<PAGE>   1


                     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 September 30, 1998

         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.)

              106-A 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)


     Check whether the issuer: (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
                                                           Yes  X   No  

         State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practicable date:

         998,162 shares of common stock, par value $.01 per share, were issued
and outstanding as of November 6, 1998.

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



<PAGE>   2



PART I - FINANCIAL INFORMATION

ITEM 1.   FINANCIAL STATEMENTS.

                     PEOPLE'S COMMUNITY CAPITAL CORPORATION
                           CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
                                                                September 30,      December 31,
                                                                     1998             1997
                                                                     ----             ----
                                                                 (Unaudited)        (Audited)

                                     ASSETS
<S>                                                             <C>                <C>         
Cash and due from banks                                         $  1,237,196       $    625,785
Federal funds sold                                                 4,810,000          9,240,000
Securities, available for sale                                     8,739,773          5,629,838
Loans receivable, net                                             16,014,575          3,889,163
Properties and equipment, net                                      1,585,445          1,607,802
Accrued interest receivable                                          221,805             45,769
Deferred income taxes                                                225,328            149,182
Other assets                                                         121,323             83,428
                                                                ------------       ------------
         Total assets                                           $ 32,955,445       $ 21,270,967
                                                                ============       ============

                      LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:
  Non-interest bearing deposits                                 $  3,872,037       $  1,954,224
  Interest bearing deposits                                       19,322,863          9,751,398
                                                                ------------       ------------
         Total deposits                                           23,194,900         11,705,622
  Accrued interest payable                                            38,351             21,362
  Accrued expenses and other liabilities                              72,151             83,377
  Other borrowings                                                   310,441                  0
                                                                ------------       ------------
         Total liabilities                                        23,615,843         11,810,361
                                                                ------------       ------------


Stockholders' equity:
  Common stock, $.01 par value; 10,000,000 shares
    authorized, 993,162 shares issued and outstanding                  9,932              9,932
  Additional paid-in-capital                                       9,738,058          9,738,058
  Retained earnings (deficit)                                       (444,081)          (289,595)
  Net unrealized gain on securities available for sale,
    net of income taxes                                               35,693              2,211
                                                                ------------       ------------
         Total stockholders' equity                                9,339,602          9,460,606
                                                                ------------       ------------
         Total liabilities and stockholders' equity             $ 32,955,445       $ 21,270,967
                                                                ============       ============
</TABLE>


          See accompanying Notes to Consolidated Financial Statements.


<PAGE>   3



                     PEOPLE'S COMMUNITY CAPITAL CORPORATION
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                    For the three months             For the nine months
                                                     ended September 30,             ended September 30,
                                                     -------------------             -------------------
                                                    1998             1997             1998             1997
                                                    ----             ----             ----             ----
<S>                                               <C>             <C>             <C>               <C>      
Interest income:
  Loans, including fees                           $ 336,351       $      37       $   728,531       $      37
  Federal funds sold                                 44,372          88,074           204,310           8,074
  Securities and short-term investments             176,636              11           490,982           1,362
                                                  ---------       ---------       -----------       ---------
         Total interest income                      557,359          88,122         1,423,823          89,473
                                                  ---------       ---------       -----------       ---------


Interest expense:
  Deposits                                          208,465             902           540,545             902
  Other borrowings                                    3,400              --             3,400              --
                                                  ---------       ---------       -----------       ---------
         Total interest expense                     211,865             902           543,945             902
                                                  ---------       ---------       -----------       ---------


  Net interest income                               345,494          87,220           879,878          88,571
  Provision for loan losses                          55,000              --           165,000              --
                                                  ---------       ---------       -----------       ---------
         Net interest income after provision
           for loan losses                          290,494          87,220           714,878          88,571
                                                  ---------       ---------       -----------       ---------

Non-interest income:
  Service charges on deposit accounts                23,709              48            46,087              48
  Other income                                       18,636             405            60,255             405
                                                  ---------       ---------       -----------       ---------
         Total non-interest income                   42,345             453           106,342             453
                                                  ---------       ---------       -----------       ---------

Non-interest expenses:
  Salaries and employee benefits                    214,478          61,201           653,750         107,287
  Occupancy and equipment                            52,473           6,480           141,938          22,296
  Consulting and professional fees                    8,330          34,204            31,138          34,204
  Customer related expenses                          13,360              --            53,775              --
  General operating expenses                         39,836          31,690           108,506          31,690
  Other expenses                                     29,325          27,113            83,804          41,458
                                                  ---------       ---------       -----------       ---------
         Total non-interest expenses                357,802         160,688         1,072,911         236,935

Loss before income taxes                            (24,963)        (73,015)         (251,691)       (147,911)
Income tax benefits                                  (9,570)             --           (97,204)             --
                                                  ---------       ---------       -----------       ---------

Net loss                                          $ (15,393)      $ (73,015)      $  (154,487)      $(147,911)
                                                  =========       =========       ===========       =========

Net loss per share of common stock                $    (.02)      $    (.08)      $      (.16)      $    (.15)
                                                  =========       =========       ===========       =========
Weighted average shares outstanding                 993,162         993,162           993,162         993,162
                                                  =========       =========       ===========       =========
</TABLE>


          See accompanying Notes to Consolidated Financial Statements.

<PAGE>   4



                     PEOPLE'S COMMUNITY CAPITAL CORPORATION
             CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                     For the three months          For the nine months
                                                     ended  September 30,          ended September 30,
                                                     --------------------          -------------------
                                                     1998            1997          1998            1997
                                                     ----            ----          ----            ----
    
<S>                                                <C>            <C>            <C>             <C>       
Net income (loss)                                  $(15,393)      $(73,015)      $(154,487)      $(147,911)

Other comprehensive income, net of tax:
  Net change in unrealized gain on securities
    available for sale                               19,513             --          33,482              --
                                                   --------       --------       ---------       ---------

         Total other comprehensive income            19,513             --          33,482              --
                                                   --------       --------       ---------       ---------

Comprehensive income (loss)                        $  4,120       $(73,015)      $(121,005)      $(147,911)
                                                   ========       ========       =========       =========
</TABLE>






















          See accompanying Notes to Consolidated Financial Statements.


<PAGE>   5



                     PEOPLE'S COMMUNITY CAPITAL CORPORATION
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                         For the nine months
                                                                          ended September 30,    
                                                                          -------------------    
                                                                        1998              1997
                                                                        ----              ----
<S>                                                                <C>                <C>          
OPERATING ACTIVITIES:
  Net loss                                                         $   (154,487)      $   (147,911)
  Adjustments to reconcile net loss to net cash (used)
    provided for operating activities:
      Depreciation and amortization                                      83,918                 --
      Provision for loan losses                                         165,000                 --
      Deferred income taxes                                             (76,146)                --
      Changes in deferred and accrued amounts:
        Other assets and accrued interest receivable                   (222,523)           (60,929)
        Accrued expenses and other liabilities                            5,763            394,624
                                                                   ------------       ------------

         Net cash (used for) provided by operating activities          (198,475)           185,784
                                                                   ------------       ------------

INVESTING ACTIVITIES:
  Purchase of securities available for sale                         (11,803,559)                --
  Maturities and calls of securities available for sale               8,727,106                 --
  Purchase of property and equipment                                    (52,968)        (1,578,859)
  Net increase in loans                                             (12,290,412)           (39,830)
  Net decrease (increase) in federal funds sold                       4,430,000         (9,790,000)
                                                                   ------------       ------------
         Net cash used for investing activities                     (10,989,833)       (11,408,689)
                                                                   ------------       ------------

FINANCING ACTIVITIES:
  Net increase in deposits                                           11,489,278          2,527,823
  Non-interest bearing borrowings from organizers                            --            240,000
  Repayment of borrowings from organizers                                    --           (275,000)
  Sale of stock, net of registration costs                                   --          9,745,265
  Borrowings from Federal Reserve TT&L Note                             310,441                 --
                                                                   ------------       ------------

         Net cash provided by financing activities                   11,799,719         12,238,088
                                                                   ------------       ------------

Net increase in cash and due from banks                                 611,411          1,015,183
Cash and due from banks at beginning of period                          625,785             35,000
                                                                   ------------       ------------
Cash and due from banks at end of period                           $  1,237,196       $  1,050,183
                                                                   ============       ============

Supplemental disclosure:
    Cash paid during the period for interest                       $    526,956       $        253
                                                                   ============       ============
</TABLE>




          See accompanying Notes to Consolidated Financial Statements.


<PAGE>   6



                     PEOPLE'S COMMUNITY CAPITAL CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1.       BASIS OF PRESENTATION

         The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles 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 generally accepted
accounting principles 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 nine months ended September 30, 1998, are not necessarily
indicative of the results that may be expected for the year ended December 31,
1998. For further information, please refer to the consolidated financial
statements and footnotes thereto for the Company's fiscal year ended December
31, 1997, included in the Company's Form 10-KSB for the year ended December 31,
1997.

NOTE 2.     SUMMARY OF ORGANIZATION

         People's Community Capital Corporation (the "Company") was incorporated
on February 26, 1997, under the laws of the State of South Carolina for the
purpose of operating as a bank holding company pursuant to the Federal Bank
Holding Company Act of 1956, as amended.

         The Company is a bank holding company whose subsidiary, People's
Community Bank of South Carolina (the "Bank"), is primarily engaged in the
business of accepting savings and demand deposits insured by The Federal Deposit
Insurance Corporation, and providing mortgage, consumer and commercial loans to
the general public.

NOTE 3.     STOCK-BASED COMPENSATION AND STOCK OPTIONS

         "Accounting for Stock-Based Compensation", Statement of Financial
Accounting Standards No. 123, allows a company to either adopt the fair value
method or continue the intrinsic valuation method presented under Accounting
Principles Board ("APB") Opinion 25 to account for stock-based compensation. The
Company has elected to use APB Opinion 25 and the intrinsic value method. The
intrinsic value method measures compensation expense as the difference between
the quoted market price of the stock and the exercise price of the option on the
date of grant.

         On April 29, 1998, the Company adopted a stock option plan for the
benefit of the directors, officers and employees. The Board may grant up to
250,000 options at an option price per share not less than the fair market value
on the date of grant. On June 16, 1998, 213,394 incentive stock options were
granted to directors, officers and employees that expire 10 years from the grant
date and are subject to various vesting schedules. Also, the Corporation is
obligated to grant additional options to the Chief Executive Officer for the
future purchase of 10,000 shares of common stock at $10.00 per share. The
options will vest at the rate of 2,000 shares on each December 31 beginning in
1998 and ending in 2002. There is no effect on the reported net loss or net loss
per share based upon pricing model computations.


<PAGE>   7

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

         This discussion and analysis is intended to assist the reader in
understanding the financial condition and results of operations of People's
Community Capital Corporation. This commentary should be read in conjunction
with the financial statements and the related notes and other statistical
information in this report.

         The following discussion contains forward-looking statements that
involve risks and uncertainties. The Company's actual results may differ
materially from the results discussed in the forward-looking statements, and the
Company's operating performance each quarter is subject to various risks and
uncertainties that are discussed in detail in the Company's filings with the
Securities and Exchange Commission, including the "Risk Factors" section in the
Company's Registration Statement on Form S-1 (Registration Number 333-25179) as
filed with and declared effective by the Securities and Exchange Commission.

         People's Community Capital Corporation (the Company) was incorporated
in South Carolina on February 26, 1997 for the purpose of operating as a bank
holding company. The Company's wholly-owned subsidiary, People's Community Bank
of South Carolina (the Bank) 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. The
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 also are the headquarters of the holding company. An
option has been obtained to purchase a tract of land in downtown Aiken for the
construction of a permanent banking center office. The cost of the land is
expected to be approximately $138,000. Construction of the office is not
expected to begin until 1999.

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

EARNINGS REVIEW

         Since principal banking operations only commenced on September 22,
1997, a comparison of the September 30, 1998 results to those of September 30,
1997 are not entirely meaningful. This discussion will therefore concentrate on
the September 30, 1998 operations with limited references to 1997 results or
balances.

         The Company's net loss for the third quarter of 1998 was $15,393
compared to a loss of $73,015 in the same period last year when the banking
operations were just beginning. The loss per share decreased to $.02 compared to
$.08 for the same period in 1997. Net loss for the nine months ended September
30, 1998 was $154,487, or $.16 per share, compared to a loss of $147,911, or
$.15 per share, for the same period in 1997. The variance in performance between
the two periods is directly attributable to the start-up nature of the company
in 1997. The following is a brief discussion of the more significant components
of the net loss:


<PAGE>   8

         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, the main
components of interest earning assets and interest bearing liabilities for the
nine-month period ended September 30, 1998:

<TABLE>
<CAPTION>
           Interest
        Earning Assets/                       Average             Interest
      Bearing Liabilities                     Balance          Income/Expense         Yield/Rate 
      -------------------                     -------          --------------         ---------- 

<S>                                         <C>                <C>                    <C>  
Federal funds sold                          $ 4,937,141          $  204,310             5.52%
Short-term investments                          252,930              10,359             5.46%
Securities                                   10,224,571             480,623             6.27%
Loans                                        10,006,850             728,531             9.71%
                                            -----------          ----------             ----
Total earning assets                        $25,421,492          $1,423,823             7.47%
                                            -----------          ----------             ----

Interest-bearing deposits                   $15,788,177          $  540,545             4.56%
Interest-bearing borrowings                      84,970               3,400             5.33%
                                            -----------          ----------             ----
Total interest-bearing liabilities          $15,873,147          $  543,945             4.57%
                                            -----------          ----------             ----

Net interest income/margin                                       $   879,878            2.90%
                                                                 ===========

Net yield on earning assets                                                             4.61%
</TABLE>

         As shown above, the net interest margin was 2.90%, an increase over the
annualized spread of 1.43% at December 31, 1997. The net yield on earning assets
was 4.61% at September 30, 1998 compared to 4.64% at the end of last year. The
net margin has increased as more of the earning assets have moved from
investments into the higher yielding loan portfolio. Similarly, as deposits have
increased, the interest paid has increased causing a slight decline in the net
yield on earning assets.

Non-interest Income

         Non-interest income for the nine-month period ended September 30, 1998
was $106,342 compared to $453 for the same period in 1997. Of this total,
$46,087 represented service charges on deposit accounts. The remaining $60,255
was income generated from other fees charged, the largest of which was brokered
mortgage origination fee income of $37,346. Also included in non-interest income
is a year to date net gain on the sale of available-for-sale securities of $547.

Non-interest Expense

         Non-interest expenses for the nine-month period were $1,072,911,
consisting primarily of salaries and employee benefits of $653,750. Non-interest
expenses for the same period in 1997 were $236,935 when the Company was not in
operations for the entire period.

<PAGE>   9



Provision for Loan Losses

         The provision for loan losses was increased by $165,000 during the
first nine months bringing the total reserve balance to $225,000. This amount
represents 1.39% of gross loans, compared to 1.52% at December 31, 1997.
However, management's judgment as to the adequacy of the allowance is based upon
a number of assumptions about future events that it believes to be reasonable,
but which may or may not be accurate. Thus, 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.

BALANCE SHEET REVIEW

         Total consolidated assets increased by $11.7 million to $32.9 million
during the nine-month period ended September 30, 1998. The increase was
generated primarily through a corresponding $11.5 million increase in deposits.
The funds were used to increase loans by $12.1 million. Federal funds sold
decreased by $4.4 million since December 31, 1997 and the funds were invested
primarily in available-for-sale securities for an increase of $3.1 million and
the remainder in loans.

Loans

         Outstanding loans represent the largest component of earning assets as
of September 30, 1998 at $16,014,575, or 54.2% of total earning assets. Loans
increased $12,125,412, or 312%, since December 31, 1997.

         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 yield on the Company's loans as of September 30, 1998 was 9.71% as compared
to a yield of 10.67% at December 31, 1997. The variance in yields is primarily
due to the mix of loans in the relatively small loan volume in 1997 as compared
to the larger portfolio at September 30, 1998.

Allowance for Loan Losses

         The allowance for loan losses at September 30, 1998 was $225,000, or
1.39% of loans outstanding, compared to an allowance of $60,000, or 1.52%, at
December 31, 1997. The allowance for loan losses is based upon management's
continuing evaluation of the collectibility of loans based somewhat on
historical loan loss experience, but mostly, because of the lack of historical
data available in a new company, based 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. As of September 30, 1998, there have been no
non-performing loans or net charge-offs since inception.

Securities

         Investment securities represented 29.5% of earning assets at September
30, 1998 with a total of $8,739,773, up $3,109,935 from the December 31, 1997
balance of $5,629,838. The yield on investment securities was 6.27% at September
30, 1998 compared to 6.16% at December 31, 1997. Included in available for sale
securities is $81,700 of stock purchased in September 1998 in the 





<PAGE>   10

Federal Home Loan Bank of Atlanta. This purchase was a requirement from the FHLB
in order to secure borrowings from them in the future.

Deposits

         The Company's primary source of funds for loans and investments is its
deposits. Deposits grew $11,489,278, or 98%, since year end 1997 for a total of
$23,194,900 at September 30, 1998. The average rates paid on interest-bearing
deposits were 4.56% and 4.74% at September 30, 1998 and December 31, 1997,
respectively. In pricing deposits, the Company considers its liquidity needs,
the direction and levels of interest rates and local market conditions. As such,
higher rates were paid initially to attract deposits but have decreased based on
the factors above.

Liquidity and sources of capital

         At September 30, 1998, the Company's liquid assets, consisting of cash
and due from banks and Federal funds sold, amounted to $6,047,196, representing
18.3% of total assets. Investment securities amounted to $8,739,773,
representing 26.5% of total assets; these securities provide a secondary source
of liquidity since they can be converted into cash in a timely manner. The
Company's ability to maintain and expand its deposit base and borrowing
capabilities also serves as a source of liquidity. For the nine-month period
ended September 30, 1998, total deposits increased from $11.7 million at
year-end to $23.2 million, representing an increase of 98%, or 131% on an
annualized basis. However, the Company does not expect that it will maintain
this growth rate. The Company's management closely monitors and seeks 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.

         The Company plans to meet its future cash needs through the liquidation
of temporary investments, maturities of loans and investment securities, and
generation of deposits. In addition, the Bank maintains a line of credit from
its correspondent bank in the amount of $1,800,000, and is able to borrow from
the Federal Home Loan Bank. At September 30, 1998, unused borrowing capacity
from the FHLB was approximately $980,000.

         The Bank currently maintains a level of capitalization substantially in
excess of the minimum capital requirements set by the regulatory agencies.
Despite anticipated asset growth, management expects its 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
continued losses, or a combination of these factors, could change the Company's
capital position in a relatively short period of time. The Company has no
commitments or immediate plans for significant capital expenditures at this
time. Below is a table that reflects the leverage and risk-based regulatory
capital ratios of the Bank at September 30, 1998:

<TABLE>
<CAPTION>
                                                            Minimum
                                           Ratio          Requirements
                                           -----          ------------

<S>                                        <C>            <C> 
Tier 1 capital                             27.00%            4.0%
Total capital                              28.14%            8.0%
Tier 1 leverage ratio                      18.19%            4.0%
</TABLE>

<PAGE>   11

YEAR 2000 READINESS

         The Bank relies upon operational systems, outsource providers and
computer hardware and software each with varying degrees of dependence on
computer solutions and/or embedded microchips. Some number of these systems may
be affected by considerations involving several dates either prior to or
following the Year 2000. Presently the Bank is obtaining and assessing test
results to determine reliability and adequacy towards satisfying Year 2000
related requirements. Based on information currently available, management does
not believe that the Company will incur significant costs in connection with the
Year 2000 issue and further estimates at this time that direct project costs
should not exceed $10,000. However, Year 2000 costs are difficult to estimate,
particularly since the Company relies largely on outside service providers for
many of its computer hardware and software products, and total costs could
exceed this amount substantially. Furthermore, the Bank potentially may have
some number of business loan customers who could be affected by the Year 2000
issue and negatively affect such customer's ability to repay credit extended.
Therefore, even if the Company does not incur any significant direct costs in
connection with responding to the Year 2000 issue, there can be no assurance
that the failure or delay of the Bank's customers, or other providers addressing
the Year 2000 issues, or the costs involved in such process will not have an
adverse effect on the Company's business, financial condition and results of
operations. The Bank is currently working to enhance its Testing Methodology and
Y2K Contingency Plan and all testing is expected to be completed by mid 1999.
One senior management member continues to devote approximately 10% of his time
towards this project.

RECENTLY ISSUED ACCOUNTING STANDARDS

         In June 1997, Statement of Financial Accounting Standards NO. 130,
"Reporting Comprehensive Income" (FASB 130), was issued, and established
standards for reporting and displaying comprehensive income and its components,
as recognized under accounting standards, to be displayed in a financial
statement with the same prominence as other financial statements. Accordingly,
the Consolidated Statements of Comprehensive Income (Loss) have been included in
the financial statements.

         In June 1997, the FASB issued SFAS 131, "Disclosures about Segments of
an Enterprise and Related Information". SFAS 131 requires that a public business
enterprise report financial and descriptive information about its reportable
operating segments. Operating segments are components of an enterprise about
which separate financial information is available that is evaluated regularly by
the chief operating decision maker in deciding how to allocate resources and in
assessing performance. SFAS 131 requires that a public enterprise report a
measure of segment profit or loss, certain specific revenue and expense items,
segment assets, information about the way that the operating segments were
determined and other items. The Statement is effective for fiscal years
beginning after December 15, 1997. The Company does not anticipate that adoption
of SFAS 131 will have a material effect on its financial statements.

         In April 1998, the FASB issued SFAS 132, "Employers' Disclosures about
Pensions and Other Postretirement Benefits". The new Statement revises the
required disclosures for employee benefit plans, but it does not change the
measurement or recognition of such plans. While the new standard requires some
additional information about benefit plans, it helps preparers of financial
statements by eliminating certain disclosures and by standardizing the
disclosures for pensions and other postretirement benefits to the extent
practicable. SFAS 132 supercedes the disclosure 


<PAGE>   12

requirements in SFAS 87, "Employers' Accounting for Pensions", SFAS 88,
"Employers' Accounting for Settlements and Curtailments of Defined Benefit
Pension Plans and for Termination Benefits", and SFAS 106, "Employers'
Accounting for Postretirement Benefits Other than Pensions". The new disclosures
are effective for fiscal years beginning after December 15, 1997. The adoption
of SFAS 132 will not have an impact on the financial statements of the Company
due to the disclosure only requirements.

         In June 1998, the FASB issued SFAS 133, "Accounting for Derivative
Instrument and Hedging Activities". All derivatives are to be measured at fair
value and recognized in the statement of financial position as assets or
liabilities. The statement is effective for fiscal years and quarters beginning
after June 15, 1999. Because the Company has limited use of derivative
transactions at this time, management does not expect that this standard would
have a significant effect on the Company.

         In October 1998, the FASB issued SFAS 134, "Accounting for
Mortgage-Backed Securities Retained after the Securitization of Mortgage Loans
Held for Sale by a Mortgage Banking Enterprise". The new statement establishes
accounting and reporting standards for certain activities of mortgage banking
enterprises. The statement is effective for the first quarter beginning after
December 15, 1998. The statement will have no effect on the financial statements
of the Company.

         In March 1998, the Accounting Standards Executive Committee of the
AICPA issued Statement of Position 98-1, "Accounting for the Costs of Computer
Software Developed or Obtained for Internal Use" (SOP 98-1), which provided
guidance as to when it is or is not appropriate to capitalize the cost of
software developed or obtained for internal use. SOP 98-1 is effective for
financial statements for fiscal years beginning after December 15, 1998 with
early adoption encouraged. The Company does not anticipate that adoption of SOP
98-1 will have a material effect on its financial statements.



<PAGE>   13



PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

Not applicable

ITEM 2.  CHANGES IN SECURITIES

(a)      Not applicable

(b)      Not applicable

(c) On October 27, 1998 the Company issued 5,000 shares to its President and
Chief Executive Officer, Tommy B. Wessinger, for services rendered pursuant to
his employment agreement with the Company. These shares were issued pursuant to
Section 4(2) under the Securities Act of 1933.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

Not applicable

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

There were no matters submitted to a vote of shareholders during the three
months ended September 30, 1998.

ITEM 5.  OTHER INFORMATION

Not applicable

ITEM 6.  EXHIBITS AND REPORT ON FORM 8-K

(a)      Exhibit - 27.1 Financial Data Schedule (for SEC use only)

(b)      Reports on Form 8-K - No reports on Form 8-K were filed during the 
         quarter ended September 30, 1998.



<PAGE>   14



                                   SIGNATURES

         In accordance with Section 13 or 15(d) of the Securities Exchange Act
of 1934 (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




Date:   November 6, 1998                By:      /s/ Tommy B. Wessinger  
                                             ------------------------------
                                        Tommy B. Wessinger
                                        Chief Executive Officer