SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D. C. 20549

                                   FORM 10-KSB

                ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

For the Fiscal Year Ended December 31, 2003     Commission File Number 29640

                         COMMUNITY FIRST BANCORPORATION
                 (Name of Small Business Issuer in its Charter)

         South Carolina                                   58-2322486
(State or Other Jurisdiction of             (IRS Employer Identification Number)
Incorporation or Organization)

            3685 Blue Ridge Boulevard, Walhalla, South Carolina 29691
                (Address of Principal Executive Office, Zip Code)

         Issuer's Telephone Number, Including Area Code: (864) 638-2105

Securities Registered Under Section 12(b) of the Act:

                                      None
                                (Title of Class)

Securities Registered Under Section 12(g) of the Act:

                           Common Stock (no par value)
                                (Title of Class)

         Check whether the issuer (1) 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 [ ]

         Check if there is no  disclosure  of  delinquent  filers in response to
Item 405 of  Regulation  S-B contained in this form,  and no disclosure  will be
contained,  to the  best of  registrant's  knowledge,  in  definitive  proxy  or
information statements incorporated by reference in Part III of this Form 10-KSB
or any amendment to this Form 10-KSB. [X]

         State issuer's revenues for the most recent fiscal year.  $14,697,107.

         There is no  established  market  for the  Registrant's  voting  common
equity.  The  Registrant  has  no  non-voting  common  equity  outstanding.  The
aggregate book value of the voting common equity held by non-affiliates on March
1,  2004,  was  approximately  $14,963,291.  As of March  1,  2004,  there  were
2,394,097  shares of the Registrant's  Common Stock, no par value,  outstanding.
For purposes of the  foregoing  calculation  only,  all  directors and executive
officers of the Registrant have been deemed affiliates.

                       DOCUMENTS INCORPORATED BY REFERENCE

     (1)  Portions of the Annual Report to the  Shareholders  for the year ended
          December 31, 2003 - Parts I and II

     (2)  Portions  of the  Registrant's  Proxy  Statement  for the 2004  Annual
          Meeting of Shareholders - Part III

          Transitional Small Business  Disclosure Format.
          Yes __   No X

<PAGE>



                          10-KSB CROSS REFERENCE INDEX

                                     Part I                                 Page
Item 1   Description of Business ........................................     2
Item 2   Description of Property ........................................     9
Item 3   Legal Proceedings ..............................................     9
Item 4   Submission of Matters to a Vote of Security Holders ............     9
                                     Part II
Item 5   Market for Common Equity and Related Stockholder Matters,
           and Small Business Issuer Pruchases of Securities ............     9
Item 6   Management's Discussion and Analysis or Plan of Operation ......     9
Item 7   Financial Statements ...........................................     9
Item 8   Changes In and Disagreements with Accountants ..................     9
           on Accounting and Financial Disclosure .......................     9
Item 8A  Controls and Procedures ........................................     9
                                    Part III
Item 9   Directors and Executive Officers, Promoters and Control
         Persons; Compliance With Section 16(a) of the Exchange Act .....      *
Item 10  Executive Compensation .........................................      *
Item 11  Security Ownership of Certain Beneficial Owners and Management
         and Related Stockholder Matters ................................     10
Item 12  Certain Relationships and Related Transactions .................      *
Item 13  Exhibits and Reports on  Form 8-K ..............................     11
Item 14  Principal Accountant Fees and Services .........................     11

* Incorporated  by reference to the  Registrant's  Proxy  Statement for the 2004
  Annual Meeting of Shareholders

<PAGE>


                           FORWARD LOOKING STATEMENTS

         This report contains "forward-looking statements" within the meaning of
the  securities   laws.  All  statements  that  are  not  historical  facts  are
"forward-looking  statements." You can identify these forward-looking statements
through  the  use of  words  such  as  "may,"  "will,"  "expect,"  "anticipate,"
"believe," "intend," "estimate," "project, " "continue," or other similar words.
Forward-looking statements include, but are not limited to, statements regarding
the Company's future business prospects,  revenues, working capital,  liquidity,
capital  needs,  interest  costs,  income,   business  operations  and  proposed
services.

         These  forward-looking  statements  are based on current  expectations,
estimates and projections about the banking industry,  management's beliefs, and
assumptions made by management.  Such information includes,  without limitation,
discussions  as to estimates,  expectations,  beliefs,  plans,  strategies,  and
objectives  concerning  future  financial  and  operating   performance.   These
statements  are not guarantees of future  performance  and are subject to risks,
uncertainties and assumptions that are difficult to predict.  Therefore,  actual
results  may  differ  materially  from those  expressed  or  forecasted  in such
forward-looking  statements.  The risks and uncertainties  include,  but are not
limited to:

     o    The Company's growth and its ability to maintain growth;

     o    governmental  monetary and fiscal policies, as well as legislative and
          regulatory changes;

     o    the effect of interest  rate changes on the level and  composition  of
          deposits, loan demand and the value of loan collateral and securities;

     o    the effects of competition from other financial institutions operating
          in the Company's  market area and  elsewhere,  including  institutions
          operating  locally,   regionally,   nationally  and   internationally,
          together with  competitors that offer banking products and services by
          mail, telephone and computer and/or the Internet;

     o    failure of assumptions  underlying the  establishment of the allowance
          for loan losses, including the value of collateral securing loans; and

     o    loss of consumer  confidence and economic  disruptions  resulting from
          terrorist activities.

         The Company  undertakes no obligation to publicly  update or revise any
forward-looking  statements,  whether  as a result  of new  information,  future
events or otherwise.  In light of these risks,  uncertainties,  and assumptions,
the forward-looking events discussed in this report might not occur.



<PAGE>

                                     PART I

Item 1.  Description of Business

                              FORM OF ORGANIZATION

         Community  First  Bancorporation  (the  "Company") is a South  Carolina
corporation and a bank holding company incorporated on May 23, 1997. The Company
commenced  operations on October 16, 1997, upon effectiveness of the acquisition
of Community First Bank (the "Bank") as a wholly owned subsidiary. The principal
business of the Company is ownership and operation of the Bank.

                               BUSINESS OF BANKING

General

         The Bank is a South  Carolina  state  bank  which was  incorporated  in
December,  1988, and commenced  operations as a commercial bank in March,  1990.
The  Bank  operates  from  its  offices  in  Walhalla,   Seneca,   Anderson  and
Williamston,  South  Carolina.  The main  office is  located  at 3685 Blue Ridge
Boulevard,  in Walhalla,  South  Carolina;  the Seneca office is located at 1600
Sandifer Boulevard in Seneca, South Carolina;  the Anderson office is located at
4002 Clemson Boulevard in Anderson,  South Carolina;  the Williamston  office is
located  at 208  East  Main  Street  in  Williamston,  South  Carolina;  and the
Westminister  office is located at 1101 East Main  Street,  Westminister,  South
Carolina 29693.

Services and Products Offered

         The Bank  offers a full  array of  commercial  bank  services.  Deposit
services include business and personal checking accounts, NOW accounts,  savings
accounts,  money market  accounts,  various term  certificates  of deposit,  IRA
accounts, and other deposit services.  Most of the Bank's deposits are attracted
from individuals and small  businesses.  The Bank does not offer trust services,
and does not accept brokered deposits.

         The Bank  offers  secured  and  unsecured,  short-to-intermediate  term
loans,  with  floating  and fixed  interest  rates for  commercial  and consumer
purposes.  Consumer loans include generally car loans,  home equity  improvement
loans  (secured  by first and second  mortgages),  personal  expenditure  loans,
education  loans,  and  overdraft  lines of  credit.  Commercial  loans  include
generally short term unsecured loans,  short and  intermediate  term real estate
mortgage  loans,  loans  secured by listed  stocks,  loans  secured by equipment
inventory,  and accounts  receivable.  Management believes that the credit staff
possesses knowledge of the community and lending skills sufficient to enable the
Bank to maintain a sufficient volume of high quality loans.

         Management of the Bank  believes that the loan  portfolio is adequately
diversified.  There are no significant concentrations of loans in any particular
individuals,  industries or groups of related  individuals or industries and the
Bank has no foreign loans. The loan portfolio  consists  primarily of extensions
of credit to businesses  and  individuals in its service areas within Oconee and
Anderson Counties of South Carolina. The economy of this area is diversified and
does not depend on any one industry or group of related  industries.  Management
has  established  loan policies and practices  that include set  limitations  on
loan-to-collateral  value for different  types of collateral,  requirements  for
appraisals,  obtaining and maintaining current credit and financial  information
on borrowers, and credit approvals.

         Other services  offered by the Bank include  residential  mortgage loan
origination  services,  safe deposit boxes, night depository  service,  VISA and
MasterCard charge cards, tax deposits,  sale of U.S.  Treasury bonds,  notes and
bills and other U.S. government securities (through a correspondent),  travelers
checks,  and twenty-four hour automated  teller service.  The ATM is part of the
Cirrus network.

         As  of  December  31,  2003,  local  governmental   deposits  comprised
approximately 17% of the Bank's total deposits.  These deposits are concentrated
among a few local governmental entities and are somewhat volatile. Management of
the Bank has,  however,  taken steps that it believes are sufficient to minimize
to the greatest  extent  possible the impact of such  volatibility on the Bank's
liquidity position,  including  maintaining  membership in the Federal Home Loan
Bank of Atlanta in order to gain access to its credit programs.

                                        2

<PAGE>

Employees

         At December 31, 2003, the Company employed 65 people.

Competition

         The banking laws of South  Carolina  allow  statewide  branching,  and,
therefore, commercial banking in the state is highly competitive. South Carolina
law also permits bank holding  companies in other states with reciprocal laws to
acquire  depository  institutions  in  South  Carolina,  and  most of the  other
financial  institutions  in the  Oconee  and  Anderson  County  areas are branch
offices of large, regional banks. Further,  Congress has enacted the Riegle-Neal
Interstate Banking and Branching Efficiency Act of 1994, which has increased the
ability of bank holding companies and banks to operate across state lines.

         Banks generally compete with other financial  institutions  through the
banking  services and products  offered,  the pricing of services,  the level of
service provided,  the convenience and availability of services,  and the degree
of expertise  and personal  concern  with which  services are offered.  The Bank
encounters  strong  competition  from most of the financial  institutions in the
Bank's market areas, which generally encompass Oconee County and the immediately
surrounding area and Anderson County and the immediately  surrounding  area. The
Bank's  primary  competitors in its Oconee County market area are 17 other banks
and branches of banks and 4 savings and loan  associations  and branches and one
credit union  branch.  The Bank's  primary  competitors  in its Anderson  County
market area are 61 banks and  branches of banks,  and 7 credit  union  branches.
Additionally, in the conduct of certain banking business, the Bank also competes
with consumer finance companies, insurance companies, money market mutual funds,
and other  financial  institutions,  some of which are not  subject  to the same
degree of  regulation  and  restrictions  imposed  upon the Bank.  Many of these
competitors  have  substantially  greater  resources and lending limits than the
Bank and  offer  certain  services,  such as  international  banking  and  trust
services,  that the Bank does not provide. The Bank believes,  however, that its
relatively small size permits it to offer more  personalized  services than many
of its competitors. The Bank attempts to compensate for its lower lending limits
by participating larger loans with other institutions.

                         EFFECT OF GOVERNMENT REGULATION

         Bank  holding  companies  and banks  are  extensively  regulated  under
federal and state law. To the extent that the  following  information  describes
statutory  and  regulatory  provisions,  it is  qualified  in  its  entirety  by
reference to such  statutes and  regulations.  Any change in  applicable  law or
regulation may have a material effect on the business of the Holding Company and
the Bank.

General

         As a bank holding company registered under the Bank Holding Company Act
("BHCA"),  the Company is subject to supervision,  and to regular  inspection by
the Federal  Reserve.  The Company is also  subject to  regulation  by the State
Board. The Bank is a state bank subject to regulation by the State Board and the
FDIC.  The following  discussion  summarizes  certain  aspects of those laws and
regulations  that affect the Company and the Bank.  Proposals to change the laws
and  regulations  governing  the  banking  industry  are  frequently  raised  in
Congress, the state legislature and before the various bank regulatory agencies.
The  likelihood and timing of any changes and the impact such changes might have
on the Company and the Bank are difficult to determine.

         As discussed below under the caption "Gramm-Leach-Bliley Act", Congress
has recently  adopted  extensive  changes in the laws  governing  the  financial
services  industry.  Among the  changes  adopted are  creation of the  financial
holding  company,  a new type of bank  holding  company with powers that greatly
exceed  those of standard  holding  companies,  and  creation  of the  financial
subsidiary,  a subsidiary  that can be used by national banks to engage in many,
though not all, of the same activities in which a financial  holding company may
engage.  The legislation also  establishes the concept of functional  regulation
whereby the various financial activities in which financial  institutions engage
are overseen by the regulator with the relevant regulatory  experience.  Neither
the  Company  nor the Bank has yet made a  decision  as to how to adapt  the new
legislation to its use.  Accordingly,  the following  discussion  relates to the
supervisory and regulatory  provisions that apply to the Company and the Bank as
they currently operate.

                                        3

<PAGE>
         Under the BHCA, the Company's  activities and those of its subsidiaries
are limited to banking, managing or controlling banks, furnishing services to or
performing services for its subsidiaries or engaging in any other activity which
the Federal  Reserve  determines to be so closely related to banking or managing
or controlling banks as to be a proper incident thereto.  The BHCA prohibits the
Company  from  acquiring  direct  or  indirect  control  of more  than 5% of the
outstanding  voting stock or substantially all of the assets of any bank or from
merging or  consolidating  with  another  bank  holding  company  without  prior
approval of the Federal  Reserve.  In making  such  determinations,  the Federal
Reserve is required to consider  whether the performance of such activities by a
bank holding company or its  subsidiaries  can reasonably be expected to produce
benefits to the public such as greater  convenience,  increased  competition  or
gains in  efficiency  that  outweigh  possible  adverse  effects,  such as undue
concentration  of  resources,  decreased  or unfair  competition,  conflicts  of
interest or unsound banking practices.

         Additionally,  the BHCA prohibits the Company from engaging in, or from
acquiring  ownership or control of more than 5% of the outstanding  voting stock
of any  company  engaged in, a  non-banking  business  unless  such  business is
determined by the Federal  Reserve to be so closely  related to banking as to be
properly incident thereto.

         As  discussed  below under  "Gramm-Leach-Bliley  Act",  a bank  holding
company that meets certain  requirements may now qualify as a financial  holding
company  and  thereby  significantly  increase  the  variety of  services it may
provide and the investments it may make.

         In addition to  regulation by the Federal  Reserve under the BHCA,  the
Company is also subject to supervision  and  regulation by the State Board.  The
Company  must  provide  the State  Board with  information  with  respect to its
financial condition, operations,  management, and inter-company relationships of
the Company and its  subsidiaries.  The State Board may also  require such other
information as is necessary to keep itself informed about whether the provisions
of South Carolina law and the  regulations  and orders issued  thereunder by the
State Board have been complied with,  and the State Board may make  examinations
of the Company and its subsidiaries.

Obligations of the Company to its Subsidiary Bank

         A number of obligations  and  restrictions  are imposed on bank holding
companies  and their  depository  institution  subsidiaries  by Federal  law and
regulatory  policy that are designed to reduce  potential  loss  exposure to the
depositors of such  depository  institutions  and to the FDIC insurance funds in
the event the depository  institution  is in danger of becoming  insolvent or is
insolvent.  For example, under the policy of the Federal Reserve with respect to
bank holding company operations,  a bank holding company is required to serve as
a source of financial strength to its subsidiary depository  institutions and to
commit resources to support such  institutions in  circumstances  where it might
not do so absent such policy. In addition,  the "cross-guarantee"  provisions of
the  Federal  Deposit  Insurance  Act,  as  amended  ("FDIA"),  require  insured
depository  institutions under common control to reimburse the FDIC for any loss
suffered or reasonably  anticipated by either the Savings Association  Insurance
Fund ("SAIF") or the Bank  Insurance Fund ("BIF") of the FDIC as a result of the
default of a  commonly  controlled  insured  depository  institution  or for any
assistance  provided  by the FDIC to a commonly  controlled  insured  depository
institution  in  danger  of  default.  The  FDIC  may  decline  to  enforce  the
cross-guarantee  provisions  if it  determines  that a  waiver  is in  the  best
interest  of the  SAIF or the BIF or both.  The  FDIC's  claim  for  damages  is
superior to claims of stockholders of the insured depository  institution or its
holding  company but is subordinate to claims of depositors,  secured  creditors
and  holders of  subordinated  debt  (other  than  affiliates)  of the  commonly
controlled insured depository institutions.

         The FDIA also provides that amounts  received from the  liquidation  or
other resolution of any insured  depository  institution by any receiver must be
distributed (after payment of secured claims) to pay the deposit  liabilities of
the  institution  prior to payment  of any other  general  or  unsecured  senior
liability,   subordinated  liability,  general  creditor  or  stockholder.  This
provision gives depositors a preference over general and subordinated  creditors
and  stockholders  in the event a receiver is appointed to distribute the assets
of the Bank.

         Any capital  loans by a bank holding  company to any of its  subsidiary
banks are  subordinate  in right of payment  to  deposits  and to certain  other
indebtedness of such subsidiary  bank. In the event of a bank holding  company's
bankruptcy,  any  commitment  by the bank  holding  company  to a  federal  bank
regulatory  agency to maintain the capital of a subsidiary  bank will be assumed
by the bankruptcy trustee and entitled to a priority of payment.

                                        4

<PAGE>

Capital Adequacy Guidelines for Bank Holding Companies and State Banks

         The various federal bank regulators,  including the Federal Reserve and
the FDIC,  have adopted  risk-based  capital  requirements  for  assessing  bank
holding company and bank capital adequacy. These standards define what qualifies
as capital and  establish  minimum  capital  standards in relation to assets and
off-balance sheet exposures, as adjusted for credit risks.

         The Company's and the Bank's  December 31, 2003 ratios are set forth in
the Annual Report to Shareholders for the year ended December 31, 2003 under the
caption "Management's Discussion and Analysis -- Capital Resources."

         Failure to meet capital  guidelines could subject the Bank to a variety
of enforcement remedies, including termination of deposit insurance by the FDIC.

         The risk-based  capital standards of both the Federal Reserve Board and
the FDIC explicitly identify  concentrations of credit risk and the risk arising
from non-traditional  activities,  as well as an institution's ability to manage
these  risks,  as  important  factors to be taken into  account by the agency in
assessing an institution's overall capital adequacy. The capital guidelines also
provide that an institution's exposure to a decline in the economic value of its
capital due to changes in interest rates be considered by the agency as a factor
in  evaluating a bank's  capital  adequacy.  The Federal  Reserve Board also has
recently issued  additional  capital  guidelines for bank holding companies that
engage in certain trading activities.

Payment of Dividends

         The  Company is a legal  entity  separate  and  distinct  from its bank
subsidiary.  Most of the  revenues of the  Company  are  expected to result from
dividends  paid to the Company by the Bank.  There are statutory and  regulatory
requirements  applicable to the payment of dividends by subsidiary banks as well
as by the Company to its  stockholders.  It is not anticipated  that the Company
will pay cash dividends in the near future.

Certain Transactions by the Company with its Affiliates

         Federal  law  regulates   transactions  between  the  Company  and  its
affiliates,  including  the  amount of the  Bank's  loans to or  investments  in
nonbank affiliates and the amount of advances to third parties collateralized by
securities of an affiliate. Further, a bank holding company and its subsidiaries
are prohibited  from engaging in certain tie-in  arrangements in connection with
any extension of credit, lease or sale of property or furnishing of services.

FDIC Insurance Assessments

         Because the Bank's deposits are insured by the BIF, the Bank is subject
to  insurance  assessments  imposed by the FDIC.  Since  January  1,  1997,  the
assessments imposed on all FDIC deposits for deposit insurance have an effective
rate ranging from 0 to 27 basis points per $100 of insured  deposits,  depending
on the institution's capital position and other supervisory factors. Legislation
enacted in 1996 also requires that both  SAIF-insured  and BIF-insured  deposits
pay a pro rata  portion of the  interest  due on the  obligations  issued by the
Financing Corporation ("FICO"). The FICO assessment is based on deposit balances
and is adjusted  quarterly  to reflect  changes in the  assessment  bases of the
respective  funds based on  quarterly  Call Report and Thrift  Financial  Report
submissions.

Regulation of the Bank

         The Bank is also subject to  regulation  and  examination  by the South
Carolina state bank examiners. In addition, the Bank is subject to various other
state and  federal  laws and  regulations,  including  state  usury  laws,  laws
relating  to  fiduciaries,  consumer  credit  laws and laws  relating  to branch
banking. The Bank's loan operations are also subject to certain federal consumer
credit laws and regulations promulgated thereunder,  including,  but not limited
to: the federal  Truth-In-Lending  Act, governing disclosures of credit terms to
consumer  borrowers;  the Home  Mortgage  Disclosure  Act,  requiring  financial
institutions to provide certain  information  concerning their mortgage lending;
the  Equal  Credit  Opportunity  Act  and  the  Fair  Housing  Act,  prohibiting
discrimination on the basis of certain  prohibited  factors in extending credit;
the Fair Credit Reporting Act, governing the use and provision of information to
credit  reporting  agencies;  the Bank Secrecy Act,  dealing  with,  among other
things,  the  reporting  of  certain  currency  transactions;  and the Fair Debt
Collection Act, governing the manner in which consumer debts may be collected by
collection agencies.  The deposit operations of the Bank are also subject to the
Truth in Savings Act, requiring certain  disclosures about rates paid on savings
accounts;  the Expedited Funds  Availability Act, which deals with disclosure of
the availability of funds deposited in accounts and the collection and return of
checks by banks;  the Right to Financial  Privacy Act,  which  imposes a duty to
maintain  certain   confidentiality   of  consumer  financial  records  and  the
Electronic  Funds Transfer Act and  regulations  promulgated  thereunder,  which
govern  automatic   deposits  to  and  withdrawals  from  deposit  accounts  and
customers'  rights and  liabilities  arising  from the use of  automated  teller
machines and other electronic banking services.

                                        5

<PAGE>

         The  Bank  is  also  subject  to  the  requirements  of  the  Community
Reinvestment  Act (the  "CRA").  The CRA imposes on  financial  institutions  an
affirmative  and  ongoing  obligation  to meet the credit  needs of their  local
communities,  including low- and moderate-income neighborhoods,  consistent with
the safe and sound operation of those institutions. Each financial institution's
actual performance in meeting community credit needs is evaluated as part of the
examination process, and also is considered in evaluating mergers,  acquisitions
and applications to open a branch or facility.

Other Safety and Soundness Regulations

         Prompt  Corrective  Action.  The federal  banking  agencies  have broad
powers under  current  federal law to take prompt  corrective  action to resolve
problems of insured depository institutions.  The extent of these powers depends
upon whether the  institutions in question are "well  capitalized,"  "adequately
capitalized,"    "undercapitalized,"    "significantly    undercapitalized"   or
"critically undercapitalized."

         A bank that is "undercapitalized"  becomes subject to provisions of the
FDIA restricting payment of capital distributions and management fees; requiring
FDIC to monitor the condition of the bank; requiring submission by the bank of a
capital  restoration  plan;  restricting  the  growth of the  bank's  assets and
requiring  prior  approval  of  certain  expansion  proposals.  A bank  that  is
"significantly undercapitalized" is also subject to restrictions on compensation
paid  to  senior  management  of  the  bank,  and a  bank  that  is  "critically
undercapitalized"  is further  subject to  restrictions on the activities of the
bank and restrictions on payments of subordinated  debt of the bank. The purpose
of these  provisions is to require banks with less than adequate  capital to act
quickly to restore their capital and to have the FDIC move promptly to take over
banks that are unwilling or unable to take such steps.

         Brokered Deposits.  Under current FDIC regulations,  "well capitalized"
banks may accept brokered deposits without restriction, "adequately capitalized"
banks may accept  brokered  deposits  with a waiver  from the FDIC  (subject  to
certain  restrictions on payment of rates), while  "undercapitalized"  banks may
not accept brokered  deposits.  The regulations  provide that the definitions of
"well capitalized", "adequately capitalized" and "undercapitalized" are the same
as the  definitions  adopted by the agencies to implement the prompt  corrective
action provisions described in the previous paragraph.

Interstate Banking

         Under the Riegle-Neal  Interstate Banking and Branching  Efficiency Act
of 1994 the Company and any other  adequately  capitalized  bank holding company
located in South  Carolina can acquire a bank located in any other state,  and a
bank  holding  company  located  outside  South  Carolina  can acquire any South
Carolina-based  bank, in either case subject to certain  deposit  percentage and
other  restrictions.  The legislation  also provides that, in any state that has
not previously elected to prohibit  out-of-state banks from operating interstate
branches within its territory,  adequately  capitalized and managed bank holding
companies can  consolidate  their  multistate bank operations into a single bank
subsidiary and branch interstate through  acquisitions.  De novo branching by an
out-of-state bank is permitted only if it is expressly  permitted by the laws of
the host state. The authority of a bank to establish and operate branches within

                                        6

<PAGE>

a state will continue to be subject to applicable  state branching  laws.  South
Carolina  law was amended,  effective  July 1, 1996,  to permit such  interstate
branching but not de novo branching by an  out-of-state  bank.

         The  Riegel-Neal  Act,  together  with  legislation  adopted  in  South
Carolina,  resulted in a number of South  Carolina banks being acquired by large
out-of-state  bank  holding  companies.  Size  gives the  larger  banks  certain
advantages in competing for business from larger corporations.  These advantages
include  higher  lending limits and the ability to offer services in other areas
of South  Carolina and the region.  As a result,  the Company does not generally
attempt to compete  for the banking  relationships  of large  corporations,  but
concentrates its efforts on small to medium-sized businesses and on individuals.
The  Company  believes it has  competed  effectively  in this market  segment by
offering quality, personal service.

Gramm-Leach-Bliley Act

         The  Gramm-Leach-Bliley  Act,  which  makes it easier for  affiliations
between banks,  securities firms and insurance  companies to take place,  became
effective  in March  2000.  The Act  removes  Depression-era  barriers  that had
separated  banks and  securities  firms,  and seeks to  protect  the  privacy of
consumers' financial information.

         Under provisions of the new legislation and regulations  adopted by the
appropriate regulators, banks, securities firms and insurance companies are able
to structure new affiliations  through a holding company  structure or through a
financial subsidiary. The legislation creates a new type of bank holding company
called a "financial  holding  company" which has powers much more extensive than
those of standard holding companies.  These expanded powers include authority to
engage in "financial activities," which are activities that are (1) financial in
nature;  (2)  incidental  to  activities  that are  financial in nature;  or (3)
complimentary  to a  financial  activity  and that do not  impose  a safety  and
soundness risk. Significantly,  the permitted financial activities for financial
holding  companies include authority to engage in merchant banking and insurance
activities,  including insurance portfolio investing. A bank holding company can
qualify as a financial holding company and expand the services it offers only if
all of its subsidiary depository institutions are well-managed, well-capitalized
and  have  received  a  rating  of   "satisfactory"   on  their  last  Community
Reinvestment Act examination.

         The  legislation  also  creates  another  new type of  entity  called a
"financial subsidiary." A financial subsidiary may be used by a national bank or
a group of national banks to engage in many of the same activities permitted for
a financial holding company, though several of these activities,  including real
estate development or investment,  insurance or annuity underwriting,  insurance
portfolio  investing and merchant  banking,  are reserved for financial  holding
companies.  A bank's  investment  in a financial  subsidiary  affects the way in
which the bank calculates its regulatory capital, and the assets and liabilities
of financial  subsidiaries  may not be consolidated  with those of the bank. The
bank must also be certain that its risk  management  procedures  are adequate to
protect it from  financial and  operational  risks created both by itself and by
any financial subsidiary.  Further, the bank must establish policies to maintain
the separate corporate  identities of the bank and its financial  subsidiary and
to prevent each from becoming liable for the obligations of the other.

                                        7
<PAGE>

         The Act also  establishes  the  concept  of  "functional  supervision,"
meaning that  similar  activities  should be  regulated  by the same  regulator.
Accordingly,  the Act spells out the regulatory authority of the bank regulatory
agencies,  the Securities and Exchange Commission and state insurance regulators
so that each type of activity is  supervised by a regulator  with  corresponding
expertise.  The Federal  Reserve Board is intended to be an umbrella  supervisor
with the  authority  to  require a bank  holding  company or  financial  holding
company  or any  subsidiary  of  either  to  file  reports  as to its  financial
condition,  risk management  systems,  transactions with depository  institution
subsidiaries  and  affiliates,  and compliance  with any federal law that it has
authority to enforce.

         Although the Act reaffirms that states are the regulators for insurance
activities  of  all  persons,  including   federally-chartered  banks,  the  Act
prohibits  states from preventing  depository  institutions and their affiliates
from conducting insurance activities.

         The Act also  establishes  a minimum  federal  standard  of  privacy to
protect the confidentiality of a consumer's  personal financial  information and
gives the consumer the power to choose how personal financial information may be
used by financial  institutions.

         The Act and the  regulations  adopted  pursuant  to the Act  create new
opportunities  for the Company to offer  expanded  services to  customers in the
future,  though  the  Company  has not yet  determined  what the  nature  of the
expanded  services  might be or when the Company might find it feasible to offer
them. The Act has increased competition from larger financial  institutions that
are  currently  more  capable  than  the  Company  of  taking  advantage  of the
opportunity  to  provide a  broader  range of  services.  However,  the  Company
continues to believe that its commitment to providing high quality, personalized
service to customers will permit it to remain competitive in its market area.

Sarbanes-Oxley Act of 2002

         The  Sarbanes-Oxley  Act was  signed  into  law on July 30,  2002,  and
mandated  extensive reforms and requirements for public  companies.  The SEC has
adopted   extensive  new  regulations   pursuant  to  the  requirements  of  the
Sarbanes-Oxley  Act. The  Sarbanes-Oxley  Act and the SEC's new regulations have
increased  the  Company's  cost of  doing  business,  particularly  its fees for
internal  and  external  audit  services  and  legal  services,  and the law and
regulations  are  expected to continue to do so.  However,  the Company does not
believe that it will be affected by  Sarbanes-Oxley  and the new SEC regulations
in ways that are materially different or more onerous than those of other public
companies of similar size and in similar businesses.

Legislative Proposals

         Proposed  legislation which could significantly  affect the business of
banking is  introduced  in Congress  from time to time.  Management  of the Bank
cannot predict the future course of such  legislative  proposals or their impact
on the Company and the Bank should they be adopted.

Fiscal and Monetary Policy

         Banking is a business  which depends to a large extent on interest rate
differentials. In general, the difference between the interest paid by a bank on
its deposits and its other borrowings and the interest received by a bank on its
loans  and  securities  holdings  constitutes  the  major  portion  of a  bank's
earnings.  Thus, the earnings and growth of the Company and the Bank are subject
to the influence of economic  conditions  generally,  both domestic and foreign,
and also to the  monetary  and  fiscal  policies  of the  United  States and its
agencies,  particularly the Federal Reserve.  The Federal Reserve  regulates the
supply of money through various means,  including open-market dealings in United
States government  securities,  the discount rate at which banks may borrow from
the Federal Reserve,  and the reserve  requirements on deposits.  The nature and
timing of any changes in such  policies  and their impact on the Company and the
Bank cannot be predicted.

Further Information

         Further  information  about the business of the Company and the Bank is
set  forth in this  Form  10-KSB  under  Item 6  -"Management's  Discussion  and
Analysis or Plan of Operation."


                                        8
<PAGE>

Item 2.  Description of Property

         The  Bank  owns in fee  simple  with no  major  encumbrances,  the real
property  where its main and  branch  offices  are  located  at 3685 Blue  Ridge
Boulevard,  Walhalla,  South Carolina;  1600 Sandifer Boulevard in Seneca, South
Carolina;  4002 Clemson  Boulevard in Anderson,  South  Carolina;  208 East Main
Street  in  Williamston,   South   Carolina;   and  1101  East  Main  Street  in
Westminister,  South Carolina. Construction of the permanent office facility for
the Williamston branch was completed in February,  2003. The Westminister branch
is currently  operating in a modular  facility.  Management of the Bank believes
the Bank's facilities are suitable and adequate for the Company's needs.

Item 3.  Legal Proceedings

         The Bank is from  time to time a party  to  various  legal  proceedings
arising in the ordinary  course of business,  but  management of the Bank is not
aware  of  any  pending  or  threatened   litigation  or  unasserted  claims  or
assessments  that are  expected  to  result in  losses,  if any,  that  would be
material to the Bank's business and operations.

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

          No matters were  submitted for a vote of the security  holders  during
the fourth quarter of 2003.

                                     PART II

Item 5. Market for Common Equity, Related Stockholder Matters and Small Business
        Issuer Purchases of Securities

         The  information  set forth under the caption  "Market for Common Stock
and Dividends" and in Note G to the Company's  Consolidated Financial Statements
under the caption "Restrictions on Subsidiary  Dividends,  Loans or Advances" in
the Annual  Report to  Shareholders  for the year ended  December  31, 2003 (the
"2003 Annual Report") is incorporated  herein by reference.  The information set
forth in Part I,  Item 1 of this  Form  10-KSB  under  the  caption  "Effect  of
Government  Regulation -- Payment of Dividends" is also  incorporated  herein by
reference.

         The information  required by Item 201(d) of Regulation S-B is set forth
in Item 11 of this Form 10-KSB.

         Neither  the Company nor any  "affiliated  purchaser"  as defined in 17
C.F.R.  240.10b-18(a)(3)  purchased  any  shares  or units  of any  class of the
Company's  equity  securities  that is registered  pursuant to Section 12 of the
Securities Exchange Act of 1934 during the fourth quarter of 2003.  Accordingly,
no disclosure is required pursuant to 17 C.F.R. Section 228.703.

Item 6. Management's Discussion and Analysis or Plan of Operation

         The  information set forth under the caption  "Management's  Discussion
and Analysis" in the 2003 Annual Report is incorporated herein by reference.

Item 7.  Financial Statements

         The Consolidated  Financial  Statements,  including Notes thereto,  set
forth in the 2003 Annual Report are incorporated herein by reference.

Financial Statement Schedule

        Report of Donald G. Jones and Company, P.A. (predecessor accountant)

                          INDEPENDENT AUDITORS' REPORT


The Shareholders and Board of Directors
    of Community First Bancorporation

         We have audited the  accompanying  consolidated  statements  of income,
changes in shareholders'  equity, and cash flows for the year ended December 31,
2001  of  Community  First   Bancorporation  and  subsidiary.   These  financial
statements   are  the   responsibility   of  the   Company's   management.   Our
responsibility  is to express an opinion on these financial  statements based on
our audit.

                                       9
<PAGE>

         We conducted our audit in accordance with auditing standards  generally
accepted in the United States of America.  Those standards  require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audit  provides  a
reasonable basis for our opinion.

         In our opinion,  the  financial  statements  referred to above  present
fairly,  in all material  respects,  the consolidated  results of operations and
cash flows of Community First  Bancorporation  and subsidiary for the year ended
December 31, 2001, in conformity with accounting  principles  generally accepted
in the United States of America.



                                             s/Donald G. Jones and Company, P.A.


Donald G. Jones and Company, P.A.
Certified Public Accountants
Columbia, South Carolina
February 7, 2002

Item 8.   Changes  In and  Disagreements  with  Accountants  on  Accounting  and
          Financial Disclosure

          None.

Item 8A.  Controls and Procedures.

         Based on the evaluation required by 17 C.F.R. Section  240.13a-15(b) or
240.15d-15(b) of the Company's disclosure controls and procedures (as defined in
17  C.F.R.  Sections  240.13a-15(e)  or  240.15d-15(e)),   the  Company's  chief
executive  officer and chief financial  officer concluded that the effectiveness
of such  controls and  procedures,  as of the end of the period  covered by this
annual report, was adequate.

         No disclosure is required under 17 C.F.R. Section 228.308.

                                        10
<PAGE>
                                    PART III

Item 9.   Directors,   Executive   Officers,   Promoters  and  Control  Persons;
          Compliance with Section 16(a) of the Exchange Act

         The information set forth under the captions "Management of the Company
- Management Security Ownership, Positions with the Company and Terms of Office"
and " -  Directors'  Business  Experience  for the Past Five Years" and "Section
16(a) Beneficial  Ownership  Reporting  Compliance" in the Proxy Statement to be
used in  conjunction  with the 2004 Annual Meeting of  Shareholders  (the "Proxy
Statement"),  which will be filed  within 120 days of the  Corporation's  fiscal
year end, is incorporated herein by reference.

         Audit Committee Financial Expert

         The Company's  board of directors has determined  that the Company does
not have an "audit committee  financial expert," as that term is defined by Item
401(e) of Regulation S-B promulgated by the Securities and Exchange  Commission,
serving on its audit committee.  The Company's audit committee is a committee of
directors who are elected by the  shareholders  and who are  independent  of the
Company and its  management.  After reviewing the experience and training of all
of the  Company's  independent  directors,  the board of directors has concluded
that  no  independent  director  meets  the  SEC's  very  demanding  definition.
Therefore, it would be necessary to find a qualified individual willing to serve
as both a  director  and  member of the  audit  committee  and have that  person
elected  by the  shareholders  in order to have an  "audit  committee  financial
expert" serving on the Company's audit committee.  The Company's audit committee
is,  however,  authorized to use  consultants  to provide  financial  accounting
expertise in any instance where members of the committee believe such assistance
would be useful. Accordingly, the Company does not believe that it needs to have
an "audit committee financial expert" on its audit committee.

         Code of Ethics

         The  Company  has  adopted a code of ethics  (as  defined  by 17 C.F.R.
228.406) that applies to its principal executive officer and principal financial
officer.  The Company will provide a copy of the code of ethics, free of charge,
to any person  upon  written  request  to  Benjamin  L.  Hiott,  Executive  Vice
President, Community First Bancorporation,  3685 Blue Ridge Boulevard, Walhalla,
South Carolina 29691.

Item 10.  Executive Compensation

         The information set forth under the caption  "Management  Compensation"
in the Proxy Statement is incorporated herein by reference.

Item 11.  Security Ownership of Certain Beneficial Owners and Management
          and Related Stockholder Matters

         The  information  set forth under the caption  "Security  Ownership  of
Certain Beneficial Owners" and "Management of the Company -- Management Security
Ownership,  Positions  with the  Company  and  Terms  of  Office"  in the  Proxy
Statement is incorporated herein by reference.

Equity Compensation Plan Information

         The following  table sets forth  aggregated  information as of December
31, 2003 about all of the Company's  compensation  plans  (including  individual
compensation  arrangements)  under which  equity  securities  of the Company are
authorized for issuance:
<TABLE>
<CAPTION>
Plan category                   Number of securities         Weighted-average             Number of securities
                                to be issued upon            exercise price of            remaining available
                                exercise of                  outstanding options,         for future issuance
                                outstanding options,         warrants and rights          under equity
                                warrants and rights                                       compensation plans
                                                                                          (excluding securities
                                                                                          reflected in column(a))
                                (a)                          (b)                          (c)
------------------------------- ---------------------------- ---------------------------- ----------------------------
<S>                             <C>                          <C>                          <C>
Equity compensation
plans approved by
security holders                288,526                      $ 9.79                       275,822

Equity compensation
plans not approved
by security holders                   0                           0                             0
                                -------                      ------                       -------
Total                           288,526                      $ 9.79                       275,822
</TABLE>

Item 12.  Certain Relationships and Related Transactions

          The information set forth under the caption "Certain Relationships and
Related   Transactions"  in  the  Proxy  Statement  is  incorporated  herein  by
reference.

                                       11
<PAGE>

                                    PART IV

Item 13.  Exhibits and Reports on Form 8-K

(a) Exhibit No.(from              Description
    item 601 of
    Regulation S-B)

         3.1                      Articles   of   Incorporation,    as   amended
                                  (Incorporated   by  reference  to  the  Annual
                                  Report  on  Form  10-KSB  for the  year  ended
                                  December 31, 1998)

         3.2                      By-laws  (Incorporated  by  reference  to  the
                                  Annual  Report  on Form  10-KSB  for the  year
                                  ended December 31, 1997 (the "1997 10-KSB"))

         4                        Specimen Stock certificate (Incorporated by
                                  reference to the 1997 10-KSB)

         10.1                     Community First Bank 1989 Incentive
                                  Stock Option Plan (Incorporated by reference
                                  to the 1997 10-KSB)

         10.2                     Community First Bank Incentive Stock
                                  Agreement with Frederick D.Shepherd, Jr.
                                  (Incorporated by reference to the 1997 10-KSB)

         10.3                     Community First Bancorporation 1998 Stock
                                  Option Plan (Incorporated by reference to
                                  Proxy Statement filed in connection with the
                                  1998 Annual Meeting of Shareholders)

         10.4                     Split-Dollar   Insurance   Agreement   between
                                  Community Fist Bank and Frederick D. Shepherd,
                                  Jr.  (Incorporated  by reference to the Annual
                                  Report  on  Form  10-KSB  for the  year  ended
                                  December 31, 2001)

         13                       Portions of the Annual Report to Shareholders
                                  for the Year Ended December 31, 2003

         21                       Subsidiaries of the registrant

         23.1                     Consent of J. W. Hunt & Company, L.L.P.

         23.2                     Consent of Donald G. Jones and Company, P.A.

         31                       Rule 13a-14(a)/15d-14(a) Certifications

         32                       18 U.S.C. Section 1350 Certifications

(b)  Reports on Form 8-K.  No  reports on From 8-K were filed  during the fourth
     quarter of 2003.

Item 14.  Principal Accountant Fees and Services

         The  information  set  forth  under  the  caption  "Independent  Public
Accountants  - Fees  Paid  to  Independent  Auditors"  and "--  Audit  Committee
Pre-Approval  of  Audit  and  Permissible   Non-Audit  Services  of  Independent
Auditors" in the Proxy Statement is incorporated herein by reference.

                                       12

<PAGE>

SIGNATURES

         In accordance  with Section 13 or 15(d) 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 FIRST BANCORPORATION

                                   s/Frederick D. Shepherd, Jr.
Date: March 25, 2004           By:-------------------------------------------
                                   Frederick D. Shepherd, Jr.
                                   Its President

         In accordance  with the Exchange Act, this report has been signed below
by the following  persons on behalf of the  Registrant and in the capacities and
on the dates indicated.

<TABLE>
<CAPTION>
Signature                                        Capacity                                         Date

<S>                                              <C>                                              <C>

-------------------------------                  Vice Chairman and Director                       March __, 2004
(Larry S. Bowman)

s/William M. Brown
-------------------------------                  Director and Secretary                           March 25, 2004
(William M. Brown)


-------------------------------                  Director                                         March __, 2004
(Robert H. Edwards)

s/Blake L. Griffith
-------------------------------                  Director                                         March 25, 2004
(Blake L. Griffith)

s/John R. Hamrick
-------------------------------                  Director                                         March 25, 2004
(John R. Hamrick)

s/James E. McCoy
-------------------------------                  Chairman and Director                            March 25, 2004
(James E. McCoy)

s/Frederick D. Shepherd, Jr.
-------------------------------                  Director, President, Chief                       March 25, 2004
(Frederick D. Shepherd, Jr.)                     Executive Officer, Treasurer and
                                                 Principal Financial Officer

s/Gary V. Thrift
-------------------------------                  Director                                         March 25, 2004
(Gary V. Thrift)


-------------------------------                  Director                                         March __, 2004
(James E. Turner)

s/Charles L. Winchester
-------------------------------                  Director                                         March 25, 2004
(Charles L. Winchester)
</TABLE>

                                       13

<PAGE>

                                  EXHIBIT INDEX


         3.1                      Articles   of   Incorporation,    as   amended
                                  (Incorporated   by  reference  to  the  Annual
                                  Report  on  Form  10-KSB  for the  year  ended
                                  December 31, 1998)

         3.2                      By-laws  (Incorporated  by  reference  to  the
                                  Annual  Report  on Form  10-KSB  for the  year
                                  ended December 31, 1997 (the "1997 10-KSB"))

         4                        Specimen Stock certificate (Incorporated by
                                  reference to the 1997 10-KSB)

         10.1                     Community First Bank 1989 Incentive
                                  Stock Option Plan (Incorporated by reference
                                  to the 1997 10-KSB)

         10.2                     Community First Bank Incentive Stock
                                  Agreement with Frederick D.Shepherd, Jr.
                                  (Incorporated by reference to the 1997 10-KSB)

         10.3                     Community First Bancorporation 1998 Stock
                                  Option Plan (Incorporated by reference to
                                  Proxy Statement filed in connection with the
                                  1998 Annual Meeting of Shareholders)

         10.4                     Split-Dollar   Insurance   Agreement   between
                                  Community Fist Bank and Frederick D. Shepherd,
                                  Jr.  (Incorporated  by reference to the Annual
                                  Report  on  Form  10-KSB  for the  year  ended
                                  December 31, 2001)

         13                       Portions of the Annual Report to Shareholders
                                  for the Year Ended December 31, 2003

         21                       Subsidiaries of the registrant

         23.1                     Consent of J. W. Hunt & Company, L.L.P.

         23.2                     Consent of Donald G. Jones and Company, P.A.

         31                       Rule 13a-14(a)/15d-14(a) Certifications

         32                       18 U.S.C. Section 1350 Certifications



                                       14