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U. S. SECURITIES AND EXCHANGE COMMISSION


WASHINGTON, D.C. 20549





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FORM 10-Q





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(Mark One)





|x |  | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- |  | ---------------------------------------------------------------------------------




For the Quarterly Period Ended September 30, 2002





OR





| ̈ |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
|- |  | ----------------------------------------------------------------------------------------------------------




For the Transition Period from
            to





Commission File Number 33-76644





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COMMUNITYCORP


(Exact name of registrant as specified in its charter)





South Carolina

57-1019001(State or other jurisdiction of incorporation)

(I.R.S. Employer Identification No.)





1100 N. Jefferies Boulevard


Walterboro, SC 29488


(Address of principal executive offices, including zip code)





(843) 549-2265


(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 the date of this filing.





274,529 shares of
common stock, $5 par value, as of October 31, 2002





PAGE 1 OF 15


EXHIBIT INDEX ON PAGE 2





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COMMUNITYCORP





Index





Page No.PART I.    FINANCIAL INFORMATIONItem 1.

Financial Statements (Unaudited)Condensed Consolidated Balance SheetsSeptember 30, 2002 and December 31, 2001

3Condensed Consolidated Statements of IncomeNine months ended September 30, 2002 and 2001 and Three months ended September 30, 2002 and 2001

4Condensed Consolidated Statements of Shareholders Equity and Comprehensive IncomeNine months ended September 30, 2002 and 2001

5Condensed Consolidated Statements of Cash FlowsNine months ended September 30, 2002 and 2001

6Notes to Condensed Consolidated Financial Statements

7-8Item 2.

Managements Discussion and Analysis of Financial Condition and Results of Operations

9-13Item 4.

Controls and Procedures

14PART II.    OTHER INFORMATIONItem 6.

Exhibits and Reports on Form 8-K

15(a)    
Exhibits

15(b)    
Reports on Form 8-K

15Signature

16Certifications

17-18




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COMMUNITYCORP





Condensed Consolidated Balance Sheets





September 30, 2002


December 31, 2001(Unaudited)Assets:Cash and cash equivalents:Cash and due from banks

$
4,503,419


$
3,841,132Federal funds sold and securities purchased under agreements to resell


15,396,000



18,062,000Total cash and cash equivalents


19,899,419



21,903,132Time deposits with other banks


299,000



299,000Investment securities:Securities available-for-sale


14,463,074



11,343,473Nonmarketable equity securities


332,375



330,375Securities held-to-maturity (estimated market value of $3,182,751 and $3,530,683 at September 30, 2002 and
December 31, 2001, respectively)


3,055,902



3,499,225Total investment securities


17,851,351



15,173,073Loans receivable


76,113,112



71,358,930Less allowance for loan losses


(1,298,751
)


(1,231,051
)Loans, net


74,814,361



70,127,879Accrued interest receivable


870,287



911,811Premises, furniture & equipment, net


2,097,994



2,013,147Other assets


433,809



422,126Total assets

$
116,266,221


$
110,850,168Liabilities and Shareholders Equity:Liabilities:Deposits:Noninterest-bearing

$
12,655,881


$
9,230,016Interest-bearing


90,814,830



89,190,295103,470,711



98,420,311Short-term borrowings


310,000



560,000Accrued interest payable


471,481



717,570Other liabilities


129,758



150,176Total liabilities


104,381,950



99,848,057Shareholders Equity:Preferred stock, $5 par value, 3,000,000 shares authorized and unissued






Common stock, $5 par value, 3,000,000 shares authorized, 300,000 shares issued and outstanding


1,500,000



1,500,000Capital surplus


1,731,708



1,731,708Accumulated other comprehensive income


149,106



51,132Retained earnings


9,610,128



8,648,977Treasury stock (25,471 shares in 2002 and 21,594 shares in 2001)


(1,106,671
)


(929,706
)Total shareholders equity


11,884,271



11,002,111Total liabilities and shareholders equity

$
116,266,221


$
110,850,168





See notes to condensed consolidated financial statements




3




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COMMUNITYCORP





Condensed Consolidated Statements of Income


(Unaudited)





Nine Months Ended September
30,

Three Months Ended September
30,2002

2001

2002

2001Interest income:Loans, including fees

$
4,437,450

$
4,813,491

$
1,502,681

$
1,607,171Securities


538,676


619,965


175,244


163,520Other interest income


250,416


649,616


84,912


170,404Total


5,226,542


6,083,072


1,762,837


1,941,095Interest expense:Deposit accounts


2,041,371


3,168,829


630,153


981,175Other interest expense


3,274


16,374


995


3,8992,044,645


3,185,203


631,148


985,074Net interest income


3,181,897


2,897,869


1,131,689


956,021Provision for loan losses


240,000


192,000


90,000


50,000Net interest income after provision for loan losses


2,941,897


2,705,869


1,041,689


906,021Other operating income:Service charges


270,712


255,768


95,586


100,704Other income


87,276


96,782


29,227


29,582Total


357,988


352,550


124,813


130,286Other operating expenses:Salaries and benefits


852,751


809,093


291,105


270,114Net occupancy expense


118,861


117,364


43,277


43,248Equipment expense


194,726


192,979


64,308


65,049Other operating expenses


477,450


530,806


163,499


158,737Total


1,643,788


1,650,242


562,189


537,148Income before taxes


1,656,097


1,408,177


604,313


499,159Income tax provision


531,099


445,900


197,000


163,999Net income

$
1,124,998

$
962,277

$
407,313

$
335,160Earnings per share:Weighted average common shares outstanding


277,134


280,710


275,567


279,721Net income per common share

$
4.06

$
3.43

$
1.48

$
1.20





See notes to condensed consolidated financial statements







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COMMUNITYCORP





Condensed Consolidated Statement of Shareholders Equity and
Comprehensive Income


for the nine months ended September 30, 2002 and 2001


(Unaudited)





Common Stock

Capital Surplus

Accumulated Other Comprehensive Income


Retained Earning


Treasury Stock


TotalShares

AmountBalance, December 31, 2000

300,000

$
1,500,000

$
1,731,708

$
(71,480
)

$
7,500,834


$
(781,206
)

$
9,879,856Cash dividends declared$.55 per share














(154,938
)






(154,938
)Net income for the period














962,277







962,277Other comprehensive income, net of taxes










172,377











172,377Comprehensive Income






















1,134,654Purchase of treasury Stock


















(90,000
)


(90,000
)Balance, September 30, 2001

300,000

$
1,500,000

$
1,731,708

$
100,897


$
8,308,173


$
(871,206
)

$
10,769,572Balance, December 31, 2001

300,000

$
1,500,000

$
1,731,708

$
51,132


$
8,648,977


$
(929,706
)

$
11,002,111Cash dividends declared$.59 per share














(163,847
)






(163,847
)Net income for the period














1,124,998







1,124,998Other comprehensive income, net of taxes










97,974











97,974Comprehensive Income






















1,222,972Purchase of treasury stock


















(176,965
)


(176,965
)Balance, September 30, 2002

300,000

$
1,500,000

$
1,731,108

$
149,106


$
9,610,128


$
(1,106,671
)

$
11,884,271





See notes to condensed consolidated financial statements




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COMMUNITYCORP





Condensed Consolidated Statements of Cash Flows


(Unaudited)





Nine Months Ended September
30,2002


2001Cash flows from operating activities:Net income

$
1,124,998


$
962,277Adjustments to reconcile net income to net cash provided by operating activities:Depreciation


144,091



140,961Provision for possible loan losses


240,000



192,000Amortization less accretion on investments


27,690



11,308Amortization of deferred loan costs


49,951



58,971Gain on sale of premises and equipment


(13,268
)


(Increase) decrease in interest receivable


41,524



182,938Increase (decrease) in interest payable


(246,090
)


36,238(Increase) decrease in other assets


(65,285
)


42,400Increase (decrease) in other liabilities


(20,418
)


43,698Net cash provided by operating activities


1,283,193



1,670,791Cash flows from investing activities:Net increase in loans to customers


(4,976,433
)


(1,696,184
)Purchases of securities available-for-sale


(15,707,734
)


(11,323,613
)Maturities of securities available-for-sale


12,712,092



19,208,759Maturities of securities held-to-maturity


441,251



958,505Proceeds from disposal of premises and equipment


15,702



Purchases of premises and equipment


(231,372
)


(11,697
)Net cash provided (used) by investing activities


(7,746,494
)


7,135,770Cash flows from financing activities:Net increase in demand accounts


5,050,400



4,652,982(Decrease) increase in short-term borrowings


(250,000
)


(150,000
)Dividends paid


(163,847
)


(154,938
)Purchase of treasury stock


(176,965
)


(90,000
)Net cash provided by financing activities


4,459,588



4,258,044Net increase in cash and cash equivalents


(2,003,713
)


13,064,605Cash and cash equivalents, beginning of period


21,903,132



8,825,660Cash and cash equivalents, end of period

$
19,899,419


$
21,890,265Cash paid during the period for:Income taxes

$
755,787


$
494,588Interest

$
2,290,734


$
3,148,965





See notes to condensed consolidated financial statements




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COMMUNITYCORP





Notes to Condensed Consolidated Financial Statements


(Unaudited)





NOTE 1BASIS OF PRESENTATION





The accompanying consolidated financial statements have been prepared in accordance with the requirements for interim financial
statements and, accordingly, they are condensed and omit disclosures, which would substantially duplicate those contained in the most recent annual report to shareholders. The financial statements as of September 30, 2002 and for the interim periods
ended September 30, 2002 and 2001 are unaudited and, in the opinion of management, include all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation. The financial information as of December 31, 2001 has
been derived from the audited financial statements as of that date. For further information, refer to the financial statements and the notes included in Communitycorps 2001 Annual Report.





NOTE 2COMPREHENSIVE INCOME





The components of other
comprehensive income and related tax effects are as follows:





Pre-tax Amount

(Expense) Benefit


Net-of-tax AmountFor the Nine Months Ended September 30, 2002:Unrealized gains (losses) on securities available-for-sale

$
149,577

$
(51,603
)

$
97,974Plus: reclassification adjustment for gains (losses) realized in net income









Net unrealized gains (losses) on securities

$
149,577

$
(51,603
)

$
97,974Other comprehensive income

$
149,577

$
(51,603
)

$
97,974Pre-tax Amount

(Expense) Benefit


Net-of-tax AmountFor the Nine Months Ended September 30, 2001:Unrealized gains (losses) on securities available-for-sale

$
261,626

$
(89,249
)

$
172,377Plus: reclassification adjustment for gains (losses) realized in net income









Net unrealized gains (losses) on securities


261,626


(89,249
)


172,377Other comprehensive income

$
261,626

$
(89,249
)

$
172,377




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COMMUNITYCORP





Notes to Condensed Consolidated Financial Statements


(Unaudited)





NOTE 2COMPREHENSIVE INCOMEcontinued





Pre-tax Amount

(Expense) Benefit


Net-of-tax AmountFor the Three Months Ended September 30, 2002:Unrealized gains (losses) on securities available-for-sale

$
59,259

$
(20,444
)

$
38,815Plus: reclassification adjustment for gains (losses) realized in net income









Net unrealized gains (losses) on securities


59,259


(20,444
)


38,815Other comprehensive income

$
59,259

$
(20,444
)

$
38,815Pre-tax Amount

(Expense) Benefit


Net-of-tax AmountFor the Three Months Ended September 30, 2001:Unrealized gains (losses) on securities available-for-sale

$
74,824

$
(24,872
)

$
49,952Plus: reclassification adjustment for gains (losses) realized in net income









Net unrealized gains (losses) on securities


74,824


(24,872
)


49,952Other comprehensive income

$
74,824

$
(24,872
)

$
49,952





Accumulated other comprehensive income consists solely of the unrealized gain on
securities available for sale, net of the deferred tax effects.




8




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COMMUNITYCORP





Item 2.    Managements Discussion and Analysis of Financial
Condition





The following is a discussion of our financial condition as of September 30, 2002 compared to December 31, 2001, and
the results of operations for the three and nine months ended September 30, 2002 compared to the three and nine months ended September 30, 2001. These comments should be read in conjunction with our condensed consolidated financial statements and
accompanying footnotes appearing in this report.





Results of Operations





Net Interest Income





For the nine
months ended September 30, 2002, net interest income increased $284,028 or 9.80%, as compared to the same period in 2001. Interest and fees on loans decreased $376,041 or 7.81% to $4,437,450 for the nine months ended September 30, 2002 as compared
to the same period in 2001. Other interest income, which includes interest on federal funds sold, decreased $399,200, or 61.45% to $250,416 for the nine months ended September 30, 2002 when compared to the same period in 2001. Interest income on
securities decreased $81,289, or 13.11%, to $538,676 for the nine months ended September 30, 2002 when compared to the same nine months ended September 30, 2001. Although the volume of loans and securities increased during the nine months ended
September 30, 2002, the decline in interest rates led to the overall decrease in interest earned on these assets. Interest expense on deposits decreased 35.57% from $3,168,829 for the nine months ended September 30, 2001 to $2,041,371 for the same
period ended September 30, 2002. This decrease was also attributable to the decline in the cost of funds. The net interest margin realized on earning assets decreased from 3.64% for the nine months ended September 30, 2001 to 2.49% for the same
period in 2002. The interest rate spread decreased from 2.90% as of September 30, 2001 to 1.78% at September 30, 2002.





Net interest
income increased $175,668, or 18.37%, to $1,131,689 for the quarter ending September 30, 2002 when compared to the same quarter ended September 30, 2001. Interest on loans and fees decreased $104,490 or 6.50% to $1,502,681 for the quarter ended
September 30, 2002 when compared to the same period in 2001. Other interest income decreased $85,492, or 50.17% from $170,404 for the quarter ended September 30, 2001 to $84,912 for the quarter ended September 30, 2002. The interest income on
securities for the quarter ending September 30, 2002 increased $11,724, or 7.17% to $175,244 when compared to the same period in 2001. Interest expense decreased $353,926 to $631,148 for the quarter ended September 30, 2002 when compared to the same
period in 2001. This decrease in the cost of funds during the quarter led to the increase in net interest income when comparing the two quarters. The net interest margin realized on earning assets increased from 3.5% for the quarter ended September
30, 2001 to 4.06% for the quarter ended September 30, 2002. The interest rate spread increased to 3.62% for the quarter ended September 30, 2002 from 2.69% for the quarter ended September 30, 2001.





Provision and Allowance for Loan Losses





The provision for loan losses is the charge to operating earnings that management feels is necessary to maintain the allowance for possible loan losses at an adequate level. For the nine months ended September 30, 2002, the provision
charged to expense was $240,000. This was $48,000 more than for the comparable period in 2001. The provision charged to expense for the quarter ended September 30, 2002 was $90,000 as compared to $50,000 for the same quarter a year ago. The
increases in the provision for the quarter and the nine months are attributable to growth in the loan portfolio and an increase in charged-off loans. Based on present information, management believes the allowance for loan losses is adequate at
September 30, 2002 to meet presently known and inherent risks in the loan portfolio. The allowance for loan losses is 1.71% of total loans at September 30, 2002, as compared to 1.77% at September 30, 2001.





Noninterest Income





Noninterest
income during the nine months ended September 30, 2002 was $357,988 an increase of $5,438 or 1.54% from the comparable period in 2001. Service charges on deposit accounts increased $14,944 or 5.84% from the period ended September 30, 2001 to
$270,712 for the period ended September 30, 2002. Other income decreased 9.82% to $87,276 for the nine months ended September 30, 2002 when compared to the same period ended September 30, 2001.





For the quarter ended September 30, 2002, noninterest income decreased $5,473 or 4.20% over the same period in 2001. This decrease is primarily due to service charges, which decreased 5.08%
from the quarter ended September 30, 2001 to $95,586 for the quarter ended September 30, 2002.




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##### Table of Contents

COMMUNITYCORP





Item 2.    Managements Discussion and Analysis of Financial Conditioncontinued





Noninterest Expense





Total noninterest expense for the nine months ended September 30, 2002 was
$1,643,788, or .39%, lower than the nine months ended September 30, 2001. Salaries and employee benefits increased from $809,093 for the nine months ended September 30, 2001 to $852,751 for the nine months ended September 30, 2002. This increase is
primarily attributable to the addition of several full time employees and a loan officer. Other operating expenses decreased $53,356, or 10.05%, to $477,450 for the nine months ended September 30, 2002 when compared to the same period in 2001.
Included in 2001 other operating expenses was $20,983 related to the writedown on a parcel of real estate. There were no writedowns in 2002.





For the quarter ended September 30, 2002, noninterest expense increased $25,041, or 4.66%, over the same period in 2001. Salaries and employee benefits increased $20,991, or 7.77%, from $270,114 for the quarter ended September 30,
2001 to $291,105 for the quarter ended September 30, 2002. The increase was due to the same reasons discussed above.





Income
Taxes





The income tax provision for the nine months ended September 30, 2002 was $531,099 as compared to $445,900 for the same
period in 2001. This increase was primarily as a result of a increase in income before taxes. The effective tax rates were 32.07% and 31.67% for the nine months ended September 30, 2002 and September 30, 2001, respectively. The effective tax rates
were 32.60% and 32.86% for the quarter ended September 30, 2002 and September 30, 2001, respectively.





Net Income





The combination of the above factors resulted in net income for the nine months ended September 30, 2002 of $1,124,998 as compared
to $962,277 for the same period in 2001. This represents a increase of $162,721, or 16.91%, over the same period in 2001. Net income for the quarter ended September 30, 2002 was $407,313, or 21.53% higher than for the same period in 2001. The
increase in net interest income is primarily due to the decrease in the cost of funds.





Assets and Liabilities





During the first nine months of 2002, total assets increased $5,416,053, or 4.89% when compared to December 31, 2001. Total
investment securities increased $2,678,278 from December 31, 2001 to $17,851,351 at September 30, 2002. Loans increased $4,754,182, or 6.66%, to $76,113,112 at September 30, 2002. Total deposits also increased by 5.13%, or $5,050,400, from December
31, 2001 to $103,470,711 at September 30, 2002. Noninterest-bearing deposits increased 37.11% from December 31, 2001 to $12,655,881. Interest-bearing deposits increased $1,624,535, or 1.82%, to $90,814,830 at September 30, 2002. This increase was
attributable to additional funds received from Charleston County and to normal growth of the Bank.




10




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##### Table of Contents

COMMUNITYCORP





Item 2.    Managements Discussion And Analysis Of Financial Conditioncontinued





Loans





The demand for loans was strong in the Bank of Walterboro marketplace during the first nine
months of 2002. Gross loans increased $4,754,182 or 6.66% during the period. Balances within the major loans receivable categories as of September 30, 2002 and December 31, 2001 are as follows:





September 30, 2002

December 31, 2001Real estate  construction

$
5,423,694

$
6,312,748Real estate  mortgage


30,102,503


24,844,649Commercial and industrial


27,397,011


25,868,360Consumer and other


13,189,904


14,333,173$
76,113,112

$
71,358,930





Risk Elements in the Loan Portfolio





The following is a summary of risk elements in the loan portfolio:





September 30,


December 312002

2001Loans: Nonaccrual loans

$
2,985,548

$
1,096,532Accruing loans more than 90 days past due

$


$
3,000Loans identified by the internal review mechanism:Criticized

$
136,433

$
Classified

$
3,597,648

$
1,764,786





Activity in the Allowance for Loan Losses is as follows:





September 30,2002


2001Balance, January 1,

$
1,231,051


$
1,173,832Provision for loan losses for the period


240,000



192,000Net loans (charged-off) recovered for the period


(172,300
)


(143,194
)Balance, end of period

$
1,298,751


$
1,222,638Gross loans outstanding, end of period

$
76,113,112


$
69,288,742Allowance for loan losses to loans outstanding


1.71
%


1.77
%







11




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##### Table of Contents




COMMUNITYCORP





Item 2.    Managements Discussion And Analysis Of Financial Conditioncontinued





Deposits





Total deposits increased $5,050,400 or 5.13% from
December 31, 2001. The largest change was an increase in savings deposits. Savings deposits increased $6,514,743 or 38.74% at September 30, 2002. Certificates of deposit decreased $6,032,878 or 10.46% to at September 30, 2002. Expressed in
percentages, interest-bearing deposits increased 7.78%. Noninterest-bearing demand deposits increased $3,425,865 or 37.12%. The increase in noninterest-bearing demand deposits was attributable to normal growth of the Bank. The increase in savings
deposits is partially attributable to the movement of funds from certificates of deposit to savings deposits anticipating rate increases. The decrease in certificates of deposits is also partially attributable to the withdrawal of certain Colleton
County funds.





Balances within the major deposit categories as of September 30, 2002 and December 31, 2001 are as follows:





September 30, 2002

December 31, 2001Noninterest-bearing demand deposits

$
12,655,881

$
9,230,016Interest-bearing demand deposits


15,834,800


14,692,130Savings deposits


23,330,160


16,815,417Certificates of deposit


51,649,870


57,682,748$
103,470,711

$
98,420,311





Liquidity





Liquidity needs are met by us through scheduled maturities of loans and investments on the asset side and through pricing policies on the liability side for interest-bearing deposit accounts. The level
of liquidity is measured by the loan-to-total funds ratio, which was at 73.34% at September 30, 2002 and 72.09% at December 31, 2001.





Securities available-for-sale, which totaled $14,463,074 at September 30, 2002, serves as a ready source of liquidity. The Company also has lines of credit available with correspondent banks to purchase federal funds. At September
30, 2002, unused lines of credit totaled $3,000,000.





Capital Resources





Total shareholders equity increased from $11,002,111 at December 31, 2001 to $11,884,271 at September 30, 2002. The increase of $882,160 is partially
attributed to earnings for the period of $1,124,998. Equity was negatively affected by the purchase of treasury stock of $176,965 during the period.





Bank holding companies, such as the Company, and their banking subsidiaries are required by banking regulators to meet certain minimum levels of capital adequacy, which are expressed in the form of certain ratios. Capital is
separated into Tier 1 capital (essentially common shareholders equity less intangible assets) and Tier 2 capital (essentially the allowance for loan losses limited to 1.25% of risk-weighted assets). The first two ratios, which are based on the
degree of credit risk in the Companys assets, provide the weighting of assets based on assigned risk factors and include off-balance sheet items such as loan commitments and stand-by letters of credit. The ratio of Tier 1 capital to
risk-weighted assets must be at least 4.0% and the ratio of total capital (Tier 1 capital plus Tier 2 capital) to risk-weighted assets must be at least 8.0%. The capital leverage ratio supplements the risk-based capital guidelines. Banks and bank
holding companies are required to maintain a minimum ratio of Tier 1 capital to adjusted quarterly average total assets of 3.0%.




12




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##### Table of Contents




COMMUNITYCORP





Item 2.    Managements Discussion And Analysis Of Financial Conditioncontinued





Capital Resourcescontinued





The following
table summarizes the Banks risk-based capital at September 30, 2002:





Shareholders equity

$
11,821,741Less: net unrealized gains on securities available-for-sale


149,577Tier 1 capital


11,672,164Plus: allowance for loan losses (1)


1,016,000Total capital

$
12,688,164Risk-weighted assets

$
80,971,000Risk-based capital ratiosTier 1 capital (to risk-weighted assets)


14.42
%Total capital (to risk-weighted assets)


15.67
%Tier 1 capital (to total average assets)


10.03
%





|(1) |  | limited to 1.25% of risk-weighted assets
|--- |  | ----------------------------------------




The Federal Reserve Board has similar requirements for bank holding companies. The Company is currently not subject to these requirements because the Federal Reserve guidelines contain an exemption for bank holding companies of less
than $150,000,000 in consolidated assets.





Off-Balance Sheet Risk





Through the operations of our Bank, we have made contractual commitments to extend credit in the ordinary course of our business activities. These commitments are legally binding agreements
to lend money to our customers at predetermined interest rates for a specified period of time. At September 30, 2002, we had issued commitments to extend credit of $5,469,000 and standby letters of credit of $446,000 through various types of
commercial lending agreements. We evaluate each customers credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by us upon extension of credit, is based on our credit evaluation of the borrower.
Collateral varies but may include accounts receivable, inventory, property, plant and equipment, commercial and residential real estate.





Regulatory Matters





The management of the Company is not aware of any current recommendations by regulatory
authorities which, if they were to be implemented, would have a material effect on liquidity, capital resources or operations.




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COMMUNITYCORP





Item 4.    Controls and Procedures





(a)    Based on their evaluation of the issuers disclosure controls and procedures (as defined in 17 C.F.R. Sections 240.13a-14(c) and
240.15d-14(c)) as of a date within 90 days prior to the filing of this quarterly report, the issuers chief executive officer and chief financial officer concluded that the effectiveness of such controls and procedures was adequate.





(b)    There were no significant changes in the issuers internal controls or in other factors that could
significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.




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COMMUNITYCORP





PART IIOTHER INFORMATION





Item 6.    Exhibits and Reports on Form 8-K





(a
)

Exhibits(b
)

Reports on Form 8-KNo reports on Form 8-K were filed during the quarter ended September 30, 2002.





Items 1, 2, 3, 4, and 5 are not applicable.




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COMMUNITYCORP





SIGNATURE





Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.





COMMUNITYCORP





By:

/s/    W. ROGER CROOKW. Roger Crook President &
Chief Executive Officer








Date: November 12, 2002



By:

/s/    GWEN P.
BUNTONGwen P. Bunton Chief Financial
Officer




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COMMUNITYCORP





CERTIFICATIONS





I, W. Roger Crook, certify that:





|1. |  | I have reviewed this quarterly report on Form 10-Q of Communitycorp;
|-- |  | --------------------------------------------------------------------




|2. |  | Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;
|-- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|3. |  | Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the
financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;
|-- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|4. |  | The registrants other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
|-- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|a) |  | designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is
made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;
|-- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|b) |  | evaluated the effectiveness of the registrants disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly
report (the Evaluation Date); and
|-- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|c) |  | presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;
|-- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------




|5. |  | The registrants other certifying officers and I have disclosed, based on our most recent evaluation, to the registrants auditors and the audit
committee of registrants board of directors (or persons performing the equivalent functions):
|-- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




| | a) |  | all significant deficiencies in the design or operation of internal controls which could adversely affect the registrants ability to record, process,
summarize and report financial data and have identified for the registrants auditors any material weaknesses in internal controls; and
| | -- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




| | b) |  | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal controls; and
| | -- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------




|6. |  | The registrants other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls
or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
|-- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




Date: November 12, 2002



/s/    W. ROGER
CROOKW. Roger Crook President and
Chief Executive Officer




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COMMUNITYCORP





CERTIFICATIONS





I, Gwendolyn P. Bunton, certify that:





|7. |  | I have reviewed this quarterly report on Form 10-Q of Communitycorp;
|-- |  | --------------------------------------------------------------------




|8. |  | Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;
|-- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|9. |  | Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the
financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;
|-- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|10. |  | The registrants other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|d) |  | designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is
made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;
|-- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|e) |  | evaluated the effectiveness of the registrants disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly
report (the Evaluation Date); and
|-- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|f) |  | presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;
|-- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------




|11. |  | The registrants other certifying officers and I have disclosed, based on our most recent evaluation, to the registrants auditors and the audit
committee of registrants board of directors (or persons performing the equivalent functions):
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




| | c) |  | all significant deficiencies in the design or operation of internal controls which could adversely affect the registrants ability to record, process,
summarize and report financial data and have identified for the registrants auditors any material weaknesses in internal controls; and
| | -- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




| | d) |  | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal controls; and
| | -- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------




|12. |  | The registrants other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls
or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




Date: November 12, 2002



/s/    GWEN P.
BUNTONGwen P. Bunton Vice President
and Cashier




18