UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

          (Mark one)
              [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1997

                                       OR

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

                    For the transition period from         to

                      Commission file number           018261

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

               VIRGINIA                             54-1532044
     (State of other jurisdiction of            (I.R.S. Employer
      incorporation or organization)            Identification No.)

                   38 North Central Ave., Staunton, Va. 24401
                (Address of principal executive offices zip code)

                                 (540) 886-0796
                (Issuer's telephone number, including area code)


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

Number of shares of Common Stock, par value per share, $.01,  outstanding at the
close of business on October 31, 1997: 1,277,123.

Transitional Small Business Disclosure Format (Check one)

                Yes                  No  X


<PAGE>

                         COMMUNITY FINANCIAL CORPORATION


                                      INDEX



PART I.  FINANCIAL INFORMATION                                        PAGE

Item 1.  Financial Statements

         Consolidated Statements of Financial
         Condition at September 30, 1997 (unaudited)
         and March 31, 1997.............................................1

         Consolidated Statements of Income for the Three and
         Six Months Ended September 30, 1997 and 1996 (unaudited).......2

         Consolidated Statements of Cash Flows for the
         Six Months Ended September 30, 1997 and 1996 (unaudited).......3

         Notes to Unaudited Interim Consolidated
         Financial Statements...........................................4

Item 2.  Management's Discussion and Analysis of Financial
         Condition and Results of Operations............................7


PART II. OTHER INFORMATION   -   II-1..................................10

         Signature Page................................................11

         Exhibit Index.................................................12


<PAGE>

                                     PART I
                         COMMUNITY FINANCIAL CORPORATION
                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION


                                                   September 30,     March 31,
                                                       1997            1997
                                                   ------------    -------------
                                                   (Unaudited)
ASSETS
Cash (including interest bearing
  deposits of approximately
  $1,556,000 and $1,015,000) .................     $  6,104,678     $  4,922,213
Securities
  Held to maturity ...........................        6,607,199        5,197,437
  Available for sale .........................        2,901,780        2,243,220
Investment in Federal Home Loan
  Bank stock, at cost ........................        1,600,000        1,400,000
Loans receivable, net ........................      160,837,701      148,905,485
Real estate owned ............................          191,123          173,245
Property and equipment, net ..................        3,550,415        3,542,108
  Accrued interest receivable
  Loans ......................................          968,934          851,365
  Investments ................................          157,078          138,073
Prepaid expenses and other assets ............          359,566          334,036

                                                   $183,278,474     $167,707,182

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities
Deposits .....................................     $128,238,136     $116,594,885
Advances from Federal Home Loan
  Bank .......................................       29,000,000       26,000,000
Advance payments by borrowers for
  taxes and insurance ........................          140,495          135,561
Other liabilities ............................        1,686,762        1,639,740

        Total Liabilities ....................      159,065,393      144,370,186

Stockholders' Equity
  Preferred stock $.01 par value,
    authorized 3,000,000 shares,
    none outstanding
  Common stock, $.01 par value,
    authorized 10,000,000 shares,
    1,275,373 and 1,275,348 shares
    outstanding ..............................           12,754           12,753
  Additional paid in capital .................        4,717,177        4,716,677
  Retained earnings ..........................       17,734,022       17,266,745
  Net unrealized gain on securities
    available for sale .......................        1,749,128        1,340,821
     Total Stockholders' Equity ..............       24,213,081       23,336,996

                                                   $183,278,474     $167,707,182


          See accompanying notes to consolidated financial statements.

                                       1


<PAGE>


                         COMMUNITY FINANCIAL CORPORATION
                        CONSOLIDATED STATEMENTS OF INCOME


                              Three Months Ended       Six Months Ended
                                 September 30,           September 30,
                              ------------------       -----------------
                                1997        1996        1997        1996
                                ----        ----        ----        ----
                                  (Unaudited)             (Unaudited)
INTEREST INCOME
  Loans ...................  $3,341,335  $3,005,534  $6,552,877  $5,990,408
  Investment securities ...     138,383     119,681     260,302     246,519
  Other ...................      30,650      25,474      60,473      57,690
    Total interest income .   3,510,368   3,150,689   6,873,652   6,294,617

INTEREST EXPENSE
  Deposits ................   1,467,783   1,251,220   2,778,580   2,494,925
  Borrowed money ..........     406,634     349,117     824,994     738,314
    Total interest expense    1,874,417   1,600,337   3,603,574   3,233,239

NET INTEREST INCOME .......   1,635,951   1,550,352   3,270,078   3,061,378

PROVISION FOR LOAN LOSSES .     367,630      69,647     392,630     102,638

NET INTEREST INCOME AFTER
 PROVISION FOR LOAN LOSSES    1,268,321   1,480,705   2,877,448   2,958,740

NONINTEREST INCOME
  Service charges, fees
    and commissions .......     173,283     128,668     332,208     244,571
  Miscellaneous ...........       1,000       1,126      10,786       2,732
    Total noninterest
      income ..............     174,283     129,794     342,994     247,303

NONINTEREST EXPENSE
  Compensation & benefits .     442,480     298,884     866,697     584,615
  Occupancy ...............     111,550      98,921     226,352     198,243
  Data processing .........     105,797      80,719     207,651     174,775
  Federal insurance premium      18,017     732,469      36,287     794,100
  Miscellaneous ...........     240,899     251,459     567,780     426,542
    Total noninterest
      expense .............     918,743   1,462,452   1,904,767   2,178,275

INCOME BEFORE TAXES .......     523,861     148,047   1,315,675   1,027,768

INCOME TAXES ..............     194,657      53,548     491,298     383,482

NET INCOME ................  $  329,204   $  94,499   $ 824,377   $ 644,286

EARNINGS PER SHARE ........  $     0.26   $    0.08   $    0.65   $    0.51
DIVIDENDS PER SHARE .......  $     0.14   $    0.13   $    0.28   $    0.26


          See accompanying notes to consolidated financial statements.


                                        2

<PAGE>



                  COMMUNITY FINANCIAL CORPORATION
                CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                           Six Months Ended
                                                             September 30,
                                                   -----------------------------
                                                         1997            1996
                                                         ----            ----
                                                             (Unaudited)

OPERATING ACTIVITIES
  Net income ...................................   $    824,377    $    644,286
  Adjustments to reconcile net income to
   net cash provided by operating activities
     Provision for loan losses .................        392,630         102,638
     Depreciation ..............................        112,728         110,838
     Amortization of premium and accretion
       of discount on securities, net ..........            387          (3,624)
    (Decrease) in net deferred loan fees .......        (59,255)        (33,542)
     Increase in deferred income taxes .........         11,690          28,596
     Decrease (increase) in other assets .......       (179,982)       (155,988)
     Increase (decrease) in other liabilities ..        (98,435)        616,505
     (Gain)loss on sale of loans ...............          7,174          (6,391)
     Proceeds from sale of loans ...............      1,318,800         338,000
     Loans originated for resale ...............     (1,764,800)       (371,000)
   Net cash provided by operating activities ...        565,314       1,270,318

INVESTING ACTIVITIES
  Proceeds from maturities of held for
    investment securities ......................        750,000         750,000
  Purchases of investment securities ...........     (2,149,375)       (498,281)
  Net decrease (increase) in loans .............    (11,940,842)     (1,288,295)
  Purchases of property and equipment ..........       (129,282)        (19,502)
  Redemption (purchase) of FHLB stock ..........       (200,000)            -0-
    Net cash provided (absorbed) by
      investing activities .....................    (13,669,499)     (1,056,078)

FINANCING ACTIVITIES
  Dividends paid ...............................       (357,101)       (330,622)
  Net increase (decrease) in deposits ..........     11,643,251         873,936
  Proceeds from advances and other
   borrowed money ..............................     48,000,000      31,000,000
  Repayments of advances and other
   borrowed money ..............................    (45,000,000)    (32,000,000)
  Proceeds from issuance of common stock .......            500           9,400
Net cash provided (absorbed) by
  financing activities .........................     14,286,650        (447,286)

INCREASE (DECREASE) IN CASH AND CASH
  EQUIVALENTS ..................................      1,182,465        (233,046)

CASH AND CASH EQUIVALENT-beginning of period ...      4,922,213       3,673,085
CASH AND CASH EQUIVALENTS-end of period ........   $  6,104,678    $  3,440,039


          See accompanying notes to consolidated financial statements.


                                        3

<PAGE>


                         COMMUNITY FINANCIAL CORPORATION
          NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 1997

NOTE 1. - BASIS OF PRESENTATION

The accompanying  unaudited interim consolidated  financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-QSB and Rule 10-01 of
Regulation  S-X.  Accordingly,  they do not include all of the  information  and
footnotes  required by generally  accepted  accounting  principles  for complete
financial statements.

The  accompanying  consolidated  financial  statements  include the  accounts of
Community Financial Corporation(the  "Company") and its wholly-owned subsidiary,
Community   Bank(the  "Bank").   All  significant   intercompany   balances  and
transactions have been eliminated in consolidation.

In the opinion of management,  all adjustments  (consisting of normal  recurring
accruals)  considered  necessary  for  fair  presentation  have  been  included.
Operating results for the three and six months ended September 30, 1997, are not
necessarily  indicative  of the results that may be expected for the year ending
March 31, 1998.

NOTE 2. - EARNINGS PER SHARE

Earnings per share is computed based on the weighed  average number of shares of
common stock  outstanding  during each period  including the assumed exercise of
dilutive stock options,  and is  retroactively  adjusted for stock dividends and
stock splits.  Earnings per share for the three months ended  September 30, 1997
and 1996 have been  determined  by dividing net income by the  weighted  average
number of shares of common stock outstanding during these periods (1,275,373 and
1,272,048, respectively).  Earnings per share for the six months ended September
30, 1997 and 1996 have been  determined  by dividing  net income by the weighted
average  number of  shares of common  stock  outstanding  during  these  periods
(1,275,364 and 1,271,404, respectively).

NOTE 3. - REGULATORY CAPITAL AND DIVIDENDS DISCUSSION

The following  table  presents the Bank's  capital levels at September 30, 1997,
relative to the Office of Thrift Supervision (the "OTS")requirements  applicable
at that date:


                       Amount     Percent      Actual      Actual      Excess
                      Required   Required      Amount      Percent     Amount
                    ----------   ---------    ---------    -------   -----------
Tangible Capital   $ 2,730,000     1.50%     $20,638,000    11.34%   $17,908,000
Core Capital         5,460,000     3.00       20,638,000    11.34     15,178,000
Risk-based Capital  10,047,000     8.00       21,633,000    17.23     11,586,000


                                        4

<PAGE>


NOTE 3. - REGULATORY CAPITAL AND DIVIDEND DISCUSSION (cont.)

Capital  distributions by the Bank are limited by federal regulations  ("Capital
Distribution  Regulation").  Capital  distributions  are defined to include,  in
part,   dividends,   stock  repurchases  and  cash-out   mergers.   The  Capital
Distribution   Regulation  permits  a  "Tier  1"  association  to  make  capital
distributions  during a calendar  year up to 100% of its net income to date plus
the amount  that would  reduce by  one-half  its  surplus  capital  ratio at the
beginning  of the  calendar  year.  Any  distributions  in excess of that amount
require  prior  notice  to the  Office of Thrift  Supervision  ("OTS")  with the
opportunity  for OTS to  object to the  distribution.  A Tier 1  association  is
defined as an  association  that has, on a pro forma  basis  after the  proposed
distribution,  capital equal to or greater than the OTS fully phased-in  capital
requirement  and has not  been  deemed  by the OTS to be "in  need of more  than
normal  supervision".  The Bank is currently  classified as a Tier 1 institution
for  these  purposes.   The  Capital   Distribution   Regulation  requires  that
associations  provide the applicable OTS District Director with a 30-day advance
written  notice of all  proposed  capital  distributions  whether or not advance
approval is required by the regulation.


NOTE 4. - SUPPLEMENTAL INFORMATION - STATEMENT OF CASH FLOWS

Total  interest paid for the three months ended  September 30, 1997 and 1996 was
$1,933,092 and $1,564,454,  respectively. Total interest paid for the six months
ended  September 30, 1997 and 1996 was $3,656,985 and  $3,097,528.  Total income
taxes paid for the three months ended  September  30, 1997 and 1996 was $566,392
and  $548,660.  Total income taxes paid for the six months ended  September  30,
1997 and 1996 was $669,392 and $548,660.


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

FINANCIAL CONDITION

The  Company's  total  assets  increased  $15.5  million  to $183.3  million  at
September 30, 1997, due primarily to a increase in loans of $11.9  million.  The
increase in loans  receivable  was due primarily to the  origination of variable
rate mortgage  loans and consumer  loans.  Deposits  increased  $11.6 million to
$128.2  million at  September  30, 1997,  from $116.6  million at March 31, l997
while  Federal  Home Loan Bank  advances  increased  during the same period from
$26.0 million to $29.0  million.  The increase in deposits and advances was used
primarily to fund the increase in loans. Stockholders' equity increased to $24.2
million at  September  30,  1997,  from $23.3  million  at March 31,  1997,  due
primarily to earnings for the six month period ended  September  30, 1997 and an
adjustment in the market value of Federal Home Loan Mortgage  Corporation stock,
which was partially offset by two payments of $0.14 per share in cash dividends.

At September 30, 1997, the Bank's non-performing assets totalled $1.0 million or
0.56% of assets  compared to $676,000  or .40% of assets at March 31,  1997.  At
September 30, 1997 the Company's  non-performing  assets were comprised of eight
residential  rental  properties  which were more than  ninety  days past due and
various  consumer loans which includes loans in the amount of $220,000 which are
current as to interest but are  considered  delinquent  due to a lack of current
loan agreements. Also included in non-performing assets is

                                        5


<PAGE>


approximately  $191,000 of one-to-four  residential rental properties which were
acquired by  foreclosure  and  various  repossessed  vehicles.  Based on current
market values of the collateral securing these loans,  management anticipates no
significant losses in excess of the reserves for losses previously recorded.  At
September 30, 1997 the Company's  allowance for loan losses totalled  $1,079,314
or .67% of net loans receivable and 106% of  non-performing  loans,  compared to
$1,039,013 or .70% of net loans  receivable and 154% of non- performing loans at
March 31, 1997.  See "Results of Operations  -Three  Months Ended  September 30,
1997 and 1996 - Provision for Loan Losses."

Management establishes an allowance for loan losses based on an analysis of risk
factors  in the  loan  portfolio.  This  analysis  includes  the  evaluation  of
concentrations  of credit,  past loss experience,  current economic  conditions,
amount and composition of the loan portfolio, estimated fair value of underlying
collateral,  loan  commitments  outstanding,  delinquencies,  and other factors.
Since  the  Company  has had  extremely  low loan  losses  during  its  history,
management  also considers loss  experience of similar  portfolios in comparable
lending markets.  Accordingly,  the calculation of the adequacy of the allowance
for loan losses was not based directly on the level of non- performing assets.

Management  will continue to monitor the  allowance for loan losses  through the
provision for loan losses as economic conditions  dictate.  Although the Company
maintains  its  allowance  for loan losses at a level which it  considers  to be
adequate to provide for losses,  there can be no  assurance  that future  losses
will not exceed estimated amounts or that additional  provisions for loan losses
will not be required in future periods. In addition,  management's determination
as to the amount of the  allowance  for loan  losses is subject to review by the
OTS and the Federal Deposit  Insurance  Corporation as part of their examination
process,  which may result in the establishment of an additional allowance based
upon their judgement of the  information  available to them at the time of their
examination.

LIQUIDITY AND CAPITAL RESOURCES

Historically,  the Bank has  maintained  its  liquid  assets  above the  minimum
requirements  imposed by federal regulations and at a level believed adequate to
meet  requirements  of normal daily  activities,  repayment of maturing debt and
potential  deposit  outflows.  Cash flow projections are regularly  reviewed and
updated to assure that adequate liquidity is provided. As of September 30, 1997,
the Bank's  liquidity  ratio (liquid assets as a percentage of net  withdrawable
savings  and  current  borrowings)  was  8.03%,  which  exceeds  the  regulatory
requirement.

The Bank is subject to certain capital to asset  requirements in accordance with
Bank regulations.  See Note 3 of the Notes to Consolidated  Financial Statements
contained in this report.


                                        6

<PAGE>


RESULTS OF OPERATIONS

Three Months Ended September 30, 1997 and 1996.
-----------------------------------------------

General.  Net income for the three months ended  September 30, 1997 was $329,204
compared to $94,499 for the three months ended  September 30, 1996. The increase
was due primarily to a one-time special assessment of $416,000, net of taxes, to
recapitalize the Savings  Association  Insurance Fund (the "SAIF") in September,
1996,  offset in part by an increase in provision  for loan losses.  Net Income,
without the SAIF assessment,  for the three months ended September 30, 1996, was
$510,499.  On a SAIF adjusted  basis,  income before taxes increased to $523,861
for the three months ended  September 30, 1997 from $94,499 for the three months
ended September 30, 1996.

Interest  Income.  Total interest income increased to $3.5 million for the three
months ended  September  30, 1997,  from $3.2 million for the three months ended
September 30, 1996, due to an increase in the balances of loans and  investments
for the three  months ended  September  30, 1997 as compared to the period ended
September  30, 1996.  The average  yield earned on  interest-earning  assets was
8.22% for the three months ended  September  30, 1997  compared to 8.25% for the
three months ended September 30, 1996.

Interest Expense. Total interest expense increased to $1.9 million for the three
months ended  September  30, 1997,  from $1.6 million for the three months ended
September 30, 1996. Interest on deposits increased to $1.5 million for the three
months  ended  September  30, 1997 from $1.3  million for the three months ended
September  30, 1996 due  primarily  to an  increase  in the average  outstanding
balance of deposits,  which was primarily certificates of deposit, for the three
months ended September 30, 1997. Interest expense on borrowed money increased to
$407,000 for the quarter ended September 30, 1997, from $349,000 for the quarter
ended September 30, 1996, due to an increase in average borrowings.  The average
rate paid on  interest-bearing  liabilities was 4.82% for the three months ended
September  30, 1997  compared to 4.79% to the three months ended  September  30,
1996.

Provision for Loan Losses.  The provision for loan losses  increased to $367,630
for the three months ended September 30, 1997, from $69,647 for the three months
ended  September  30,  1996.  The  increase  in  provision  for loan  losses  is
attributable  primarily to the growth in the loan portfolio and  charge-offs and
reserves on  one-to-four  family loans and foreclosed  property.  "See Financial
Condition."

Noninterest  Income.  Noninterest  income  increased  to $174,000  for the three
months  ended  September  30,  1997,  from  $130,000  for the three months ended
September 30, 1996 due primarily to both an increase in checking account charges
which is related to an increase in account volume and an increase in the sale of
fixed rate mortgage loans.

Noninterest  Expenses.  Noninterest  expense decreased to $919,000 for the three
months ended  September  30, 1997,  from  $1,463,000  for the three months ended
September  30,  1996.   The  decrease  in   noninterest   expense  is  primarily
attributable to the one-time SAIF assessment discussed above, offset in part, by
an  increase  in  compensation  and other  expenses  related to the opening of a
branch location on April 9, 1997 in Virginia Beach, Virginia.


                                        7

<PAGE>


Taxes.  Taxes  increased to $195,000 for the three  months ended  September  30,
1997,  from $54,000 for the three months ended  September  30, 1996,  due to the
increase in income before taxes.


Six Months Ended September 30, 1997 and 1996
--------------------------------------------

General.  Net income for the six months  ended  September  30, 1997 was $824,377
compared to $644,286  for the six months ended  September  30, l996 for the same
reasons discussed above, on a SAIF adjusted basis, net income for the six months
ended September 30, 1996 was $1,060,286.

Interest  Income.  Total interest  income  increased to $6.9 million for the six
months  ended  September  30,  1997,  from $6.3 million for the six months ended
September  30, 1996,  due  primarily to an increase in the balances of loans and
investments.

Interest  Expense.  Total interest expense increased to $3.6 million for the six
months  ended  September  30,  1997,  from $3.3 million for the six months ended
September 30, 1996.  Interest on deposits,  primarily  certificates  of deposit,
increased to $2.8 million for the six months ended September 30, 1997, from $2.5
million  for the same  period  last year due  primarily  to an  increase  in the
average  outstanding  deposit  balances.  Interest  expense  on  borrowed  money
increased to $824,994 for the six months ended  September 30, 1997 from $738,314
for the six  months  ended  September  30,  1996,  due  primarily  to  increased
borrowings from the Federal Home Loan Bank of Atlanta.

Provision for Loan Losses.  The provision for loan losses  increased to $392,630
for the six months ended  September 30, 1997,  from $102,638 for the same period
last year due  primarily to an increase in the loan  portfolio and in chargeoffs
on  one-to-four  family  loans.  See "Results of Operations - Three Months Ended
September 30, 1997 and 1996 - Provision for Loan Losses."

Noninterest Income.  Noninterest income increased to $342,994 for the six months
ended  September 30, 1997,  from $247,303 for the six months ended September 30,
1996, due to an increase in the fees and service charges on checking accounts as
the volume of accounts  increased and an increase in fixed rate  mortgage  loans
sold.

Noninterest Expenses. Noninterest expenses decreased to $1.9 million for the six
months  ended  September  30,  1997,  from $2.2 million for the same period last
year. The decrease is related  primarily to the one-time SAIF premium  discussed
above,  offset,  in part,  by an increase  in  compensation  and other  expenses
related to the opening of a branch  location on April 9, 1997 in Virginia Beach,
Virginia.

Taxes.  Taxes increased to $491,298 for the six months ended September 30, 1997,
from $383,482 for the six months ended September 30, 1996, due to an increase in
income before taxes for the six months ended September 30, 1997.

Forward-Looking Statements
--------------------------

This Quarterly Report on Form 10-QSB contains certain forward-looking statements
with respect to the financial  condition,  results of operations and business of
the  Company.  These  forward-looking   statements  involve  certain  risks  and
uncertainties. When used in this Quarterly Report on Form 10-QSB or

                                        8

<PAGE>


future filings by the Company with the Securities  and Exchange  Commission,  in
the Company's press releases or other public or shareholder  communications,  or
in oral  statements made with the approval of an authorized  executive  officer,
the words or phrases "will likely result",  "are expected to", "will  continue",
"is anticipated",  "estimate",  "project",  "believe" or similar expressions are
intended  to  identify  "forward-looking  statements"  within the meaning of the
Private Securities  Litigation Reform Act of 1995. The Company wishes to caution
readers not to place  undue  reliance  on any such  forward-looking  statements,
which speak only as of the date made, and to advise readers that various factors
including regional and national economic conditions, changes in levels of market
interest  rates,  credit  risks  of  lending  activities,  and  competitive  and
regulatory  factors could affect the Company's  financial  performance and could
cause the Company's actual results for future periods to differ  materially from
those anticipated or projected.

The Company does not undertake  and  specifically  disclaims  any  obligation to
publicly  release  the  result  of  any  revisions  which  may  be  made  to any
forward-looking   statements  to  reflect  the   occurrence  of  anticipated  or
unanticipated events or circumstances after the date of such statements.

                                        9


<PAGE>


                           PART II. OTHER INFORMATION


Item 1.  Legal Proceedings
         Not Applicable.

Item 2.  Changes in Securities
         Not Applicable.

Item 3.  Defaults Upon Senior Securities
         Not Applicable.

Item 4.  Submission of Matters to a Vote of Security Holders
         Not Applicable.

Item 5.  Other Information
         Not Applicable.

Item 6.  Exhibits and Reports on Form 8-K
         (a) See Exhibit Index
         (b) No Reports on Form 8-k were filed during the quarter ended
             September 30, 1997.


                                       10


<PAGE>

                                   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.


                                   COMMUNITY FINANCIAL CORPORATION

Date: November 10, 1997
      -----------------

                                   By: /s/ R. Jerry Giles
                                       ---------------------------
                                       R. Jerry Giles
                                       Chief Financial Officer
                                       (Duly Authorized Officer)



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<PAGE>


                         COMMUNITY FINANCIAL CORPORATION

                                  EXHIBIT INDEX


Exhibit No.            Description
-----------            -----------
27                     Financial Data Schedule (Edgar Only).




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