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SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549



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FORM 10-QSB



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



For Quarterly Period Ended March 31, 2005



| ̈ | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
|- | ---------------------------------------------------------------



Commission File No. 000-33355



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TRANSCOMMUNITY FINANCIAL CORPORATION

(Exact name of small business issuer as specified in its charter)



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|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|Virginia                                                       |  | 54-2032355                          
|(State or Other Jurisdiction of Incorporation or Organization) |  | (I.R.S. Employer Identification No.)



4235 Innslake Drive

Glen Allen, Virginia 23060

(Address of principal executive offices, including zip code)



(804) 934-9999

(Registrants Telephone Number, Including Area Code)



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Check whether the registrant: (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirement 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.



|                                |  |                           
|------------------------------- |  | --------------------------
|Class                           |  | Outstanding at May 1, 2005
|Common Stock, par value - $0.01 |  | 2,293,241 shares          



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##### Table of Contents

TRANSCOMMUNITY FINANCIAL CORPORATION



INDEX



|        |  |                                                                                                        |  |     
|------- |  | ------------------------------------------------------------------------------------------------------ |  | ----
|        |  |                                                                                                        |  | Page
|PART I  |  | FINANCIAL INFORMATION                                                                                  |  |     
|        |  |                                                                                                       
|Item 1. |  | Financial Statements                                                                                   |  |     
|        |  |                                                                                                       
|        |  | Consolidated Statements of Operations Three Months Ended March 31, 2005 and 2004                      |  | 2   
|        |  |                                                                                                       
|        |  | Consolidated Balance Sheets March 31, 2005 and December 31, 2004                                      |  | 3   
|        |  |                                                                                                       
|        |  | Consolidated Statements of Changes in Stockholders Equity Three Months Ended March 31, 2005 and 2004 |  | 4   
|        |  |                                                                                                       
|        |  | Consolidated Statements of Cash Flows -Three Months Ended March 31, 2005 and 2004                      |  | 5   
|        |  |                                                                                                       
|        |  | Notes to Consolidated Financial Statements                                                             |  | 6   
|        |  |                                                                                                       
|Item 2. |  | Managements Discussion and Analysis of Financial Condition and Results of Operations                  |  | 12  
|        |  |                                                                                                       
|Item 3. |  | Controls and Procedures                                                                                |  | 21  
|        |  |                                                                                                       
|PART II |  | OTHER INFORMATION                                                                                      |  |     
|        |  |                                                                                                       
|Item 1. |  | Legal Proceedings                                                                                      |  | 22  
|        |  |                                                                                                       
|Item 2. |  | Unregistered Sales of Equity Securities and Use of Proceeds                                            |  | 22  
|        |  |                                                                                                       
|Item 3. |  | Defaults Upon Senior Securities                                                                        |  | 22  
|        |  |                                                                                                       
|Item 4. |  | Submission of Matters to a Vote of Security Holders                                                    |  | 22  
|        |  |                                                                                                       
|Item 5. |  | Other Information                                                                                      |  | 22  
|        |  |                                                                                                       
|Item 6. |  | Exhibits                                                                                               |  | 22  
|        |  |                                                                                                       
|        |  | SIGNATURES                                                                                             |  | 23  



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##### Table of Contents

TRANSCOMMUNITY FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED MARCH 31, 2005 AND 2004

(UNAUDITED)



|                                                    |  |                             |           |   |      |   |           |  
|--------------------------------------------------- |  | --------------------------- | --------- | - | ---- | - | --------- | -
|                                                    |  | Three Months Ended March 31 |          
|                                                    |  | 2005                        |           |   | 2004 |  
|Interest and Dividend Income                        |  |                             |           |   |      |   |           |  
|Interest on Loans, including fees                   |  | $                           | 1,976,467 |   |      | $ | 1,241,842 |  
|Interest on Federal funds sold                      |  |                             | 54,701    |   |      |   | 19,636    |  
|Dividends on equity securities                      |  |                             | 4,500     |   |      |   |           |  
|Interest on Debt securities                         |  |                             | 117,021   |   |      |   | 86,728    |  
|                                                    |  |                             |           |   |      |   |           |  
|Total Interest Income                               |  |                             | 2,152,689 |   |      |   | 1,348,206 |  
|                                                    |  |                             |           |   |      |   |           |  
|Interest Expense                                    |  |                             |           |   |      |   |           |  
|Interest on deposits                                |  |                             | 601,095   |   |      |   | 385,605   |  
|Interest on other borrowed funds                    |  |                             | 21,494    |   |      |   | 17,028    |  
|                                                    |  |                             |           |   |      |   |           |  
|Total Interest Expense                              |  |                             | 622,589   |   |      |   | 402,633   |  
|                                                    |  |                             |           |   |      |   |           |  
|Net Interest Income                                 |  |                             | 1,530,100 |   |      |   | 945,573   |  
|                                                    |  |                            
|Provision for Loan Losses                           |  |                             | 64,561    |   |      |   | 145,796   |  
|                                                    |  |                             |           |   |      |   |           |  
|Net Interest Income After Provision for Loan Losses |  |                             | 1,465,539 |   |      |   | 799,777   |  
|                                                    |  |                             |           |   |      |   |           |  
|Noninterest Income                                  |  |                             |           |   |      |   |           |  
|Bank service charges and fees                       |  |                             | 214,810   |   |      |   | 92,557    |  
|Commissions and fees from loan originations         |  |                             | 986,295   |   |      |   | 544,790   |  
|                                                    |  |                             |           |   |      |   |           |  
|Total Noninterest Income                            |  |                             | 1,201,105 |   |      |   | 637,347   |  
|                                                    |  |                             |           |   |      |   |           |  
|Noninterest Expense                                 |  |                             |           |   |      |   |           |  
|Salaries and employee benefits                      |  |                             | 1,994,112 |   |      |   | 1,408,086 |  
|Occupancy expenses                                  |  |                             | 235,104   |   |      |   | 141,240   |  
|Equipment expenses                                  |  |                             | 155,267   |   |      |   | 155,981   |  
|Other operating expenses                            |  |                             | 755,426   |   |      |   | 647,838   |  
|                                                    |  |                             |           |   |      |   |           |  
|Total Noninterest Expense                           |  |                             | 3,139,910 |   |      |   | 2,353,145 |  
|                                                    |  |                             |           |   |      |   |           |  
|Net Loss                                            |  | $                           | (473,265  | ) |      | $ | (916,021  | )
|                                                    |  |                             |           |   |      |   |           |  
|Net Loss Per Share (Basic and Diluted)              |  | $                           | (0.21     | ) |      | $ | (0.44     | )
|                                                    |  |                             |           |   |      |   |           |  
|Weighted Average Shares Outstanding                 |  |                             | 2,278,155 |   |      |   | 2,067,613 |  



The accompanying notes
are an integral part of this statement.



Page 2



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##### Table of Contents

TRANSCOMMUNITY FINANCIAL CORPORATION

CONSOLIDATED BALANCE SHEETS

MARCH 31, 2005 AND DECEMBER 31, 2004



|                                                                                                                                                        |  |                |             |   |                  |   |             |  
|------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------- | ----------- | - | ---------------- | - | ----------- | -
|                                                                                                                                                        |  | March 31, 2005 |             |   | December 31,2004 |  
|                                                                                                                                                        |  | Unaudited      |             |   | Audited          |  
|ASSETS                                                                                                                                                  |  |                |             |   |                  |   |             |  
|                                                                                                                                                        |  |               
|Cash and due from banks                                                                                                                                 |  | $              | 5,134,350   |   |                  | $ | 3,617,266   |  
|Federal funds sold                                                                                                                                      |  |                | 885,000     |   |                  |   | 143,000     |  
|                                                                                                                                                        |  |                |             |   |                  |   |             |  
|Total Cash and Cash Equivalents                                                                                                                         |  |                | 6,019,350   |   |                  |   | 3,760,266   |  
|                                                                                                                                                        |  |               
|Securities available-for-sale, at fair value                                                                                                            |  |                | 7,350,352   |   |                  |   | 17,876,464  |  
|Securities held to maturity                                                                                                                             |  |                | 21,898,743  |   |                  |   | 9,899,035   |  
|Loans net of allowance for loan losses of $1,486,639 at March 31, 2005 and $1,422,078 at December 31, 2004                                              |  |                | 103,567,191 |   |                  |   | 103,492,622 |  
|Premises and equipment, net                                                                                                                             |  |                | 6,629,926   |   |                  |   | 6,142,819   |  
|Federal Reserve Bank stock (restricted)                                                                                                                 |  |                | 507,300     |   |                  |   | 507,300     |  
|Other assets                                                                                                                                            |  |                | 1,618,615   |   |                  |   | 1,369,244   |  
|                                                                                                                                                        |  |                |             |   |                  |   |             |  
|Total Assets                                                                                                                                            |  | $              | 147,591,477 |   |                  | $ | 143,047,750 |  
|                                                                                                                                                        |  |                |             |   |                  |   |             |  
|LIABILITIES                                                                                                                                             |  |                |             |   |                  |   |             |  
|                                                                                                                                                        |  |               
|Deposits:                                                                                                                                               |  |                |             |   |                  |   |             |  
|Demand deposits:                                                                                                                                        |  |                |             |   |                  |   |             |  
|Noninterest bearing                                                                                                                                     |  | $              | 17,782,148  |   |                  | $ | 15,549,428  |  
|Interest bearing                                                                                                                                        |  |                | 33,217,517  |   |                  |   | 36,603,311  |  
|Savings deposits                                                                                                                                        |  |                | 8,664,640   |   |                  |   | 8,502,482   |  
|Time deposits                                                                                                                                           |  |                | 68,657,050  |   |                  |   | 63,006,695  |  
|                                                                                                                                                        |  |                |             |   |                  |   |             |  
|Total Deposits                                                                                                                                          |  |                | 128,321,355 |   |                  |   | 123,661,916 |  
|                                                                                                                                                        |  |               
|Federal funds purchased                                                                                                                                 |  |                | 2,026,000   |   |                  |   | 2,277,000   |  
|Note payable                                                                                                                                            |  |                | 1,450,000   |   |                  |   | 1,450,000   |  
|Accrued interest payable                                                                                                                                |  |                | 223,155     |   |                  |   | 205,610     |  
|Accrued expenses and other liabilities                                                                                                                  |  |                | 478,013     |   |                  |   | 514,716     |  
|                                                                                                                                                        |  |                |             |   |                  |   |             |  
|Total Liabilities                                                                                                                                       |  |                | 132,498,523 |   |                  |   | 128,109,242 |  
|                                                                                                                                                        |  |                |             |   |                  |   |             |  
|STOCKHOLDERS EQUITY                                                                                                                                    |  |                |             |   |                  |   |             |  
|                                                                                                                                                        |  |               
|Common stock (5,000,000 shares authorized $.01 par value) 2,293,241 and 2,250,508 shares issued and outstanding at March 31, 2005 and December
31, 2004 |  |                | 22,932      |   |                  |   | 22,505      |  
|Additional paid in capital                                                                                                                              |  |                | 23,229,788  |   |                  |   | 22,753,004  |  
|Expenses of stock offering                                                                                                                              |  |                |            |   |                  |   | (186,083    | )
|Accumulated deficit                                                                                                                                     |  |                | (8,080,535  | ) |                  |   | (7,607,270  | )
|Accumulated other comprehensive loss                                                                                                                    |  |                | (79,231     | ) |                  |   | (43,648     | )
|                                                                                                                                                        |  |                |             |   |                  |   |             |  
|Total Stockholders Equity                                                                                                                              |  |                | 15,092,954  |   |                  |   | 14,938,508  |  
|                                                                                                                                                        |  |                |             |   |                  |   |             |  
|Total Liabilities and Stockholders Equity                                                                                                              |  | $              | 147,591,477 |   |                  | $ | 143,047,750 |  
|                                                                                                                                                        |  |                |             |   |                  |   |             |  



The accompanying notes
are an integral part of this statement.



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##### Table of Contents

TRANSCOMMUNITY FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY

FOR THE THREE MONTHS ENDED MARCH 31, 2005 AND 2004

(UNAUDITED)



|                                                 |  |                      |  |                                  |          |   |             |   |                          |  |   |                    |   |  |                                            |            |   |       |   |         |   |  |   |            |  
|------------------------------------------------ |  | -------------------- |  | -------------------------------- | -------- | - | ----------- | - | ------------------------ |  | - | ------------------ | - |  | ------------------------------------------ | ---------- | - | ----- | - | ------- | - |  | - | ---------- | -
|                                                 |  | Shares ofCommonStock |  | Expenses ofCurrentStockOfferings |          |   | CommonStock |   | AdditionalPaid inCapital |  |   | AccumulatedDeficit |   |  | AccumulatedOtherComprehensiveIncome (Loss) |            |   | Total |  
|Balance, December 31, 2004                       |  | 2,250,508            |  | $                                | (186,083 | ) |             | $ | 22,505                   |  | $ | 22,753,004         |   |  | $                                          | (7,607,270 | ) |       | $ | (43,648 | ) |  | $ | 14,938,508 |  
|                                                 |  |                      |  |                                  |          |   |            
|Net Loss                                         |  |                      |  |                                  |          |   |             |   |                          |  |   |                    |   |  |                                            | (473,265   | ) |       |   |         |   |  |   | (473,265   | )
|Unrealized loss on securities available for sale |  |                      |  |                                  |          |   |             |   |                          |  |   |                    |   |  |                                            |            |   |       |   | (35,583 | ) |  |   | (35,583    | )
|                                                 |  |                      |  |                                  |          |   |             |   |                          |  |   |                    |   |  |                                            |            |   |       |   |         |   |  |   |            |  
|Total comprehensive loss                         |  |                      |  |                                  |          |   |             |   |                          |  |   |                    |   |  |                                            |            |   |       |   |         |   |  |   | (508,848   | )
|Common stock issued                              |  | 42,733               |  |                                  |          |   |             |   | 427                      |  |   | 640,068            |   |  |                                            |            |   |       |   |         |   |  |   | 640,495    |  
|Expenses of stock offering                       |  |                      |  |                                  | (934     | ) |             |   |                          |  |   |                    |   |  |                                            |            |   |       |   |         |   |  |   | (934       | )
|Transfer of stock offering expenses              |  |                      |  |                                  | 187,017  |   |             |   |                          |  |   | (187,017           | ) |  |                                            |            |   |       |   |         |   |  |   |            |  
|Stock compensation expense                       |  |                      |  |                                  |          |   |             |   |                          |  |   | 23,733             |   |  |                                            |            |   |       |   |         |   |  |   | 23,733     |  
|                                                 |  |                      |  |                                  |          |   |             |   |                          |  |   |                    |   |  |                                            |            |   |       |   |         |   |  |   |            |  
|Balance March 31, 2005                           |  | 2,293,241            |  | $                                |          |   |             | $ | 22,932                   |  | $ | 23,229,788         |   |  | $                                          | (8,080,535 | ) |       | $ | (79,231 | ) |  | $ | 15,092,954 |  
|                                                 |  |                      |  |                                  |          |   |             |   |                          |  |   |                    |   |  |                                            |            |   |       |   |         |   |  |   |            |  
|Balance, December 31, 2003                       |  | 2,067,613            |  | $                                |          |   |             | $ | 20,676                   |  | $ | 19,916,482         |   |  | $                                          | (5,025,853 | ) |       | $ | (9,863  | ) |  | $ | 14,901,442 |  
|                                                 |  |                      |  |                                  |          |   |            
|Net Loss                                         |  |                      |  |                                  |          |   |             |   |                          |  |   |                    |   |  |                                            | (916,021   | ) |       |   |         |   |  |   | (916,021   | )
|Unrealized gain on securities available for sale |  |                      |  |                                  |          |   |             |   |                          |  |   |                    |   |  |                                            |            |   |       |   | 11,651  |   |  |   | 11,651     |  
|                                                 |  |                      |  |                                  |          |   |             |   |                          |  |   |                    |   |  |                                            |            |   |       |   |         |   |  |   |            |  
|Total comprehensive loss                         |  |                      |  |                                  |          |   |             |   |                          |  |   |                    |   |  |                                            |            |   |       |   |         |   |  |   | (904,370   | )
|                                                 |  |                      |  |                                  |          |   |            
|Stock compensation expense                       |  |                      |  |                                  |          |   |             |   |                          |  |   | 23,732             |   |  |                                            |            |   |       |   |         |   |  |   | 23,732     |  
|                                                 |  |                      |  |                                  |          |   |             |   |                          |  |   |                    |   |  |                                            |            |   |       |   |         |   |  |   |            |  
|Balance March 31, 2004                           |  | 2,067,613            |  | $                                |          |   |             | $ | 20,676                   |  | $ | 19,940,214         |   |  | $                                          | (5,941,874 | ) |       | $ | 1,788   |   |  | $ | 14,020,804 |  
|                                                 |  |                      |  |                                  |          |   |             |   |                          |  |   |                    |   |  |                                            |            |   |       |   |         |   |  |   |            |  



The accompanying notes
are an integral part of this statement.



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##### Table of Contents

TRANSCOMMUNITY FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31, 2005 AND 2004

(UNAUDITED)



|                                                                                          |  |                              |             |   |      |   |             |  
|----------------------------------------------------------------------------------------- |  | ---------------------------- | ----------- | - | ---- | - | ----------- | -
|                                                                                          |  | Three Months Ended March 31, |            
|                                                                                          |  | 2005                         |             |   | 2004 |  
|Operating Activities:                                                                     |  |                              |             |   |      |   |             |  
|Net loss                                                                                  |  | $                            | (473,265    | ) |      | $ | (916,021    | )
|Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |  |                              |             |   |      |   |             |  
|Provision for loan losses                                                                 |  |                              | 64,561      |   |      |   | 145,796     |  
|Accretion income                                                                          |  |                              | (17,812     | ) |      |   | (9,638      | )
|Depreciation                                                                              |  |                              | 111,562     |   |      |   | 97,120      |  
|Deferred compensation expense                                                             |  |                              | 23,733      |   |      |   | 23,732      |  
|Net change in:                                                                            |  |                              |             |   |      |   |             |  
|Other assets                                                                              |  |                              | (213,946    | ) |      |   | (243,775    | )
|Interest payable                                                                          |  |                              | 17,546      |   |      |   | (2,987      | )
|Accrued expenses and other liabilities                                                    |  |                              | (36,426     | ) |      |   | 124,287     |  
|                                                                                          |  |                              |             |   |      |   |             |  
|Net cash provided by (used in) operating activities                                       |  |                              | (524,047    | ) |      |   | (781,486    | )
|                                                                                          |  |                              |             |   |      |   |             |  
|Investing Activities:                                                                     |  |                              |             |   |      |   |             |  
|Purchase of securities held to maturity                                                   |  |                              | (16,996,293 | ) |      |   | (13,969,965 | )
|Purchase of securities available for sale                                                 |  |                              |             |   |      |   | (2,002,326  | )
|Proceeds from maturities of securities held to maturity                                   |  |                              | 5,000,000   |   |      |   | 12,450,000  |  
|Proceeds from maturities of securities available for sale                                 |  |                              | 10,470,220  |   |      |   | 1,519,965   |  
|Net change in loans                                                                       |  |                              | (139,131    | ) |      |   | (7,447,011  | )
|Payments for the purchase of premises and equipment                                       |  |                              | (599,665    | ) |      |   | (221,190    | )
|                                                                                          |  |                              |             |   |      |   |             |  
|Net cash provided by (used in) investing activities                                       |  |                              | (2,264,869  | ) |      |   | (9,670,527  | )
|                                                                                          |  |                              |             |   |      |   |             |  
|Financing Activities:                                                                     |  |                              |             |   |      |   |             |  
|Net change in federal funds purchased                                                     |  |                              | (251,000    | ) |      |   | 815,000     |  
|Proceeds from sale of common stock                                                        |  |                              | 640,495     |   |      |   |             |  
|Costs associated with stock offering                                                      |  |                              | (934        | ) |      |   |             |  
|Proceeds from note payable                                                                |  |                              |             |   |      |   | 350,000     |  
|Net increase(decrease) in:                                                                |  |                              |             |   |      |   |             |  
|Demand deposits                                                                           |  |                              | (1,153,073  | ) |      |   | 11,441,760  |  
|Savings deposits                                                                          |  |                              | 162,157     |   |      |   | 777,933     |  
|Time deposits                                                                             |  |                              | 5,650,355   |   |      |   | 163,272     |  
|                                                                                          |  |                              |             |   |      |   |             |  
|Net cash provided by financing activities                                                 |  |                              | 5,048,000   |   |      |   | 13,547,965  |  
|                                                                                          |  |                              |             |   |      |   |             |  
|Net Increase in Cash and Cash Equivalents                                                 |  |                              | 2,259,084   |   |      |   | 3,095,952   |  
|                                                                                          |  |                             
|Cash and Cash Equivalents, Beginning of Period                                            |  |                              | 3,760,266   |   |      |   | 8,099,777   |  
|                                                                                          |  |                              |             |   |      |   |             |  
|Cash and Cash Equivalents, End of Period                                                  |  | $                            | 6,019,350   |   |      | $ | 11,195,729  |  
|                                                                                          |  |                              |             |   |      |   |             |  
|Supplemental Information:                                                                 |  |                              |             |   |      |   |             |  
|Interest paid                                                                             |  | $                            | 605,043     |   |      | $ | 405,620     |  
|                                                                                          |  |                              |             |   |      |   |             |  



The accompanying notes
are an integral part of this statement.



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##### Table of Contents

TRANSCOMMUNITY FINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



NOTE 1 ACCOUNTING PRINCIPLES:



The consolidated financial statements of TransCommunity
Financial Corporation and subsidiaries (TransCommunity) conform to generally accepted accounting principles and to general industry practices. In the opinion of management, the accompanying unaudited consolidated financial statements
contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly TransCommunitys financial position as of March 31, 2005, and the results of their operations and cash flows for the three month periods ended
March 31, 2005 and 2004. The notes included herein should be read in conjunction with the notes to financial statements included in the audited December 31, 2004 financial statements for TransCommunity, which statements were included in the
Companys annual report on Form 10-KSB/A filed with the Securities and Exchange Commission on May 16, 2005. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year.



Consolidation Policy



The consolidated financial statements include TransCommunity
Financial Corporation (the Parent Company) and its wholly-owned subsidiaries, Bank of Powhatan, N.A. (Bank of Powhatan) and its wholly-owned subsidiary, Main Street Mortgage and Investment Corporation (Main Street
Mortgage), Bank of Goochland, N.A. (Bank of Goochland), Bank of Louisa, N.A. (Bank of Louisa), TransCommunity Investment Advisors, Inc. and TransCommunity Investment Services, Inc.(collectively,
TransCommunity). All significant intercompany balances and transactions have been eliminated.



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##### Table of Contents

TRANSCOMMUNITY FINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



NOTE 2 INVESTMENT SECURITIES:



The carrying values, gross unrealized gains, gross unrealized losses and approximate fair values of investment securities at March 31, 2005 and 2004 are shown in the table below. As of March 31, 2005 U.S. Agency
Securities with a carrying value of $10,882,541 were pledged as collateral for public deposits.



Securities Available for Sale March 31, 2005



|                                                |  |               |            |                       |   |                        |  |   |            |   |  |   |           
|----------------------------------------------- |  | ------------- | ---------- | --------------------- | - | ---------------------- |  | - | ---------- | - |  | - | ----------
|                                                |  | AmortizedCost |            | Gross UnrealizedGains |   | Gross UnrealizedLosses |  |   | Fair Value
|U.S. Agency discount Notes                      |  | $             | 1,000,100  |                       | $ |                       |  | $ | (1,350     | ) |  | $ | 998,750   
|U.S. Agency notes                               |  |               | 6,429,484  |                       |   |                       |  |   | (77,882    | ) |  |   | 6,351,602 
|                                                |  |               |            |                       |   |                        |  |   |            |   |  |   |           
|Total Securities Available for Sale             |  | $             | 7,429,584  |                       | $ |                       |  | $ | (79,232    | ) |  | $ | 7,350,352 
|                                                |  |               |            |                       |   |                        |  |   |            |   |  |   |           
|Securities Held to Maturity March 31, 2005      |  |               |            |                       |   |                        |  |   |            |   |  |   |           
|                                                |  |               |            |                      
|                                                |  | AmortizedCost |            | GrossUnrealizedGains  |   | Gross UnrealizedLosses |  |   | Fair Value
|U.S. Agency discount Notes                      |  | $             | 10,000,000 |                       | $ |                       |  | $ | (7,167     | ) |  | $ | 9,992,833 
|U.S. Agency notes                               |  |               | 11,898,743 |                       |   |                       |  |   | (123,827   | ) |  |   | 11,774,916
|                                                |  |               |            |                       |   |                        |  |   |            |   |  |   |           
|Total Securities Held to Maturity               |  | $             | 21,898,743 |                       | $ |                       |  | $ | (130,994   | ) |  | $ | 21,767,749
|                                                |  |               |            |                       |   |                        |  |   |            |   |  |   |           
|Securities Available for Sale December 31, 2004 |  |               |            |                       |   |                        |  |   |            |   |  |   |           
|                                                |  |               |            |                      
|                                                |  | AmortizedCost |            | GrossUnrealizedGains  |   | Gross UnrealizedLosses |  |   | Fair Value
|U.S. Agency discount Notes                      |  | $             | 9,490,176  |                       | $ |                       |  | $ | (6,927     | ) |  | $ | 9,483,249 
|U.S. Agency notes                               |  |               | 8,430,130  |                       |   |                       |  |   | (36,915    | ) |  |   | 8,393,215 
|                                                |  |               |            |                       |   |                        |  |   |            |   |  |   |           
|Total Securities Available for Sale             |  | $             | 17,920,306 |                       | $ |                       |  | $ | (43,842    | ) |  | $ | 17,876,464
|                                                |  |               |            |                       |   |                        |  |   |            |   |  |   |           
|Securities Held to Maturity December 31, 2004   |  |               |            |                       |   |                        |  |   |            |   |  |   |           
|                                                |  |               |            |                      
|                                                |  | AmortizedCost |            | Gross UnrealizedGains |   | GrossUnrealizedLosses  |  |   | Fair Value
|U.S. Agency discount Notes                      |  | $             | 4,999,158  |                       | $ | 355                    |  | $ | (1,124     | ) |  | $ | 4,998,389 
|U.S. Agency notes                               |  |               | 4,899,877  |                       |   | 1,875                  |  |   | (31,158    | ) |  |   | 4,870,594 
|                                                |  |               |            |                       |   |                        |  |   |            |   |  |   |           
|Total Securities Held to Maturity               |  | $             | 9,899,035  |                       | $ | 2,230                  |  | $ | (32,282    | ) |  | $ | 9,868,983 
|                                                |  |               |            |                       |   |                        |  |   |            |   |  |   |           



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TRANSCOMMUNITY FINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



NOTE 3 LOANS:



Loans by type are shown in the following schedule:



|                                 |  |                 |         |   |                  |   |         |  
|-------------------------------- |  | --------------- | ------- | - | ---------------- | - | ------- | -
|                                 |  | (In Thousands ) |        
|Type                             |  | March 31,2005   |         |   | December 31,2004 |  
|Commercial and agricultural      |  | $               | 41,294  |   |                  | $ | 41,875  |  
|Real estate -construction        |  |                 | 14,967  |   |                  |   | 33,647  |  
|Real estate -mortgage            |  |                 | 41,102  |   |                  |   | 19,810  |  
|Installment loans to individuals |  |                 | 7,690   |   |                  |   | 9,583   |  
|                                 |  |                 |         |   |                  |   |         |  
|Total loans                      |  |                 | 105,053 |   |                  |   | 104,915 |  
|                                 |  |                
|Less allowance for loan losses   |  |                 | (1,486  | ) |                  |   | (1,422  | )
|                                 |  |                 |         |   |                  |   |         |  
|Net Loans                        |  | $               | 103,567 |   |                  | $ | 103,493 |  
|                                 |  |                 |         |   |                  |   |         |  



NOTE 4 ALLOWANCE FOR LOAN LOSSES:



Transactions in the Banks allowance
for loan losses are shown in the following schedule:



|                             |  |                                     |           |      |   |        
|---------------------------- |  | ----------------------------------- | --------- | ---- | - | -------
|                             |  | For the Three Months EndedMarch 31,
|                             |  | 2005                                |           | 2004
|Balance, beginning of period |  | $                                   | 1,422,078 |      | $ | 842,819
|Provision for loan losses    |  |                                     | 64,561    |      |   | 145,796
|                             |  |                                     |           |      |   |        
|Balance, end of period       |  | $                                   | 1,486,639 |      | $ | 988,615
|                             |  |                                     |           |      |   |        



NOTE 5 STOCK OPTION PLAN:



A stock option plan was adopted by the
Board of Directors of the Bank of Powhatan on May 8, 2001. This Plan was adopted by TransCommunity effective August 15, 2001 in connection with the Reorganization whereby the Bank of Powhatan became a subsidiary of TransCommunity. The purpose of the
Plan is to reward employees and directors for services rendered and investment risks undertaken to date and to promote the success of TransCommunity and its subsidiaries by providing incentives to employees and directors that will promote the
identification of their personal interest with the long-term financial success of the Parent Company, its subsidiaries and with growth in shareholder value. The Plan provides that options for up to 330,000 shares of TransCommunity common stock may
be issued. The exercise price may not be less than 100% of the fair market value of the shares on the award date.



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TRANSCOMMUNITY FINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



NOTE 5 STOCK OPTION PLAN(Continued):



Unless the Stock Option Committee determines otherwise, one-third of an award becomes vested and exercisable on each of the first three
anniversaries of the award date. Each award becomes fully vested and exercisable in the event of a change in control of TransCommunity. All options are subject to exercise or forfeiture if TransCommunitys capital falls below its minimum
requirements, as determined by its primary regulator, and TransCommunitys primary regulator so directs. The Plan will expire on May 7, 2011, unless terminated sooner by the Board of Directors. On May 16, 2001 and April 15, 2003, options to
acquire 45,575 and 222,700 shares, respectively, were awarded under the Plan; these options have an exercise price of $10 per share and a term of ten years. In addition, on April 15, 2003, options were awarded to executive officers, under existing
employments agreements, to acquire 51,000 shares. These options were fully exercisable at March 31, 2005.



The fair value of each option granted on April 15, 2003 was $3.30 using the Black Scholes Option Pricing method with the
following assumptions: risk free interest rate 4.00%, expected life  10 years, expected volatility  zero and expected dividends of zero. No options have expired as of March 31, 2005, however 700 options have been exercised pursuant to
the Plan.



A summary of the options granted is shown in the
following table:



|                                                             |  |          |           |   |      |   |         |  
|------------------------------------------------------------ |  | -------- | --------- | - | ---- | - | ------- | -
|                                                             |  | March 31 |          
|                                                             |  | 2005     |           |   | 2004 |  
|Outstanding at beginning of the year                         |  |          | 317,375   |   |      |   | 318,675 |  
|Granted                                                      |  |          |           |   |      |   |         |  
|Exercised                                                    |  |          | (100      | ) |      |   |         |  
|Lapsed                                                       |  |          |           |   |      |   | (1300   | )
|                                                             |  |          |           |   |      |   |         |  
|Outstanding at March 31                                      |  |          | 317,275   |   |      |   | 317,375 |  
|                                                             |  |          |           |   |      |   |         |  
|Options exercisable at March 31                              |  |          | 161,175   |   |      |   | 81,378  |  
|                                                             |  |          |           |   |      |   |         |  
|Exercise Price                                               |  | $        | 10.00     |   |      | $ | 10.00   |  
|Weighted average remaining contracted life at March 31, 2005 |  |          | 93 Months |   |      |   |         |  



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TRANSCOMMUNITY FINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



NOTE 5 STOCK OPTION PLAN(Continued):



TransCommunity accounts for the Plan under the recognition and measurement principles of APB No. 25, Accounting for Stock Issued to
Employees, and related Interpretations. No stock-based employee compensation cost is reflected in the net loss, as all options granted under the Plan have an exercise price equal to the market value of the underlying common stock on the date of
grant. The following table illustrates the effect on net loss and loss per share as if TransCommunity had applied the fair value recognition provisions of FASB Statement No. 123, Accounting for Stock-Based Compensation, to the Plan.



|                                                                                                 |  |                             |          |   |      |   |            |  
|------------------------------------------------------------------------------------------------ |  | --------------------------- | -------- | - | ---- | - | ---------- | -
|                                                                                                 |  | Three Months Ended March 31 |         
|                                                                                                 |  | 2005                        |          |   | 2004 |  
|Net loss, as reported                                                                            |  | $                           | (473,265 | ) |      | $ | (916,021   | )
|Deduct: Total stock-based employee compensation expense determined under fair value based method |  |                             | (36,066  | ) |      |   | (118,866   | )
|                                                                                                 |  |                             |          |   |      |   |            |  
|Pro Forma Net Loss                                                                               |  | $                           | (509,331 | ) |      | $ | (1,034,887 | )
|                                                                                                 |  |                             |          |   |      |   |            |  
|Loss per Share:                                                                                  |  |                             |          |   |      |   |            |  
|Basic - as reported                                                                              |  | $                           | (.21     | ) |      | $ | (.44       | )
|                                                                                                 |  |                             |          |   |      |   |            |  
|Basic - pro forma                                                                                |  | $                           | (.22     | ) |      | $ | (.50       | )
|                                                                                                 |  |                             |          |   |      |   |            |  



NOTE 6 LOSS PER SHARE:



The calculation of net loss per common
share for the three month periods ended March 31, 2005 is computed by dividing the net loss by the weighted average number of the common shares outstanding and does not include the anti dilutive effect of stock options outstanding. Therefore, basic
and dilutive losses per share are identical.



NOTE 7 NOTES PAYABLE:



TransCommunity entered into a line of
credit borrowing arrangement with Community Bankers Bank to provide up to $1,700,000 of financing to be used primarily as working capital. The line of credit bears interest at the prime rate as published in the Wall Street Journal plus fifty
basis points. This renewable line of credit, which is secured by 250,000 shares of stock of the Bank of Powhatan owned by TransCommunity, matured on December 31, 2004, and was renewed. At March 31, 2005 and December 31, 2004, TransCommunity had
outstanding borrowings on this line of credit of $1,450,000 carrying an interest rate of 6.25% and 5.75%, respectively.



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NOTE 8 Business Segements:



The following is a condensed consolidating statement of operations for TransCommunity and its subsidiaries
for the three months ending March 31, 2005 and 2004:



Three Months Ended March 31, 2005

(In Thousands)



|                                                 |  |       |         |   |            |   |       |                   |  |   |                 |   |  |               |        |   |              |   |         |   |  |   |         |  
|------------------------------------------------ |  | ----- | ------- | - | ---------- | - | ----- | ----------------- |  | - | --------------- | - |  | ------------- | ------ | - | ------------ | - | ------- | - |  | - | ------- | -
|                                                 |  | Banks |         |   | MainStreet |   |       | FinancialServices |  |   | Trans-Community |   |  | Elimi-nations |        |   | Consolidated |  
|Net interest income 1                            |  | $     | 1,557   |   |            | $ | (14   | )                 |  | $ |                |   |  | $             | (12    | ) |              | $ |        |   |  | $ | 1,531   |  
|Provision for loan losses                        |  |       | (50     | ) |            |   | (15   | )                 |  |   |                |   |  |               |       |   |              |   |        |   |  |   | (65     | )
|Noninterest income 1                             |  |       | 170     |   |            |   | 985   |                   |  |   | 87              |   |  |               | 84     |   |              |   | (127    | ) |  |   | 1,199   |  
|Noninterest expense                              |  |       | (1,339  | ) |            |   | (941  | )                 |  |   | (216            | ) |  |               | (784   | ) |              |   | 127     |   |  |   | (3,153  | )
|Income (Loss) from subsidiaries                  |  |       | 15      |   |            |   |       |                   |  |   |                |   |  |               | 239    |   |              |   | (239    | ) |  |   | 15      |  
|                                                 |  |       |         |   |            |   |       |                   |  |   |                 |   |  |               |        |   |              |   |         |   |  |   |         |  
|Net Income (Loss)                                |  | $     | 353     |   |            | $ | 15    |                   |  | $ | (129            | ) |  |               | (473   | ) |              | $ | (239    | ) |  | $ | (473    | )
|                                                 |  |       |         |   |            |   |       |                   |  |   |                 |   |  |               |        |   |              |   |         |   |  |   |         |  
|Total Assets                                     |  | $     | 147,004 |   |            | $ | 1,398 |                   |  | $ | 0               |   |  | $             | 16,723 |   |              | $ | (17,534 | ) |  | $ | 147,591 |  
|                                                 |  |       |         |   |            |   |       |                   |  |   |                 |   |  |               |        |   |              |   |         |   |  |   |         |  
|                                                
|Three Months Ended March 31, 2004 (In Thousands) | 
|                                                 |  | Banks |         |   | MainStreet |   |       | FinancialServices |  |   | Trans-Community |   |  | Elimi-nations |        |   | Consolidated |  
|Net interest income 1                            |  | $     | 952     |   |            | $ | (8    | )                 |  | $ |                |   |  | $             | 2      |   |              | $ |        |   |  | $ | 946     |  
|Provision for loan losses                        |  |       | (146    | ) |            |   |      |                   |  |   |                |   |  |               |       |   |              |   |        |   |  |   | (146    | )
|Noninterest income 1                             |  |       | 93      |   |            |   | 545   |                   |  |   |                |   |  |               |       |   |              |   |        |   |  |   | 638     |  
|Noninterest expense                              |  |       | (1,077  | ) |            |   | (649  | )                 |  |   |                |   |  |               | (628   | ) |              |   |        |   |  |   | (2,354  | )
|Income (Loss) from subsidiaries                  |  |       | (112    | ) |            |   |       |                   |  |   |                |   |  |               | (290   | ) |              |   | 402     |   |  |   |        |  
|                                                 |  |       |         |   |            |   |       |                   |  |   |                 |   |  |               |        |   |              |   |         |   |  |   |         |  
|Net Income (Loss)                                |  | $     | (290    | ) |            | $ | (112  | )                 |  | $ |                |   |  |               | (916   | ) |              | $ | 402     |   |  | $ | (916    | )
|                                                 |  |       |         |   |            |   |       |                   |  |   |                 |   |  |               |        |   |              |   |         |   |  |   |         |  
|Total Assets                                     |  | $     | 107,241 |   |            | $ | 1,359 |                   |  | $ |                |   |  | $             | 15,620 |   |              | $ | (11,679 | ) |  | $ | 112,541 |  
|                                                 |  |       |         |   |            |   |       |                   |  |   |                 |   |  |               |        |   |              |   |         |   |  |   |         |  

---

|1 | All revenue is received from external customers except for interest paid by Main Street Mortgage to Bank of Powhatan.
|- | ---------------------------------------------------------------------------------------------------------------------



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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations



The following discussion is qualified in its entirety by the more detailed information and the financial statements and accompanying notes appearing
elsewhere in this Form 10-QSB. In addition to the historical information contained herein, this report on Form 10-QSB contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies, and expectations of TransCommunity Financial Corporation and its subsidiaries, are generally
identifiable by use of the words believe, expect, intend, anticipate, estimate, project, may, will, or similar expressions. Although we believe our
plans, intentions and expectations reflected in these forward-looking statements are reasonable, we can give no assurance that these plans, intentions or expectations will be achieved. Our ability to predict results or the actual effect of future
plans or strategies is inherently uncertain, and actual results, performance or achievements could differ materially from those contemplated. Factors that could have a material adverse effect on our operations and future prospects include, but are
not limited to, changes in: interest rates, general economic conditions, the legislative/regulatory climate, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Board of Governors of the Federal
Reserve System, our ability to raise sufficient capital to support our current operations and to support the growth of our present and any future subsidiary banks, the quality or composition of the loan or investment portfolios, demand for loan
products, deposit flows, competition, demand for financial services in our market area and accounting principles, policies and guidelines. These risks and uncertainties should be considered in evaluating the forward-looking statements contained
herein and you should not place undue reliance on such statements, which reflect our position as of the date of this report.



Overview



The following is managements discussion and analysis of the financial condition and results of operations of TransCommunity as of and for the
quarters ended March 31, 2005 and 2004. This discussion should be read in conjunction with TransCommunitys consolidated financial statements and accompanying notes included elsewhere herein.



TransCommunity Financial Corporation



TransCommunity Financial Corporation (TCF) is a community bank
holding company headquartered in Glen Allen, Virginia. TCF was organized in March 2001, and became a bank holding company in August 2001. Effective February 25, 2004, TCF became a financial holding company pursuant to the Graham-Leach Bliley
amendments to the Bank Holding Company Act. TCF operates a community banking business in Central Virginia through its three national bank subsidiaries, Bank of Powhatan, N.A., Bank of Goochland, N.A. and Bank of Louisa, N.A. TCF became the holding
company for Bank of Powhatan on August 15, 2001, through a statutory share exchange transaction. Bank of Goochland, with two offices in Goochland County, opened for business on November 25, 2002. Bank of Louisa was originally established as a branch
office of the Bank of Powhatan in July 2003, and was spun off as a separately chartered national bank subsidiary of TCF in April 2004.



TCFs strategy is to grow principally through the establishment of de novobanks in relatively under-banked communities experiencing faster
than average growth. TCF also seeks to reduce the operating expenses of its subsidiary banks by providing certain common operational and administrative services required by its subsidiary banks, each of which operates under a separate name, with its
own local board of directors and local management team.



TCF
also provides certain non-banking services under its financial holding company structure. In 2003, TCF established as a subsidiary TransCommunity Investment Advisors, Inc., a registered investment advisor. In January of 2004, TCF applied for and was
granted trust banking



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##### Table of Contents

powers for both Bank of Powhatan and Bank of Goochland. Similarly, Bank of Louisa was granted trust banking powers at the
time it commenced operations as a separately chartered national bank. In addition, during the first quarter of 2004, TCF established as a subsidiary TransCommunity Investment Services, Inc. to offer insurance and securities brokerage products and
services. TransCommunity has consolidated the operation of the trust banking functions of its subsidiary banks, as well as the operations of its registered investment advisor and insurance agency, in a Financial Services division of the holding
company.



TCFs mortgage loan affiliate, Main Street
Mortgage and Investment Corporation (Main Street Mortgage), operates as a wholly owned subsidiary of Bank of Powhatan. Main Street Mortgage currently operates two offices in the Richmond area and one office in each of Danville, Lynchburg
and Virginia Beach, Virginia. Main Street Mortgage also has mortgage loan officers on site in each of TCFs subsidiary banks.



At March 31, 2005, TransCommunity Financial Corporation and its subsidiaries (collectively TransCommunity) had, on a consolidated basis, total
assets of $147.5 million, total deposits of $128.3 million, total loans of $105.1 million, and total stockholders equity of $15.1 million.



Critical Accounting Policies



Certain critical accounting policies reflect significant judgments and estimates used in the preparation of our consolidated financial statements. Our
single most critical accounting policy relates to our allowance for loan losses, which reflects the estimated losses resulting from the inability of our borrowers to make required payments. If the financial condition of our borrowers were to
deteriorate, resulting in an impairment of their ability to make payments, our estimates would be updated, and additional allowances might be required. For further discussion of the estimates used in determining the allowance for loan losses, we
refer you to the discussion on Provision for Loan Losses below.



Results of Operations and Financial Condition



Consolidated



Net Loss



For the three months ended March 31, 2005, TransCommunity had a net loss of
$473,265 compared with a net loss of $916,021 for the three months ended March 31, 2004. The net loss per share was $.21 in 2005 compared with $.44 per share for the same period in 2004.



The significant decrease in TransCommunitys net losses during the first quarter of 2005 results from improved
performance at all of its affiliates, related to favorable growth in loans and deposits at each of its three subsidiary banks, as well as improved results at TransCommunitys mortgage banking affiliate. Both Bank of Powhatan and Bank of
Goochland, as well as the mortgage banking affiliate, Main Street Mortgage, produced an operating profit for the first quarter of 2005 versus a loss for each of those banks as well as the mortgage company during the same period in 2004. Also, the
Bank of Louisa reduced substantially its operating loss for the quarter over the results achieved during 2004.



The Bank of Powhatan contributed net income of $271,050 during the first quarter of 2005 compared to a loss of $180,975 for the same period in 2004. Bank
of Powhatans losses a year ago resulted from costs associated with the operation of its branch office in Louisa County, which was spun off to form the Bank of Louisa in April 2004.



The Bank of Goochland, which was chartered in late November 2002, became profitable on a monthly operating basis in August
2004, and ended the year 2004 with a loss of less than $25,000. During the first quarter of 2005, Bank of Goochland contributed net profits of $154,146, compared to a loss of $109,484 for the first quarter of 2004.



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##### Table of Contents

The Bank of Louisa, which was spun off as a separately chartered bank in April 2004, incurred a loss of
$57,293 during the first quarter of 2005, down from losses of $163,507 during the final quarter of 2004.



Main Street Mortgage, a wholly-owned subsidiary of Bank of Powhatan, contributed income of $14,833 during the first quarter of 2005, compared to a loss of
$112,190 during the same period in 2004. These results are consolidated in the operating results for the Bank of Powhatan.



Net Interest Margin



TransCommunitys consolidated net interest margin was 4.69% for the three months ended March 31, 2005, compared with 3.92% for the three months ended
March 31, 2004. The increase in the net interest margin in the current interest rate environment compares favorably with the experience of many other commercial banks. The increase in net interest margin reflects the growth in the Banks loan
portfolios and the resulting increase in their loan to deposit ratios. Also, TransCommunitys subsidiary banks were able to increase their average yield on loans by 56 basis points while only increasing their average cost of funds by 22 basis
points during thefirst quarter of 2005.



TransCommunitys net interest margin analysis and average balance sheets for the three months ended March 31, 2005 and
2004, are shown in Schedule I on page 19.



Provision for Loan Losses



TransCommunitys consolidated provision for loan
losses for the first three months of 2005 was $64,561, resulting in a consolidated allowance for loan losses of $1,486,639 (1.42% of total loans) at March 31, 2005. The calculation of the allowance for loan losses is considered a critical accounting
policy. The allowance for loan losses is evaluated on a regular basis by management, based upon managements periodic review of the collectibility of the loans that considers industry historical loss experience, the nature and volume of the
loan portfolio, adverse situations that may affect a borrowers ability to repay, estimated value of any underlying collateral and prevailing economic conditions. The allowance is calculated using risk factors depending on the type of borrower
and whether the loan is secured or unsecured. Loans that are classified adversely are assigned a risk percentage based on the classification to which they are assigned. In addition, an allowance is established for problem loans individually or by
grouping. Bank of Goochland and Bank of Louisa, as de novo banks not yet in business three years, use a loss experience rate based on peer bank data when establishing the provision for loan losses, subject to upward adjustment for any
individually identified problem loans. The methodology used by TransCommunitys subsidiary banks to calculate the provision for loan losses is inherently subjective as it requires estimates that are susceptible to significant revision as more
information becomes available. As TransCommunitys subsidiary banks develop a historical loss experience, they will reduce reliance on peer bank statistics, and the evaluation methodology will be adjusted to reflect actual experience.



Noninterest Income



Noninterest income increased from $637,347 in the first three months of 2004
to $1,201,105 in the first three months of 2005. Noninterest income as a percentage (annualized) of average assets for the first three months of 2005 was 3.34% compared to 2.39% for the first three months of 2004. Commissions and fees received by
Main Street Mortgage increased $441,505, or 81.04%, due to the increase in the volume of loans originated. Bank service charges and fees increased $122,253, or 132.08%, due to the continuing increase in TransCommunitys customer base and
deposits.



Noninterest Expense



Noninterest expense increased from $2,353,145 in the first three months of
2004 to $3,139,909 in the first three months of 2005. A schedule of noninterest expense by company or division is shown below. The expenses of Main Street Mortgage are mostly salaries and



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##### Table of Contents

commissions related to the origination of mortgage loans. The expenses of TransCommunity relate mainly to on-going
operation of the holding companys support services for the banks to the extent those costs are not being fully allocated to the banks, the continuing start-up operations of the asset management/trust banking services and insurance agency and
preliminary expenses incurred in connection with efforts to organize a new subsidiary bank in Rockbridge County, Virginia. Bank of Powhatans decrease in expenses reflects the elimination of the expenses associated with the operation of the
branch office in Louisa during the first quarter of 2004. This branch was spun off as a stand alone national bank in April 2004. Noninterest expense, as a percentage (annualized) of average assets, improved slightly for the first three months of
2005 to 8.74%, down from 8.83% for the first three months of 2004.



Income
Taxes



No provision for income tax benefits associated
with the net losses has been recorded in the statement of operations since, at this time, there is insufficient evidence to conclude that TransCommunity will produce taxable income in the future. Accordingly, the deferred tax asset related to the
tax loss carryforwards and other deductible temporary differences have been reduced by a valuation allowance. Management will continue to monitor TransCommunitys trend toward profitable operations and when sufficient evidence becomes
available, TransCommunity will reduce the valuation allowance and recognize the related tax benefit in the statement of operations.



Loans



Total loans increased $139,131 during the first three months of 2005 to $105,053,830.



Loans by type are shown in the following schedule:



|                                 |  |                |         |   |                  |   |         |  
|-------------------------------- |  | -------------- | ------- | - | ---------------- | - | ------- | -
|                                 |  | (In Thousands) |        
|Type                             |  | March 31,2005  |         |   | December 31,2004 |  
|Commercial and agricultural      |  | $              | 41,294  |   |                  | $ | 41,875  |  
|Real estate -construction        |  |                | 14,967  |   |                  |   | 33,647  |  
|Real estate -mortgage            |  |                | 41,102  |   |                  |   | 19,810  |  
|Installment loans to individuals |  |                | 7,690   |   |                  |   | 9,583   |  
|                                 |  |                |         |   |                  |   |         |  
|Total loans                      |  |                | 105,053 |   |                  |   | 104,915 |  
|                                 |  |               
|Less allowance for loan losses   |  |                | (1,486  | ) |                  |   | (1,422  | )
|                                 |  |                |         |   |                  |   |         |  
|Net Loans                        |  | $              | 103,567 |   |                  | $ | 103,493 |  
|                                 |  |                |         |   |                  |   |         |  



Nonaccrual and Restructured Loans



At March 31, 2005, TransCommunity did not have any loans
classified as nonaccrual or restructured. Loans in the amount of $438,000 (consisting principally of a single loan) were in a nonaccrual status as of March 31, 2004. Loans are placed in a non-accrual status when, in the opinion of management, the
accrued interest income may not be collected.



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##### Table of Contents

Allocation for the Allowance for Loan Losses



The following table shows the allocation for the allowance for loan losses at:



|                                       |  |                |           |                                               |                   |   |        |   |                                               |  |     |  
|-------------------------------------- |  | -------------- | --------- | --------------------------------------------- | ----------------- | - | ------ | - | --------------------------------------------- |  | --- | -
|                                       |  | March 31, 2005 |           |                                               | December 31, 2004 |  
|Balance at end of period applicable to |  | Amount         |           | Percent ofloans in eachcategory tototal loans |                   |   | Amount |   | Percent ofloans in eachcategory tototal loans | 
|Commercial                             |  | $              | 584,371   |                                               | 40                | % |        | $ | 567,598                                       |  | 40  | %
|Real estate - construction             |  |                | 211,801   |                                               | 14                | % |        |   | 456,071                                       |  | 32  | %
|Real estate - mortgage                 |  |                | 581,639   |                                               | 39                | % |        |   | 268,516                                       |  | 19  | %
|Installment                            |  |                | 108,828   |                                               | 7                 | % |        |   | 129,893                                       |  | 9   | %
|                                       |  |                |           |                                               |                   |   |        |   |                                               |  |     |  
|Total Allowance for Loan Losses        |  | $              | 1,486,639 |                                               | 100               | % |        | $ | 1,422,078                                     |  | 100 | %
|                                       |  |                |           |                                               |                   |   |        |   |                                               |  |     |  



Deposits



TransCommunitys deposits increased $4,659,439 during the first three
months of 2005 to $128,321,355 at March 31, 2005. A schedule of deposits by type is shown in the Companys consolidated statements of financial condition. Time deposits of $100,000 or more equaled 21.91% of deposits at March 31, 2005.



Capital



As of March 31, 2005, Bank of Powhatan had a ratio of Tier 1 capital to assets of 10.09%, well in excess of the 6% ratio
required by federal regulatory agencies for Bank of Powhatan to be considered well capitalized. At the same date, Bank of Louisa had a Tier 1 capital to asset ratio of 19.12%, significantly greater than the 8% ratio required for a bank
during its first three years of operations. Although TransCommunity expects both of these ratios to decrease in 2005 as both banks continue to grow, it nevertheless expects both banks to remain well capitalized with Tier 1 capital ratios
well above required regulatory minimums at December 31, 2005. Bank of Goochland, which opened for business in 2002, has grown especially quickly. For this reason, in December 2004 TransCommunity added $500,000 to the capital of Bank of Goochland,
which had a Tier 1 capital to assets ratio of 8.50% at March 31, 2005. TransCommunity expects it may have to further increase Bank of Goochlands capital before the end of 2005 in order for it to continue to meet the 8% minimum Tier 1 capital
to assets ratio required for new banks to be considered well capitalized during their first three years of operations.



Liquidity and Interest Sensitivity



At March 31, 2005, TransCommunity had consolidated liquid assets of approximately $13.4 million in the form of cash, federal funds sold and
available-for-sale investments. With respect to each of the subsidiary banks, management believes that liquid assets are adequate at March 31, 2005. Management anticipates that additional liquidity will be provided for the banks by the growth in
deposit accounts and loan repayments. TransCommunitys bank subsidiaries also have the ability



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##### Table of Contents

to purchase federal funds and borrow from the Federal Reserve Bank, if necessary. TransCommunity has established a line
of credit of $1,700,000 with a non-affiliated bank that is secured by pledging a portion of the outstanding shares of Bank of Powhatan, to use for working capital at the parent holding company level. Of this amount, $250,000 remained available at
March 31, 2005. Nevertheless, at the parent holding company level, TransCommunitys liquidity is dependent on borrowed funds, dividends from its subsidiary banks, and capital obtained through the sale of shares of TransCommunity common stock.
At March 31, 2005, TransCommunitys liquidity at the holding company level was believed to be sufficient for operations over the next several quarters but not sufficient for continued longer-term operations, absent an additional infusion of
capital or a restructuring of certain of its holding company operations.



Historically, TransCommunity has relied primarily on non-underwritten public offerings of its stock to support its operations. As a result, TransCommunitys liquidity, particularly at the holding company level,
has been and continues to be significantly affected by its ability to sell capital stock. In May 2004, TransCommunity commenced a non-underwritten public offering of up to 1,000,000 shares of its common stock at a price of $15 per share. In February
2005, TransCommunity terminated this offering, through which it sold 225,628 shares and received proceeds of $3,197,403 which is net of offering expenses totaling $187,017. TransCommunity is exploring an alternative strategy seeking to raise larger
amounts of capital more quickly and efficiently than has been possible through a non-underwritten public offering of the type previously utilized by TransCommunity. There is no assurance that TransCommunity will be successful in its efforts to raise
additional capital. If TransCommunity is not successful in raising significant additional capital, it will have to consider restructuring certain of its holding company operations.



TransCommunitys subsidiary banks are restricted in their ability to pay dividends to TransCommunity and only Bank of
Powhatan is legally able to do so at the present time. Nevertheless, even if legally permitted to pay dividends, the subsidiary banks may be required to retain earnings in order to support their own continued growth in loans and deposits. As a
result, until TransCommunity is able to develop sufficient levels of other fee-based sources of income at the parent holding company level to support its operations, it will remain dependent on borrowings or on the sale of stock to generate funds to
support its operations. The inability of TransCommunity to sell a significant number of additional shares of capital stock would likely have a material adverse effect on TransCommunitys financial position and its ability to execute its current
business plan. Other than as stated, management is not aware of any trends, events or uncertainties that are reasonably likely to have a material impact on TransCommunitys short term or long term liquidity.



At March 31, 2005, TransCommunity had a positive cumulative Gap Rate
Sensitivity Ratio of 8.14% for the one year repricing period. This generally indicates that earnings would improve in a increasing interest rate environment as assets reprice more quickly than liabilities. Conversely, earnings would probably
decrease in periods during which interest rates are decreasing if management were unable to adjust its asset/liability planning strategy. Management constantly monitors the interest rate risk and believes that the current position is an acceptable
risk for a growing community bank.



TransCommunitys
interest rate sensitivity analysis is shown in Schedule II on page 20 .



Future Prospects



TransCommunitys
strategy is to grow principally through the establishment of de novo banks in relatively under-banked communities experiencing faster-than-average growth. Newly-chartered banking institutions normally experience losses during their early
years of operation, as it takes time to build a loan portfolio generating sufficient interest income to offset operating costs.



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##### Table of Contents

Management anticipates that Bank of Powhatan and Bank of Goochland will experience continued growth and
continued profitability in 2005, and that during 2005 Bank of Powhatan will continue to be positioned to pay dividends to TransCommunity.



We anticipate that our newest bank subsidiary, Bank of Louisa, as well as future de novo banks we may establish, will initially experience operating
losses as they establish their customer base, but that each institution will reach profitability as they execute TransCommunitys community banking strategy and take advantage of the operational cost savings afforded by using
TransCommunitys common operating platform. Additionally, TransCommunitys new Financial Services division, offering asset management, trust banking, securities brokerage and insurance will begin generating revenues during 2005, and is
expected to contribute to TransCommunitys profitability in the years ahead, though not in 2005.



Nevertheless, our future prospects will be significantly impacted by our ability to raise sufficient capital through the sale of shares of our stock, as
described above under Liquidity and Interest Sensitivity. If we are unable to raise sufficient additional capital, we will not be able to charter new de novo banks, and we would have substantial difficulties supporting our current
levels of operations, particularly those provided at the holding company level.



As previously reported, in February 2005, TransCommunity withdrew its application to form a de novo national bank subsidiary in Rockbridge County, Virginia, under the name Bank of Rockbridge. Nevertheless,
subject to its ability to adequately capitalize a new bank subsidiary, TransCommunity remains committed to establishing a banking presence in Rockbridge County and it intends to continue to explore all available alternatives for doing so.



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##### Table of Contents

Schedule I



TRANSCOMMUNITY FINANCIAL CORPORATION

NET INTEREST MARGIN ANALYSIS

AVERAGE BALANCE SHEET

FOR THE THREE MONTHS ENDED MARCH 31, 2005 AND 2004



|                                           |  |                      |             |                |      |            |                         |  |      |                      |  |                |             |  |                         |             |   |  |      |  
|------------------------------------------ |  | -------------------- | ----------- | -------------- | ---- | ---------- | ----------------------- |  | ---- | -------------------- |  | -------------- | ----------- |  | ----------------------- | ----------- | - |  | ---- | -
|                                           |  | 2005                 |             |                | 2004 |           
|                                           |  | AverageBalance Sheet |             | Income/Expense |      |            | AverageRatesEarned/Paid |  |      | AverageBalance Sheet |  | Income/Expense |             |  | AverageRatesEarned/Paid |            
|ASSETS                                     |  |                      |             |                |      |            |                         |  |      |                      |  |                |             |  |                         |             |   |  |      |  
|Loans                                      |  | $                    | 104,608,228 |                | $    | 1,976,467  |                         |  | 7.56 | %                    |  | $              | 70,933,418  |  | $                       | 1,241,842   |   |  | 7.00 | %
|Federal funds sold                         |  |                      | 9,180,333   |                |      | 54,701     |                         |  | 2.38 | %                    |  |                | 8,430,583   |  |                         | 19,636      |   |  | 0.93 | %
|Investments                                |  |                      | 16,666,271  |                |      | 121,521    |                         |  | 2.92 | %                    |  |                | 17,041,212  |  |                         | 86,728      |   |  | 2.04 | %
|                                           |  |                      |             |                |      |            |                         |  |      |                      |  |                |             |  |                         |             |   |  |      |  
|Total Earning Assets                       |  |                      | 130,454,832 |                |      | 2,152,689  |                         |  | 6.60 | %                    |  |                | 96,405,213  |  |                         | 1,348,206   |   |  | 5.59 | %
|                                           |  |                      |             |                |      |            |                         |  |      |                      |  |                |             |  |                         |             |   |  |      |  
|Allowance for loan losses                  |  |                      |             |                |      | (1,447,089 | )                       |  |      |                      |  |                |             |  |                         | (914,048    | ) |  |      |  
|Non-earning assets                         |  |                      | 14,708,659  |                |      |            |                         |  |      |                      |  |                | 11,128,343  |  |                         |             |   |  |      |  
|                                           |  |                      |             |                |      |            |                         |  |      |                      |  |                |             |  |                         |             |   |  |      |  
|Total Assets                               |  | $                    | 143,716,402 |                |      |            |                         |  |      |                      |  |                |             |  | $                       | 106,619,508 |   |  |      |  
|                                           |  |                      |             |                |      |            |                         |  |      |                      |  |                |             |  |                         |             |   |  |      |  
|LIABILITIES AND STOCKHOLDERS EQUITY       |  |                      |             |                |      |            |                        
|Deposits                                   |  |                      |             |                |      |            |                         |  |      |                      |  |                |             |  |                         |             |   |  |      |  
|Demand - Interest bearing                  |  | $                    | 34,399,204  |                | $    | 87,175     |                         |  | 1.01 | %                    |  | $              | 19,911,571  |  | $                       | 47,013      |   |  | 0.94 | %
|Savings                                    |  |                      | 8,612,098   |                |      | 23,016     |                         |  | 1.07 | %                    |  |                | 6,320,279   |  |                         | 15,690      |   |  | 0.99 | %
|Time deposits                              |  |                      | 64,646,220  |                |      | 490,904    |                         |  | 3.04 | %                    |  |                | 50,329,346  |  |                         | 322,902     |   |  | 2.57 | %
|                                           |  |                      |             |                |      |            |                         |  |      |                      |  |                |             |  |                         |             |   |  |      |  
|Total Deposits                             |  |                      | 107,657,522 |                |      | 601,095    |                         |  | 2.23 | %                    |  |                | 76,561,196  |  |                         | 385,605     |   |  | 2.01 | %
|                                           |  |                      |             |                |      |           
|Other borrowed Funds                       |  |                      | 2,664,467   |                |      | 21,494     |                         |  | 3.23 | %                    |  |                | 1,548,670   |  |                         | 17,028      |   |  | 4.40 | %
|                                           |  |                      |             |                |      |            |                         |  |      |                      |  |                |             |  |                         |             |   |  |      |  
|Total Interest Bearing Liabilities         |  |                      | 110,321,989 |                |      | 622,589    |                         |  | 2.26 | %                    |  |                | 78,109,866  |  |                         | 402,633     |   |  | 2.06 | %
|                                           |  |                      |             |                |      |            |                         |  |      |                      |  |                |             |  |                         |             |   |  |      |  
|Non-interest bearing Deposits              |  |                      | 17,484,403  |                |      |            |                         |  |      |                      |  |                |             |  |                         | 12,966,129  |   |  |      |  
|Other liabilities                          |  |                      | 776,418     |                |      |            |                         |  |      |                      |  |                | 310,437     |  |                         |             |   |  |      |  
|                                           |  |                      |             |                |      |            |                         |  |      |                      |  |                |             |  |                         |             |   |  |      |  
|Total Liabilities                          |  |                      | 128,582,810 |                |      |            |                         |  |      |                      |  |                |             |  |                         | 91,386,432  |   |  |      |  
|                                           |  |                      |             |                |      |           
|Stockholders Equity                       |  |                      | 15,133,592  |                |      |            |                         |  |      |                      |  |                | 15,233,076  |  |                         |             |   |  |      |  
|                                           |  |                      |             |                |      |            |                         |  |      |                      |  |                |             |  |                         |             |   |  |      |  
|Total Liabilities and Stockholders Equity |  | $                    | 143,716,402 |                |      |            |                         |  |      |                      |  | $              | 106,619,508 |  |                         |             |   |  |      |  
|                                           |  |                      |             |                |      |            |                         |  |      |                      |  |                |             |  |                         |             |   |  |      |  
|Net Interest Earnings                      |  |                      |             |                | $    | 1,530,100  |                         |  |      |                      |  |                |             |  | $                       | 945,573     |   |  |      |  
|                                           |  |                      |             |                |      |            |                         |  |      |                      |  |                |             |  |                         |             |   |  |      |  
|Net Interest Margin                        |  |                      |             |                |      |            |                         |  | 4.69 | %                    |  |                |             |  |                         |             |   |  | 3.92 | %
|                                           |  |                      |             |                |      |            |                         |  |      |                      |  |                |             |  |                         |             |   |  |      |  
|Interest Spread                            |  |                      |             |                |      |            |                         |  | 4.34 | %                    |  |                |             |  |                         |             |   |  | 3.53 | %
|                                           |  |                      |             |                |      |            |                         |  |      |                      |  |                |             |  |                         |             |   |  |      |  



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Schedule II



TRANSCOMMUNITY FINANCIAL CORPORATION

INTEREST SENSITIVITY ANALYSIS

MARCH 31, 2005



|                                                |  |                  |            |   |              |   |            |              |  |   |            |   |  |   |            
|----------------------------------------------- |  | ---------------- | ---------- | - | ------------ | - | ---------- | ------------ |  | - | ---------- | - |  | - | -----------
|                                                |  | Less than 1 Year |            |   | 1 to 5 Years |   |            | Over 5 Years |  |   | Total     
|Uses of Funds:                                  |  |                  |            |   |              |   |            |              |  |   |            |   |  |   |            
|                                                |  |                  |            |  
|Loans:                                          |  |                  |            |   |              |   |            |              |  |   |            |   |  |   |            
|Commercial                                      |  | $                | 19,334,954 |   |              | $ | 19,096,761 |              |  | $ | 2,863,057  |   |  | $ | 41,294,772 
|Real estate                                     |  |                  | 42,438,940 |   |              |   | 11,487,124 |              |  |   | 2,142,623  |   |  |   | 56,068,687 
|Installment                                     |  |                  | 5,010,135  |   |              |   | 2,588,160  |              |  |   | 92,076     |   |  |   | 7,690,371  
|                                                |  |                  |            |   |              |   |            |              |  |   |            |   |  |   |            
|Total Loans                                     |  |                  | 66,784,029 |   |              |   | 33,172,045 |              |  |   | 5,097,756  |   |  |   | 105,053,830
|                                                |  |                  |            |  
|Federal funds sold                              |  |                  | 885,000    |   |              |   |            |              |  |   |            |   |  |   | 885,000    
|Investment securities at cost                   |  |                  | 16,998,859 |   |              |   | 3,899,884  |              |  |   | 1,000,000  |   |  |   | 21,898,743 
|Investment securities at fair value             |  |                  | 3,982,812  |   |              |   | 3,367,540  |              |  |   |            |   |  |   | 7,350,352  
|                                                |  |                  |            |   |              |   |            |              |  |   |            |   |  |   |            
|Total                                           |  | $                | 88,650,700 |   |              | $ | 40,439,469 |              |  | $ | 6,097,756  |   |  | $ | 135,187,925
|                                                |  |                  |            |   |              |   |            |              |  |   |            |   |  |   |            
|Sources of Funds:                               |  |                  |            |   |              |   |            |              |  |   |            |   |  |   |            
|                                                |  |                  |            |  
|Demand Deposits Interest bearing                |  | $                | 33,217,517 |   |              | $ |            |              |  | $ |            |   |  | $ | 33,217,517 
|Savings accounts                                |  |                  | 8,664,640  |   |              |   |            |              |  |   |            |   |  |   | 8,664,640  
|Time Deposits:                                  |  |                  |            |   |              |   |            |              |  |   |            |   |  |   |            
|Under $100,000                                  |  |                  | 19,344,800 |   |              |   | 21,203,279 |              |  |   |            |   |  |   | 40,548,079 
|Over $100,000                                   |  |                  | 12,939,024 |   |              |   | 15,169,947 |              |  |   |            |   |  |   | 28,108,971 
|                                                |  |                  |            |   |              |   |            |              |  |   |            |   |  |   |            
|Total Deposits                                  |  |                  | 74,165,981 |   |              |   | 36,373,226 |              |  |   |            |   |  |   | 110,539,207
|                                                |  |                  |            |  
|Federal funds purchased                         |  |                  | 2,026,000  |   |              |   |            |              |  |   |            |   |  |   | 2,026,000  
|Borrowings                                      |  |                  | 1,450,000  |   |              |   |            |              |  |   |            |   |  |   | 1,450,000  
|                                                |  |                  |            |   |              |   |            |              |  |   |            |   |  |   |            
|Total                                           |  | $                | 77,641,981 |   |              | $ | 36,373,226 |              |  | $ |            |   |  | $ | 114,015,207
|                                                |  |                  |            |   |              |   |            |              |  |   |            |   |  |   |            
|Discrete Gap                                    |  |                  | 11,008,719 |   |              |   | 4,066,243  |              |  |   | 6,097,756  |   |  |   | 21,172,718 
|Cumulative Gap                                  |  |                  | 11,008,719 |   |              |   | 15,074,962 |              |  |   | 21,172,718 |   |  |   |            
|                                                |  |                  |            |  
|Ratio of Cumulative Gap to Total Earning Assets |  |                  | 8.14       | % |              |   | 11.15      | %            |  |   | 15.66      | % |  |   |            
|                                                |  |                  |            |   |              |   |            |              |  |   |            |   |  |   |            





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##### Table of Contents

Item 3. Controls and Procedures



(a) Evaluation of Disclosure Controls and Procedures



As a result of the enactment of the Sarbanes-Oxley Act of 2002, issuers such as TransCommunity that file periodic reports under the Securities Exchange Act of 1934 (the Act) are required to include in those reports certain
information concerning the issuers controls and procedures for complying with the disclosure requirements of the federal securities laws. These disclosure controls and procedures include, without limitation, controls and procedures designed to
ensure that information required to be disclosed by an issuer in the reports it files or submits under the Act, is accumulated and communicated to the issuers management, including its principal executive officer or officers and principal
financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosures.



We have established disclosure controls and procedures to ensure that material information related to TransCommunity is available to or made known to our
principal executive officers and principal financial officer on a regular basis, in particular during the periods in which our quarterly and annual reports are being prepared. As required, we evaluate the effectiveness of these disclosure controls
and procedures on a quarterly basis, and have done so as of the end of the period covered by this report. Based on this evaluation, TransCommunitys management, including the Chief Executive Officer and the Chief Financial Officer, concluded
that TransCommunitys disclosure controls and procedures were operating effectively as designed as of the date of such evaluation.



Notwithstanding the foregoing, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that
the Companys disclosure controls and procedures will detect or uncover every situation involving the failure of persons within the Company and its consolidated subsidiaries to disclose material information otherwise required to be set forth in
the Companys periodic reports.



(b) Changes in
Internal Controls



The Companys management is also
responsible for establishing and maintaining adequate internal controls over financial reporting and control of its assets to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with generally accepted accounting principles. During the quarter ended March 31, 2005, in the course of the audit of the Companys financial statements for 2004 and its review of the Companys Form
10-KSB for 2004, the Companys independent auditors noted a weakness in controls over the financial reporting process amounting to a significant deficiency. This weakness reflected a need for improved controls to ensure accuracy and
completeness in the preparation of financial reports, including adequate review and verification of report contents and supporting documentation, including spreadsheets. In order to address this issue and to improve the Companys financial
reporting process generally, the Company has added an internal controller to its staff. The Company is also undertaking to address other recommendations made by the auditors, none of which was categorized as a significant deficiency. Other than
those noted in the preceding sentence, during TransCommunitys most recent fiscal quarter, there were no significant changes in TransCommunitys internal controls pertaining to its financial reporting and control of its assets or in other
factors that could significantly affect these controls.



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##### Table of Contents

Part II Other Information



Item 1. Legal Proceedings



None.



Item 2. Unregistered Sales of Equity Securities and Use of Proceeds



None.



Item 3. Defaults Upon Senior Securities



None.



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



None.



Item 5. Other Information



None.



Item 6. Exhibits



Exhibits



The following exhibits are filed or incorporated by reference as part of
this Form 10-QSB



|            |  |                                                                                                                                                                                                                         
|----------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Description of Exhibits                                                                                                                                                                                                 
|3.1         |  | Articles of Incorporation of TransCommunity (as amended May 25, 2004) (1)                                                                                                                                               
|            | 
|3.2         |  | Bylaws of TransCommunity (as amended May 25, 2004) (2)                                                                                                                                                                  
|            | 
|31.1        |  | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) (filed herewith).                                                                                                                                   
|            | 
|31.2        |  | Certification of Chief Operating Officer pursuant to Rule 13a-14(a) (filed herewith).                                                                                                                                   
|            | 
|31.3        |  | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) (filed herewith).                                                                                                                                   
|            | 
|32          |  | Certifications of Chief Executive Officer, Chief Operating Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sabanes-Oxley Act
of 2002 (filed herewith).

---

|(1) | Incorporated by reference to Exhibit 3.1 to the Companys Quarterly Report on Form 10-QSB filed with the Securities and Exchange Commission on August 16, 2004.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Incorporated by reference to Exhibit 3.2 to the Companys Quarterly Report on Form 10-QSB filed with the Securities and Exchange Commission on August 16, 2004.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------



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##### Table of Contents

Signature



In accordance with the
requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.



|                   |  |                                                  
|------------------ |  | -------------------------------------------------
|                   |  | TRANSCOMMUNITY FINANCIAL CORPORATION             
|                   |  | (Registrant)                                     
|                   | 
|Date: May 16, 2005 |  | /s/ WILLIAM C. WILEY                             
|                   |  | William C. Wiley                                 
|                   |  | Chairman of the Board and Chief Executive Officer
|                   | 
|Date: May 16, 2005 |  | /s/ BRUCE B. NOLTE                               
|                   |  | Bruce B. Nolte                                   
|                   |  | President and Chief Operating Officer            
|                   | 
|Date: May 16, 2005 |  | /s/ THOMAS M. CROWDER                            
|                   |  | Thomas M. Crowder                                
|                   |  | Chief Financial Officer                          



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