<PAGE>

                    U. S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

(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, 2003

                                       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

                                  COMMUNITYCORP
             (Exact name of registrant as specified in its charter)

                    South Carolina                      57-1019001
           (State or other jurisdiction of           (I.R.S. Employer
                    incorporation)                  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 latest practicable date.

         276,734 shares of common stock, $5 par value, as of May 8, 2003

Transitional Small Business Disclosure Format (Check one): Yes [ ] No [X]

<PAGE>

                                  COMMUNITYCORP

                                      INDEX

<TABLE>
<CAPTION>
                                                                                                          Page No.
<S>                                                                                                          <C>
PART I. FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

         Condensed Consolidated Balance Sheets - March 31, 2003 and December 31, 2002........................3

         Condensed Consolidated Statements of Income - Three months ended March 31, 2003 and 2002............4

         Condensed Consolidated Statements of Shareholders' Equity and Comprehensive Income -
           Three months ended March 31, 2003 and 2002........................................................5

         Condensed Consolidated Statements of Cash Flows - Three months ended March 31, 2003 and 2002........6

         Notes to Condensed Consolidated Financial Statements................................................7

Item 2. Management's Discussion and Analysis or Plan of Operations...........................................8-12

Item 3. Controls and Procedures..............................................................................12

PART II. OTHER INFORMATION

Item 6. Exhibits and Reports on Form 8-K.....................................................................13

         (a) Exhibits........................................................................................13

         (b) Reports on Form 8-K.............................................................................13

Signature....................................................................................................14

Certifications...............................................................................................15-16
</TABLE>

<PAGE>

                                  COMMUNITYCORP
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                               March 31,        December 31,
                                                                                 2003               2002
                                                                           ---------------    ---------------
<S>                                                                        <C>                <C>
ASSETS:
  Cash and cash equivalents:
    Cash and due from banks                                                $     4,695,445    $     4,772,998
    Federal funds sold and securities purchased under
     agreements to resell                                                       19,946,000         17,052,000
                                                                           ---------------    ---------------
      Total cash and cash equivalents                                           24,641,445         21,824,998
                                                                           ---------------    ---------------

  Time deposits with other banks                                                   299,000            299,000

  Investment securities:
    Securities available-for-sale                                               13,650,173         12,660,654
    Nonmarketable equity securities                                                334,875            334,875
    Securities held-to-maturity (estimated market value of
     $2,961,875 and $3,156,497 at March 31, 2003 and December 31,
     2002, respectively)                                                         2,795,441          3,050,279
                                                                           ---------------    ---------------
      Total investment securities                                               16,780,489         16,045,808
                                                                           ---------------    ---------------

  Loans receivable                                                              75,833,439         75,175,621
  Less allowance for loan losses                                                (1,338,614)        (1,319,202)
                                                                           ---------------    ---------------
      Loans, net                                                                74,494,825         73,856,419

  Accrued interest receivable                                                      806,132            788,666
  Premises, furniture & equipment, net                                           2,211,126          2,169,151
  Other assets                                                                     858,993            791,188
                                                                           ---------------    ---------------

      Total assets                                                         $   120,092,010    $   115,775,230
                                                                           ===============    ===============

LIABILITIES AND SHAREHOLDERS' EQUITY:
LIABILITIES:
  Deposits:
    Noninterest-bearing                                                    $    11,083,455    $     9,303,802
    Interest-bearing                                                            95,454,370         93,315,957
                                                                           ---------------    ---------------
      Total deposits                                                           106,537,825        102,619,759

  Short-term borrowings                                                            260,000            400,000
  Accrued interest payable                                                         480,078            422,502
  Other liabilities                                                                243,261             83,792
                                                                           ---------------    ---------------
      Total liabilities                                                        107,521,164        103,526,053
                                                                           ---------------    ---------------

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                                                                1,731,708          1,731,708
  Accumulated other comprehensive income                                           156,418            128,119
  Retained earnings                                                             10,187,666          9,993,521
  Treasury stock (23,266 shares in 2003 and 25,471 shares in 2002)              (1,004,946)        (1,104,171)
                                                                           ---------------    ---------------
    Total shareholders' equity                                                  12,570,846         12,249,177
                                                                           ---------------    ---------------

    Total liabilities and shareholders' equity                             $   120,092,010    $   115,775,230
                                                                           ===============    ===============
</TABLE>

            See notes to condensed consolidated financial statements.

                                        3

<PAGE>

                                  COMMUNITYCORP

                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                 Three Months Ended
                                                                      March 31,
                                                             ---------------------------
                                                                 2003           2002
                                                             ------------   ------------
<S>                                                          <C>            <C>
INTEREST INCOME:
  Loans, including fees                                      $  1,444,280   $  1,462,551
  Securities                                                      160,536        172,626
  Other interest income                                            60,280         83,855
                                                             ------------   ------------
    Total                                                       1,665,096      1,719,032
                                                             ------------   ------------

INTEREST EXPENSE:
  Deposit accounts                                                558,036        731,198
  Other interest expense                                              288          1,157
                                                             ------------   ------------
                                                                  558,324        732,355
                                                             ------------   ------------

Net interest income                                             1,106,772        986,677

Provision for loan losses                                          85,000         75,000
                                                             ------------   ------------

Net interest income after provision for loan losses             1,021,772        911,677
                                                             ------------   ------------

OTHER OPERATING INCOME:
  Service charges                                                  97,513         88,246
  Other income                                                     53,993         30,938
                                                             ------------   ------------
    Total                                                         151,506        119,184
                                                             ------------   ------------

OTHER OPERATING EXPENSES:
  Salaries and benefits                                           334,689        274,590
  Net occupancy expense                                            46,461         37,076
  Equipment expense                                                63,253         70,810
  Other operating expenses                                        190,214        159,117
                                                             ------------   ------------
    Total                                                         634,617        541,593
                                                             ------------   ------------

Income before taxes                                               538,661        489,268

Income tax provision                                              165,000        152,099
                                                             ------------   ------------

Net income                                                   $    373,661   $    337,169
                                                             ============   ============

EARNINGS PER SHARE:

Weighted average common shares outstanding                        274,734        277,996
                                                             ============   ============

Net income per common share                                  $       1.36   $       1.21
                                                             ============   ============
</TABLE>

            See notes to condensed consolidated financial statements.

                                        4

<PAGE>

                                  COMMUNITYCORP

   CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY AND COMPREHENSIVE
           INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2003 AND 2002
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                Accumulated
                                          Common stock                             Other
                                    ------------------------       Capital     Comprehensive     Retained
                                     Shares        Amount          Surplus        Income         Earnings
                                    --------    ------------    ------------   -------------   ------------
<S>                                  <C>        <C>             <C>            <C>             <C>
Balance, December 31, 2001           300,000    $  1,500,000    $  1,731,708   $      51,132   $  8,648,977

Cash dividends declared
 ($.59 per share)                                                                                  (163,846)

Net income for the period                                                                           337,169

Other comprehensive income
 (loss), net of taxes                                                                (33,270)

Comprehensive income

Purchase of treasury stock
                                    --------    ------------    ------------   -------------   ------------

Balance, March 31, 2002              300,000    $  1,500,000    $  1,731,708   $      17,862   $  8,822,300
                                    ========    ============    ============   =============   ============

Balance, December 31, 2002           300,000    $  1,500,000    $  1,731,708   $     128,119   $  9,993,521

Cash dividends declared
 ($.65 per share)                                                                                  (179,516)

Net income for the period                                                                           373,661

Other comprehensive income,
 net of taxes                                                                         28,299

Comprehensive income

Sale of treasury stock

Purchase of treasury stock
                                    --------    ------------    ------------   -------------   ------------

Balance, March 31, 2003              300,000    $  1,500,000    $  1,731,708   $     156,418   $ 10,187,666
                                    ========    ============    ============   =============   ============

<CAPTION>
                                      Treasury
                                        Stock           Total
                                    -------------    ------------
<S>                                 <C>              <C>
Balance, December 31, 2001          $    (929,706)   $ 11,002,111

Cash dividends declared
 ($.59 per share)                                        (163,846)

Net income for the period                                 337,169

Other comprehensive income
 (loss), net of taxes                                     (33,270)
                                                     ------------

Comprehensive income                                      303,899
                                                     ------------

Purchase of treasury stock                (49,500)        (49,500)
                                    -------------    ------------

Balance, March 31, 2002             $    (979,206)   $ 11,092,664
                                    =============    ============

Balance, December 31, 2002          $  (1,104,171)   $ 12,249,177

Cash dividends declared
 ($.65 per share)                                        (179,516)

Net income for the period                                 373,661

Other comprehensive income,
 net of taxes                                              28,299
                                                     ------------

Comprehensive income                                      401,960
                                                     ------------

Sale of treasury stock                    144,225         144,225

Purchase of treasury stock                (45,000)        (45,000)
                                    -------------    ------------

Balance, March 31, 2003             $  (1,004,946)   $ 12,570,846
                                    =============    ============
</TABLE>

            See notes to condensed consolidated financial statements.

                                        5

<PAGE>

                                  COMMUNITYCORP

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                         Three Months Ended
                                                                              March 31,
                                                                    ----------------------------
                                                                        2003            2002
                                                                    ------------    ------------
<S>                                                                 <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income                                                        $    373,661    $    337,169
  Adjustments to reconcile net income to net cash provided
   by operating activities:
    Depreciation                                                          51,647          46,797
    Provision for possible loan losses                                    85,000          75,000
    Amortization less accretion on investments                             9,156           8,423
    Amortization of deferred loan costs                                      866          17,744
    Gain on sale of premises and equipment                                     -          (5,782)
    (Increase) decrease in interest receivable                           (17,466)         31,413
    Increase (decrease) in interest payable                               57,576         (97,416)
    (Increase) decrease in other assets                                  (67,805)         39,752
    Increase (decrease) in other liabilities                             144,532         (55,873)
                                                                    ------------    ------------
      Net cash provided by operating activities                          637,167         397,227
                                                                    ------------    ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Net increase in loans to customers                                    (724,272)     (1,173,351)
  Purchases of securities available-for-sale                          (5,776,527)     (3,601,640)
  Maturities of securities available-for-sale                          4,821,358       3,348,471
  Maturities of securities held-to-maturity                              254,568         170,975
  Proceeds from disposal of premises and equipment                             -           8,216
  Purchases of premises and equipment                                    (93,622)        (32,616)
                                                                    ------------    ------------
      Net cash provided (used) by investing activities                (1,518,495)     (1,279,945)
                                                                    ------------    ------------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Net increase in demand accounts                                      3,918,066       7,208,315
  (Decrease) increase in short-term borrowings                          (140,000)        (60,000)
  Dividends paid                                                        (179,516)       (163,846)
  Sale of treasury stock                                                 144,225               -
  Purchase of treasury stock                                             (45,000)        (49,500)
                                                                    ------------    ------------
      Net cash provided by financing activities                        3,697,775       6,934,969
                                                                    ------------    ------------

Net increase in cash and cash equivalents                              2,816,447       6,052,251

Cash and cash equivalents, beginning of period                        21,824,998      21,903,132
                                                                    ------------    ------------

Cash and cash equivalents, end of period                            $ 24,641,445    $ 27,955,383
                                                                    ============    ============

Cash paid during the period for:

Income taxes                                                        $     40,242    $    104,279

Interest                                                            $    500,748    $    829,771
</TABLE>

            See notes to condensed consolidated financial statements.

                                        6

<PAGE>

                                  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 March 31, 2003 and for the interim periods ended
March 31, 2003 and 2002 are unaudited and, in our opinion, include all
adjustments (consisting of normal recurring adjustments) considered necessary
for a fair presentation. The financial information as of December 31, 2002 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 2002 Annual Report.

NOTE 2 - COMPREHENSIVE INCOME (LOSS)

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

<TABLE>
<CAPTION>
                                                                     Pre-tax     (Expense)    Net-of-tax
                                                                     Amount       Benefit       Amount
                                                                   ----------   ----------    ----------
<S>                                                                <C>          <C>           <C>
FOR THE THREE MONTHS ENDED MARCH 31, 2003:
Unrealized gains (losses) on securities available-for-sale         $   43,236   $  (14,937)   $   28,299
Plus: reclassification adjustment for
 gains (losses) realized in net income                                      -            -             -
                                                                   ----------   ----------    ----------
  Net unrealized gains (losses) on securities                          43,236      (14,937)       28,299
                                                                   ----------   ----------    ----------

    Other comprehensive income                                     $   43,236   $  (14,937)   $   28,299
                                                                   ----------   ----------    ----------

<CAPTION>
                                                                     Pre-tax      (Expense)   Net-of-tax
                                                                     Amount        Benefit      Amount
                                                                   ----------    ----------   ----------
<S>                                                                <C>           <C>          <C>
FOR THE THREE MONTHS ENDED MARCH 31, 2002:
Unrealized gains (losses) on securities available-for-sale         $  (50,899)   $   17,629   $  (33,270)
Plus: reclassification adjustment for
 gains (losses) realized in net income                                      -             -            -
                                                                   ----------    ----------   ----------
  Net unrealized gains (losses) on securities                         (50,899)       17,629      (33,270)
                                                                   ----------    ----------   ----------

    Other comprehensive income                                     $  (50,899)   $   17,629   $  (33,270)
                                                                   ==========    ==========   ==========
</TABLE>

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

                                        7

<PAGE>

                                  COMMUNITYCORP

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, 2003 compared to December 31, 2002, and the results of operations for the
three months ended March 31, 2003 compared to the three months ended March 31,
2002. 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

For the three months ended March 31, 2003, net interest income increased
$120,095, or 12.17%, as compared to the same period in 2002. The declining
interest rate environment resulted in decreased interest income in all
categories of assets and decreased interest expense from all sources of funds.
Interest income decreased $53,936, or 3.14%, to $1,665,096 for the three months
ended March 31, 2003. Interest expense decreased $174,031, or 23.76% to $558,324
for the three months ended March 31, 2003. The net interest margin realized on
earning assets increased from 3.64% for the three months ended March 31, 2002 to
3.95% for the same period in 2003. The interest rate spread also increased by 30
basis points from 3.29% at March 31, 2002 to 3.59% at March 31, 2003.

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 three months ended March 31, 2003, the provision
charged to expense was $85,000, as compared to $75,000 in the same period in
2002. The allowance for loan losses is 1.77% of total loans at March 31, 2003
and 2002. There are risks inherent in making all loans, including risks with
respect to the period of time over which loans may be repaid, risks resulting
from changes in economic and industry conditions, risks inherent in dealing with
individual borrowers, and, in the case of a collateralized loan, risks resulting
from uncertainties about the future value of the collateral. The Bank maintains
an allowance for loan losses based on, among other things, historical
experience, an evaluation of economic conditions, and regular reviews of
delinquencies and loan portfolio quality. Management's judgment about the
adequacy of the allowance is based upon a number of assumptions about future
events, which it believes to be reasonable, but which may not prove to be
accurate. Thus, there is a risk that charge-offs in future periods could exceed
the allowance for loan losses or that substantial additional increases in the
allowance for loan losses could be required. Additions to the allowance for loan
losses would result in a decrease of the Bank's net income and, possibly, its
capital.

Based on present information, management believes the allowance for loan losses
is adequate at March 31, 2003 to meet presently known and inherent risks in the
loan portfolio.

NONINTEREST INCOME

Noninterest income increased $32,322, or 27.11%, to $151,506 for the three
months ended March 31, 2003 from the comparable period in 2002. Service charges
on deposit accounts increased 10.50% to $97,513 for the three months ended March
31, 2003, while other income increased $23,058, or 74.53% from March 31, 2002 to
$53,993 for the same period in 2003.

                                        8

<PAGE>

                                  COMMUNITYCORP

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS - continued

NONINTEREST EXPENSE

Total noninterest expense for the three months ended March 31, 2003 was $93,024,
or 17.18%, greater than the three months ended March 31, 2002. Salaries and
employee benefits increased $60,099, or 21.87%, from $274,590 for the three
months ended March 31, 2002 to $334,689 for the comparable period in 2003. This
increase is primarily attributable to the addition of several full time
employees and a loan officer. For the three months ended March 31, 2003, other
operating expense was $31,097, or 19.54%, greater than the three months ended
March 31, 2002. Net occupancy and equipment expense increased slightly from
$107,886 for the three months ended March 31, 2002 to $109,714 for the
comparable period in 2003.

INCOME TAXES

The income tax provision for the three months ended March 31, 2003 was $165,000
as compared to $152,099 for the same period in 2002. The increase was primarily
a result of an increase in income before taxes. The effective tax rates were
30.63% and 31.09% for the three months ended March 31, 2003 and 2002,
respectively.

NET INCOME

The combination of the above factors resulted in net income for the three months
ended March 31, 2003 of $373,661 as compared to $337,169 for the same period in
2002. This represents an increase of $36,492, or 10.82%, more than the same
period in 2002.

ASSETS AND LIABILITIES

During the first three months of 2003, total assets increased $4,316,780, or
3.73%, when compared to December 31, 2002. Total investment securities increased
$734,681 from December 31, 2002 to $16,780,489 at March 31, 2003. Loans
increased $657,818, or 0.88%, to $75,833,439 at March 31, 2003.

Total deposits also increased by 3.82%, or $3,918,066, from December 31, 2002 to
$106,537,825 at March 31, 2003. Noninterest-bearing deposits increased
$1,779,653 to $11,083,455 at March 31, 2003, interest-bearing deposits increased
$2,138,413 or 2.29% to $95,454,370 at March 31, 2003. This increase was a result
of continued growth of the Bank.

LOANS

The declining economy resulted in little loan growth in the Bank's marketplace
during the first three months of 2003. Gross loans increased $657,818, or 0.88%,
during the period. Balances within the major loans receivable categories as of
March 31, 2003 and December 31, 2002 are as follows:

                                        March 31,    December 31,
                                          2003           2002
                                      ------------   ------------
Real estate - construction            $  3,886,877   $  3,928,774
Real estate - mortgage                  30,415,048     32,052,444
Commercial and industrial               29,076,032     27,010,050
Consumer and other                      12,455,482     12,184,353
                                      ------------   ------------

  Total gross loans                   $ 75,833,439   $ 75,175,621
                                      ============   ============

                                        9

<PAGE>

                                  COMMUNITYCORP

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS - continued

RISK ELEMENTS IN THE LOAN PORTFOLIO

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

                                                          March 31,
                                                  -------------------------
                                                      2003          2002
                                                  -----------   -----------
Loans: Nonaccrual loans                           $ 3,163,878   $ 2,885,116

Accruing loans more than 90 days past due         $     1,000   $    13,076

Loans identified by the internal review
 mechanism:

   Criticized                                     $   538,745   $   315,787

   Classified                                     $ 3,269,596   $ 3,201,161

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.

Activity in the Allowance for Loan Losses is as follows:

                                                           March 31,
                                                  ----------------------------
                                                      2003            2002
                                                  ------------    ------------
Balance, January 1,                               $  1,319,202    $  1,231,051
Provision for loan losses for the period                85,000          75,000
Net loans (charged-off) recovered for the
 period                                                (65,588)        (20,536)
                                                  ------------    ------------
Balance, end of period                            $  1,338,614    $  1,285,515
                                                  ============    ============

Gross loans outstanding, end of period            $ 75,833,439    $ 72,494,001

Allowance for loan losses to loans
 outstanding                                              1.77%           1.77%

DEPOSITS

Total deposits increased $3,918,066, or 3.82%, from December 31, 2002. The
largest change was an increase in interest bearing deposits. Interest-bearing
demand deposits increased $2,138,413 to $95,454,370 at March 31, 2003. Expressed
in percentages, interest bearing deposits increased 2.29% during the period and
noninterest bearing deposits increased 19.13%.

Balances within the major deposit categories as of March 31, 2003 and December
31, 2002 are as follows:

                                             March 31,      December 31,
                                               2003            2002
                                           -------------   -------------
Noninterest-bearing demand deposits        $  11,083,455   $   9,303,802
Interest-bearing demand deposits              16,746,498      18,977,055
Savings deposits                              21,741,421      18,014,033
Certificates of deposit                       56,966,451      56,324,869
                                           -------------   -------------

                                           $ 106,537,825   $ 102,619,759
                                           =============   =============

                                       10

<PAGE>

                                  COMMUNITYCORP

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS - continued

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 71.01% at March 31, 2003 and 72.97% at
December 31, 2002.

Securities available-for-sale, which totaled $13,650,173 at March 31, 2003,
serves as a ready source of liquidity. We also have lines of credit available
with correspondent banks to purchase federal funds. At March 31, 2003, unused
lines of credit totaled $3,940,000. We also have 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, 2003, the available credit totaled $18,000,000,
and there were no draws on this line.

CAPITAL RESOURCES

Total shareholders equity increased from $12,249,177 at December 31, 2002 to
$12,570,846 at March 31, 2003. The net increase of $321,669 is attributable to
earnings for the period of $373,661 before the payment of $179,516 in cash
dividends, the net change for the period of $28,299 in the fair value of
securities available-for-sale and the net change of $99,225 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%.

The following table summarizes the Bank's risk-based capital at March 31, 2003:

Shareholders' equity                           $ 12,234,913

Less: intangibles                                         -
                                               ------------
Tier 1 capital                                   12,234,913

Plus: allowance for loan losses (1)               1,022,840
                                               ------------
Total capital                                  $ 13,257,753
                                               ============

Risk-weighted assets                           $ 81,532,129
                                               ============

Risk-based capital ratios
  Tier 1 capital (to risk-weighted assets)            15.01%
  Total capital (to risk-weighted assets)             16.26%
  Tier 1 capital (to total average assets)            10.24%

(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.

                                       11

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                                  COMMUNITYCORP

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS - continued

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.

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, 2002 as
filed in our annual report on Form 10-K. 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.

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, 2003,
we had issued commitments to extend credit of $5,847,000 and standby letters of
credit of $476,000 through various types of commercial lending arrangements. 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.

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.

                                       12

<PAGE>

                                  COMMUNITYCORP

PART II - OTHER INFORMATION

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a)     Exhibits - The following exhibits are filed with this report.
                99.1 Certification Pursuant to 18 U.S.C. Section 1350, as
                Adopted Pursuant to Section 906 of the Sarbanes - Oxley Act of
                2002.

(b)     Reports on Form 8-K - No reports on Form 8-K were filed during the
        quarter ended March 31, 2003.

                The Company filed a Form 8-K on January 7, 2003 regarding the
                resignation of Tourville, Simpson, and Caskey, LLP as the
                company's certifying accountant and the engagement of Elliott
                Davis, LLC, certified public accountants, to audit the company's
                financial statements for the year ending December 31, 2002.

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

                                       13

<PAGE>

                                  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 CROOK
                                             -----------------------------------
                                             W. Roger Crook
                                             President & Chief Executive Officer

Date:  May 12, 2003                     By:  /s/ GWEN P. BUNTON
                                             -----------------------------------
                                             Gwen P. Bunton
                                             Chief Financial Officer

                                       14

<PAGE>

                                  COMMUNITYCORP

                                  Certification

I, W. Roger Crook, certify that:

1.    I have reviewed this quarterly report on Form 10-QSB 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:  May 12, 2003                        /s/ W. ROGER CROOK
                                           -------------------------------------
                                           W. Roger Crook
                                           President and Chief Executive Officer

                                       15

<PAGE>

                                  COMMUNITYCORP

                                  Certification

I, Gwendolyn P. Bunton, certify that:

1.    I have reviewed this quarterly report on Form 10-QSB 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: May 12, 2003                         /s/ GWEN P. BUNTON
                                           --------------------------
                                           Gwen P. Bunton
                                           Vice President and Cashier

                                       16

<PAGE>

                                  COMMUNITYCORP

                                Index to Exhibits

Exhibit
Number      Description

99.1        Certification Pursuant to 18 U.S.C Section 1350, as Adopted Pursuant
            to Section 906 of the Sarbanes - Oxley Act of 2002.

                                       17