----

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**UNITED      STATES **

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**Form      10-Q**

**Community      Capital Bancshares, Inc.**

| Georgia(State                or other jurisdiction ofIncorporation                or organization) |   | 58-2413468 (IRS                EmployerIdentification                No.) |
|----------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------|

| Large                Accelerated Filer o | Accelerated                Filer o | Non-Accelerated                Filer x |
|------------------------------------------|------------------------------------|----------------------------------------|

**APPLICABLE      ONLY TO CORPORATE ISSUERS:**

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| **PART                I - FINANCIAL INFORMATION**                                                                                                                                           |   | Page                No.                                                                                                   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                        |   |                                                                                                                      |   |   |
| ITEM                1.                                                                                                                                                                      |   | Financial              Statements                                                                                         |   |   |
|                                                                                                                                                                                        |   |                                                                                                                      |   |   |
| Consolidated                balance sheets as of December 31, 2005 and                September 30, 2006 (unaudited)                                                                        |   | 3                                                                                                                         |
|                                                                                                                                                                                        |   |                                                                                                                      |   |   |
| Consolidated                statements of income (unaudited) for                the three and nine months ended September 30, 2005 and                2006                                  |   | 4                                                                                                                         |
|                                                                                                                                                                                        |   |                                                                                                                      |   |   |
| Consolidated                statements of comprehensive operations                (unaudited) for                the three and nine months ended September 30, 2005 and                2006 |   | 5                                                                                                                         |
|                                                                                                                                                                                        |   |                                                                                                                      |   |   |
| Consolidated                statements of cash flows (unaudited) for the                nine                months ended September 30, 2005 and 2006                                        |   | 6                                                                                                                         |
|                                                                                                                                                                                        |   |                                                                                                                      |   |   |
| Item                2.                                                                                                                                                                      |   | Management’s                Discussion and Analysis of Financial                Condition and Results of Operations |   | 11 |
|                                                                                                                                                                                        |   |                                                                                                                      |   |   |
| Item                3.                                                                                                                                                                      |   | Quantitative                and Qualitative Disclosures about Market                Risk                                  |   | 15 |
|                                                                                                                                                                                        |   |                                                                                                                      |   |   |
| Item                4.                                                                                                                                                                      |   | Controls                and procedures                                                                                    |   | 15 |
|                                                                                                                                                                                        |   |                                                                                                                      |   |   |
| **PART                II - OTHER INFORMATION**                                                                                                                                              |   |                                                                                                                      |
|                                                                                                                                                                                        |   |                                                                                                                      |   |   |
| ITEM                1.                                                                                                                                                                      |   | Legal                Proceedings                                                                                          |   | 17 |
|                                                                                                                                                                                        |   |                                                                                                                      |   |   |
| ITEM                1.A.                                                                                                                                                                    |   | Risk                Factors                                                                                               |   | 17 |
|                                                                                                                                                                                        |   |                                                                                                                      |   |   |
| ITEM                2.                                                                                                                                                                      |   | Unregistered                Sales of Equity Securities and Use of                Proceeds                                 |   | 17 |
|                                                                                                                                                                                        |   |                                                                                                                      |   |   |
| ITEM                3.                                                                                                                                                                      |   | Defaults                upon Senior Securities                                                                            |   | 17 |
|                                                                                                                                                                                        |   |                                                                                                                      |   |   |
| ITEM                4.                                                                                                                                                                      |   | Submission                of matters to a vote of Security                Holders                                         |   | 17 |
|                                                                                                                                                                                        |   |                                                                                                                      |   |   |
| ITEM                5.                                                                                                                                                                      |   | Other                Information                                                                                          |   | 17 |
|                                                                                                                                                                                        |   |                                                                                                                      |   |   |
| ITEM                6.                                                                                                                                                                      |   | Exhibits                                                                                                                  |   | 17 |

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| **Community                Capital Bancshares, Inc.****and                Subsidiaries** |
|------------------------------------------------------------------------------------------|
| **Consolidated                Balance Sheets**                                           |
| (Dollars                in thousands)                                                    |

|                                                                                                                                                           |   | September                30,2006(unaudited) |    | **December                31,****2005** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|---------|-----------------------------------------|--------|
| **Assets**                                                                                                                                                     |   |                                        |    |                                    |   |
| Cash                and due from banks                                                                                                                         |   | $                                           | 12,453  |                                    | $      | 6,931 |   |
| Federal                funds sold                                                                                                                              |   |                                        | 6,881   |                                    |   | 8,671 |   |
| Securities                available for sale                                                                                                                   |   |                                        | 38,488  |                                    |   | 41,690 |   |
| Restricted                equity securities                                                                                                                    |   |                                        | 2,294   |                                    |   | 2,426 |   |
| Loans                                                                                                                                                          |   |                                        | 244,304 |                                    |   | 230,908 |   |
| Less                allowance for loan losses                                                                                                                  |   |                                        | 3,613   |                                    |   | 3,000 |   |
| Loans,                net                                                                                                                                      |   |                                        | 240,691 |                                    |   | 227,908 |   |
| Premises                and equipment                                                                                                                          |   |                                        | 9,416   |                                    |   | 7,892 |   |
| Goodwill                                                                                                                                                       |   |                                        | 2,334   |                                    |   | 2,334 |   |
| Core                deposit premium                                                                                                                            |   |                                        | 250     |                                    |   | 282 |   |
| Other                assets                                                                                                                                    |   |                                        | 12,471  |                                    |   | 11,323 |   |
| **Total                Assets**** **                                                                                                                      |   | $                                           | 325,278 |                                    | $      | 309,457 |   |
|                                                                                                                                                           |   |                                        |    |                                    |   |   |   |
| **Liabilities                and Shareholders' Equity**                                                                                                        |   |                                        |    |                                    |   |   |   |
| Deposits                                                                                                                                                       |   |                                        |    |                                    |   |   |   |
| Non-interest                bearing                                                                                                                            |   | $                                           | 29,814  |                                    | $      | 22,745 |   |
| Interest                bearing                                                                                                                                |   |                                        | 234,378 |                                    |   | 222,824 |   |
| Total                deposits                                                                                                                                  |   |                                        | 264,192 |                                    |   | 245,569 |   |
| Other                borrowings                                                                                                                                |   |                                        | 27,000  |                                    |   | 33,000 |   |
| Guaranteed                preferred beneficial interests in junior subordinated                debentures                                                      |   |                                        | 4,124   |                                    |   | 4,124 |   |
| Other                liabilities                                                                                                                               |   |                                        | 2,425   |                                    |   | 1,369 |   |
| **Total                Liabilities**                                                                                                                           |   |                                        | 297,741 |                                    |   | 284,062 |   |
|                                                                                                                                                           |   |                                        |    |                                    |   |   |   |
| Shareholders'                equity                                                                                                                            |   |                                        |    |                                    |   |   |   |
| Preferred                stock, par value not stated; 2,000,000 shares authorized;                                                                             |   |                                        |    |                                    |   |   |   |
| no                shares issued                                                                                                                                |   | $                                           | — |                                    | $      | — |   |
| Common                stock, $1.00 par value, 10,000,000 shares authorized;                                                                                    |   |                                        |    |                                    |   |   |   |
| 3,072,210                and 2,973,356 shares issued                                                                                                           |   |                                        | 3,072   |                                    |   | 2,973 |   |
| Capital                surplus                                                                                                                                 |   |                                        | 22,944  |                                    |   | 22,246 |   |
| Retained                earnings                                                                                                                               |   |                                        | 2,629   |                                    |   | 1,468 |   |
| Accumulated                other comprehensive loss                                                                                                            |   |                                        | (697    | )                                       |   | (845 | ) |
| Less                cost of treasury stock, 54,979 and 59,851 shares as of September                30, 2006                and December 31, 2005 respectively |   |                                        | (411    | )                                       |   | (447 | ) |
| **Total                Shareholders' equity**                                                                                                                  |   |                                        | 27,537  |                                    |   | 25,395 |   |
| **Total                Liabilities and Shareholders' Equity**                                                                                                  |   | $                                           | 325,278 |                                    | $      | 309,457 |   |

----

| **Community                Capital Bancshares, Inc.****and                Subsidiaries****Consolidated                Statements of Operations (unaudited)****For                the three and nine months ended September 30, 2006 and                2005****(Dollars                in thousands, except earnings per                share)** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                         |   | Three                    months ended |      | Nine                    months ended  |   |
|--------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|-----------|---------------------------------------|--------|
|                                                                                                         |   | September                    30, 2006 |      | September                    30, 2005 |   | September                    30, 2006 |   | September                    30, 2005 |   |
| **Interest                    Income**                                                                       |   |                                  |      |                                  |   |   |   |   |   |
| Loans                                                                                                        |   | $                                     | 5,556     |                                  | $      | 3,540 |   | $ | 15,810 |   | $ | 8,754 |   |
| Investment                    securities                                                                     |   |                                  | 473       |                                  |   | 423 |   |   | 1,410 |   |   | 1,318 |   |
| Deposits                    in banks                                                                         |   |                                  | 6         |                                  |   | 6 |   |   | 17 |   |   | 14 |   |
| Federal                    funds sold                                                                        |   |                                  | 21        |                                  |   | 40 |   |   | 205 |   |   | 100 |   |
| **Total                    interest income**                                                                 |   |                                  | 6,056     |                                  |   | 4,009 |   |   | 17,442 |   |   | 10,186 |   |
| **Interest                    expense**                                                                      |   |                                  |      |                                  |   |   |   |   |   |   |   |   |   |
| Deposits                                                                                                     |   |                                  | 2,681     |                                  |   | 1,340 |   |   | 7,402 |   |   | 2.987 |   |
| Other                    borrowed money                                                                      |   |                                  | 399       |                                  |   | 391 |   |   | 1,260 |   |   | 937 |   |
| **Total                    interest expense**                                                                |   |                                  | 3,080     |                                  |   | 1,731 |   |   | 8,662 |   |   | 3,924 |   |
| **Net                    interest income**                                                                   |   |                                  | 2,976     |                                  |   | 2,278 |   |   | 8,780 |   |   | 6,262 |   |
| Provision                    for loan losses                                                                 |   |                                  | 124       |                                  |   | 370 |   |   | 937 |   |   | 800 |   |
| **Net                    interest income after provision for loan losses**                                   |   |                                  | 2,852     |                                  |   | 1,908 |   |   | 7,843 |   |   | 5,462 |   |
| **Other                    income**                                                                          |   |                                  |      |                                  |   |   |   |   |   |   |   |   |   |
| Service                    charges on deposit accounts                                                       |   |                                  | 303       |                                  |   | 277 |   |   | 958 |   |   | 748 |   |
| Financial                    service fees                                                                    |   |                                  | 54        |                                  |   | 71 |   |   | 161 |   |   | 140 |   |
| Mortgage                    origination fees                                                                 |   |                                  | 290       |                                  |   | 257 |   |   | 720 |   |   | 341 |   |
| Loss                    on sale of investment securities                                                     |   |                                  | (59       | )                                     |   | — |   |   | (59 | ) |   | — |   |
| Gain                    (loss) on sale of foreclosed properties                                              |   |                                  | (90       | )                                     |   | 10 |   |   | (109 | ) |   | (7 | ) |
| Increase                    in cash surrender value of bank owned life insurance                    policies |   |                                  | 63        |                                  |   | 60 |   |   | 185 |   |   | 181 |   |
| Other                    operating income                                                                    |   |                                  | 192       |                                  |   | 31 |   |   | 304 |   |   | 123 |   |
| **Total                    other income**                                                                    |   |                                  | 753       |                                  |   | 706 |   |   | 2,160 |   |   | 1,526 |   |
| **Other                    expenses**                                                                        |   |                                  |      |                                  |   |   |   |   |   |   |   |   |   |
| Salaries                    and employee benefits                                                            |   |                                  | 1,456     |                                  |   | 1,110 |   |   | 4,175 |   |   | 2,860 |   |
| Equipment                    and occupancy expense                                                           |   |                                  | 354       |                                  |   | 309 |   |   | 989 |   |   | 872 |   |
| Marketing                    expense                                                                         |   |                                  | 57        |                                  |   | 50 |   |   | 148 |   |   | 148 |   |
| Data                    processing expense                                                                   |   |                                  | 175       |                                  |   | 148 |   |   | 516 |   |   | 454 |   |
| Administrative                    expenses                                                                   |   |                                  | 230       |                                  |   | 180 |   |   | 833 |   |   | 471 |   |
| Legal                    and professional                                                                    |   |                                  | 135       |                                  |   | 84 |   |   | 394 |   |   | 294 |   |
| Directors                    fees                                                                            |   |                                  | 78        |                                  |   | 63 |   |   | 205 |   |   | 187 |   |
| Amortization                    of intangible assets                                                         |   |                                  | 10        |                                  |   | 12 |   |   | 32 |   |   | 36 |   |
| Stationery                    and supply expense                                                             |   |                                  | 63        |                                  |   | 47 |   |   | 177 |   |   | 138 |   |
| Loss                    on other than temporarily impaired security                                          |   |                                  | —   |                                  |   | 763 |   |   | — |   |   | 763 |   |
| Other                    operating expenses                                                                  |   |                                  | 192       |                                  |   | 195 |   |   | 549 |   |   | 431 |   |
| **Total                    other expense**                                                                   |   |                                  | 2,750     |                                  |   | 2,961 |   |   | 8,018 |   |   | 6,654 |   |
| **Income                    before income taxes**                                                            |   |                                  | 855       |                                  |   | (347 | ) |   | 1,985 |   |   | 334 |   |
| Income                    tax expense                                                                        |   |                                  | 285       |                                  |   | (142 | ) |   | 643 |   |   | 48 |   |
| **Net                    Income (loss)**                                                                     |   | $                                     | 570       |                                  | $      | (205 | ) | $ | 1,342 |   | $ | 286 |   |
| Basic                    earnings per share                                                                  |   | $                                     | .19       |                                  | $      | (.07 | ) | $ | .46 |   | $ | .10 |   |
| Diluted** **earnings                    per share                                                       |   | $                                     | .18       |                                  | $      | (.07 | ) | $ | .44 |   | $ | .09 |   |
| Weighted                    average common shares outstanding                                                |   |                                  | 2,996,578 |                                  |   | 2,913,365 |   |   | 2,947,298 |   |   | 2,907,168 |   |
| Weighted                    average diluted common shares outstanding                                        |   |                                  | 3,074,149 |                                  |   | 3,052,124 |   |   | 3,030,709 |   |   | 3,054,440 |   |
| Dividends                    Declared per share                                                              |   |                                  | .02       |                                  |   | .02 |   |   | .06 |   |   | .06 |   |

----

**Community        Capital Bancshares, Inc.**

**and        Subsidiaries**

**Consolidated        Statements of Comprehensive Income (unaudited)**

|                                                                                           |   | Three                Months Ended |    | Nine                Months Ended  |   |
|------------------------------------------------------------------------------------------------|--------|-----------------------------------|---------|-----------------------------------|--------|
|                                                                                           |   | September                30, 2006 |    | September                30, 2005 |   | September                30, 2006 |   | September                30, 2005 |   |
|                                                                                           |   |                              |    |                              |   |   |   |   |   |
| **Net                Income**                                                                  |   | $                                 | 570     |                              | $      | (205 | ) | $ | 1,342 |   | $ | 286 |   |
| Other                comprehensive income (loss)                                               |   |                              |    |                              |   |   |   |   |   |   |   |   |   |
| Net                unrealized holding gains (losses) arising during the                period. |   |                              | 786     |                              |   | (814 | ) |   | 165 |   |   | (1,047 | ) |
| Tax                benefit (expense) on unrealized holding gains                               |   |                              | (267    | )                                 |   | 277 |   |   | (56 | ) |   | 356 |   |
| Reclassification                adjustment for losses included in net income                   |   |                              | 59      |                              |   |   |   |   | 59 |   |   |   |   |
| Tax                benefit for losses included in net income                                   |   |                              | (20     | )                                 |   | — |   |   | (20 | ) |   | — |   |
| Recognized                loss from other than temporarily impaired security                   |   |                              | — |                              |   | 763 |   |   | — |   |   | 763 |   |
| Tax                benefit from recognition of loss                                            |   |                              | — |                              |   | (259 | ) |   |   |   |   | (259 | ) |
| Total                other comprehensive income (loss)                                         |   |                              | 558     |                              |   | (33 | ) |   | 148 |   |   | (187 | ) |
|                                                                                           |   |                              |    |                              |   |   |   |   |   |   |   |   |   |
|  **Comprehensive                income (loss)**                                           |   | $                                 | 1,128   |                              | $      | (238 | ) | $ | 1,490 |   | $ | 99 |   |

----

| **Community                Capital Bancshares, Inc.****and                Subsidiaries****Consolidated                Statements of Cash Flows (unaudited)** Nine                Months ended September 30, 2006 and 2005(Dollars                in thousands) |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                |   | 2006   |      | 2005   |   |
|---------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|
|                                                                                                                |   |   |      |   |   |
| **Cash                  Flows from operating activities:**                                                          |   | **$**  | **1,342** |   | **$**  | **286** |   |
| Net                  income                                                                                         |   |   |      |   |   |   |   |
| Adjustments                  to reconcile net income to net cash provided by operating                  activities: |   |   |      |   |   |   |   |
| Depreciation                                                                                                        |   |   | 349       |   |   | 324 |   |
| Amortization                  of core deposit premium                                                               |   |   | 32        |   |   | 36 |   |
| Provision                  for loan losses                                                                          |   |   | 937       |   |   | 800 |   |
| Provision                  for deferred taxes                                                                       |   |   | (58       | )      |   | (30 | ) |
| Increase                  in interest receivable                                                                    |   |   | (173      | )      |   | (419 | ) |
| Recognized                  loss from other than temporarily impaired security                                      |   |   | —   |   |   | 763 |   |
| Other                  operating activities                                                                         |   |   | 514       |   |   | (370 | ) |
| Net                  cash provided by operating activities                                                          |   |   | 2,943     |   |   | 1,390 |   |
|                                                                                                                |   |   |      |   |   |   |   |
| **Cash                  Flows from Investing Activities:**                                                          |   |   |      |   |   |   |   |
| Purchase                  of property and equipment                                                                 |   |   | (1,991    | )      |   | (2,002 | ) |
| Net                  (increase) decrease in federal funds sold                                                      |   |   | 1,790     |   |   | (6,859 | ) |
| Net                  increase in loans                                                                              |   |   | (13,720   | )      |   | (76,607 | ) |
| Proceeds                  from maturities of securities available for sale                                          |   |   | 1,551     |   |   | 1,024 |   |
| Proceeds                  from sale of securities                                                                   |   |   | 4,234     |   |   | 1,980 |   |
| Purchase                  of securities available for sale                                                          |   |   | (2,612    | )      |   | (4,171 | ) |
| Proceeds                  for sale of fixed assets                                                                  |   |   | 108       |   |   | — |   |
| Net                  cash used in investing activities                                                              |   |   | (10,640   | )      |   | (86,635 | ) |
|                                                                                                                |   |   |      |   |   |   |   |
| **Cash                  Flows from Financing Activities:**                                                          |   |   |      |   |   |   |   |
| Net                  increase in deposits                                                                           |   |   | 18,623    |   |   | 80,651 |   |
| Dividends                  paid to shareholders                                                                     |   |   | (182      | )      |   | (178 | ) |
| Proceeds                  from exercise of stock options                                                            |   |   | 692       |   |   | 214 |   |
| Net                  increase (decrease) in other borrowings                                                        |   |   | (6,000    | )      |   | 7,847 |   |
| Treasury                  stock transactions, net                                                                   |   |   | 86        |   |   | (16 | ) |
| Net                  cash provided by financing activities                                                          |   |   | 13,219    |   |   | 88,518 |   |
| Net                  increase in cash                                                                               |   |   | 5,522     |   |   | 3,273 |   |
| Cash                  and due from banks at beginning of period                                                     |   |   | 6,931     |   |   | 5,515 |   |
| Cash                  and due from banks at end of period                                                           |   |   | 12,453    |   |   | 8,788 |   |
|                                                                                                                |   |   |      |   |   |   |   |
| **Supplemental                  Disclosure**                                                                        |   |   |      |   |   |   |   |
| Cash                  paid for interest                                                                             |   | $      | 8,604     |   | $      | 3,704 |   |
| Income                  taxes                                                                                       |   | $      | 711       |   | $      | — |   |
|                                                                                                                |   |   |      |   |   |   |   |
| **Non-Cash                  Transaction**                                                                           |   |   |      |   |   |   |   |
| Unrealized                  gains (losses) on securities available for sale                                         |   |   |      |   |   |   |   |
|                                                                                                                |   | $      | 165       |   | $      | (284 | ) |

----

**Community      Capital Bancshares, Inc.**

**and      Subsidiaries**

**Notes      to Financial Statements**

**Note      1. Organization and Summary of Significant Accounting      Policies**

**Nature      of Business **

**Basis      of Presentation**

*Consolidation      of Variable Interest Entities*

----

**Income      Taxes**

**Stock      Compensation Plans **

----

|                                              |   | **For                      The Three****Months                      Ended****September                      30, 2006****($000)** |   | **For                          The Three****Months                          Ended****September                          30, 2005****($000)** |   | **For                      The Nine****Months                      Ended****September                      30, 2006****($000)** |   | **For                      The Nine****Months                      Ended****September                      30, 2005****($000)** |   |
|---------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------|--------|
| Net                income, as reported            |   | $                                                                                                                                | 570    |                                                                                                                                         | $      | (205                                                                                                                            | )      | $                                                                                                                               | 1,342  |   | $ | 286 |   |
| Add:                                              |   |                                                                                                                             |   |                                                                                                                                         |   |                                                                                                                            |   |                                                                                                                            |   |   |   |   |   |
| Stock-based                employee compensation  |   |                                                                                                                             |   |                                                                                                                                         |   |                                                                                                                            |   |                                                                                                                            |   |   |   |   |   |
| included                in reported net income,   |   |                                                                                                                             |   |                                                                                                                                         |   |                                                                                                                            |   |                                                                                                                            |   |   |   |   |   |
| net                of related tax effects         |   |                                                                                                                             | 29     |                                                                                                                                         |   |                                                                                                                            |   |                                                                                                                            | 78     |   |   |   |   |
| Deduct:                                           |   |                                                                                                                             |   |                                                                                                                                         |   |                                                                                                                            |   |                                                                                                                            |   |   |   |   |   |
| Total                stock-based employee         |   |                                                                                                                             |   |                                                                                                                                         |   |                                                                                                                            |   |                                                                                                                            |   |   |   |   |   |
| compensation                expense               |   |                                                                                                                             |   |                                                                                                                                         |   |                                                                                                                            |   |                                                                                                                            |   |   |   |   |   |
| determined                under fair value        |   |                                                                                                                             |   |                                                                                                                                         |   |                                                                                                                            |   |                                                                                                                            |   |   |   |   |   |
| method,                net of related tax effects |   |                                                                                                                             | (29    | )                                                                                                                                            |   | (30                                                                                                                             | )      |                                                                                                                            | (78    | ) |   | (82 | ) |
|                                              |   |                                                                                                                             |   |                                                                                                                                         |   |                                                                                                                            |   |                                                                                                                            |   |   |   |   |   |
| Pro                forma net earnings             |   | $                                                                                                                                | 570    |                                                                                                                                         | $      | (235                                                                                                                            | )      | $                                                                                                                               | 1,342  |   |   | 204 |   |
|                                              |   |                                                                                                                             |   |                                                                                                                                         |   |                                                                                                                            |   |                                                                                                                            |   |   |   |   |   |
| Earnings                per share:                |   |                                                                                                                             |   |                                                                                                                                         |   |                                                                                                                            |   |                                                                                                                            |   |   |   |   |   |
| Basic                - as reported                |   | $                                                                                                                                | .19    |                                                                                                                                         | $      | (.07                                                                                                                            | )      | $                                                                                                                               | .46    |   | $ | .10 |   |
|                                              |   |                                                                                                                             |   |                                                                                                                                         |   |                                                                                                                            |   |                                                                                                                            |   |   |  |  |   |
| Basic                - pro forma                  |   | $                                                                                                                                | .19    |                                                                                                                                         | $      | (.08                                                                                                                            | )      | $                                                                                                                               | .46    |   | $ | .07 |   |
|                                              |   |                                                                                                                             |   |                                                                                                                                         |   |                                                                                                                            |   |                                                                                                                            |   |   |   |   |   |
| Diluted                - as reported              |   | $                                                                                                                                | .18    |                                                                                                                                         | $      | (.07                                                                                                                            | )      | $                                                                                                                               | .44    |   | $ | .09 |   |
|                                              |   |                                                                                                                             |   |                                                                                                                                         |   |                                                                                                                            |   |                                                                                                                            |   |   |   |   |   |
| Diluted                - pro forma                |   | $                                                                                                                                | .18    |                                                                                                                                         | $      | (.08                                                                                                                            | )      | $                                                                                                                               | .44    |   | $ | .07 |   |

|                                             |   | **Period                  Ended****September                  30, 2006** |    | **Year                  Ended****December                  31, 2005** |   |
|--------------------------------------------------|--------|--------------------------------------------------------------------------|---------|-----------------------------------------------------------------------|--------|
|                                             |   | **Number**                                                               |    | **Weighted-                  Average Exercise Price**                 |   | **Weighted-                  Average Remaining Contractual Term** |   | **Aggregate                    Intrinsic Value****($000)** |   | **Number** |   | **Weighted-                  Average Exercise Price** |   | **Average                  Remaining Contractual Term** |   | **Aggregate                  Intrinsic Value****($000)** |   |
|                                             |   |                                                                     |    |                                                             |   |    |   |    |   |   |   |   |   |   |   |    |   |
| Under                option, beginning           |   |                                                                     | 374,621 |                                                                  |   | 9.81 |   |   | 6.37 |   | $ | 408 |   |   | 305,435 |   |   | 9.33 |   |   |   |   |   |   |   |
| of                the period:                    |   |                                                                     |    |                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Granted                                          |   |                                                                     | 58,296  |                                                                  |   | 10.64 |   |   |   |   |   |   |   |   | 86,185 |   |   | 11.20 |   |   |   |   |   |   |   |
| Exercised                                        |   |                                                                     | (77,000 | )                                                                     |   | 7.00 |   |   |   |   |   |   |   |   | (5,596 | ) |   | 10.06 |   |   |   |   |   |   |   |
| Forfeited                                        |   |                                                                     | (85,356 | )                                                                     |   | 12.03 |   |   |   |   |   |   |   |   | (11,400 | ) |   | 10.94 |   |   |   |   |   |   |   |
| Under                option, end of              |   |                                                                     |    |                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| the                period                        |   |                                                                     | 270,561 |                                                                  |   | 9.96 |   |   | 4.89 |   |   | 623 |   |   | 374,621 |   |   | 9.81 |   |   | 6.37 |   | $ | 408 |   |
|                                             |   |                                                                     |    |                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unvested                at the end of the period |   |                                                                     | 138,259 |                                                                  |   | 10.93 |   |   | 8.18 |   |   | 184 |   |   | 168,190 |   |   | 11.43 |   |   | 8.50 |   | $ | — |   |
|                                             |   |                                                                     |    |                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Vested                and exercisable at the     |   |                                                                     |    |                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| end                of the period                 |   |                                                                     | 132,202 |                                                                  |   | 8.94 |   |   | 6.71 |   |   | 439 |   |   | 206,431 |   |   | 8.32 |   |   | 4.64 |   | $ | 532 |   |
|                                             |   |                                                                     |    |                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average                fair             |   |                                                                     |    |                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| value                per option of options       |   |                                                                     |    |                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| granted                during the year           |   |                                                                     |    |                                                                  |   |   |   |   |   |   | $ | 4.11 |   |   |   |   |   |   |   |   |   |   | $ | 3.76 |   |

----

|                                        |   | **Period                Ended**       |                    | **Year                Ended**        |   |
|---------------------------------------------|--------|---------------------------------------|-------------------------|--------------------------------------|--------|
|                                        |   | **September                30, 2006** |                    | **December                31, 2005** |   |
|                                        |   |                                  |                    |                                 |   |
| Risk-free                interest rate      |   |                                  | 4.91                    | %                                    |   | 4.40 | % |
| Expected                life of the options |   |                                  | 10                years |                                 |   | 10                years |   |
| Expected                dividend yield      |   |                                  | 0.78                    | %                                    |   | .78 | % |
| Expected                volatility          |   |                                  | 20.25                   | %                                    |   | 14.83%                - 15.96 | % |

|                                           |   | **Shares** |    |  **Weighted-Average****Grant-Date****Fair                Value** |   |
|------------------------------------------------|--------|------------|---------|-----------------------------------------------------------------------|--------|
|                                           |   |       |    |                                                             |   |
| Nonvested                at January 1, 2006    |   |       | 168,193 |                                                                  | $      | 4.17 |   |
| Granted                                        |   |       | 58,296  |                                                                  |   |   |   |
| Vested                                         |   |       | (27,230 | )                                                                     |   |   |   |
| Forfeited                                      |   |       | (61,000 | )                                                                     |   |   |   |
| Nonvested                at September 30, 2006 |   |       | 138,259 |                                                                  | $      | 4.25 |   |

**Accounting      Standards **

**,      **
** **

----

**Management’s      Discussion and Analysis of Financial Condition and      Results of Operations**

**Financial      Condition**

----

|                                                                           |   | **September                30, 2006** |        | **December                31, 2005** |   |
|--------------------------------------------------------------------------------|--------|---------------------------------------|-------------|--------------------------------------|--------|
| Interest                bearing demand and savings                             |   | $                                     | 65,325,000  |                                 | $      | 56,538,000 |   |
| Certificates                of deposit in denominations of $100,000 or greater |   |                                  | 106,553,000 |                                 |   | 113,197,000 |   |
| Other                Certificates of deposit                                   |   |                                  | 62,500,000  |                                 |   | 53,089,000 |   |
| Total                                                                          |   | $                                     | 234,378,000 |                                 | $      | 222,824,000 |   |

**Capital      Adequacy**

| Tier                1 Capital to risk weighted assets    |   |   |   |
|----------------------------------------------------------|--------|--------|--------|
| Ratio,                actual                             |   |   | 12.73  | % |
| Tier                1 Capital minimum requirement        |   |   | 4.00   | % |
|                                                     |   |   |   |   |
| Tier                2 Capital to risk weighted assets    |   |   |   |   |
| Ratio,                actual                             |   |   | 13.98  | % |
| Tier                2 Capital minimum requirement        |   |   | 8.00   | % |
|                                                     |   |   |   |   |
| Tier                1 Leverage Ratio                     |   |   | 8.93   | % |
| Tier                1 Leverage Ratio minimum requirement |   |   | 4.00   | % |

**Results      of operations**

**For      the quarter end compared to prior year quarter end**

----

**For      the year to date comparison to prior year**

----

**Off-Balance      Sheet Arrangements **

|                                        |   | September-06 |       | December-05 |   |
|---------------------------------------------|--------|--------------|------------|-------------|--------|
| Commitments                to extend credit |   | $            | 73,202,000 |        | $      | 71,362,000 |   |
| Standby                letters of credit    |   | $            | 1,020,000  |        | $      | 1,293,000 |   |

**LIQUIDITY      AND CAPITAL RESOURCES**

----

**REGULATORY      MATTERS**

**Forward-Looking      Statements**

| **ITEM              3.** | **QUANTITATIVE                AND QUALITATIVE DISCLOSURES ABOUT MARKET                RISK** |
|--------------------------|----------------------------------------------------------------------------------------------|

| **ITEM              4.** | **CONTROLS                AND                PROCEDURES** |
|--------------------------|-----------------------------------------------------------|

----

----

**PART      II**

| **ITEM              1.** | **Legal                Proceedings** |
|--------------------------|--------------------------------------|

| **ITEM              1.A.** | **Risk                Factors** |
|----------------------------|---------------------------------|

| **ITEM              2.** | **UNREGISTERED                SALES OF EQUITY SECURITIES AND USE OF                PROCEEDS** |
|--------------------------|-----------------------------------------------------------------------------------------------|

|  | (a) | None |
|--|-----|------|

|  | (b) | None |
|--|-----|------|

|  | (c) | None |
|--|-----|------|

| **ITEM              3.** | **DEFAULTS                UPON SENIOR                SECURITIES** |
|--------------------------|-------------------------------------------------------------------|

| **ITEM              4.** | **SUBMISSION                OF MATTERS TO A VOTE OF SECURITY HOLDERS** |
|--------------------------|------------------------------------------------------------------------|

| **ITEM              5.** | **OTHER                INFORMATION** |
|--------------------------|--------------------------------------|

| **Item                6.** | **Exhibits** |
|----------------------------|--------------|

|  | **31.1  ** | Certification                  of the Chief Executive officer pursuant to Rule 13a-14(a) under                  the                  Securities exchange act of 1934, as                  amended. |
|--|----------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

|  | **31.2  ** | Certification                  of the Chief Financial Officer pursuant to Rule                  13a-14(a) under the Securities exchange act of 1934, as                  amended. |
|--|----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | **32.1** | Certification                of the Chief Executive Officer and Chief Financial Officer pursuant                to                Rule 13a-14(b) under the Securities exchange act of 1934, as                amended. |
|--|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SIGNATURES**

|                                            |                                                                        |                                                        |
|-------------------------------------------------|-----------------------------------------------------------------------------|-------------------------------------------------------------|
|                                       |                                                                   | **Community                Capital Bancshares, Inc.**  |
| November                13,                2006 |                                                                             | /s/              John H. Monk,              Jr.             |
| Date                                            | Date                John H. Monk, Jr.Chief                Executive Officer |

|                                                |                                                                                                                                                                                    |                                               |
|-----------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------|
| November                  13,                  2006 |                                                                                                                                                                                         | /s/                David J.                Baranko |
| Date                                                | David                    J. BarankoChief                    Financial Officer(Duly                    authorized officer andprincipal                    financial / accountingofficer) |

----