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

                                                                    FORM 10-QSB

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

                  FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1999

                                       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

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


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


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


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


Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Securities  Exchange  Act of 1934  during the  preceding  12
months (or for such  shorter  period  that the issuer was  required to file such
reports),  and (2) has been subject to such filing  requirements for the past 90
days.

              Yes    X               No

Number of shares of Common Stock,  par value $.01 per share,  outstanding at the
close of business on August 2, 1999: 2,572,146.

Transitional Small Business Disclosure Format (Check one)

              Yes                    No    X

<PAGE>


                         COMMUNITY FINANCIAL CORPORATION


                                      INDEX



PART I.  FINANCIAL INFORMATION PAGE

Item 1.  Financial Statements


         Consolidated Statements of Financial
         Condition at June 30, 1999 (unaudited)
         and March 31, 1999.............................................1

         Consolidated Statements of Income for the
         Three Months Ended June 30, 1999 and 1998 (unaudited)..........2

         Consolidated Statements of Cash Flows for the
         Three Months Ended June 30, 1999 and
         1998 (unaudited)...............................................3

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

Item 2.  Management's Discussion and Analysis of Financial
         Condition and Results of Operations............................5


PART II. OTHER INFORMATION..............................................8



<PAGE>
                         COMMUNITY FINANCIAL CORPORATION
                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
                                       June 30,        March 31,
                                         1999            1999
                                     ------------    -------------
                                              (Unaudited)
<S>                                  <C>              <C>
ASSETS
Cash (including interest bearing
  deposits of approximately
  $1,214,000 and $6,407,000)         $  7,019,843     $ 10,131,157
Securities
  Held to maturity                     11,076,515        5,561,314
  Available for sale                    3,056,328        3,543,092
Investment in Federal Home Loan
  Bank stock, at cost                   1,350,000        1,508,200
Loans receivable, net                 173,049,042      171,413,721
Real estate owned                         237,907          351,733
Property and equipment, net             6,359,567        6,050,785
Accrued interest receivable
  Loans                                 1,058,639        1,056,833
  Investments                             171,580          107,912
Prepaid expenses and other assets       1,297,476        1,085,272

        Total Assets                 $204,676,897     $200,810,019
                                     ============     ============

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities
Deposits                             $149,033,019     $153,015,076
Advances from Federal Home Loan
  Bank                                 27,000,000       19,000,000
Advance payments by borrowers for
  taxes and insurance                     101,738          190,421
Other liabilities                       2,065,107        2,220,794
                                     ------------     ------------

        Total Liabilities             178,199,864      174,426,291
                                     ------------     ------------

Stockholders' Equity
  Preferred stock $.01 par value,
    authorized 3,000,000 shares,
    none outstanding
  Common stock, $.01 par value,
    authorized 10,000,000 shares,
    2,572,146 shares outstanding           25,721           25,721
  Additional paid in capital            4,897,207        4,897,207
  Retained earnings                    19,700,914       19,395,509
  Net unrealized gain on securities
    available for sale                  1,853,191        2,065,291
     Total Stockholders' Equity        26,477,033       26,383,728
                                     ------------     ------------
        Total Liabilities and
          Shareholders' Equity       $204,676,897     $200,810,019
                                     ============     ============
</TABLE>

     See accompanying notes to consolidated financial statements.


<PAGE>


                         COMMUNITY FINANCIAL CORPORATION
                        CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
                                          Three Months Ended
                                                June 30,
                                  ------------------------------------
                                      1999                     1998
                                  ------------             ------------
                                               (Unaudited)
<S>                               <C>                     <C>

INTEREST INCOME
  Loans                           $3,464,189              $3,434,030
  Investment securities              126,587                  66,967
  Other                               40,567                  50,360
                                  ----------              ----------
    Total interest income          3,631,343               3,551,357
                                  ----------              ----------

INTEREST EXPENSE
  Deposits                         1,573,295               1,538,624
  Borrowed money                     286,443                 276,405
    Total interest expense         1,859,738               1,815,029
                                  ----------              ----------

NET INTEREST INCOME                1,771,605               1,736,328


PROVISION FOR LOAN LOSSES             69,000                  75,000
                                  ----------              ----------

NET INTEREST INCOME AFTER
 PROVISION FOR LOAN LOSSES         1,702,605               1,661,328
                                  ----------              ----------

NONINTEREST INCOME
  Service charges, fees
    and commissions                  537,961                 295,264
  Gain on sale of securities         550,206                  99,174
  Miscellaneous                           10                     810
                                  ----------              ----------
    Total noninterest
      income                       1,088,177                 395,248
                                  ----------              ----------

NONINTEREST EXPENSE
  Compensation & benefits          1,085,472                 616,784
  Occupancy                          268,334                 149,970
  Data processing                    112,314                 113,469
  Federal insurance premium           21,299                  20,359
  Miscellaneous                      436,691                 276,226
                                  ----------              ----------
    Total noninterest
      expense                      1,924,110               1,173,808
                                  ----------              ----------

INCOME BEFORE TAXES                  866,672                 882,768

INCOME TAXES                         355,496                 376,408
                                  ----------              ----------

NET INCOME                        $  511,176              $  506,360
                                  ==========              ==========

BASIC EARNINGS PER SHARE          $    0.20               $    0.20
DILUTED EARNINGS PER SHARE             0.20               $    0.19
DIVIDENDS PER SHARE               $    0.08               $    0.07

</TABLE>

     See accompanying notes to consolidated financial statements.



<PAGE>
                         COMMUNITY FINANCIAL CORPORATION
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
                                                 Three Months Ended
                                                      June 30,
                                              ---------------------------
                                                  1999           1998
                                              -----------     -----------
                                                     (Unaudited)
<S>                                            <C>              <C>
OPERATING ACTIVITIES
  Net income                                   $511,176        $506,360
  Adjustments to reconcile net income to
   net cash provided by operating activities
     Provision for loan losses                   69,000          75,000
     Depreciation                               135,218          68,576
     Amortization of premium and accretion
       of discount on securities, net              (126)           (580)
     (Decrease)increase in net deferred
       loan fees                                  8,416         (17,475)
     Increase in deferred income taxes           27,911           5,718
     Decrease (increase) in other assets       (277,678)        (99,305)
     Increase (decrease) in other liabilities    81,269          44,544
     (Gain)loss on sale of loans               (233,563)        (11,164)
     Proceeds from sale of loans             15,645,582       7,148,350
     Loans originated for resale            (16,154,104)     (7,187,850)
     Gain on sale of available for sale
       securities                              (550,206)        (99,174)
                                            ------------     -----------
   Net cash provided(absorbed) by operating
       activities                              (737,105)        433,000
                                            ------------     ----------

INVESTING ACTIVITIES
  Proceeds from maturities of held to
    maturity securities                          250,000        250,000
  Proceeds from sale of available for
    sale securities                              560,003        101,187
  Purchases of investment securities          (5,750,000)           ---
  Net decrease (increase) in loans            (1,074,409)        73,063
  Purchases of property and equipment           (444,000)      (296,289)
  Redemption (purchase) of FHLB stock            158,200            ---
  (Increase) decrease in Real Estate Owned       113,826       (123,852)
                                              ----------       ---------
    Net cash provided (absorbed) by
      investing activities                    (6,186,380)         4,109
                                              -----------      --------

FINANCING ACTIVITIES
  Dividends paid                                (205,772)      (179,231)
  Net (decrease) in deposits                  (3,982,057)    (1,005,513)
  Proceeds from advances and other
   borrowed money                             25,000,000      4,000,000
  Repayments of advances and other
   borrowed money                            (17,000,000)    (4,000,000)
  Proceeds from issuance of common stock             ---         91,500
Net cash provided (absorbed) by
  financing activities                         3,812,171     (1,093,244)
                                              ----------     -----------
INCREASE (DECREASE) IN CASH AND CASH
  EQUIVALENTS                                 (3,111,314)      (656,135)
CASH AND CASH EQUIVALENTS-beginning of period 10,131,157      7,266,145
CASH AND CASH EQUIVALENTS-end of period       $7,019,843     $6,610,010

</TABLE>

     See accompanying notes to consolidated financial statements.


<PAGE>


                         COMMUNITY FINANCIAL CORPORATION
          NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 1999

NOTE 1. - BASIS OF PRESENTATION

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

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

     In the  opinion  of  management,  all  adjustments  (consisting  of  normal
recurring  accruals)  considered  necessary  for  fair  presentation  have  been
included.  Operating  results for the three months ended June 30, 1999,  are not
necessarily  indicative  of the results that may be expected for the year ending
March 31, 2000.

NOTE 2. - EARNINGS PER SHARE

     Basic  earnings  per share is based on net income  divided by the  weighted
average number of common shares outstanding during the period.  Diluted earnings
per share shows the dilutive  effect of additional  common shares issuable under
stock option plans. Basic earnings per share for the three months ended June 30,
1999 and 1998  have been  determined  by  dividing  net  income by the  weighted
average  number of  shares of common  stock  outstanding  during  these  periods
(2,572,146 and 2,564,495,  respectively). The number of shares used to determine
diluted  earnings per share for the same  three-month  periods was 2,572,146 and
2,610,156, respectively.


<PAGE>


NOTE 3. - STOCKHOLDERS' EQUITY

     The following  table  presents the Bank's  capital  levels at June 30, 1999
relative to the requirements applicable under the Financial Institutions Reform,
Recovery and Enforcement Act of 1989 ('FIRREA'):

<TABLE>
                      Amount     Percent    Actual      Actual      Excess
                     Required   Required    Amount      Percent     Amount
                   ----------   ---------  ---------    -------   -----------

<S>                <C>          <C>       <C>           <C>       <C>

Tangible Capital  $ 3,066,000   1.50%     $24,026,000   11.75%    $20,960,000
Core Capital        8,177,000   4.00       24,026,000   11.75      15,849,000
Risk-based Capital 12,768,000   8.00       25,267,000   15.83      12,499,000

</TABLE>



<PAGE>

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

NOTE 4. - SUPPLEMENTAL INFORMATION - STATEMENT OF CASH FLOWS

     Total  interest  paid for the three months ended June 30, 1999 and 1998 was
$1,865,810 and $1,822,582,  respectively. Income taxes paid for the three months
ended June 30, 1999 and 1998 were $425,971 and none, respectively.

NOTE 5. - COMPREHENSIVE INCOME

     FASB Statement No. 130, " Reporting  Comprehensive  Income",  effective for
fiscal years  beginning on or after January 1, 1998,  establishes  standards for
reporting and displaying comprehensive income and its components.  Comprehensive
income is defined as "the change in equity (net assets) of a business enterprise
during a period  from  transactions  and other  events  and  circumstances  from
non-owner  sources.  It includes  all changes in equity  during a period  except
those  resulting  from  investments  by owners  and  distributions  to  owners."
Comprehensive  income for the Bank includes net income and unrealized  gains and
losses on  securities  available for sale.  The  following  tables set forth the
components of comprehensive  income for the three-months ended June 30, 1999 and
1998:


<PAGE>


                                               Three Months Ended June 30
                                             --------------------------------
                                               1999                   1998
                                             ---------              ---------
                                                   (Amounts in thousands)

Net income                                    $ 511,176             $ 506,360
Other comprehensive income,
  net of tax
    Unrealized gains on securities:
      Unrealized holding gains(losses)
        arising during the period                13,932               (17,512)

      Less: Reclassification
        adjustment for gains(losses)
        included in net income                 (341,128)              (57,521)
                                              ---------             ---------
                                              $ 183,980             $ 431,327
                                              =========             =========




<PAGE>

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

FINANCIAL CONDITION

     The Company's total assets increased $3.9 million to $204.7 million at June
30, 1999,  due primarily to an increase in  securities  held to maturity of $5.5
million which was funded with cash and cash equivalents and additional  advances
from the FHLB of Atlanta.  Deposits  decreased $4.0 million to $149.0 million at
June 30, 1999,  from $153.0  million at March 31, 1999. The decrease in deposits
was due primarily to increased rate  competition on  certificates  of deposit by
other financial institutions. Stockholders' equity increased to $26.5 million at
June 30, 1999,  from $26.4 million at March 31, 1999,  due primarily to earnings
for the three month period ended June 30, 1999,  which was partially offset by a
payment  of  $0.08  per  share  in  cash  dividends  and a  decrease  in the net
unrealized gain on securities available for sale.

     At June 30, 1999,  non-performing assets totaled approximately $2.0 million
or 1.00% of assets compared to $1.5 million or .76% of assets at March 31, 1999.
At June 30, 1999 our non-performing assets were comprised of seven single family
rental properties,  eight single family residential  properties,  one multi-unit
apartment  building and one  construction  loan.  Real estate  acquired  through
foreclosure  included in nonperforming assets totaled $213,000 and was comprised
of three single-family  residential properties. In addition to the nonperforming
loans,   at  June  30,  1999,  we  had  other  loans  of  concern  that  totaled
approximately  $5.3  million.  Included  in these loans was one real estate loan
with a balance of $1.3  million,  secured  primarily  by  commercial  and rental
property  and a second  commercial  real estate loan with a balance of $900,000,
both of which were  current at June 30,  1999,  but are being  monitored  due to
prior  delinquencies.  The remaining loans of concern were two commercial  loans
and various  residential  real estate loans. At June 30, 1999, our allowance for
loan losses to non-performing assets was 63% and to total assets was .63%.

     We maintain an allowance for loan losses to provide for estimated potential
losses in our loan portfolio.  Management determines the level of reserves based
on  loan  performance,  the  value  of  the  collateral,   economic  and  market
conditions,  and  previous  experience.  Management  reviews the adequacy of the
allowance  at least  quarterly,  utilizing  its  internal  loan  classifications
system.  Management  believes that the loan loss reserve is adequate at June 30,
1999.  Although  management  believes  it uses the best  information  available,
future adjustments to reserves may be necessary.

<PAGE>

LIQUIDITY

     Historically,  the Bank has  maintained its liquid assets above the minimum
requirements  imposed by federal regulations and at a level believed adequate to
meet  requirements  of normal daily  activities,  repayment of maturing debt and
potential  deposit  outflows.  Cash flow projections are regularly  reviewed and
updated to assure that adequate liquidity is provided.  As of June 30, 1999, the
Bank's  liquidity  ratio  (liquid  assets as a  percentage  of net  withdrawable
savings  and  current  borrowings)  was 13.13%,  which  exceeds  the  regulatory
requirement.

RESULTS OF OPERATIONS

Three Months Ended June 30, 1999 and 1998.
----------------------------------------------

     General.  Net income for the three  months ended June 30, 1999 was $511,000
compared to $506,000  for the three  months  ended June 30,  1998.  Net interest
income increased  slightly while  non-interest  income increased $693,000 during
the three  months  ended June 30,  1999  compared to the same period in 1998 and
non-interest  expense increased  $750,000 during the same period.  Income before
taxes  decreased  to  $867,000  for the three  months  ended June 30,  1999 from
$883,000 for the three months ended June 30, 1998.

     Interest  Income.  Total interest income  increased to $3.6 million for the
three months  ended June 30, 1999,  from $3.5 million for the three months ended
June 30, 1998, due to an increase in the average balance of investmentsecurities
for the three  months  ended June 30, 1999 as compared to the period  ended June
30,1998.  The average yield earned on interest-earning  assets was 7.83% for the
three  months  ended June 30, 1999  compared to 8.22% for the three months ended
June 30, 1998.

     Interest Expense.  Total interest expense increased to $1.9 million for the
quarter  ended June 30, 1999,  from $1.8 million for the quarter  ended June 30,
1998.  Interest on deposits increased to $1.6 million for the quarter ended June
30, 1999 from $1.5 million for the quarter  ended June 30, 1998 due primarily to
an  increase  in  average  outstanding  deposit  balances.  Interest  expense on
borrowed money  increased to $286,000 for the quarter ended June 30, 1999,  from
$276,000  for the  quarter  ended June 30,  1998,  due to an increase in average
outstanding  borrowings.  The average rate paid on interest-bearing  liabilities
was 4.37% during the three months ended June 30, 1999  compared to 4.69% for the
three months ended June 30, 1998.

<PAGE>

     Provision  for Loan  Losses.  The  provision  for loan losses  decreased to
$69,000 for the three  months  ended June 30,  1999,  from $75,000 for the three
months  ended June 30, 1998 due to slower loan growth  related to mortgage  loan
refinancings  and  management's  assessment  of the  inherent  risk in the  loan
portfolio .

     Noninterest  Income.  Noninterest  income increased to $1.1 million for the
three months ended June 30, 1999,  from $395,000 for the three months ended June
30,  1998 due  primarily  to gains  realized  on the sale of  securities  and an
increase in fees and gains on the sale of mortgage loans in the secondary market
by our subsidiary,  Community First Mortgage Corporation.  Noninterest Expenses.
Noninterest  expense  increased  to $1.9 million for the three months ended June
30,  1999,  from $1.2  million for the three  months  ended June 30,  1998.  The
increase in  noninterest  expense is  primarily  attributable  to an increase in
compensation related to an increase in the number of employees.

     Taxes.  Taxes  decreased  to $355,000  for the three  months ended June 30,
1998, from $376,000 for the three months ended June 30, 1998.

YEAR 2000 ISSUES

      The approaching millennium is causing organizations of all types to review
their computer  systems for the ability to properly  accommodate  the year 2000.
When computer  systems were first  developed,  two digits were used to designate
the year in date calculations and "19" was assumed for the century. As a result,
there is significant concern about the integrity of date sensitive  calculations
when the calendar rolls over to January 1, 2000. An older system could interpret
01/01/00  as January 1, 1900  potentially  causing  major  problems  calculating
information related to interest,  principal payments,  delinquencies or maturity
dates and/or  amounts.  An internal  committee  comprised of senior officers and
management  has been  formed to address  the  potential  risk that the year 2000
poses for Community Bank. This committee  reports to the full board of directors
quarterly or more often as warranted.

<PAGE>

      Financial institution  regulators recently have increased their focus upon
year  2000   compliance   issues  and  have  issued   guidance   concerning  the
responsibilities  of senior  management  and  directors.  The Federal  Financial
Institutions  Examination Council has issued several  interagency  statements on
Year 2000 Project  Management  Awareness.  These  statements  require  financial
institutions to, among other things, examine the year 2000 issue with respect to
their  customers,  suppliers and borrowers.  These  statements also require each
federally insured financial institution to survey its exposure, measure its risk
and  prepare a plan to address  the year 2000 issue.  In  addition,  the federal
banking regulators have issued safety and soundness guidelines to be followed by
insured depository institutions to assure resolution of any year 2000 problems.

     Accurate  data  processing  is  essential to our  operations  and a lack of
accurate processing by our vendors or us could have a significant adverse impact
on our  financial  condition  and  results of  operations.  We believe  that our
in-house data processing  operations will function properly on and after January
1, 2000. A contingency  plan,  however,  has been developed by Community Bank in
the unlikely event that our data processing  operations do not function properly
on or after  January 1, 2000.  This plan focuses on  conducting  operations in a
manual mode, including the recording of transactions on spreadsheets.

     We have  also  received  year  2000  updates  from  most  of our  material,
non-information system providers, including but not limited to security cameras,
credit card and ATM card processors, the vault alarm, check printers,  telephone
systems,  participation  loan servicers,  and  institutions we invest through or
with.  Based on these updates,  we do not anticipate any  significant  year 2000
issues. Our future expense to be year 2000 compliant is immaterial.

     In addition to expenses  related to our own systems,  we could incur losses
if loan  payments  are delayed due to year 2000  problems  affecting  any of our
significant borrowers or impairing the payroll systems of large employees in our
market  area.  We have been  communicating  with our  vendors  to  assess  their
progress in evaluating their systems and  implementing  any corrective  measures
required by them to be prepared for the year 2000.  We have been advised by such
parties  that  they  have  plans in place to  address  and  correct  the  issues
associated with the year 2000 problem;  however, no assurance can be given as to
the adequacy of these plans or to the timeliness of their implementation.  We do
consider the year 2000 issue as part of our underwriting criteria.

<PAGE>

Forward-Looking Statements

     This  Quarterly  Report on Form  10-QSB  contains  certain  forward-looking
statements  with respect to our financial  condition,  results of operations and
business.   These   forward-looking   statements   involve   certain  risks  and
uncertainties.  When  used in this  Quarterly  Report  on Form  10-QSB or future
filings by us with the Securities and Exchange Commission, in our press releases
or other public or shareholder  communications,  or in oral statements made with
the approval of an  authorized  executive  officer,  the words or phrases  "will
likely  result",   "are  expected  to",  "will  continue",   "is   anticipated",
"estimate", "project", "believe" or similar expressions are intended to identify
"forward-looking  statements"  within  the  meaning  of the  Private  Securities
Litigation  Reform Act of 1995.  We wish to caution  readers  not to place undue
reliance on any such forward-looking statements, which speak only as of the date
made, and to advise readers that various factors including regional and national
economic conditions, changes in levels of market interest rates, credit risks of
lending  activities,  and  competitive  and regulatory  factors could affect our
financial  performance  and could cause our actual results for future periods to
differ materially from those anticipated or projected.

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


<PAGE>
                           PART II. OTHER INFORMATION


Item 1.  Legal Proceedings

         Not Applicable.

Item 2.  Changes in Securities

         Not Applicable.

Item 3.  Defaults Upon Senior Securities

         Not Applicable.

Item 4.  Submission of Matters to a Vote of Security Holders

         Not Applicable.

Item 5.  Other Information

         Not Applicable.

Item 6.  Exhibits and Reports on Form 8-K

         a.  Exhibits

             See Exhibit Index.

         b.  Reports on Form 8k

             None to be reported.


<PAGE>


                                   SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


                                   COMMUNITY FINANCIAL CORPORATION

Date: August 7, 1999
                                   By: /s/ R. Jerry Giles
                                       -------------------------------
                                        R. Jerry Giles
                                        Chief Financial Officer
                                        (Duly Authorized Officer


<PAGE>


                                  EXHIBIT INDEX

Exhibit No.            Description


11                     Computation of Per Share Data

27                     Financial Data Schedule.