**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           EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2000

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

For the transition period from ____________ to _____________.



******COMMUNITY FINANCIAL CORPORATION**

---

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

|38 North Central Ave., Staunton, VA      |  | 24401     
|---------------------------------------- |  | ----------
|(Address of principal executive offices) |  | (Zip Code)

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

Number of shares of Common Stock, par value $.01 per share, outstanding at the close of business on November 6, 2000: 2,434,839

Transitional Small business Disclosure Format (check one): Yes [  ] No [X]

|PART I.  | FINANCIAL INFORMATION PAGE                                                                                   |  
|-------- | ------------------------------------------------------------------------------------------------------------ | -
|Item 1.  | Financial Statements                                                                                         |  
|         | Consolidated Statements of Financial Conditionat September 30, 2000 (unaudited) and March 31, 2000           | 1
|         | Consolidated Statements of Income for theThree  and Six Months Ended September 30, 2000 and 1999 (unaudited) | 2
|         | Consolidated Statements of Cash Flows for theSix Months Ended September 30, 2000 and1999 (unaudited)         | 3
|         | Notes to Unaudited Interim ConsolidatedFinancial Statements                                                  | 4
|Item 2.  | Management's Discussion and Analysis of FinancialCondition and Results of Operations                         | 5
|PART II. | OTHER INFORMATION                                                                                            | 8

|                                                                                                                   | September 30,2000(Unaudited) | March 31,2000
|------------------------------------------------------------------------------------------------------------------ | ---------------------------- | -------------
|ASSETS                                                                                                             |                              |              
|Cash (including interest bearing  deposits of approximately  $2,221,884 and $1,908,000)                            | $  4,965,036                 | $  7,424,577 
|Securities                                                                                                         |                              |              
|Held to maturity                                                                                                   | 31,175,557                   | 27,312,943   
|Available for sale                                                                                                 | 7,354,329                    | 6,863,674    
|Investment in Federal Home Loan  Bank stock, at cost                                                               | 2,700,000                    | 1,950,000    
|Loans receivable, net                                                                                              | 206,095,590                  | 189,700,859  
|Real estate owned                                                                                                  | 45,201                       | 823,002      
|Property and equipment, net                                                                                        | 6,416,413                    | 6,627,869    
|Accrued interest receivable                                                                                        |                              |              
|Loans                                                                                                              | 1,366,329                    | 1,145,835    
|Investments                                                                                                        | 250,333                      | 142,277      
|Prepaid expenses and other assets                                                                                  | 973,858                      | 1,086,330    
|                                                                                                                   |                              |              
|                                                                                                                   |                              |              
|Total Assets                                                                                                       | $261,342,646                 | $243,077,366 
|LIABILITIES AND STOCKHOLDERS' EQUITY                                                                               |                              |              
|                                                                                                                   |                              |              
|Liabilities                                                                                                        |                              |              
|Deposits                                                                                                           | $168,484,780                 | $158,568,275 
|Advances from Federal Home Loan Bank                                                                               | 45,000,000                   | 37,000,000   
|Securities sold under agreement to Repurchase                                                                      | 20,000,000                   | 20,000,000   
|Advance payments by borrowers for taxes and insurance                                                              | 223,443                      | 226,195      
|Other liabilities                                                                                                  | 2,112,951                    | 1,888,821    
|Total Liabilities                                                                                                  | 235,821,174                  | 217,683,291  
|Shareholders' Equity                                                                                               |                              |              
|Preferred stock, $.01 par value, authorized     3,000,000 shares; none outstanding                                 |                              |              
|Common stock, $.01 par value, authorized     10,000,000 shares; 2,443,539 and     2,511,526 shares and outstanding | 24,435                       | 25,115       
|Additional paid in capital                                                                                         | 4,652,854                    | 4,782,029    
|Retained earnings                                                                                                  | 19,354,075                   | 19,401,019   
|Net unrealized gains on securities available for sale                                                              | 1,490,108                    | 1,185,912    
|Total Stockholders' Equity                                                                                         | 25,521,472                   | 25,394,075   
|                                                                                                                   |                              |              
|Total Liabilities and Shareholders' Equity                                                                         | $261,342,646                 | $243,077,366 

See accompanying notes to consolidated financial statements.

|                                                     | Three MonthsEnded September 30, | Six MonthsEnded September 30,
|---------------------------------------------------- | ------------------------------- | -----------------------------
|                                                     | 2000                            | 1999                         
|                                                     | (Unaudited)                     | (Unaudited)                  
|INTEREST INCOME                                      |                                 |                              
|Loans                                                | $4,351,014                      | $3,632,134                   
|Investment securities                                | 638,168                         | 180,458                      
|Other                                                | 48,736                          | 44,657                       
|Total interest income                                | 5,037,918                       | 3,857,249                    
|INTEREST EXPENSE                                     |                                 |                              
|Deposits                                             | 1,890,507                       | 1,559,956                    
|Borrowed money                                       | 1,171,465                       | 419,297                      
|Total interest expense                               | 3,061,972                       | 1,979,253                    
|NET INTEREST INCOME                                  | 1,975,946                       | 1,877,996                    
|PROVISION FOR LOAN LOSSES                            | 100,511                         | 110,154                      
|NET INTEREST INCOME AFTER  PROVISION FOR LOAN LOSSES | 1,875,435                       | 1,767,842                    
|NONINTEREST INCOME                                   |                                 |                              
|Service charges, fees and commissions                | 753,506                         | 662,836                      
|Gain on sale of securities                           | ---                             | 51,206                       
|Miscellaneous                                        | 7,036                           | 152,613                      
|Total noninterest income                             | 760,542                         | 866,655                      
|NONINTEREST EXPENSE                                  |                                 |                              
|Compensation & benefits                              | 1,123,988                       | 1,068,412                    
|Occupancy                                            | 284,223                         | 289,105                      
|Data processing                                      | 213,215                         | 123,815                      
|Federal insurance premium                            | 8,170                           | 21,799                       
|Miscellaneous                                        | 403,148                         | 450,023                      
|Total noninterest expense                            | 2,032,744                       | 1,953,154                    
|INCOME BEFORE TAXES                                  | 603,233                         | 681,343                      
|INCOME TAXES                                         | 202,344                         | 311,738                      
|NET INCOME                                           | $  400,889                      | $  369,605                   
|BASIC EARNINGS PER SHARE                             | $  .16                          | $  .14                       
|DILUTED EARNINGS PER SHARE                           | $  .16                          | $  .14                       
|DIVIDENDS PER SHARE                                  | $  .08                          | $  .08                       

See accompanying notes to consolidated financial statements.

|                                                                                     | Six Months EndedSeptember 30,
|------------------------------------------------------------------------------------ | -----------------------------
|                                                                                     | 2000                         
|                                                                                     | (Unaudited)                  
|OPERATING ACTIVITIES                                                                 |                              
|Net income                                                                           | $838,080                     
|Adjustments to reconcile net income to     net cash provided by operating activities |                              
|Provision for loan losses                                                            | 164,410                      
|Depreciation                                                                         | 374,566                      
|Amortization of premium and accretion        of discount on securities, net          | (16,392)                     
|Increase (decrease) in net deferred loan fees                                        | 1,876                        
|Increase in deferred income taxes                                                    | 82,378                       
|(Increase) in other assets                                                           | (216,078)                    
|Increase (decrease) other liabilities                                                | (47,443)                     
|(Gain) on sale of loans                                                              | (302,462)                    
|Proceeds from sale of loans                                                          | 17,166,870                   
|Loans originated for resale                                                          | (14,508,706)                 
|Gain on sale of available for sale securities                                        | ---                          
|Net cash provided (absorbed) by operating activities                                 | 3,537,099                    
|INVESTING ACTIVITIES                                                                 |                              
|Proceeds from maturities of held to maturity securities                              | 675,000                      
|Proceeds from sale of available for sale securities                                  | ---                          
|Purchase of investment securities                                                    | (4,359,845)                  
|Net (Increase) in loans                                                              | (19,069,294)                 
|Purchases of property and equipment                                                  | (203,323)                    
|(Purchase) of FHLB stock                                                             | (750,000)                    
|Decrease (increase) in Real Estate Owned                                             | 777,801                      
|Net cash provided (absorbed) by investing activities                                 | (22,929,661)                 
|FINANCING ACTIVITIES                                                                 |                              
|Dividends paid                                                                       | (395,208)                    
|Net increase (decrease) in deposits                                                  | 9,916,505                    
|Proceeds from advances and other borrowed money                                      | 181,000,000                  
|Repayments of advances and other borrowed money                                      | (173,000,000)                
|Repurchase of common stock                                                           | (588,276)                    
|Net cash provided (absorbed) by financing activities                                 | 16,933,021                   
|(DECREASE) IN CASH AND CASH EQUIVALENTS                                              | (2,459,541)                  
|CASH AND CASH EQUIVALENTS-beginning of period                                        | 7,424,577                    
|CASH AND CASH EQUIVALENTS-end of period                                              | $4,965,036                   

See accompanying notes to consolidated financial statements.

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 ("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 and six months ended September 30, 2000, are not
necessarily indicative of the results that may be expected for the year ending March 31, 2001.

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.  Basic earnings per share for the three months ended September 30,
2000 and 1999 have been determined by dividing net income by the weighted average
number of shares of common stock outstanding during these periods (2,455,213 and
2,572,146, respectively). The number of shares used to determine diluted earnings
per share for the same three month periods was 2,455,213 and 2,572,146,
respectively. Basic earnings per share for the six months ended September 30,
2000 and 1999 have been determined by dividing net income by the weighted average
number of shares of common stock outstanding during these periods (2,472,406 and
2,572,146, respectively). The number of shares used to determine diluted earnings
per share for the same six month periods was 2,472,406 and 2,572,146,
respectively.

|                                         | For the Three Months Ended
|---------------------------------------- | --------------------------
|                                         | September 30, 2000        
|                                         | Income                    
|Basic EPS                                |                           
|Income available to  common stockholders | $400,889                  
|Effect of Dilutive  Securities Options   | --                        
|Diluted EPS                              |                           
|Income available to  common stockholders | $400,889                  

|                                         | For the Six Months Ended
|---------------------------------------- | ------------------------
|                                         | September 30, 2000      
|                                         | Income                  
|Basic EPS                                |                         
|Income available to  common stockholders | $838,080                
|Effect of Dilutive  Securities Options   | --                      
|Diluted EPS                              |                         
|Income available to  common stockholders | $838,080                

NOTE 3. - STOCKHOLDERS' EQUITY

The following table presents the Bank's capital levels at September 30, 2000 relative to the requirements applicable under the Financial Institutions Reform, Recovery and Enforcement Act of 1989 ("FIRREA"):

|                   | AmountRequired | PercentRequired | ActualAmount | ActualPercent | ExcessAmount
|------------------ | -------------- | --------------- | ------------ | ------------- | ------------
|                   |                |                 |              |               |             
|Tangible Capital   | $ 3,925,000    | 1.50%           | $23,742,000  | 9.07%         | $19,817,000 
|Core Capital       | 10,466,000     | 4.00            | 23,742,000   | 9.07          | 13,276,000  
|Risk-based Capital | 14,502,000     | 8.00            | 26,182,000   | 13.10         | 11,680,000  

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 "Tier 1" 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 require prior OTS notice, with the opportunity for OTS to object to the
distribution.  A Tier 1 savings bank is defined as a savings bank 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
savings banks 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, 2000 and 1999 was
$3,200,174 and $1,921,980, respectively. Total interest paid for the six months
ended September 30, 2000 and 1999 was $5,861,408 and $3,765,784. Total income
taxes paid for the three months ended September 30, 2000 and 1999 was $131,038
and $316,197. Total income taxes paid for the six months ended September 30, 2000
and 1999 was $357,418 and $742,168.

NOTE 5. - COMPREHENSIVE INCOME

FASB Statement No. 130, " Reporting Comprehensive Income", effective for
fiscal years beginning on or after January 1, 1998, establishes standards for
reporting and displaying comprehensive income and its components.
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 and six
month periods ended September 30, 2000 and 1999:

|                                                                                                                                                    | Three Months Ended September 30
|--------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------
|                                                                                                                                                    | 2000                           
|(Amounts in thousands)                                                                                                                              |                                
|Net income                                                                                                                                          | $  400,889                     
|Other comprehensive income,  net of tax    Unrealized gains on securities:      Unrealized holding gains (losses)    
    arising during the period | 361,068                        
|Less:  Reclassification        adjustment for (gains) losses        included in net income                                                          | ---                            
|                                                                                                                                                    | $  761,957                     

|                                                                                                                                                    | Six Months Ended September 30
|--------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------
|                                                                                                                                                    | 2000                         
|(Amounts in thousands)                                                                                                                              |                              
|Net income                                                                                                                                          | $  838,080                   
|Other comprehensive income,  net of tax    Unrealized gains on securities:      Unrealized holding gains (losses)    
    arising during the period | 304,196                      
|Less:  Reclassification        adjustment for (gains) losses        included in net income                                                          | ---                          
|                                                                                                                                                    | $1,142,276                   

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

FINANCIAL CONDITION

The Company's total assets increased $18.3 million to $261.3 million at September
30, 2000, due primarily to an increase in loans receivable of $16.4 million which
was funded with both increases in deposits and advances from the Federal Home
Loan Bank of Atlanta. Deposits increased $9.9 millon to $168.5 million at
September 30, 2000, from $158.6 million at March 31, 2000. The increase in
deposits was due primarily to an increase in time deposits. Stockholders' equity
increased to $25.5 million at September 30, 2000, from $25.4 million at March 31,
2000, due primarily to earnings for the six month period ended September 30, 2000
and an increase in the net unrealized gain on securities available for sale which
was partially offset by the Company's common  stock repurchase of $588,276 and
the payment of our quarterly cash dividends.

At September 30, 2000, non-performing assets totaled approximately $1.1 million
or .43% of assets compared to $1.3 million or .52% of assets at March 31, 2000.
Non-performing assets at September 30, 2000 were comprised primarily of
nonaccrual residential real estate 90 days or more delinquent. At September 30,
2000 the largest property in non-performing assets was a single family
residential loan with an approximate value of $220,000. At September 30, 2000,
our allowance for loan losses to non-performing assets was 126% and to total
assets was .54%. Based on current market values of the properties securing these
loans and current national and local economic conditons, management does not anticipate any significant losses in excess of the reserves
for losses previously recorded.

As of September 30, 2000, there were also $3.8 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 and residential real estate loans.  Included in the commercial real estate loans of
concern is one loan in the amount of $1.3 million, which is current as to
interest and principal payments.

We maintain an allowance for loan losses to provide for estimated potential 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 September 30, 2000.  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 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. As of September 30,2000 the Bank's liquidity
ratio (liquid assets as a percentage of net withdrawable savings and current
borrowings) was 5.97%, which exceeds the current 4% regulatory requirement.

At September 30, 2000, we had commitments to purchase or originate $24.1 million
of loans. Certificates of deposit scheduled to mature in one year or less at
September 30, 2000, totaled $52.0 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 forseeable short-term and long-term liquidity needs.

RESULTS OF OPERATIONS

Three Months Ended September 30, 2000 and 1999.

General.  Net income for the three months ended September 30, 2000 was $401,000
compared to $370,000 for the three months ended September 30, 1999. Net interest
income increased $98,000 while non-interest income decreased $106,000 during the
three months ended September 30, 2000 compared to the same period in 1999. Income
before taxes decreased to $603,000 for the three months ended September 30, 2000
from $681,000 for the three months ended September 30, 1999.

Interest Income.   Total interest income increased to $5.0 million for the three months ended September 30, 2000, from $3.9 million for the three months
ended September 30, 1999, due primarily to increases in both the average balance
of investment securities and loans for the three months ended September 30, 2000
as compared to the period ended September 30,1999.  The average yield earned on
interest-earning assets was 8.04% for the three months ended September 30, 2000
compared to 8.03% for the three months ended September 30, 1999.

Interest Expense.  Total interest expense increased to $3.1 million for the quarter ended September 30, 2000, from $2.0 million for the quarter ended
September 30, 1999. Interest on deposits increased to $1.9 million for the
quarter ended September 30, 2000 from $1.6 million for the quarter ended
September 30, 1999 due to increases in both the cost of deposits and the average outstanding deposit balances. The average rate paid on deposits for the three
months ended September 30, 1999 increased from 4.17% to 4.62% for the same period
in the current year. Interest expense on borrowed money increased to $1.2 million
for the quarter ended September 30, 2000, from $419,000 for the quarter ended
September 30, 1999, due to an increase in average outstanding borrowings and an
increase in the average rate paid.  The average rate paid on interest-bearing
liabilities was 5.25% during the three months ended September 30, 2000 compared
to 4.41% for the three months ended September 30, 1999.

Provision for Loan Losses.  The provision for loan losses decreased to $101,000
for the three months ended September 30, 2000, from $110,000 for the three months
ended September 30, 1999.

Noninterest Income.  Noninterest income decreased to $761,000 for the three
months ended September 30, 2000, from $867,000 for the three months ended September 30, 1999 due to gains realized on the sale of securities of $51,000 and computer conversion expense recovery during the quarter ended
September 30, 1999 offset by an increase in fees and gains on the sale of
mortgage loans in the secondary market by our subsidiary, Community First
Mortgage Corporation during the September 30, 2000 quarter.

Noninterest Expenses.  Noninterest expense increased by $80,000 to $2.0 million
for the three months ended September 30, 2000 compared to the same period last
year. Data processing expense increased during the September 30, 2000 quarter
compared to the September 30, 1999 quarter due to purchases of additional
equipment and increased electronic processing volumes. The increase in
compensation during the September 30, 2000 quarter compared to the September 30,
1999 was due primarily to increased commissions related to increased loan volume
in the Company's mortgage subsidiary.

Taxes.  Taxes decreased to $202,000 for the three months ended September 30, 2000, from $312,000 for the three months ended September 30, 1999.  The effective
tax rate decreased from 46% for the September 30, 1999 quarter to 34% for the
September 30, 2000 quarter due to an increase in interest income from tax
advantaged securities and a decrease in nondeductible net loan charge-offs.

Six Months Ended September 30, 2000 and 1999

General.  Net income for the six months ended September 30, 2000 decreased to
$838,000 compared to $881,000 for the six months ended September 30, l999 due
primarily to gains on sale of securities and expense recoveries in the September
30, 1999 six month period. Income before income taxes decreased to $1.3 million
for the six months ended September 30, 2000 from $1.5 million for the same period
in the prior year.

Interest Income.  Total interest income increased to $9.7 million for the six
months ended September 30, 2000, from $7.5 million for the six months ended
September 30, 1999, due primarily to an increase in the average balance of loans
and investment securities outstanding during the period. The yield on loans and
securities increased from 7.90% to 8.06% for the same periods.

Interest Expense.  Total interest expense increased to $5.8 million for the six
months ended September 30, 2000, from $3.8 million for the six months ended
September 30, 1999.  Interest on deposits increased to $3.6 million for the six
months ended September 30, 2000, from $3.1 million for the same period last year
due to increases in both the average outstanding deposit balances and the rate
paid. The rate paid on deposits increased from 4.21% for the six months ended
September 30, 1999 to 4.50% for the same period in the current fiscal year.
Interest expense on borrowed money increased to $2.2 million for the six months
ended September 30, 2000 from $706,000 for the six months ended September 30,
1999, due primarily to increased borrowings.

Provision for Loan Losses.  The provision for loan losses decreased to $166,000
for the six months ended September 30, 2000, from $179,000 for the same period
last year.

Noninterest Income.  Noninterest income decreased to $1.5 million for the six
months ended September 30, 2000, from $2.0 million for the six months ended
September 30, 1999, due to primarily to a decrease in gain on sale of securities.

Noninterest Expenses.  Noninterest expenses increased $71,000 for the six months
ended September 30, 2000, compared to the same period last year. Data processing
expense increased during the September 30, 2000 six month period due to purchases
of equipment and an additional branch location.

Taxes.  Taxes decreased to $450,000 for the three months ended September 30, 2000, from $667,000 for the six months ended September 30, 1999.  The effective
tax rate decreased from 43% for the September 30, 1999 period to 35% for the same
period ended September 30, 2000 due to an increase in interest income from tax
advantaged securities and a decrease in deductible net loan charge-offs.

Disclosure Regarding Forward-Looking Statements

This document, including information incorporated by reference, and future filings by Community Financial Corporation on Form 10-KSB, Form 10-QSB
and Form 8-K and future oral and written statements by Community Financial
Corporation and its management may contain, forward-looking statements about the
corporation 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 Community Financial Corporation and its management are based on
beliefs, plans, objectives, goals, expectations, anticipations, estimates and
intentions of management and are not guarantees of future performance.  Community
Financial Corporation 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 Community 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 Community 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

The Company held an annual meeting of stockholders on July 26, 2000.  The
following directors were elected at the meeting:  James R. Cooke, Jr., DDS, P.
Douglas Richard and Morgan N. Trimyer, Jr. The following directors term of office
continued after the meeting: Charles F. Anderson, M.D., Charles W. Fairchilds,
Jane C. Hickok and Dale C. Smith.

The matters voted on at the Meeting were

(1)  The election of three directors.

|                         | For       | Withheld
|------------------------ | --------- | --------
|P. Douglas Richard       | 2,137,744 | 42,925  
|James R.  Cooke, Jr. DDS | 2,112,744 | 42,925  
|Morgan N. Trimyer, Jr.   | 2,137,744 | 42,925  

(2)	Ratification of the appointment of BDO Seidman, LLP as
independent accountants for the Corporation for the fiscal
year ending March 31, 2001.

|For       | Against | Abstentions
|--------- | ------- | -----------
|2,169,334 | 8,135   | 2,900      

Item 5.  Other Information

Not Applicable.

Item 6.  Exhibits and Reports on Form 8-K

a.  Exhibits

See Exhibit Index.

b.  Reports on Form 8-k

None to be reported.

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 14, 2000 | By:  /s/ R. Jerry GilesR. Jerry GilesChief Financial Officer(Duly Authorized Officer)

|Exhibit No. |  | Description                                
|----------- |  | -------------------------------------------
|3.2         |  | By-laws, as amended and currently in effect
|10.1        |  | Employment contract with P. Douglas Richard
|27          |  | Financial Data Schedule