SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

    (MARK ONE)                      FORM 10-Q

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

                FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1999

                                       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               (I.R.S. Employer
               of 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 date of this filing.

                 300,000 SHARES OF COMMON STOCK, $5.00 PAR VALUE

                                  PAGE 1 OF 14
                             EXHIBIT INDEX ON PAGE 2

<PAGE>


                                  COMMUNITYCORP
                                      INDEX



PART I. FINANCIAL INFORMATION                                          Page No.
-----------------------------

Item 1. Financial Statements (Unaudited)

        Condensed Consolidated Balance Sheets -
        September 30, 1999 and December 31, 1998.............................3

        Condensed Consolidated Statements of Income -
        Nine months ended September 30, 1999 and 1998 and
        Three months ended September 30, 1999 and 1998.......................4

        Condensed Consolidated Statement of Shareholders'
        Equity - Nine months ended September 30, 1999........................5

        Condensed Consolidated Statements of Cash Flows -
        Nine months ended September 30, 1999 and 1998........................6

        Notes to Condensed Consolidated Financial Statements...............7-8

Item 2. Management's Discussion and Analysis of Financial
        Condition and Results of Operations...............................8-13

PART II. OTHER INFORMATION
--------------------------

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


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

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


                                       2

<PAGE>


                                  COMMUNITYCORP
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                                       SEPTEMBER 30,     DECEMBER 31,
                                                                           1999              1998
                                                                       -------------    --------------
<S>                                                                        <C>                 <C>
ASSETS:
Cash and cash equivalents:
  Cash and due from banks                                              $   3,829,330    $    3,864,460
  Federal funds sold & repurchase agreements                               8,100,000        15,610,000
                                                                       -------------    --------------
                                                                          11,929,330        19,474,460

Securities available-for-sale                                             18,608,976        10,743,854

Securities held-to-maturity (estimated market value
  of $5,693,133 and $5,259,426 at September 30, 1999
  and December 31, 1998, respectively)                                     5,789,035         5,192,632

Loans receivable                                                          57,685,035        51,879,654
   Less allowance for loan losses                                         (1,019,347)         (929,482)
                                                                       -------------       ------------
     Loans, net                                                           56,665,688        50,950,172

Accrued interest receivable                                                  976,539           790,130
Premises, furniture & equipment, net                                       1,805,678         1,905,761
Other assets                                                                 857,697           445,961
                                                                       -------------    --------------
    Total assets                                                       $  96,632,943    $   89,502,970
                                                                       =============    ==============

LIABILITIES AND SHAREHOLDERS' EQUITY:

Liabilities:
Deposits:
  Non-interest bearing                                                 $  10,622,611    $    8,532,818
  Interest bearing                                                        76,533,512        71,815,951
                                                                       -------------    --------------
                                                                          87,156,123        80,348,769
Short-term borrowings                                                        230,000           410,000
Accrued interest payable                                                     482,614           498,256
Other liabilities                                                            246,571            76,367
                                                                       -------------    --------------

    Total liabilities                                                     88,115,308        81,333,392
                                                                       -------------    --------------

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                                      (269,782)           39,620
Retained earnings                                                          5,808,120         4,925,661
Treasury stock (6,543 shares in 1999 and 1,543 shares in 1998)              (252,411)          (27,411)
                                                                       -------------    --------------

    Total shareholders' equity                                             8,517,635         8,169,578
                                                                       -------------    --------------

    Total liabilities and shareholders' equity                         $  96,632,943    $   89,502,970
                                                                       =============    ==============
</TABLE>

            See notes to condensed consolidated financial statements.

                                       3

<PAGE>


                                  COMMUNITYCORP
                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                   (UNAUDITED)

<TABLE>
<CAPTION>

                                                    Nine Months Ended               Three Months Ended
                                                       September 30,                   September 30,
                                              ----------------------------    ----------------------------
                                                  1999            1998            1999            1998
                                              ------------    ------------    ------------    ------------
<S>                                               <C>              <C>             <C>             <C>
Interest income:
   Loans, including fees                      $  3,841,315    $  3,236,096    $  1,317,761    $  1,147,999
   Securities                                      801,581         616,975         319,329         191,633
   Other interest income                           458,262         327,189         119,859         163,774
                                              ------------    ------------    ------------    ------------
      Total                                      5,101,158       4,180,260       1,756,949       1,503,406
                                              ------------    ------------    ------------    ------------

Interest expense:
   Deposit accounts                              2,345,570       1,922,301         789,070         705,634
   Other interest expense                           16,012          14,918           5,281           4,616
                                              ------------    ------------    ------------    ------------
                                                 2,361,582       1,937,219         794,351         710,250
                                              ------------    ------------    ------------    ------------

Net interest income                              2,739,576       2,243,041         962,598         793,156

Provision for loan losses                          250,000         170,000          70,000          90,000
                                              ------------    ------------    ------------    ------------
Net interest income after
  provision for loan losses                      2,489,576       2,073,041         892,598         703,156
                                              ------------    ------------    ------------    ------------

Other operating income:
   Service charges                                 308,134         223,068         110,595          81,654
   Other income                                     53,008          23,519          12,544           6,155
                                              ------------    ------------    ------------    ------------
      Total                                        361,142         246,587         123,139          87,809
                                              ------------    ------------    ------------    ------------

Other operating expenses:
  Salaries and benefits                            654,248         606,081         224,678         204,692
  Net occupancy expense                             93,401          89,504          33,056          30,536
  Equipment expense                                182,621         171,892          63,485          59,786
  Other operating expenses                         426,890         377,706         149,280         122,646
                                              ------------    ------------    ------------    ------------
      Total                                      1,357,160       1,245,183         470,499         417,660
                                              ------------    ------------    ------------    ------------

Income before taxes                              1,493,558       1,074,445         545,238         373,305
Income tax provision                               491,716         353,580         174,272         126,040
                                              ------------    ------------    ------------    ------------

Net income                                       1,001,842         720,865         370,966         247,265
                                              ============    ============    ============    ============

Other comprehensive income, net of tax:
  Unrealized gains (losses) on securities
  during the period                               (309,402)         25,859         (67,106)         22,725
                                              ------------    ------------    ------------    ------------
  Other comprehensive income                      (309,402)         25,859         (67,106)         22,725
                                              ------------    ------------    ------------    ------------
Comprehensive income                          $    692,440    $    746,724    $    303,860    $    269,990
                                              ============    ============    ============    ============
Earnings per share:
    Weighted average common shares
     outstanding                                   297,608         298,669         296,094         298,686
                                              ============    ============    ============    ============

Net income per common share                   $       3.37    $       2.41    $       1.25    $       0.83
                                              ============    ============    ============    ============
</TABLE>

                                       4
<PAGE>


            See notes to condensed consolidated financial statements.

                                       5

<PAGE>


                                  COMMUNITYCORP
            CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
                  FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999
                                   (UNAUDITED)

<TABLE>
<CAPTION>


                                  Accumulated
                                 Common Stock                            Other                                         Total
                             ----------------------     Capital      Comprehensive     Retained      Treasury      Shareholders'
                              Shares        Amount      Surplus         Income         Earnings        Stock          Equity
                             --------      --------    ----------     -----------    -----------   ------------    ------------
<S>                             <C>           <C>          <C>            <C>             <C>            <C>           <C>
Balance,
  December 31, 1998            300,000   $ 1,500,000   $ 1,731,708     $  39,620   $   4,925,661    $  (27,411)    $ 8,169,578

Cash dividends declared
  - $.40 per share                                                                      (119,383)                    (119,383)

Other comprehensive
  income                                                                (309,402)                                    (309,402)

Purchase of treasury stock                                                                            (225,000)      (225,000)

Net income
 for the period                                                                        1,001,842                    1,001,842
                           ------------    -----------   -----------   ----------   ------------    -----------  ------------

Balance,
  September 30, 1999            300,000    $ 1,500,000   $ 1,731,708   $ (269,782)   $ 5,808,120     $ (252,411) $  8,517,635
                           ============    ============  ===========   ==========   ============   ============  ============

</TABLE>


            See notes to condensed consolidated financial statements.

                                      6

<PAGE>


                                  COMMUNITYCORP
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

<TABLE>
<CAPTION>

                                                              Nine Months Ended
                                                                September 30,
                                                             1999            1998
                                                        -------------    -------------
<S>                                                           <C>              <C>

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income                                           $   1,001,842    $     720,865
     Adjustments to reconcile net income to
       net cash provided by operating activities:
     Depreciation                                             136,417          137,967
     Provision for possible loan losses                       250,000          170,000
     Amortization less accretion on investments                 5,651           (5,297)
     Amortization of deferred loan costs                        9,081           20,594
     Gain on sale of premises and equipment                   (18,500)               -
     (Increase) decrease in interest receivable              (186,409)          45,755
     Increase (decrease) in interest payable                  (15,642)          73,554
     (Increase) decrease in other assets                     (249,453)         (79,779)
     Increase (decrease) in other liabilities                 170,204           93,677
                                                        -------------    -------------
         Net cash provided by operating activities          1,103,191        1,177,336
                                                        -------------    -------------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Net increase in loans to customers                      (5,974,597)      (6,925,986)
   Purchases of securities available-for-sale             (10,408,731)      (5,999,349)
   Maturities of securities available-for-sale              2,241,551        5,208,505
   Purchases of securities held-to-maturity                (1,683,927)        (409,571)
   Maturities of securities held-to-maturity                  912,246        2,958,215
   Proceeds from disposal of premises and equipment            18,500            1,427
   Purchases of premises and equipment                        (36,334)         (74,155)
                                                        -------------    -------------
         Net cash used by investing activities            (14,931,292)      (5,240,914)
                                                        -------------    -------------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Net increase in deposits accounts                        6,807,354       10,748,852
   Increase (decrease) in short-term borrowings              (180,000)         (90,000)
   Sale (purchase) of treasury stock                         (225,000)           1,000
   Dividends paid                                            (119,383)         (92,509)
                                                        -------------    -------------
       Net cash provided by financing activities            6,282,971       10,567,343
                                                        -------------    -------------

NET INCREASE (DECREASE) IN CASH AND
  CASH EQUIVALENTS                                         (7,545,130)       6,503,765

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD             19,474,460        5,732,260
                                                        -------------    -------------

CASH AND CASH EQUIVALENTS, END OF PERIOD                $  11,929,330    $  12,236,025
                                                        =============    =============

 Cash paid during the period for:
   Income taxes                                         $     421,200    $     457,301
   Interest                                             $   2,377,224    $   1,863,665

</TABLE>


                                       7

<PAGE>

            See notes to condensed consolidated financial statements.


                                       8

<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 September 30, 1999 and for the interim periods ended
September 30, 1999 and 1998 are unaudited and, in the opinion of management,
include all adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation. The financial information as of December 31,
1998 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 1998 Annual Report.

NOTE 2 - COMPREHENSIVE INCOME
-----------------------------

The following table sets forth the amounts of other comprehensive income
included in equity along with the related tax effects for the nine months ended
September 30, 1999 and 1998 and for the three months ended September 30, 1999
and 1998:

<TABLE>
<CAPTION>


                                                    Pre-tax       (Expense)     Net of tax
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999:        Amount        Benefit        Amount
                                                  -----------   ------------   ------------
<S>                                                   <C>           <C>            <C>
Net unrealized gains (losses) on securities
  available for sale arising in 1999              $  (471,685)  $    162,283   $   (309,402)
                                                  -----------   ------------   ------------

Other comprehensive income                        $  (471,685)  $    162,283   $   (309,402)
                                                  ===========   ============   ============


                                                    Pre-tax       (Expense)     Net of tax
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998:        Amount        Benefit        Amount
                                                  -----------   ------------   ------------
Net unrealized gains (losses) on securities
  available for sale arising in 1998              $    39,494   $    (13,635)  $     25,859
                                                  -----------   ------------   ------------

Other comprehensive income                        $    39,494   $    (13,635)  $     25,859
                                                  ===========   ============   ============


                                                    Pre-tax        (Expense)     Net of tax
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1999:       Amount         Benefit        Amount
                                                  -----------   ------------   ------------
Net unrealized gains (losses) on securities
  available for sale arising in 1999              $  (102,452)  $     35,346   $    (67,106)
                                                  -----------   ------------   ------------

Other comprehensive income                        $  (102,452)  $     35,346   $    (67,106)
                                                  ===========   ============   ============
</TABLE>

                                       9

<PAGE>


                                  COMMUNITYCORP

NOTE 2 - COMPREHENSIVE INCOME -- continued

<TABLE>
<CAPTION>

                                                      Pre-tax      (Expense)      Net of tax
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1998:         Amount       Benefit         Amount
                                                   -----------   ------------   ------------
<S>                                                    <C>            <C>           <C>
Net unrealized gains (losses) on securities
  available for sale arising in 1998               $    34,694   $    (11,969)  $     22,725
                                                   -----------   ------------   ------------

Other comprehensive income                         $    34,694   $    (11,969)  $     22,725
                                                   ===========   ============   ============

</TABLE>


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

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
         -----------------------------------------------------------

The following is a discussion of the Company's financial condition as of
September 30, 1999 compared to December 31, 1998, and the results of operations
for the three and nine months ended September 30, 1999 compared to the three and
nine months ended September 30, 1998. These comments should be read in
conjunction with the Company's condensed consolidated financial statements and
accompanying footnotes appearing in this report.

RESULTS OF OPERATIONS
---------------------

NET INTEREST INCOME
-------------------

For the nine months ended September 30, 1999, net interest income increased
$496,535 or 22.14% over the same period in 1998. The net interest margin
realized on earning assets decreased from 4.54% for the nine months ended
September 30, 1998 to 4.23% for the same period in 1999. Yields on earning
assets decreased as a result of lower loans rates while the decrease in interest
rates of deposits resulted in lower yields on interest bearing liabilities. The
interest rate spread decreased by 19 basis points from 3.82% at September 30,
1998 to 3.63% at September 30, 1999.

Net interest income increased from $793,156 for the quarter ending September 30,
1998 to $962,598 for the quarter ending September 30, 1999. This represents an
increase of $169,442 or 21.36%. The net interest margin realized on earning
assets decreased from 4.48% for the quarter ended September 30, 1998 to 4.33%
for the quarter ended September 30, 1999. The interest rate spread also
decreased by 11 basis points from 3.87% at September 30, 1998 to 3.76% at
September 30, 1999.

PROVISION AND ALLOWANCE FOR LOAN LOSSES
---------------------------------------

The provision for loan losses is the charge to operating earnings that
management feels is necessary to maintain the allowance for possible loan losses
at an adequate level. For the nine months ended September 30, 1999, the
provision charged to expense was $250,000. The increase of $80,000 from the
comparable period in 1998 is a result of management's efforts to increase the
allowance for loan losses to correspond with the growth in the loan portfolio.
For the quarter ended September 30, 1999 and 1998, the provision charged to
expense was $70,000 and 90,000, respectively. Based on present information,
management believes the allowance for loan losses is adequate at September 30,
1999 to meet presently known and inherent risks in the loan portfolio.

                                       10

<PAGE>


                                  COMMUNITYCORP

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS -- continued

NON-INTEREST INCOME
-------------------

Non-interest income during the nine months ended September 30, 1999 was
$361,142, an increase of $114,555 or 46.46% from the comparable period in 1998.
The increase is primarily a result of an increase in service charges from
$223,068 to $308,134 for the nine months ended September 30, 1999. Overdraft and
NSF fees increased by $67,982 to $215,415 for the nine months ended September
30, 1999. This change is a result of the increase in deposit accounts over the
two periods. Deposits at September 30, 1998 were $67,691,940 compared to
$87,156,123 at September 30, 1999.

For the quarter ended September 30, 1999, non-interest income increased $35,330
or 40.24% over the same period in 1998. This increase is primarily due to an
increase in service charges which increased $28,941 or 35.44% from the quarter
ended September 30, 1998 to the quarter ended September 30, 1999.

NON-INTEREST EXPENSE
--------------------

Total non-interest expense for the nine months ended September 30, 1999 was
$1,357,160 or 8.99% higher than the nine months ended September 30, 1998.
Salaries and employee benefits increased from $606,081 at September 30, 1998 to
$654,248 for the nine months ended September 30, 1999.

For the quarter ended September 30, 1999, non-interest expense increased $52,839
or 12.65% over the same period in 1998. The largest increase between the quarter
ended September 30, 1999 and the quarter ended September 30, 1998 was in other
operating expenses which increased $26,634 or 21.72%.

INCOME TAXES
------------

The income tax provision for the nine months ended September 30, 1999 was
$491,716 as compared to $353,580 for the same period in 1998. The effective tax
rates were 32.92% and 32.91% at September 30, 1999 and 1998, respectively. The
effective tax rates were 31.96% and 33.76% for the quarter ended September 30,
1999 and September 30, 1998, respectively.

NET INCOME
----------

The combination of the above factors resulted in net income for the nine months
ended September 30, 1999 of $1,001,842 as compared to $720,865 for the same
period in 1998. This represents an increase of $280,977 or 38.98% over the same
period in 1998. For the quarter ended September 30, 1999, net income was
$370,966 as compared to $247,265 for the quarter ended September 30, 1998. This
represents an increase of $123,701 or 50.03% from the quarter ending September
30, 1999 as compared to the quarter ending September 30, 1998.

ASSETS AND LIABILITIES
----------------------

During the first nine months of 1999, total assets increased $7,129,973 or 7.97%
when compared to December 31, 1998. The primary reason for the increase in
assets was due to an increase in securities available for sale which increased
$7,865,122 or 73.21% from December 31, 1998 to September 30, 1999. Growth in
gross loans of $5,805,381 or 11.19% from December 31, 1998 to September 30, 1999
also contributed to the growth in total assets. During the same period, federal
funds sold and repurchase agreements decreased $7,510,000 or 48.11%. Total
deposits increased $6,807,354 or 8.47% from the December 31, 1998 amount of
$80,348,769 to $87,156,123 at September 30, 1999. Within the deposit area,
savings accounts increased $4,245,961 or 30.92% during the first nine months of
1999.

                                       11

<PAGE>


                                  COMMUNITYCORP

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS -- continued
         ------------------------------------

INVESTMENT SECURITIES
---------------------

Investment securities increased from $15,936,486 at December 31, 1998 to
$24,398,011 at September 30, 1999. Securities held-to-maturity increased
$596,403 or 11.49% from December 31, 1998 to September 30, 1999.

LOANS
-----

The demand for loans increased in the Walterboro marketplace during the first
nine months of 1999. Net loans increased $5,715,516 or 11.22% during the period.
Balances within the major loans receivable categories as of September 30, 1999
and December 31, 1998 are as follows:

<TABLE>
<CAPTION>

                                    September 30,            December 31,
                                        1999                     1998
                                --------------------     --------------------
<S>                                     <C>                      <C>
Commercial and industrial       $         39,492,264     $         34,733,571
Real estate                                7,122,827                7,813,792
Consumer                                  10,497,941                8,864,037
Agricultural                                 137,867                  161,719
Other, net                                   434,136                  306,535
                                --------------------     --------------------
                                $         57,685,035     $         51,879,654
                                ====================     ====================

</TABLE>

RISK ELEMENTS IN THE LOAN PORTFOLIO
-----------------------------------

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

<TABLE>
<CAPTION>

                                                     September 30,
                                              ---------------------------
                                                  1999            1998
                                              -----------     -----------
<S>                                              <C>             <C>
Loans:   Nonaccrual loans                     $   760,443     $   810,560

   Accruing loans more than 90
     days past due                            $     8,000     $     4,000

Loans identified by the internal
  review mechanism:

   Criticized                                 $   170,852     $   197,758

   Classified                                 $   708,598     $   700,796

</TABLE>

                                       12
<PAGE>


                                  COMMUNITYCORP

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS -- continued
        ------------------------------------

RISK ELEMENTS IN THE LOAN PORTFOLIO -- continued
-----------------------------------

Activity in the Allowance for Loan Losses
 is as follows:

                                                        September 30,
                                              -----------------------------
                                                   1999            1998
                                              ------------     ------------
Balance, January 1,                           $    929,482     $    743,260
Provision for loan losses for the period           250,000          170,000
Net loans (charged off) recovered for
  the period                                      (160,135)         (76,706)
                                              ------------     ------------

Balance, end of period                        $  1,019,347     $    836,554
                                              ============     ============

Gross loans outstanding, end of period        $ 57,685,035     $ 48,185,800

Allowance for Loan Losses to
  loans outstanding                                   1.77%            1.74%




DEPOSITS
--------

At September 30, 1999, total deposits increased by $6,807,354 or 8.47% from
December 31, 1998. Expressed in percentages, non-interest bearing deposits
increased 24.49% and interest bearing deposits increased 6.57%.

Balances within the major deposit categories as of September 30, 1999 and
December 31, 1998 are as follows:

                                            September 30,        December 31,
                                                 1999               1998
                                          ----------------     ---------------
Non-interest bearing demand deposits      $     10,622,611     $     8,532,818
Interest bearing demand deposits                17,637,985          19,872,854
Savings deposits                                17,977,062          13,731,101
Certificates of deposit                         40,918,465          38,211,996
                                          ----------------     ---------------
                                          $     87,156,123     $    80,348,769
                                          ================     ===============

LIQUIDITY
---------

Liquidity needs are met by the Company 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 borrowed funds ratio which was at 66.01% at September 30, 1999 and
64.24% at December 31, 1998.

Securities available-for-sale which totaled $18,608,976 at September 30, 1999,
serve as a ready source of liquidity. The Company also has lines of credit
available with correspondent banks to purchase federal funds for periods from
one to seven days. At September 30, 1999, unused lines of credit totaled
$2,500,000.

                                       13

<PAGE>

                                  COMMUNITYCORP

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS -- continued
         ------------------------------------

CAPITAL RESOURCES
-----------------

Total shareholders' equity increased from $8,169,578 at December 31, 1998 to
$8,517,635 at September 30, 1999. The increase of $348,057 is primarily
attributable to earnings for the period of $1,001,842 with dividends paid out of
$119,383. A decrease of $309,402 in the fair value of securities
available-for-sale partially offset the increase from net income to total
equity. The purchase of $225,000 of treasury stock further decreased total
equity.

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

The following table summarizes the Company's risk-based capital at September 30,
1999:

Shareholders' equity                                  $     8,787,417
Less: intangibles                                              10,655
                                                      ---------------
Tier I capital                                              8,776,762

Plus: allowance for loan losses (1)                           806,348
                                                      ---------------
Total capital                                         $     9,583,110
                                                      ===============

Risk-weighted assets                                  $    64,507,852
                                                      ===============

Risk based capital ratios
     Tier I                                                    13.61%
     Total capital                                             14.86%
     Leverage ratio                                             9.45%

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

REGULATORY MATTERS
------------------

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

                                       14

<PAGE>

                                  COMMUNITYCORP

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS -- continued
         ------------------------------------

YEAR 2000
---------

Like many financial institutions, the Bank relies upon computers for the daily
conduct of its business and for information systems processing. There is concern
among industry experts that on January 1, 2000 computers will be unable to
"read" the new year, which may result in widespread computer malfunctions. While
the Bank believes that it has available resources and has adopted a plan to
address Year 2000 compliance, it is still dependent to a certain degree on other
third party vendors. The Bank acquired a new data processing system in early
1997 which the Bank believes is Year 2000 compliant. Testing for this new system
was completed as of March 31, 1999. All phases of the testing were considered to
be successful. The Bank has incurred approximately $15,000 in expenses to
upgrade its computer systems to become Year 2000 compliant. Any other costs
associated with upgrading are not expected to be material.

The Bank anticipates that the costs to upgrade other ancillary systems will not
materially differ from normal costs incurred during prior years to upgrade and
maintain its computer systems. The Bank has completed an evaluation of all its
internal systems and software and the network connections it maintains, and it
may incur only minor additional costs. The Bank is seeking assurances about the
Year 2000 compliance with respect to the other third party hardware and software
systems it uses, and the Bank believes that its internal systems and software
and the network connections it maintains will be adequately programmed to
address the Year 2000 issue. The Bank has completed testing all ancillary
systems, such as telephone systems and security devices, as of March 31, 1999.
There can be no assurances that all hardware and software that the Bank uses
will be Year 2000 compliant, and the Bank cannot predict with any certainty the
costs it will incur to respond to any Year 2000 issues. Factors which may affect
the amount of these costs include the Bank's inability to control third party
modification plans, the Bank's ability to identify and correct all relevant
computer codes, the availability and cost of engaging personnel trained in
solving Year 2000 issues, and other similar uncertainties.

Further, the business of many of the Bank's customers may be negatively affected
by the Year 2000 issue, and any financial difficulties incurred by the Bank's
customers in solving Year 2000 issues could negatively affect those customers'
ability to repay any loans which the Bank may have extended. Therefore, even if
the Bank does not incur significant direct costs in connection with responding
to the Year 2000 issue, there can be no assurance that the failure or delay of
the Bank's customers or other third parties in addressing the Year 2000 issue or
the costs involved in such process will not have a material adverse effect on
the Bank's business, financial condition, or results of operations.

The Bank has developed a Contingency Plan (Plan) to ensure its ability to
continue as a functioning entity after January 1, 2000. The Plan includes
remediation contingency planning and business resumption contingency planning.
The remediation contingency plans are designed to ensure that responsible
personnel, vendors and service providers adhere to the Bank's Year 2000 plans
and objectives. The business resumption contingency plans are designed to
provide assurance that mission-critical functions will continue in the event
that systems or applications fail as a result of year 2000 problems.

                           PART II - OTHER INFORMATION

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
----------------------------------------

      (a)   Exhibits
            27. Financial Data Schedule
      (b)   Reports  on Form 8-K - No reports on Form 8-K were filed  during
            the quarter ended September 30, 1999.
Items 1, 2, 3, 4 and 5 are not applicable.

                                       15

<PAGE>


                                  COMMUNITYCORP

                           PART II - OTHER INFORMATION


                                    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: ________________________________________
                                     W. Roger Crook
                                     President & Chief Executive Officer

Date: _________________          By: ________________________________________
                                     Gwen P. Bunton
                                     Chief Financial Officer

                                       16