UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, DC  20549


                                  FORM 10-Q


              QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934



                       FOR THE QUARTER ENDED JUNE 30, 1998



                         Commission File No. 33-12756-B




                             COMMUNITY BANCORP, INC.
                           A Massachusetts Corporation
                   IRS Employer Identification No. 04-2841993
                  17 Pope Street, Hudson, Massachusetts  01749
                           Telephone - (978) 568-8321




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   X          No
                             ---             ---




                               Common Stock
                             $2.50 par value
                       2,944,588 shares outstanding
                           as of July 31, 1998

<PAGE>
<TABLE>

                      PART I - FINANCIAL INFORMATION

                             COMMUNITY BANCORP, INC.
Item 1.                    CONSOLIDATED BALANCE SHEETS
<CAPTION>

                                                 June 30,      December 31,
                                                   1998            1997
                                              ------------    ------------
<S>                                           <C>             <C>
ASSETS
Cash and due from banks                       $ 15,433,367    $ 16,704,667
Federal funds sold                              27,500,000      14,600,000
Securities available for sale, at market        32,618,632      38,880,166
Securities held to maturity (market value
  $73,609,454 at 6/30/98 and $56,404,323
  at 12/31/97)                                  73,245,552      56,304,224
Mortgage loans held for sale                     2,227,986       2,173,322

Loans                                          135,467,862     139,839,853
Less allowance for possible loan losses          3,125,204       3,215,559
                                               -----------     -----------
       Total net loans                         132,342,658     136,624,294

Premises and equipment, net                      4,771,593       4,637,965
Other assets, net                                3,479,564       3,625,889
                                               -----------     -----------
                Total assets                  $291,619,352    $273,550,527
                                               ===========     ===========

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
 Deposits
   Noninterest bearing                        $ 58,211,021    $ 55,678,794
   Interest bearing                            184,757,920     177,109,740
                                               -----------     -----------
       Total deposits                          242,968,941     232,788,534

 Federal funds purchased and securities
   sold under repurchase agreements             22,849,432      16,637,064
 Other liabilities                               1,679,260       1,688,830
                                               -----------     -----------
            Total liabilities                  267,497,633     251,114,428

Stockholders' equity:
 Preferred stock, $2.50 par value, 100,000
   shares authorized, none issued or outstanding
 Common stock, $2.50 par value, 12,000,000
   shares authorized, 3,199,218 shares issued,
   2,944,588 share outstanding, (2,926,257
   shares outstanding at 12/31/97)               7,998,045       7,998,045
 Surplus                                           524,106         414,120
 Undivided profits                              17,864,737      16,418,790
 Treasury stock, at cost, 254,630 shares,
   (272,961 shares at 12/31/97)                 (2,364,573)     (2,529,552)
 Accumulated other comprehensive income             99,404         134,696
            Total stockholders' equity          24,121,719      22,436,099
                                               -----------     -----------
                Total liabilities and
                    stockholders' equity      $291,619,352    $273,550,527
                                               ===========     ===========
<FN>
                            See accompanying notes.
</TABLE>

                                    -2-
<PAGE>
<TABLE>

                            COMMUNITY BANCORP, INC.
                       CONSOLIDATED STATEMENTS OF INCOME
<CAPTION>
                                   Three months ended       Six months ended
                                         June 30,               June 30, 
                                  ---------------------  ---------------------
                                     1998       1997        1998       1997
                                  ---------- ----------  ---------- ----------
<S>                               <C>        <C>         <C>        <C>
Interest income:
 Interest and fees on loans       $3,270,641 $3,256,817  $6,617,533 $6,352,283
 Interest and div. on securities:
  Taxable interest                 1,368,854  1,310,265   2,646,613  2,609,664
  Nontaxable interest                119,728     75,617     214,695    138,616
  Dividends                           15,247     13,655      31,917     28,732
 Interest on federal funds sold      265,544     69,520     450,435    156,032
                                   ---------  ---------   ---------  ---------
   Total interest income           5,040,014  4,725,874   9,961,193  9,285,307
                                   ---------  ---------   ---------  ---------
Interest expense:
 Deposits                          1,663,439  1,492,635   3,273,059  2,966,537
 Short term borrowings               230,067    198,231     426,221    363,563
                                   ---------  ---------   ---------  ---------
  Total interest expense           1,893,506  1,690,866   3,699,280  3,330,100
                                   ---------  ---------   ---------  ---------

Net interest income                3,146,508  3,035,008   6,261,913  5,955,207
Provision for loan losses                  0          0           0          0
                                   ---------  ---------   ---------  ---------
Net interest income after
 provision for loan losses         3,146,508  3,035,008   6,261,913  5,955,207
                                   ---------  ---------   ---------  --------- 
Noninterest income:
 Merchant credit card assessments    288,920    243,806     593,125    492,592
 Service charges                     149,661    161,096     297,839    315,125
 Other charges, commissions, fees    244,405    235,856     511,592    428,355
 Gains on sales of loans, net        103,801     13,401     146,529     15,986
 Gains (losses) on sales of
  securities, net                          0     11,012           0     (1,864)
 Other                                20,464      7,666      40,767     41,223
                                   ---------  ---------   ---------  ---------
  Total noninterest income           807,251    672,837   1,589,852  1,291,417
                                   ---------  ---------   ---------  ---------
Noninterest expense:
 Salaries and benefits             1,246,516  1,168,189   2,507,595  2,357,574
 Data processing                     136,319    147,841     284,976    291,620
 Occupancy, net                      138,991    142,375     283,556    275,123
 Furniture and equipment             113,415    102,608     230,402    202,979
 Credit card processing              261,308    204,988     504,214    405,546
 Other                               505,728    623,203   1,028,663  1,138,835
                                   ---------  ---------   ---------  ---------
  Total noninterest expense        2,402,277  2,389,206   4,839,406  4,671,677
                                   ---------  ---------   ---------  ---------

Income before income taxes         1,551,482  1,318,639   3,012,359  2,574,947
Income taxes                         568,187    493,881   1,108,468    974,374
                                   ---------  ---------   ---------  ---------
Net income                        $  983,295 $  824,758  $1,903,891 $1,600,573
                                   =========  =========   =========  =========

Earnings per common share         $     .335 $     .280  $     .649 $     .545

Dividends per share               $     .079 $     .070  $     .156 $     .138

Weighted average number of shares  2,937,739  2,941,845   2,932,030  2,938,448

<FN>
                            See accompanying notes.
</TABLE>

                                     -3-
<PAGE>
<TABLE>

                            COMMUNITY BANCORP, INC.
                CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
<CAPTION>

                                    Three months ended      Six months ended
                                        June 30,               June 30,
                                  ---------------------  ---------------------
                                     1998        1997       1998        1997
                                  ---------   ---------  ---------   ---------
<S>                               <C>        <C>        <C>         <C>
Net income                        $ 983,295  $ 824,758  $1,903,891  $1,600,573
Other comprehensive income:
  Unrealized securities gains
   (losses) arising during period   (73,665)    81,161     (64,290)     20,482
  Income tax (expense) benefit on
    securities gains (losses)
    arising during period            32,961    (34,172)     28,998      (8,083)
                                   --------   --------   ---------   ---------
  Net unrealized securities gains 
   (losses) arising during period   (40,704)    46,989     (35,292)     12,399
                                   --------   --------   ---------   ---------
  Less:  reclassification
   adjustment for securities
   (gains) losses included in
   income                                 0    (11,012)          0       1,864
  Income tax expense (benefit) on
   securities (gains) losses 
   included in income                     0      4,658           0        (788)
                                   --------   --------   ---------   ---------
  Net reclassification adjustments
   for securities (gains) losses
   included in net income                 0     (6,354)          0       1,076
                                   --------   --------   ---------   ---------
Other comprehensive income          (40,704)    40,635     (35,292)     13,475
                                   --------   --------   ---------   ---------
Comprehensive income              $ 942,591  $ 865,393  $1,868,599  $1,614,048
                                   ========   ========   =========   =========

<FN>
                             See accompanying notes.
</TABLE>

                                     -4-
<PAGE>
<TABLE>
                             COMMUNITY BANCORP, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
<CAPTION>
                                                     Six months ended
                                                         June 30,
                                                -------------------------- 
                                                    1998           1997
                                                -----------    -----------
<S>                                             <C>           <C>
Cash flows from operating activities:
  Interest received                             $ 9,845,170    $ 9,062,384
  Fees and commissions received                   1,741,754      1,261,225
  Proceeds from secondary market
    mortgage sales                               23,286,797      4,108,857
  Origination of mortgage loans for
    secondary market sales                      (22,845,447)    (4,369,944)
  Interest paid                                  (3,704,455)    (3,371,741)
  Cash paid to suppliers & employees             (4,662,779)    (4,271,528)
  Income taxes paid                              (1,158,380)    (1,011,010)
                                                 ----------     ----------
Net cash provided by operating activities         2,502,660      1,408,243
                                                 ----------     ----------
Cash flows from investing activities:
  Maturities and principal repayments of
    securities available for sale                 6,281,845      2,839,300
  Maturities and principal repayments of
    securities held to maturity                  12,753,012      6,017,668
  Sales of securities available for sale                  0      2,004,596
  Purchases of securities available for sale        (84,600)   (10,068,750)
  Purchases of securities held to maturity      (29,694,341)    (6,029,533)
  Net change in federal funds sold              (12,900,000)     4,600,000
  Net change in loans and other real estate
    owned                                         4,215,306     (5,629,058)
  Proceeds from sales of other real estate
    owned                                                 0         15,600 
  Acquisition of property, plant and equipment     (568,130)      (426,416)
                                                 ----------     ----------
Net cash used in investing activities           (19,996,908)    (6,676,593)
                                                 ----------     ----------
Cash flows from financing activities:
  Net change in deposits                         10,180,406      1,006,456
  Net change in federal funds purchased          (3,000,000)             0
  Net change in repurchase agreements             9,212,368      8,681,147
  Sale of treasury stock                            274,965        150,019
  Dividends paid                                   (444,791)      (393,290)
                                                 ----------     ----------
Net cash provided by financing activities        16,222,948      9,444,332
                                                 ----------     ----------
Net increase in cash and due from banks          (1,271,300)     4,175,982

Cash and due from banks at beginning
  of period                                      16,704,667     14,391,567
                                                 ----------     ----------
Cash and due from banks at end of period        $15,433,367    $18,567,549
                                                 ==========     ==========
<FN>
                             See accompanying notes.
</TABLE>

                                      -5-
<PAGE>
<TABLE>

                             COMMUNITY BANCORP, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
  Reconciliation of Net Income to Net Cash Provided by Operating Activities
<CAPTION>
                                                    Six months ended
                                                         June 30,
                                                --------------------------
                                                    1998           1997
                                                -----------    -----------
<S>                                             <C>            <C>
Net income                                      $ 1,903,891    $ 1,600,573

  Adjustments to reconcile net income
    to net cash provided by operating
    activities:
      Decrease (increase) in mortgage loans
        held for sale                               330,898       (329,294)
      Premium on sale of mortgages                  110,452         68,207
      Depreciation and amortization                 434,503        394,158
      (Decrease) increase in other liabilities     (257,869)         5,992
      (Increase) in taxes payable                   (49,912)       (36,636)
      (Decrease) in interest payable                 (5,175)       (41,641)
      Decrease (increase) in other assets           151,895        (30,192)
      (Increase) in interest receivable            (116,023)      (222,924)
                                                 ----------     ----------
         Total adjustments                          598,769       (192,330)
                                                 ----------     ----------
Net cash provided by operating activities       $ 2,502,660    $ 1,408,243
                                                 ==========     ==========
<FN>
                            See accompanying notes.
</TABLE>

                                   


                                     -6-
<PAGE>

                             COMMUNITY BANCORP, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                 June 30, 1998
_________________________________________________________________________

1.  BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements have 
been prepared in accordance with generally accepted accounting 
principles for interim financial information and with the 
instructions to Form 10-Q and Article 10 of Regulation S-X.  
Accordingly, they do not include all of the information and notes 
required by generally accepted accounting principles for complete 
financial statements.  In the opinion of management, all adjustments 
(consisting of normal recurring accruals) considered necessary for a 
fair presentation have been included.  The results of operations for 
any interim period are not necessarily indicative of results expected 
for the full year.  These consolidated financial statements should be 
read in conjunction with the consolidated financial statements and 
notes thereto contained in the Company's Annual Report to 
shareholders and Form 10-K for the year ended December 31, 1997. 


2.  EARNINGS PER SHARE

The Company adopted Financial Accounting Standards Board Statement 
No. 128, "Earnings Per Share" (SFAS No. 128), effective December 31, 
1997.  This Statement requires the presentation of "basic" earnings 
per share, which excludes the effect of dilution, and "diluted" 
earnings per share, which includes the effect of dilution.  The 
Company's "basic" and "diluted" earnings per share computations are 
identical in the periods presented, as there is no dilution effect.  
Earnings per share is based on the weighted average number of shares 
outstanding during the period.


3.  COMPREHENSIVE INCOME

The Company adopted Financial Accounting Standards Board Statement 
No. 130, "Reporting Comprehensive Income" (SFAS No. 130), effective 
January 1, 1998.  Components of comprehensive income are net income 
and all other non-owner changes in equity.  The Statement requires 
that an enterprise (a) classify items of other comprehensive income 
by their nature in a financial statement and (b) display the 
accumulated balance of other comprehensive income separately from 
retained earnings and additional paid-in capital in the equity 
section of a statement of financial position.  Reclassification of 
financial statements for earlier periods provided for comparative 
purposes is required.  The Company has chosen to disclose 
comprehensive income in the Consolidated Statements of Comprehensive 
Income.  Prior year data has been restated to conform to the 
requirements of SFAS No. 130.





                                  -7-
<PAGE>

4.  OPERATING SEGMENTS

The Company adopted Financial Accounting Standards Board Statement 
No. 131, "Disclosures About Segments of an Enterprise and Related 
Information", (SFAS No. 131), effective January 1, 1998.  This 
Statement establishes standards for reporting information about 
segments in annual and interim financial statements.  SFAS No. 131 
introduces a new model for segment reporting called the "management 
approach".  The management approach is based on the way the chief 
operating decision-maker organizes segments within the company for 
making operating decisions and assessing performance.  Reportable 
segments are based on products and services, geography, legal 
structure, management structure and any other in which management 
disaggregates a company.  Based on the "management approach" model, 
the Company has determined that its business is comprised of a single 
operating segment and that SFAS No. 131 therefore has no impact on 
its financial statements.


5.  RECLASSIFICATIONS

Certain amounts in the prior period's financial statements have been 
reclassified to be consistent with the current period's presentation.  
The reclassifications have no effect on net income.










                                    -8-
<PAGE>

                       PART I - FINANCIAL INFORMATION

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

SUMMARY

The Company recorded net income of $1,903,891 for the six months ended 
June 30, 1998, representing an increase of $303,318 or 19.0% over 
$1,600,573 for the six months ended June 30, 1997.  Earnings per share of 
$.649 for the current period represented an increase of $.104 from $.545 
for the corresponding period in 1997.

The Company recorded net income of $983,295 for the three months ended 
June 30, 1998, representing an increase of $158,537 or 19.2% over 
$824,758 for the three months ended June 30, 1997  Earnings per share of 
$.335 for the current period represented an increase of $.055 from $.280 
for the corresponding period in 1997.

The improvement in net income resulted primarily from an increase in net 
interest income and noninterest income, partially offset by increases in 
salaries and benefits, occupancy, furniture and equipment and credit card 
processing.

Deposits of $242,968,941 at June 30, 1998 increased by $10,180,407 or 
4.4% from $232,788,534 at December 31, 1997.  The increase in deposits 
occurred in the noninterest bearing demand deposit category and in the 
interest bearing categories of money market deposit accounts, NOW 
accounts and certificates of deposit.

Loans of $135,467,862 at June 30, 1998 were down $4,371,991 or 3.1% from 
$139,839,853 at December 31, 1997.  A slight increase was realized in 
MasterCard balances while decreases were experienced in residential real 
estate mortgages, home equity lines of credit and installment loans.  
Commercial loans were essentially unchanged during the period.  
Noncurrent loans (nonaccrual loans and loans 90 days or more past due but 
still accruing) totaled $899,250 and $871,619 at June 30, 1998 and 
December 31, 1997, respectively.  There were no accruing troubled debt 
restructurings at June 30, 1998 or December 31, 1997.

Assets of $291,619,352 at June 30, 1998 represented a $18,068,825 or 6.6% 
increase from $273,550,527 at December 31, 1997.


               SIX MONTHS ENDED JUNE 30, 1998 AS COMPARED TO
                      SIX MONTHS ENDED JUNE 30, 1998       

NET INTEREST INCOME

Interest income for the six months ended June 30, 1998 was $9,961,193, 
representing an increase of $675,886 or 7.3% from $9,285,307 for the six 
months ended June 30, 1997, primarily due to higher average loan, 
securities and federal funds sold balances in 1998.  Interest expense was 
$3,699,280, representing an increase of $369,180 or 11.1% from $3,330,100 
for the six months ended June 30, 1997, primarily due to higher average 
interest bearing deposit and repurchase agreement balances in 1998.  Net 
interest income for the six months ended June 30, 1998 was $6,261,913, 
representing an increase of $306,706 or 5.2% from $5,955,207 for the six 
months ended June 30, 1997.

                                  -9-
<PAGE>

NONINTEREST INCOME AND EXPENSE

Noninterest income for the six months ended June 30, 1998 was $1,589,852 
representing an increase of $298,435 or 23.1% from $1,291,417 for the six 
months ended June 30, 1997.  This increase was primarily the result of 
increases in merchant credit card assessments, gains on sales of loans 
and other charges, commissions and fees, partially offset by a reduction 
in service charges and other income.

Noninterest expense for the six months ended June 30, 1998 of $4,839,406 
was up $167,729 or 3.6% from $4,671,677 for the same period in 1997.  
This increase was primarily the result of increases in salaries and 
employee benefits, occupancy, furniture and equipment and credit card 
processing, partially offset by a reduction in other expense.

PROVISION FOR LOAN LOSSES

There was no provision for loan losses for the six months ended June 30, 
1998 or 1997, reflecting management's continuing evaluation of the 
adequacy of the allowance for loan losses and its belief that the 
allowance is adequate.

INCOME TAXES

Income tax expense of $1,108,468 for the six months ended June 30, 1998 
compared to $974,374 for the same period in 1997, the result of an 
increase in taxable income during the current period.

NET INCOME

Net income of $1,903,891 for the first six months of 1998 represented an 
increase of $303,318 or 19.0% from $1,600,573 recorded for the first six 
months of 1997.  Earnings per share of $.649 for the current period 
represented an increase of $.104 from $.545 for the six months ended June 
30, 1997.

              THREE MONTHS ENDED JUNE 30, 1998 AS COMPARED TO
                     THREE MONTHS ENDED JUNE 30, 1997

NET INTEREST INCOME

Interest income for the three months ended June 30, 1998 was $5,040,014, 
representing an increase of $314,140 or 6.6% from $4,725,874 for the 
three months ended June 30, 1997, primarily due to higher average loan, 
securities and federal funds sold balances in 1998.  Interest expense was 
$1,893,506, representing an increase of $202,640 or 12.0% from $1,690,866 
for the three months ended June 30, 1997, primarily due to higher average 
interest bearing deposit and repurchase agreement balances in 1998.  Net 
interest income for the three months ended June 30, 1998 was $3,146,508, 
representing an increase of $111,500 or 3.7% from $3,035,008 for the 
three months ended June 30, 1997.

NONINTEREST INCOME AND EXPENSE

Noninterest income for the three months ended June 30, 1998 was $807,251, 
representing an increase of $134,414 or 20.0% from $672,837 for the three 
months ended June 30, 1997.  This increase was primarily the result of 
increases in merchant credit card assessments, gains on sales of loans 
and other charges, commissions and fees and other income, partially 

                                 -10-
<PAGE>

offset by a reduction in service charges and gains on sales of 
securities.

Noninterest expense for the three months ended June 30, 1998 of 
$2,402,277 was up $13,071 or .5% from $2,389,206 for the corresponding 
period in 1997.  This increase was primarily the result of increases in 
salaries and employee benefits, furniture and equipment and credit card 
processing, partially offset by reductions in data processing, occupancy 
and other expense.

PROVISION FOR LOAN LOSSES

There was no provision for loan losses for the three months ended June 
30, 1998 or 1997, reflecting management's continuing evaluation of the 
adequacy of the allowance for loan losses and its belief that the 
allowance is adequate.

INCOME TAXES

Income tax expense of $568,187 for the three months ended June 30, 1998 
compared to $493,881 for the corresponding period in 1997, the result of 
an increase in taxable income during the current period.

NET INCOME

Net income of $983,295 for the first three months of 1998 represented an 
increase of $158,537 or 19.2% from $824,758 recorded for the first three 
months of 1997.  Earnings per share of $.335 for the current period 
represented an increase of $.055 from $.280 for the three months ended 
June 30, 1997.

ALLOWANCE FOR POSSIBLE LOAN LOSSES

The allowance for possible loan losses is maintained at a level believed 
by management to be adequate to absorb potential losses in the loan 
portfolio.  Management's methodology in determining the adequacy of the 
allowance considers specific credit reviews, past loan loss experience, 
current economic conditions and trends and the volume, growth and 
composition of the loan portfolio.  Each loan on the Company's internal 
Watch List is evaluated periodically to estimate potential losses.  For 
loans with potential losses, the bank sets aside or "allocates" a portion 
of the ALLL against such potential losses.  For the remainder of the 
portfolio, "unallocated" reserve amounts are determined based on 
judgments regarding the type of loan, economic conditions and trends, 
potential exposure to loss and other factors.  The allowance for possible 
loan losses is charged when management determines that the repayment of 
the principal on a loan is in doubt.  Subsequent recoveries, if any, are 
credited to the allowance.  At June 30, 1998, the balance in the 
allowance was $3,125,204 representing 348% of noncurrent loans, compared 
to $3,215,559 or 369% of noncurrent loans at December 31, 1997.

SECURITIES

The Company's securities portfolio consists of obligations of the U.S. 
Treasury, U.S. government sponsored agencies, mortgage backed securities 
and obligations of various municipalities.  Those assets are used in part 
to secure public deposits and as collateral for repurchase agreements.


                                 -11-
<PAGE>

Total securities were $105,864,184 at June 30, 1998, representing an 
increase of $10,669,794 or 11.2% from $95,184,390 at December 31, 1997.
At June 30, 1998, $32,618,632 in securities were classified as "available 
for sale".  There were no sales of securities during the six months ended 
June 30, 1998.

LIQUIDITY AND CAPITAL RESOURCES

The Company's primary sources of liquidity are customer deposits, 
amortization and pay-offs of loan principal and maturities of investment 
securities.  These sources provide funds for loan originations, the 
purchase of investment securities and other activities.  Deposits are 
considered a relatively stable source of funds.  At June 30, 1998 and 
1997, deposits were $243.0 and $218.2 million, respectively.  Management 
anticipates that deposits will remain relatively stable or grow 
moderately during the remainder of 1998.

As a nationally chartered member of the Federal Reserve System, the Bank 
has the ability to borrow funds from the Federal Reserve Bank of Boston 
by pledging certain of its investment securities as collateral.  Also, 
the Bank is a member of the Federal Home Loan Bank which provides 
additional borrowing opportunities.

Bank regulatory authorities have established a capital measurement tool 
called "Tier 1" leverage capital.  A 4.00% ratio of Tier 1 capital to 
assets now constitutes the minimum capital standard for most banking 
organizations.  At June 30, 1998, the Company's Tier 1 leverage capital 
ratio was 8.23%.  Regulatory authorities have also implemented risk-based 
capital guidelines requiring a minimum ratio of Tier 1 capital to risk 
weighted assets of 4.00% and a minimum ratio of total capital to risk-
weighted assets of 8.00%.  At June 30, 1998 the Company's Tier 1 and 
total risk-based capital ratios were 15.31% and 16.57%, respectively.  
The Bank is categorized as "well capitalized" under the Federal Deposit 
Insurance Corporation Improvement Act of 1991 (F.D.I.C.I.A.).

On May 5, 1998, the Company's 401(k) Savings Plan ("401(k)") and the 
Employee Stock Ownership Plan ("ESOP") purchased 12,998 shares and 5,333 
shares, respectively, of common stock from the Company.  The stock was 
sold to the two Plans at a price of $15.00 per share, which was 
determined by the trustees of the Plans, based on a fair market analysis 
performed by an independent third party pursuant to the ESOP, to 
represent a fair market price from a financial point of view as of 
December 31, 1997.  The stock was sold to the two Plans from the 
Company's treasury stock account.

On June 16, 1998, the Company's Board of Directors declared a second 
quarter 1998 cash dividend of $.079 per share of common stock to 
shareholders of record at June 1, 1998, payable on July 15, 1998.

ASSET/LIABILITY MANAGEMENT

The Company has an asset/liability management committee which oversees 
all asset/liability activities of the Company.  The committee establishes 
general guidelines each year and meets regularly to review the Company's 
operating results and to make strategic changes when necessary.
It is the Company's general policy to reasonably match the rate 
sensitivity of its assets and liabilities.  A common benchmark of this

                                -12-
<PAGE>

sensitivity is the one year gap position, which is a reflection of the 
difference between the speed and magnitude of rate changes of interest 
rate sensitive liabilities as compared with the Bank's ability to adjust 
the rates of it's interest rate  sensitive assets in response to such 
changes.  The Company's positive cumulative one year gap position at June 
30, 1998, representing the excess of repricing assets versus repricing 
liabilities within a one year time frame, was 4.1% of total assets.








                                 -13-
<PAGE>

                      PART II - OTHER INFORMATION

Item 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

The Annual Meeting of Shareholders was held on April 14, 1998.  At 
that meeting, two (2) matters were put before the shareholders for 
vote.  Proxies for the meeting were solicited, and a copy of the Proxy 
Statement dated March 24, 1998 is incorporated herein by reference and 
attached hereto as an exhibit.  Such Proxy Statement provides a 
description of the matters put before the shareholders for vote and 
provides other information required under this Item 4.

The results of the voting were as follows:

1.   To fix the number of Directors who shall constitute the full Board 
     of Directors at eleven.

         Votes for:                    2,037,117
         Votes against:                    5,186

2.   To elect as Directors the four individuals listed as nominees in 
     the Proxy Statement, who, together with the seven Directors whose 
     terms of office did not expire at this meeting, constitute the full 
     Board of Directors.

             Director              Votes For         Votes Against
             --------              ---------         -------------
         Horst Huehmer             2,037,490             4,813
         Donald R. Hughes, Jr.     2,037,490             4,813
         Mark Poplin               2,037,490             4,813
         David W. Webster          2,037,490             4,813


Item 5.  OTHER INFORMATION

On June 16, 1998, the Company's Board of Directors declared a second 
quarter 1998 cash dividend of $.079 per share of common stock to 
shareholders of record at June 1, 1998, payable on July 15, 1998.


Item 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)  Exhibits:

       27   Article 9 - Financial Data Schedule for the six months
            ended June 30, 1998

       99   Proxy Statement dated March 24, 1998

(b)  The Company did not file a Form 8-K during the quarter ended June 
     30, 1998


                                 -14-
<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 BANCORP, INC.




Date:  August 10, 1998         By: /s/ James A. Langway
                                   _________________________
                                   James A. Langway
                                   President & Chief Executive Officer
                                   Principal Executive Officer





Date:  August 10, 1998         By: /s/ Donald R. Hughes, Jr.
                                   _________________________
                                   Donald R. Hughes, Jr.
                                   Treasurer and Clerk,
                                   Principal Financial Officer and
                                     Principal Accounting Officer





  

                                   -15-
<PAGE>

                               EXHIBIT INDEX
                               -------------


    EXHIBIT                     DESCRIPTION
    -------                     -----------

       27          Article 9 - Financial Data Schedule for six months 
                   ended June 30, 1998

       99          Proxy Statement dated March 24, 1998









                                   -16-
<PAGE>