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

FORM 10-QSB

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

For the quarterly period ended June 30, 2002

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

For the transition period from **** to ****





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|**VIRGINIA**                                                  | **54-1532044******                 
|------------------------------------------------------------- | -----------------------------------
|(State of other jurisdiction ofincorporation or organization) | (I.R.S. EmployerIdentification No.)

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Number of shares of Common Stock, par value $.01 per share, outstanding at the close of business on July 15, 2002:  2,253,147.

Transitional Small Business Disclosure Format (Check one):         Yes  [  ]                  No  [X]





|PART I.  | FINANCIAL INFORMATION                                                                         |   
|-------- | --------------------------------------------------------------------------------------------- | --
|Item 1.  | Consolidated Financial Statements                                                             |   
|         | Consolidated Statements of Financial Conditionat June 30, 2002 (unaudited) and March 31, 2002 | 1 
|         | Consolidated Statements of Income for theThree  Months Ended June 30, 2002 (unaudited)        | 2 
|         | Consolidated Statements of Cash Flows for theThree Months Ended June 30, 2002 (unaudited)     | 3 
|         | Notes to Unaudited Interim ConsolidatedFinancial Statements                                   | 4 
|Item 2.  | Management's Discussion and Analysis of FinancialCondition and Results of Operations          | 7 
|PART II. | OTHER INFORMATION                                                                             | 11

COMMUNITY  FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

|                                                                                                                                         | June 30,2002 | March 31,2002
|---------------------------------------------------------------------------------------------------------------------------------------- | ------------ | -------------
|                                                                                                                                         | (Unaudited) 
|ASSETS                                                                                                                                  
|Cash (including interest-bearing
   deposits of approximately
  $2,367,000 at June 30, 2002 and
  $1,931,000 at March 31, 2002)          | $  5,132,732 | $  3,206,926 
|Securities                                                                                                                              
|Held to maturity                                                                                                                         | 21,250,145   | 16,773,803   
|Available for sale                                                                                                                       | 8,290,957    | 8,399,486    
|Investment in Federal Home Loan                                                                                                         
|Bank stock, at cost                                                                                                                      | 2,600,000    | 2,600,000    
|Loans receivable, net                                                                                                                    | 225,093,408  | 219,433,684  
|Loans held for sale                                                                                                                      | 4,384,388    | 4,409,122    
|Real estate owned                                                                                                                        | 803,297      | 793,603      
|Property and equipment, net                                                                                                              | 5,589,642    | 5,421,183    
|Accrued interest receivable                                                                                                             
|Loans                                                                                                                                    | 1,178,315    | 1,211,437    
|Investments                                                                                                                              | 407,859      | 369,447      
|Prepaid expenses and other assets                                                                                                        | 956,179      | 755,280      
|Total Assets                                                                                                                             | $275,686,922 | $263,373,971 
|LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                    
|Liabilities                                                                                                                             
|Deposits                                                                                                                                 | $217,794,758 | $204,535,456 
|Advances from Federal Home Loan Bank                                                                                                     | 27,000,000   | 28,000,000   
|Securities sold under agreement to repurchase                                                                                            | 1,205,129    | 950,805      
|Advance payments by borrowers for   taxes and insurance                                                                                  | 115,938      | 254,846      
|Other liabilities                                                                                                                        | 2,373,798    | 2,937,754    
|Total Liabilities                                                                                                                        | 248,489,623  | 236,678,861  
|Stockholders' Equity                                                                                                                    
|Preferred stock $.01 par value,
    authorized 3,000,000 shares,
    none outstanding                                                    | ---          | ---          
|Common stock, $.01 par value,
    authorized 10,000,000 shares,
    2,253,147 shares outstanding
    at June 30, 2002 and March 31, 2002 | 22,531       | 22,531       
|Additional paid in capital                                                                                                               | 4,373,419    | 4,326,489    
|Retained earnings                                                                                                                        | 20,746,046   | 20,223,498   
|Accumulated other comprehensive income                                                                                                   | 2,055,303    | 2,122,592    
|Total Stockholders' Equity                                                                                                               | 27,197,299   | 26,695,110   
|Total Liabilities and  Stockholders' Equity                                                                                              | $275,686,922 | $263,373,971 

See accompanying notes to consolidated financial statements.

COMMUNITY  FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME

|                                                    | Three Months Ended
June 30,
|--------------------------------------------------- | ---------------------------
|                                                    | 2002                       
|                                                    | (Unaudited)                
|INTEREST INCOME                                    
|Loans                                               | $4,029,786                 
|Investment securities                               | 266,036                    
|Other                                               | 139,721                    
|Total interest income                               | 4,435,543                  
|INTEREST EXPENSE                                   
|Deposits                                            | 1,680,441                  
|Borrowed money                                      | 129,474                    
|Total interest expense                              | 1,809,915                  
|NET INTEREST INCOME                                 | 2,625,628                  
|PROVISION FOR LOAN LOSSES                           | 102,248                    
|NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 2,523,380                  
|NONINTEREST INCOME                                 
|Service charges, fees and commissions               | 732,683                    
|Miscellaneous                                       | 26,956                     
|Total noninterest income                            | 759,639                    
|NONINTEREST EXPENSE                                
|Compensation and benefits                           | 1,364,415                  
|Occupancy                                           | 314,753                    
|Data processing                                     | 236,092                    
|Federal insurance premium                           | 8,341                      
|Miscellaneous                                       | 283,286                    
|Total noninterest expense                           | 2,206,887                  
|INCOME BEFORE TAXES                                 | 1,076,132                  
|INCOME TAXES                                        | 331,532                    
|NET INCOME                                          | $  744,600                 
|BASIC EARNINGS PER SHARE                            | $    0.33                  
|DILUTED EARNINGS PER SHARE                          | $    0.33                  
|DIVIDENDS PER SHARE                                 | $    0.08                  

See accompanying notes to consolidated financial statements.

COMMUNITY FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS

|                                                                                 | Three Months Ended
June 30,
|-------------------------------------------------------------------------------- | ---------------------------
|                                                                                 | 2002                       
|                                                                                 | (Unaudited)                
|OPERATING ACTIVITIES                                                            
|Net income                                                                       | $  744,600                 
|Adjustments to reconcile net income to net cash provided by operating activities
|Provision for loan losses                                                        | 102,248                    
|Depreciation                                                                     | 175,067                    
|Amortization of premium and accretion  of discount on securities, net            | 5,013                      
|(Decrease) in net deferred loan fees                                             | (33,677)                   
|(Increase in deferred income taxes                                               | 488                        
|(Increase)decrease in other assets                                               | (206,189)                  
|(Decrease) in other liabilities                                                  | (661,598)                  
|(Gain) loss on sale of loans                                                     | (87,415)                   
|Proceeds from sale of loans                                                      | 15,008,326                 
|(Loans originated for resale                                                     | (14,983,592)               
|Net cash provided by operating activities                                        | 63,271                     
|INVESTING ACTIVITIES                                                            
|Proceeds from maturities of held to maturity securities                          | 1,250,000                  
|Purchases of investment securities                                               | (5,731,355)                
|Net(increase)decrease in loans                                                   | (5,628,318)                
|Purchases of property and equipment                                              | (343,859)                  
|Redemption (purchase) of FHLB stock                                              | -                          
|(Increase) in Real Estate Owned                                                  | (9,694)                    
|Net cash provided (absorbed) by investing activities                             | (10,463,226)               
|FINANCING ACTIVITIES                                                            
|Dividends paid                                                                   | (180,252)                  
|Net increase in deposits                                                         | 13,259,302                 
|Proceeds from advances and other borrowed money                                  | 87,886,924                 
|Repayments of advances and other borrowed money                                  | (88,632,603)               
|Proceeds from issuance of common stock                                           | 58,390                     
|Repurchase of common stock                                                       | (66,000)                   
|Net cash provided (absorbed) by financing activities                             | (12,325,761)               
|INCREASE IN CASH AND CASH EQUIVALENTS                                            | 1,925,806                  
|CASH AND CASH EQUIVALENTS-beginning of period                                    | 3,206,926                  
|CASH AND CASH EQUIVALENTS-end of period                                          | $5,132,732                 

See accompanying notes to consolidated financial statements.

COMMUNITY FINANCIAL CORPORATION
NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2002

NOTE 1. - BASIS OF PRESENTATION

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-QSB and 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 ("Community" or the "Company"), its wholly-owned subsidiary, Community Bank (the "Bank") and Community First
Mortgage Corporation, a wholly-owned subsidiary of the Bank ("First Mortgage").  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 months ended June 30, 2002, are not necessarily indicative of the results that may be expected for the year ending March 31, 2003.

NOTE 2. - EARNINGS PER SHARE

Basic earnings per share is based on net income divided by the weighted average
number of common shares outstanding during the period.  Diluted earnings per
share shows the dilutive effect of additional common shares issuable under
stock option plans. Diluted earnings per share is computed by dividing net
earnings by the weighted average number of common shares and common share
equivalents outstanding. Basic and diluted earnings per share are computed in
the following table.

|                                        | For the Three Months Ended
|--------------------------------------- | --------------------------
|                                        | June 30, 2002             
|                                        | Income                    
|Basic EPS                              
|Income available to common stockholders | $744,600                  
|Effect of Dilutive Securities          
|Options                                 | ---                       
|Diluted EPS                            
|Income available to common stockholders | $744,600                  

NOTE 3. - STOCKHOLDERS' EQUITY

The following table presents the Bank's regulatory capital levels at June 30, 2002:

|                   | AmountRequired | PercentRequired | ActualAmount | ActualPercent | ExcessAmount
|------------------ | -------------- | --------------- | ------------ | ------------- | ------------
|Tangible Capital   | $ 4,123,000    | 1.50%           | $24,622,000  | 8.96%         | $20,499,000 
|Core Capital       | 10,997,000     | 4.00            | 24,622,000   | 8.96          | 13,625,000  
|Risk-based Capital | 15,948,000     | 8.00            | 27,808,000   | 13.95         | 11,860,000  

Capital distributions by OTS-regulated savings banks are limited by regulation
("Capital Distribution Regulation").  Capital distributions are defined to include,
in part, dividends, stock repurchases and cash-out mergers.  The Capital Distribution
Regulation permits a savings bank to make capital distributions during a calendar year
equal to net income for the current year plus the previous two years net income, less
capital distributions paid over the same period. Any distributions in excess of that
amount requires prior OTS approval. The Capital Distribution Regulation requires that
savings banks in holding company structures provide the applicable OTS Regional
Director with a 30-day advance written notice of all proposed capital distributions
whether or not advance approval is required by the regulation. The OTS may object to
capital distributions if the bank is not meeting its regulatory capital requirements,
the distribution raises safety and soundness concerns or is otherwise in violation of
law.

NOTE 4. - SUPPLEMENTAL INFORMATION - STATEMENT OF CASH FLOWS

Total interest paid for the three months ended June 30, 2002 and 2001 was
$2,994,586 and $2,609,022, respectively. Total income taxes paid for the three
months ended June 30, 2002 and 2001 was $59,493 and $320,000.

NOTE 5. - COMPREHENSIVE INCOME

Comprehensive income is defined as "the change in equity (net assets)
of a business enterprise during a period from transactions and other events
and circumstances from non-owner sources. It includes all changes in equity
during a period except those resulting from investments by owners and
distributions to owners." Comprehensive income for the Company includes net
income and unrealized gains and losses on securities available for sale. The
following tables set forth the components of comprehensive income for the
three-month periods ended June 30, 2002 and 2001:

|                                                            | Three Months Ended June 30,
|----------------------------------------------------------- | ---------------------------
|                                                            | 2002                       
|(Amounts in thousands)                                     
|Net income                                                  | $ 744,600                  
|Other comprehensive income, net of tax                     
|Unrealized gains(losses)on securities:                     
|Unrealized holding gains (losses) arising during the period | (67,289)                   
|                                                            | $ 677,311                  

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

FINANCIAL CONDITION

The Company's total assets increased $12.3 million to $275.7 million at June
30, 2002 from $263.4 million at March 31, 2002 due primarily to increases in
held to maturity securities of $4.5 million and loans receivable of $5.7
million. Deposits increased $13.3 million to $217.8 million at June 30, 2002,
from $204.5 million at March 31, 2002. The increase in deposits was due
primarily to an increase in savings accounts of $17.5 million which was offset
by a decrease in time deposits of $4.7 million. Stockholders' equity increased
$502,000 to $27.2 million at June 30, 2002, from $26.7 million at March 31,
2002, due primarily to earnings for the three month period ended June 30, 2002
which was partially offset by a decrease in the net unrealized gain on
securities available for sale, the Company's stock repurchase of $66,000 and
a payment of $0.08 per share in cash dividends.

At June 30, 2002, non-performing assets totaled approximately $2.5 million or .92% of assets compared to $941,000 or .36% of assets at March 31, 2002.
Non-performing assets at June 30, 2002 were comprised primarily of real estate
90 days or more past due. At June 30, 2002, our allowance for loan losses to
non-performing assets was 69.5% and to total assets was .63%. Based on current
market values of the properties securing these loans, management anticipates no significant losses in excess of the reserves for losses previously recorded.

As of June 30, 2002, there were also $3.6 million in loans with respect to
which known information about the possible credit problems of the borrowers or the cash flows of the security properties have caused management to have doubts as to the ability of the borrowers to comply with present loan repayment terms and
which may result in the future inclusion of such items in the non-performing asset categories. These loans are comprised primarily of commercial real estate loans. Included in the commercial real estate loans of
concern was a loan to one borrower in the amount of $1.2 million which we are
monitoring due to a prior bankruptcy. The loan is current as to principal and
interest at June 30, 2002.

CRITICAL ACCOUNTING POLICIES

General

The Company's financial statements are prepared in accordance with accounting
principals generally accepted in the United States (GAAP). The financial
information contained within our statements is, to a significant extent,
financial information that is based on measures of the financial effects of
transactions and events that have already occurred. A variety of factors could
affect the ultimate value that is obtained either when earning income,
recognizing an expense, recovering an asset or relieving a liability. We use
historical loss factors as one factor in determining the inherent loss that may
be present in our loan portfolio. Actual losses could differ significantly from
the historical factors that we use. In addition, GAAP itself may change from
one previously acceptable method to another method. Although the economics of
our transactions would be the same, the timing of events that would impact our
transactions could change.

Allowance for Loan Losses

The allowance for loan losses is an estimate of the losses that may be
sustained in our loan portfolio. The allowance is based on two basic principles
of accounting: (i) Statement of Financial Accounting Standard ("SFAS") No.5,
Accounting for Contingencies, which requires that losses be accrued when they
are probable of occurring and estimable and (ii) SFAS 114, Accounting by
Creditors for Impairment of a Loan, which requires that losses be accrued based
on the differences between the value of collateral, present value of future
cash flows or values that are observable in the secondary market and the loan
balance.

We maintain an allowance for loan losses to provide for estimated probable losses in our loan portfolio.  Management determines the level of reserves based on loan performance, the value of the collateral, economic and market conditions, and previous experience.  Management reviews the adequacy of the allowance at least quarterly, utilizing its internal loan classification system.  Management believes that the loan loss reserve is
adequate at June 30, 2002.  Although management believes it uses the best information available, future adjustments to reserves may be necessary.

LIQUIDITY

Historically, the Bank has maintained its liquid assets at a level believed adequate to meet requirements of normal daily activities, repayment of maturing debt and potential deposit outflows. Management believes that the Bank will continue to
have adequate liquidity for the foreseeable future. Cash flow projections are
regularly reviewed and updated to assure that adequate liquidity is provided. As of June 30, 2002, the
Bank's liquidity ratio (liquid assets as a percentage of net withdrawable savings and current borrowings) was 12.0%.

At June 30, 2002, we had commitments to purchase or originate $17.3 million of
loans. Certificates of deposit scheduled to mature in one year or less at June
30, 2002, totaled $53.5 million. Based on our historical experience, management
believes that a significant portion of such deposits will remain with us.
Management further believes that loan repayments and other sources of funds
will be adequate to meet our foreseeable short-term and long-term liquidity
needs.

RESULTS OF OPERATIONS

Three Months Ended June 30, 2002 and 2001.

General.  Net income for the three months ended June 30, 2002 was $745,000
compared to $722,000 for the three months ended June 30, 2001, an increase of
$23,000. Net interest income increased $189,000, while non-interest income
decreased $49,000 during the three months ended June 30, 2002 compared to the
same period in 2001. Return on equity for the three months ended June 30, 2002
was 11.06% compared to 11.26% for the three month period ended June 30, 2001.
Return on assets was 1.10% for quarter ended June 30, 2002 compared to 1.13%
for the same period in the previous fiscal year.

Interest Income. Total interest income decreased by $768,000 to $4.4 million
for the three months ended June 30, 2002, from $5.2 million for the three
months ended June 30, 2001, due to a decline in the balance of our investment
securities and lower yields for both investment securities and loans for the
three months ended June 30, 2002 as compared to the period ended June 30, 2001.
The decline in yield was due to the decline in market interest rates generally.
The average yield earned on interest-earning assets was 6.86% for the three
months ended June 30, 2002 compared to 8.06% for the three months ended June
30, 2001.

Interest Expense.  Total interest expense decreased by $957,000 to $1.8 million
for the quarter ended June 30, 2002, from $2.8 million for the quarter ended
June 30, 2001. Interest on deposits decreased by $363,000 to $1.7 million for
the quarter ended June 30, 2002 from $2.0 million for the quarter ended June
30, 2001 due primarily to a 150 basis point decline in the average rate paid
on deposits to 3.16%. Interest expense on borrowed money decreased by $594,000
to $129,000 for the quarter ended June 30, 2002, from $723,000    for the
quarter ended June 30, 2000, as a result of a decline both in the rate paid and
the average outstanding balances on borrowings.  The average rate paid on
interest-bearing liabilities was 3.03% during the three months ended June 30,
2002 compared to 4.64% for the three months ended June 30, 2001.

Provision for Loan Losses.  The provision for loan losses increased by $44,000
to $102,000 for the three months ended June 30, 2002, from $58,000 for the
three months ended June 30, 2001.

Noninterest Income.  Noninterest income decreased by $50,000 to $759,000 for
the three months ended June 30, 2002, from $809,000 for the three months ended
June 30, 2001 due primarily to a decrease in service charges, fees and
commissions on the sale of mortgage loans in the secondary market by our
mortgage-banking subsidiary, during the June 30, 2002 quarter. The decrease is
related to a decline in loan closings.

Noninterest Expense.  Noninterest expense increased by $77,000 to $2.2 million
for the three months ended June 30, 2002 compared to the same period last year.
Compensation and benefits increased by $219,000 to $1.4 million compared to the
same period last year due primarily to the addition of employees and annual
salary increases. Miscellaneous expense decreased by $172,000 to $283,000
during the June 30, 2002 quarter compared to the June 30, 2001 quarter. The
decrease in miscellaneous expenses is attributable to decreases in professional
expenses and expenses on foreclosed property.

Taxes.  Taxes decreased by $5,000 to $331,000 for the three months ended June
30, 2002, from $336,000 for the three months ended June 30, 2001. The effective
tax rate decreased from 31.7% for the June 30, 2001 quarter to 30.8% for the
June 30, 2002 quarter.

RECENT ACCOUNTING PRONOUNCEMENTS

In June 2001, the Financial Accounting Standards Board issued SFAS No. 143,
*Accounting for Asset Retirement Obligations.*  This Statement addresses
financial accounting and reporting for obligations associated with the
retirement of tangible long-lived assets and associated retirement costs.  It
requires that the fair value of a liability for an asset retirement obligation
be recognized in the period in which it is incurred and the associated asset
retirement costs be capitalized as part of the carrying amount of the long-lived asset.  This Statement is effective for financial statements issued for
fiscal years beginning after June 15, 2002.  The Statement is not expected to
have a material effect on the Company's financial statements.

In August 2001, the Financial Accounting Standards Board issued SFAS No. 144,*Accounting for the Impairment or Disposal of Long-Lived Assets.*The Statement
addresses financial accounting and reporting for the impairment or disposal of
long-lived assets.  It also establishes a single accounting model for long-lived assets to be disposed of by sale, which includes long-lived assets that
are part of a discontinued operation.  This Statement is effective for
financial statements issued for fiscal years and interim periods beginning
after December 15, 2001.  The Statement is not expected to have a material
effect on the Company's financial statements.

In April of 2002, the Financial Accounting Standards Board issued SFAS
No. 145, *Rescission of SFAS Statements No. 4, 44 and 64, Amendment of
SFAS Statement No. 13, and Technical Corrections*.  The Statement removes
criteria for reporting gains and losses from debt extinguishment as
extraordinary items on the income statement, citing that debt
extinguishment has become part of the risk management strategy of many
companies.  The Statement also modifies accounting treatment for leases
in cases where capital leases are modified into operating leases.  The
treatment requires that a capital lease modified in this manner be
accounted for under the sale-leaseback provisions under either SFAS 98
or SFAS 28 as applicable.  This Statement shall be applied in fiscal
years beginning after May 15, 2002.  The Statement is not expected to
have a material effect on the Corporation's financial statements.

Disclosure Regarding Forward-Looking Statements

This document, including information incorporated by reference, contains and
future filings by the Company on Form 10-KSB, Form 10-QSB and Form 8-K and
future oral and written statements by the Company and its management may
contain, forward-looking statements about the Company and its subsidiaries
which we believe are within the meaning of the Private Securities Litigation
Reform Act of 1995.  These forward-looking statements include, without
limitation, statements with respect to anticipated future operating and
financial performance, growth opportunities, interest rates, cost savings and
funding advantages expected or anticipated to be realized by management.  Words
such as "may," "could," "should," "would," "believe," "anticipate," "estimate,"
"expect," "intend," "plan" and similar expressions are intended to identify
these forward-looking statements.  Forward-looking statements by the Company
and its management are based on beliefs, plans, objectives, goals,
expectations, anticipations, estimates and intentions of management and are not
guarantees of future performance. The Company disclaims any obligation to
update or revise any forward-looking statements based on the occurrence of
future events, the receipt of new information, or otherwise.  The important
factors we discuss below and elsewhere in this document, as well as other
factors discussed under the caption "Management's Discussion and Analysis of
Financial Condition and Results of Operations" in this document and identified
in our filings with the SEC and those presented elsewhere by our management
from time to time, could cause actual results to differ materially from those
indicated by the forward-looking statements made in this document.

The following factors, many of which are subject to change based on
various other factors beyond our control, could cause our financial performance
to differ materially from the plans, objectives, expectations, estimates and
intentions expressed in such forward-looking statements:

- the strength of the United States economy in general and the strength
of the local economies in which we conduct our operations;
- the effects of, and changes in, trade, monetary and fiscal policies
and laws, including interest rate policies of the Federal Reserve
Board;
- inflation, interest rate, market and monetary fluctuations;
- the timely development of and acceptance of new products and services
of the Bank and the perceived overall value of these products and
services by users, including the features, pricing and quality
compared to competitors' products and services;
- the willingness of users to substitute competitors' products and
services for our products and services;
- the success of the Bank in gaining regulatory approval of its products
and services, when required;
- the impact of changes in financial services' laws and regulations
(including laws concerning taxes, banking, securities and insurance);
- the impact of  technological changes;
- acquisitions;
- changes in consumer spending and saving habits; and
- our success at managing the risks involved in the foregoing.

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. | Reports on Form 8-K: On May 15, 2002, the Company filed a Current
Report of Form 8-K containing a press release announcing earnings
for the fourth quarter and fiscal year ended March 31, 2002 and
the date of the Registrant's annual meeting of shareholders.

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: August 14, 2002 | By:                            

CERTIFICATION

Each of the undersigned hereby certifies in his capacity as an officer of
Community Financial Corporation (the "Company") that the quarterly report of
the Company on Form 10-QSB for the period ended June 30, 2002 fully complies
with the requirements of Section 13(a) of the Securities Exchange Act of 1934
and that the information contained in such report fairly presents, in all
material respects, the financial condition of the Company at the end of such
period and the results of operations of the Company for such period.

|Date: August 14, 2002 | By: | /s/ P. Douglas RichardP. Douglas Richard
Chief Executive Officer
|--------------------- | --- | ----------------------------------------------------------------
|Date: August 14, 2002 | By: | /s/ R. Jerry GilesR. Jerry Giles
Chief Financial Officer        

|ExhibitNumber     | Document                                                                     | Reference to Prior Filingor Exhibit NumberAttached Hereto               
|----------------- | ---------------------------------------------------------------------------- | ------------------------------------------------------------------------
|3.1               | Amended and Restated Articles of Incorporation                               | *                                                                       
|3.2               | Bylaws, as amended an currently in effect                                    | **                                                                      
|4                 | Form of Common Stock Certificate                                             | ***                                                                     
|                  | Material contracts:                                                          |                                                                         
|10.1              | Stock Option and Incentive Plan                                              | ****                                                                    
|10.2              | Employment Agreement for P. Douglas Richard                                  | **                                                                      
|10.3              | Amendment No. One and Two to the Employment Agreement for
P. Douglas Richard | 10.3                                                                    
|10.4              | Employment Agreement for Chris P. Kyriakides, as amended                     | 10.4                                                                    
|10.5              | 1996 Incentive Plan                                                          | *                                                                       
|10.6              | Supplemental Executive Retirement Plan                                       | ***                                                                     
|11            | Statement re computation of per share earnings                               | (See Note 2 to the Notes to
Unaudited Consolidated
Financial Statements)

|*    | Filed on July 5, 1996 as an exhibit to the Registrant's Definitive Proxy Statement (File Number 000-18265) on Schedule 14A. Such previously filed document is hereby incorporated herein by reference in accordance with Item 601 of Regulation S-B.                                  
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|**   | Filed on November 14, 2000 as Exhibits to the Registrant's Quarterly Report on Form 10-QSB (file no, 000-18205), for the quarter ended September 30, 2000.  Such previously filed documents are hereby incorporated herein by reference in accordance with Item 601 of Regulation S-B.
|***  | Filed on June 29, 2000, as Exhibit 10 to the Annual Report on Form 10-KSB for the fiscal year ended March 31, 2000. Such previously filed document is hereby incorporated herein by reference in accordance with Item 601 of Regulation S-B.                                          
|**** | Filed on May 19, 1989 as exhibits to the Registrant's Registration Statement No. 33-28817 on Form S-4. All of such previously filed documents are hereby incorporated herein by reference in accordance with It