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

FORM 10-QSB

[X]	Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934
	for the quarterly period ended June 30, 2004

[ ]	Transition report under Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the transition period from ___________ to _____________

Commission file number 000-24099

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

SOUTH CAROLINA		58-2287073
(State of Incorporation)		(I.R.S. Employer Identification No.)

125 PARK AVENUE, S.W., AIKEN, SOUTH CAROLINA 29801
(Address of principal executive offices) (Zip Code)

(803) 641-0142
(Telephone Number)

Not Applicable
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Check whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: 1,179,237 shares of common stock, par value $.01 per share, outstanding as of August 9, 2004.

Transitional Small Business Disclosure Format (check one): Yes No X

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements.

People's Community Capital Corporation
Consolidated Balance Sheets

	June 30,			December 31,
	2004			2003
	(Unaudited)			(Audited)
Assets
Cash and due from banks	$	2,468,674		$	2,097,702
Federal funds sold		39,000			659,000
Short-term investments		2,096,150			1,720,652
Investment securities - available for sale		37,054,260			30,764,707
Investment securities - held to maturity (fair value of $4,212,522
and $4,655,929 at June 30, 2004 and December 31, 2003, respectively		4,121,204			4,492,515
Loans receivable, net		71,178,713			65,301,311
Properties and equipment, net		2,849,962			2,906,983
Accrued interest receivable		564,880			503,743
Other real estate owned		378,880			378,880
Other assets		707,799			302,555

Total assets	$	121,459,522		$	109,128,048

Liabilities and Shareholders' Equity
Liabilities:
Non-interest bearing deposits	$	17,561,586		$	15,219,085
Interest bearing deposits		87,549,810			78,018,488

Total deposits		105,111,396			93,237,573
Accrued interest payable		54,522			54,426
Federal Home Loan Bank advance		2,500,000			2,500,000
Other borrowings		879,593			805,174
Accrued expenses and other liabilities		191,868			165,100

Total liabilities		108,737,379			96,762,273

Shareholders' equity:
Common stock, $.01 par value; 10,000,000 shares authorized, 1,179,237 shares
issued at June 30, 2004 and 1,084,130 at December 31, 2003		11,792			10,841
Additional paid-in-capital		11,976,984			10,771,998
Retained earnings		1,418,621			1,605,571
Accumulated other comprehensive loss		(685,254	)		(22,635	)

Total shareholders' equity		12,722,143			12,365,775

Total liabilities and shareholders' equity	$	121,459,522		$	109,128,048

See accompanying Notes to Consolidated Financial Statements.

People’s Community Capital Corporation
Consolidated Statements of Income
(Unaudited)

	For the three months				For the six months
	ended June 30,				ended June 30,
	2004		2003		2004		2003
Interest income:
Loans, including fees	$	1,078,054	$	1,011,849	$	2,122,356	$	2,011,147
Federal funds sold		4,063		25,105		12,680		48,337
Securities, short-term investments, and cash		378,805		220,856		677,237		410,373

Total interest income		1,460,922		1,257,810		2,812,273		2,469,857

Interest expense:
Deposits		257,404		327,561		489,775		664,505
Other borrowings		25,046		23,737		51,504		47,194

Total interest expense		282,450		351,298		541,279		711,699

Net interest income		1,178,472		906,512		2,270,994		1,758,158
Provision for loan losses		62,552		29,197		118,121		59,197

Net interest income after provision
for loan losses		1,115,920		877,315		2,152,873		1,698,961

Non-interest income:
Service charges on deposit accounts		136,876		144,619		265,949		284,927
Realized net gains on sales of securities		11,455		41,282		11,455		67,994
Insurance and brokerage commissions		14,709		15,340		25,778		44,458
Mortgage origination fees		28,215		43,435		56,224		87,339
Other		24,781		31,870		65,173		78,138

Total non-interest income		216,036		276,546		424,579		562,856

Non-interest expenses:
Salaries and employee benefits		466,826		396,430		896,167		846,210
Occupancy and equipment		79,141		91,205		156,614		173,546
Consulting and professional fees		25,331		28,591		83,113		95,869
Customer related		31,956		28,449		65,854		57,834
General operating		35,996		34,987		83,263		70,372
Data processing		67,536		68,696		134,999		131,251
Other		65,140		51,414		113,973		96,385

Total non-interest expenses		771,926		699,772		1,533,983		1,471,467

Income before income taxes		560,030		454,089		1,043,469		790,350
Income tax provision		193,291		157,595		358,235		261,678

Net income	$	366,739	$	296,494	$	685,234	$	528,672

Earnings per share:
Basic	$	.31	$	.26	$	.59	$	.46
Diluted	$	.29	$	.24	$	.54	$	.43

See accompanying Notes to Consolidated Financial Statements.

People’s Community Capital Corporation
Statement of Changes in Shareholders’ Equity and Comprehensive Income
For the Six Months ended June 30, 2003 and June 30, 2004
(Unaudited)

										Accumulated
			Additional							Other
	Shares		Common		Paid-in		Retained			Comprehensive
	Issued		Stock		Capital		Earnings			Income (Loss)			Total
Balance, December 31, 2002		1,046,193	$	10,462	$	10,411,763	$	1,093,901		$	128,848		$	11,644,974
Comprehensive Income:
Net income		-		-		-		528,672			-			528,672
Accumulated other comprehensive
income net of income tax of $99,069		-		-		-		-			19,756			19,756
Total comprehensive income		-		-		-		-			-			548,428
Stock dividend (5%)		52,090		521		614,141		(614,662	)		-			-
Cash paid in lieu of stock dividends		-		-		-		(2,593	)		-			(2,593	)
Stock options exercised		-		-		-		-			-			-

Balance, June 30, 2003		1,098,283		10,983		11,025,904		1,005,318			148,604			12,190,809

Balance, December 31, 2003		1,084,130		10,841		10,771,998		1,605,571			(22,635	)		12,365,775
Comprehensive Income:
Net income		-		-		-		685,234			-			685,234
Accumulated other comprehensive
loss net of income tax benefit
of $456,836		-		-		-		-			(662,619	)		(662,619	)

Total comprehensive income		-		-		-		-			-			22,615

Stock dividend (5%)		53,843		538		865,796		(866,334	)		-			-
Cash paid in lieu of stock dividends		-		-		-		(5,850	)		-			(5,850	)
Stock options exercised		41,264		413		339,190		-			-			339,603

Balance, June 30, 2004		1,179,237	$	11,792	$	11,976,984	$	1,418,621		$	(685,254	)	$	12,722,143

See accompanying Notes to Consolidated Financial Statements.

People’s Community Capital Corporation
Consolidated Statements of Cash Flows
(Unaudited)

	For the six months
	ended June 30,
	2004			2003
Operating activities:
Net income	$	685,234		$	528,672
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization		72,486			96,125
Provision for loan losses		118,121			59,197
Amortization of held to maturity investments		21,311			26,620
Changes in deferred and accrued amounts:
Other assets and accrued interest receivable		(466,381	)		67,537
Accrued expenses and other liabilities		26,864			(36,873	)

Net cash provided by operating activities		457,635			741,278

Investing activities:
Activity in securities available for sale:
Sales		1,496,250			6,433,700
Purchases		(23,625,250	)		(15,719,301	)
Maturities and calls		15,176,828			4,870,154
Maturities in held to maturity investments		350,000			-
Net increase in short-term investments		(375,498	)		(935,350	)
Purchase of property and equipment		(15,465	)		(34,410	)
Loan originations and principal collections - net		(5,995,523	)		(2,397,860	)
Net decrease in federal funds sold		620,000			795,000

Net cash used for investing activities		(12,368,658	)		(6,988,067	)

Financing activities:
Exercise of stock options		339,603			-
Net increase in deposits		11,873,823			7,238,836
Net increase (decrease) in other borrowings		74,419			(277,787	)
Payment of cash dividends in lieu of stock for fractional shares		(5,850	)		(2,593	)

Net cash provided by financing activities		12,281,995			6,958,456

Net increase in cash and due from banks		370,972			711,667
Cash and due from banks at beginning of period		2,097,702			3,311,246

Cash and due from banks at end of period	$	2,468,674		$	4,022,913

Supplemental disclosure:
Cash paid during the period for interest	$	541,183		$	716,764

Income taxes paid	$	328,049		$	263,172

Unrealized net (loss) gain on securities available for sale, net of income tax	$	(662,619	)	$	19,756

See accompanying Notes to Consolidated Financial Statements.

People’s Community Capital Corporation
Notes to Consolidated Financial Statements
(Unaudited)

Note 1. Basis of Presentation

The accompanying unaudited 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-QSB and Item 310(b) of Regulation S-B of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the six months ended June 30, 2004 are not necessarily indicative of the results that may be expected for the year ending December 31, 2004. For further information, please refer to the consolidated financial statements and footnotes thereto for the Company’s fiscal year ended December 31, 2003, included in the Company’s Form 10-KSB for the year ended December 31, 2003.

Note 2. Summary of organization

People’s Community Capital Corporation was incorporated in South Carolina on February 26, 1997 for the purpose of operating as a bank holding company. Our wholly-owned subsidiary, People’s Community Bank of South Carolina, commenced business on September 22, 1997 and is primarily engaged in the business of accepting savings and demand deposits and providing mortgage, consumer and commercial loans to the general public. Our bank operates two banking centers located in Aiken and one located in North Augusta, South Carolina. In December 1999, our bank formed a subsidiary, People’s Financial Services, Inc., that provides comprehensive financial planning services in addition to full service brokerage, including stocks, bonds, mutual funds, and insurance products. In June 2003, we opened a loan production office in rented space in Charleston, South Carolina. The purpose of this office is to solicit loans, primarily in the real estate construction market.

Note 3. Earnings per share

The following reconciles the numerator and denominator of the basic and diluted earnings per share computation:

	Three months ended June 30,				Six months ended June
	2004		2003		2004		2003
Numerator:
(included in basic and diluted earnings per share)	$	366,739	$	296,494	$	685,234	$	528,672

Denominator:
Weighted average common shares outstanding for:
Basic earnings per share		1,165,898		1,153,197		1,152,405		1,144,736
Dilutive securities:
Stock options - Treasury stock method		116,610		100,974		115,273		89,672

Diluted earnings per share		1,282,508		1,254,171		1,267,678		1,234,408

The average market price used in calculating
assumed number of shares	$	19.52	$	14.78	$	18.18	$	13.50

Note 4. Stock option plan

SFAS No. 123, “Accounting for Stock-Based Compensation”, encourages all entities to adopt a fair value based method of accounting for employee stock compensation plans, whereby compensation cost is measured at the grant date based on the value of the award and is recognized over the service period, which is usually the vesting period. However, it also allows an entity to continue to measure compensation cost for those plans using the intrinsic value based method of accounting prescribed by Accounting Principles Board (APB) Opinion No. 25, “Accounting for Stock Issued to Employees”, whereby compensation cost is the excess, if any, of the quoted market price of the stock at the grant date (or other measurement date) over the amount an employee must pay to acquire the stock. Stock options issued under our stock option plan have no intrinsic value at the grant date, and under Opinion No. 25, no compensation cost is recognized.

The Company sponsors a stock option plan (the Plan) for the benefit of the directors, officers and employees. The Board may grant up to 303,876 options (adjusted for 5% stock dividends issued March 2001, January 2002, January 2003, and January 2004). During the first two quarters of 2004, no stock options were granted. During the first quarter of 2003, the Board granted 15,000 stock options at an exercise price of $12.90 that vest over the next two years and expire in 2013. During the second quarter of 2003, the Board granted 1,500 stock options at an exercise price of $15.00 which vest over three years and expire in 2013. The Company has adopted the disclosure-only provisions of SFAS No. 123, “Accounting for Stock-Based Compensation”. Accordingly, no compensation cost has been recognized for the stock option plan. Had compensation cost been determined based on the fair value at the grant date for the above stock option awards consistent with the provisions of SFAS No. 123, the Company’s net income and earnings per share would have been adjusted to the proforma amounts indicated below:

	For the three months ended				For the three months ended
	June 30,				June 30,
	2004		2003		2004		2003
Net income as reported	$	366,739	$	296,494	$	685,234	$	528,672
Net income - Proforma	$	351,049	$	293,372	$	653,854	$	512,125
Earnings per share - As reported
Basic	$	0.31	$	0.26	$	0.59	$	0.46
Diluted	$	0.29	$	0.24	$	0.54	$	0.43
Earnings per share - Proforma
Basic	$	0.30	$	0.25	$	0.57	$	0.45
Diluted	$	0.27	$	0.23	$	0.52	$	0.41

The fair value of the option grant is estimated on the date of grant using the Black-Scholes option pricing model. The risk free interest rate used was 4.77%, the expected option life was ten years, the assumed dividend rate was zero and the expected volatility was 8.0%.

Note 5. Recently issued accounting standards

The following is a summary of recent authoritative pronouncements that affect accounting, reporting, and disclosure of financial information by the Company:

In April 2003, the FASB issued SFAS No. 149, “Amendment of Statement 133 on Derivative Instruments and Hedging Activities”, which amends and clarifies accounting and reporting for derivative instruments, including certain derivative instruments embedded in other contracts (collectively referred to as derivatives) and loan commitments that relate to the origination of mortgage loans held for sale, and for hedging

activities under SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities”. SFAS No. 149 clarifies under what circumstances a contract with an initial net investment meets the characteristics of a derivative, clarifies when a derivative contains a financing component, amends the definition of an underlying to conform it to language used in FIN 45, and amends certain other existing pronouncements. The pronouncement was generally effective for contracts entered into or modified after June 30, 2003. The adoption of SFAS No. 149 did not have any impact on the financial condition or operating results of the Company.

In May 2003, the FASB issued SFAS No. 150, “Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity”, which establishes standards for how an issuer classifies and measures certain financial instruments with characteristics of both liabilities and equity. SFAS 150 requires an issuer to classify certain financial instruments that include certain obligations, such as mandatory redemption, repurchase of the issuer’s equity, or settlement by issuing equity, previously classified as equity, as liabilities or assets in come circumstances. SFAS No. 150 was generally effective for financial instruments entered into or modified after May 31, 2003, and otherwise was effective at the beginning of the first interim period beginning after June 15, 2003. The adoption of SFAS No. 150 did not have any impact on the financial condition or operating results of the Company.

In November 2002, the FASB issued FASB Interpretation No. 45 (“FIN 45”), “Guarantor’s Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others.” FIN 45 elaborates on the disclosure to be made by a guarantor in its interim and annual financial statements about its obligations under certain guarantees and warranties that it has issued. FIN 45 requires a company, at the time it issues a guarantee, to recognize an initial liability for the fair value of obligations assumed under the guarantee. The initial recognition requirements of FIN 45 were effective for guarantees issued or modified after December 31, 2002. The disclosure requirements were effective for financial statements for periods ending after December 15, 2002. The adoption of FIN 45 did not have any impact on the Company’s financial position or results of operations.

In January 2003, the FASB issued Interpretation No. 46, (“FIN 46”), “Consolidation of Variable Interest Entities”, which addresses consolidation by business enterprises of variable interest entities. FIN 46 requires a variable interest entity to be consolidated by a company if that company is subject to a majority of the risk of loss from the variable interest entity’s activities or entitled to receive a majority of the entity’s residual returns, or both. FIN 46 also requires disclosures about variable interest entities that a company is not required to consolidate, but in which it has a significant variable interest. FIN 46 provides guidance for determining whether an entity qualifies as a variable interest entity by considering, among other considerations, whether the entity lacks sufficient equity or its equity holders lack adequate decision-making ability. The consolidation requirements of FIN 46 applied immediately to variable interest entities created after January 31, 2003. The consolidation requirements applied to existing entities in the first fiscal year or interim period beginning after June 15, 2003. Certain of the disclosure requirements applied to all financial statements issued after January 31, 2003, regardless of when the variable interest entity was established. The adoption of FIN 46 did not have any impact on the Company’s financial position or results of operations.

In November 2003, the Emerging Issues Task Force (“EITF”) reached a consensus that certain quantitative and qualitative disclosures should be required for debt and marketable equity securities classified as available-for-sale or held-to-maturity under SFAS No. 115 and SFAS No. 124 that are impaired at the balance sheet date but for which other-than-temporary impairment has not been recognized. Accordingly the EITF issued EITF No. 03-1, “The Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments.” This issue addresses the meaning of other-than-temporary impairment and its application to investments classified as either available-for-sale or held-to-maturity under SFAS No. 115 and provides

guidance on quantitative and qualitative disclosures. EITF No. 03-1 was effective for fiscal years ending after December 15, 2003. Adopting the disclosure provisions of EITF No. 03-1 did not have any impact on the Company’s financial position or results of operations.

In March 2004, the FASB issued an exposure draft on “Share-Based Payment”. The proposed Statement addresses the accounting for transactions in which an enterprise receives employee services in exchange for a) equity instruments of the enterprise or b) liabilities that are based on the fair value of the enterprise’s equity instruments or that may be settled by the issuance of such equity instruments. This proposed Statement would eliminate the ability to account for share-based compensation transactions using APB Opinion No. 25, “Accounting for Stock Issued to Employees”, and generally would require instead that such transactions be accounted for using a fair-value-based method. This Statement, if approved, will be effective for awards that are granted, modified, or settled in fiscal years beginning after a) December 15, 2004 for public entities and nonpublic entities that used the fair-value-based method of accounting under the original provisions of Statement 123 for recognition or pro forma disclosure purposes and b) December 15, 2005 for all other nonpublic entities. Earlier application is encouraged provided that financial statements for those earlier years have not yet been issued. Retrospective application of this Statement is not permitted. The adoption of this Statement, if approved, is not expected to have any significant impact on the Company’s financial position or results of operations.

Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption.

Item 2. Management's Discussion and Analysis or Plan of Operation.

The following is our discussion and analysis of certain significant factors that have affected our financial position and operating results during the periods included in the accompanying financial statements. This commentary should be read in conjunction with the financial statements and the related notes and the other statistical information included in this report.

This report contains “forward-looking statements” relating to, without limitation, future economic performance, plans and objectives of management for future operations, and projections of revenues and other financial items that are based on the beliefs of management, as well as assumptions made by and information currently available to management. The words “may,” “will,” “anticipate,” “should,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” and “intend,” as well as other similar words and expressions of the future, are intended to identify forward-looking statements. Our actual results may differ materially from the results discussed in the forward-looking statements, and our operating performance each quarter is subject to various risks and uncertainties that are discussed in detail in our filings with the Securities and Exchange Commission, including without limitation:

significant increases in competitive pressure in the banking and financial services industries;

changes in the interest rate environment which could reduce anticipated or actual margins;

changes in political conditions or the legislative or regulatory environment;

general economic conditions, either nationally or regionally and especially in our primary service area, becoming less favorable than expected resulting in, among other things, a deterioration in credit quality;

changes occurring in business conditions and inflation;

changes in technology;

changes in monetary and tax policies;

loss of consumer confidence and economic disruptions resulting from terrorist activities;

the level of allowance for loan loss;

the rate of delinquencies and amounts of charge-offs;

the rates of loan growth;

adverse changes in asset quality and resulting credit risk-related losses and expenses;

changes in the securities markets; and

other risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission.

CRITICAL ACCOUNTING POLICY

We have adopted various accounting policies which govern the application of accounting principles generally accepted in the United States of America in the preparation of our financial statements. The significant accounting policies of the company are described in the footnotes to the consolidated financial statements at December 31, 2003 as filed on our 10-KSB for that date.

Certain accounting policies involve significant judgments and assumptions by management which have a material impact on the carrying value of certain assets and liabilities; management considers such accounting policies to be critical accounting policies. The judgments and assumptions used by management are based on historical experience and other factors, which are believed to be reasonable under the circumstances. Because of the nature of the judgments and assumptions made by management, actual results could differ from these judgments and estimates which could have a material impact on the carrying values of assets and liabilities and the results of operations of our company.

We believe the allowance for loan losses is a critical accounting policy that requires the most significant judgments and estimates used in preparation of our consolidated financial statements. Refer to the discussion under Allowance for Loan Losses section of this report for a detailed description of our estimation process and methodology related to the allowance for loan losses.

OVERVIEW

The following discussion describes our results of operations for the quarter ended June 30, 2004 as compared to the quarter ended June 30, 2003 as well as results for the six months ended June 30, 2004 and 2003, and also analyzes our financial condition as of June 30, 2004 as compared to December 31, 2003. Like most community banks, we derive most of our income from interest we receive on our loans and investments. Our primary source of funds for making these loans and investments is our deposits, on which we pay interest. Consequently, one of the key measures of our success is our amount of net interest income, or the difference between the income on our interest-earning assets, such as loans and investments, and the expense on our interest-bearing liabilities, such as deposits. Another key measure is the spread between the yield we earn on these interest-earning assets and the rate we pay on our interest-bearing liabilities.

We have included a number of tables to assist in our description of these measures. For example, the “Average Balances” table shows the average balance for the three and six months ended June 30, 2004 and 2003 of each category of our assets and liabilities, as well as the yield we earned or the rate we paid with respect to each category. A review of this table shows that our loans typically provide higher interest yields than do other types of interest-earning assets, which is why we intend to direct a substantial percentage of our earning assets into our loan portfolio. We have also included a table that provides detail about our loans.

Of course, there are risks inherent in all loans, so we maintain an allowance for loan losses to absorb probable losses on existing loans that may become uncollectible. We establish and maintain this allowance by charging a provision for loan losses against our operating earnings. In the following section we have included a detailed discussion of this process.

In addition to earning interest on our loans and investments, we earn income through fees and other expenses we charge to our customers. We describe the various components of this non-interest income, as well as our non-interest expense, in the following discussion.

The following discussion and analysis also identifies significant factors that have affected our financial position and operating results during the periods included in the accompanying financial statements. We encourage you to read this discussion and analysis in conjunction with the financial statements and the related notes and the other statistical information also included in this report.

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

EARNINGS REVIEW – Comparison of the three months ended June 30, 2004 to the three months ended June 30, 2003

Our net income for the second quarter of 2004 was $366,739 compared to $296,494 for the same period last year, an increase of 24%. The basic income per share was $0.31 per share compared to $0.26 per share for the three months ended June 30, 2003. The improvement in earnings resulted primarily from growth in the level of earning assets and reductions in interest expense paid on deposits. The level of average earning assets was $115.4 million for the three months ended June 30, 2004 compared to $101.4 million for the three months ended June 30, 2003.

Net interest income represents the difference between interest received or accrued on interest-earning assets and interest paid or accrued on interest-bearing liabilities. The following presents, in a tabular form, average balance sheets that highlight the main components of interest-earning assets and interest-bearing

liabilities, on an annualized basis, for the three month periods ended June 30, 2004 and 2003. Yields are derived by dividing income or expense by the average balance of the corresponding assets or liabilities. Average balances have been derived from daily averages.

	Three months ended June 30, 2004							Three months ended June 30, 2003
	Average			Interest		Yield		Average			Interest		Yield
	Balance			Income/Expense		/Rate		Balance			Income/Expense		/Rate
ASSETS
Federal funds sold		1,778,151		$	4,063		0.91%		8,665,468		$	25,105		1.16%
Short-term investments		1,986,861			13,838		2.79%		2,931,860			22,382		3.06%
Securities		41,074,509			364,967		3.55%		28,132,797			198,474		2.83%
Loans		70,599,654			1,078,054		6.11%		61,664,829			1,011,849		6.58%

Total earnings assets		115,439,175			1,460,922		5.06%		101,394,954			1,257,810		4.98%

Cash and due from banks		2,756,856							2,264,596
Premises and equipment		2,860,344							3,020,547
Other assets		1,813,177							1,633,961
Allowance for loan losses		(1,032,822	)						(877,010	)

Total assets		121,836,730							107,437,048

LIABILITIES & EQUITY
Interest-bearing deposits:
Transaction accounts		16,670,122			13,760		0.33%		15,143,634			14,292		0.38%
Money market accounts		12,733,065			16,205		0.51%		11,693,915			27,841		0.95%
Savings deposits		12,626,560			16,780		0.53%		12,603,937			43,248		1.38%
Time deposits		47,198,642			210,659		1.79%		38,642,071			242,180		2.51%

Total interest bearing
deposits		89,228,389			257,404		1.15%		78,083,557			327,561		1.68%
Interest-bearing borrowings		3,172,913			25,046		3.16%		2,745,337			23,737		3.47%

Total interest bearing
liabilities		92,401,302			282,450		1.22%		80,828,894			351,298		1.74%

Demand deposits		16,409,896							14,482,286
Other liabilities		114,245							287,050
Shareholders' equity		12,911,287							11,838,818

Total liabilities &
shareholders' equity	$	121,836,730							$107,437,048

Net interest spread							3.84%							3.24%
Net interest income/margin				$	1,178,472		4.08%				$	906,512		3.59%

Net interest income was $1,178,472 for the three months ended June 30, 2004 compared to $906,512 for the three months ended June 30, 2003, representing a 30% increase. The net interest margin (net interest income divided by average earning assets) was 4.08% for the three months ended June 30, 2004 compared to the net interest margin of 3.59% for the three months ended June 30, 2003. Net yields were higher in the second quarter this year as yields on earning assets have remained fairly constant overall, however we were able to lower the cost of funds by reducing rates paid on deposits.

Interest income for the second quarter of 2004 was $1,460,922 compared to $1,257,810 for the same period in 2003. The volume of total average earning assets increased by approximately $14.0 million between the two periods, and the average rate earned on assets increased slightly from 4.98% to 5.06% primarily due to an increase on the yield in our securities portfolio. The largest component of interest income was interest and fees on loans amounting to $1,078,054 for the quarter ended June 30, 2004 compared to $1,011,849 for the

comparable prior year period. Average loan balances increased by $8.9 million. The overall rate on the loan portfolio decreased from 6.58% for the three months ended June 30, 2003 to 6.11% for the three-month period ended June 30, 2004. Interest earned on federal funds sold decreased from $25,105 for the second quarter of 2003 to $4,063 for the second quarter of 2004 as the average balance of federal funds sold decreased by $6.9 million, and the yield fell from 1.16% to 0.91%. Federal funds sold were decreased in order to fund investments in securities and to fund loan growth. The securities portfolio earned $364,967 for the second quarter of 2004 with a yield of 3.55%. For the second quarter of 2003, the portfolio earned $198,474 with a yield of 2.83%. The portfolio was increased by $12.9 million and the yield increased primarily as a result of the extension of the maturity of the investment portfolio. For the second quarter of 2003, the average maturity was 2.84 years, and in the second quarter of 2004, the average maturity was 4.75 years.

Interest expense decreased from $351,298 for the three months ended June 30, 2003 to $282,450 for the three months ended June 30, 2004. The decrease was the result of the decrease in rates paid on deposits and other liabilities, from an average of 1.74% for the second quarter last year to an average rate of 1.22% for the second quarter this year. Average interest-bearing liabilities, primarily deposits, increased by $11.6 million, or 14%.

Non-interest Income

Non-interest income for the three-month period ended June 30, 2004 was $216,036 compared to $276,546 for the same period in 2003. Service charges on deposit accounts decreased by $7,743, or 5%, primarily due to a decrease in commercial NSF fees between the two periods under comparison. Included in net income for the second quarter of 2003 were net gains on sale of securities in the amount of $41,282. There were $11,455 in security gains in the second quarter of 2004. Brokered mortgage fee income declined $15,220 in the second quarter from 2003 levels to produce $28,215 in income for the second quarter of 2004 compared to $43,435 for the same quarter last year. This type of fee income is extremely interest rate sensitive, and we have seen a decline in refinancing activity from last year’s levels. We expect this trend may continue as the Federal Reserve reversed its rate-cutting policy and increased the federal funds rate by 25 basis points in the second quarter. Other non-interest income, primarily fees, decreased from $31,870 to $24,781. This is partially due to the fact that we have begun providing free internet banking to certain of our deposit customers.

Non-interest Expenses

Non-interest expenses for the quarters ended June 30, 2004 and 2003 were $771,926 and $699,772, respectively, an increase of $72,154, or 10%. The largest component of non-interest expense was salaries and employee benefits which increased from $396,430 to $466,826. This increase was primarily due to general merit increases in salaries and benefits and the fact that an officer position was temporarily unfilled during the second quarter of 2003. Occupancy and equipment expenses declined from $91,205 to $79,141 due to certain assets within the company becoming fully depreciated since the same quarter last year. Other expenses increased from $51,414 to $65,140 primarily due to increased advertising expenditures.

EARNINGS REVIEW – Comparison of the six months ended June 30, 2004 to the six months ended June 30, 2003

Our net income for the six months ended June 30, 2004 was $685,234 compared to $528,672 for the same period last year, an increase of 30%. The basic income per share increased to $.59 compared to $.46 for the same period in 2003, as adjusted for the stock dividends paid in 2003 and 2004. This improvement in earnings is the net result of increased interest income due to growing loan and securities portfolios that more

than offset a higher loan loss provision, increased non-interest expense and decreased non-interest income. The level of average earning assets was $111.0 million for the six months ended June 30, 2004 compared to $98.9 million for the six months ended June 30, 2003. The average yield on earning assets stayed roughly the same, increasing only slightly from 5.04% to 5.07% between the two periods.

The following presents, in a tabular form, yield and rate data for interest-bearing balance sheet components during the six month periods ended June 30, 2004 and 2003, along with average balances and the related interest income and interest expense amounts.

	Six months ended June 30, 2004								Six months ended June 30, 2003
	Average			Interest		Yield			Average			Interest		Yield/
	Balance			Income/Expense		/Rate			Balance			Income/Expense		Rate
ASSETS
Federal funds sold	$	2,788,856		$	12,680		0.91	%	$	8,315,399		$	48,337		1.17	%
Cash and short-term investments		1,864,999			25,977		2.79	%		2,927,112			44,366		3.06	%
Securities		36,971,444			651,260		3.52	%		26,695,250			366,007		2.76	%
Loans		69,341,745			2,122,356		6.12	%		60,924,853			2,011,147		6.66	%

Total earning assets		110,967,044			2,812,273		5.07	%		98,862,614			2,469,857		5.04	%

Cash and due from banks		2,718,218								2,408,820
Premises and equipment		2,878,982								3,035,732
Other assets		1,769,811								1,456,878
Allowance for loan losses		(1,002,052	)							(863,435	)

Total assets		117,332,003								104,900,609

IABILITIES &EQUITY
Interest-bearing deposits:
Transaction accounts		15,808,815			26,257		0.33	%		14,155,966			28,041		0.40	%
Money market accounts		12,517,723			31,907		0.51	%		11,828,655			57,346		0.98	%
Savings deposits		12,728,346			33,835		0.53	%		12,740,222			86,932		1.38	%
Time deposits		44,006,513			397,776		1.81	%		37,682,191			492,186		2.63	%

Total interest bearing deposits		85,061,397			489,775		1.15	%		76,407,034			664,505		1.75	%
Interest-bearing borrowings		3,268,274			51,504		3.15	%		2,763,930			47,194		3.44	%


Total interest-bearing liabilities		88,329,671			541,279		1.23	%		79,170,964			711,699		1.81	%
Demand deposits		15,847,949								13,683,743
Other liabilities		169,222								300,824
Shareholders' equity		12,985,161								11,745,078

Total liabilities &
shareholders equity	$	117,332,003							$	104,900,609

Net interest spread							3.84	%							3.23	%
Net interest income/margin				$	2,270,994		4.09	%				$	1,758,158		3.59	%

Net interest income was $2,270,994 for the six months ended June 30, 2004 compared to $1,758,158 for the six months ended June 30, 2003. The net interest margin (net interest income divided by average earning assets) was 4.09% for the six months ended June 30, 2004 compared to the net interest margin of 3.59% for the six months ended June 30, 2003.

Interest income for the first six months of 2004 was $2,812,273 compared to $2,469,857 for the same period in 2003. The volume of total average earning assets increased from $98.9 million at June 30, 2003 to $111.0 million at June 30, 2004, and the average rate earned on assets was comparable with a slight net increase

from 5.04% to 5.07%. The largest component of interest income was interest and fees on loans amounting to $2,122,356 for the six months ended June 30, 2004 compared to $2,011,147 for the comparable prior year period. The overall rate on the loan portfolio decreased from 6.66% for the six months ended June 30, 2003 to 6.12% for the six month period ended June 30, 2004 as interest rates continued to decline in the economy. Average loan balances, however, increased by approximately $8.4 million. The average balance in federal funds sold decreased by approximately $5.5 million as the funds were deployed into the loan and securities portfolios, and the average yield fell from 1.17% to 0.91% resulting in a decrease of interest earned on federal funds sold from $48,337 to $12,680. Interest income on securities increased between the two periods from $366,007 to $651,260 as the average balances were higher by about $10.3 million, and the yield increased from 2.76% to 3.52% largely due to lengthened maturities within the portfolio.

Interest expense decreased from $711,699 for the six months ended June 30, 2003 to $541,279 for the six months ended June 30, 2004 due to a decrease in average rates paid on liabilities from 1.81% to 1.23%. This decrease occurred even though the size of average interest-bearing liabilities, primarily deposits, increased from $79.2 million to $88.3 million, an increase of 12%.

Non-interest Income

Non-interest income for the six month period ended June 30, 2004 was $424,579 compared to $562,856 for the same period in 2003. Of this total, $265,949 represented service charges on deposit accounts for the six months ended June 30, 2004 compared to $284,927 for the comparable period in 2003. The decrease in income from deposit service charges is largely due to a decrease in the volume of NSF income on certain commercial accounts. We had a gain on sale of securities of $11,455 during the six months ended June 30, 2004 compared to a gain of $67,994 during the same period last year. Fees generated from our financial services’ subsidiary declined from $44,458 for the first half of 2003 to $25,778 for the first half of 2004. Low interest rates had a direct bearing on the sale of annuity products. Brokered mortgage fees decreased from $87,339 to $56,224 as refinancing activity slowed. It is anticipated that refinancing activity will not reach previous levels again in the near future as the Federal Reserve reversed its rate-cutting policy and increased the federal funds rate 25 basis points in the second quarter. The remaining $65,173 of other non-interest income for the first half of 2004 consisted of income generated from other fees charged such as check cashing fees, internet fees, and commissions on sale of checks to customers. The comparable amount for last year was $78,138. The decline can be attributed to the waiver of internet fees to certain customers and to certain other income recognized on a one-time basis in 2003.

Non-interest Expenses

Non-interest expenses for the six month periods ended June 30, 2004 and 2003 were $1,533,983 and $1,471,467, respectively, a 4% increase. The largest component of non-interest expense, salaries and employee benefits, increased 6% from $846,210 for the six months ended June 30, 2003 to $896,167 for the six months ended June 30, 2004. Occupancy and equipment expense decreased due to certain assets becoming fully depreciated. Other changes in non-interest expenses were primarily due to the continued growth of the bank.

Provision for Loan Losses

The provision for loan losses was $118,121 and $59,197 for the six months ended June 30, 2004 and 2003, bringing the total reserve balance to $1,030,000 and $900,000 at June 30, 2004 and 2003, respectively. This amount represents 1.42% of gross loans at June 30, 2004 and at June 30, 2003. It reflects our estimate of

the amounts necessary to maintain the allowance for loan losses at a level believed to be adequate in relation to the current size, mix and quality of the loan portfolio. The reserve has specifically been increased in relation to gross loans due to the uncertainty that may exist in our portfolio with respect to current economic conditions existing in our market. See the description of the allowance for loan losses below. However, our judgment as to the adequacy of the allowance is based upon a number of assumptions in accordance with management’s evaluation that we believe to be reasonable, but which may or may not prove to be accurate. Because of the inherent uncertainty of assumptions made during the evaluation process, there can be no assurance that charge-offs in future periods will not exceed the allowance for loan losses or that additional increases in the loan loss allowance will not be required. We had no loans that were classified as non-accrual at June 30, 2004 compared to $1,861 in non-accrual loans at June 30, 2003. There were net charge-offs of $28,121 for the six months ended June 30, 2004 and net recoveries of $802 for the six months ended June 30, 2003.

BALANCE SHEET REVIEW

Total consolidated assets grew by $12.3 million from $109,128,048 at December 31, 2003 to $121,459,522 at June 30, 2004. The increase was generated primarily through deposit growth of $11.9 million. The funds were invested in our loan portfolio which increased by a net amount of $5.9 million and in our available for sale investment securities, which increased by $6.3 million.

Loans

Outstanding net loans represent the largest component of earning assets as of June 30, 2004 at $71,178,713, or approximately 62% of total earning assets. Net loans increased $5,877,402, or 9%, since December 31, 2003.

The interest rates charged on loans vary with the degree of risk, maturity and amount of the loan. Competitive pressures, money market rates, availability of funds, and government regulations also influence interest rates. The average yield on our loans for the six months ended June 30, 2004 was 6.12% as compared to a yield of 6.45% for the year ended December 31, 2003.

The principal components of our loan portfolio at June 30, 2004 and December 31, 2003 consisted of real estate loans, comprising approximately 85.6% and 87.9% of total loans, respectively. Real estate loan means any loan secured by real estate, regardless of the purpose of the loan. It is common practice for financial institutions in our market area to obtain a security interest in real estate whenever possible, in addition to any other available collateral. This collateral is taken to reinforce the likelihood of the ultimate repayment of the loan and tends to increase the magnitude of the real estate portfolio component. The following table shows the composition of the loan portfolio by category.

	June 30, 2004						December 31, 2003
	Amount			Percent			Amount			Percent
Commercial and industrial	$	8,366,318			11.6	%	$	5,980,976			9.0	%
Real estate mortgage - residential		19,859,596			27.4	%		19,329,951			29.1	%
Real estate mortgage - commercial		41,833,652			57.8	%		38,765,316			58.4	%
Real estate mortgage - other		268,953			0.4	%		269,797			0.4	%
Consumer and other		2,069,211			2.8	%		2,050,922			3.1	%

Total loans		72,397,730			100.0	%		66,396,962			100.0	%
Allowance for loan losses		(1,030,000	)					(940,000	)
Unearned fees		(189,017	)					(155,651	)

Total net loans	$	71,178,713					$	65,301,311

Allowance for Loan Losses

The allowance for loan losses at June 30, 2004 was $1,030,000, or 1.42% of loans outstanding, compared to an allowance of $940,000, or 1.42% of loans outstanding, at December 31, 2003. The allowance for loan losses is based upon our continuing evaluation of the collectibility of loans based somewhat on historical loan loss experience, but primarily on current economic conditions affecting the ability of borrowers to repay, the volume of loans, the quality of collateral securing non-performing and problem loans, and other factors deserving recognition. The bank’s policy has been to review the allowance for loan losses using a reserve factor for each type of loan since there have been few delinquencies and little charge-off activity since the bank’s inception. The overall objective is to apply percentages to the loans based on management’s assessment of the relative inherent risk for that loan type and grade. Reserve factors are based on peer group data, information from regulatory agencies, and the experience of our bank’s lenders. The reserve factors will change depending on trends in national and local economic conditions, the depth of experience of our bank’s lenders, delinquency trends, and other factors. The bank’s general strategy is to maintain a minimum coverage of a certain percentage of gross loans until it has sufficient historical data and trends available.

Federal Funds Sold, Short-Term Investments and Securities

Federal funds sold (cash invested in overnight funds), short-term investments, and securities represented approximately 38% of earning assets at June 30, 2004, or $43,310,614. This represented an increase of $5.7 million from the December 31, 2003 balance of $37,636,874. The combined yield on invested federal funds sold, cash and short-term investments, and securities was 3.31% for the six months ended June 30, 2004 compared to 2.59% for the year ended December 31, 2003. Short-term investments at June 30, 2004 and at December 31, 2003 consisted of commercial paper in another financial institution with balances of $2,096,150 and $1,720,652, respectively. Included in available-for-sale securities is $289,800 of stock purchased in the Federal Home Loan Bank of Atlanta (FHLB), of which $15,600 was purchased in the first quarter of 2004. This purchase was a requirement from the FHLB as a condition of membership and borrowing capabilities.

Other Real Estate Owned

In November 2002, we foreclosed on certain property in Richmond County, Georgia. The carrying value of the property was $378,880 at June 30, 2004 and December 31, 2003. Since quarter end, we have sold a portion of the property leaving a balance of approximately $100,000. We believe that the remaining carrying value is not impaired and that any future sale of the remaining property would be in an amount sufficient to realize its carrying value.

Deposits and Other Borrowings

Our primary source of funds for loans and investments is deposits. Deposits grew $11,873,823, or 13%, since year-end 2003 for a total of $105,111,396 at June 30, 2004. The average rates paid on interest-bearing deposits were 1.15% and 1.75% at June 30, 2004 and December 31, 2003, respectively. In pricing deposits, we consider our liquidity needs, the direction and levels of interest rates, and local market conditions. We have been able to realize decreases in the price of our deposits due to the low interest rate environment in the general economy and in the local market. It is anticipated that rates will begin to increase now that the general trend in interest rates has begun to reverse.

In April 2002, we secured an advance of $2,500,000 with the FHLB at a rate of 3.65%. The loan has a five year maturity with early conversion options that began as of April 2004 and continue each quarter thereafter. If the FHLB exercises its conversion option, the advance will be converted to a floating rate or can be repaid without penalty. If the FHLB does not exercise its option, the advance will continue at the original rate. Thus far, the FHLB has not exercised its conversion option.

Shareholders’ Equity

The Board of Directors declared a 5% stock dividend which was paid on January 29, 2004 to shareholders of record on January 15, 2004. The number of shares issued was 53,843 with a market value of $16.09 for a total decrease in retained earnings of $866,334. Cash paid in lieu of stock for fractional shares totaled $5,850.

During the first six months of 2004, employees exercised stock options for which 41,264 shares of stock have been issued. Our Board of Directors authorized in the first quarter the repurchase of up to 100,000 shares of the outstanding shares of stock in the company. No purchases have been made since that authorization.

Liquidity and Sources of Capital

At June 30, 2004, our liquid assets, consisting of cash and due from banks and Federal funds sold, amounted to $2,507,674, representing 2.1% of total assets. Short-term investments (which carry terms of less than 90 days and could be considered a cash equivalent) and available for sale securities equaled $39,150,410, or 32.2% of total assets. These securities provide a secondary source of liquidity because they can be converted into cash in a timely manner. Our ability to maintain and expand our deposit base and borrowing capabilities also serves as a source of liquidity. For the six months ended June 30, 2004, total deposits increased by $11,873,823, representing an increase of 13%, or 25% on an annualized basis. Growth for the year thus far is not necessarily indicative of expected growth for the remainder of the year. We closely monitor and seek to maintain appropriate levels of interest-earning assets and interest-bearing liabilities so that maturities of assets are such that adequate funds are provided to meet customer withdrawals and loan demand.

We plan to meet future cash needs through the liquidation of temporary investments, maturities of loans and investment securities, and generation of deposits. In addition, the bank maintains two unsecured lines of credit from correspondent banks, one in the amount of $4,670,000 and another for $1,800,000. The bank is also a member of the FHLB, from which additional applications may be made for borrowing capabilities, if needed.

The bank currently maintains a level of capitalization in excess of the minimum capital requirements set by the regulatory agencies. Despite anticipated asset growth, we expect capital ratios to continue to be adequate for the next two to three years. However, no assurances can be given in this regard, as rapid growth, deterioration in loan quality, and operating losses, or a combination of these factors, could change our capital position in a relatively short period of time.

Below is a table that reflects the leverage and risk-based regulatory capital ratios of the bank at June 30, 2004:

				Well-Capitalized			Minimum
	Ratio			Requirement			Requirement
Tier 1 capital		10.49	%		6.00	%		4.0%
Total capital		11.70	%		10.00	%		8.0%
Tier 1 leverage ratio		7.62	%		5.00	%		4.0%

Off-Balance Sheet Risk

Through the operations of our bank, we have made contractual commitments to extend credit in the ordinary course of our business activities. These commitments are legally binding agreements to lend money to our customers at predetermined interest rates for a specified period of time. At June 30, 2004, we had issued commitments to extend credit of $28,373,000 through various types of commercial lending arrangements and we had $803,000 in standby letters of credit issued, the fair value of which is insignificant. We evaluate each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by us upon extension of credit, is based on our credit evaluation of the borrower. Collateral varies but may include accounts receivable, inventory, property, plant and equipment, commercial and residential real estate. We manage the credit risk on these commitments by subjecting them to normal underwriting and risk management processes.

Item 3. Internal Controls and Procedures

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures as defined in Exchange Act Rule 13a-15(e). Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our current disclosure controls and procedures are effective as of June 30, 2004. There have been no significant changes in our internal controls over financial reporting during the fiscal quarter ended June 30, 2004 that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

The design of any system of controls and procedures is based in part upon certain assumptions about the likelihood of future events. There can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote.

PART II — OTHER INFORMATION

Item 1. Legal Proceedings

Not Applicable

Item 2. Changes in Securities and Use of Proceeds

SMALL BUSINESS ISSUER PURCHASES OF EQUITY SECURITIES


							(d) Maximum Number (or
	(a) Total		(b) Average		(c) Total Number of		Appropriate Dollar
	Number of		Price		Shares (or Units)		Value) of Shares (or
	Shares (or		Paid		Purchased as Part of		Units) that May Yet Be
	Units)		per Share		Publicly Announced		Purchased Under the
Period	Purchased		(or Unit)		Plans or Programs		Plans or Programs
April 1 - 30, 2004		0		n/a		0		100,000
May 1 - 31, 2004		0		n/a		0		100,000
June 1 - 30, 2004		0		n/a		0		100,000
TOTAL		0		n/a		0		100,000

Item 3. Defaults Upon Senior Securities

Not Applicable

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

The annual meeting of shareholders was held on April 30, 2004 for which there were two matters submitted to a vote of security holders. The following describes the matters voted upon at the annual meeting and sets forth the number of votes cast for, against or withheld and the number of abstentions as to each such matter (except as provided below, there were no broker non-votes).

The first matter submitted for a vote of security holders was the election of certain directors. Our board of directors is divided into three classes with each class to be as nearly equal in number as possible. The three classes of directors have staggered terms, so that the terms of only approximately one-third of the board members expire at each annual meeting of shareholders. The current Class II directors are Raymond D. Brown and Anthony E. Jones. The current Class III directors are Thomas H. Lyles, James D. McNair, Russell D. Phelon, and Tommy B. Wessinger. The current Class I directors are Margaret Holley-Taylor, Clark D. Moore, M.D., Donald W. Thompson, and John B. Tomarchio, M.D. The current terms of the Class II directors expired at this year’s annual meeting held April 30, 2004 therefore leaving the Class II directors up for reelection for a three year term. The number of votes for the election of the Class II directors was as follows: There were 971,947 votes for the reelection of Raymond D. Brown and 0 votes withheld from voting on Mr. Brown’s reelection. There were 971,099 votes for the reelection of Anthony E. Jones and 848 votes withheld on Mr.

Jones’ reelection. The terms of the Class III directors will expire at the 2005 Annual Meeting of Shareholders, and the terms of the Class I directors will expire at the 2006 Annual Meeting of Shareholders.

The second matter submitted for a vote to security holders was the ratification of Elliott Davis, LLC as our independent public accountants. There were 965,454 votes for the ratification of Elliott Davis, LLC, 4,063 votes withheld, and 2,430 votes against their ratification.

Both of the above matters were approved and recorded in the Company’s minute book from the annual meeting of shareholders. There were no other matters voted on by the Company’s shareholders at our annual meeting held on April 30, 2004.

Item 5. Other Information

None

Item 6. Exhibits and Report on Form 8-K

(a) Exhibits:

Exhibit Description

31.1 Rule 13a-14(a) Certification of the Chief Executive Officer.

31.2 Rule 13a-14(a) Certification of the Chief Financial Officer.

32 Section 1350 Certifications.

(b) Reports on Form 8-K –

The following reports were filed on Form 8-K during the quarter ended June 30, 2004:

The Company filed a Form 8-K on April 21, 2004 to disclose the issuance of a press release announcing its financial results for the quarter ended March 31, 2004.

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

People's Community Capital Corporation
(Registrant)

By:    /s/ Tommy B. Wessinger
          Tommy B. Wessinger
          Chief Executive Officer

Date: August 9, 2004

By:    /s/ Jean H. Covington
          Jean H. Covington
          Principal Accounting and Chief Financial Officer

Date: August 9, 2004

INDEX TO EXHIBITS

Exhibit
Number Description

31.1 Rule 13a-14(a) Certification of the Chief Executive Officer.

31.2 Rule 13a-14(a) Certification of the Chief Financial Officer.

32 Section 1350 Certifications.

Peoples Community Capital (PPLM) Inactive 10QSB2004 Q2 Quarterly report (small business)

U.S. SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 10-QSB

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