U.S. SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                   FORM 10-QSB

(Mark One)

 X   Quarterly report under Section 13 or 15(d) of the Securities Exchange
---  Act of 1934 for the quarterly period ended March 31, 2003.

     Transition report under Section 13 or 15(d) of the Exchange Act
---  For the transition period from                 to
                                     ---------------    ----------------

                          Commission File No. 333-25179

                     PEOPLE'S COMMUNITY CAPITAL CORPORATION
        (Exact Name of Small Business Issuer as Specified in its Charter)

          SOUTH CAROLINA                               58-2287073
   (State of Incorporation)              (I.R.S. Employer Identification No.)

               125 PARK AVENUE, S.W., AIKEN, SOUTH CAROLINA 29801
                    (Address of Principal Executive Offices)

                                 (803) 641-0142
                (Issuer's Telephone Number, Including Area Code)

                                 NOT APPLICABLE
              (Former Name, Former Address and Former Fiscal Year,
                         if Changed Since Last Report)




     State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date: 1,098,283 shares of common
stock, par value $.01 per share, outstanding at May 8, 2003.

     Transitional Small Business Disclosure Format (check one): Yes      No  X
                                                                    ---     ---



                                       1
<PAGE>


PART I - FINANCIAL INFORMATION

Item 1.   Financial Statements.

<TABLE>
<CAPTION>
                     People's Community Capital Corporation
                           Consolidated Balance Sheets

                                                                                 March 31,            December 31,
                                                                                   2003                   2002
                                                                                   ----                   ----
                                                                                (Unaudited)            (Audited)

                                                       Assets
<S>                                                                            <C>                    <C>
Cash and due from banks                                                        $  3,144,435           $  3,311,246
Federal funds sold                                                                8,456,000              7,209,000
Short-term investments                                                            2,935,729              1,989,500
Securities, available for sale (at fair value)                                   21,767,724             20,558,456
Securities, held to maturity (at amortized cost)                                  4,831,828              4,845,138
Loans receivable, net                                                            60,834,589             59,949,057
Properties and equipment, net                                                     3,031,573              3,061,141
Accrued interest receivable                                                         422,076                500,289
Other real estate owned                                                             378,880                378,880
Other assets                                                                        174,804                212,434
                                                                               ------------           ------------
         Total assets                                                          $105,977,638           $102,015,141
                                                                               ============           ============

                                        Liabilities and Shareholders' Equity
Liabilities:
     Non-interest bearing deposits                                             $ 13,734,206           $ 11,748,878
     Interest bearing deposits                                                   77,278,572             74,902,613
                                                                               ------------           ------------
         Total deposits                                                          91,012,778             86,651,491
     Accrued interest payable                                                        69,711                 71,151
     Federal Home Loan Bank advance                                               2,500,000              2,500,000
     Other borrowings                                                               271,025                954,590
     Accrued expenses and other liabilities                                         248,902                192,935
                                                                               ------------           ------------
         Total liabilities                                                       94,102,416             90,370,167
                                                                               ------------           ------------

Shareholders' equity:
     Common stock, $.01 par value; 10,000,000 shares authorized,
         1,098,283 shares issued at March 31, 2003 and 1,046,193
         at December 31, 2002                                                        10,983                 10,462
     Additional paid-in-capital                                                  11,025,904             10,411,763
     Retained earnings                                                              708,824              1,093,901
     Accumulated other comprehensive income                                         129,511                128,848
                                                                               ------------           ------------
         Total shareholders' equity                                              11,875,222             11,644,974
                                                                               ------------           ------------

         Total liabilities and shareholders' equity                            $105,977,638           $102,015,141
                                                                               ============           ============

</TABLE>




          See accompanying Notes to Consolidated Financial Statements.


                                       2
<PAGE>

<TABLE>
<CAPTION>
                     People's Community Capital Corporation
                        Consolidated Statements of Income
                                   (Unaudited)
                                                                               For the three months
                                                                                  ended March 31,
                                                                               ---------------------
                                                                               2003             2002
                                                                               ----             ----
<S>                                                                        <C>               <C>
Interest income:
         Loans, including fees                                             $  999,298        $  980,850
         Federal funds sold                                                    23,232            20,592
         Securities, short-term investments, and cash                         189,517           265,792
                                                                           ----------        ----------
                  Total interest income                                     1,212,047         1,267,234
                                                                           ----------        ----------

Interest expense:
         Deposits                                                             336,944           464,381
         Other borrowings                                                      23,457             2,339
                                                                           ----------        ----------
                  Total interest expense                                      360,401           466,720
                                                                           ----------        ----------

Net interest income                                                           851,646           800,514
Provision for loan losses                                                      30,000            48,248
         Net interest income after provision                                  821,646           752,266
         for loan losses                                                   ----------        ----------

Non-interest income:
         Service charges on deposit accounts                                  140,308           136,381
         Gain on sale of securities                                            26,712                 -
         Insurance and brokerage commissions                                   29,118            34,651
         Other                                                                 90,172            55,958
                                                                           ----------        ----------
                  Total non-interest income                                   286,310           226,990
                                                                           ----------        ----------

Non-interest expenses:
         Salaries and employee benefits                                       449,780           397,514
         Occupancy and equipment                                               82,341            73,189
         Consulting and professional fees                                      67,278            53,502
         Customer related                                                      29,385            23,507
         General operating                                                     97,940           113,648
         Other                                                                 44,971            35,190
                                                                           ----------        ----------
                  Total non-interest expenses                                 771,695           696,550
                                                                           ----------        ----------

Income before income taxes                                                    336,261           282,706
Income tax provision                                                          104,083            89,413
                                                                           ----------        ----------
Net income                                                                 $  232,178        $  193,293
                                                                           ==========        ==========

Weighted average common shares outstanding:
         Basic                                                              1,082,077         1,094,932
         Diluted                                                            1,156,665         1,159,663

Earnings per share:
         Basic                                                             $      .21        $      .18
         Diluted                                                           $      .20        $      .17

</TABLE>


          See accompanying Notes to Consolidated Financial Statements.



                                       3
<PAGE>

                     People's Community Capital Corporation
                 Consolidated Statements of Comprehensive Income
                                   (Unaudited)

                                                           For the three months
                                                             ended March 31,
                                                             ---------------
                                                            2003         2002
                                                            ----         ----

Net income                                              $ 232,178     $ 193,293

Other comprehensive income (loss), net of tax:
   Net change in unrealized gain (loss) on
   securities available for sale                           41,586       (37,399)

   Less: Reclassification adjustment for gains, net
   of taxes of $9,474 in 2003 and $0 in 2002               14,211            -
                                                        ---------     ---------

         Total other comprehensive income (loss)           27,375       (37,399)

Comprehensive income                                    $ 259,553     $ 155,894
                                                        =========     =========








          See accompanying Notes to Consolidated Financial Statements.



                                       4
<PAGE>


<TABLE>
<CAPTION>
                     People's Community Capital Corporation
                      Consolidated Statements of Cash Flows
                                   (Unaudited)
                                                                                     For the three months
                                                                                       ended March 31,
                                                                                       ---------------
                                                                                  2003                2002
                                                                                  ----                ----

<S>                                                                           <C>                 <C>
Operating activities:
    Net income                                                                $   232,178         $   193,293
    Adjustments to reconcile net income to net cash provided by
      operating activities:
         Depreciation and amortization                                             47,742              52,141
         Provision for loan losses                                                 30,000              48,248
         Amortization of held to maturity investments                              13,310                   -
    Changes in deferred and accrued amounts:
         Other assets and accrued interest receivable                             115,843              (6,832)
         Accrued expenses and other liabilities                                    54,527              20,841
                                                                              -----------         -----------

                Net cash provided by operating activities                         493,600             307,691
                                                                              -----------         -----------

Investing activities:
    Activity in securities available for sale
         Sales                                                                  3,796,841                   -
         Purchases                                                             (7,894,500)                  -
         Maturities and calls                                                   2,889,054           1,167,707
    Net increase in short-term investments                                       (946,229)           (514,986)
    Purchases of property and equipment                                           (18,174)            (32,467)
    Loan originations and principal collections - net                            (915,532)         (4,537,829)
    Net increase in federal funds sold                                         (1,247,000)         (1,470,000)
                                                                              -----------         -----------

                Net cash used for investing activities                         (4,335,540)         (5,387,575)
                                                                              -----------         -----------

Financing activities:
    Issuance of stock                                                                   -              15,999
    Net increase in deposits                                                    4,361,287           4,136,191
    Net decrease in other borrowings                                             (683,565)                  -
    Payment of dividends                                                           (2,593)             (2,880)
                                                                              -----------         -----------

                Net cash provided by financing activities                       3,675,129           4,149,310
                                                                              -----------         -----------

                Net decrease in cash and due from banks                          (166,811)           (930,574)
Cash and due from banks at  beginning of period                                 3,311,246           3,043,209
                                                                              -----------         -----------
Cash and due from banks at end of period                                      $ 3,144,435         $ 2,112,635
                                                                              ===========         ===========

Supplemental disclosure:
    Cash paid during the period for interest                                  $   361,841         $   466,854
                                                                              -----------         -----------
    Income taxes paid                                                         $     2,292         $     6,500
                                                                              -----------         -----------
    Unrealized net gain (loss) on securities available for sale,
      net of income tax                                                       $    27,375         $   (37,399)
                                                                              -----------         -----------
</TABLE>



          See accompanying Notes to Consolidated Financial Statements.


                                       5
<PAGE>


                     People's Community Capital Corporation
                   Notes to Consolidated Financial Statements
                                   (Unaudited)

Note 1.       Basis of Presentation

       The accompanying  unaudited  consolidated  financial statements have been
prepared in accordance  with  accounting  principles  generally  accepted in the
United  States  of  America  for  interim  financial  information  and  with the
instructions  to Form 10-QSB and Item 310(b) of Regulation S-B of the Securities
and Exchange Commission. Accordingly, they do not include all of the information
and footnotes required by accounting principles generally accepted in the United
States of America for complete financial statements.  However, in the opinion of
management,   all  adjustments  (consisting  of  normal  recurring  adjustments)
considered  necessary  for a fair  presentation  have been  included.  Operating
results for the three months ended March 31, 2003 are not necessarily indicative
of the results that may be expected for the year ending  December 31, 2003.  For
further information,  please refer to the consolidated  financial statements and
footnotes  thereto  for the  Company's  fiscal  year ended  December  31,  2002,
included in the Company's Form 10-KSB for the year ended December 31, 2002.

Note 2.     Summary of organization

       People's Community Capital Corporation was incorporated in South Carolina
on February 26, 1997 for the purpose of operating as a bank holding company. Our
wholly-owned  subsidiary,  People's Community Bank of South Carolina,  commenced
business on  September  22, 1997,  and is  primarily  engaged in the business of
accepting  savings and demand  deposits  and  providing  mortgage,  consumer and
commercial  loans to the general  public.  Our bank operates two banking centers
located in Aiken and one located in North Augusta, South Carolina.

       The second  banking  center  located in Aiken was opened on  September 8,
1998 in leased offices that were the headquarters of the holding company. In May
2001, we moved our banking center and holding  company  headquarters  to a newly
constructed  building  nearby.  At this time, the downtown Aiken location of our
bank became the main office.

       In  December  1999,  our bank  formed a  subsidiary,  People's  Financial
Services,  Inc., for the purpose of providing  comprehensive  financial planning
services in addition to full service brokerage,  including stocks, bonds, mutual
funds, and insurance products.

Note 3.       Stock option plan

       SFAS No. 123, "Accounting for Stock-Based  Compensation",  encourages all
entities to adopt a fair value based method of  accounting  for  employee  stock
compensation  plans,  whereby  compensation  cost is  measured at the grant date
based on the value of the award and is recognized over the service period, which
is usually the vesting period.  However, it also allows an entity to continue to
measure compensation cost for those plans using the intrinsic value based method
of accounting  prescribed by Accounting  Principals  Board (APB) Opinion No. 25,
"Accounting  for Stock Issued to Employees",  whereby  compensation  cost is the
excess,  if any, of the quoted  market  price of the stock at the grant date (or
other  measurement  date) over the amount an  employee  must pay to acquire  the
stock.  Stock options issued under the  Corporation's  stock option plan have no
intrinsic  value at the grant date,  and under  Opinion No. 25, no  compensation
cost is recognized.



                                       6
<PAGE>

       The  Corporation  sponsors a stock option plan (the Plan) for the benefit
of the  directors,  officers  and  employees.  The Board may grant up to 289,406
options  (adjusted for 5% stock dividends  issued March 2001,  January 2002, and
January 2003).  The  Corporation has adopted the  disclosure-only  provisions of
SFAS  No.  123,  "Accounting  for  Stock-Based  Compensation".  Accordingly,  no
compensation   cost  has  been   recognized  for  the  stock  option  plan.  Had
compensation  cost been determined based on the fair value at the grant date for
the above stock option awards  consistent  with the  provisions of SFAS No. 123,
the  Corporation's net income and earnings per share would have been adjusted to
the proforma amounts indicated below:

                                                     For the three months ended
                                                              March 31,
                                                     --------------------------
                                                        2003            2002
                                                     ----------      ----------
       Net income - As reported                       $ 232,178      $ 193,293
       Net income - Proforma                            218,753        185,488
       Earnings per share - As reported
       Basic                                                .21            .18
       Diluted                                              .20            .17
       Earnings per share - Proforma
       Basic                                                .20            .17
       Diluted                                              .19            .16

       The fair  value of the  option  grant is  estimated  on the date of grant
using the  Black-Scholes  option pricing model. The risk free interest rate used
was 4.77%, the expected option life was ten years, the assumed dividend rate was
zero and the expected volatility was 8.0%.





                                       7
<PAGE>


Item 2.   Management's Discussion and Analysis or Plan of Operation.

       This  discussion  and  analysis  is  intended  to  assist  the  reader in
understanding our financial condition and results of operations.

       This report contains  "forward-looking  statements"  relating to, without
limitation, future economic performance,  plans and objectives of management for
future  operations,  and  projections of revenues and other financial items that
are based on the beliefs of our management,  as well as assumptions  made by and
information   currently  available  to  our  management.   The  words  "expect,"
"anticipate,"  and  "believe," as well as similar  expressions,  are intended to
identify  forward-looking  statements.  Our actual results may differ materially
from the results discussed in the forward-looking  statements, and our operating
performance each quarter is subject to various risks and uncertainties  that are
discussed in detail in our filings with the Securities and Exchange Commission.

     o   significant  increases  in  competitive  pressure  in the  banking  and
         financial services industries;

     o   changes in the interest rate environment which could reduce anticipated
         or actual margins;

     o   changes  in  political  conditions  or the  legislative  or  regulatory
         environment;

     o   general  economic  conditions,  either  nationally  or  regionally  and
         especially  in primary  service  area,  becoming  less  favorable  than
         expected  resulting in, among other things,  a deterioration  in credit
         quality;

     o   changes occurring in business conditions and inflation;

     o   changes in technology;

     o   changes in monetary and tax policies;

     o   the level of allowance for loan loss;

     o   the rate of delinquencies and amounts of charge-offs;

     o   the rates of loan growth;

     o   adverse  changes in asset  quality and  resulting  credit  risk-related
         losses and expenses;

     o   changes in the securities markets; and

     o   other risks and uncertainties detailed from time to time in our filings
         with the Securities and Exchange Commission.

CRITICAL ACCOUNTING POLICIES
----------------------------

       We have adopted various accounting  policies which govern the application
of  accounting  principles  generally  accepted  in  the  United  States  in the
preparation of our financial statements.  The significant


                                      8
<PAGE>

accounting  policies  of the  company  are  described  in the  footnotes  to the
consolidated  financial  statements  at December 31, 2002 as filed on our 10-KSB
for that date.

       Certain accounting policies involve significant judgments and assumptions
by  management  which have a material  impact on the  carrying  value of certain
assets and  liabilities;  management  considers such  accounting  policies to be
critical accounting  policies.  The judgments and assumptions used by management
are based on historical  experience and other factors,  which are believed to be
reasonable under the  circumstances.  Because of the nature of the judgments and
assumptions made by management, actual results could differ from these judgments
and  estimates  which  could have a material  impact on the  carrying  values of
assets and liabilities and the results of operations of our company.

       We believe the allowance for loan losses is a critical  accounting policy
that requires the most  significant  judgments and estimates used in preparation
of  our  consolidated  financial  statements.  Refer  to  the  discussion  under
Allowance for Loan Losses section of this document for a detailed description of
our estimation process and methodology related to the allowance for loan losses.

FINANCIAL CONDITION AND RESULTS OF OPERATIONS
---------------------------------------------

EARNINGS REVIEW

       Our net income for the first  quarter of 2003 was  $232,178  compared  to
$193,293 for the same period last year, an increase of 20%. The basic income per
share  increased to $.21 compared to $.18 for the same period in 2002.  Weighted
shares  outstanding  have been  adjusted  for the effect of a 5% stock  dividend
issued on January 29, 2003. The  improvement in earnings  reflects the continued
growth in the level of earning assets since the bank commenced  operations.  The
level of average  earning  assets was $96.3  million for the three  months ended
March 31, 2003 as compared to $81.5 million for the three months ended March 31,
2002.

       Net interest income  represents the difference  between interest received
or accrued on interest  earning  assets and interest paid or accrued on interest
bearing liabilities.  The following presents, in a tabular form, average balance
sheets  that  highlight  the main  components  of  interest  earning  assets and
interest  bearing  liabilities,  on an  annualized  basis,  for the three  month
periods ended March 31, 2003 and 2002.  Yields are derived by dividing income or
expense by the  average  balance  of the  corresponding  assets or  liabilities.
Average balances have been derived from daily averages.


                                       9
<PAGE>




<TABLE>
<CAPTION>
                                      Three months ended March 31, 2003            Three months ended March 31, 2002
                                      ---------------------------------            ---------------------------------
                                  Average           Interest        Yield       Average          Interest          Yield
                                  Balance        Income/Expense     /Rate       Balance       Income/Expense       /Rate
                                  -------        --------------     -----       -------       --------------       -----
<S>                             <C>            <C>                  <C>       <C>              <C>                 <C>
ASSETS
Cash                            $     3,827    $         4          0.42%     $    10,004      $       34          1.38%
Federal funds sold                7,959,948         23,232          1.18%       4,931,580          20,592          1.69%
Short-term investments            2,918,548         21,981          3.05%       1,315,213          13,494          4.16%
Securities                       25,243,496        167,532          2.69%      23,106,230         252,264          4.43%
Loans                            60,176,650        999,298          6.73%      52,129,788         980,850          7.63%
                                -----------    -----------                    -----------      ----------
Total earnings assets            96,302,469      1,212,047          5.10%      81,492,815       1,267,234          6.31%
                                -----------    -----------                    -----------      ----------

Cash and due from banks           2,554,590                                     2,228,401
Premises and equipment            3,051,083                                     3,167,770
Other assets                      1,277,729                                     1,190,049
Allowance for loan losses          (849,709)                                     (650,360)
                                -----------                                   -----------
         Total assets           102,336,162                                    87,428,675
                                ===========                                   ===========

LIABILITIES & EQUITY
Interest-bearing deposits:
Transaction accounts             13,157,324         13,749          0.42%       9,070,991          12,340          0.55%
Money market accounts            11,964,891         29,504          1.00%      11,919,651          57,013          1.94%
Savings deposits                 12,878,021         43,684          1.38%      13,117,772          77,546          2.40%
Time deposits                    36,711,645        250,007          2.76%      31,628,920         317,482          4.07%
                                -----------    -----------                    -----------      ----------
    Total interest bearing
    deposits                     74,711,881        336,944          1.83%      65,737,334         464,381          2.86%
Interest-bearing borrowings       2,782,730         23,457          3.42%         682,196           2,339          1.39%
                                -----------    -----------                    -----------      ----------
    Total interest bearing
liabilities                      77,494,611        360,401          1.89%      66,419,530         466,720          2.85%
                                -----------    -----------                    -----------      ----------

Demand deposits                  12,876,321                                    10,251,604
Other liabilities                   314,887                                       188,498
Shareholders' equity             11,650,343                                    10,569,043
                              -------------                                  ------------
    Total liabilities &
shareholders' equity          $ 102,336,162                                  $ 87,428,675
                              =============                                  ============

Net interest spread                                                 3.21%                                          3.46%

Net interest income/margin                     $   851,646          3.59%                      $  800,514          3.98%
                                               ===========                                     ==========
</TABLE>

       Net  interest  income was  $851,646  for the three months ended March 31,
2003 as  compared  to  $800,514  for the three  months  ended  March  31,  2002,
representing a 6% increase. The net interest margin (net interest income divided
by average  earning  assets) was 3.59% for the three months ended March 31, 2003
compared to the net  interest  margin of 3.98% for the three  months ended March
31, 2002. The decline in net interest  margin is due to the lower yield realized
as interest rates  continued to decline.  Rates paid on deposits also decreased,
but the  volume of  earning  assets  exceeded  the  volume of  interest  bearing
liabilities, having the effect of a net decrease in margins.

       Interest  income  for the  first  three  months  of 2003  was  $1,212,047
compared  to  $1,267,234  for the same  period in 2002.  The  volume of  average
earning assets increased by  approximately  $15 million between the two


                                       10
<PAGE>


periods,  however  interest income  declined  because the average rate earned on
assets decreased from 6.31% to 5.10%.  The largest  component of interest income
was interest and fees on loans  amounting to $999,298 for the three months ended
March 31, 2003 compared to $980,850 for the  comparable  prior year period.  The
average  loan  balance  increased  by $8 million.  The overall  rate on the loan
portfolio  decreased  from 7.63% for the three  months  ended  March 31, 2002 to
6.73% for the  three-month  period  ended  March 31,  2003.  Interest  earned on
federal funds sold increased slightly from $20,592 for the first quarter of 2002
to $23,232 for the first quarter of 2003 as the average balance  increased by $3
million  but the  average  rate  fell  from  1.69%  to  1.18%.  The  securities,
short-term investments portfolio,  and interest-earning cash earned $265,792 for
the first three months of 2002 with a yield of 4.41%. For the first three months
of 2003,  these  investments  earned $189,517 with a yield of 2.73%. The average
balance  outstanding  increased from $24,431,447 to $28,165,871,  an increase of
approximately $3.7 million.

       Interest expense decreased from $466,720 for the three months ended March
31, 2002 to $360,401 for the three months ended March 31, 2003. The decrease was
the  direct  result  of the  decrease  in  rates  paid  on  deposits  and  other
liabilities,  from an average of 2.85% for the first quarter last year to a rate
of 1.89% this year. Actual  interest-bearing  liabilities,  primarily  deposits,
increased from $66,419,530 to $77,494,611, an increase of 17%.

Non-interest Income
-------------------

       Non-interest  income for the three-month  period ended March 31, 2003 was
$286,310  compared  to  $226,990  for the same  period in 2002.  Of this  total,
$140,308  represented  service charges on deposit  accounts for the three months
ended March 31, 2003  compared to $136,381  for the  comparable  period in 2002.
There were gains on sale of securities for the first quarter of 2003 of $26,712.
There  were no  comparable  gains in the first  quarter of 2002.  Insurance  and
brokerage  commissions  generated by our  subsidiary  were $29,118 for the first
quarter of 2003 compared to $34,651 for the first  quarter of 2002.  The $90,172
of other  non-interest  income  for the first  three  months of 2003 was  income
generated  from other fees charged  including  brokered  mortgage  fees.  Income
generated from other fees was $55,958 last year for the first quarter.  In 2003,
the brokered mortgage  origination fees were $43,904 compared to $26,839 for the
same period last year as customers continued to take advantage of lower rates to
refinance their home loans.

Non-interest Expense
--------------------

       Non-interest expense for the three-month periods ended March 31, 2003 and
2002  was  $771,695  and  $696,550,   respectively.  The  largest  component  of
non-interest  expense  was  salaries  and  employee  benefits  of  $449,780  and
$397,514, respectively, representing a 13% increase. This increase is the result
of general  increases in salaries and benefits as well as expenses paid pursuant
to a severance  agreement.  Consulting  and  professional  fees  increased  from
$53,502  to  $67,278,  or 26%,  primarily  due to legal  services  performed  in
connection  with a real estate  foreclosure.  Without the  additional  severance
expense and legal fees paid in the first  quarter,  non-interest  expenses would
have only increased approximately 5% from the first quarter of 2002 to the first
quarter of 2003.

Provision for Loan Losses
-------------------------

       The provision for loan losses was $30,000 and $48,248,  respectively, for
the first three months of 2003 and 2002,  bringing the total reserve  balance to
$870,000  and  $685,000  at March 31, 2003 and 2002,  respectively.  This amount
represents  1.41% of gross loans at March 31,  2003,  compared to 1.25% at March
31, 2002. It also reflects our estimate of the amounts necessary to maintain the
allowance for loan losses at a level

                                       11
<PAGE>


believed to be adequate in relation to the current size,  mix and quality of the
loan  portfolio.  See the  description  of the  allowance for loan losses below.
However, our judgment as to the adequacy of the allowance is based upon a number
of assumptions  about future events that we believe to be reasonable,  but which
may or may not be accurate.  Because of the inherent  uncertainty of assumptions
made during the evaluation  process,  there can be no assurance that charge-offs
in  future  periods  will not  exceed  the  allowance  for loan  losses  or that
additional  increases in the loan loss  allowance  will not be required.  We had
$532,478 in loans that were classified as non-accrual at March 31, 2002 compared
to $100 in non-accrual loans at March 31, 2003. The non-accrual balance at March
31,  2002  resulted in the  foreclosure  of real estate now shown on the balance
sheet as other  real  estate  owned in the  amount of  $378,880.  There  were no
charge-offs  for the period ended March 31, 2003 and net  charge-offs  were $248
for the period ended March 31, 2002.

BALANCE SHEET REVIEW

       Total  consolidated  assets  grew  by  $3,962,497  from  $102,015,141  at
December 31, 2002 to  $105,977,638 at March 31, 2003. The increase was generated
primarily through a $4,361,287  increase in deposits.  This increase in deposits
was the source of funding for increases in net loans,  in federal funds sold, in
short-term investments, and in the securities portfolio. We purchased $77,900 of
stock  in the  Federal  Home  Loan  Bank  to  satisfy  minimum  stock  ownership
requirements during the first quarter of 2003.

Loans
-----

       Outstanding loans represent the largest component of earning assets as of
March 31, 2003 at $60,834,589, or approximately 62% of total earning assets. Net
loans increased $885,532,  or 1.5%, since December 31, 2002. The decline in loan
growth is indicative of the slowing economy.

       The  interest  rates  charged  on loans  vary  with the  degree  of risk,
maturity and amount of the loan.  Competitive  pressures,  money  market  rates,
availability of funds, and government regulations also influence interest rates.
The average  yield on our loans for the period ended March 31, 2003 was 6.73% as
compared to a yield of 7.24% for the year ended December 31, 2002.

       The  principal  components  of our loan  portfolio  at March 31, 2003 and
December 31, 2002, consisted of real estate loans comprising approximately 87.5%
and 86.7% of total loans, respectively.  Real estate loan means any loan secured
by real estate, regardless of the purpose of the loan. It is common practice for
financial  institutions in our market area to obtain a security interest in real
estate whenever possible,  in addition to any other available  collateral.  This
collateral is taken to reinforce the likelihood of the ultimate repayment of the
loan and tends to increase the magnitude of the real estate portfolio component.


                                       12
<PAGE>

The following table shows the composition of the loan portfolio by category.

<TABLE>
<CAPTION>
                                                                     March 31, 2003                December 31, 2002
                                                                     --------------                -----------------
                                                            Amount             Percent       Amount             Percent
                                                            ------             -------       ------             -------

<S>                                                        <C>                    <C>         <C>                 <C>
       Commercial, financial & agricultural                 $ 5,889,209           9.5%         $ 6,262,045        10.3%
       Real estate
            Mortgage - residential                           17,502,845          28.3%          18,045,181        29.6%
            Mortgage - commercial                            36,319,268          58.8%          34,397,045        56.5%
            Other                                               271,014           0.4%             377,190         0.6%
       Consumer and other                                     1,801,795           2.9%           1,779,141         2.9%
       Other                                                     19,870           0.1%              15,714         0.1%
                                                           ------------         ------        ------------       ------
                      Total loans                            61,804,001         100.0%          60,876,316       100.0%
         Allowance for loan losses                             (870,000)                          (840,000)
         Unearned fees                                          (99,412)                           (87,259)
                                                           ------------                        -----------
                      Total net loans                       $60,834,589                        $59,949,057
                                                            ===========                        ===========
</TABLE>

Allowance for Loan Losses
-------------------------

       The allowance for loan losses at March 31, 2003 was $870,000, or 1.41% of
loans  outstanding,  compared to an  allowance  of  $840,000,  or 1.38% of loans
outstanding,  at December 31, 2002.  The allowance for loan losses is based upon
our  continuing  evaluation  of the  collectibility  of loans based  somewhat on
historical loan loss experience,  but primarily on current  economic  conditions
affecting the ability of borrowers to repay, the volume of loans, the quality of
collateral  securing   non-performing  and  problem  loans,  and  other  factors
deserving  recognition.  The bank's  policy has been to review the allowance for
loan losses  using a reserve  factor for each type of loan since there have been
few delinquencies and little charge-off activity since the bank's inception. The
overall  objective  is to apply  percentages  to the loans based on the relative
inherent  risk for that loan type and grade.  Reserve  factors are based on peer
group data,  information from regulatory agencies,  and on the experience of our
bank's lenders.  The reserve factors will change depending on trends in national
and local economic  conditions,  the depth of experience of our bank's  lenders,
delinquency  trends,  and other  factors.  The  bank's  general  strategy  is to
maintain a minimum coverage of a certain  percentage of gross loans until it has
sufficient historical data and trends available.

Short-Term Investments and Securities
-------------------------------------

       Short-term  investments and securities  represented 30% of earning assets
at March 31, 2003, or  $29,535,281.  This  represented an increase of $2,142,187
from the  December  31,  2002  balance of  $27,393,094.  The  combined  yield on
short-term investments and securities was 2.73% for the three months ended March
31, 2003  compared to 3.97% for the year ended  December  31,  2002.  Short-term
investments  at March 31, 2003 and at December 31, 2002  consisted of commercial
paper  in  another  financial   institution  with  balances  of  $2,935,729  and
$1,989,500,  respectively. Included in available-for-sale securities is $274,200
of stock  purchased in the Federal Home Loan Bank of Atlanta,  of which  $77,900
was purchased in the first quarter of 2003. This purchase was a requirement from
the FHLB as a condition of membership. A portion of our securities portfolio has
been  classified  as held to maturity  and is recorded at  amortized  cost.  The
available for sale portfolio is recorded at fair value.

                                       13
<PAGE>


Deposits
--------

       Our  primary  source  of funds for loans  and  investments  is  deposits.
Deposits grew $4,361,287,  or 5%, since year-end 2002 for a total of $91,012,778
at March 31, 2003.  The average  rates paid on  interest-bearing  deposits  were
1.83%  and 2.31% at March 31,  2003 and  December  31,  2002,  respectively.  In
pricing  deposits,  we consider our liquidity needs, the direction and levels of
interest  rates,  and local  market  conditions.  We have seen a decrease in the
price of our deposits due to declining  rates in the general  economy and in the
local market.

Shareholders' Equity
--------------------

       The Board of Directors  declared a 5% stock  dividend which was issued on
January 29, 2003 to  shareholders  of record on January 15, 2003.  The number of
shares  issued was 52,090 with a market value of $11.80 for a total  decrease in
retained earnings of $614,662.  Cash paid in lieu of stock for fractional shares
totaled $2,593.

Liquidity and Sources of Capital
--------------------------------

       At March 31, 2003,  our liquid  assets,  consisting  of cash and due from
banks and Federal funds sold,  amounted to  $11,600,435,  representing  10.9% of
total assets.  Short-term  investments and securities  equaled  $29,535,281,  or
27.9% of total assets.  These securities provide a secondary source of liquidity
because  they can be  converted  into cash in a timely  manner.  Our  ability to
maintain and expand our deposit base and borrowing capabilities also serves as a
source of  liquidity.  For the  three-month  period ended March 31, 2003,  total
deposits  increased by $4,361,287  representing  an increase of 5%, or 20% on an
annualized  basis.  Growth for the first quarter of the year is not  necessarily
indicative of expected  growth for the remainder of the year. We closely monitor
and  seek  to  maintain  appropriate  levels  of  interest-earning   assets  and
interest-bearing liabilities so that maturities of assets are such that adequate
funds are provided to meet customer withdrawals and loan demand.

       We plan to meet future cash needs  through the  liquidation  of temporary
investments,  maturities of loans and investment  securities,  and generation of
deposits.  In addition,  the bank  maintains two unsecured  lines of credit from
correspondent banks, one in the amount of $2,400,000 and another for $1,800,000.
The bank is also a member  of the  Federal  Home Loan Bank  (FHLB),  from  which
additional applications may be made for borrowing capabilities, if needed.

       The bank currently  maintains a level of  capitalization in excess of the
minimum capital requirements set by the regulatory agencies. Despite anticipated
asset growth,  we expect  capital ratios to continue to be adequate for the next
two to three years. However, no assurances can be given in this regard, as rapid
growth, deterioration in loan quality, and operating losses, or a combination of
these factors, could change our capital position in a relatively short period of
time.

                                       14
<PAGE>

       Below is a table that  reflects the leverage  and  risk-based  regulatory
capital ratios of the bank at March 31, 2003:


                                              Well-Capitalized        Minimum
                            Ratio               Requirement         Requirement
                            -----               -----------         -----------

Tier 1 capital              11.40%                 6.00%                4.0%
Total capital               12.64%                10.00%                8.0%
Tier 1 leverage ratio        8.11%                 5.00%                4.0%

Off-Balance Sheet Risk
----------------------

       Through the operations of our bank, we have made contractual  commitments
to  extend  credit in the  ordinary  course of our  business  activities.  These
commitments  are legally  binding  agreements  to lend money to our customers at
predetermined  interest rates for a specified period of time. At March 31, 2003,
we had issued commitments to extend credit of $15,604,000  through various types
of  commercial  lending  arrangements  and we had  $515,000 in letters of credit
issued. We evaluate each customer's  credit worthiness on a case-by-case  basis.
The amount of collateral  obtained,  if deemed necessary by us upon extension of
credit, is based on our credit evaluation of the borrower. Collateral varies but
may include  accounts  receivable,  inventory,  property,  plant and  equipment,
commercial  and  residential  real  estate.  We manage the credit  risk on these
commitments  by  subjecting  them to  normal  underwriting  and risk  management
processes.

Industry Developments
---------------------

     In October 2001, the USA Patriot Act of 2001 was enacted in response to the
terrorist  attacks in New York,  Pennsylvania and Washington D.C. which occurred
on  September  11,  2001.  The Patriot Act is intended to  strengthen  U.S.  law
enforcement's and the intelligence  communities' abilities to work cohesively to
combat terrorism on a variety of fronts. The potential impact of the Patriot Act
on financial  institutions  of all kinds is  significant  and wide ranging.  The
Patriot Act contains sweeping anti-money  laundering and financial  transparency
laws and imposes various  regulations,  including standards for verifying client
identification  at  account  opening,  and rules to  promote  cooperation  among
financial  institutions,  regulators and law enforcement entities in identifying
parties that may be involved in terrorism or money laundering.

       From time to time,  various  bills are  introduced  in the United  States
Congress with respect to the  regulation of financial  institutions.  Certain of
these proposals,  if adopted, could significantly change the regulation of banks
and the financial  services  industry.  We cannot  predict  whether any of these
proposals will be adopted or, if adopted, how these proposals would affect us.

Item 3.  Internal Controls and Procedures

Within  the 90 days  prior  to the  date  of  this  report,  we  carried  out an
evaluation  under the supervision and with the  participation of our management,
including  our chief  executive  officer  and chief  financial  officer,  of the
effectiveness  of the  design  and  operation  of our  disclosure  controls  and
procedures  pursuant to  Securities  Exchange Act Rule  13a-14.  Based upon that
evaluation,  the chief executive  officer and chief financial  officer concluded
that our disclosure  controls and  procedures  are effective in timely  alerting
them to material  information relating to the Company required to be included in
our periodic SEC filings.  The design of any system of controls is based in part
upon certain assumptions about the likelihood of future events, and there can be
no assurance  that any design will  succeed in achieving  its stated goals under
all  potential  future  conditions,  regardless  of how  remote.  There  were no
significant  changes in our  internal  controls or in other  factors  that could
significantly affect these controls subsequent to the date of their evaluation.





                                       15
<PAGE>



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

Item 1. Legal Proceedings
-------------------------

Not Applicable

Item 2. Changes in Securities and Use of Proceeds
-------------------------------------------------

Not Applicable

Item 3. Defaults Upon Senior Securities
---------------------------------------

Not Applicable

Item 4. Submission of Matters to a Vote of Security Holders
-----------------------------------------------------------

Not Applicable

Item 5. Other Information
-------------------------

None.

Item 6. Exhibits and Report on Form 8-K
---------------------------------------

         (a) Exhibits:

         Exhibit  Description

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

         (b) Reports on Form 8-K -

         The following reports were filed on Form 8-K during the first quarter
         ended March 31, 2003:

         99.1   The Company filed a Form 8-K on March 26, 2003 to disclose  that
         the  Chief  Executive  Officer,  Tommy  B.  Wessinger,  and  the  Chief
         Financial  Officer,  Jean H.  Covington,  each furnished to the SEC the
         certification  required pursuant to 18 U.S.C.  Section 1350, as adopted
         pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.







                                       16
<PAGE>


                                   SIGNATURES

     In accordance  with the  requirements  of the Exchange Act, the  registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


                             People's Community Capital Corporation
                             --------------------------------------
                             (Registrant)


Date:    May 8, 2003         By:  /s/ Tommy B. Wessinger
                                -----------------------------------
                                Tommy B. Wessinger
                                Chief Executive Officer


                             By:  /s/ Jean H. Covington
                                -----------------------------------
                                Jean H. Covington
                                Principal Accounting and Chief Financial Officer






                                       17
<PAGE>

                              Certification by CEO
                              --------------------

I, Tommy B. Wessinger, certify that:

1.   I have reviewed this quarterly report on Form 10-QSB of People's Community
     Capital Corporation;

2.   Based on my knowledge, this quarterly report does not contain any untrue
     statement of a material fact or omit to state a material fact necessary to
     make the statements made, in light of the circumstances under which such
     statements were made, not misleading with respect to the period covered by
     this quarterly report;

3.   Based on my knowledge, the financial statements, and other financial
     information included in this quarterly report, fairly present in all
     material respects the financial condition, results of operations and cash
     flows of the registrant as of, and for, the periods presented in this
     quarterly report;

4.   The registrant's other certifying officers and I are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

         a) designed such disclosure controls and procedures to ensure that
         material information relating to the registrant, including its
         consolidated subsidiaries, is made known to us by others within those
         entities, particularly during the period in which this quarterly report
         is being prepared;

         b) evaluated the effectiveness of the registrant's disclosure controls
         and procedures as of a date within 90 days prior to the filing date of
         this quarterly report (the "Evaluation Date"); and

         c) presented in this quarterly report our conclusions about the
         effectiveness of the disclosure controls and procedures based on our
         evaluation as of the Evaluation Date;

5.   The registrant's other certifying officers and I have disclosed, based on
     our most recent evaluation, to the registrant's auditors and the audit
     committee of registrant's board of directors (or persons performing the
     equivalent function):

         a) all significant deficiencies in the design or operation of internal
         controls which could adversely affect the registrant's ability to
         record, process, summarize and report financial data and have
         identified for the registrant's auditors any material weaknesses in
         internal controls; and

         b) any fraud, whether or not material, that involves management or
         other employees who have a significant role in the registrant's
         internal controls; and

6.   The registrant's other certifying officers and I have indicated in this
     quarterly report whether or not there were significant changes in internal
     controls or in other factors that could significantly affect internal
     controls subsequent to the date of our most recent evaluation, including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.

Date: May 8, 2003
                                   /s/ Tommy B. Wessinger
                                   ----------------------------------
                                   Tommy B. Wessinger, Chief Executive Officer



                                       18
<PAGE>

                              Certification by CFO
                              --------------------

I, Jean H. Covington, certify that:

1.   I have reviewed this quarterly report on Form 10-QSB of People's Community
     Capital Corporation;

2.   Based on my knowledge, this quarterly report does not contain any untrue
     statement of a material fact or omit to state a material fact necessary to
     make the statements made, in light of the circumstances under which such
     statements were made, not misleading with respect to the period covered by
     this quarterly report;

3.   Based on my knowledge, the financial statements, and other financial
     information included in this quarterly report, fairly present in all
     material respects the financial condition, results of operations and cash
     flows of the registrant as of, and for, the periods presented in this
     quarterly report;

4.   The registrant's other certifying officers and I are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

         a) designed such disclosure controls and procedures to ensure that
         material information relating to the registrant, including its
         consolidated subsidiaries, is made known to us by others within those
         entities, particularly during the period in which this quarterly report
         is being prepared;

         b) evaluated the effectiveness of the registrant's disclosure controls
         and procedures as of a date within 90 days prior to the filing date of
         this quarterly report (the "Evaluation Date"); and

         c) presented in this quarterly report our conclusions about the
         effectiveness of the disclosure controls and procedures based on our
         evaluation as of the Evaluation Date;

5.   The registrant's other certifying officers and I have disclosed, based on
     our most recent evaluation, to the registrant's auditors and the audit
     committee of registrant's board of directors (or persons performing the
     equivalent function):

         a) all significant deficiencies in the design or operation of internal
         controls which could adversely affect the registrant's ability to
         record, process, summarize and report financial data and have
         identified for the registrant's auditors any material weaknesses in
         internal controls; and

         b) any fraud, whether or not material, that involves management or
         other employees who have a significant role in the registrant's
         internal controls; and

6.   The registrant's other certifying officers and I have indicated in this
     quarterly report whether or not there were significant changes in internal
     controls or in other factors that could significantly affect internal
     controls subsequent to the date of our most recent evaluation, including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.

Date: May 8, 2003
                                     /s/ Jean H. Covington
                                   ----------------------------------
                                   Jean H. Covington, Chief Financial Officer



                                       19
<PAGE>


                                INDEX TO EXHIBITS

Exhibit
Number     Description

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






                                       20