SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    FORM 8-K

                                 CURRENT REPORT


     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


Date of Report (date of earliest event reported):   October 5, 2001


                      First Community Financial Corporation
     -----------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


     North Carolina                   000-26117                 56-2119954
----------------------------        --------------          -------------------
(State or other jurisdiction         (Commission              (IRS Employer
  of incorporation)                  File Number)           Identification No.)


                             708 South Church Street
                        Burlington, North Carolina 27215
                        --------------------------------
                    (Address of principal executive offices)


Registrant's telephone number, including area code:  (336) 227-3631


                                       N/A
          -------------------------------------------------------------
          (Former name or former address, if changed since last report)





Item 5.  Other Events

     The  Board  of  Directors  of  First   Community   Financial   Corporation,
Burlington,  North  Carolina  (the  "Corporation"),   the  holding  company  for
Community Savings Bank, Inc., announced October 5, 2001 that the Corporation has
entered  into a definitive  Merger  Agreement  with  Capital  Bank  Corporation,
Raleigh,  North  Carolina  ("Capital"),  the holding  company for Capital  Bank,
pursuant to which the Corporation will merge with and into Capital, with Capital
being the surviving corporation.  The announcement is contained in a joint press
release from the  Corporation  and Capital  which is attached  hereto as Exhibit
99.1.  Also  attached  as  Exhibit  99.2 is the  Merger  Agreement  between  the
Corporation and Capital.

Item 7.  Financial Statements and Exhibits

         (c)      Exhibits

         (99.1)   Joint Press Release distributed October 5, 2001

         (99.2)   Merger Agreement between Capital and the Corporation
                  dated October 4, 2001



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                                   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 hereunto duly authorized.


                                       FIRST COMMUNITY FINANCIAL CORPORATION


Date: October 12, 2001                 By: /s/ William R. Gilliam
                                           -----------------------------
                                           William R. Gilliam, President
                                           and Chief Executive Officer



                                     Page 3




                                  EXHIBIT INDEX


Exhibit No.         Description
-----------         -----------

 (99.1)             Press Release of the Corporation distributed
                    October 5, 2001

 (99.2)             Merger Agreement between the Corporation and Capital dated
                    October 4, 2001



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