                  (Dollars in millions)
<S>                                        <C>        <C>           <C>               <C>        <C>
Residential Real Estate                      $155.0        $160.7        ($5.7)          43.7%         43.9%
Commercial Real Estate                        $90.0         $90.7        ($0.7)          25.4%         24.8%
Construction and Land Development             $45.8         $43.6         $2.2           12.9%         11.9%
Commercial                                    $24.3         $27.5        ($3.2)           6.9%          7.5%

</TABLE>

Allowance for Loan Losses

The  allowance  for possible loan losses was $4.5 million or 1.3% of gross loans
on June 30, 2002,  compared with $4.4 million or 1.2% of gross loans on December
31, 2001. Net charge-offs were $6 thousand or .002% of gross loans,  compared to
net charge-offs of $60 thousand or .016% of gross loans for December 31, 2001.

The allowance for loan losses is established through a provision for loan losses
charged to expense. Loans are charged against the allowance for loan losses when
management  believes that the  collectibility of the principal is unlikely.  The
allowance for loan losses is adequate to cover probable  credit losses  relating
to specifically  identified loans, as well as probable credit losses inherent in
the balance of the loan portfolio. In accordance with FASB Statements 5 and 114,
the  allowance is provided for losses that have been  incurred as of the balance
sheet  date.  The  allowance  is  based  on past  events  and  current  economic
conditions,  and does not include  the  effects of  expected  losses on specific
loans or groups of loans that are related to future  events or expected  changes
in economic  conditions.  Management  reviews a calculation of the allowance for
loan losses on a quarterly  basis.  While  management uses the best  information
available to make its  evaluation,  future  adjustments  to the allowance may be
necessary  if there are  significant  changes in economic  conditions.  Impaired
loans are  measured  based on the present  value of  expected  future cash flows
discounted at the loan's effective  interest rate or, as a practical  expedient,
at the loan's observable market price or the fair value of the collateral if the
loan is  collateral  dependent.  A loan is  impaired  when  it is  probable  the
creditor  will be unable to  collect  all  contractual  principal  and  interest
payments due in accordance with the terms of the loan agreement.

<PAGE>

In addition,  various regulatory agencies  periodically review the allowance for
loan  losses.  These  agencies  may  require the bank to make  additions  to the
allowance for loan losses based on their  judgments of  collectibility  based on
information available to them at the time of their examination.

As of June 30, 2002, $180 thousand was charged to current  earnings and added to
the allowance for loan losses.

<TABLE>
Non-accrual, Past Due and Renegotiated Loans
<CAPTION>
                                                                      June 30,        December 31,
                                                                        2002              2001
                                                                  -----------------------------------
                                                                        (Dollars in thousands)
<S>                                                               <C>               <C>
Non-accrual Loans (a)                                                  $1,725            $1,541
Past Due 90 days +                                                          0                 0
Restructured Loans                                                          0                 0

</TABLE>

The  policy of the  Company  is to place a loan on  non-accrual  status  if: (a)
payment in full of interest and principal is not  expected,  or (b) principal or
interest  has  been in  default  for a  period  of 90 days  or more  unless  the
obligation is both in the process of collection  and well secured.  Well secured
is defined as collateral with sufficient market value to repay principal and all
accrued  interest.  A debt is in the process of  collection if collection of the
debt  is  proceeding  in due  course  either  through  legal  action,  including
judgement  enforcement  procedures,  or in  appropriate  circumstances,  through
collection  efforts not involving legal action which are reasonably  expected to
result in repayment of the dept or in its  restoration  to current  status.  The
non-accrual loans consisted primarily of $1.3 million of residential real estate
loans,  $318  thousand of  commercial  loans,  and $96 thousand of  agricultural
loans.  On June 30, 2002,  the ratio of  non-accrual  loans to the allowance for
loan losses was 38.0% compared to 35.3% on December 31, 2001.

As of June 30, 2002, the Company had loans  totaling  $27,182,000 in addition to
those listed as non-accrual,  past due or  renegotiated  that were identified by
the Banks'  internal asset rating  systems as classified  assets and loans which
management has  determined  require  additional  monitoring.  This  represents a
decrease of $871,000 or 3.1% from December 31, 2001.  Management is not aware of
any  significant  loans,  group of loans or segments of the loan  portfolio  not
included  above,  where  full  collectibility  cannot  reasonably  be  expected.
Management  has  committed  resources  and is  focusing  on efforts  designed to
control the amount of classified assets. The company does not have a substantial
portion of its loans  concentrated  in one or a few  industries nor does it have
any foreign  loans  outstanding  as of June 30, 2002.  The  company's  loans are
concentrated  geographically  in the  Wisconsin  counties  of Racine,  Walworth,
Kenosha, Lafayette and Green.

Investments securities - Available for Sale

For the purposes of this discussion,  investment  security balances are based on
amortized  costs.  The securities  available-for-sale  portfolio  increased $274
thousand or .5% from  December 31, 2001.  The increase  came from three areas of
the portfolio.  The Company  purchased $3.6 million of municipal  securities and
had $565  thousand  mature.  U.S.  Government  Agency  securities  declined $1.4
million and  municipalities  declined  $925  thousand  due to the call  features
exercised by various Government Agencies. The Company purchased $28.5 million of
U.S.  Government Agency Discount Notes and had $20.5 million of U.S.  Government
Agency  Discount  Notes  mature.  The Company,  also,  sold $7.1 million of U.S.
Government  Agency Discount  Notes.  These Discount Notes are used as collateral
for the Company's sweep repurchase accounts.

<PAGE>

Deposits and Borrowed Funds

Total  deposits and borrowed funds were $409.6 million on June 30, 2002 compared
to $429.5  million on December 31, 2001.  This is a decrease of $19.9 million or
4.6%.  The decrease is due to decreased  borrowed  funds.  The  following  table
summarizes  the changes in the major  classifications  of deposits  and borrowed
funds.
<TABLE>
<CAPTION>
                                                            June 30,          December 31,          Change in
                                                              2002                2001               Balance
                                                       ---------------------------------------    ------------
                                                               (Dollars in millions)
<S>                                                    <C>                   <C>                   <C>
Money Market and Savings                                     $138.9             $134.6                $4.3
Demand  Deposits                                              $59.0              $66.6               ($7.6)
Time Deposits less than $100,000                              $86.4              $87.2               ($0.8)
Time Deposits equal or greater than $100,000                  $43.7              $33.7                $10.0
Securities sold under agreement to repurchase                 $21.5              $26.0               ($4.5)
Federal Home Loan Borrowings                                  $34.9              $47.3               ($12.4)

</TABLE>

Capital resources

As of June 30, 2002, the Company's  stockholders'  equity increased $3.2 million
or 7.6%. Net income of $3.3 million was the primary  reasons for the increase in
equity.  The company has  purchased  $179  thousand of treasury  stock so far in
2002.  Accumulated  other  comprehensive  income increased $534 thousand to $1.1
million.

In December 1990,  the Federal  Reserve  Board's  risk-based  guidelines  became
effective.  Under these  guidelines  capital is measured  against the  Company's
subsidiary  bank's  risk-weighted  assets.  The Company's tier 1 capital (common
stockholders'  equity less goodwill) to  risk-weighted  assets was 12.1% at June
30, 2002,  well above the 4% minimum  required.  Total capital to  risk-adjusted
assets was 13.3%, also well above the 8% minimum requirement. The leverage ratio
was at 9.6%  compared to the 4% minimum  requirement.  According to FDIC capital
guidelines,   the   Company's   subsidiary   bank  is  considered  to  be  "well
capitalized."

Asset/liability management

The principal  function of  asset/liability  management is to manage the balance
sheet mix,  maturities,  repricing  characteristics  and pricing  components  to
provide an adequate and stable net interest  margin with an acceptable  level of
risk over time and through interest rate cycles.

Interest-sensitive  assets  and  liabilities  are  those  that  are  subject  to
repricing   within  a  specific   relevant  time  horizon.   The  Bank  measures
interest-sensitive  assets and  liabilities,  and their  relationship  with each
other at terms of immediate, quarterly intervals up to 1 year, and over 1 year.

Changes in net interest income,  other than volume related,  arise when interest
rates on assets  reprice in a time frame or interest  rate  environment  that is
different  from the repricing  period for  liabilities.  Changes in net interest
income  also  arise  from  changes  in the mix of  interest  earning  assets and
interest-bearing liabilities.

The Bank's  strategy with respect to  asset/liability  management is to maximize
net  interest  income  while  limiting  its  exposure  to a  potential  downward
movement.  Strategy is implemented by the Bank's management,  which takes action
based upon its analysis of the Bank's  present  positioning,  its desired future
positioning,  economic  forecasts,  and its goals.  It is the  Bank's  desire to
maintain a cumulative GAP of positive or negative 15% of rate  sensitive  assets
at the 1-year  time frame.  The  current  percentage  is a positive  19%,  which
compares to a positive 17% as of December 31, 2001.

<PAGE>

Liquidity

Liquidity  measures  the  ability  of  First  Banking  Center  to meet  maturing
obligations and its existing commitments,  to withstand  fluctuations in deposit
levels, to fund its operations,  and to provide for customers' credit needs. One
source of  liquidity is cash and  short-term  assets,  such as  interest-bearing
deposits in other banks and federal  funds sold,  which totaled $19.9 million at
June 30, 2002,  compared with $33.0 million at December 31, 2001. The Bank has a
variety of sources of short-term  liquidity  available to it, including  federal
funds  purchased from  correspondent  banks,  sales of securities  available for
sale, FHLB advances,  lines of credit and loan  participations  or sales.  First
Banking Center also generates  liquidity from the regular principal payments and
prepayments made on its portfolio of loans and mortgage-backed  securities.  The
liquidity of First Banking Center is comprised of three primary classifications:
cash flows from operating activities,  cash flows from investing activities, and
cash flows from financing activities.  Net cash provided by operating activities
was $7.9 million.  Net cash provided by investing  activities  was $3.3 million.
Net cash used in financing activities was $20.5 million, as of June 30, 2002.

As of June 30, 2001, net cash provided by operating activities was $91 thousand.
Net cash  used in  investing  activities  was  $11.5  million.  Net cash used in
financing activities was $5.1 million.

Impact of Inflation and Changing Prices

The  consolidated  financial  statements  and the  accompanying  notes have been
prepared in accordance  with  accounting  principles  generally  accepted in the
United States of America,  which require the  measurement of financial  position
and operating results in terms of historical dollar amounts without  considering
the  changes  in the  relative  purchasing  power  of  money  over  time  due to
inflation.  The impact of inflation is reflected in the increased  cost of First
Banking Center's  operations.  Unlike  industrial  companies,  nearly all of the
assets and  liabilities  of First  Banking  Center are monetary in nature.  As a
result,  interest  rates  have  a  greater  impact  on  First  Banking  Center's
performance  than do the effects of general levels of inflation.  Interest rates
do not necessarily move in the same direction or to the same extent as the price
of goods and services.

Forward Looking  Statements- Safe Harbor Statement under the Private  Securities
Litigation Reform Act of 1995

This report contains certain  forward-looking  statements  within the meaning of
Section  27A of the  Securities  Act of 1933,  as amended and Section 21E of the
Securities  Exchange Act of 1934, as amended.  First Banking Center intends such
forward-looking  statements  to be covered  by the safe  harbor  provisions  for
forward-looking  statements  contained in the Private  Securities  Reform Act of
1995,  and is  including  this  statement  for  purposes  of these  safe  harbor
provisions.  Forward-looking statements,  which are based on certain assumptions
and describe First Banking  Center's future plans,  strategies and  expectations
are generally  identifiable by use of the words "believe,"  "expect,"  "intend,"
"anticipate,"  "estimate,"  "project"  or  similar  expressions.  First  Banking
Center's  ability to predict  results  or the actual  effect of future  plans or
strategies is inherently uncertain.  Factors which could have a material adverse
affect on First Banking Center's  operations and future prospects  include,  but
are not limited to, changes in: interest  rates,  general  economic  conditions,
legislative/regulatory  changes,  monetary  and  fiscal  policies  of  the  U.S.
Government,  including  policies of the U.S.  Treasury  and the Federal  Reserve
Board, the quality or composition of the loan or investment  portfolios,  demand
for loan products, deposit flows, competition,  demand for financial services in
our market area, our implementation of new technologies,  First Banking Center's
ability to develop  and  maintain  secure and  reliable  electronic  systems and
accounting  principles,  policies and guidelines.  These risks and uncertainties
should be considered in evaluating forward-looking statements and undue reliance
should not be placed on such statements.

Current Accounting Developments

In July 2001, the Financial  Accounting  Standards  Board issued  Statement 141,
Business  Combinations and Statement 142, Goodwill and Other Intangible  Assets.
Statement  141  eliminates  the  pooling  method  for  accounting  for  business
combinations;  requires  that  intangible  assets that meet certain  criteria be
reported separately from goodwill; and requires negative goodwill arising from a
business  combination  to be recorded as an  extraordinary  gain.  Statement 142
eliminates  the  amortization  of  goodwill  and  other   intangibles  that  are
determined  to have an  indefinite  life;  and  requires,  at a minimum,  annual
impairment tests for goodwill and other intangible assets that are determined to
have an indefinite life. For the Company, the provisions of Statement 142 became
effective  January 1, 2002 and did not have a material  impact on the  Company's
financial statements.

<PAGE>

The Financial  Accounting  Standards Board has issued Statement 143,  Accounting
for  Asset  Retirement   Obligations  and  Statement  144,  Accounting  for  the
Impairment  or Disposal of  Long-Lived  Assets.  Statement 143 requires that the
fair value of a liability  for an asset  retirement  obligation be recognized in
the period in which it is incurred if a reasonable estimate of fair value can be
made.  The  associated  asset  retirement  costs are  capitalized as part of the
carrying amount of the long-lived asset. Statement 144 supersedes FASB Statement
121 and the accounting and reporting provisions of APB Opinion No. 30. Statement
144 establishes a single  accounting model for long-lived  assets to be disposed
of by sale which includes  measuring a long-lived  asset  classified as held for
sale at the lower of its  carrying  amount or its fair  value less costs to sell
and to  cease  depreciation/amortization.  For the  Company,  the  provision  of
Statement 143 is effective January 1, 2003.  Implementation of this Statement is
not expected to have a material  impact on the Company's  financial  statements.
For the Company,  the  provisions of Statement 144 became  effective  January 1,
2002 and did not have a material impact on the Company's financial statements.


Results of operations
Net Interest Income

Net interest income is the difference  between interest income and fees on loans
and interest expense,  and is the largest  contributing factor to net income for
the  Company.  All  discussions  of rate are on a  tax-equivalent  basis,  which
accounts for income earned on  securities  that are not fully subject to federal
taxes.  Net interest  income was $9.8 million and $8.8 million for June 30, 2002
and June 30, 2001  respectively.  Net interest income as a percentage of average
earning  assets  (net  interest  margin)  was 4.79% and 4.80% for the six months
ended 2002 and 2001 respectively.

The  following  table  summarizes  the  changes  and  reasons for the changes in
interest income and fees on loans during 2002 and 2001. The decrease in interest
income  and fees on loans as of June 30,  2002 was due to  decreased  yields  on
earning assets. The increase in interest income and fees on loans as of June 30,
2001 was due primarily to increased average earning assets.

<TABLE>
<CAPTION>
                                                                                                         Dollar/rate change
                                                        For the six months ended:                   For the six months ended:
                                                                 June 30,                                     June 30,
                                                        2002                 2001                   2002                2001
                                                  -------------------------------------       ------------------------------------
                                                          (Dollars in millions)
<S>                                               <C>                 <C>                     <C>                 <C>
Interest income                                         $14.7                $16.8                 ($2.1)                $1.5
Earning assets (Average balances)                      $429.4               $384.3                 $45.1                $19.8
Yield on earning assets                                 6.83%                8.77%                 -1.94%               0.35%

</TABLE>

The  following  table  summarizes  the  changes  and  reasons for the changes in
interest expense for the six months ended June 30, 2002 and 2001. As of June 30,
2002 average balances outstanding increased, however, rates paid for liabilities
decreased  causing a decrease  in  interest  expense.  The  increase in interest
expense  as of June 30,  2001  was a  result  of  average  balances  outstanding
increasing.

<TABLE>
<CAPTION>
                                                                                                         Dollar/rate change
                                                        For the six months ended:                   For the six months ended:
                                                                  June 30,                                      June 30,
                                                        2002                 2001                   2002                2001
                                                  -------------------------------------      --------------------------------------
                                                          (Dollars in millions)
<S>                                               <C>                 <C>                    <C>                  <C>
Interest expense                                         $4.4                 $7.6                 ($3.2)                $0.5
Interest bearing liabilities (Average balances)        $349.7               $320.7                 $29.0                $16.6
Cost of interest bearing liabilities                    2.50%                4.75%                 -2.25%               0.09%

</TABLE>

The major component of interest income and fees on loans is the income generated
by loans.  The table below  summarizes the income,  average balance and yield on
loans for 2002 and 2001.

<PAGE>
<TABLE>
<CAPTION>

                                                                                                          Dollar/rate change
                                                       For the six months ended:                     For the six months ended:
                                                                June 30,                                      June 30,
                                                       2002                  2001                    2002               2001
                                                  -------------------------------------      --------------------------------------
                                                          (Dollars in millions)
<S>                                               <C>                 <C>                    <C>                  <C>
Interest income                                         $12.8                $14.8                 ($2.0)                $1.6
Loans (Average balances)                               $359.7               $323.9                 $35.8                $20.0
Yield on loans                                          7.12%                 9.15%                -2.03%               0.45%

</TABLE>

The major  components of interest  expense are interest paid on  Certificates of
Deposit (Time Deposits) and on Money Market Deposits. The tables below summarize
the expense,  average  balance and rates on these  components for 2002 and 2001.
The decrease in interest expense on Time Deposits was a result of an increase in
average  balances,  while rates paid decreased from 4.8% to 2.9%, as of June 30,
2002. The decrease in interest  expense on Money Market Deposits was a result of
an increase in average  balances,  while rates paid decreased from 4.5% to 1.4%,
as of June 30, 2002.

<TABLE>
<CAPTION>
                                                                                                          Dollar/rate change
                                                       For the six months ended:                     For the six months ended:
                                                                June 30,                                      June 30,
     Time deposits                                     2002                  2001                    2002               2001
                                                  -------------------------------------      --------------------------------------
                                                          (Dollars in millions)
<S>                                               <C>                 <C>                    <C>                  <C>
Interest expense                                         $2.5                 $4.1                 ($1.6)                $0.4
Time deposits (Average balances)                       $175.1               $172.4                  $2.7                 $2.1
Cost of time deposits                                   2.91%                4.76%                 -1.85%               0.38%
</TABLE>
<TABLE>
<CAPTION>
                                                                                                          Dollar/rate change
                                                       For the six months ended:                     For the six months ended:
                                                                June 30,                                      June 30,
     Money Market deposits                             2002                    2001                  2002               2001
                                                  -------------------------------------      --------------------------------------
                                                          (Dollars in millions)
<S>                                               <C>                 <C>                    <C>                  <C>
Interest expense                                         $0.8                 $2.2                 ($1.4)                $0.1
Money Market deposits (Average balances)               $115.8               $100.2                 $15.6                $14.7
Cost of Money Market deposits                           1.36%                4.45%                 -3.09%              -0.35%
</TABLE>

Non-interest income

Non-interest  income  increased  $358 thousand or 22.7% as of June 30, 2002. The
increase  came in  primarily  two areas.  Service  charges  on deposit  accounts
increased  $172  thousand  as the number of  accounts  grew and charges for some
services were increased.  Other income  increased $186 thousand due to brokerage
services, visa debit card income, and miscellaneous investment income.

Non-interest expense

Non-interest expense increased $404 thousand or 6% as of June 30, 2002. Salaries
and benefits accounted for $362 thousand.  The increase in salaries and benefits
is due to normal wage increases and increased health insurance costs.  Equipment
expense  increased  $77  thousand  due  primarily  to  increases  in repair  and
maintenance.  Data  processing  costs  increased  $78  thousand due to increased
volumes and additional  services used.  Other expenses  decreased $128 thousand.
This is the result of cost control management.

Item 3.  Quantitative and Qualitative Disclosures about Market Risk

First Banking Center,  like other financial  institutions,  is subject to direct
and  indirect  market risk.  Direct  market risk exists from changes in interest
rates.  First  Banking  Center's  net income is  dependent  on its net  interest
income.  Net interest  income is susceptible to interest rate risk to the degree
that  interest-bearing  liabilities  mature or reprice on a different basis than
interest-earning  assets.  When  interest-bearing  liabilities mature or reprice
more quickly  than  interest-earning  assets in a given  period,  a  significant
increase in market rates of interest could adversely affect net interest income.

Similarly,  when  interest-earning  assets  mature or reprice  more quickly than
interest-bearing liabilities,  falling interest rates could result in a decrease
in net income.

<PAGE>

In an attempt to manage its  exposure to changes in interest  rates,  management
monitors  First  Banking  Center's  interest  rate  risk.  The   Asset/Liability
Committee  meets quarterly to review First Banking  Center's  interest rate risk
position  and   profitability,   and  to  make  or  recommend   adjustments  for
consideration  by the Board of  Directors.  Management  also  reviews the Bank's
securities portfolio,  formulates investment strategies, and oversees the timing
and   implementation  of  transactions  to  assure  attainment  of  the  Board's
objectives in the most effective manner.  Notwithstanding First Banking Center's
interest rate risk management  activities,  the potential for changing  interest
rates is an uncertainty that can have an adverse effect on net income.

In adjusting  First Banking  Center's  asset/liability  position,  the Board and
management  attempt to manage First  Banking  Center's  interest rate risk while
maintaining or enhancing net interest margins. At times,  depending on the level
of general  interest rates, the  relationship  between  long-term and short-term
interest  rates,  market  conditions  and  competitive  factors,  the  Board and
management  may decide to increase  First  Banking  Center's  interest rate risk
position  somewhat in order to increase its net interest  margin.  First Banking
Center's  results of operations  and net portfolio  values remain  vulnerable to
increases  in  interest  rates and to  fluctuations  in the  difference  between
long-term and short-term interest rates.

One approach  used to quantify  interest  rate risk is the net  portfolio  value
("NPV") analysis.  In essence,  this analysis  calculates the difference between
the present  value of  liabilities  and the present value of expected cash flows
from assets and off-balance-sheet contracts. The most recent NPV analysis, as of
June 30, 2002, projects that net portfolio value would decrease by approximately
2.71% if  interest  rates  would  rise 200 basis  points and would  decrease  by
approximately  1.17% if interest rates would rise 100 basis points over the next
year. It projects an increase in net portfolio value of  approximately  4.94% if
interest rates would drop 200 basis points and  approximately  2.37% if interest
rates would drop 100 basis points. Both simulations are within board-established
policy  limits.  The Company has not  experienced  any  material  changes to its
market risk position since December 31, 2001, as disclosed in the Company's 2001
Form 10K Annual Report.  First Banking Center's policy is to limit the effect of
a 200 basis  point rate  shock to plus or minus 20% of  projected  net  interest
income and to minus 35% of the market value of portfolio equity.

First  Banking  Center does not  currently  engage in trading  activities or use
derivative   instruments  to  control  interest  rate  risk.  Even  though  such
activities may be permitted  with the approval of the Board of Directors,  First
Banking  Center does not intend to engage in such  activities  in the  immediate
future.

Interest rate risk is the most  significant  market risk affecting First Banking
Center.  Other types of market risk, such as foreign currency exchange rate risk
and  commodity  price risk,  do not arise in the normal  course of First Banking
Center's business activities.

<PAGE>

Part II-OTHER INFORMATION
Item 1.  Legal Proceedings

         None

Item 2.  Changes in Securities

         None

Item 3.  Defaults upon Senior Securities

         None

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

          A. The  Corporation  held its Annual Meeting of  Shareholders on April
             16, 2002.

          B. Votes cast for the  election of four  directors  to serve until the
             2005 Annual Meeting of Shareholders are as follows:
<TABLE>
<CAPTION>

                  Director                        For                 Withhold         Against
                  <S>                             <C>                 <C>              <C>
                  Brantly Chappell                1,203,742             518            0
                  Melvin W. Wendt                 1,204,110             150            0
                  Charles R. Wellington           1,202,041           2,219            0
                  Robert Fait                     1,202,808           1,452            0

                  The continuing Directors of the
                  Corporation are as follows:

                  John S. Smith
                  John M. Ernster
                  Richard McKinney
                  Keith Blumer
                  David Boilini
                  Thomas Laken, Jr.
                  Daniel T. Jacobson
</TABLE>


Item 5.  Other Information

         None

Item 6.  Exhibits and Reports on Form 8-K

         None

<PAGE>

                   FIRST BANKING CENTER, INC AND SUBSIDIARIES


                                   SIGNATURES





Pursuant to the requirements of the Securities Exchange Act of 1943, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.










                           First Banking Center, Inc.





August 2, 2002                              _________________________
Date                                        Brantly Chappell
                                            Chief Executive Officer




August 2, 2002                              __________________________
Date                                        James Schuster
                                            Chief Financial Officer
[{"type": "10-Q", "sequence": "1", "filename": "june10q.txt", "description": "JUNE 2002 10Q", "secsgml_size_bytes": 62364}]
{"company-data": {"conformed-name": "FIRST BANKING CENTER INC", "cik": "0000356858", "assigned-sic": "6022", "irs-number": "391391327", "state-of-incorporation": "WI", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "10-Q", "act": "34", "file-number": "000-11132", "film-number": "02722585"}, "business-address": {"street1": "400 MILWAUKEE AVE", "street2": "P O BOX 660", "city": "BURLINGTON", "state": "WI", "zip": "53105", "phone": "4147633581"}, "mail-address": {"street1": "567 BROAD ST", "street2": "PO BOX 970", "city": "LAKE GENEVA", "state": "WI", "zip": "53147"}, "former-company": {"former-conformed-name": "FIRST COMMUNITY BANK GROUP INC", "date-changed": "19850312"}}
UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 10-Q

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

For the quarterly period ended June 30, 2002

OR

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

                         Commission File Number 0-11132

                           FIRST BANKING CENTER, INC.
             (Exact name of registrant as specified in its charter)

             Wisconsin                                     39-1391327
   (State or other jurisdiction of                     (I.R.S. Employer
    incorporation or organization)                      Identification No.)

                    400 Milwaukee Ave., Burlington, WI 53105
               (Address of principal executive offices) (Zip Code)

                                 (262) 763-3581
              (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 the number of shares  outstanding  of each of the  issuer's  classes of
common  stock,  as of July 22, 2002.  Common stock,  $1.00 par value,  1,471,301
shares outstanding.
FIRST BANKING CENTER, INC AND SUBSIDIARY
                                      INDEX
                                  June 30, 2002

Part I   Financial Information

         Item 1       Consolidated Financial Statements

                      Unaudited Consolidated Balance Sheets,
                      June 30, 2002 and December 31, 2001

                      Unaudited Consolidated Statements of Income,
                      For the six months ended June 30, 2002 and 2001

                      Unaudited Consolidated Statements of Cash Flows, For
                      the six months ended June 30, 2002 and 2001

                      Notes to Unaudited Consolidated Financial Statements

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

         Item 3       Quantitative and Qualitative Disclosures about Market Risk

Part II  Other Information

         Item 1       Legal Proceedings

         Item 2       Changes in Securities and Use of Proceeds

         Item 3       Defaults upon Senior Securities

         Item 4       Submission of Matters to a Vote of Security Holders

         Item 5       Other Information

         Item 6       Exhibits and Reports on Form 8-K

         Signature
PART I. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements

                                    FIRST BANKING CENTER, INC. AND SUBSIDIARY
                                      UNAUDITED CONSOLIDATED BALANCE SHEETS
June 30,     December 31,
                                                                                   2002           2001
                                                                                    -------------------------------
                                                                                        (Dollars in thousands)
ASSETS
  Cash and due from banks                                                                  $11,455         $20,735
  Federal funds sold                                                                         8,286          12,010
  Interest-bearing deposits in banks                                                           148             267
  Available for sale securities                                                             60,427          59,343
  Loans, less allowance for loan losses of $4,541 and
    $4,367 in 2002 and 2001, respectively                                                  357,465         361,705
  Office buildings and equipment, net                                                       10,335          10,521
  Other assets                                                                              10,629          11,199
                                                                                    -------------------------------

      TOTAL ASSETS                                                                        $458,745        $475,780
                                                                                    ===============================

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities
  Deposits
    Demand                                                                                 $59,047         $66,612
    Savings and NOW accounts                                                               163,309         164,904
    Time                                                                                   130,171         120,898
                                                                                    -------------------------------
      Total Deposits                                                                       352,527         352,414
  Short-term borrowings                                                                     21,613          29,199
  Other borrowings                                                                          35,462          47,847
  Other liabilities                                                                          3,712           4,081
                                                                                    -------------------------------

      TOTAL LIABILITIES                                                                   $413,314        $433,541
                                                                                    -------------------------------

STOCKHOLDERS' EQUITY
  Common Stock, $1.00 par value 3,000,000 shares authorized; 1,489,380 shares
    issued; 1,471,301 and 1,473,197 shares outstanding
    as of June 30, 2002 and December 31, 2001, respectively                                  1,489           1,489
  Surplus                                                                                    4,190           4,184
  Retained Earnings                                                                         39,402          36,649
  Accumulated other comprehensive income                                                     1,076             542
  Common stock in treasury, at cost-18,079 and 16,183 shares
   for June 30, 2002 and December 31, 2001, respectively                                     ($726)          ($625)
                                                                                    -------------------------------

      TOTAL STOCKHOLDERS' EQUITY                                                           $45,431         $42,239
                                                                                    -------------------------------

      TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                          $458,745        $475,780
                                                                                    ===============================

                                 "See accompanying notes to financial statements"
FIRST BANKING CENTER, INC. AND SUBSIDIARY
                                       UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
Three months ended            Six months ended
                                                                           June 30,                     June 30,
                                                                     2002           2001           2002          2001
                                                                 ----------------------------------------------------------
                                                                       (Dollars in thousands, except per share data)
INTEREST INCOME
  Interest and fees on loans                                            $6,426         $7,443        $12,799       $14,820
  Interest and dividends on securities:
    Taxable                                                                272            303            548           717
    Non-taxable                                                            402            348            794           674
  Interest on federal funds sold                                            16             81             49           160
  Interest on interest-bearing deposits in banks                             9             60             26            71
                                                                 ----------------------------------------------------------
      TOTAL INTEREST INCOME                                              7,125          8,235         14,216        16,442
                                                                 ----------------------------------------------------------

INTEREST EXPENSE
  Interest on deposits                                                   1,615          3,040          3,337         6,330
  Interest on short-term borrowings                                        107            183            229           476
  Interest on other borrowings                                             406            445            808           819
                                                                 ----------------------------------------------------------
      TOTAL INTEREST EXPENSE                                             2,128          3,668          4,374         7,625
                                                                 ----------------------------------------------------------

      NET INTEREST INCOME                                                4,997          4,567          9,842         8,817

  Provision for loan losses                                                 90             90            180           180
                                                                 ----------------------------------------------------------
      NET INTEREST INCOME AFTER PROVISION FOR
        LOAN LOSSES                                                      4,907          4,477          9,662         8,637
                                                                 ----------------------------------------------------------

NON-INTEREST INCOME
  Trust fees                                                               137            137            275           275
  Service charges on deposit accounts                                      458            398            891           719
   Investment securities gains                                              13              0             13             0
  Other                                                                    360            289            759           586
                                                                 ----------------------------------------------------------
      TOTAL NON-INTEREST INCOME                                            968            824          1,938         1,580
                                                                 ----------------------------------------------------------

NON-INTEREST EXPENSE
  Salary and employee benefits                                           1,979          1,870          4,085         3,723
  Occupancy                                                                246            222            488           473
  Equipment                                                                376            345            750           673
  Data Processing services                                                 230            191            461           383
  Other                                                                    695            752          1,306         1,434
                                                                 ----------------------------------------------------------
      TOTAL NON-INTEREST EXPENSE                                         3,526          3,380          7,090         6,686
                                                                 ----------------------------------------------------------

      INCOME BEFORE INCOME TAXES                                         2,349          1,921          4,510         3,531

  Income taxes                                                             638            501          1,208           906
                                                                 ----------------------------------------------------------

      NET INCOME                                                        $1,711         $1,420         $3,302        $2,625
                                                                 ==========================================================

        Basic earnings per share                                         $1.16          $0.96          $2.24         $1.78
        Diluted earnings per share                                       $1.14          $0.96          $2.19         $1.77
        Dividends per share                                              $0.37          $0.34          $0.37         $0.34

                                     "See accompanying notes to financial statements"
FIRST BANKING CENTER, INC. AND SUBSIDIARY
                                  UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
Six months ended
                                                                                                  June 30,
                                                                                             2002          2001
                                                                                         ---------------------------
                                                                                           (Dollars in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income                                                                                    $3,302       $2,625
  Adjustments to reconcile net income to net cash
   provided by (used in) operating activities:
    Depreciation                                                                                   425          411
    Provision for loan losses                                                                      180          180
    Loans originated for sale                                                                  (19,586)     (52,080)
    Proceeds from sale of loans                                                                 23,647       50,126
    Amortization of premiums and accretion of discounts
      on securities, net                                                                            43           23
    Amortization                                                                                    51           51
    Investment securities gains                                                                    (13)           0
    Tax benefit of nonqualified stock options exercised                                              6            0
    (Increase) decrease in other assets                                                            244       (1,372)
    Increase (decrease) in other liabilities                                                      (369)         127
                                                                                         ---------------------------

        NET CASH PROVIDED BY OPERATING ACTIVITIES                                                7,930           91
                                                                                         ---------------------------

CASH FLOWS FROM INVESTING ACTIVITIES:
    Net decrease in interest-bearing deposits in banks                                             119           23
    Net (increase) decrease in federal funds sold                                                3,724       (8,129)
    Proceeds from sales of available for sale securities                                         7,615        2,786
    Proceeds from maturities and calls of available for sale securities                         30,462       61,116
    Purchase of available for sale securities                                                  (38,381)     (45,417)
    Net increase in loans                                                                           (1)     (21,117)
    Purchase of office buildings and equipment, net                                               (239)        (766)
                                                                                         ---------------------------

        NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES                                      3,299      (11,504)
                                                                                         ---------------------------

CASH FLOWS FROM FINANCING ACTIVITIES:
    Net increase (decrease) in deposits                                                            113       (2,672)
    Dividends paid                                                                                (546)        (500)
    Proceeds from other borrowings                                                               1,000       10,000
    Payments on other borrowings                                                               (13,385)     (10,878)
    Net decrease in short term borrowings                                                       (7,586)        (853)
    Purchase of treasury stock                                                                    (179)        (231)
    Sale of treasury stock for the exercise of stock options                                        74            2
                                                                                         ---------------------------

        NET CASH USED IN FINANCING ACTIVITIES                                                  (20,509)      (5,132)
                                                                                         ---------------------------

    NET DECREASE IN CASH AND DUE FROM BANKS                                                     (9,280)     (16,545)

CASH AND DUE FROM BANKS:
    Beginning                                                                                   20,735       29,287
                                                                                         ---------------------------

    Ending                                                                                     $11,455      $12,742
                                                                                         ===========================

Supplemental Disclosures of Cash Flow Information,
  Cash Paid During the Year for:
    Interest                                                                                    $4,327       $7,839
    Income taxes                                                                                $1,012       $1,060

Supplemental Schedule of Noncash Investing Activities,
  Change in Accumulated Other Comprehensive Income,
  Unrealized Gain on Available-for-Sale Securities, Net                                           $534         $465

                                 "See accompanying notes to financial statements"
FIRST BANKING CENTER, INC AND SUBSIDIARY
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                                  June 30,2002

NOTE 1 - Basis of Presentation

The unaudited  consolidated  financial  statements include the accounts of First
Banking  Center,  Inc. and its  subsidiary  (the  "Company").  In the opinion of
management,  all adjustments  (consisting only of normal recurring  adjustments)
necessary  for a  fair  presentation  of  the  financial  position,  results  of
operation and cash flows for the interim  periods have been made. The results of
operations for the three and six months ended June 30, 2002 are not  necessarily
indicative of the results to be expected for the entire fiscal year.

The unaudited interim financial statements have been prepared in conformity with
accounting  principles  generally  accepted in the United  States of America and
industry practice.  Certain information in footnote disclosure normally included
in  financial  statements  prepared in  accordance  with  accounting  principles
generally  accepted in the United  States of America and  industry  practice has
been  condensed or omitted  pursuant to rules and  regulations of the Securities
and  Exchange   Commission.   These  financial  statements  should  be  read  in
conjunction  with  the  consolidated  financial  statements  and  notes  thereto
included in the Company's December 31, 2001 audited financial statements.

The preparation of financial statements in conformity with accounting principles
generally  accepted in the United States of America requires  management to make
estimates  and  assumptions  which  affect  the  reported  amounts of assets and
liabilities  and disclosure of contingent  assets and liabilities as of the date
of the  financial  statements,  as well as the  reported  amounts  of income and
expenses  during the reported  periods.  Actual  results could differ from those
estimates.

NOTE 2 - Earnings Per Share

The following information  calculates the computation of earnings per share on a
basic and diluted basis.
Three Months Ended           Six Months Ended
                                                                             June 30,                    June 30,
                                                                        2002          2001          2002          2001
                                                                    --------------------------------------------------------
                                                                    (Dollars in thousands, except per share data)
Basic
Net income                                                                 $1,711        $1,420        $3,302        $2,625
Weighted average shares outstanding                                         1,471         1,471         1,471         1,471
Basic earnings per share                                                    $1.16         $0.96         $2.24         $1.78
                                                                    ========================================================

Diluted
Net income                                                                 $1,711        $1,420        $3,302        $2,625
Weighted average shares outstanding                                         1,471         1,471         1,471         1,471
Effect of dilutive stock options outstanding                                   34            16            34            16
                                                                    --------------------------------------------------------
Diluted weighted average shares outstanding                                 1,505         1,487         1,505         1,487
Diluted earnings per share                                                  $1.14         $0.96         $2.19         $1.77
                                                                    ========================================================
NOTE 3-Comprehensive Income

The following table presents our comprehensive income.
Three Months Ended           Six Months Ended
                                                                             June 30,                    June 30,
                                                                        2002          2001          2002          2001
                                                                    --------------------------------------------------------
                                                                                    (Dollars in thousands)
Net income                                                                 $1,711        $1,420        $3,302        $2,625
Other comprehensive income
  Net change in unrealized gain on available for sale securities              659             2           534           465
                                                                    --------------------------------------------------------
Total comprehensive income                                                 $2,370        $1,422        $3,836        $3,090
                                                                    ========================================================
Item 2. Management's  Discussion and Analysis of Financial Condition and Results
        of Operations

                    FIRST BANKING CENTER, INC AND SUBSIDIARY
                       MANAGEMENTS DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                               As of June 30, 2002

The following discussion provides additional analysis of the financial condition
and results of operations of the Company for the six months ended June 30, 2002.
This discussion  focuses on the significant  factors that affected the Company's
earnings so far in 2002,  with  comparisons to 2001. As of June 30, 2002,  First
Banking  Center (the "Bank") was the only direct  subsidiary  of the Company and
its operations  contributed  nearly all of the revenue for the year. The Company
provides  various support  functions for the Bank and receives  payment from the
Bank for these  services.  These  intercompany  payments are  eliminated for the
purpose  of these  consolidated  financial  statements.  The Bank has two wholly
owned  subsidiaries,  FBC Financial  Services,  Corp., a brokerage and financial
services subsidiary, and FBC-Burlington,  Inc., an investment subsidiary located
in Nevada.

Overview

As of June 30, 2002,  total Company assets were $458.7 million  decreasing  3.6%
from $475.8 million as of December 31, 2001. Total income,  as of June 30, 2002,
was $3.3 million or $2.24 per share, increasing 25.8% from $2.6 million or $1.78
per  share in 2001.  The  significant  items  resulting  in the  above-mentioned
results are discussed below.

Financial Condition

Loans

Loans  outstanding  were $362.0  million and $366.1 million on June 30, 2002 and
December 31, 2001  respectively.  This  represents a decrease of $4.1 million or
1.1%.  The decrease is due to the sale of  residential  real estate  loans.  The
following   table   summarizes   the   changes   to  date  in  the  major   loan
classifications.
As a % of Total Loans
                                                                        Change
                                            June 30,    December 31,      in            June 30,     December 31,
                                              2002          2001        Balance          2002           2001
                                           ---------------------------------------    -----------------------------
                                                  (Dollars in millions)
Residential Real Estate                      $155.0        $160.7        ($5.7)          43.7%         43.9%
Commercial Real Estate                        $90.0         $90.7        ($0.7)          25.4%         24.8%
Construction and Land Development             $45.8         $43.6         $2.2           12.9%         11.9%
Commercial                                    $24.3         $27.5        ($3.2)           6.9%          7.5%
Allowance for Loan Losses

The  allowance  for possible loan losses was $4.5 million or 1.3% of gross loans
on June 30, 2002,  compared with $4.4 million or 1.2% of gross loans on December
31, 2001. Net charge-offs were $6 thousand or .002% of gross loans,  compared to
net charge-offs of $60 thousand or .016% of gross loans for December 31, 2001.

The allowance for loan losses is established through a provision for loan losses
charged to expense. Loans are charged against the allowance for loan losses when
management  believes that the  collectibility of the principal is unlikely.  The
allowance for loan losses is adequate to cover probable  credit losses  relating
to specifically  identified loans, as well as probable credit losses inherent in
the balance of the loan portfolio. In accordance with FASB Statements 5 and 114,
the  allowance is provided for losses that have been  incurred as of the balance
sheet  date.  The  allowance  is  based  on past  events  and  current  economic
conditions,  and does not include  the  effects of  expected  losses on specific
loans or groups of loans that are related to future  events or expected  changes
in economic  conditions.  Management  reviews a calculation of the allowance for
loan losses on a quarterly  basis.  While  management uses the best  information
available to make its  evaluation,  future  adjustments  to the allowance may be
necessary  if there are  significant  changes in economic  conditions.  Impaired
loans are  measured  based on the present  value of  expected  future cash flows
discounted at the loan's effective  interest rate or, as a practical  expedient,
at the loan's observable market price or the fair value of the collateral if the
loan is  collateral  dependent.  A loan is  impaired  when  it is  probable  the
creditor  will be unable to  collect  all  contractual  principal  and  interest
payments due in accordance with the terms of the loan agreement.
In addition,  various regulatory agencies  periodically review the allowance for
loan  losses.  These  agencies  may  require the bank to make  additions  to the
allowance for loan losses based on their  judgments of  collectibility  based on
information available to them at the time of their examination.

As of June 30, 2002, $180 thousand was charged to current  earnings and added to
the allowance for loan losses.

Non-accrual, Past Due and Renegotiated Loans
June 30,        December 31,
                                                                        2002              2001
                                                                  -----------------------------------
                                                                        (Dollars in thousands)
Non-accrual Loans (a)                                                  $1,725            $1,541
Past Due 90 days +                                                          0                 0
Restructured Loans                                                          0                 0
The  policy of the  Company  is to place a loan on  non-accrual  status  if: (a)
payment in full of interest and principal is not  expected,  or (b) principal or
interest  has  been in  default  for a  period  of 90 days  or more  unless  the
obligation is both in the process of collection  and well secured.  Well secured
is defined as collateral with sufficient market value to repay principal and all
accrued  interest.  A debt is in the process of  collection if collection of the
debt  is  proceeding  in due  course  either  through  legal  action,  including
judgement  enforcement  procedures,  or in  appropriate  circumstances,  through
collection  efforts not involving legal action which are reasonably  expected to
result in repayment of the dept or in its  restoration  to current  status.  The
non-accrual loans consisted primarily of $1.3 million of residential real estate
loans,  $318  thousand of  commercial  loans,  and $96 thousand of  agricultural
loans.  On June 30, 2002,  the ratio of  non-accrual  loans to the allowance for
loan losses was 38.0% compared to 35.3% on December 31, 2001.

As of June 30, 2002, the Company had loans  totaling  $27,182,000 in addition to
those listed as non-accrual,  past due or  renegotiated  that were identified by
the Banks'  internal asset rating  systems as classified  assets and loans which
management has  determined  require  additional  monitoring.  This  represents a
decrease of $871,000 or 3.1% from December 31, 2001.  Management is not aware of
any  significant  loans,  group of loans or segments of the loan  portfolio  not
included  above,  where  full  collectibility  cannot  reasonably  be  expected.
Management  has  committed  resources  and is  focusing  on efforts  designed to
control the amount of classified assets. The company does not have a substantial
portion of its loans  concentrated  in one or a few  industries nor does it have
any foreign  loans  outstanding  as of June 30, 2002.  The  company's  loans are
concentrated  geographically  in the  Wisconsin  counties  of Racine,  Walworth,
Kenosha, Lafayette and Green.

Investments securities - Available for Sale

For the purposes of this discussion,  investment  security balances are based on
amortized  costs.  The securities  available-for-sale  portfolio  increased $274
thousand or .5% from  December 31, 2001.  The increase  came from three areas of
the portfolio.  The Company  purchased $3.6 million of municipal  securities and
had $565  thousand  mature.  U.S.  Government  Agency  securities  declined $1.4
million and  municipalities  declined  $925  thousand  due to the call  features
exercised by various Government Agencies. The Company purchased $28.5 million of
U.S.  Government Agency Discount Notes and had $20.5 million of U.S.  Government
Agency  Discount  Notes  mature.  The Company,  also,  sold $7.1 million of U.S.
Government  Agency Discount  Notes.  These Discount Notes are used as collateral
for the Company's sweep repurchase accounts.
Deposits and Borrowed Funds

Total  deposits and borrowed funds were $409.6 million on June 30, 2002 compared
to $429.5  million on December 31, 2001.  This is a decrease of $19.9 million or
4.6%.  The decrease is due to decreased  borrowed  funds.  The  following  table
summarizes  the changes in the major  classifications  of deposits  and borrowed
funds.
June 30,          December 31,          Change in
                                                              2002                2001               Balance
                                                       ---------------------------------------    ------------
                                                               (Dollars in millions)
Money Market and Savings                                     $138.9             $134.6                $4.3
Demand  Deposits                                              $59.0              $66.6               ($7.6)
Time Deposits less than $100,000                              $86.4              $87.2               ($0.8)
Time Deposits equal or greater than $100,000                  $43.7              $33.7                $10.0
Securities sold under agreement to repurchase                 $21.5              $26.0               ($4.5)
Federal Home Loan Borrowings                                  $34.9              $47.3               ($12.4)
Capital resources

As of June 30, 2002, the Company's  stockholders'  equity increased $3.2 million
or 7.6%. Net income of $3.3 million was the primary  reasons for the increase in
equity.  The company has  purchased  $179  thousand of treasury  stock so far in
2002.  Accumulated  other  comprehensive  income increased $534 thousand to $1.1
million.

In December 1990,  the Federal  Reserve  Board's  risk-based  guidelines  became
effective.  Under these  guidelines  capital is measured  against the  Company's
subsidiary  bank's  risk-weighted  assets.  The Company's tier 1 capital (common
stockholders'  equity less goodwill) to  risk-weighted  assets was 12.1% at June
30, 2002,  well above the 4% minimum  required.  Total capital to  risk-adjusted
assets was 13.3%, also well above the 8% minimum requirement. The leverage ratio
was at 9.6%  compared to the 4% minimum  requirement.  According to FDIC capital
guidelines,   the   Company's   subsidiary   bank  is  considered  to  be  "well
capitalized."

Asset/liability management

The principal  function of  asset/liability  management is to manage the balance
sheet mix,  maturities,  repricing  characteristics  and pricing  components  to
provide an adequate and stable net interest  margin with an acceptable  level of
risk over time and through interest rate cycles.

Interest-sensitive  assets  and  liabilities  are  those  that  are  subject  to
repricing   within  a  specific   relevant  time  horizon.   The  Bank  measures
interest-sensitive  assets and  liabilities,  and their  relationship  with each
other at terms of immediate, quarterly intervals up to 1 year, and over 1 year.

Changes in net interest income,  other than volume related,  arise when interest
rates on assets  reprice in a time frame or interest  rate  environment  that is
different  from the repricing  period for  liabilities.  Changes in net interest
income  also  arise  from  changes  in the mix of  interest  earning  assets and
interest-bearing liabilities.

The Bank's  strategy with respect to  asset/liability  management is to maximize
net  interest  income  while  limiting  its  exposure  to a  potential  downward
movement.  Strategy is implemented by the Bank's management,  which takes action
based upon its analysis of the Bank's  present  positioning,  its desired future
positioning,  economic  forecasts,  and its goals.  It is the  Bank's  desire to
maintain a cumulative GAP of positive or negative 15% of rate  sensitive  assets
at the 1-year  time frame.  The  current  percentage  is a positive  19%,  which
compares to a positive 17% as of December 31, 2001.
Liquidity

Liquidity  measures  the  ability  of  First  Banking  Center  to meet  maturing
obligations and its existing commitments,  to withstand  fluctuations in deposit
levels, to fund its operations,  and to provide for customers' credit needs. One
source of  liquidity is cash and  short-term  assets,  such as  interest-bearing
deposits in other banks and federal  funds sold,  which totaled $19.9 million at
June 30, 2002,  compared with $33.0 million at December 31, 2001. The Bank has a
variety of sources of short-term  liquidity  available to it, including  federal
funds  purchased from  correspondent  banks,  sales of securities  available for
sale, FHLB advances,  lines of credit and loan  participations  or sales.  First
Banking Center also generates  liquidity from the regular principal payments and
prepayments made on its portfolio of loans and mortgage-backed  securities.  The
liquidity of First Banking Center is comprised of three primary classifications:
cash flows from operating activities,  cash flows from investing activities, and
cash flows from financing activities.  Net cash provided by operating activities
was $7.9 million.  Net cash provided by investing  activities  was $3.3 million.
Net cash used in financing activities was $20.5 million, as of June 30, 2002.

As of June 30, 2001, net cash provided by operating activities was $91 thousand.
Net cash  used in  investing  activities  was  $11.5  million.  Net cash used in
financing activities was $5.1 million.

Impact of Inflation and Changing Prices

The  consolidated  financial  statements  and the  accompanying  notes have been
prepared in accordance  with  accounting  principles  generally  accepted in the
United States of America,  which require the  measurement of financial  position
and operating results in terms of historical dollar amounts without  considering
the  changes  in the  relative  purchasing  power  of  money  over  time  due to
inflation.  The impact of inflation is reflected in the increased  cost of First
Banking Center's  operations.  Unlike  industrial  companies,  nearly all of the
assets and  liabilities  of First  Banking  Center are monetary in nature.  As a
result,  interest  rates  have  a  greater  impact  on  First  Banking  Center's
performance  than do the effects of general levels of inflation.  Interest rates
do not necessarily move in the same direction or to the same extent as the price
of goods and services.

Forward Looking  Statements- Safe Harbor Statement under the Private  Securities
Litigation Reform Act of 1995

This report contains certain  forward-looking  statements  within the meaning of
Section  27A of the  Securities  Act of 1933,  as amended and Section 21E of the
Securities  Exchange Act of 1934, as amended.  First Banking Center intends such
forward-looking  statements  to be covered  by the safe  harbor  provisions  for
forward-looking  statements  contained in the Private  Securities  Reform Act of
1995,  and is  including  this  statement  for  purposes  of these  safe  harbor
provisions.  Forward-looking statements,  which are based on certain assumptions
and describe First Banking  Center's future plans,  strategies and  expectations
are generally  identifiable by use of the words "believe,"  "expect,"  "intend,"
"anticipate,"  "estimate,"  "project"  or  similar  expressions.  First  Banking
Center's  ability to predict  results  or the actual  effect of future  plans or
strategies is inherently uncertain.  Factors which could have a material adverse
affect on First Banking Center's  operations and future prospects  include,  but
are not limited to, changes in: interest  rates,  general  economic  conditions,
legislative/regulatory  changes,  monetary  and  fiscal  policies  of  the  U.S.
Government,  including  policies of the U.S.  Treasury  and the Federal  Reserve
Board, the quality or composition of the loan or investment  portfolios,  demand
for loan products, deposit flows, competition,  demand for financial services in
our market area, our implementation of new technologies,  First Banking Center's
ability to develop  and  maintain  secure and  reliable  electronic  systems and
accounting  principles,  policies and guidelines.  These risks and uncertainties
should be considered in evaluating forward-looking statements and undue reliance
should not be placed on such statements.

Current Accounting Developments

In July 2001, the Financial  Accounting  Standards  Board issued  Statement 141,
Business  Combinations and Statement 142, Goodwill and Other Intangible  Assets.
Statement  141  eliminates  the  pooling  method  for  accounting  for  business
combinations;  requires  that  intangible  assets that meet certain  criteria be
reported separately from goodwill; and requires negative goodwill arising from a
business  combination  to be recorded as an  extraordinary  gain.  Statement 142
eliminates  the  amortization  of  goodwill  and  other   intangibles  that  are
determined  to have an  indefinite  life;  and  requires,  at a minimum,  annual
impairment tests for goodwill and other intangible assets that are determined to
have an indefinite life. For the Company, the provisions of Statement 142 became
effective  January 1, 2002 and did not have a material  impact on the  Company's
financial statements.
The Financial  Accounting  Standards Board has issued Statement 143,  Accounting
for  Asset  Retirement   Obligations  and  Statement  144,  Accounting  for  the
Impairment  or Disposal of  Long-Lived  Assets.  Statement 143 requires that the
fair value of a liability  for an asset  retirement  obligation be recognized in
the period in which it is incurred if a reasonable estimate of fair value can be
made.  The  associated  asset  retirement  costs are  capitalized as part of the
carrying amount of the long-lived asset. Statement 144 supersedes FASB Statement
121 and the accounting and reporting provisions of APB Opinion No. 30. Statement
144 establishes a single  accounting model for long-lived  assets to be disposed
of by sale which includes  measuring a long-lived  asset  classified as held for
sale at the lower of its  carrying  amount or its fair  value less costs to sell
and to  cease  depreciation/amortization.  For the  Company,  the  provision  of
Statement 143 is effective January 1, 2003.  Implementation of this Statement is
not expected to have a material  impact on the Company's  financial  statements.
For the Company,  the  provisions of Statement 144 became  effective  January 1,
2002 and did not have a material impact on the Company's financial statements.

Results of operations
Net Interest Income

Net interest income is the difference  between interest income and fees on loans
and interest expense,  and is the largest  contributing factor to net income for
the  Company.  All  discussions  of rate are on a  tax-equivalent  basis,  which
accounts for income earned on  securities  that are not fully subject to federal
taxes.  Net interest  income was $9.8 million and $8.8 million for June 30, 2002
and June 30, 2001  respectively.  Net interest income as a percentage of average
earning  assets  (net  interest  margin)  was 4.79% and 4.80% for the six months
ended 2002 and 2001 respectively.

The  following  table  summarizes  the  changes  and  reasons for the changes in
interest income and fees on loans during 2002 and 2001. The decrease in interest
income  and fees on loans as of June 30,  2002 was due to  decreased  yields  on
earning assets. The increase in interest income and fees on loans as of June 30,
2001 was due primarily to increased average earning assets.
Dollar/rate change
                                                        For the six months ended:                   For the six months ended:
                                                                 June 30,                                     June 30,
                                                        2002                 2001                   2002                2001
                                                  -------------------------------------       ------------------------------------
                                                          (Dollars in millions)
Interest income                                         $14.7                $16.8                 ($2.1)                $1.5
Earning assets (Average balances)                      $429.4               $384.3                 $45.1                $19.8
Yield on earning assets                                 6.83%                8.77%                 -1.94%               0.35%
The  following  table  summarizes  the  changes  and  reasons for the changes in
interest expense for the six months ended June 30, 2002 and 2001. As of June 30,
2002 average balances outstanding increased, however, rates paid for liabilities
decreased  causing a decrease  in  interest  expense.  The  increase in interest
expense  as of June 30,  2001  was a  result  of  average  balances  outstanding
increasing.
Dollar/rate change
                                                        For the six months ended:                   For the six months ended:
                                                                  June 30,                                      June 30,
                                                        2002                 2001                   2002                2001
                                                  -------------------------------------      --------------------------------------
                                                          (Dollars in millions)
Interest expense                                         $4.4                 $7.6                 ($3.2)                $0.5
Interest bearing liabilities (Average balances)        $349.7               $320.7                 $29.0                $16.6
Cost of interest bearing liabilities                    2.50%                4.75%                 -2.25%               0.09%
The major component of interest income and fees on loans is the income generated
by loans.  The table below  summarizes the income,  average balance and yield on
loans for 2002 and 2001.
Dollar/rate change
                                                       For the six months ended:                     For the six months ended:
                                                                June 30,                                      June 30,
                                                       2002                  2001                    2002               2001
                                                  -------------------------------------      --------------------------------------
                                                          (Dollars in millions)
Interest income                                         $12.8                $14.8                 ($2.0)                $1.6
Loans (Average balances)                               $359.7               $323.9                 $35.8                $20.0
Yield on loans                                          7.12%                 9.15%                -2.03%               0.45%
The major  components of interest  expense are interest paid on  Certificates of
Deposit (Time Deposits) and on Money Market Deposits. The tables below summarize
the expense,  average  balance and rates on these  components for 2002 and 2001.
The decrease in interest expense on Time Deposits was a result of an increase in
average  balances,  while rates paid decreased from 4.8% to 2.9%, as of June 30,
2002. The decrease in interest  expense on Money Market Deposits was a result of
an increase in average  balances,  while rates paid decreased from 4.5% to 1.4%,
as of June 30, 2002.
Dollar/rate change
                                                       For the six months ended:                     For the six months ended:
                                                                June 30,                                      June 30,
     Time deposits                                     2002                  2001                    2002               2001
                                                  -------------------------------------      --------------------------------------
                                                          (Dollars in millions)
Interest expense                                         $2.5                 $4.1                 ($1.6)                $0.4
Time deposits (Average balances)                       $175.1               $172.4                  $2.7                 $2.1
Cost of time deposits                                   2.91%                4.76%                 -1.85%               0.38%
Dollar/rate change
                                                       For the six months ended:                     For the six months ended:
                                                                June 30,                                      June 30,
     Money Market deposits                             2002                    2001                  2002               2001
                                                  -------------------------------------      --------------------------------------
                                                          (Dollars in millions)
Interest expense                                         $0.8                 $2.2                 ($1.4)                $0.1
Money Market deposits (Average balances)               $115.8               $100.2                 $15.6                $14.7
Cost of Money Market deposits                           1.36%                4.45%                 -3.09%              -0.35%
Non-interest income

Non-interest  income  increased  $358 thousand or 22.7% as of June 30, 2002. The
increase  came in  primarily  two areas.  Service  charges  on deposit  accounts
increased  $172  thousand  as the number of  accounts  grew and charges for some
services were increased.  Other income  increased $186 thousand due to brokerage
services, visa debit card income, and miscellaneous investment income.

Non-interest expense

Non-interest expense increased $404 thousand or 6% as of June 30, 2002. Salaries
and benefits accounted for $362 thousand.  The increase in salaries and benefits
is due to normal wage increases and increased health insurance costs.  Equipment
expense  increased  $77  thousand  due  primarily  to  increases  in repair  and
maintenance.  Data  processing  costs  increased  $78  thousand due to increased
volumes and additional  services used.  Other expenses  decreased $128 thousand.
This is the result of cost control management.

Item 3.  Quantitative and Qualitative Disclosures about Market Risk

First Banking Center,  like other financial  institutions,  is subject to direct
and  indirect  market risk.  Direct  market risk exists from changes in interest
rates.  First  Banking  Center's  net income is  dependent  on its net  interest
income.  Net interest  income is susceptible to interest rate risk to the degree
that  interest-bearing  liabilities  mature or reprice on a different basis than
interest-earning  assets.  When  interest-bearing  liabilities mature or reprice
more quickly  than  interest-earning  assets in a given  period,  a  significant
increase in market rates of interest could adversely affect net interest income.

Similarly,  when  interest-earning  assets  mature or reprice  more quickly than
interest-bearing liabilities,  falling interest rates could result in a decrease
in net income.
In an attempt to manage its  exposure to changes in interest  rates,  management
monitors  First  Banking  Center's  interest  rate  risk.  The   Asset/Liability
Committee  meets quarterly to review First Banking  Center's  interest rate risk
position  and   profitability,   and  to  make  or  recommend   adjustments  for
consideration  by the Board of  Directors.  Management  also  reviews the Bank's
securities portfolio,  formulates investment strategies, and oversees the timing
and   implementation  of  transactions  to  assure  attainment  of  the  Board's
objectives in the most effective manner.  Notwithstanding First Banking Center's
interest rate risk management  activities,  the potential for changing  interest
rates is an uncertainty that can have an adverse effect on net income.

In adjusting  First Banking  Center's  asset/liability  position,  the Board and
management  attempt to manage First  Banking  Center's  interest rate risk while
maintaining or enhancing net interest margins. At times,  depending on the level
of general  interest rates, the  relationship  between  long-term and short-term
interest  rates,  market  conditions  and  competitive  factors,  the  Board and
management  may decide to increase  First  Banking  Center's  interest rate risk
position  somewhat in order to increase its net interest  margin.  First Banking
Center's  results of operations  and net portfolio  values remain  vulnerable to
increases  in  interest  rates and to  fluctuations  in the  difference  between
long-term and short-term interest rates.

One approach  used to quantify  interest  rate risk is the net  portfolio  value
("NPV") analysis.  In essence,  this analysis  calculates the difference between
the present  value of  liabilities  and the present value of expected cash flows
from assets and off-balance-sheet contracts. The most recent NPV analysis, as of
June 30, 2002, projects that net portfolio value would decrease by approximately
2.71% if  interest  rates  would  rise 200 basis  points and would  decrease  by
approximately  1.17% if interest rates would rise 100 basis points over the next
year. It projects an increase in net portfolio value of  approximately  4.94% if
interest rates would drop 200 basis points and  approximately  2.37% if interest
rates would drop 100 basis points. Both simulations are within board-established
policy  limits.  The Company has not  experienced  any  material  changes to its
market risk position since December 31, 2001, as disclosed in the Company's 2001
Form 10K Annual Report.  First Banking Center's policy is to limit the effect of
a 200 basis  point rate  shock to plus or minus 20% of  projected  net  interest
income and to minus 35% of the market value of portfolio equity.

First  Banking  Center does not  currently  engage in trading  activities or use
derivative   instruments  to  control  interest  rate  risk.  Even  though  such
activities may be permitted  with the approval of the Board of Directors,  First
Banking  Center does not intend to engage in such  activities  in the  immediate
future.

Interest rate risk is the most  significant  market risk affecting First Banking
Center.  Other types of market risk, such as foreign currency exchange rate risk
and  commodity  price risk,  do not arise in the normal  course of First Banking
Center's business activities.
Part II-OTHER INFORMATION
Item 1.  Legal Proceedings

         None

Item 2.  Changes in Securities

         None

Item 3.  Defaults upon Senior Securities

         None

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

          A. The  Corporation  held its Annual Meeting of  Shareholders on April
             16, 2002.

          B. Votes cast for the  election of four  directors  to serve until the
             2005 Annual Meeting of Shareholders are as follows:
Director                        For                 Withhold         Against
Brantly Chappell                1,203,742             518            0
                  Melvin W. Wendt                 1,204,110             150            0
                  Charles R. Wellington           1,202,041           2,219            0
                  Robert Fait                     1,202,808           1,452            0

                  The continuing Directors of the
                  Corporation are as follows:

                  John S. Smith
                  John M. Ernster
                  Richard McKinney
                  Keith Blumer
                  David Boilini
                  Thomas Laken, Jr.
                  Daniel T. Jacobson
Item 5.  Other Information

         None

Item 6.  Exhibits and Reports on Form 8-K

         None
FIRST BANKING CENTER, INC AND SUBSIDIARIES

                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1943, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                           First Banking Center, Inc.

August 2, 2002                              _________________________
Date                                        Brantly Chappell
                                            Chief Executive Officer

August 2, 2002                              __________________________
Date                                        James Schuster
                                            Chief Financial Officer