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U. S. SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549



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FORM 10-QSB



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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 March 31, 2007

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)



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|                                               |  |                                     
|---------------------------------------------- |  | ------------------------------------
|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)



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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 latest practicable date.

240,563 shares of common stock, $5 par value, as of May 11, 2007

Transitional Small Business Disclosure Format
(Check one):    Yes ̈No  x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.):    Yes ̈No  x



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COMMUNITYCORP



Index



|                                                                   |  |                                                                                                                                 |  |    
|------------------------------------------------------------------ |  | ------------------------------------------------------------------------------------------------------------------------------- |  | ---
|                                                                   |  | Page No.                                                                                                                       
|PART I. FINANCIAL INFORMATION                                      |  |                                                                                                                                
|                                                                   | 
|Item 1. Financial Statements (Unaudited)                           |  |                                                                                                                                
|                                                                   |  |                                                                                                                                
|                                                                   |  | Condensed Consolidated Balance Sheets - March 31, 2007 and December 31, 2006 (audited)                                          |  | 3  
|                                                                   |  |                                                                                                                                
|                                                                   |  | Condensed Consolidated Statements of Income - Three months ended March 31, 2007 and 2006                                        |  | 4  
|                                                                   |  |                                                                                                                                
|                                                                   |  | Condensed Consolidated Statements of Shareholders Equity and Comprehensive Income - Three months ended March 31, 2007 and 2006 |  | 5  
|                                                                   |  |                                                                                                                                
|                                                                   |  | Condensed Consolidated Statements of Cash Flows - Three months ended March 31, 2007 and 2006                                    |  | 6  
|                                                                   |  |                                                                                                                                
|                                                                   |  | Notes to Condensed Consolidated Financial Statements                                                                            |  | 7-8
|                                                                   | 
|Item 2. Managements Discussion and Analysis or Plan of Operations |  | 8-15                                                                                                                           
|                                                                   | 
|Item 3. Controls and Procedures                                    |  | 15                                                                                                                             
|                                                                   | 
|PART II. OTHER INFORMATION                                         |  |                                                                                                                                
|                                                                   | 
|Item 6. Exhibits and Reports on Form 8-K                           |  | 16                                                                                                                             
|                                                                   |  |                                                                                                                                
|                                                                   |  | (a) Exhibits                                                                                                                    |  | 16 
|                                                                   |  |                                                                                                                                
|                                                                   |  | (b) Reports on Form 8-K                                                                                                         |  | 16 
|                                                                   | 
|Signature                                                          |  | 17                                                                                                                             
|                                                                   | 
|Index to Exhibits                                                  |  | 18                                                                                                                             



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COMMUNITYCORP

Condensed Consolidated Balance Sheets



|                                                                                                                             |  |                |             |   |                  |   |             |  
|---------------------------------------------------------------------------------------------------------------------------- |  | -------------- | ----------- | - | ---------------- | - | ----------- | -
|                                                                                                                             |  | March 31, 2007 |             |   | December 31,2006 |  
|Assets:                                                                                                                      |  | (Unaudited)    |             |   | (Audited)        |  
|Cash and cash equivalents:                                                                                                   |  |                |             |   |                  |   |             |  
|Cash and due from banks                                                                                                      |  | $              | 5,843,155   |   |                  | $ | 6,041,317   |  
|Federal funds sold                                                                                                           |  |                | 11,895,000  |   |                  |   | 8,363,000   |  
|                                                                                                                             |  |                |             |   |                  |   |             |  
|Total cash and cash equivalents                                                                                              |  |                | 17,738,155  |   |                  |   | 14,404,317  |  
|                                                                                                                             |  |                |             |   |                  |   |             |  
|Time deposits with other banks                                                                                               |  |                | 100,000     |   |                  |   | 100,000     |  
|Investment securities:                                                                                                       |  |                |             |   |                  |   |             |  
|Available-for-sale                                                                                                           |  |                | 33,378,113  |   |                  |   | 32,468,498  |  
|Held-to-maturity (estimated market value of $1,839,182 and $1,596,065 at March 31, 2007 and December 31, 2006,
respectively) |  |                | 1,819,280   |   |                  |   | 1,574,215   |  
|Nonmarketable equity securities                                                                                              |  |                | 342,857     |   |                  |   | 342,857     |  
|                                                                                                                             |  |                |             |   |                  |   |             |  
|Total investment securities                                                                                                  |  |                | 35,540,250  |   |                  |   | 34,385,570  |  
|                                                                                                                             |  |                |             |   |                  |   |             |  
|Loans receivable                                                                                                             |  |                | 108,226,823 |   |                  |   | 105,840,360 |  
|Less allowance for loan losses                                                                                               |  |                | (1,867,957  | ) |                  |   | (1,856,888  | )
|                                                                                                                             |  |                |             |   |                  |   |             |  
|Loans, net                                                                                                                   |  |                | 106,358,866 |   |                  |   | 103,983,472 |  
|Premises, furniture & equipment, net                                                                                         |  |                | 3,093,696   |   |                  |   | 3,130,914   |  
|Accrued interest receivable                                                                                                  |  |                | 1,152,328   |   |                  |   | 1,216,414   |  
|Other assets                                                                                                                 |  |                | 619,599     |   |                  |   | 871,299     |  
|                                                                                                                             |  |                |             |   |                  |   |             |  
|Total assets                                                                                                                 |  | $              | 164,602,894 |   |                  | $ | 158,091,986 |  
|                                                                                                                             |  |                |             |   |                  |   |             |  
|Liabilities and Shareholders Equity:                                                                                        |  |                |             |   |                  |   |             |  
|Liabilities:                                                                                                                 |  |                |             |   |                  |   |             |  
|Deposits:                                                                                                                    |  |                |             |   |                  |   |             |  
|Noninterest-bearing                                                                                                          |  | $              | 17,345,838  |   |                  | $ | 19,764,876  |  
|Interest-bearing                                                                                                             |  |                | 129,907,565 |   |                  |   | 121,021,388 |  
|                                                                                                                             |  |                |             |   |                  |   |             |  
|Total deposits                                                                                                               |  |                | 147,253,403 |   |                  |   | 140,786,264 |  
|                                                                                                                             |  |               
|Short-term borrowings                                                                                                        |  |                | 290,000     |   |                  |   | 250,000     |  
|Accrued interest payable                                                                                                     |  |                | 1,541,806   |   |                  |   | 1,534,531   |  
|Other liabilities                                                                                                            |  |                | 271,669     |   |                  |   | 383,756     |  
|                                                                                                                             |  |                |             |   |                  |   |             |  
|Total liabilities                                                                                                            |  |                | 149,356,878 |   |                  |   | 142,954,551 |  
|                                                                                                                             |  |                |             |   |                  |   |             |  
|Shareholders 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   |   |                  |   | 1,500,000   |  
|Capital surplus                                                                                                              |  |                | 1,723,082   |   |                  |   | 1,720,382   |  
|Retained earnings                                                                                                            |  |                | 15,786,781  |   |                  |   | 15,632,119  |  
|Accumulated other comprehensive loss                                                                                         |  |                | (59,088     | ) |                  |   | (95,015     | )
|Treasury stock (59,457 shares in 2007 and 58,251 shares in 2006)                                                             |  |                | (3,704,759  | ) |                  |   | (3,620,051  | )
|                                                                                                                             |  |                |             |   |                  |   |             |  
|Total shareholders equity                                                                                                   |  |                | 15,246,016  |   |                  |   | 15,137,435  |  
|                                                                                                                             |  |                |             |   |                  |   |             |  
|Total liabilities and shareholders equity                                                                                   |  | $              | 164,602,894 |   |                  | $ | 158,091,986 |  
|                                                                                                                             |  |                |             |   |                  |   |             |  

See notes to condensed consolidated financial statements.



3



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COMMUNITYCORP

Condensed Consolidated Statements of Income

(Unaudited)



|                                                    |      |                             |           |  |   |          
|--------------------------------------------------- | ---- | --------------------------- | --------- |  | - | ---------
|                                                    |      | Three Months EndedMarch 31,
|                                                    | 2007 |                             | 2006     
|Interest income:                                    |      |                             |           |  |   |          
|Loans, including fees                               |      | $                           | 1,970,398 |  | $ | 1,735,282
|Securities                                          |      |                             | 364,280   |  |   | 296,993  
|Other interest income                               |      |                             | 121,182   |  |   | 74,159   
|                                                    |      |                             |           |  |   |          
|Total                                               |      |                             | 2,455,860 |  |   | 2,106,434
|                                                    |      |                             |           |  |   |          
|Interest expense:                                   |      |                             |           |  |   |          
|Deposit accounts                                    |      |                             | 1,121,900 |  |   | 764,171  
|Other interest expense                              |      |                             | 2,396     |  |   | 3,435    
|                                                    |      |                             |           |  |   |          
|                                                    |      |                             | 1,124,296 |  |   | 767,606  
|                                                    |      |                             |           |  |   |          
|Net interest income                                 |      |                             | 1,331,564 |  |   | 1,338,828
|                                                    |      |                            
|Provision for loan losses                           |      |                             | 75,000    |  |   | 75,000   
|                                                    |      |                             |           |  |   |          
|Net interest income after provision for loan losses |      |                             | 1,256,564 |  |   | 1,263,828
|                                                    |      |                             |           |  |   |          
|Noninterest income:                                 |      |                             |           |  |   |          
|Service charges                                     |      |                             | 113,503   |  |   | 129,684  
|Other income                                        |      |                             | 57,982    |  |   | 48,863   
|                                                    |      |                             |           |  |   |          
|Total                                               |      |                             | 171,485   |  |   | 178,547  
|                                                    |      |                             |           |  |   |          
|Noninterest expenses:                               |      |                             |           |  |   |          
|Salaries and benefits                               |      |                             | 474,857   |  |   | 467,993  
|Net occupancy expense                               |      |                             | 65,288    |  |   | 56,177   
|Equipment expense                                   |      |                             | 91,450    |  |   | 84,309   
|Other operating expenses                            |      |                             | 227,249   |  |   | 246,738  
|                                                    |      |                             |           |  |   |          
|Total                                               |      |                             | 858,844   |  |   | 855,217  
|                                                    |      |                             |           |  |   |          
|Income before taxes                                 |      |                             | 569,205   |  |   | 587,158  
|                                                    |      |                            
|Income tax provision                                |      |                             | 174,000   |  |   | 180,600  
|                                                    |      |                             |           |  |   |          
|Net income                                          |      | $                           | 395,205   |  | $ | 406,558  
|                                                    |      |                             |           |  |   |          
|Earnings per share:                                 |      |                             |           |  |   |          
|                                                    |      |                            
|Weighted average common shares outstanding          |      |                             | 241,214   |  |   | 243,387  
|                                                    |      |                             |           |  |   |          
|Net income per common share                         |      | $                           | 1.64      |  | $ | 1.67     
|                                                    |      |                             |           |  |   |          

See notes to condensed consolidated financial statements.



4



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COMMUNITYCORP

Condensed Consolidated Statement of Shareholders Equity and Comprehensive Income

for the three months ended March 31, 2007 and 2006

(Unaudited)



|                                                                                     |  |              |  |                 |           |                                            |   |           |                   |   |          |                |  |   |            |   |  |   |            |   |  |   |            |  
|------------------------------------------------------------------------------------ |  | ------------ |  | --------------- | --------- | ------------------------------------------ | - | --------- | ----------------- | - | -------- | -------------- |  | - | ---------- | - |  | - | ---------- | - |  | - | ---------- | -
|                                                                                     |  | Common stock |  | Capital Surplus |           | AccumulatedOtherComprehensiveIncome (Loss) |   |           | Retained Earnings |   |          | Treasury Stock |  |   | Total      |  
|                                                                                     |  | Shares       |  | Amount          |           |                                            |   |           |                  
|Balance, December 31, 2005, As previously reported                                   |  | 300,000      |  |                 | 1,500,000 |                                            |   | 1,716,455 |                   |   | (265,071 | )              |  |   | 14,224,597 |   |  |   | (3,532,608 | ) |  |   | 13,643,373 |  
|                                                                                     |  |              |  |                 |           |                                            |  
|Adjustment to reflect the Adoption of SEC Staff Accounting Bulletin No. 108 (Note 3) |  |              |  |                 |           |                                            |   |           |                   |   |          |                |  |   | (116,000   | ) |  |   |            |   |  |   | (116,000   | )
|                                                                                     |  |              |  |                 |           |                                            |   |           |                   |   |          |                |  |   |            |   |  |   |            |   |  |   |            |  
|Balance, December 31, 2005, as Restated                                              |  | 300,000      |  |                 | 1,500,000 |                                            |   | 1,716,455 |                   |   | (265,071 | )              |  |   | 14,108,597 |   |  |   | (3,532,608 | ) |  |   | 13,527,373 |  
|                                                                                     |  |              |  |                 |           |                                            |  
|Cash dividends paid ($.90 per share)                                                 |  |              |  |                 |           |                                            |   |           |                   |   |          |                |  |   | (219,098   | ) |  |   |            |   |  |   | (219,098   | )
|                                                                                     |  |              |  |                 |           |                                            |   |           |                   |   |          |                |  |   |            |   |  |   |            |   |  |   |            |  
|Net income for the period                                                            |  |              |  |                 |           |                                            |   |           |                   |   |          |                |  |   | 406,558    |   |  |   |            |   |  |   | 406,558    |  
|                                                                                     |  |              |  |                 |           |                                            |  
|Other comprehensive loss, net of tax benefit of $8,414                               |  |              |  |                 |           |                                            |   |           |                   |   | (15,974  | )              |  |   |            |   |  |   |            |   |  |   | (15,974    | )
|                                                                                     |  |              |  |                 |           |                                            |   |           |                   |   |          |                |  |   |            |   |  |   |            |   |  |   |            |  
|Comprehensive income                                                                 |  |              |  |                 |           |                                            |   |           |                   |   |          |                |  |   |            |   |  |   |            |   |  |   | 390,584    |  
|                                                                                     |  |              |  |                 |           |                                            |   |           |                   |   |          |                |  |   |            |   |  |   |            |   |  |   |            |  
|Sale of treasury stock                                                               |  |              |  |                 |           |                                            |   | 575       |                   |   |          |                |  |   |            |   |  |   | 36,847     |   |  |   | 37,422     |  
|                                                                                     |  |              |  |                 |           |                                            |  
|Purchase of treasury stock                                                           |  |              |  |                 |           |                                            |   |           |                   |   |          |                |  |   |            |   |  |   | (12,600    | ) |  |   | (12,600    | )
|                                                                                     |  |              |  |                 |           |                                            |   |           |                   |   |          |                |  |   |            |   |  |   |            |   |  |   |            |  
|Balance, March 31, 2006                                                              |  | 300,000      |  | $               | 1,500,000 |                                            | $ | 1,717,030 |                   | $ | (281,045 | )              |  | $ | 14,296,057 |   |  | $ | (3,508,361 | ) |  | $ | 13,723,681 |  
|                                                                                     |  |              |  |                 |           |                                            |   |           |                   |   |          |                |  |   |            |   |  |   |            |   |  |   |            |  
|Balance, December 31, 2006                                                           |  | 300,000      |  | $               | 1,500,000 |                                            | $ | 1,720,382 |                   | $ | (95,015  | )              |  | $ | 15,632,119 |   |  | $ | (3,620,051 | ) |  | $ | 15,137,435 |  
|                                                                                     |  |              |  |                 |           |                                            |  
|Cash dividends paid ($1.00 per share)                                                |  |              |  |                 |           |                                            |   |           |                   |   |          |                |  |   | (240,543   | ) |  |   |            |   |  |   | (240,543   | )
|                                                                                     |  |              |  |                 |           |                                            |   |           |                   |   |          |                |  |   |            |   |  |   |            |   |  |   |            |  
|Net income for the period                                                            |  |              |  |                 |           |                                            |   |           |                   |   |          |                |  |   | 395,205    |   |  |   |            |   |  |   | 395,205    |  
|                                                                                     |  |              |  |                 |           |                                            |  
|Other comprehensive income, net of tax expense of $(18,923)                          |  |              |  |                 |           |                                            |   |           |                   |   | 35,927   |                |  |   |            |   |  |   |            |   |  |   | 35,927     |  
|                                                                                     |  |              |  |                 |           |                                            |   |           |                   |   |          |                |  |   |            |   |  |   |            |   |  |   |            |  
|Comprehensive income                                                                 |  |              |  |                 |           |                                            |   |           |                   |   |          |                |  |   |            |   |  |   |            |   |  |   | 431,132    |  
|                                                                                     |  |              |  |                 |           |                                            |   |           |                   |   |          |                |  |   |            |   |  |   |            |   |  |   |            |  
|Sale of treasury stock                                                               |  |              |  |                 |           |                                            |   | 2,700     |                   |   |          |                |  |   |            |   |  |   | 27,492     |   |  |   | 30,192     |  
|Purchase of treasury stock                                                           |  |              |  |                 |           |                                            |   |           |                   |   |          |                |  |   |            |   |  |   | (112,200   | ) |  |   | (112,200   | )
|                                                                                     |  |              |  |                 |           |                                            |   |           |                   |   |          |                |  |   |            |   |  |   |            |   |  |   |            |  
|Balance, March 31, 2007                                                              |  | 300,000      |  | $               | 1,500,000 |                                            | $ | 1,723,082 |                   | $ | (59,088  | )              |  | $ | 15,786,781 |   |  | $ | (3,704,759 | ) |  | $ | 15,246,016 |  
|                                                                                     |  |              |  |                 |           |                                            |   |           |                   |   |          |                |  |   |            |   |  |   |            |   |  |   |            |  

See notes to condensed consolidated financial statements.



5



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COMMUNITY CORP

Condensed Consolidated Statements of Cash Flows

(Unaudited)



|                                                                                            |      |                              |            |      |  |   |            |  
|------------------------------------------------------------------------------------------- | ---- | ---------------------------- | ---------- | ---- |  | - | ---------- | -
|                                                                                            |      | Three Months Ended March 31, |           
|                                                                                            | 2007 |                              |            | 2006 | 
|Cash flows from operating activities:                                                       |      |                              |            |      |  |   |            |  
|Net income                                                                                  |      | $                            | 395,205    |      |  | $ | 406,558    |  
|Adjustments to reconcile net income to net cash provided by operating activities:           |      |                              |            |      |  |   |            |  
|Provision for loan losses                                                                   |      |                              | 75,000     |      |  |   | 75,000     |  
|Depreciation expense                                                                        |      |                              | 45,000     |      |  |   | 55,547     |  
|Premium amortization less discount accretion on investment securities                       |      |                              | 5,023      |      |  |   | 5,364      |  
|Net accretion of loan fees and costs                                                        |      |                              | (1,472     | )    |  |   | (2,786     | )
|Decrease in accrued interest receivable                                                     |      |                              | 64,086     |      |  |   | 53,061     |  
|Increase in accrued interest payable                                                        |      |                              | 7,275      |      |  |   | 127,369    |  
|(Increase) decrease in other assets                                                         |      |                              | 232,777    |      |  |   | (29,456    | )
|Decrease in other liabilities                                                               |      |                              | (112,087   | )    |  |   | (17,395    | )
|                                                                                            |      |                              |            |      |  |   |            |  
|Net cash provided by operating activities                                                   |      |                              | 710,807    |      |  |   | 673,262    |  
|                                                                                            |      |                              |            |      |  |   |            |  
|Cash flows from investing activities:                                                       |      |                              |            |      |  |   |            |  
|Proceeds from maturities of securities available-for-sale                                   |      |                              | 3,469,819  |      |  |   | 658,306    |  
|Purchases of securities available-for-sale                                                  |      |                              | (4,329,673 | )    |  |   |           |  
|Proceeds from maturities of securities held-to-maturity                                     |      |                              | 55,000     |      |  |   | 302,884    |  
|Purchases of securities held-to-maturity                                                    |      |                              | (300,000   | )    |  |   |           |  
|Purchases of nonmarketable equity securities                                                |      |                              |           |      |  |   | (3,200     | )
|Decrease in time deposits with other banks                                                  |      |                              |           |      |  |   | 200,000    |  
|Net increase in loans to customers                                                          |      |                              | (2,448,922 | )    |  |   | (1,666,617 | )
|Purchases of premises and equipment                                                         |      |                              | (7,782     | )    |  |   | (17,287    | )
|                                                                                            |      |                              |            |      |  |   |            |  
|Net cash used for investing activities                                                      |      |                              | (3,561,558 | )    |  |   | (525,914   | )
|                                                                                            |      |                              |            |      |  |   |            |  
|Cash flows from financing activities:                                                       |      |                              |            |      |  |   |            |  
|Net decrease in demand deposits, interest-bearing transaction accounts and savings accounts |      |                              | (1,305,798 | )    |  |   | (2,135,738 | )
|Net increase in time deposits                                                               |      |                              | 7,772,938  |      |  |   | 8,782,277  |  
|Net increase in short-term borrowings                                                       |      |                              | 40,000     |      |  |   |           |  
|Cash dividends paid                                                                         |      |                              | (240,543   | )    |  |   | (219,098   | )
|Purchase of treasury stock                                                                  |      |                              | (112,200   | )    |  |   | (12,600    | )
|Sale of treasury stock                                                                      |      |                              | 30,192     |      |  |   | 37,422     |  
|Net cash (used) provided by financing activities                                            |      |                              | 6,184,589  |      |  |   | 6,452,263  |  
|                                                                                            |      |                              |            |      |  |   |            |  
|Net (decrease) increase in cash and cash equivalents                                        |      |                              | 3,333,838  |      |  |   | 6,599,611  |  
|                                                                                            |      |                             
|Cash and cash equivalents, beginning of period                                              |      |                              | 14,404,317 |      |  |   | 7,862,462  |  
|                                                                                            |      |                              |            |      |  |   |            |  
|Cash and cash equivalents, end of period                                                    |      | $                            | 17,738,155 |      |  | $ | 14,462,073 |  
|                                                                                            |      |                              |            |      |  |   |            |  
|Cash paid during the period for:                                                            |      |                              |            |      |  |   |            |  
|                                                                                            |      |                             
|Income taxes                                                                                |      | $                            | 44,964     |      |  | $ | 193,700    |  
|Interest                                                                                    |      | $                            | 1,117,021  |      |  | $ | 640,237    |  

See notes to condensed consolidated financial statements.



6



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COMMUNITYCORP



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 March 31, 2007 and for the interim periods ended March 31, 2007 and 2006 are unaudited and, in our opinion, include
all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation. The results of operations for the three months ended March 31, 2007 are not necessarily indicative of the results which may be expected
for the entire calendar year. The financial information as of December 31, 2006 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 2006 Annual Report.

NOTE 2 - COMPREHENSIVE INCOME (LOSS)

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



|                                                                      |  |               |         |   |            |   |         |                   |  |   |         |  
|--------------------------------------------------------------------- |  | ------------- | ------- | - | ---------- | - | ------- | ----------------- |  | - | ------- | -
|                                                                      |  | Pre-taxAmount |         |   | TaxBenefit |   |         | Net-of-tax Amount | 
|For the Three Months Ended March 31, 2007:                            |  |               |         |   |            |   |         |                   |  |   |         |  
|Unrealized gains on securities available-for-sale                     |  | $             | 54,850  |   |            | $ | (18,923 | )                 |  | $ | 35,927  |  
|Reclassification adjustment for gains (losses) realized in net income |  |               |        |   |            |   |        |                   |  |   |        |  
|                                                                      |  |               |         |   |            |   |         |                   |  |   |         |  
|Other comprehensive income - net unrealized gains on securities       |  | $             | 54,850  |   |            | $ | (18,923 | )                 |  | $ | 35,927  |  
|                                                                      |  |               |         |   |            |   |         |                   |  |   |         |  
|For the Three Months Ended March 31, 2006:                            |  |               |         |   |            |   |         |                   |  |   |         |  
|Unrealized losses on securities available-for-sale                    |  | $             | (24,388 | ) |            | $ | 8,414   |                   |  | $ | (15,974 | )
|Reclassification adjustment for gains (losses) realized in net income |  |               |        |   |            |   |        |                   |  |   |        |  
|                                                                      |  |               |         |   |            |   |         |                   |  |   |         |  
|Other comprehensive income - net unrealized losses on securities      |  | $             | (24,388 | ) |            | $ | 8,414   |                   |  | $ | (15,974 | )
|                                                                      |  |               |         |   |            |   |         |                   |  |   |         |  

Accumulated other comprehensive income consists of the net unrealized gains and (losses) on securities available
for sale, net of the deferred tax effects.

NOTE 3 - ADOPTION OF SEC STAFF ACCOUNTING BULLETIN NO. 108

The Company has adopted SEC Staff Accounting Bulletin No. 108 (SAB 108), Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in
Current Year Financial Statements. SAB 108 states that registrants must quantify the impact of correcting all misstatements, including both the carryover (iron curtain method) and reversing (rollover method) effects of prior-year misstatements
on the current-year financial statements, and evaluate misstatements measured under each method in light of quantitative and qualitative factors. Under SAB 108, prior-year misstatements that are material to the current year must be corrected, even
though such correction previously was and continues to be immaterial to the prior-year financial statements. Correcting prior-year financial statements for such immaterial errors does not require previously filed reports to be amended.
Such corrections can be made the next time the Company files the prior-year financial statements.



7



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COMMUNITYCORP



NOTE 3 - ADOPTION OF SEC STAFF ACCOUNTING BULLETIN NO. 108  (continued)

In adopting the requirements of SAB 108, the Company adjusted its income tax accruals, which had been understated by $116,000 as of January 1, 2006. Such
understatement resulted from the under accrual of income taxes payable in each of the prior three years, which were previously evaluated as being immaterial under the rollover method. The Company has reported the cumulative effect of the initial
application of SAB 108 by reducing retained earnings as of January 1, 2006 by $116,000, and increasing by the same amount, its income tax expense accruals. The adjustment of the quarterly financial results for 2006 will be accomplished by
adjusting the applicable financial statement line items when such information is next presented. Reports previously filed with the SEC will not be amended.

Item 2. Managements Discussion and Analysis or Plan of Operations

The following is a discussion of the
Companys financial condition as of March 31, 2007 compared to December 31, 2006, and the results of operations for the three months ended March 31, 2007 compared to the three months ended March 31, 2006. These comments
should be read in conjunction with the Companys condensed financial statements and accompanying footnotes appearing in this report. This report contains forward-looking statements relating to, without limitation, future economic
performance, plans and objectives of management for future operations, and projections of revenues and other financial items that are based on the beliefs of the Companys management, as well as assumptions made by and information currently
available to the Companys management. The words expect, estimate, anticipate, and believe, as well as similar expressions, are intended to identify forward-looking statements. The Companys
actual results may differ materially from the results discussed in the forward-looking statements, and the Companys operating performance each quarter is subject to various risks and uncertainties that are discussed in detail in the
Companys filings with the Securities and Exchange Commission.

Results of Operations

Net Interest Income

The largest component of total income is net
interest income, the difference between the income earned on assets and the interest accrued or paid on deposits and borrowings used to support such assets. The volume and mix of assets and liabilities and their sensitivity to interest rate movement
determine changes in net interest income. Net interest margin is determined by dividing annualized net interest income by average earning assets. Net interest spread is derived from determining the weighted-average rate of interest paid on deposits
and borrowings and subtracting them from the weighted-average yield on earning assets.

Net interest income for the quarter ended March 31, 2007, was
$1,331,564, compared to $1,338,828 for the same period last year, a decrease of $7,264, or .54%. The decrease was mainly attributable to the increase in the yields on our interest bearing liabilities.

For the quarter ended March 31, 2007, average-earning assets totaled $150,600,382 with an annualized average yield of 6.61%. Average earning assets and annualized
average yield were $137,574,276 and 6.21%, respectively, for the quarter ended March 31, 2006. For the quarter ended March 31, 2007, average interest-bearing liabilities totaled $125,488,480 with an annualized average cost of 3.63%.
Average interest-bearing liabilities and annualized average cost were $114,512,053 and 2.72%, respectively, for the quarter ended March 31, 2006.

Our
annualized yield on average earning assets and our annualized average cost of our interest-bearing liabilities increased 40 and 91 basis points respectively during the first quarter of 2007 compared to the first quarter of 2006.

Our net interest margin and net interest spread were 3.59% and 2.98% for the quarter ended March 31, 2007 compared to 3.95% and 3.49%, respectively for the quarter
ended March 31, 2006. The decreases were primarily attributable to the volume of fixed rate loans included in our loan portfolio.

Details of the
components of earning assets and interest-bearing liabilities are discussed in the following paragraphs.



8



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COMMUNITYCORP

Item 2. Managements Discussion and Analysis or Plan of Operations- continued

Net Interest
Income- (continued)



Because loans often provide a higher yield than other types of earning assets, one of our goals is to maintain our
loan portfolio as the largest component of total earning assets. Loans comprised approximately 70.87% and 71.09% of average earning assets for the quarter ended March 31, 2007 and 2006, respectively. Loan interest income was $1,970,398 and
$1,735,282 for quarter ended March 31, 2007 and 2006, respectively. The annualized average yield on loans was 7.49% and 7.20% for the quarter ended March 31, 2007 and 2006, respectively. Average balances of loans increased to $106,725,195
during the quarter ended March 31, 2007, an increase of $8,919,080 over the average of $97,806,115 during the quarter ended March 31, 2006. The modest increase in our annualized average yield on loans is attributable to the volume of fixed
rates loans in our loan portfolio that were made during the past several years when market interest rates were lower than the current prevailing rates. Fixed rate loans averaged approximately 95% of our loan portfolio during the quarter ending
March 31, 2007 and 2006.

Investment securities averaged approximately $34,423,943 or 22.86% of average earning assets, for first quarter of 2007
compared to $32,705,093 or 23.77% of average earning assets, for the same period in 2006. Interest earned on investment securities amounted to $364,280 for the quarter ended March 31, 2007, compared to $296,993 for the comparable period last
year. Investment securities yielded 4.29% and 3.68% for the quarter ended March 31, 2007 and 2006, respectively.

Total interest expense for the
quarter ended March 31, 2007 and 2006 was $1,124,296 and $767,606 respectively. The largest component of interest expense is interest on deposit accounts. Interest expense on deposit accounts was $1,121,900 and $764,171, for the quarter ended
March 31, 2007 and 2006, respectively. The average balance of interest bearing deposits increased to $125,270,036 during the quarter ended March 31, 2007 from $113,840,188 for the quarter ended March 31, 2006. The annualized average
cost of deposits was 3.63% for the quarter ended March 31, 2007 compared to 2.72% for the same period in 2006.

For the quarter ended March 31,
2007 and 2006, the total annualized average cost of funds was 3.63% and 2.72%, respectively.

Provision and Allowance for Loan Losses

We provide for loan losses using the allowance method. Increases to the allowance result from recording a provision for loan losses. Loan losses and recoveries are
charged to the allowance. Charge-offs to the allowance are made when all or a portion of the loan is confirmed as a loss based on our review of the loan, through possession of the underlying security, or through a troubled debt restructuring
transaction. Likewise, recoveries offset these increases through credits to the allowance.

The allowance is maintained at a level that we believe is
sufficient to cover losses in the loan portfolio at a specific point in time. Assessing the adequacy of the allowance requires considerable judgment. The adequacy of the allowance is analyzed on a monthly basis using an internal analysis model. For
purposes of this analysis, adequacy is defined as a level sufficient to absorb probable losses in the portfolio. This methodology relies upon our judgment. Our judgments are based on our assessment of various issues, including, but not limited to,
the pace of loan growth, emerging portfolio concentrations, the risk management system relating to lending activities, entry into new markets, new product offerings, loan portfolio quality trends, and uncertainty in current economic and business
conditions. An allowance model is used that takes into account factors including the composition of the loan portfolio such as risk grade classifications, historical asset quality trends including, but not limited to, previous loss experience
ratios, our assessment of current economic conditions, and reviews of specific high risk sectors of the portfolio. Loans are graded at inception and are reviewed on a periodic basis to ensure that assigned risk grades are proper based on the
definition of such classification. The value of underlying collateral is also considered during such analysis. The resulting monthly model and the related conclusions are reviewed and approved by Senior Management. Our analysis of allowance adequacy
includes consideration for loan impairment. While we use the best information available to make evaluations, future adjustments to the allowance may be necessary if results differ substantially from the assumptions used in making the evaluations.



9



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COMMUNITYCORP

Item 2. Managements Discussion and Analysis or Plan of Operations-continued

Provision
and Allowance for Loan Losses- (continued)



The methodology for assessing the adequacy of the allowance establishes both an allocated and unallocated component
of the allowance. The allocated component is based principally on current loan grades and historical loss rates. The unallocated component is the result of the portion of the assessment that estimates probable losses in the portfolio that are not
fully captured in the allocated allowance. This analysis includes, but is not necessarily limited to, industry concentrations, future market expansions, model imprecision, and the estimated impact of current economic conditions on historical loss
rates. On a continual basis, we monitor trends within the portfolio, both quantitative and qualitative, and assess the reasonableness of the unallocated component.

The allowance is subject to examination and adequacy testing by regulatory agencies. In addition, such regulatory agencies could require allowance adjustments based on information available to them at the time of their examination

The allowance for loan losses was 1.73% and 1.71% of total loans at March 31, 2007 and 2006, respectively. Although there has been an increase in
potential problem loans from March 31, 2006 to March 31, 2007, we believe the allowance for loan losses at March 31, 2007 is reflective of the results of our allowance model methodology. We monitor and evaluate the adequacy of the
allowance and loss exposure in the loan portfolio by considering the borrowers financial conditions and other factors in the unallocated component of the allowance. Accordingly, we believe the allowance as of March 31, 2007 is adequate,
based on our assessment of probable losses, and available facts and circumstances then prevailing.

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 both the three months ended March 31, 2007 and 2006, the provision charged to expense was $75,000.

Noninterest Income

Noninterest income decreased $7,062, or 3.96%, to
$171,485 for the three months ended March 31, 2007 from the comparable period in 2006. Service charges on deposit accounts decreased 12.48% to $113,503 for the three months ended March 31, 2007, while other income increased $9,119 from
March 31, 2006 to $57,982 for the same period in 2007.

Noninterest Expense

Total noninterest expense for the three months ended March 31, 2007 was $3,627, or .42%, greater than the three months ended March 31, 2006. Salaries and employee benefits increased $6,864, or 1.47%, from
$467,993 for the three months ended March 31, 2006 to $474,857 for the comparable period in 2007. This increase is primarily attributable to normal salary increases. For the three months ended March 31, 2007, other operating expense was
$19,489, or 7.90%, less than the three months ended March 31, 2006. Net occupancy and equipment expense increased from $140,486 for the quarter ended March 31, 2006 to $156,738 for the comparable period in 2007.

Income Taxes

The income tax provision for the three months
ended March 31, 2007 was $174,000 compared to $180,600 for the same period in 2006. The decrease was primarily a result of the decrease in income before taxes. The effective tax rates were 30.57% and 30.76% for the three months ended
March 31, 2007 and 2006, respectively.

Net Income

The combination of the above factors resulted in net income for the three months ended March 31, 2007 of $395,205 as compared to $406,558 for the same period in 2006. This represents a decrease of $11,353, or 2.79%, less than the same
period in 2006.



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COMMUNITYCORP

Item 2. Managements Discussion and Analysis or Plan of Operations-continued



Assets and Liabilities

During the first three months of 2007, total assets increased $6,510,908, or 4.12%, when compared to December 31, 2006. Federal funds sold increased $3,532,000 from December 31, 2006 to $11,895,000 at March 31, 2007. Total
investment securities increased $1,154,680 from December 31, 2006 to $35,540,250 at March 31, 2007. Gross loans increased $2,386,463, or 2.25%, to $108,226,823 at March 31, 2007.

For the three months ended March 31, 2007 total liabilities increased $6,402,327 or 4.48% from December 31, 2006. Deposits increased $6,467,139 or 4.59% and
other liabilities decreased $64,812 or 2.99%.

For more analysis of the components of the changes in asset and liabilities, see the following discussion of
major balance sheet categories and the Consolidated Statements of Cash Flows included in Item 1. Financial Statements.

We closely monitor and
seek to maintain appropriate levels of interest earning-assets and interest-bearing liabilities so that maturities of assets are such that adequate funds are provided to meet customer withdrawals and loan demand.

Loans

At March 31, 2007, our total loans were $108,226,823
compared to $105,840,360 at December 31, 2006, an increase of $2,386,463, or 2.25%. Balances within the major loans receivable categories as of March 31, 2007 and December 31, 2006 are as follows:



|                           |  |                |             |                   |   |            
|-------------------------- |  | -------------- | ----------- | ----------------- | - | -----------
|                           |  | March 31, 2007 |             | December 31, 2006
|Real estate  construction |  | $              | 3,780,724   |                   | $ | 3,234,546  
|Real estate  mortgage     |  |                | 32,264,835  |                   |   | 33,437,784 
|Commercial and industrial  |  |                | 61,223,557  |                   |   | 57,752,569 
|Consumer and other         |  |                | 10,957,707  |                   |   | 11,415,461 
|                           |  |                |             |                   |   |            
|Total gross loans          |  | $              | 108,226,823 |                   | $ | 105,840,360
|                           |  |                |             |                   |   |            

Risk Elements in the Loan Portfolio

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



|                                                 |      |           |           |  |   |          
|------------------------------------------------ | ---- | --------- | --------- |  | - | ---------
|                                                 |      | March 31,
|                                                 | 2007 |           | 2006     
|Loans: Nonaccrual loans                          |      | $         | 940,284   |  | $ | 182,784  
|Accruing loans more than 90 days past due        |      |           | 2,208     |  |   | 2,144    
|                                                 |      |          
|Loans identified by the internal review process: |      |           |           |  |   |          
|Criticized                                       |      | $         | 709,879   |  | $ | 515,074  
|Classified                                       |      |           | 2,452,858 |  |   | 1,063,807

Criticized loans have potential weaknesses that deserve close attention and could, if uncorrected, result in
deterioration of the prospects for repayment or the Banks credit position at a future date. Classified loans are inadequately protected by the sound worth and paying capacity of the borrower or any collateral and there is a distinct
possibility or probability that the Bank will sustain a loss if the deficiencies are not corrected.

At March 31, 2007 real estate or other collateral
secured practically all of the loans that were criticized and classified. In the event of foreclosure on these loans, there can be no assurance that in liquidation the collateral can be sold for its estimated fair market value or even for an amount
at least equal to or greater than the loan amount.



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COMMUNITYCORP

Item 2. Managements Discussion and Analysis or Plan of Operations-continued

Risk
Elements in the Loan Portfolio - continued

|
|



The results of this internal review process are the primary determining factor in managements assessment of the
adequacy of the allowance for loan losses.

Activity in the Allowance for Loan Losses is as follows:



|                                               |      |                              |             |      |  |   |            |  
|---------------------------------------------- | ---- | ---------------------------- | ----------- | ---- |  | - | ---------- | -
|                                               |      | Three Months Ended March 31, |            
|                                               | 2006 |                              |             | 2006 | 
|Balance, January 1,                            |      | $                            | 1,856,888   |      |  | $ | 1,664,948  |  
|Provision for loan losses for the period       |      |                              | 75,000      |      |  |   | 75,000     |  
|Net loans charged-off for the period           |      |                              | (63,931     | )    |  |   | (45,856    | )
|                                               |      |                              |             |      |  |   |            |  
|Balance, end of period                         |      | $                            | 1,867,957   |      |  | $ | 1,694,092  |  
|                                               |      |                              |             |      |  |   |            |  
|Gross loans outstanding, end of period         |      | $                            | 108,226,823 |      |  | $ | 99,218,846 |  
|Allowance for loan losses to loans outstanding |      |                              | 1.73        | %    |  |   | 1.71       | %

Deposits

Total deposits increased by 4.59%, or $6,467,139, from December 31, 2006 to $147,253,403 at March 31, 2007. Noninterest-bearing deposits decreased $2,419,038 or 12.24% to $17,345,838 at March 31, 2007, while interest-bearing
deposits increased $8,886,177 or 7.34% to $129,907,565 at March 31, 2007.

Balances within the major deposit categories as of March 31, 2007 and
December 31, 2006 are as follows:



|                                    |  |                |             |                  |   |            
|----------------------------------- |  | -------------- | ----------- | ---------------- | - | -----------
|                                    |  | March 31, 2006 |             | December 31,2006
|Noninterest-bearing demand deposits |  | $              | 17,345,838  |                  | $ | 19,764,876 
|Interest-bearing demand deposits    |  |                | 25,062,680  |                  |   | 23,916,250 
|Savings deposits                    |  |                | 16,576,874  |                  |   | 16,610,063 
|Certificates of deposit             |  |                | 88,268,011  |                  |   | 80,495,075 
|                                    |  |                |             |                  |   |            
|                                    |  | $              | 147,253,403 |                  | $ | 140,786,264
|                                    |  |                |             |                  |   |            

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 demand deposit accounts and short-term borrowings. The level of liquidity is
measured by the loan-to-total funds ratio (total deposits plus short-term borrowings), which was 73.35% at March 31, 2007 and 75.04% at December 31, 2006.

Asset liquidity is provided from several sources, including amounts due from banks and federal funds sold. Available for sale securities, particularly those maturing within one year, provide a secondary source of
liquidity. In addition, funds from maturing loans are a source of liquidity



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COMMUNITYCORP

Item 2. Managements Discussion and Analysis or Plan of Operations-continued

Liquidity- continued



At March 31, 2007 the Bank had available an unused short-term line of credit to purchase up to $3,800,000 of
federal funds from an unrelated correspondent institution. The Bank also has a credit availability agreement with the Federal Home Loan Bank totaling 15 percent of the Banks assets as of any quarter end. As of March 31, 2007, the
available credit totaled approximately $24,690,000 and there were no borrowings outstanding. Any borrowings from the Federal Home Loan Bank will be secured by a blanket lien on all of the Banks 1-4 family residential first lien mortgage loans
and or investment securities.

Interest Rate Sensitivity

Interest rate sensitivity is defined as the exposure to variability in net interest income resulting from changes in market-based interest rates. Asset/liability management is the process by which we monitor and control the mix, maturities,
and interest sensitivity of our assets and liabilities. Asset/liability management seeks to ensure adequate liquidity and to maintain an appropriate balance between interest-sensitive assets and liabilities to minimize potentially adverse impacts on
earnings from changes in market interest rates. Interest rate sensitivity can be managed by repricing assets or liabilities, selling securities available-for-sale, replacing an asset or liability at maturity, or adjusting the interest rate during
the life of an asset or liability. We believe that interest rate risk management becomes increasingly important in an interest rate environment and economy such as the one that we are currently experiencing.

We monitor interest rate sensitivity by measuring our interest sensitivity through a gap analysis, which is the positive or negative dollar difference
between assets and liabilities that are subject to interest rate repricing within a given time period. Currently we are liability-sensitive over periods with maturity dates of less than twelve months. However, since interest rates and yields on
various interest sensitive assets and liabilities do not all adjust in the same degree when there is a change in prevailing interest rates (such as prime rate), the traditional gap analysis is only a general indicator of rate sensitivity and net
interest income volatility. As stated in Results of Operations for the Three Months Ended March 31, 2007 Compared to the Three Months Ended March 31, 2006  Net Interest Income, our net interest margin decreased during the
current period. If net interest margin continues to decline, net income will likely decline also.

Capital Resources

Total shareholders equity increased $108,581from $15,137,435 at December31, 2006 to $15,246,016 at March 31, 2007. The net increase is attributable to earnings
for the period of $395,306 plus the net increase for the period of $92,473 in the fair value of securities available-for-sale. Theses increases were reduced by the payment of $240,543 in cash dividends and the net decrease of $82,008 from the sales
and purchases of treasury stock.

Bank holding companies, such as ours, 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 our 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%.



13



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COMMUNITYCORP

Item 2. Managements Discussion and Analysis or Plan of Operations-continued

Capital
Resources- continued



The following table summarizes the Banks risk-based capital at March 31, 2007:



|                                         |  |   |             |  
|---------------------------------------- |  | - | ----------- | -
|Shareholders equity                     |  | $ | 15,195,603  |  
|Less: intangibles                        |  |   |            |  
|                                         |  |   |             |  
|Tier 1 capital                           |  |   | 15,195,603  |  
|                                         | 
|Plus: allowance for loan losses (1)      |  |   | 1,491,188   |  
|                                         |  |   |             |  
|Total capital                            |  | $ | 16,686,790  |  
|                                         |  |   |             |  
|Risk-weighted assets                     |  | $ | 119,295,000 |  
|                                         |  |   |             |  
|Risk-based capital ratios                |  |   |             |  
|Tier 1 capital (to risk-weighted assets) |  |   | 12.74       | %
|Total capital (to risk-weighted assets)  |  |   | 13.99       | %
|Tier 1 capital (to total average assets) |  |   | 9.58        | %
|                                         |  |   |             |  

---

|(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 $500,000,000 in consolidated assets.

Regulatory Matters

We are 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.

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 March 31, 2007, we had issued commitments to extend credit of $9,986,000
and standby letters of credit of $881,000 through various types of commercial lending arrangements. We evaluate each customers creditworthiness 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.



14



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COMMUNITYCORP

Item 2. Managements Discussion and Analysis or Plan of Operations-continued



Critical Accounting Policies

We have adopted various accounting policies, which govern the application of accounting principles generally accepted in the United States in the preparation of our financial statements. Our significant accounting
policies are described in the notes to the consolidated financial statements at December 31, 2006 as filed in our annual report on Form 10-KSB. Certain accounting policies involve significant judgments and assumptions by us, which have a
material impact on the carrying value of certain assets and liabilities. We consider these accounting policies to be critical accounting policies. The judgments and assumptions we use are based on historical experience and other factors, which we
believe to be reasonable under the circumstances. Because of the nature of the judgments and assumptions we make, actual results could differ from these judgments and estimates which could have a material impact on our carrying values of assets and
liabilities and our results of operations.

We believe the allowance for loan losses is a critical accounting policy that requires the most significant
judgments and estimates used in preparation of our consolidated financial statements. Refer to the portion of this discussion that addresses our allowance for loan losses for a description of our processes and methodology for determining our
allowance for loan losses.

Recently Issued Accounting Standards

Accounting standards which have been issued or proposed by the Financial Accounting Standards Board that do not require adoption until a future date are not expected to have a material impact on the consolidated
financial statements upon adoption.

Item 3. Controls and Procedures.

Within 90 days prior to the date of this report, we carried out an evaluation, under the
supervision and with the participation of our principal executive officer and principal financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based on this evaluation, our principal executive
officer and principal financial officer concluded that our disclosure controls and procedures are effective in timely alerting them to material information required to be included in our periodic SEC reports. The design of any system of controls is
based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote.

In addition, we reviewed our internal controls, and there have been no significant changes in our internal controls or in other factors that could significantly affect
those controls subsequent to the date of their last evaluation.



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COMMUNITYCORP



PART II - OTHER INFORMATION

Item 6. Exhibits and Reports on Form 8-K

(a) Exhibits  The following exhibits are filed with this report.



| | 31.1 | Rule 15d-14(a) Certifications
| | ---- | -----------------------------

| | 31.2 | Rule 15d-14(a) Certifications
| | ---- | -----------------------------

| | 32 | Section 1350 Certifications
| | -- | ---------------------------

(b) Reports on Form 8-K  There were no reports on form 8-K filed during the period.

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     
|                   |  |    
|Date: May 11, 2007 |  | By: |  | /s/ W. ROGER CROOK                 
|                   |  |     |  | W. Roger Crook                     
|                   |  |     |  | President & Chief Executive Officer
|                   |  |    
|Date: May 11, 2007 |  | By: |  | /s/ GWEN P. BUNTON                 
|                   |  |     |  | Gwen P. Bunton                     
|                   |  |     |  | Chief Financial Officer            



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COMMUNITYCORP



Index To Exhibits



|            |  |                              
|----------- |  | -----------------------------
|Exhibit No. |  | Description                  
|31.1        |  | Rule 15d-14(a) Certifications
|            | 
|31.2        |  | Rule 15d-14(a) Certifications
|            | 
|32          |  | Section 1350 Certifications  



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