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

FORM 10-Q

(Mark one)

|                                                        | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 
|------------------------------------------------------- | ----------------------------------------------------------------------------------------
|FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 2005       
|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 0-18261

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

---

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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes     No

Indicate by check mark whether the registrant is a large accelerated filer, or a non-accelerated filer.  See definition of "accelerated filer" and "large accelerated filer" (as defined in Rule 12b-2 of the Exchange Act). 

Large accelerated filer             Accelerated filer             Non-accelerated filer

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes      No

Number of shares of Common Stock, par value $.01 per share, outstanding at the close of business on February 8, 2006:   2,111,756.

COMMUNITY FINANCIAL CORPORATION

INDEX

|PART I.       | FINANCIAL INFORMATION                                                                                          |   
|------------- | -------------------------------------------------------------------------------------------------------------- | --
|Item 1.       | Consolidated Financial Statements                                                                              |   
|              | Consolidated Statements of FinancialCondition at December 31, 2005 (unaudited)and March 31, 2005               | 3 
|              | Consolidated Statements of Income for the Three andNine Months Ended December 31, 2005 and 2004(unaudited)     | 4 
|              | Consolidated Statements of Cash Flows for the Three andNine Months Ended December 31, 2005 and 2004(Unaudited) | 5 
|              | Notes to Unaudited Interim ConsolidatedFinancial Statements                                                    | 6 
|Item 2.       | Management's Discussion and Analysis of Financial Conditionand Results of Operations                           | 10
|Item 3.       | Quantitative and Qualitative Disclosures About Market Risk                                                     | 17
|Item 4.       | Controls and Procedures                                                                                        | 17
|PART II.      | OTHER INFORMATION                                                                                              | 18
|Exhibit Index | 19                                                                                                            

Part I. Financial Information

Item 1. Financial Statements

COMMUNITY FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

|                                                                                                                | December 312005 | March 312005
|--------------------------------------------------------------------------------------------------------------- | --------------- | ------------
|                                                                                                                | (Unaudited)     |             
|ASSETS                                                                                                          |                 |             
|Cash (including interest-bearing  deposits of approximately  $4,357,000 and $1,555,000)                         | $ 9,142,462     | $ 2,345,769 
|Securities                                                                                                      |                 |             
|Held to maturity                                                                                                | 25,459,112      | 26,630,865  
|Available for sale                                                                                              | 13,698,697      | 13,496,728  
|Restricted investment in Federal  Home Loan Bank stock, at cost                                                 | 4,228,700       | 4,228,700   
|Loans receivable, net of allowance  for loan losses of $2,979,701 and  $3,021,493                               | 348,792,868     | 336,808,373 
|Real estate owned                                                                                               | 180,653         | 138,114     
|Property and equipment, net                                                                                     | 8,053,463       | 7,845,945   
|Accrued interest receivable                                                                                     |                 |             
|Loans                                                                                                           | 1,520,134       | 1,262,333   
|Investments                                                                                                     | 757,488         | 598,649     
|Prepaid expenses and other assets                                                                               | 5,695,461       | 6,248,506   
|                                                                                                                |                 |             
|Total Assets                                                                                                    | $417,529,038    | $399,603,982
|                                                                                                                |                 |             
|LIABILITIES AND STOCKHOLDERS' EQUITY                                                                            |                 |             
|Liabilities                                                                                                     |                 |             
|Deposits                                                                                                        | $288,053,487    | $275,430,388
|Advances from Federal Home Loan    Bank                                                                         | 77,000,000      | 76,000,000  
|Securities sold under agreement to    repurchase                                                                | 16,326,278      | 15,650,497  
|Advance payments by borrowers for    taxes and insurance                                                        | 79,902          | 167,437     
|Other liabilities                                                                                               | 1,768,596       | 1,030,576   
|                                                                                                                |                 |             
|Total Liabilities                                                                                               | 383,228,263     | 368,278,898 
|                                                                                                                |                 |             
|Stockholders' Equity                                                                                            |                 |             
|Preferred stock $.01 par value,    authorized 3,000,000 shares,    none outstanding                             | ---             | ---         
|Common stock, $.01 par value,    authorized 10,000,000 shares,    2,104,956 and 2,085,106 shares    outstanding | 21,050          | 20,851      
|Additional paid in capital                                                                                      | 4,578,079       | 4,292,815   
|Retained earnings                                                                                               | 28,520,528      | 25,948,758  
|Accumulated other comprehensive    income                                                                       | 1,181,118       | 1,062,660   
|                                                                                                                |                 |             
|Total Stockholders' Equity                                                                                      | 34,300,775      | 31,325,084  
|                                                                                                                |                 |             
|Total Liabilities and            Stockholders' Equity                                                           | $417,529,038    | $399,603,982
|                                                                                                                |                 |             

See accompanying notes to unaudited interim consolidated financial statements.

COMMUNITY FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME

|                                                     | Three Months EndedDecember 31 | Nine Months EndedDecember 31
|---------------------------------------------------- | ----------------------------- | ----------------------------
|                                                     | 2005                          | 2004                        
|                                                     | (Unaudited)                   | (Unaudited)                 
|INTEREST INCOME                                      |                               |                             
|Loans                                                | $5,688,693                    | $4,604,560                  
|Investment securities                                | 263,083                       | 285,974                     
|Other                                                | 278,441                       | 246,494                     
|                                                     |                               |                             
|Total interest income                                | 6,230,217                     | 5,137,028                   
|                                                     |                               |                             
|INTEREST EXPENSE                                     |                               |                             
|Deposits                                             | 1,785,743                     | 1,216,099                   
|Borrowed money                                       | 907,575                       | 410,437                     
|                                                     |                               |                             
|Total interest expense                               | 2,693,318                     | 1,626,536                   
|                                                     |                               |                             
|NET INTEREST INCOME                                  | 3,536,899                     | 3,510,492                   
|PROVISION FOR LOAN LOSSES                            | 13,481                        | 207,741                     
|                                                     |                               |                             
|NET INTEREST INCOME AFTER  PROVISION FOR LOAN LOSSES | 3,523,418                     | 3,302,751                   
|                                                     |                               |                             
|NONINTEREST INCOME                                   |                               |                             
|Service charges, fees    and commissions             | 642,001                       | 563,681                     
|Other                                                | 99,835                        | 94,657                      
|                                                     |                               |                             
|Total noninterest income                             | 741,836                       | 658,338                     
|                                                     |                               |                             
|NONINTEREST EXPENSE                                  |                               |                             
|Compensation & benefits                              | 1,623,972                     | 1,488,140                   
|Occupancy                                            | 362,762                       | 295,236                     
|Data processing                                      | 326,451                       | 340,276                     
|Federal insurance premium                            | 9,395                         | 9,596                       
|Advertising                                          | 92,040                        | 104,332                     
|Other                                                | 323,217                       | 339,692                     
|                                                     |                               |                             
|Total noninterest expense                            | 2,737,837                     | 2,577,272                   
|                                                     |                               |                             
|INCOME BEFORE TAXES                                  | 1,527,417                     | 1,383,817                   
|INCOME TAXES                                         | 468,205                       | 444,279                     
|                                                     |                               |                             
|NET INCOME                                           | $1,059,212                    | $939,538                    
|                                                     |                               |                             
|BASIC EARNINGS PER SHARE                             | $ 0.51                        | $ 0.45                      
|DILUTED EARNINGS PER SHARE                           | $ 0.49                        | $ 0.43                      
|DIVIDENDS PER SHARE                                  | $ 0.11                        | $ 0.11                      

See accompanying notes to unaudited interim consolidated financial statements.

COMMUNITY FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS

|                                                                                       | Nine Months EndedDecember 31
|-------------------------------------------------------------------------------------- | ----------------------------
|                                                                                       | 2005                        
|                                                                                       | (Unaudited)                 
|OPERATING ACTIVITIES                                                                   |                             
|Net income                                                                             | $ 3,262,907                 
|Adjustments to reconcile net income to    net cash provided by operating    activities |                             
|Provision for loan losses                                                              | 137,231                     
|Depreciation                                                                           | 417,917                     
|Amortization of premium and accretion        of discount on securities, net            | 7,753                       
|(Decrease)increase in net deferred        loan fees                                    | (116,099)                   
|(Decrease)in deferred income taxes                                                     | (95,484)                    
|(Increase) decrease in other assets                                                    | 136,405                     
|Increase in other liabilities                                                          | 574,881                     
|                                                                                       |                             
|Net cash provided by operating          activities                                     | 4,325,511                   
|                                                                                       |                             
|INVESTING ACTIVITIES                                                                   |                             
|Proceeds from maturities of held to    maturity securities                             | 1,171,753                   
|Purchases of investment securities                                                     | --                          
|Net increase in loans                                                                  | (11,925,802)                
|Purchases of property and equipment                                                    | (625,436)                   
|(Purchase) of FHLB stock                                                               | ---                         
|(Increase) decrease in Real Estate Owned                                               | (42,539)                    
|                                                                                       |                             
|Net cash absorbed by investing      activities                                         | (11,422,024)                
|                                                                                       |                             
|FINANCING ACTIVITIES                                                                   |                             
|Dividends paid                                                                         | (691,137)                   
|Net increase in deposits                                                               | 12,623,099                  
|Proceeds from advances and other    borrowed money                                     | 154,341,320                 
|Repayments of advances and other    borrowed money                                     | (152,665,539)               
|Proceeds from issuance of common stock                                                 | 285,463                     
|                                                                                       |                             
|Net cash provided by    financing activities                                           | 13,892,206                  
|                                                                                       |                             
|INCREASE(DECREASE) IN CASH AND CASH  EQUIVALENTS                                       | 6,796,693                   
|CASH AND CASH EQUIVALENTS-beginning of period                                          | 2,345,769                   
|                                                                                       |                             
|CASH AND CASH EQUIVALENTS-end of period                                                | $ 9,142,462                 
|                                                                                       |                             

See accompanying notes to unaudited interim consolidated financial statements

COMMUNITY FINANCIAL CORPORATION
NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

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-Q 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") 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 nine months ended December 31, 2005, are not necessarily indicative of the results that may be expected for the year ending March 31, 2006.

Note 2. - Stock-Based Compensation Plan

At December 31, 2005, the Company had a stock-based employee compensation plan. The Company accounts for the plan under the recognition and measurement principles of APB Opinion No. 25, *Accounting for Stock Issued to Employees*, and related Interpretations. No stock-based employee compensation cost is reflected in net income, as all options granted under those plans had an exercise price equal to the market value of the underlying common stock on the date of grant. The Company applies the fair value recognition provisions of SFAS No. 123, *Accounting for Stock-Based Compensation*, to stock-based employee compensation. The value of each grant is estimated at the grant date using the Black-Scholes option-pricing model. No proforma compensation expense is disclosed for the quarter and six months ended December 31, 2005 and 2004 as no options were granted during those periods and options outstanding are fully vested.

NOTE 3. - 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
|---------------------------------------- | --------------------------
|                                         | December 31, 2005         
|                                         | Income                    
|Basic EPS                                |                           
|Income available to  common stockholders | $1,059,212                
|Effect of Dilutive  Securities           |                           
|Options                                  | ---                       
|                                         |                           
|Diluted EPS                              |                           
|Income available to  common stockholders | $1,059,212                
|                                         |                           

During the quarter ended December 31, 2005, stock options representing 47,000 shares were not included in the calculation of earnings per share because they would have been anti-dilutive. No stock options were excluded for the quarter ended December 31, 2004.

|                                         | For the Nine Months Ended
|---------------------------------------- | -------------------------
|                                         | December 31, 2005        
|                                         | Income                   
|Basic EPS                                |                          
|Income available to  common stockholders | $3,262,907               
|Effect of Dilutive  Securities           |                          
|Options                                  | ---                      
|                                         |                          
|Diluted EPS                              |                          
|Income available to  common stockholders | $3,262,907               
|                                         |                          

NOTE 4. - STOCKHOLDERS' EQUITY

The following table presents the Bank's regulatory capital levels at December 31, 2005:

|                   | AmountRequired | PercentRequired | ActualAmount | ActualPercent | ExcessAmount
|------------------ | -------------- | --------------- | ------------ | ------------- | ------------
|Tangible Capital   | $ 6,273,000    | 1.50%           | $31,821,000  | 7.61%         | $25,548,000 
|Core Capital       | 16,728,000     | 4.00            | 31,821,000   | 7.61          | 15,093,000  
|Risk-based Capital | 26,325,000     | 8.00            | 35,633,000   | 10.83         | 9,308,000   

The primary source of funds for the payment of dividends to its stockholders are dividends from the Bank. Capital distributions by OTS-regulated savings banks, such as the Bank, 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 5. - SUPPLEMENTAL INFORMATION - STATEMENT OF CASH FLOWS

Total interest paid for the nine months ended December 31, 2005 and 2004 was $6,871,326 and $4,318,305, respectively. Total income taxes paid for the nine months ended December 31, 2005 and 2004 was $1,618,184 and $1,131,002.

NOTE 6. - 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 nine-month periods ended December 31, 2005 and 2004:

|                                                               | Nine months Ended December 31
|-------------------------------------------------------------- | -----------------------------
|                                                               | 2005                         
|(Amounts in thousands)                                         |                              
|Net income                                                     | $3,262,907                   
|Other comprehensive loss,  net of tax                          |                              
|Unrealized(losses)on securities:                               |                              
|Unrealized holding (losses)          arising during the period | 118,458                      
|                                                               |                              
|Total comprehensive income                                     | $3,381,365                   
|                                                               |                              

Note 7. - Defined Benefit Pension Plan

The Company has a non-contributory defined benefit pension plan for which the components of net periodic benefit cost are as follows:

|                               | Three months Ended December  
|------------------------------ | -----------------------------
|                               | 2005                         
|Service cost                   | $71,392                      
|Interest cost                  | 33,009                       
|Expected return on plan assets | (31,019)                     
|Recognized net actuarial loss  | 8,597                        
|                               |                              
|                               | $82,519                      
|                               |                              
|                               |                              
|                               |                              
|                               |                              
|                               |                              
|                               | Nine months Ended December 31
|                               | 2005                         
|Service cost                   | $215,795                     
|Interest cost                  | 99,028                       
|Expected return on plan assets | (93,058)                     
|Recognized net actuarial loss  | 25,790                       
|                               |                              
|                               | $247,555                     
|                               |                              

The Company made a contribution of $350,685 to its pension plan for the the current fiscal
year on January 31, 2006.

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

EXECUTIVE SUMMARY

The following information is intended to provide investors a better understanding of the financial position and the operating results of Community Financial Corporation and its subsidiary, Community Bank. The following is primarily from management's perspective and may not contain all information that is of importance to the reader. Accordingly, the information should be considered in the context of the consolidated financial statements and other related information contained herein.

Our operating results for the nine months ended December 31, 2005 were impacted primarily by changes in net interest income, which is the interest income we earn
on our interest-earning assets, such as loans and investment securities, and the interest we pay on interest-bearing liabilities, which are primarily deposits and borrowings. The change in net
interest income is impacted by both the change in our volume of interest earning assets and the interest rate spread between interest-earning assets and interest-bearing liabilities. The primary
factor contributing to the increase in net interest income for the nine month period ended December 31, 2005 has been the growth in interest-earning assets, primarily loans, which was offset by a
compressing interest rate spread. The increase in net income for the quarter ended December 31, 2005 is due primarily to a decrease in the provision for loan losses. The decrease in the loan loss
provision is attributable to both slower loan growth and excellent loan quality. Management is aware of the potential impact of rising interest rates on borrowers' ability to repay loans and will
monitor the Bank's loan portfolio for future changes. Both the decrease in the interest rate spread and the slower loan growth than previous quarters is due primarily to market loan pricing related
to the current market relationship between short-term and long-term interest rates. We also did not purchase any investment securities during the three and nine month periods ended December 31, 2005
and anticipate limited security purchases during the remainder of the current fiscal year. Management will continue to monitor asset growth to manage the level of regulatory capital and funds
acquisition. While the Company maintains an acceptable interest rate risk position, our interest rate spread has been compressed due to the current market relationship between short-term and
long-term interest rates. We continue to monitor the impact rising interest rates may have on both the growth in interest-earning assets and our interest rate spread. The Bank has approximately $144
million in adjustable rate loans or 41% of total loans which reprice in five years or less, many of which are subject to annual and lifetime interest rate limits. The pace and extent of future
interest rate changes will impact the Company's interest rate spread as well as limitations on interest rate adjustments on certain adjustable rate loans.

Funding for the growth in interest-earning assets combined with a rising interest rate environment has impacted the composition of the Company's interest-bearing
liabilities. During the fiscal year ended March 31, 2005, the primary source of funding for increases in assets was borrowings. The primary source of funding for increases in assets during the
December 31, 2005 quarter was borrowings due in part to the seasonal nature of checking account balances. The primary source of funding for the nine month period was deposits, which was due to our
being more competitive on deposit pricing in our market areas. Management plans to remain competitive in our deposit pricing and anticipates that deposit growth will be the primary source of funding
for asset growth during the remainder of the current fiscal year. As interest rates have increased, deposit balances in savings and money market accounts have decreased as customers have transferred
funds to time deposits or equities markets. Management is cognizant of the potential for additional compression in the Bank's margin related to the need to acquire funds and the pace of interest rate
changes. Management will continue to monitor the level of deposits and borrowings in relation to the current interest rate environment.

**CRITICAL ACCOUNTING POLICIES**

General

The Company's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (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. 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 No. 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.

The allowance for loan losses is maintained at a level considered by management to be adequate to absorb future loan losses currently inherent in the loan portfolio. Management's assessment of the adequacy of the allowance is based upon type and volume of the loan portfolio, past loan loss experience, existing and anticipated economic conditions, and other factors which deserve current recognition in estimating future loan losses. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. Additions to the allowance are charged to operations. Subsequent recoveries, if any, are credited to the allowance. Loans are charged-off partially or wholly at the time management determines collectibility is not probable. Management's assessment of the adequacy of the allowance is subject to evaluation and adjustment by the Company's regulators.

The allowance consists of specific, general and unallocated components. The specific component relates to loans that are classified as doubtful, substandard or special mention. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-classified loans and is based on historical loss experience adjusted for qualitative factors. An unallocated component is maintained to cover uncertainties that could affect management's estimate of probable losses.  The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio.

A loan is considered impaired when, based on current information and events, it is probable that the Corporation will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan's effective interest rate, the loan's obtainable market price, or the fair value of the collateral if the loan is collateral dependent.

Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Corporation does not separately identify individual consumer and residential loans for impairment disclosures, unless such loans are the subject of a restructuring agreement.

**FINANCIAL CONDITION**

The Company's total assets increased $17.9 million to $417.5 million at December 31, 2005 from $399.6 million at March 31, 2005 due to an increase in loans
receivable of $12.0 million. These increases were funded primarily with deposits which increased $12.6 million at December 31, 2005, from March 31, 2005. The increase in deposits was due primarily to
more competitive pricing by the Bank on time deposits and money market accounts. The increase in deposits was due to an increase in money market accounts of $4.4 million, time deposits of $14.1
million and checking accounts of $1.8 million which was partially offset by a decrease in savings accounts of $7.7 million. Stockholders' equity increased $3.0 million to $34.3 million at December
31, 2005, from $31.3 million at March 31, 2005, due to earnings for the nine month period ended December 31, 2005 and an increase in the net unrealized gain on securities available for sale offset by
three payments of $0.11 per share in cash dividends.

At December 31, 2005, non-performing assets totaled approximately $875,000 or .21% of assets compared to $548,000 or .14% of assets at March 31, 2005.
Non-performing assets at December 31, 2005 were comprised primarily of loans 90 days or more delinquent which totaled $694,000. At December 31, 2005, our allowance for loan losses to non-performing
loans was 429.4% and to total loans was .85%. Based on current market values of the properties securing these loans, management anticipates no significant losses in excess of the allowance for losses
previously recorded.

As of December 31, 2005, there were also 77 loans totaling $3.1 million 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 loan categories. As to amount, these loans are comprised primarily of commercial real estate loans. The largest individual loan in this category
had a balance of $1,580,000 at December 31, 2005 which is secured by commercial real estate. We are currently monitoring this loan which has never been delinquent due to a change in the company's
business plan. The next largest loan in this category is a residential loan of $205,000.

**LIQUIDITY AND CAPITAL RESOURCES**

Our principal sources of funds are customer deposits, advances from the Federal Home Loan Bank of Atlanta, amortization and prepayment of loans and funds
provided from operations. Management maintains investments in liquid assets based upon its assessment of (i) our need for funds, (ii) expected deposit flows, (iii) the yields available on short-term
liquid assets, (iv) the liquidity of our loan portfolio and (v) the objectives of our asset/liability management program. 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 December 31, 2005, the Bank's liquidity ratio (liquid assets
as a percentage of net withdrawable savings and current borrowings) was 6.7%.

At December 31, 2005, we had commitments to purchase or originate $17.5million of loans. Certificates of deposit scheduled to mature in one year or less at
December 31, 2005, totaled $101.9 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 December 31, 2005 and 2004.

General. Net income for the three months ended December 31, 2005 was $1.1 million compared to $940,000 for the three months ended December 31, 2004, an increase
of $120,000. Net interest income increased $26,000, and non-interest income increased $83,000 during the three months ended December 31, 2005 compared to the same period in 2004. Return on equity for
the three months ended December 31, 2005 was 12.59% compared to 12.35% for the three month period ended December 31, 2004. Return on assets was 1.03% for the quarter ended December 31, 2005 compared
to 1.01% for the same period in the previous fiscal year.

Interest Income. Total interest income increased by $1.1 million to $6.2 million for the three months ended December 31, 2005, from $5.1 million for the three
months ended December 31, 2004, due to both higher average loan balances, and higher yields for loans for the three months ended December 31, 2005 as compared to the period ended December 31, 2004.
The increase in yields was due to higher market interest rates generally. The average yield earned on interest-earning assets was 6.39% for the three months ended December 31, 2005 compared to 5.79%
for the three months ended December 31, 2004.

Interest Expense. Total interest expense increased by $1.1 million to $2.7 million for the quarter ended December 31, 2005, from $1.6 million for the quarter
ended December 31, 2004. Interest on deposits increased by $570,000 to $1.8 million for the quarter ended December 31, 2005 from $1.2 million for the quarter ended December 31, 2004 due to an
increase in the average rate paid and higher average deposit balances. Interest expense on borrowed money increased by $497,000 to $907,000 for the quarter ended December 31, 2005, from $410,000 for
the quarter ended December 31, 2004, due primarily to an increase in average borrowings and to a lesser extent an increase in the rate paid on borrowings. The average balance for borrowings increased
from $71.0 million for the December 31, 2004 quarter to $85.9 million for the December 31, 2005 period while the rate paid on borrowings increased from 2.29% to 4.19% for the same periods. The
average rate paid on interest-bearing liabilities was 2.86% during the three months ended December 31, 2005 compared to 1.90% for the three months ended December 31, 2004.

Provision for Loan Losses. The provision for loan losses decreased by $194,000 to $13,500 for the three months ended December 31, 2005, from $208,000 for the
three months ended December 31, 2004.  The decrease in the provision for loan losses is due to the Bank's satisfactory loan loss history and slower loan growth for the December 31, 2005 period
compared to the same period last year. We provide valuation allowances for anticipated losses on loans and real estate when management determines that a significant decline in the value of the
collateral or cash flows has occurred, as a result of which the value of the collateral or cash flows is less than the amount of the unpaid principal of the related loan plus estimated costs of
acquisition and sale. In addition, we also provide allowances based on the dollar amount and type of collateral securing our loans in order to protect against unanticipated losses. Although
management believes that it uses the best information available to make such determinations, future adjustments to allowances may be necessary, and net income could be significantly affected, if
circumstances differ substantially from the assumptions used in making the initial determinations.

Noninterest Income. Noninterest income increased by $83,000 to $742,000 for the three months ended December 31, 2005, from $658,000 for the three months ended
December 31, 2004 due to an increase in the utilization of bank services by existing customers, including additional ATM locations and loan fee and service charge income related to brokered loans.
Deposit transaction income was approximately $520,000 for the December 31, 2005 quarter compared to $468,000 for the 2004 quarter. Loan fee and service charge income was $122,000 for the current
quarter compared to $96,000 for the same quarter in 2004. The Bank has established relationships with other institutions where the Bank receives fees in return for completed customer mortgage loan
applications for the institution's approval and funding. We anticipate this relationship will continue to be a source of fee and service charge income for the Bank.

Noninterest Expense. Noninterest expense increased by $161,000 to $2.7 million for the three months ended December 31, 2005 compared to the same period last
year. The increase is attributable to compensation and benefits, which increased by $136,000 to $1.6 million compared to the same period last year.  The increase
in compensation and benefits resulted from the hiring of additional loan officers and loan support personnel.

Taxes. Taxes increased by $24,000 to $468,000 for the three months ended December 31, 2005, from $444,000 for the three months ended December 31, 2004. The
effective tax rate decreased from 32.1% for the December 31, 2004 quarter to 30.7% for the December 31, 2005 quarter due primarily to a one-time rehabilitation tax credit related to improvements to
the Bank's operation center.

Nine Months Ended December 31, 2005 and 2004

General. Net income for the nine months ended December 31, 2005 increased to $3.3 million compared to $2.9 million for the nine months ended December 31, 2004 due
primarily to an increase in net interest income. Income before income taxes increased to $4.8 million for the nine months ended December 31, 2005 from $4.2 million for the same period in the prior
year.  Return on equity for the nine months ended December 31, 2005 was 13.26% compared to 12.63% for the three month period ended December 31, 2004. Return
on assets was 1.07% for both the nine months ended December 31, 2005 and the same period in the previous fiscal year.

Interest Income. Total interest income increased to $18.0 million for the nine months ended December 31, 2005, from $14.6 million for the nine months ended December
31, 2004, due to both an increase in the average loan balances and an increase in the yield on loans during the period. The yield on loans and securities increased from 5.68% to 6.17% for the same
periods.

Interest Expense. Total interest expense increased by $2.9 million to $7.4 million for the nine months ended December 31, 2005, from the nine months ended December
31, 2004. Interest on deposits increased to $4.9 million for the nine months ended December 31, 2005, from $3.6 million for the same period last year due to both an increase in the average deposit
balances and the average rate on deposit balances. The rate paid on deposits increased from 1.80% for the nine months ended December 31, 2004 to 2.32% for the same period in the current fiscal year.
Interest expense on borrowed money increased to $2.4 million for the nine months ended December 31, 2005 from $844,000 for the nine months ended December 31, 2004, due to both an increase in the
average outstanding balance on borrowings and an increase in the average rate on borrowing balances. The average balance on borrowings increased from $62.3 million for the nine months ended December
31, 2004 to $86.9 million for the current nine month period. The average rate paid on borrowings increased from 1.81% for the nine months ended December 31, 2004 to 3.71% for the nine month period
ended December 31, 2005.

Provision for Loan Losses. The provision for loan losses decreased to $137,000 for the nine months ended December 31, 2005 from $498,000 for the same period last
year. The reason for the change in the provision for loan losses is the same as described above.

Noninterest Income. Noninterest income increased to $2.3 million for the nine months ended December 31, 2005, from $2.0 million for the nine months ended December
31, 2004, due primarily to an increase in loan fee and service charge income related to brokered loans as mentioned
above.  Loan fee and service charge income was $408,000 for the nine months ended December 31, 2005 compared to $271,000 for the same period in
2004.

Noninterest Expenses. Noninterest expenses increased $481,000 for the nine months ended December 31, 2005, compared to the same period last year.  The increase is attributable to compensation and benefits, which increased by $454,000 to $4.7 million compared to the same period last year.  The increase in compensation and benefits resulted primarily from the hiring of additional loan officers and loan support personnel.  Data processing expense decreased $106,000 due to reduced expenses related to assets becoming fully depreciated or amortized.

Taxes. Taxes increased to $1,511,000 for the nine months ended December 31, 2005, from $1,362,000 for the nine months ended December 31, 2004. The effective tax
rate decreased from 32.2% for the December 31, 2004 period to 31.6% for the same period ended December 31, 2005 due primarily to a one-time rehabilitation tax credit related to improvements to the
Bank's operation center.

RECENT ACCOUNTING PRONOUNCEMENTS

In November 2005, the Financial Accounting Standards Board (FASB) issued FASB Staff Position 115-1, "The Meaning of Other-Than-Temporary Impairment and Its
Application to Certain Investments" (FSP 115-1). The FSP addresses the determination as to when an investment is considered impaired, whether that impairment is other than temporary, and the
measurement of an impairment loss. FSP 115-1 also includes accounting considerations subsequent to the recognition of an other-than-temporary impairment and requires certain disclosures about
unrealized losses that have not been recognized as other-than-temporary impairments. The guidance in this FSP amends SFAS No. 115, "Accounting for Certain Investments in Debt and Equity Securities,"
and APB Opinion No. 18, "The Equity Method of Accounting for Investments in Common Stock". The FSP applies to investments in debt and equity securities and cost-method investments. The application
guidance within the FSP includes items to consider in determining whether an investment is impaired, evaluating if an impairment is other than temporary and recognizing impairment losses equal to the
difference between the investment's cost and its fair value when an impairment is determined. FSP 115-1 is required for all reporting periods beginning after December 15, 2005. Earlier application is
permitted. The Corporation does not anticipate the amendment will have a material effect on its financial statements.

In May 2005, the Financial Accounting Standards Board (FASB) issued Statement No. 154, "Accounting Changes and Error Corrections - A Replacement of APB
Opinion No. 20 and FASB Statement No. 3" (SFAS No. 154). The new standard changes the requirements for the accounting for and reporting of a change in accounting principle. Among other
changes, SFAS No. 154 requires that a voluntary change in accounting principle be applied retrospectively with all prior period financial statements presented on the new accounting principle,
unless it is impracticable to do so. SFAS No. 154 also provides that (1) a change in method of depreciating or amortizing a long-lived nonfinancial asset be accounted for as a change in
estimate (prospectively) that was effected by a change in accounting principle, and (2) correction of errors in previously issued financial statements should be termed a "restatement. " The new
standard is effective for accounting changes and corrections of errors made in fiscal years beginning after December 15, 2005. The Corporation does not anticipate this revision will have a
material effect on its financial statements.

In December 2004, FASB issued Statement No. 123 (Revised 2004), "Share-Based Payment" (SFAS No. 154), which requires that the compensation cost relating to
share-based payment transactions be recognized in financial statements. SFAS No. 123R replaces SFAS No. 123, "Accounting for Stock-Based Compensation," and supersedes APB Opinion No. 25, "Accounting
for Stock Issued to Employees." Share-based compensation arrangements include share options, restricted share plans, performance-based awards, share appreciation rights and employee share purchase
plans. SFAS No. 123R requires all share-based payments to employees to be valued using a fair value method on the date of grant and expensed based on that fair value over the applicable vesting
period. SFAS No. 123R also amends SFAS No. 95 "Statement of Cash Flows" requiring the benefits of tax deductions in excess of recognized compensation cost be reported as financing instead of
operating cash flows. The Securities and Exchange Commission (SEC) issued Staff Accounting Bulletin No. 107 (SAB No. 107), which expresses the SEC's views regarding the interaction between SFAS No.
123R and certain SEC rules and regulations. Additionally, SAB No. 107 provides guidance related to share-based payment transactions for public companies. The Corporation will be required to apply
SFAS No. 123R as of the annual reporting period that begins after September 15, 2005. The Corporation should quantify the impact on financial statements in the future and explain effects of
acceleration of vesting, if any.

In December 2003, the Accounting Standards Executive Committee of the American Institute of Certified Public Accountants issued Statement of Position 03-3,
"Accounting for Certain Loans or Debt Securities Acquired in a Transfer" (SOP 03-3). SOP 03-3 addresses accounting for differences between contractual cash flows and cash flows expected to be
collected from an investor's initial investment in loans or debt securities (loans) acquired in a transfer if those differences are attributable, at least in part, to credit quality. It includes
loans purchased by the Corporation or acquired in business combinations. SOP 03-3 does not apply to loans originated by the Corporation. The Corporation adopted the provisions of SOP 03-3 effective
January 1, 2005. The initial implementation had no 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 Community Financial Corporation on Form 10-K, Form 10-Q and Form
8-K and future oral and written statements by Community Financial Corporation and its management may contain, forward-looking statements about Community Financial Corporation 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, including revenue creation, lending origination, operating efficiencies, loan sales, charge-offs and loan loss provisions, growth opportunities, interest rates, acquisition and
divestiture opportunities, and synergies, efficiencies, cost savings and funding advantages. These forward-looking statements are based on currently available competitive, financial and economic data
and management's views and assumptions regarding future events. These forward-looking statements are inherently uncertain, and investors must recognize that actual results may differ from those
expressed or implied in the forward-looking statements. Accordingly, Community Financial Corporation cautions readers not to place undue reliance on any forward-looking statements.

Many of these forward-looking statements appear in this document in Management's Discussion and Analysis. Words such as may, could, should, would, believe,
anticipate, estimate, expect, intend, plan and similar expressions are intended to identify these forward-looking statements. The important factors discussed below, as well as other factors discussed
elsewhere in this document and factors identified in our filings with the Securities and Exchange Commission 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. Among the factors that could cause our actual results to differ from these forward-looking
statements are:

- the strength of the United States economy in general and the strength of the local economies in which we conduct
our operations; general economic conditions, either nationally or regionally, may be less favorable than expected, resulting in, among other things, a deterioration in the credit quality of our loans
and other assets;
- the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of
the Federal Reserve Board;
- financial market, monetary and interest rate fluctuations, particularly the relative relationship of short-term
interest rates to long-term interest rates;
- the timely development of and acceptance of new products and services of Community Financial Corporation and
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 impact of changes in financial services laws and regulations (including laws concerning taxes, accounting
standards, banking, securities and insurance); legislative or regulatory changes may adversely affect the business in which we are engaged;

- the impact of technological changes;
- changes in consumer spending and saving habits; and
- our success at managing the risks involved in the foregoing.

Item 3.   Quantitative and Qualitative Disclosures About Market Risk

There have been no material changes in market risk since March 31, 2005 year end. Market risk is discussed as part of management's discussion and analysis under
asset/liability management in the Company's annual report for March 31, 2005.

Item 4.   Controls and Procedures

An evaluation of the Company's disclosure controls and procedures (as defined in Rule 13a-15(e) of the Securities Exchange Act of 1934 (the "Act")) as of
December 31, 2005, was carried out under the supervision and with the participation of the Company's Chief Executive Officer, Chief Financial Officer and several other members of the Company's
senior management. The Company's Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures currently in effect are effective in ensuring that
the information required to be disclosed by the Company in the reports it files or submits under the Act is: (i) accumulated and communicated to the Company's management (including the Chief
Executive Officer and Chief Financial Officer) in a timely manner and (ii) recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms. In addition,
there have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) of the Act) that occurred during the quarter ended December 31, 2005, that has materially
affected, or is reasonably likely to materially affect, our internal control over financial reporting.

The Company does not expect that its disclosure controls and procedures and internal control over financial reporting will prevent all error and all fraud. A
control procedure, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control procedure are met. Because of the inherent
limitations in all control procedures, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These
inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls may be
circumvented by the individual acts of some persons, by collusion of two or more people, or by override of the control. The design of any control procedure also is based in part upon certain
assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, controls
may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control
procedure, misstatements due to error or fraud may occur and not be detected.

Section 404 of the Sarbanes-Oxley Act of 2002 requires that companies evaluate and annually report on their systems of internal control over financial reporting.
In addition, our independent accountants must report on management's evaluation. We are in the process of evaluating, documenting and testing our system of internal control over financial reporting
to provide the basis for our report that will, for the first time, be a required part of our annual report on Form 10-K for the fiscal year ending March 31, 2008. Due to the ongoing evaluation and
testing of our internal controls, there can be no assurance that if any control deficiencies are identified they will be remediated before the end of the 2007 fiscal year, or that there will not be
significant deficiencies or material weaknesses that would be required to be reported.

PART II. OTHER INFORMATION

|Item 1. | Legal Proceedings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|        | Not Applicable.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|        | 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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|        | On January 25, 2006, the employment and severance agreements, as amended, between Community Bank, a wholly-owned subsidiary of Community Financial Corporation, and its named executive officers
were further amended, as follows:

Mr. Richard's employment agreement was amended to extend the time frame for determining involuntary termination of employment following a change of control from 12 to months to 24 months.

Mr. Kyriakides' employment agreement was amended to reflect his current position and responsibilities with the Bank.

The severance agreements with Messrs. Giles and Smiley were amended to reflect their current positions and responsibilities with the Bank, to extend the time frame for determining involuntary
termination of employment following a change of control from 12 to months to 24 months, and to increase the amount payable to the executive in connection with an involuntary termination of his
employment in connection with a change of control from 18 to 24 months of his then current salary.

The severance agreement with Mr. Werner was amended to extend the time frame for determining involuntary termination of employment following a change of control from 12 to months to 24 months, and
to increase the amount payable to the executive in connection an involuntary termination of his employment in connection with a change of control from 18 to 24 months of his then current salary.
|Item 6. | Exhibits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|        | See Exhibit Index                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

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: February 13, 2006 | By:                            

|EXHIBIT INDEX  |                                                                                                                                                                                                                                                                                                                                   
|-------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit Number | Document                                                                                                                                                                                                                                                                                                                          
|3.1            | Amended and Restated Articles of Incorporation, filed on July 5, 1996 as an exhibit to the Registrant's Definitive Proxy Statement on Schedule 14A (SEC File No.
000-18265), are incorporated herein by reference.                                                                                                                
|3.2            | Bylaws, as amended and currently in effect, filed on September 29, 2005 as an exhibit to the Registrant's Annual Report on form 10-K (SEC File No. 000-18265)
for the fiscal year ended March 31, 2005, are incorporated herein by reference.                                                                                     
|4              | Registrant's Specimen Common Stock Certificate, filed on September 29, 1999, as Exhibit 10 to the Annual Report on Form 10-KSB (SEC File No. 000-18265) for the
fiscal year ended March 31, 1999, is incorporated herein by reference.                                                                                            
|10.1           | Registrant's Stock Option and Incentive Plan, filed on May 19, 1989 as an exhibit to the Registrant's Registration Statement on Form S-4 (SEC File No.
33-28817), is incorporated herein by reference.                                                                                                                            
|10.2           | Employment Agreement by and between Community Bank and P. Douglas Richard, filed on November 14, 2000 as an exhibit to the Registrant's Quarterly Report on Form
10-QSB (SEC File No. 000-18265) for the quarter ended September 30, 2000, is incorporated herein by reference.                                                   
|10.3           | Amendments No. One and Two to the Employment Agreement between the Bank and P. Douglas Richard, filed on August 14, 2002 as exhibits to the Registrant's
Quarterly Report on Form 10-QSB (SEC File No. 000-18265) for the quarter ended June 30, 2002, are incorporated herein by reference.                                      
|10.4           | Registrant's 1996 Incentive Plan, filed on July 5, 1996 as an exhibit to the Registrant's Definitive Proxy Statement on Schedule 14A (SEC File No. 000-18265),
is incorporated herein by reference.                                                                                                                               
|10.5           | Employment Agreement by and between Community Bank and Chris P. Kyriakides, as amended, filed on August 14, 2002 as an exhibit to the Registrant's Quarterly
Report on Form 10-QSB (SEC File No. 000-18265) for the quarter ended June 30, 2002, is incorporated herein by reference.                                             
|10.6           | Severance Agreements by and between Community Bank and each of R. Jerry Giles, Norman C. Smiley, Benny N. Werner, filed on June 30, 2003 as exhibits to the
Registrant's Annual Report on Form 10-KSB (SEC File No. 000-18265) for the fiscal year ended March 31, 2003, are incorporated herein by reference.                    
|10.7           | Amendments to the Severance Agreements by and between the Bank and each of R. Jerry Giles, Norman C. Smiley, III and Benny N. Werner, filed on June 30,
2005 as an exhibit to the Registrant's Annual Report on form 10-K (SEC File No. 000-18265) for the fiscal year ended March 31, 2005, are incorporated herein by reference.

|10.8  | Retirement Agreements by and between Community Bank and Non-Employee Directors Hickok, Smith, Andersen, Cooke, Fairchilds and Trimyer, filed on June 29,
2004 as an exhibit to the Registrant's Annual Report on form 10-KSB (SEC File No. 000-18265) for the fiscal year ended March 31, 2004, are incorporated herein by reference.
|----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|10.9  | Form of First Amendment to the Retirement Agreements by and between Community Bank and Non-Employee Directors filed on June 30, 2005 as an exhibit to the
Registrant's Annual Report on form 10-K (SEC File No. 000-18265) for the fiscal year ended March 31, 2005, are incorporated herein by reference.                           
|10.10 | Salary Continuance Agreements by and between Community Bank and Officers Richard, Kyriakides, Giles, Smiley and Werner filed on June 29, 2004 as an exhibit
to the Registrant's Annual Report on Form 10-KSB (SEC File No. 000-18265) for the fiscal year ended March 31, 2004, and incorporated here by reference.                  
|10.11 | Form of Director Deferred Fee Agreement, as amended, filed on June 29, 2005 as an exhibit to the Registrant's Annual Report on form 10-K (SEC File No.
000-18265) for the fiscal year ended March 31, 2005, are incorporated herein by reference.                                                                                    
|10.12 | Registrant's 2003 Stock Option and Incentive Plan, filed on June 27, 2003 as an exhibit to the Registrant's Definitive Proxy Statement on Schedule 14A (SEC File
No. 000-18265), is incorporated herein by reference.                                                                                                                
|10.13 | Form of Incentive Stock Option Agreement and Non-Qualified Stock Option Agreement for Registrant's 2003 Stock Option and Incentive Plan, Filed on August 12, 2005
as an exhibit to the Registrant's Quarterly Report on form 10-Q (SEC File No. 000-18265) for the quarter ended June 30, 2005, are incorporated herein by reference.
|10.14 | Amendment No. Three to the Employment Agreement by and between Community Bank and P. Douglas Richard.                                                                                                                                                                                                                                
|10.15 | Amendment No. Two to the Employment Agreement by and between Community Bank and Chris P. Kyriakides.                                                                                                                                                                                                                                 
|10.16 | Amendment No. Two to the Severance Agreements by and between Community Bank and each of Jerry R. Giles, Norman C. Smiley, III and Benny N. Werner.                                                                                                                                                                                   
|11    | Statement re computation of per share earnings (see footnote 3 to the financial statements filed with this report).                                                                                                                                                                                                                  
|31.1  | Rule 13(a)-14(a) Certification (Chief Executive Officer)                                                                                                                                                                                                                                                                             
|31.2  | Rule 13(a)-14(a) Certification (Chief Financial Officer)                                                                                                                                                                                                                                                                             
|32    | Section 1350 Certifications