<PAGE>   1
                     SECURITIES AND EXCHANGE COMMISSION
                           WASHINGTON,  DC  20549

                                  FORM 10-QSB

              QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                   OF THE SECURITIES EXCHANGE ACT OF 1934



For Quarterly Period Ended                               Commission File Number
  September 30, 1996                                                   33-97778


                     CAROLINA COMMUNITY BANCSHARES, INC.
-------------------------------------------------------------------------------
      (Exact name of small business issuer as specified in its charter)



            SOUTH CAROLINA                            57-1024331
-------------------------------------------------------------------------------
    (State or other jurisdiction of        (I.R.S. Employer Identification No.)
     incorporation or organization)


           100 EAST LEITNER STREET,  LATTA,  SOUTH CAROLINA  29565
           ------------------------------------------------------
                  (Address of Principle Executive Offices)

                               (803) 752-7139
               -----------------------------------------------
              (Issuer's Telephone Number, Including Area Code)

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


     Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the issuer was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days.
                             YES  X             NO
                                 ----               ----

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



Common Stock, $1.00 Par Value                       416,110
-----------------------------           ----------------------------------
           Class                        Outstanding as of November 1, 1996


Transitional Small Business Disclosure Format (check one):

                YES                     NO  X
                    ----                   ----



<PAGE>   2


                       PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

                     CAROLINA COMMUNITY BANCSHARES, INC.
                            LATTA, SOUTH CAROLINA
                         CONSOLIDATED BALANCE SHEETS


<TABLE>
<CAPTION>                                                                    
                                                      September 30        December 31  
                                                          1996                1995     
ASSETS                                                (UNAUDITED)          (AUDITED)   
                                                      -----------         -----------   
<S>                                                   <C>                 <C>          
Cash and due from banks                               $ 1,662,106         $ 1,095,219  
Investment securities:                                                                 
 Securities available-for-sale, at market value         4,650,635           6,807,740  
 Securities held-to-maturity, at market value             768,403           1,005,475  
Federal funds sold                                      2,825,000                      
Loans, net                                             17,746,779          10,381,406  
Property and equipment, net                               526,042             171,360  
Goodwill                                                1,386,108           1,459,924  
Other assets                                              304,891             258,219  
                                                      -----------         ----------- 
            Total assets                              $29,869,964         $21,179,343  
                                                      ===========         ===========  
LIABILITIES and SHAREHOLDERS' EQUITY                                                   
Deposits:                                                                              
 Non-interest bearing deposits                        $ 4,184,611         $ 3,501,360  
 Interest bearing deposits                             21,327,731          12,834,924
                                                      -----------         -----------
   Total deposits                                     $25,512,343         $16,336,284
                                                      -----------         -----------
Accounts payable                                      $   162,448         $   154,152  
Federal funds purchased                                                       650,000  
Note payable                                                                1,100,000
                                                      -----------         -----------
   Total payables                                     $   162,448         $ 1,904,152
                                                      -----------         -----------
   Total liabilities                                  $25,674,791         $18,240,436  
                                                      -----------         -----------
Shareholders' Equity:                                                                  
 Common stock, $1.00 par value, 10,000,000 shares                                      
 authorized, 416,110 and 300,957 shares issued and                                     
 outstanding as of 9/30/96 and 12/31/95,                                               
 respectively                                         $   416,110         $   300,957  
Paid-in-capital                                         3,714,731           2,678,353  
Retained earnings (deficit)                                90,129             (20,089) 
Unrealized gain (loss)                                                                 
 Securities available-for-sale                            (25,796)            (20,314)
                                                      -----------         -----------
  Total shareholders' equity                          $ 4,195,174         $ 2,938,907
                                                      -----------         -----------
 Total liabilities and shareholder's equity           $29,869,964         $21,179,343  
                                                      ===========         ===========  
</TABLE>                                                                     


           Refer to notes to the consolidated financial statements.


<PAGE>   3


                     CAROLINA COMMUNITY BANCSHARES, INC.
                            LATTA, SOUTH CAROLINA
                        CONSOLIDATED INCOME STATEMENT
                                 (UNAUDITED)


<TABLE>
<CAPTION>                                                                                     
                                              For the                   For the Nine       From Inception       
                                         Three Months Ended             Months Ended            Thru            
                                    September 30,      September 30,    September 30,      September 30,        
                                        1996               1995              1996                1995            
                                        ----               ----              ----                ----            
<S>                                 <C>            <C>                  <C>                <C>                  
Interest income                         $527,223       $    467            $1,372,669           $    467        
Interest expense                         210,592                              562,503                           
                                        --------       --------            ----------           -------- 
Net interest income                     $316,631                           $  810,166           $    467        
Provision for possible loan losses        28,000                               74,000           $    467        
Net interest income after                                                                                       
provision for possible loan                     
losses                                  $288,631                           $  736,166           $    467 
                                        --------       --------            ----------           -------- 
Other income                                                                                                    
 Service charges                        $ 64,611                           $  171,492                           
 Miscellaneous income                     14,267                               42,725                           
                                        --------       --------            ----------           -------- 
 Total other income                     $ 78,878                           $  214,217                     
                                        --------       --------            ----------           -------- 
Salaries and benefits                   $148,390       $ 11,297            $  443,243           $ 45,427        
Depreciation                               8,429                               43,542                           
Amortization                              26,368                               78,808                           
Data processing                            3,010                                6,033                           
Regulatory fees and assessments             (389)                               6,757                           
Other operating expenses                  74,141                              176,970
                                        --------       --------            ----------           -------- 
 Total operating expenses               $259,949         11,297            $  755,353           $ 45,427 
                                        --------       --------            ----------           -------- 
Net income before taxes                 $107,560       ($11,297)           $  195,031           ($44,960)       
Income taxes                              44,784                               84,812                           
                                        --------       --------            ----------           -------- 
Net income (loss)                       $ 62,776       ($11,297)           $  110,219           ($44,960)       
                                        ========       ========            ==========           ========        
Income per share                        $  0.151                           $    0.265                           
                                        ========       =========           ==========           ========       
</TABLE>                                                                    


           Refer to notes to the consolidated financial statements.


<PAGE>   4


                     CAROLINA COMMUNITY BANCSHARES, INC.
                            LATTA, SOUTH CAROLINA
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (UNAUDITED)



<TABLE>
<CAPTION>                                                                   
                                                   For the                   
                                                  Nine Months        From Inception  
                                                    Ended                Thru  
                                                September 30,         September 30,  
                                                    1996                  1995   
                                                  --------              --------
<S>                                             <C>                  <C>                
Cash flows from operating activities             $   264,651             ($103,617)  
Cash flows from investing activities                                                 
     Purchase of securities                         (250,000)                        
     Maturity and paydowns                         2,644,176                         
     (Increase) in loans                          (7,439,373)                        
     Purchase of property and equipment             (405,157)                5,000   
                                                  ----------             --------- 
     Net cash used in investing activities       ($5,450,354)            $   5,000   
                                                  ----------             --------- 
Cash flows from financing activities:                                                

     Issuance of common stock, net               $ 1,151,531             $   1,000   
     Note payable                                 (1,100,000)              115,000   
     Purchase (sale) of federal funds               (650,000)                        
     Increase in deposits                          9,176,059                         

Cash (used by) financing activities              $ 8,577,590             $ 116,000   
                                                 -----------             --------- 
Net increase in cash and cash equivalents          3,391,887                17,383   
Cash and cash equivalents, beginning of period     1,095,219                         
                                                 -----------             --------- 
Cash and cash equivalents, end of period         $ 4,487,106             $  17,383   
                                                 ===========             =========   
</TABLE>                                                                    





<PAGE>   5


                     CAROLINA COMMUNITY BANCSHARES, INC.
                            Latta, South Carolina
            Notes to Consolidated Financial Statements (Unaudited)
                              September 30, 1996


Note 1 - Summary of Organization

     Carolina Community Bancshares, Inc., Latta, South Carolina (the "Company")
was incorporated under the laws of the State of South Carolina on May 26, 1995,
for the purpose of operating as a bank holding company pursuant to the Bank
Holding Company Act of 1956, as amended.  A group of organizers initiated
several financial transactions on behalf of the Company prior to the date of
incorporation and as early as March 27, 1995, the date of inception.

     Pursuant to a Stock Purchase Agreement entered into with SouthTrust
Corporation, Birmingham, Alabama ("SouthTrust"), the Company consummated the
purchase of SouthTrust Bank of Dillon County on November 1, 1995.  Immediately
thereafter, the acquired bank was renamed Carolina Community Bank, N.A. (the
"Bank").

Note 2 - Summary of Significant Accounting Policies

     Basis of Presentation and Reclassification.  The consolidated financial
statements include the accounts of the Company and the Bank.  All significant
intercompany accounts and transactions have been eliminated in consolidation.
Because the acquisition of the Bank was not consummated until November 1, 1995,
however, the financial statements for the three month period ended September
30, 1995 and the period from inception through September 30, 1995 have not been
consolidated.  The financial data for such periods primarily represents
expenses incurred in organizing the Company.

     Basis of Accounting.  The accounting and reporting policies of the Company
conform to generally accepted accounting principles for interim financial
information, the instructions for Form 10-QSB and to general practices in the
banking industry. Accordingly they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statement presentation.  The Company uses the accrual basis of
accounting by recognizing revenues when earned and expenses when incurred,
without regarding the time of receipt or payment of cash.

     Investment Securities.  The Company adopted Statement of Financial
Accounting Standards No. 115, "Accounting for Certain Investment in Debt and
Equity Securities" ("SFAS 115").  SFAS 115 requires investments in equity and
debt securities to be classified into three categories:

        1.   Held-to-maturity securities:  These are securities which
             the Company has the ability and intent to hold until maturity.
             These securities are stated at cost, adjusted for amortization of
             premiums and the accretion of discounts.

        2.   Trading securities:  These are securities which are
             bought and held principally for the purpose of selling in the near
             future.  Trading securities are reported at fair market value, and
             related unrealized gains and losses are recognized in the income
             statement.

        3.   Available-for-sale securities:  These are securities
             which are not classified as either  or as trading securities.
             These securities are reported at fair market value.

                                      4
<PAGE>   6

             Unrealized gains and losses are reported, net of tax, as separate
             components of shareholders' equity.  Unrealized gains and losses
             are excluded from the income statement.

     Loans, Interest and Fee Income on Loans.  Loans are stated at the
principal balance outstanding.   Unearned discount, unamortized loan fees and
the allowance for possible loan losses are deducted from total loans in the
statement of condition.  Interest income is recognized over the term of the
loan based on the principal amount outstanding.  Points on real estate loans
are taken into income to the extent they represent the direct cost of
initiating a loan.  The amount in excess of direct costs is deferred and
amortized over the expected life of the loan.

     Loans are generally placed on non-accrual status when principal or
interest becomes ninety days past due, or when payment in full is not
anticipated.  When a loan is placed on non-accrual status, interest accrued but
not received is generally reversed against interest income.  If collectibility
is in doubt, cash receipts on non-accrual loans are not recorded as interest
income, but are used to reduce principal.

     Allowance for Possible Loan Losses.  The provisions for loan losses
charged to operating expense reflect the amount deemed appropriate by
management to establish an adequate reserve to meet the present and foreseeable
risk characteristics of the current loan portfolio.  Management's judgment is
based on periodic and regular evaluation of individual loans, the overall risk
characteristics of the various portfolio segments, past experience with losses
and prevailing and anticipated economic conditions.  Loans which are determined
to be uncollectible are charged against the allowance.  Provisions for loan
losses and recoveries on loans previously charged off are added to the
allowance.

     The Company adopted Statement of Financial Accounting Standards No. 114,
"Accounting by Creditors for Impairment of a Loan"("SFAS 114").  Under the new
standard, a loan is considered impaired, based on current information and
events, if it is probable that the company will be unable to collect the
scheduled payments of principal or interest when due according to the
contractual terms of the loan agreement.  The measurement of impaired loans is
generally based on the present value of expected future cash flows discounted
at the historical effective interest rate, except that all collateral-dependent
loans are measured for impairment based on the fair value of the collateral.

     In October 1994, FASB issued Statement of Financial Accounting Standards
No. 118, "Accounting by Creditors for Impairment of a Loan - Income Recognition
and Disclosure"("SFAS 118").  SFAS 118 amends SFAS 114 to allow a creditor to
use existing methods for recognizing interest income on an impaired loan,
rather than the methods prescribed in SFAS 114.

     Property and Equipment.  Building, furniture and equipment are stated at
cost, net of accumulated depreciation.  Depreciation is computed using the
straight line method over the estimated useful lives of the related assets.
Maintenance and repairs are charged to operations, while major improvements are
capitalized.  Upon retirement, sale or other disposition of property and
equipment, the cost and accumulated depreciation are eliminated from the
accounts, and gain or loss is included in income from operations.

     Income Taxes.  The Company adopted Statement of Financial Accounting
Standards No. 109, "Accounting for Income Taxes" ("SFAS 109").  Under SFAS 109,
deferred tax assets and liabilities are recognized for the expected future tax
consequences of the events that have been recognized in the financial
statements or tax return.  Deferred tax assets and liabilities are measured
using the enacted tax rates expected to apply to taxable income in the years in
which those temporary differences are expected to be realized or settled. 

                                      5
<PAGE>   7

                     

     Statement of Cash Flows.   For purposes of reporting cash flows, cash and
cash equivalents include cash on hand, amounts due from banks and federal funds
sold.  Generally, federal funds are purchased or sold for one day periods.

     Net Income Per Share.  Net income per share was computed by dividing the
net income by the average number of shares outstanding for the three month and
nine month periods ended September 30, 1996 (416,110 shares).  Income per share
of $.265 for the nine month period ended September 30, 1996 and $.151 for the
three month period ended September 30, 1996 may not be indicative of projected
earnings/losses for the year ending December  31, 1996.

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

     The Company was incorporated in South Carolina on May 26, 1995 to become a
bank holding company and to own and control all of the outstanding shares of an
existing bank, SouthTrust Bank of Dillon County, Latta, South Carolina.

     Pursuant to a Stock Purchase Agreement entered into with SouthTrust
Corporation, Birmingham, Alabama, the Company consummated the purchase of
SouthTrust Bank of Dillon County on November 1, 1995.  Immediately thereafter,
the acquired bank was renamed Carolina Community Bank, N.A. (the "Bank").  To
fund the purchase price of $4.0 million, the Company (i) sold, through a
Private Placement Memorandum, 300,957 shares of its common stock for $2,979,310
(net of $30,260 in selling expenses) and (ii) borrowed $1.1 million from an
unrelated financial institution.

     The Company filed a Registration Statement on Form SB-2 with the
Securities and Exchange Commission to sell a maximum of 250,000 shares of its
common stock through a public offering at $10 per share.  On September 13,
1996, the Company terminated the public offering after having sold an aggregate
of 116,110 shares of common stock.  The Company received net proceeds of
$1,161,100 in connection with the public offering, which proceeds were used for
working capital and to repay the $1.1 million loan obtained to fund the
purchase of the Bank.

Liquidity and Sources of Capital

     Liquidity is the Company's ability to meet all deposit withdrawals
immediately, while also providing for the credit needs of customers.  The
September 30, 1996 financial statements evidence a satisfactory liquidity
position as total cash, cash equivalents, and federal funds amounted to $4.487
million, representing 15.0% of total assets.  Investment securities amounted to
$5.4 million, representing 18.1% of total assets. Investment securities provide
a secondary source of liquidity since they can be converted into cash in a
timely manner.  In addition, the Company's ability to maintain and expand its
deposit base and borrowing capabilities are a source of liquidity.  For the
nine month period ended September 30, 1996, total deposits increased from $16.3
million at December 31, 1995 to $25.5 million, representing an annualized
increase of 75.3%. The Company, however, does not expect to maintain or
duplicate this growth rate. The Company's management closely monitors and
maintains appropriate levels of interest earning assets and  interest bearing
liabilities so that maturities of assets are such that adequate funds are
provided to meet customer withdrawals and loan demand.  There are no trends,
demand, commitments, events or uncertainties that will result in or are
reasonably likely to result in the Company's liquidity increasing or decreasing
in any material way. 


                                      6
<PAGE>   8


     The Bank maintains an adequate level of capitalization as measured by the
following capital ratios and the respective minimum capital requirements by the
Bank's primary regulator, the Office of the Comptroller of the Currency (the
"OCC").


                                                        Minimum required    
                                September 30, 1996          by OCC          
                                ------------------      ----------------
                                                                            
           Leverage ratio              9.29%                   4.0%         
           Risk weighted ratio        16.05%                   8.0%         


     Note that with respect to the leverage ratio, the OCC requires a minimum
of 5.0% to 6.0% ratio for banks that are not rated CAMEL 1.  Although the Bank
is not rated CAMEL 1, its leverage ratio of 9.29% is well above the required
minimum.

Financial Condition and Results of Operations

     Because the acquisition of the Bank and principle banking operations were
not consummated until November 1, 1995, the Company's financial statement for
the periods ended September 30, 1995 are not consolidated and consequently, a
comparison of the September 30, 1995 results is not meaningful.  This
discussion will therefore concentrate on the September 30, 1996 results.

     Net income for the three month and nine month periods ended September 30,
1996 amounted to $62,776 and $110,219, or $.151 and $.265 per share
respectively.  The following is a brief discussion of the more significant
components of net income:

     a. Net interest income represents the difference between interest received
on interest earning assets and interest paid on interest bearing liabilities.
The following presents, in a tabular form, the main  components of interest
earning assets and interest bearing liabilities for the nine month period ended
September 30, 1996.


<TABLE>
<CAPTION>
                                                                             
Interest Earning Assets/     Average             Interest/Income          Yield/
Bearing Liabilities          Balance                  Cost                 Cost
-------------------         --------                  ----                 ----
<S>                          <C>                 <C>                      <C>         
Federal funds sold           $   845,573              $   30,944           4.88%
Securities                     5,510,692                 284,993           6.90%
Loans                         13,998,955               1,056,733          10.06%
                             -----------              ----------          ----- 
Total                        $20,355,220              $1,372,670           8.99%
                             -----------              ----------          ----- 
Deposits                     $19,293,835              $  528,520           3.65%
Federal funds purchased          252,190                  14,648           7.74%
                             -----------              ----------          ----- 
Total                        $19,546,025              $  543,168           3.71%
                             -----------              ----------          ----- 
Net Interest Income                                   $  829,502         
                                                      ==========             
Net Yield on Earning Assets                                                5.43%
                                                                          =====
</TABLE>


                                      7
<PAGE>   9


The following presents, in a tabular form, the main components of interest
earning assets and interest bearing liabilities for the three month period
ended  September 30, 1996.


<TABLE>
<CAPTION>
                                                                                
Interest Earning Assets/     Average             Interest/Income          Yield/
Bearing Liabilities          Balance                   Cost                Cost
------------------           -------                   ----                ----
<S>                          <C>                 <C>                      <C>   
Federal funds sold          $ 1,606,000            $ 20,220                5.04%
Securities                    5,697,000              87,399                6.14%
Loans                        18,030,000             418,605                9.29%
                            -----------            --------                ---- 
Total                       $25,333,000            $526,224                8.31%
                            -----------            --------                ---- 
Deposits                    $24,153,000            $207,816                3.44%
Federal funds purchased         294,000               3,867                5.26%
                            -----------            --------                ---- 
Total                       $24,447,000            $211,683                3.46%
                            -----------            --------                ---- 
Net interest income                                $314,541              
                                                   ========
Net yield on earning assets                                                4.97%
                                                                           ====
</TABLE>

     b. Other income for the three month and the nine month periods ended
September 30, 1996  amounted to $78,878 and $214,217, respectively. On an
annualized basis, this represents 1.0% and 0.9% of total assets for the three
month and nine month periods, respectively.

     c. Operating expenses for the three-month period and the nine month
periods ended September 30, 1996 amounted to $259,949 and $755,353,
respectively. On an annualized basis, this represents 3.5% of total assets for
the for the three-month period and 3.4% for the nine month periods ended
September 30, 1996.

     At December 31, 1995, the allowance for loan losses amounted to $157,420.
By September 30, 1996, the allowance had grown to $225,686.  Despite the
increase, however, the allowance for loan losses, as a percentage of gross
loans, declined from 1.49% at December 31, 1995 to 1.25% during the three month
and nine month periods ended September 30, 1996.  Management considers the
allowance for loan losses to be adequate and sufficient to absorb possible
future losses; however, there can be no assurance that charge-offs in future
periods will not exceed the allowance for loan losses or that additional
provisions to the allowance will not be required.

     The Company is not aware of any current recommendation by the regulatory
authorities which, if they were to be implemented, would have a material effect
on the Company's liquidity, capital resources, or results of operations.


                                      8
<PAGE>   10



                         PART II.  OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K

         (a) The following exhibit is filed with this report:


                      Exhibit No.  DESCRIPTION OF EXHIBIT

                        27         Financial Data Schedule


     (b) The following reports on Form 8-K were filed during the quarter ended
September 30, 1996:

           (i)  Current Report on Form 8-K dated July 24, 1996,
                relating to the Company's change in accountants.

           (ii) Amendment No. 1 on Form 8-K/A dated July 29, 1996
                to its Current Report on Form 8-K dated July 24, 1996.



                                      9
<PAGE>   11


                                  SIGNATURES


     Pursuant to 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.

                                CAROLINA COMMUNITY BANCSHARES, INC.



Dated:  November 4, 1996        By:/s/ R. Walton Brown
                                   ----------------------------------------
                                R. Walton Brown
                                President and Chief Executive Officer
                                (Principle Executive, Financial
                                and Accounting Officer)