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, 1999     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. [ ]

         State issuer's revenues for the most recent fiscal year.  $11,063,914

         The aggregate  market value of the voting and non-voting  common equity
held by  non-affiliates on March 1, 2000, was  approximately  $26,783,290. As of
March 1, 2000, there were 2,003,496 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, 1999 - Parts I and II

     (2)  Portions  of the  Registrant's  Proxy  Statement  for the 2000  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 ........................................      1
Item 2   Description of Property ........................................      8
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 .......      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 ..................
           on Accounting and Financial Disclosure .......................      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 .      *
Item 12  Certain Relationships and Related Transactions .................      *
                                     Part IV
Item 13  Exhibits and Reports on  Form 8-K ..............................     10

* Incorporated  by reference to the  Registrant's  Proxy  Statement for the 2000
  Annual Meeting of Shareholders

<PAGE>

                                     PART I

         This Annual Report on Form 10-KSB contains  forward-looking  statements
as  defined  by  the  Private   Securities   Litigation   Reform  Act  of  1995.
Forward-looking  statements  should be read with the  cautionary  statements and
important  factors  included in this Form  10-KSB.  (See Item 6. -  Management's
Discussion and Analysis of Financial  Condition and Results of Operations,  Safe
Harbor  for  Forward-Looking  Statements.)  Forward-looking  statements  include
statements concerning plans,  objectives,  goals,  strategies,  future events or
performance and underlying assumptions and other statements which are other than
statements  of  historical  facts.  Such  forward-  looking  statements  may  be
identified,   without  limitation,  by  the  use  of  the  words  "anticipates,"
"estimates,"  "expects," "intends," "plans," "predicts," "projects," and similar
expressions.  The Company's expectations,  beliefs and projections are expressed
in good  faith and are  believed  by the  Company  to have a  reasonable  basis,
including without limitation,  management's  examination of historical operating
trends,  data  contained in the Company's  records and other data available from
third  parties,  but there can be no assurance that  management's  expectations,
beliefs or projections will result or be achieved or accomplished.

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 and  Anderson,  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;  and the  Anderson  office is located at 4002  Clemson
Boulevard in  Anderson,  South  Carolina.  The Bank also plans to open an office
later in 2000 at 208 East Main Street in Williamston, South Carolina.

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.

<PAGE>

         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,  1999,  local  governmental   deposits  comprised
approximately 27% 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.

Employees

         At December 31, 1999, the Company employed 42 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 County area 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 thirteen other
banks and branches of banks and six savings and loan  associations  and branches
and one credit union  branch.  The Bank's  primary  competitors  in its Anderson
County  market area are  twenty-six  banks and  branches of banks,  five savings
institution  branches  and seven  credit union  branches.  Additionally,  in the
conduct of certain banking business,  the Bank also competes with credit unions,
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.



                                        2

<PAGE>

                         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 "Recent Legislation", 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.

         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 "Recent  Legislation",  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.

                                        3

<PAGE>

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  would give  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.

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, 1999 ratios are set forth in
the Annual Report to Shareholders for the year ended December 31, 1999 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

                                        4

<PAGE>

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.  However,
because  legislation  enacted  in  1996  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 FDIC is currently
assessing  BIF-insured  deposits  an  additional  1.26 basis  points per $100 of
deposits,  and SAIF-insured deposits an additional 6.30 basis points per $100 of
deposits,  to cover those  obligations.  The FICO assessment is based on deposit
balances  and will be 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  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 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.

Recent Legislation

         On November 12, 1999, the President signed the Gramm-Leach-Bliley  Act,
which  makes it easier for  affiliations  between  banks,  securities  firms and
insurance companies to take place. The Act removes Depression-era  barriers that
had separated  banks and securities  firms,  and seeks to protect the privacy of
consumers' financial information.  Most of the provisions of the Act require the
applicable   regulators  to  adopt  regulations  in  order  to  implement  these
provisions.

         Under provisions of the new legislation,  which are effective March 11,
2000, 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) identical 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 privacy  provisions of the Act will not go
into effect until after adoption of implementing  regulations by various federal
agencies.

         The Company  anticipates that the Act and the regulations  which are to
be adopted pursuant to the Act will be likely to create new opportunities for it
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 Company  further  expects that
the Act will increase  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.

Legislative Proposals

         Other  proposed   legislation  which  could  significantly  affect  the
business of banking has been  introduced  or may be  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.

Item 2.  Description of Property

         (a) 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; and 4002 Clemson Boulevard in Anderson,  South Carolina. The Bank also
owns in fee simple real property at 208 East Main Street in  Williamston,  South
Carolina, where it plans to open a branch in a temporary facility later in 2000.
Management of the Bank believes the Bank's  facilities are suitable and adequate
for the Company's needs.

                                        8

<PAGE>

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 1999.

                                     PART II

Item 5.  Market for Common Equity and Related Stockholder Matters

         The  information  set forth under the caption  "Market for Common Stock
and Dividends" and in Note H 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, 1999 (the
"1999 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.

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 1999 Annual Report is incorporated herein by reference.

Item 7.  Financial Statements

         The Consolidated  Financial  Statements,  including Notes thereto,  set
forth in the 1999 Annual Report are incorporated herein by reference.

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

         There were no disagreements with or changes in accountants.

                                    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" and "Section 16(a) Beneficial  Ownership  Reporting  Compliance" in the
Proxy  Statement  to be used in  conjunction  with the 2000  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.

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

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

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.


                                        9

<PAGE>

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)

         13                       Portions of the Annual Report to Shareholders
                                  for the Year Ended December 31, 1999

         21                       Subsidiaries of the registrant

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

         27                       Financial data schedule

(b) No Reports on Form 8-K were filed during the year ended December 31, 1999.

                                       10

<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 BANK

                                   s/Frederick D. Shepherd, Jr.
Date: March  16, 2000           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 __, 2000
(Larry S. Bowman)

s/William M. Brown
-------------------------------                  Director and Secretary                           March 16, 2000
(William M. Brown)

 s/Robert H. Edwards
-------------------------------                  Director                                         March 16, 2000
(Robert H. Edwards)

s/Blake L. Griffith
-------------------------------                  Director                                         March 16, 2000
(Blake L. Griffith)


-------------------------------                  Director                                         March __, 2000
(John R. Hamrick)

s/R. Theo Harris, Sr.
-------------------------------                  Director                                         March 16, 2000
(R. Theo Harris, Sr.)

s/James E. McCoy
-------------------------------                  Chairman and Director                            March 16, 2000
(James E. McCoy)

s/Frederick D. Shepherd, Jr.
-------------------------------                  Director, President, Chief                       March 16, 2000
(Frederick D. Shepherd, Jr.)                     Executive Officer, Treasurer and
                                                 Principal Financial Officer

s/Gary V. Thrift
-------------------------------                  Director                                         March 16, 2000
(Gary V. Thrift)

s/James E. Turner
-------------------------------                  Director                                         March 16, 2000
(James E. Turner)

s/Charles L. Winchester
-------------------------------                  Director                                         March 16, 2000
(Charles L. Winchester)
</TABLE>

                                       11

<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)

         13                       Portions of the Annual Report to Shareholders
                                  for the Year Ended December 31, 1999

         21                       Subsidiaries of the registrant

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

         27                       Financial data schedule




                                       12