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U. S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

|X| Quarterly report under section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarterly Period Ended June 30, 2004 or

|_| Transition report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 [no fee required]

For the Transition Period from _________ to __________

Commission File Number 0-18460

COMMUNITY CAPITAL CORPORATION
(Exact name of registrant as specified in its charter)

South Carolina
(State or other jurisdiction of incorporation)		 57-0866395
(I.R.S. Employer Identification No.)

1402C Highway 72 West
Greenwood, SC 29649
(Address of principal executive
offices, including zip code)

(864) 941-8200
(Registrant’s telephone number, including area code)


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      

Indicate by check mark whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

YES          NO  X  

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING YEAR

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

YES          NO      

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date: 3,940,403 shares of common stock, $1.00 par value, as of July 31, 2004


COMMUNITY CAPITAL CORPORATION

Index


PART I. FINANCIAL INFORMATION Page No.
 
Item 1 - Financial Statements (Unaudited)
 
      Condensed Consolidated Balance Sheets - June 30, 2004 and December 31, 2003 3 
 
      Condensed Consolidated Statements of Operations -
        Six months ended June 30, 2004 and 2003 and three months ended June 30, 2004 and 2003 4 
 
      Condensed Consolidated Statements of Changes in Shareholders’ Equity and Comprehensive Income -
        Six months ended June 30, 2004 and 2003 5 
 
      Condensed Consolidated Statements of Cash Flows - Six months ended June 30, 2004 and 2003 6 
 
      Notes to Condensed Consolidated Financial Statements 7-12 
 
Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations 13-20 
 
Item 3 - Quantitative and Qualitative Disclosure About Market Risk 20 
 
Item 4 - Controls and Procedures 21-22 
 
PART II. OTHER INFORMATION
 
Item 4 - Submission of Matters to a Vote of Security Holders 23 
 
Item 5 - Other Information 23 
 
Item 6 - Exhibits and Reports on Form 8-K 24 
 
      (a) Exhibits 24 
 
      (b) Reports on Form 8-K 24 


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COMMUNITY CAPITAL CORPORATION
Condensed Consolidated Balance Sheets

PART I. FINANCIAL STATEMENTS

Item 1. Financial Statements

(Dollars in thousands) June 30,
2004		 December 31,
2003
(Unaudited)
Assets            
Cash and cash equivalents:    
   Cash and due from banks     $ 18,445   $ 16,664  
   Interest-bearing deposit accounts       148     270  
         Total cash and cash equivalents       18,593     16,934  
Securities:    
   Securities available-for-sale       71,252     42,198  
   Securities held-to-maturity (estimated fair value of $505    
      at June 30, 2004 and $517 at December 31, 2003)       470     470  
   Nonmarketable equity securities       5,576     3,230  
         Total securities       77,298     45,898  
Loans held for sale       1,239     274  
Loans receivable       399,756     326,178  
Less allowance for loan losses       (5,431 )   (4,584 )
         Loans, net       394,325     321,594  
Premises and equipment, net       11,884     9,626  
Accrued interest receivable       2,160     1,627  
Intangible assets       11,386     3,646  
Cash surrender value of life insurance       12,533     10,794  
Other assets       3,196     2,366  
         Total assets     $ 532,614   $ 412,759  
Liabilities and Shareholders’ Equity    
Deposits:    
   Noninterest-bearing     $ 44,632   $ 36,204  
   Interest-bearing       334,104     278,069  
         Total deposits       378,736     314,273  
Federal funds purchased and securities sold    
   under agreements to repurchase       47,350     20,178  
Advances from the Federal Home Loan Bank       48,422     30,425  
Obligations under capital leases       273     361  
Accrued interest payable       707     508  
Other liabilities       2,443     1,481  
         Total liabilities       477,931     367,226  
Shareholders’ Equity    
Common stock, $1.00 par value; 10,000,000 shares authorized,    
   4,641,250 and 4,175,919 shares issued and outstanding    
   at June 30, 2004 and December 31, 2003, respectively       4,641     4,176  
Capital surplus       45,465     37,375  
Accumulated other comprehensive income (loss)       (296 )   869  
Retained earnings       14,551     12,791  
Treasury stock at cost; 702,522 shares at June 30, 2004    
   and December 31, 2003       (9,678 )   (9,678 )
         Total shareholders’ equity       54,683     45,533  
         Total liabilities and shareholders’ equity     $ 532,614   $ 412,759  

See notes to condensed consolidated financial statements.


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COMMUNITY CAPITAL CORPORATION

Condensed Consolidated Statements of Operations
(Unaudited)


(Dollars in thousands) Six Months Ended
June 30,		 Three Months Ended
June 30,
2004 2003 2004 2003
Interest income:                    
   Loans, including fees     $ 10,478   $ 9,510   $ 5,506   $ 4,805  
   Investment securities:    
      Taxable       674     506     377     236  
      Tax-exempt       665     590     360     292  
      Nonmarketable equity securities       70     93     37     39  
   Other interest income       5     2     -     1  
         Total       11,892     10,701     6,280     5,373  
Interest expense:    
   Deposits       2,215     2,399     1,126     1,223  
   Federal Home Loan Bank advances       495     809     264     351  
   Other interest expense       182     231     98     98  
         Total       2,892     3,439     1,488     1,672  
Net interest income       9,000     7,262     4,792     3,701  
Provision for loan losses       550     143     450     37  
Net interest income after provision for loan losses       8,450     7,119     4,342     3,664  
Noninterest income:    
   Service charges on deposit accounts       1,267     1,156     700     594  
   Residential mortgage origination fees       498     560     268     322  
   Commissions from sales of mutual funds       148     70     95     46  
   Income from fiduciary activities       272     173     147     91  
   Gain on sales of nonmarketable equity securities       -     39     -     -  
   Gain on sales of securities available-for-sale       5     11     5     11  
    Loss on sale of fixed assets       (9 )   -     (9 )   -  
    Other operating income       478     506     257     252  
         Total       2,659     2,515     1,463     1,316  
Noninterest expenses:    
   Salaries and employee benefits       4,354     3,439     2,273     1,742  
   Net occupancy expense       581     538     289     272  
   Amortization of intangible assets       236     171     133     86  
   Furniture and equipment expense       300     340     156     173  
   Other operating expenses       2,368     1,835     1,283     976  
         Total       7,839     6,323     4,134     3,249  
Income before income taxes       3,270     3,311     1,671     1,731  
Income tax provision       580     860     255     480  
Net income     $ 2,690   $ 2,451   $ 1,416   $ 1,251  
 
Basic net income per share     $ 0.71   $ 0.70   $ 0.36   $ 0.36  
 
Diluted net income per share     $ 0.69   $ 0.67   $ 0.35   $ 0.34  


See notes to condensed consolidated financial statements.



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COMMUNITY CAPITAL CORPORATION

Condensed Consolidated Statements of Changes in Shareholders’ Equity and Comprehensive Income
For the six months ended June 30, 2004 and 2003
(Unaudited)


(Dollars in thousands) Common Stock   Capital   Retained   Accumulated
Other
Comprehensive		   Treasury    
  Shares   Amount   Surplus   Earnings   Income(Loss)   Stock   Total
Balance, December 31, 2002       3,860,790   $ 3,861   $ 34,754   $ 8,947   $ 989   $ (4,143 ) $ 44,408  
                                               
Net income                         2,451                 2,451  
     
Other comprehensive    
   income, net of tax                               567           567  
Comprehensive income                                           3,018