----

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** SECURITIES        AND EXCHANGE COMMISSION**

**Washington,        D.C. 20549**

**Form        10-Q**

**Community        Capital Bancshares, Inc.**

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

**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                      June 30, 2006 (unaudited)                                                                       | 3                                                                                                                                 |
|                                                                                                                                                                                              |                                                                                                                              |
| Consolidated                      statements of income (unaudited) for the three                      and six months ended June 30, 2005 and 2006                                                 | 4                                                                                                                                 |
|                                                                                                                                                                                              |                                                                                                                              |
| Consolidated                    statements of comprehensive income                    (unaudited) for the three and six months ended June 30, 2005                    and                    2006 | 5                                                                                                                                 |
|                                                                                                                                                                                              |                                                                                                                              |   |
| Consolidated                    statements of cash flows (unaudited) for the                    six months ended June 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                                                                                              | 15 |
|                                                                                                                                                                                              |                                                                                                                              |   |
| ITEM                    1A.                                                                                                                                                                       | Risk                    Factors                                                                                              | 16 |
|                                                                                                                                                                                              |                                                                                                                              |   |
| ITEM                    2.                                                                                                                                                                        | Unregistered                    Sales of Equity Securities and Use of                    Proceeds                                 | 16 |
|                                                                                                                                                                                              |                                                                                                                              |   |
| ITEM                    3.                                                                                                                                                                        | Defaults                    upon Senior Securities                                                                                | 16 |
|                                                                                                                                                                                              |                                                                                                                              |   |
| ITEM                    4.                                                                                                                                                                        | Submission                    of matters to a vote of Security                    Holders                                         | 16 |
|                                                                                                                                                                                              |                                                                                                                              |   |
| ITEM                    5.                                                                                                                                                                        | Other                    Information                                                                                              | 16 |
|                                                                                                                                                                                              |                                                                                                                              |   |
| ITEM                    6.                                                                                                                                                                        | Exhibits                                                                                                                          | 16 |

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**PART      I.  FINANCIAL INFORMATION**

**Item      1.  Financial Statements**

| **Community                Capital Bancshares, Inc.****and                Subsidiaries**                  |   |
|-----------------------------------------------------------------------------------------------------------|--------|
| **ConsolidatedBalance                Sheets**                                                             |   |
| (Dollars                in thousands)                                                                     |   |
|                                                                                                      |   |   |   |   |   |
|                                                                                                      |   | June                30, 2006(unaudited) |   | December                31,2005 |   |
| **Assets**                                                                                                |   |   |   |   |   |   |   |
| Cash                and due from banks                                                                    |   | $ | 7,829 |   | $ | 6,931 |   |
| Federal                funds sold                                                                         |   |   | 2,978 |   |   | 8,671 |   |
| Securities                available for sale                                                              |   |   | 42,131 |   |   | 41,690 |   |
| Restricted                equity securities                                                               |   |   | 2,204 |   |   | 2,426 |   |
| Loans                                                                                                     |   |   | 268,714 |   |   | 230,908 |   |
| Less                allowance for loan losses                                                             |   |   | 3,455 |   |   | 3,000 |   |
| Loans,                net                                                                                 |   |   | 265,259 |   |   | 227,908 |   |
| Premises                and equipment                                                                     |   |   | 9,076 |   |   | 7,892 |   |
| Goodwill                                                                                                  |   |   | 2,334 |   |   | 2,334 |   |
| Core                deposit premium                                                                       |   |   | 261 |   |   | 282 |   |
| Other                assets                                                                               |   |   | 12,263 |   |   | 11,323 |   |
| **Total                Assets**** **                                                                 |   | $ | 344,335 |   | $ | 309,457 |   |
|                                                                                                      |   |   |   |   |   |   |   |
| **Liabilities                and Shareholders' Equity**                                                   |   |   |   |   |   |   |   |
| Deposits                                                                                                  |   |   |   |   |   |   |   |
| Non-interest                bearing                                                                       |   | $ | 22,300 |   | $ | 22,745 |   |
| Interest                bearing                                                                           |   |   | 263,560 |   |   | 222,824 |   |
| Total                deposits                                                                             |   |   | 285,860 |   |   | 245,569 |   |
| Other                borrowings                                                                           |   |   | 25,000 |   |   | 33,000 |   |
| Guaranteed                preferred beneficial interests in junior subordinated                debentures |   |   | 4,124 |   |   | 4,124 |   |
| Other                liabilities                                                                          |   |   | 3,120 |   |   | 1,369 |   |
| **Total                Liabilities**                                                                      |   |   | 318,104 |   |   | 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;                               |   |   |   |   |   |   |   |
| 3,050,356                and 2,973,356 shares issued                                                      |   |   | 3,050 |   |   | 2,973 |   |
| Capital                surplus                                                                            |   |   | 22,764 |   |   | 22,246 |   |
| Retained                earnings                                                                          |   |   | 2,119 |   |   | 1,468 |   |
| Accumulated                other comprehensive (loss)                                                     |   |   | (1,255 | ) |   | (845 | ) |
| Less                cost of treasury stock, 59,851 shares                                                 |   |   | (447 | ) |   | (447 | ) |
| **Total                shareholders' equity**                                                             |   |   | 26,231 |   |   | 25,395 |   |
| **Total                Liabilities and Shareholders' Equity**                                             |   | $ | 344,335 |   | $ | 309,457 |   |
|                                                                                                      |
|                                                                                                      |

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| **Community                  Capital Bancshares, Inc.****and                  Subsidiaries****ConsolidatedStatements                  of Income                  (unaudited)****For                  the three and six months ended June 30, 2006 and                  2005****(Dollars                  in thousands, except earnings per share)**  |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                      |   | Three                  months ended |   | Six                  months ended |   |
|                                                                                                                                                                                                                                                                                                                                                      |   | June                  30, 2006 |   | June                  30, 2005 |   | June                  30, 2006 |   | June                  30, 2005 |   |
| **Interest                  Income**                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                                                                                                                                                                                                                                                                                                                                     |   |   | 5,423 |   |   | 2,848 |   |   | 10,253 |   |   | 5,215 |   |
| Investment                  securities                                                                                                                                                                                                                                                                                                                    |   |   | 469 |   |   | 432 |   |   | 938 |   |   | 894 |   |
| Deposits                  in banks                                                                                                                                                                                                                                                                                                                        |   |   | 10 |   |   | 2 |   |   | 11 |   |   | 8 |   |
| Federal                  funds sold                                                                                                                                                                                                                                                                                                                       |   |   | -                  - |   |   | 36 |   |   | 183 |   |   | 60 |   |
| **Total                  interest income**                                                                                                                                                                                                                                                                                                                |   |   | 5,902 |   |   | 3,318 |   |   | 11,385 |   |   | 6,177 |   |
| **Interest                  expense**                                                                                                                                                                                                                                                                                                                     |
| Deposits                                                                                                                                                                                                                                                                                                                                                  |   |   | 2,511 |   |   | 946 |   |   | 4,721 |   |   | 1,646 |   |
| Other                  borrowed money                                                                                                                                                                                                                                                                                                                     |   |   | 413 |   |   | 313 |   |   | 861 |   |   | 547 |   |
| **Total                  interest expense**                                                                                                                                                                                                                                                                                                               |   |   | 2,924 |   |   | 1,259 |   |   | 5,582 |   |   | 2,193 |   |
| **Net                  interest income**                                                                                                                                                                                                                                                                                                                  |   |   | 2,978 |   |   | 2,059 |   |   | 5,803 |   |   | 3,984 |   |
| Provision                  for loan losses                                                                                                                                                                                                                                                                                                                |   |   | 334 |   |   | 250 |   |   | 812 |   |   | 430 |   |
| **Net                  interest income after provision for loan losses**                                                                                                                                                                                                                                                                                  |   |   | 2,644 |   |   | 1,809 |   |   | 4,991 |   |   | 3,554 |   |
| **Other                  income**                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Service                  charges on deposit accounts                                                                                                                                                                                                                                                                                                      |   |   | 343 |   |   | 254 |   |   | 655 |   |   | 470 |   |
| Financial                  service fees                                                                                                                                                                                                                                                                                                                   |   |   | 50 |   |   | 40 |   |   | 106 |   |   | 69 |   |
| Mortgage                  origination fees                                                                                                                                                                                                                                                                                                                |   |   | 233 |   |   | 49 |   |   | 430 |   |   | 84 |   |
| Loss                  on sale of foreclosed properties                                                                                                                                                                                                                                                                                                    |   |   | (30 | ) |   | (1 | ) |   | (29 | ) |   | (10 | ) |
| Increase                  in cash surrender value of bank owned life insurance                  policies                                                                                                                                                                                                                                                  |   |   | 62 |   |   | 59 |   |   | 122 |   |   | 121 |   |
| Other                  operating income                                                                                                                                                                                                                                                                                                                   |   |   | 96 |   |   | 39 |   |   | 122 |   |   | 85 |   |
| **Total                  other income**                                                                                                                                                                                                                                                                                                                   |   |   | 754 |   |   | 440 |   |   | 1,406 |   |   | 819 |   |
| **Other                  expenses**                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries                  and employee benefits                                                                                                                                                                                                                                                                                                           |   |   | 1,291 |   |   | 888 |   |   | 2,718 |   |   | 1,750 |   |
| Equipment                  and occupancy expense                                                                                                                                                                                                                                                                                                          |   |   | 318 |   |   | 286 |   |   | 635 |   |   | 563 |   |
| Marketing                  expense                                                                                                                                                                                                                                                                                                                        |   |   | 53 |   |   | 43 |   |   | 91 |   |   | 98 |   |
| Data                  processing expense                                                                                                                                                                                                                                                                                                                  |   |   | 179 |   |   | 160 |   |   | 341 |   |   | 306 |   |
| Administrative                  expenses                                                                                                                                                                                                                                                                                                                  |   |   | 192 |   |   | 150 |   |   | 603 |   |   | 313 |   |
| Legal                  and professional                                                                                                                                                                                                                                                                                                                   |   |   | 149 |   |   | 86 |   |   | 258 |   |   | 188 |   |
| Directors                  fees                                                                                                                                                                                                                                                                                                                           |   |   | 62 |   |   | 61 |   |   | 128 |   |   | 124 |   |
| Amortization                  of intangible assets                                                                                                                                                                                                                                                                                                        |   |   | 11 |   |   | 12 |   |   | 21 |   |   | 24 |   |
| Stationery                  and supply expense                                                                                                                                                                                                                                                                                                            |   |   | 52 |   |   | 47 |   |   | 114 |   |   | 91 |   |
| Other                  operating expenses                                                                                                                                                                                                                                                                                                                 |   |   | 193 |   |   | 143 |   |   | 358 |   |   | 235 |   |
| **Total                  other expense**                                                                                                                                                                                                                                                                                                                  |   |   | 2,500 |   |   | 1,876 |   |   | 5,267 |   |   | 3,692 |   |
| **Income                  before income taxes**                                                                                                                                                                                                                                                                                                           |   |   | 898 |   |   | 373 |   |   | 1,130 |   |   | 681 |   |
| Income                  tax expense                                                                                                                                                                                                                                                                                                                       |   |   | 286 |   |   | 96 |   |   | 359 |   |   | 190 |   |
| **Net                  Income**                                                                                                                                                                                                                                                                                                                           |   |   | 612 |   |   | 277 |   |   | 771 |   |   | 491 |   |
|                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                  earnings per share                                                                                                                                                                                                                                                                                                                 |   | $ | 0.21 |   | $ | 0.10 |   | $ | 0.26 |   | $ | 0.17 |   |
| Diluted** **earnings                  per share                                                                                                                                                                                                                                                                                                      |   | $ | 0.20 |   | $ | 0.09 |   | $ | 0.25 |   | $ | 0.16 |   |
| Weighted                  average common shares outstanding                                                                                                                                                                                                                                                                                               |   |   | 2,929,516 |   |   | 2,911,318 |   |   | 2,922,284 |   |   | 2,904,428 |   |
| Weighted                  average diluted common shares outstanding                                                                                                                                                                                                                                                                                       |   |   | 3,006,290 |   |   | 3,060,125 |   |   | 3,010,042 |   |   | 3,068,801 |   |
| Dividends                  Declared per share                                                                                                                                                                                                                                                                                                             |   | $ | .02 |   | $ | .02 |   | $ | .04 |   | $ | .04 |   |

----

| **Community                Capital Bancshares, Inc.****and                Subsidiaries****Consolidated                Statements of Comprehensive                Income                (unaudited)** |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|  Three                and six months ended June 30, 2006 and 2005(Dollars                in thousands)                                                                                          |   |
|                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                 |   | Three                Months Ended |   | Six                Months Ended |   |
|                                                                                                                                                                                                 |   | June                30, 2006 |   | June                30, 2005 |   | June                30, 2006 |   | June                30, 2005 |   |
|                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |
| **Net                Income**                                                                                                                                                                        |   | $ | 612 |   | $ | 277 |   | $ | 771 |   | $ | 491 |   |
| Other                comprehensive income (loss)                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                unrealized holding gains (losses) arising during the                period.                                                                                                       |   |   | (518 | ) |   | 597 |   |   | (620 | ) |   | (232 | ) |
| Tax                benefit (expense) on unrealized holding gains                                                                                                                                     |   |   | 176 |   |   | (203 | ) |   | 211 |   |   | 79 |   |
|                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  **Comprehensive                income (loss)**                                                                                                                                                 |   | $ | 270 |   | $ | 671 |   | $ | 362 |   | $ | 338 |   |
|                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| **Community                Capital Bancshares, Inc.****and                Subsidiaries****ConsolidatedStatements                of Cash Flows                (unaudited)** Six                Months ended June 30, 2006 and 2005(Dollars                in thousands) |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                            |   | 2006   |               | 2005   |   |
|-----------------------------------------------------------------------------------------------------------------|--------|--------|--------------------|--------|--------|
| **Cash                Flows from operating activities:**                                                        |   |   |               |   |   |   |   |
| Net                income                                                                                       |   | $      | 771                |   | $      | 491 |   |
| Adjustments                to reconcile net income to net cash provided by operating                activities: |   |   |               |   |   |   |   |
| Depreciation                                                                                                    |   |   | 236                |   |   | 217 |   |
| Amortization                of Core Deposit Premium                                                             |   |   | 21                 |   |   | 24 |   |
| Provision                for loan losses                                                                        |   |   | 812                |   |   | 430 |   |
| Provision                for deferred taxes                                                                     |   |   | (73                | )      |   | 37 |   |
| Increase                in interest receivable                                                                  |   |   | (237               | )      |   | (154 | ) |
| Other                operating activities                                                                       |   |   | 1,389              |   |   | (726 | ) |
| Net                cash provided by operating activities                                                        |   |   | 2,919              |   |   | 319 |   |
|                                                                                                            |   |   |               |   |   |   |   |
| **Cash                Flows from Investing Activities:**                                                        |
| Purchase                of property and equipment                                                               |   |   | (1,420             | )      |   | (1,811 | ) |
| Net                decrease in federal funds sold                                                               |   |   | 5,693              |   |   | 1,344 |   |
| Net                increase in loans                                                                            |   |   | (38,163            | )      |   | (43,325 | ) |
| Proceeds                from maturities of securities available for sale                                        |   |   | 1,273              |   |   | 906 |   |
| Proceeds                from sale of securities                                                                 |   |   | -                - |   |   | 1,980 |   |
| Purchase                of securities available for sale                                                        |   |   | (2,113             | )      |   | (554 | ) |
| Net                cash used in investing activities                                                            |   |   | (34,730            | )      |   | (41,460 | ) |
|                                                                                                            |   |   |               |   |   |   |   |
| **Cash                flows from Financing Activities:**                                                        |   |   |               |   |   |   |   |
| Net                increase in deposits                                                                         |   |   | 40,291             |   |   | 39,819 |   |
| Dividends                paid to shareholders                                                                   |   |   | (121               | )      |   | (119 | ) |
| Increase                in federal funds purchased                                                              |   |   | -                - |   |   | 480 |   |
| Proceeds                from exercise of stock options                                                          |   |   | 539                |   |   | 162 |   |
| Net                increase (decrease) in other borrowings                                                      |   |   | (8,000             | )      |   | 5,848 |   |
| Treasury                stock transactions, net                                                                 |   |   | -                - |   |   | 20 |   |
| Net                cash provided by financing activities                                                   |   |   | 32,709             |   |   | 46,209 |   |
| Net                increase in cash                                                                             |   |   | 898                |   |   | 5,068 |   |
| Cash                and due from banks at beginning of period                                                   |   |   | 6,931              |   |   | 5,515 |   |
| Cash                and due from banks at end of period                                                    |   |   | 7,829              |   |   | 10,583 |   |
|                                                                                                            |   |   |               |   |   |   |   |
| **Supplemental                Disclosure**                                                                      |   |   |               |   |   |   |   |
| Cash                paid for interest                                                                           |   | $      | 5,254              |   | $      | 2,120 |   |
| Income                taxes                                                                                     |   | $      | 200                |   | $      | -                - |   |
|                                                                                                            |   |   |               |   |   |   |   |
| **Non-Cash                Transaction**                                                                         |   |   |               |   |   |   |   |
| Unrealized                losses on securities available for sale                                               |   | $      | 620                |   | $      | 232 |   |

----

**Community      Capital Bancshares, Inc.**

**and      Subsidiaries**

**Notesto      Financial Statements**

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

**Nature      of Business **

**Basis      of Presentation**

*Consolidation      of Variable Interest Entities*

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**Income      Taxes**

**Stock      Compensation Plans **

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|                                              |   | **For                The Three** |   | **For                The Three** |   | **For                The Six**   |   | **For                The Six**   |   |
|---------------------------------------------------|--------|----------------------------------|--------|----------------------------------|--------|----------------------------------|--------|----------------------------------|--------|
|                                              |   | **Months                Ended**  |   | **Months                Ended**  |   | **Months                Ended**  |   | **Months                Ended**  |   |
|                                              |   | **June                30, 2006** |   | **June                30, 2005** |   | **June                30, 2006** |   | **June                30, 2005** |   |
|                                              |   | **($000)**                       |   | **($000)**                       |   | **($000)**                       |   | **($000)**                       |   |
|                                              |   |                             |   |                        |   |                        |   |                        |   |
| Net                income, as reported            |   | $                                | 612    |                             | $      | 277                              |   | $                                | 771    |   | $ | 491 |   |
| Add:                                              |   |                             |   |                             |   |                             |   |                             |   |   |   |   |   |
| Stock-based                employee compensation  |   |                             |   |                             |   |                             |   |                             |   |   |   |   |   |
| included                in reported net income,   |   |                             |   |                             |   |                             |   |                             |   |   |   |   |   |
| net                of related tax effects         |   |                             | 23     |                             |   | -                                |   |                             | 47     |   |   | - |   |
| Deduct:                                           |   |                             |   |                             |   |                             |   |                             |   |   |   |   |   |
| Total                stock-based employee         |   |                             |   |                             |   |                             |   |                             |   |   |   |   |   |
| compensation                expense               |   |                             |   |                             |   |                             |   |                             |   |   |   |   |   |
| determined                under fair value        |   |                             |   |                             |   |                             |   |                             |   |   |   |   |   |
| method,                net of related tax effects |   |                             | (23    | )                                |   | (22                              | )      |                             | (47    | ) |   | (44 | ) |
|                                              |   |                             |   |                             |   |                             |   |                             |   |   |   |   |   |
| Pro                forma net earnings             |   | $                                | 612    |                             | $      | 255                              |   | $                                | 771    |   | $ | 447 |   |
|                                              |   |                             |   |                             |   |                             |   |                             |   |   |   |   |   |
| Earnings                per share:                |   |                             |   |                             |   |                             |   |                             |   |   |   |   |   |
| Basic                - as reported                |   | $                                | 0.21   |                             | $      | 0.10                             |   | $                                | 0.26   |   | $ | 0.17 |   |
|                                              |   |                             |   |                             |   |                             |   |                             |   |   |   |   |   |
| Basic                - pro forma                  |   | $                                | 0.21   |                             | $      | 0.09                             |   | $                                | 0.26   |   | $ | 0.15 |   |
|                                              |   |                             |   |                             |   |                             |   |                             |   |   |   |   |   |
| Diluted                - as reported              |   | $                                | 0.20   |                             | $      | 0.09                             |   | $                                | 0.25   |   | $ | 0.16 |   |
|                                              |   |                             |   |                             |   |                             |   |                             |   |   |   |   |   |
| Diluted                - pro forma                |   | $                                | 0.20   |                             | $      | .08                              |   | $                                | 0.25   |   | $ | 0.15 |   |

|                                             |   | **Period                Ended**  |    |  **Year                Ended**        |   |
|--------------------------------------------------|--------|----------------------------------|---------|--------------------------------------------|--------|
|                                             |   | **June                30, 2006** |    |  **December                31, 2005** |   |
|                                             |   |                             |    |                                       |   |  **Weighted-** |   |   |   |    |   |   |   | **Weighted-** |   |   |   |
|                                             |   |                             |    |  **Weighted-**                        |   |  **Average** |   | **Aggregate** |   |    |   | **Weighted-** |   | **Average** |   | **Aggregate** |   |
|                                             |   |                             |    |  **Average**                          |   |  **Remaining** |   | **Intrinsic** |   |    |   | **Average** |   | **Remaining** |   | **Intrinsic** |   |
|                                             |   |                             |    |  **Exercise**                         |   |  **Contractual** |   | **Value** |   |    |   | **Exercise** |   | **Contractual** |   | **Value** |   |
|                                             |   | **Number**                       |    | **Price**                                  |   | **Term** |   | **($000)** |   |  **Number** |   | **Price** |   | **Term** |   | **($000)** |   |
|                                             |   |                             |    |                                       |   |   |   |   |   |    |   |   |   |   |   |   |   |
| Under                option, beginning           |   |                             | 374,621 |                                       |   | 9.81 |   |   | 6.37 |   | $ | 408 |   |   | 305,435 |   |   | 9.33 |   |   |   |   |   |   |   |
| of                the period:                    |   |                             |    |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Granted                                          |   |                             | 1,989   |                                       |   | 11.00 |   |   |   |   |   |   |   |   | 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                        |   |                             | 214,254 |                                       |   | 9.78 |   |   | 5.96 |   |   | 219 |   |   | 374,621 |   |   | 9.81 |   |   | 6.37 |   | $ | 408 |   |
|                                             |   |                             |    |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unvested                at the end of the period |   |                             | 84,793  |                                       |   | 11.14 |   |   | 7.66 |   |   | -                - |   |   | 168,190 |   |   | 11.43 |   |   | 8.50 |   | $ | -                - |   |
|                                             |   |                             |    |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Vested                and exercisable at the     |   |                             |    |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| end                of the period                 |   |                             | 129,463 |                                       |   | 11.60 |   |   | 4.84 |   |   | -                - |   |   | 206,431 |   |   | 8.32 |   |   | 4.64 |   | $ | 532 |   |
|                                             |   |                             |    |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average                fair             |   |                             |    |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| value                per option of options       |   |                             |    |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| granted                during the year           |   |                             |    |                                       |   |   |   |   |   |   | $ | 4.36 |   |   |   |   |   |   |   |   |   |   | $ | 3.76 |   |

----

|                                        | **Period                Ended**  |   | **Year                Ended**        |
|---------------------------------------------|----------------------------------|--------|--------------------------------------|
|                                        | **June                30, 2006** |   | **December                31, 2005** |
|                                        |                             |   |                                 |
| Risk-free                interest rate      | 5.06%                            |   | 4.40%                                |
| Expected                life of the options | 10                years          |   | 10                years              |
| Expected                dividend yield      | 0.78%                            |   | .78%                                 |
| Expected                volatility          | 20.85%                           |   | 14.83%                - 15.96%       |

|                                        |   | **Shares**         |   | **Weighted-Average****Grant-Date****Fair                Value** |
|---------------------------------------------|--------|--------------------|--------|-----------------------------------------------------------------|
|                                        |   |               |   |                                                            |
| Nonvested                at January 1, 2006 |   | 168,193       |   | $                4.17                                           |
| Granted                                     |   | -                - |   |                                                            |
| Vested                                      |   | (22,400)           |   |                                                            |
| Forfeited                                   |   | (61,000)           |   |                                                            |
| Nonvested                at June 30, 2006   |   | 84,793        |   | $                4.36                                           |

**Accounting      Standards **

----

**ITEM        2.     **
**MANAGEMENT’S****DISCUSSION        AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF        OPERATIONS**

**Financial      Condition**

----

|                                                                           |   | June                30, 2006 |        | December                31, 2005 |   |
|--------------------------------------------------------------------------------|--------|------------------------------|-------------|----------------------------------|--------|
| Interest                bearing demand and savings                             |   | $                            | 70,243,000  |                             | $      | 56,538,000 |   |
| Certificates                of deposit in denominations of $100,000 or greater |   |                         | 130,259,000 |                             |   | 113,197,000 |   |
| Other                Certificates of deposit                                   |   |                         | 63,058,000  |                             |   | 53,089,000 |   |
| Total                                                                          |   | $                            | 263,560,000 |                             | $      | 222,824,000 |   |

**Capital      Adequacy**

| Tier                1 Capital to risk weighted assets    |   |
|----------------------------------------------------------|--------|
| Ratio,                actual                             | 11.36% |
| Tier                1 Capital minimum requirement        | 4.00%  |
|                                                     |   |
| Tier                2 Capital to risk weighted assets    |   |
| Ratio,                actual                             | 12.61% |
| Tier                2 Capital minimum requirement        | 8.00%  |
|                                                     |   |
| Tier                1 Leverage Ratio                     | 8.57%  |
| 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 **

|                                        |   | June-06 |       | Dec-05 |   |
|---------------------------------------------|--------|---------|------------|--------|--------|
| Commitments                to extend credit |   | $       | 76,222,000 |   | $      | 71,362,000 |   |
| Standby                letters of credit    |   | $       | 1,045,000  |   | $      | 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**

----

----

**PARTII**

| **ITEM              1.** | **LEGAL                PROCEEDINGS** |
|--------------------------|--------------------------------------|

| **ITEM              1.A.** | **RISKFACTORS** |
|----------------------------|-----------------|

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

| **ITEM              3.** | **DEFAULTSUPON                SENIOR                SECURITIES** |
|--------------------------|------------------------------------------------------------------|

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

|                                 |                     |                          |
|--------------------------------------|--------------------------|-------------------------------|
| Directors                            | Votes                For | Votes                Withheld |
| Keith                G. Beckham      | 2,781,480                |   52,241            |
| Hal                E. Cobb           | 2,768,101                |   65,520            |
| Charles                M. Jones, III | 2,542,086                | 291,635                       |
| Van                Cise Knowles      | 2,732,577                |                  49,787  |
| William                F. McAfee     | 2,732,577                |   49,787            |

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

----

| **ITEM              6.** | **EXHIBITS** |
|--------------------------|--------------|

| **10.21**      | Agreement                by and between Albany Bank and Trust, N.A., Albany, Georgia and The                Comptroller of the Currency dated July 27, 2006.                                                           |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|           |                                                                                                                                                                                                                   |
| **10.22**      | ** **Agreement                by and between AB&T National Bank, Dothan, Alabama and The Comptroller                of the Currency dated July 27, 2006.                                                      |
|           |                                                                                                                                                                                                                   |
| **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.**                                                                                         |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|
|                           |                                                                                                                                        |
|                           |                                                                                                                                        |
| August                14, 2006 |                  /s/ Charles M. Jones, III                                                                    |
| Date                           | Charles                M. Jones,                                                                                                            |
|                           | Chief                Executive Officer                                                                                                      |
|                           |                                                                                                                                        |
|                           |                                                                                                                                        |
|                           |                                                                                                                                        |
| August                14, 2006 |  /s/                David J.                Baranko                        |
| Date                           | David                J. Baranko                                                                                                             |
|                           | Chief                Financial Officer (Duly                authorized officer and principal financial                / accounting officer) |