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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 September 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:

3,834,078 shares of common stock, $1.00 par value, as of October 27, 2004


COMMUNITY CAPITAL CORPORATION

Index


PART I. FINANCIAL INFORMATION Page No.
 
Item 1 - Financial Statements (Unaudited)
 
      Condensed Consolidated Balance Sheets - September 30, 2004 and December 31, 2003 3 
 
      Condensed Consolidated Statements of Operations -
        Nine months ended September 30, 2004 and 2003 and three months ended September 30, 2004 and 2003 4 
 
      Condensed Consolidated Statements of Changes in Shareholders’ Equity and Comprehensive Income -
        Nine months ended September 30, 2004 and 2003 5 
 
      Condensed Consolidated Statements of Cash Flows - Nine months ended September 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 21 
 
Item 4 - Controls and Procedures 21-22 
 
PART II. OTHER INFORMATION
 
Item 2 - Issuer Repurchase Table 23 
 
Item 5 - Other Information 23 
 
Item 6 - Exhibits and Reports on Form 8-K 24-30 
 
      (a) Exhibits 26-30 
 
      (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

September 30,
2004		 December 31,
2003
(Dollars in thousands) (Unaudited)
Assets            
Cash and cash equivalents:    
   Cash and due from banks     $ 12,289   $ 16,664  
   Interest-bearing deposit accounts       269     270  
         Total cash and cash equivalents       12,558     16,934  
Securities:    
   Securities available-for-sale       72,215     42,198  
   Securities held-to-maturity (estimated fair value of $508    
      at September 30, 2004 and $517 at December 31, 2003)       470     470  
   Nonmarketable equity securities       5,571     3,230  
         Total securities       78,256     45,898  
 
Loans held for sale       1,584     274  
 
Loans receivable       415,193     326,178  
Less allowance for loan losses       (5,720 )   (4,584 )
         Loans, net       409,473     321,594  
Premises and equipment, net       12,503     9,626  
Accrued interest receivable       2,182     1,627  
Intangible assets       11,236     3,646  
Cash surrender value of life insurance       12,628     10,794  
Other assets       2,443     2,366  
         Total assets     $ 542,863   $ 412,759  
 
Liabilities and Shareholders’ Equity    
Deposits:    
   Noninterest-bearing     $ 50,882   $ 36,204  
   Interest-bearing       337,991     278,069  
         Total deposits       388,873     314,273  
 
Federal funds purchased and securities sold    
   under agreements to repurchase       26,751     20,178  
Advances from the Federal Home Loan Bank       69,362     30,425  
Obligations under capital leases       228     361  
Accrued interest payable       746     508  
Other liabilities       2,426     1,481  
         Total liabilities       488,386     367,226  
 
Shareholders’ Equity    
Common stock, $1.00 par value; 10,000,000 shares authorized,    
   4,660,444 and 4,175,919 shares issued and outstanding    
   at September 30, 2004 and December 31, 2003, respectively       4,660     4,176  
Nonvested restricted stock; 9,444 shares at September 30, 2004       (201 )   -  
Capital surplus       45,744     37,375  
Accumulated other comprehensive income       913     869  
Retained earnings       15,555     12,791  
Treasury stock at cost; 816,466 and 702,522 shares at September 30, 2004    
   and December 31, 2003, respectively       (12,194 )   (9,678 )
         Total shareholders’ equity       54,477     45,533  
         Total liabilities and shareholders’ equity     $ 542,863   $ 412,759  


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COMMUNITY CAPITAL CORPORATION

Condensed Consolidated Statements of Operations
(Unaudited)

(Dollars in thousands) Nine Months Ended
September 30,		 Three Months Ended
September 30,
2004 2003 2004 2003
Interest income:                    
   Loans, including fees     $ 16,269   $ 14,251   $ 5,791   $ 4,741  
   Investment securities:    
      Taxable       1,088     705     414     199  
      Tax-exempt       988     876     323     286  
      Nonmarketable equity securities       130     130     60     37  
   Other interest income       6     2     1     -  
         Total       18,481     15,964     6,589     5,263  
Interest expense:    
   Deposits       3,466     3,584     1,251     1,185  
   Federal Home Loan Bank advances       773     1,158     278     349  
   Other interest expense       364     285     182     54  
         Total       4,603     5,027     1,711     1,588  
Net interest income       13,878     10,937     4,878     3,675  
Provision for loan losses       900     243     350     100  
Net interest income after provision for loan losses       12,978     10,694     4,528     3,575  
Noninterest income:    
   Service charges on deposit accounts       1,993     1,756     726     600  
   Residential mortgage origination fees       635     1,028     137     468  
   Commissions from sales of mutual funds       196     143     48     73  
   Income from fiduciary activities       428     282     156     109  
   Gain on sales of nonmarketable equity securities       -     1,350     -     1,311  
   Gain on sales of securities available-for-sale       5     24     -     13  
    Gain (loss) on sale of fixed assets       (9 )   29     -     29  
    Other operating income       769     856     291     350  
         Total       4,017     5,468     1,358     2,953  
Noninterest expenses:    
   Salaries and employee benefits       6,532     5,288     2,178     1,849  
   Net occupancy expense       863     838     282     300  
   Amortization of intangible assets       371     259     135     88  
   Furniture and equipment expense       465     502     165     162  
   Other operating expenses       3,494     3,824     1,126     1,989  
         Total       11,725     10,711     3,886     4,388  
Income before income taxes       5,270     5,451     2,000     2,140  
Income tax provision       1,066     1,475     486     615  
Net income     $ 4,204   $ 3,976   $ 1,514   $ 1,525  
 
Basic net income per share     $ 1.10   $ 1.14   $ 0.39   $ 0.44  
 
Diluted net income per share     $ 1.07   $ 1.08   $ 0.38   $ 0.41  


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COMMUNITY CAPITAL CORPORATION

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

(Dollars in thousands) Common Stock   Nonvested
Restricted		   Capital   Retained   Accumulated
Other
Comprehensive		   Treasury    
  Shares   Amount   Stock   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                               3,976                 3,976  
     </