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<p ALIGN="CENTER">UNITED STATES<br>
SECURITIES AND EXCHANGE COMMISSION<br>
Washington, DC 20549</p>
<p ALIGN="CENTER"></p>
<b>
<p ALIGN="CENTER">FORM 8-K</p>
</b>
<p ALIGN="CENTER">CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)<br>
OF THE SECURITIES EXCHANGE ACT OF 1934</p>
<p ALIGN="CENTER"></p>
<p ALIGN="CENTER">Date of Report (Date of earliest event reported) <u>January 9,
2008</p>
</u><b>
<p ALIGN="CENTER">CALVIN B. TAYLOR BANKSHARES, INC.<br>
</b>
(Exact name of registrant as specified in its charter)<br>
<p ALIGN="CENTER"></p>
	<p align="center"><u>Maryland</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	<u>000-50047</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;<u>52-1948274<br>
</u>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (State of incorporation)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Commission file number)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (IRS Employer
Identification No.)</p>
<p ALIGN="CENTER"></p>
<u>
<p ALIGN="CENTER">24 North Main Street, Berlin, Maryland 21811<br>
</u>
(Address of principal executive offices)</p>
<p ALIGN="CENTER"></p>
<u>
<p ALIGN="CENTER">(410) 641-1700<br>
</u>
(Registrant&#8217;s telephone number, including area code)</p>
<p ALIGN="CENTER"></p>
<p ALIGN="CENTER">N/A<br>
(Former Name or Former Address, if Changed Since Last Report)</p>
<p>Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (<u>see</u> General Instruction A.2. below):</p>
<p>[ ] Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)<br>
[ ] </a>Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)<br>
[ ] </a>Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<br>
[ ] </a>Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</p>
<p>&nbsp;</p>
<p style="page-break-after: always"></p>
<p>Section 4 &#8211; Matters Related to Accountants and Financial Statements</p>
<dir>
<p>Item 4.02 Non-reliance on Previously Issued Financial
				Statements or a Related Audit Report or Completed Interim
				Review.</p>
				<p ALIGN="JUSTIFY"></p>
</dir>
<p ALIGN="JUSTIFY">(a) Management and the board of directors of the Company
concluded on January 9, 2008, that its previously filed Annual Reports on Form
10-K and Quarterly Reports on Form 10-Q for the annual and quarterly periods
ended March 31, 2003 through September 30, 2007 should no longer be relied upon.
This results from the Company&#8217;s determination that the allowance for loan losses
was overstated as a result of provisions charged to earnings in years prior to
2003. The Company has not recorded provisions for loan losses since prior to
2003. Management determined that the balance in the allowance for loan losses
could not be supported given the Company&#8217;s loan loss history combined with an
analysis of probable losses in the current loan portfolio. A prior period
adjustment to re-value the allowance for loan losses has been recorded,
resulting in the restatement of balances previously reported for the annual and
quarterly periods ended March 31, 2003 through September 30, 2007. The
restatement affected balance sheet accounts including net loans, deferred income
taxes, and retained earnings. No restatement has been made to the Consolidated
Statements of Income for the annual and quarterly periods ended March 31, 2003
through September 30, 2007.</font><font SIZE="3" COLOR="#0000ff"> </p>
</font><font SIZE="3">
<p ALIGN="JUSTIFY"></p>
	<p ALIGN="JUSTIFY">In lieu of amending each applicable Quarterly Report on
	Form 10-Q and Annual Report on Form 10-K, the Company will provide select
	annual and quarterly balance sheet data in its Annual Report on Form 10-K
	for the year ended December 31, 2007 (the &quot;2007 Form 10-K&quot;), which the
	Company expects to file on or about March 17, 2008, showing the results of
	the prior period adjustment for each quarterly and annual period affected by
	the adjustment, from March 31, 2003 through September 30, 2007. Such
	selected financial data will be labeled as &quot;restated.&quot; The Management&#8217;s
	Discussion and Analysis of Financial Condition and Results of Operations
	section of the 2007 Form 10-K will also discuss the prior period adjustment.</p>
	<p ALIGN="JUSTIFY"></p>
	<p ALIGN="JUSTIFY">In addition, the 2007 Form 10-K will include a note to
	the audited financial statements and disclosure in the form of footnotes
	and/or discussion accompanying the restated data for all affected quarters
	and year ends, which will include the following information:</p>
	<dir>
		</font><font SIZE="2">
		<p ALIGN="JUSTIFY">The Company has determined that the allowance for
		loan losses was overstated as a result of provisions charged to earnings
		in years prior to 2003. The Company has experienced minimal loan losses,
		including in recent years and, as a result, has not recorded provisions
		for loan losses since prior to 2003. Management determined that the
		balance in the allowance for loan losses could not be supported given
		the Company&#8217;s loan loss history combined with an analysis of probable
		losses in the current loan portfolio. A prior period adjustment to
		re-value the allowance for loan losses has been recorded, resulting in
		the restatement of balances previously reported for years prior to 2007.
		</p>
		<p ALIGN="JUSTIFY"></p>
		<p ALIGN="JUSTIFY">No restatement has been made to the Consolidated
		Statements of Income for 2006 or 2005. In accordance with Paragraph 3 of
		Financial Accounting Standard No. 16, <i>Prior Period Adjustments</i>,
		no adjustment has been made to the estimate of loan losses in prior
		periods. In management&#8217;s opinion, had adjustments been made to prior
		period Consolidated Statements of Income, they would have been
		immaterial.</p>
		</font>
<p style="page-break-after: always"></p>
<font SIZE="3">
		<p ALIGN="JUSTIFY"></p>
	</dir>
	<p ALIGN="JUSTIFY">The footnote/disclosure will also include a table that
	details the accounts and balances that are affected by the restatement.</p>
	<p ALIGN="JUSTIFY"></p>
<p ALIGN="JUSTIFY">Management and the board of directors discussed with the
Company&#8217;s independent accountant both the amount of and the disclosure related
to the prior period adjustment. The Company&#8217;s independent accountant concurred
with management&#8217;s decision to record a prior period adjustment and with the
amount of and the disclosure related to that adjustment.</p>
<p>&nbsp;</p>
<p ALIGN="CENTER">SIGNATURES</p>
<p ALIGN="JUSTIFY">Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.</p>
<p ALIGN="JUSTIFY">&nbsp;</p>
<p ALIGN="JUSTIFY">&nbsp;</p>
<p ALIGN="JUSTIFY"></p>
<p><b>Calvin B. Taylor Bankshares, Inc.</b><u> </p>
</u>
<p ALIGN="JUSTIFY"></p>
<p ALIGN="JUSTIFY">&nbsp;</p>
<p ALIGN="JUSTIFY">&nbsp;</p>
<p ALIGN="JUSTIFY">Date: <u>February 29, 2008</u>_______ By:<u>/s/ Raymond M.
Thompson <br>
</u>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Raymond M. Thompson<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; President &amp; Chief Executive Officer</p>
<p ALIGN="JUSTIFY"></p>
<p ALIGN="JUSTIFY">&nbsp;</p>
<p ALIGN="JUSTIFY">&nbsp;</p>
<p ALIGN="JUSTIFY">Date: <u>February 29, 2008</u>_______ <u>/s/ Jennifer G.
Hawkins<br>
</u>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jennifer G. Hawkins<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Treasurer (Principal Financial Officer)</p>
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{"company-data": {"conformed-name": "TAYLOR CALVIN B BANKSHARES INC", "cik": "0001003986", "assigned-sic": "6022", "irs-number": "520505410", "state-of-incorporation": "MD", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-50047", "film-number": "08655313"}, "business-address": {"street1": "24 NORTH MAIN ST", "city": "BERLIN", "state": "MD", "zip": "21811", "phone": "4106411700"}, "mail-address": {"street1": "24 NORTH MAIN STREET", "city": "BERLIN", "state": "MD", "zip": "21811"}}
Form 8-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported)
January 9,
2008
CALVIN B. TAYLOR BANKSHARES, INC.
(Exact name of registrant as specified in its charter)
Maryland
000-50047
52-1948274
(State of incorporation)         (Commission file number)         (IRS Employer
Identification No.)
24 North Main Street, Berlin, Maryland 21811
(Address of principal executive offices)
(410) 641-1700
(Registrant's telephone number, including area code)
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (
see
General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Section 4 – Matters Related to Accountants and Financial Statements
Item 4.02 Non-reliance on Previously Issued Financial
				Statements or a Related Audit Report or Completed Interim
				Review.
(a) Management and the board of directors of the Company
concluded on January 9, 2008, that its previously filed Annual Reports on Form
10-K and Quarterly Reports on Form 10-Q for the annual and quarterly periods
ended March 31, 2003 through September 30, 2007 should no longer be relied upon.
This results from the Company's determination that the allowance for loan losses
was overstated as a result of provisions charged to earnings in years prior to
2003. The Company has not recorded provisions for loan losses since prior to
2003. Management determined that the balance in the allowance for loan losses
could not be supported given the Company's loan loss history combined with an
analysis of probable losses in the current loan portfolio. A prior period
adjustment to re-value the allowance for loan losses has been recorded,
resulting in the restatement of balances previously reported for the annual and
quarterly periods ended March 31, 2003 through September 30, 2007. The
restatement affected balance sheet accounts including net loans, deferred income
taxes, and retained earnings. No restatement has been made to the Consolidated
Statements of Income for the annual and quarterly periods ended March 31, 2003
through September 30, 2007.
In lieu of amending each applicable Quarterly Report on
	Form 10-Q and Annual Report on Form 10-K, the Company will provide select
	annual and quarterly balance sheet data in its Annual Report on Form 10-K
	for the year ended December 31, 2007 (the "2007 Form 10-K"), which the
	Company expects to file on or about March 17, 2008, showing the results of
	the prior period adjustment for each quarterly and annual period affected by
	the adjustment, from March 31, 2003 through September 30, 2007. Such
	selected financial data will be labeled as "restated." The Management's
	Discussion and Analysis of Financial Condition and Results of Operations
	section of the 2007 Form 10-K will also discuss the prior period adjustment.
In addition, the 2007 Form 10-K will include a note to
	the audited financial statements and disclosure in the form of footnotes
	and/or discussion accompanying the restated data for all affected quarters
	and year ends, which will include the following information:
The Company has determined that the allowance for
		loan losses was overstated as a result of provisions charged to earnings
		in years prior to 2003. The Company has experienced minimal loan losses,
		including in recent years and, as a result, has not recorded provisions
		for loan losses since prior to 2003. Management determined that the
		balance in the allowance for loan losses could not be supported given
		the Company's loan loss history combined with an analysis of probable
		losses in the current loan portfolio. A prior period adjustment to
		re-value the allowance for loan losses has been recorded, resulting in
		the restatement of balances previously reported for years prior to 2007.
No restatement has been made to the Consolidated
		Statements of Income for 2006 or 2005. In accordance with Paragraph 3 of
		Financial Accounting Standard No. 16,
Prior Period Adjustments
,
		no adjustment has been made to the estimate of loan losses in prior
		periods. In management's opinion, had adjustments been made to prior
		period Consolidated Statements of Income, they would have been
		immaterial.
The footnote/disclosure will also include a table that
	details the accounts and balances that are affected by the restatement.
Management and the board of directors discussed with the
Company's independent accountant both the amount of and the disclosure related
to the prior period adjustment. The Company's independent accountant concurred
with management's decision to record a prior period adjustment and with the
amount of and the disclosure related to that adjustment.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
Calvin B. Taylor Bankshares, Inc.
Date:
February 29, 2008
_______ By:
/s/ Raymond M.
Thompson
Raymond M. Thompson
President & Chief Executive Officer
Date:
February 29, 2008
_______
/s/ Jennifer G.
Hawkins
Jennifer G. Hawkins
Treasurer (Principal Financial Officer)