UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                         ------------------------------

                                   FORM 10-QSB

(Mark One)

[X]  QUARTERLY  REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES  EXCHANGE ACT
     OF 1934

     FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2004

[ ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

     FOR THE TRANSITION PERIOD FROM _________ TO _________


                         Commission File Number 0-50322


                          COMMUNITY FIRST BANCORP, INC.
--------------------------------------------------------------------------------
        (Exact name of Small Business Issuer as specified in its Charter)


             MARYLAND                                            36-4526348
-------------------------------------                        -------------------
(State or other jurisdiction of                                 (IRS Employer
 incorporation or organization)                              Identification No.)


              2420 NORTH MAIN STREET, MADISONVILLE, KENTUCKY 42431
--------------------------------------------------------------------------------
                    (Address of principal executive offices)


                                 (270) 326-3500
--------------------------------------------------------------------------------
                           (Issuer's telephone number)


                                 NOT APPLICABLE
--------------------------------------------------------------------------------
              (Former name, former address and former fiscal year,
                          if changed since last report)


         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
             ----     ----

         As of March 31,  2004,  there were 277,725  shares of the  Registrant's
common stock, par value $.01 per share, outstanding.

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

<PAGE>

                          COMMUNITY FIRST BANCORP, INC.

                             MADISONVILLE, KENTUCKY

                                      INDEX

                                                                            PAGE
                                                                            ----
PART I.  FINANCIAL INFORMATION
------

Item 1.  Financial Statements

         Condensed Consolidated Balance Sheets as of March 31, 2004
                  (unaudited) and December 31, 2003                           3
         Condensed Consolidated Statements of Operations - (Unaudited)
                  for the three months ended March 31, 2004 and 2003          4
         Condensed Consolidated Statements of Cash Flows - (Unaudited)
                  for the three months ended March 31, 2004 and 2003          5
         Condensed Consolidated Statements of Changes in Stockholders'
                  Equity for the three months ended March 31, 2004 and 2003   7
         Notes to Condensed Consolidated Financial Statements
                  (Unaudited)                                                 8

Item 2.  Management's Discussion and Analysis or Plan                        10
                  of Operation

Item 3.  Controls and Procedures                                             15

PART II. OTHER INFORMATION
-------

Item 6.  Exhibits and Reports on Form 8-K                                    16

Signatures                                                                   17

                                       2
<PAGE>

ITEM 1.  FINANCIAL STATEMENTS

                          COMMUNITY FIRST BANCORP, INC.

                      CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
                                                                            MARCH 31,             DECEMBER 31,
                                                                              2004                    2003
                                                                          -----------             -----------
                                                                          (UNAUDITED)
                                 ASSETS
<S>                                                                       <C>                     <C>
Cash and cash equivalents:
    Cash and due from banks                                               $   449,509             $ 1,068,146
    Interest-bearing demand deposits                                        2,030,721                  15,916
    Interest-bearing time deposits                                             --                      25,000
                                                                          -----------             -----------
        Total cash and cash equivalents                                     2,480,230               1,109,062
Securities, held-to-maturity                                                1,062,294               1,424,067
Securities, available-for-sale, at fair value                               2,002,050               1,975,718
Loans, net of the allowance for loan loss of
  $220,171 and $180,955 at March 31, 2004 and
  December 31, 2003, respectively                                          38,222,441              35,066,142
Premises and equipment, net                                                 2,357,184               1,952,549
Federal Home Loan Bank (FHLB) stock                                           666,100                 659,600
Interest receivable                                                           199,085                 159,150
Deferred income taxes                                                         253,478                 127,677
Other assets                                                                   57,672                  67,499
                                                                          -----------             -----------
        Total assets                                                      $47,300,534             $42,541,464
                                                                          ===========             ===========

                  LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
    Deposits                                                              $37,230,023             $33,171,526
    FHLB advances                                                           6,000,000               5,000,000
    Interest payable and other liabilities                                    105,957                 161,171
                                                                          -----------             -----------
        Total liabilities                                                  43,335,980              38,332,697
                                                                          -----------             -----------

Stockholders' equity:
    Preferred stock, $.01 par value;
      authorized 1,000,000 shares                                                  --                      --
    Common stock, $.01 par value: authorized,
      5,000,000 shares; issued and outstanding
      277,725 at March 31, 2004 and December
      31, 2003                                                                  2,777                   2,777
    Additional paid-in capital                                              2,466,428               2,466,428
    Retained earnings - substantially
      restricted                                                            1,500,529               1,763,045
    Accumulated other comprehensive income                                     (5,180)                (23,483)
                                                                          -----------             -----------

        Total stockholders' equity                                          3,964,554               4,208,767
                                                                          -----------             -----------
        Total liabilities and stockholders' equity
                                                                          $47,300,534             $42,541,464
                                                                          ===========             ===========
</TABLE>

            See notes to condensed consolidated financial statements.

                                       3
<PAGE>

                          COMMUNITY FIRST BANCORP, INC.

                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
               FOR THE THREE MONTHS ENDED MARCH 31, 2004 AND 2003
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                                     THREE MONTHS ENDED
                                                                                          MARCH 31,
                                                                                ----------------------------
                                                                                  2004                2003
                                                                                ---------           --------
<S>                                                                             <C>                 <C>
Interest and Dividend Income:
  Loans                                                                         $ 546,222           $483,545
  Investment securities                                                            30,493             28,811
  Dividends on FHLB stock                                                           6,560              6,254
                                                                                ---------           --------
      Total interest and dividend income                                          583,275            518,610
                                                                                ---------           --------
Interest Expense:
  Deposits                                                                        200,527            194,862
  FHLB advances                                                                    17,507              2,424
                                                                                ---------           --------
      Total interest expense                                                      218,034            197,286
                                                                                ---------           --------

Net Interest Income                                                               365,241            321,324

Provision for Loan Losses                                                          39,000             19,000
                                                                                ---------           --------
Net Interest Income After Provision for
   Loan Losses                                                                    326,241            302,324
                                                                                ---------           --------
Noninterest Income
  Service charges and fees                                                         39,730             33,414
  Loss on sale of other real estate                                                   404                 --
  Foreclosed real estate expense, net                                              (1,702)                --
  Insurance commissions and premiums                                                5,981              1,866
  Other income                                                                      6,088              7,838
                                                                                ---------           --------
      Total noninterest income                                                     50,501             43,118
                                                                                ---------           --------
Noninterest Expense
  Compensation and benefits                                                       255,062            119,455
  Directors fees                                                                   10,800             10,800
  Occupancy expense                                                               112,365             31,374
  Insurance premiums                                                                8,593              5,628
  Data processing                                                                  79,654             39,383
  Advertising                                                                      44,065             18,055
  Office supplies and postage                                                      47,024             14,360
  Payroll and other taxes                                                          25,233             17,133
  Professional fees                                                                42,625              7,236
  Expenses relating to conversion of data                                         110,834                 --
    processor
  Other operating expenses                                                         38,232             23,832
                                                                                ---------           --------
     Total noninterest expense                                                    774,487            287,256
                                                                                ---------           --------
Income (Loss) Before Income Taxes                                                (397,745)            58,186
Provision (Credit) for Income Taxes                                              (135,229)                --
                                                                                ---------           --------
Net income (loss)                                                               $(262,516)          $ 58,186
                                                                                =========           ========
Basic earnings (loss) per share                                                 $   (0.95)          $   0.21
                                                                                =========           ========
</TABLE>

            See notes to condensed consolidated financial statements.

                                       4
<PAGE>
                          COMMUNITY FIRST BANCORP, INC.

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

               FOR THE THREE MONTHS ENDED MARCH 31, 2004 AND 2003
                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                                 THREE MONTHS ENDED
                                                                    MARCH 31,
                                                             --------------------------
                                                                 2004           2003
                                                             -----------    -----------
<S>                                                          <C>            <C>
Operating Activities:
    Net income (loss)                                        $  (262,516)   $    58,186
    Adjustments to reconcile net income (loss) to net
      cash provided by operating activities:
        FHLB stock dividend                                       (6,500)        (6,200)
        Provision for loan losses                                 39,000         19,000
        Depreciation, amortization and accretion                  54,761         12,000
        Loss on sale of foreclosed assets                            404             --
        Deferred income tax benefit                             (135,230)            --
        Change in assets and liabilities:
            Other assets                                           9,423             --
            Accrued interest receivable and other assets         (39,935)       (14,664)
            Accrued interest payable and other liabilities       (55,214)         1,810
                                                             -----------    -----------

                Net cash provided(used) by
                  operating activities                          (395,807)        70,132
                                                             -----------    -----------
Investing Activities:
    Net increase in loans                                     (3,195,299)    (2,050,988)
    Proceeds from maturities/calls of held-to-maturity
       securities                                                361,773         12,144
    Purchases of premises and equipment                         (457,996)        (5,546)
                                                             -----------    -----------

                Net cash used in investing
                  activities                                  (3,291,522)    (2,044,390)
                                                             -----------    -----------

Financing Activities:
    Net increase in deposits                                   4,058,497      2,506,062
    Payments on short-term borrowings                         (1,000,000)    (1,000,000)
    Proceeds from short-term borrowings                        2,000,000      1,000,000
                                                             -----------    -----------

                Net cash provided by financing activities      5,058,497      2,506,062
                                                             -----------    -----------

Net increase in cash and cash equivalents                      1,371,168        531,804
Cash and cash equivalents, beginning of period                 1,109,062        758,126
                                                             -----------    -----------
Cash and cash equivalents, end of period                     $ 2,480,230    $ 1,289,930
                                                             ===========    ===========
</TABLE>

            See notes to condensed consolidated financial statements.

                                       5
<PAGE>
                          COMMUNITY FIRST BANCORP, INC.

           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, CONTINUED

               FOR THE THREE MONTHS ENDED MARCH 31, 2004 AND 2003
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                             THREE MONTHS ENDED
                                                                 MARCH 31,
                                                             -------------------
                                                               2004       2003
                                                             --------   --------
<S>                                                          <C>        <C>
SUPPLEMENTAL DISCLOSURES:
Cash paid for interest                                       $213,645   $196,695
                                                             ========   ========

NON-CASH TRANSACTIONS:
Federal Home Loan Bank Stock dividend received               $  6,500   $  6,200
                                                             ========   ========
Loans transferred to foreclosed real estate                  $ 27,600   $   --
                                                             ========   ========
Loans to facilitate the sale of foreclosed real estate       $ 29,000   $   --
                                                             ========   ========
</TABLE>
            See notes to condensed consolidated financial statements.

                                       6
<PAGE>

                          COMMUNITY FIRST BANCORP, INC.

      CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

               FOR THE THREE MONTHS ENDED MARCH 31, 2004 AND 2003
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                         2004            2003
                                                      -----------    -----------
<S>                                                      <C>              <C>
Balance January 1                                     $ 4,208,767    $ 1,748,866
  Net income (loss)                                      (262,516)        58,186
  Issuance of common stock                                   --             --
  Other comprehensive income (loss), net of tax            18,303           --
                                                      -----------    -----------
Balance at end of period                              $ 3,964,554    $ 1,807,052
                                                      ===========    ===========
</TABLE>

           See notes to condensed consolidated financial statements.

                                       7
<PAGE>

                          COMMUNITY FIRST BANCORP, INC.

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

1.       COMMUNITY FIRST BANCORP, INC.

         In March 2003,  Community  First  Bancorp,  Inc.  (the  "Company")  was
         incorporated  to facilitate the conversion of Community First Bank (the
         "Bank")  from a  mutual  savings  bank to a  stock  savings  bank  (the
         "Conversion").  In connection with the Conversion,  the Company offered
         its common  stock to the  depositors  and  borrowers  of the Bank as of
         specified  dates.  The Conversion was  consummated on June 26, 2003, at
         which time the  Company  became the  holding  company  for the Bank and
         issued shares of its stock to the general public.

         The  Company  filed  a Form  SB-2  with  the  Securities  and  Exchange
         Commission  ("SEC") on April 1, 2003,  which as amended,  was  declared
         effective by the SEC on May 14, 2003. The Bank filed a Form AC with the
         Office of Thrift  Supervision  (the  "OTS") on April 2, 2003,  which as
         amended,   along  with  related  offering  and  proxy  materials,   was
         conditionally  approved by the OTS on May 14,  2003.  The Company  also
         filed an Application  H-(e)1-S with the OTS on April 2, 2003, which was
         conditionally  approved by the OTS on May 14, 2003.  The members of the
         Bank approved the Plan of Conversion at a special  meeting held on June
         23, 2003, and the subscription offering closed on June 17, 2003.

         On June 26, 2003, the Company  became the holding  company for the Bank
         upon  the   consummation   of  the   Conversion.   The  Conversion  was
         accomplished  through  the sale and  issuance by the Company of 277,725
         shares of common stock at $10 per share.  Net proceeds from the sale of
         common stock were $2,469,205. Costs associated with the Conversion were
         deducted  from  the  proceeds  from the sale of the  common  stock  and
         totaled $308,045.

2.       BASIS OF PRESENTATION

         The accompanying  unaudited condensed consolidated financial statements
         were  prepared  in  accordance  with  instructions  for Form 10-QSB and
         therefore,  do not include  all  disclosures  necessary  for a complete
         presentation  of the statements of condition,  statements of operations
         and statement of cash flows in conformity  with  accounting  principles
         generally  accepted  in the  United  States of  America.  However,  all
         adjustments (all of which are of a normal recurring  nature),which are,
         in the opinion of management,  necessary for the fair  presentation  of
         the interim  financial  statements  have been  included.  The condensed
         consolidated  balance  sheet of the company as of December 31, 2003 has
         been derived from the audited condensed  consolidated  balance sheet of
         the company as of that date.  Certain  information and note disclosures
         normally included in the company's annual financial statements prepared
         in  accounting  principles  generally  accepted in the United States of
         America have been condensed or omitted.  These  condensed  consolidated
         financial   statements   should  be  read  in   conjunction   with  the
         consolidated  financial statements and notes thereto. The statements of
         operations for periods presented are not necessarily  indicative of the
         results which may be expected for the entire year.

                                       8
<PAGE>

         The unaudited condensed  consolidated  financial statements include the
         accounts of the Company and the Bank for the periods  presented in 2004
         and the  accounts of the Bank for the periods  presented  in 2003.  All
         material intercompany balances and transactions have been eliminated in
         consolidation.


3.       OTHER COMPREHENSIVE LOSS

         Other comprehensive loss components and related taxes were as follows:
<TABLE>
<CAPTION>
                                                              2004          2003
                                                              ----          ----
         <S>                                                <C>             <C>
         Unrealized loss on available-
           for-sale securities before
           tax effect                                       $27,732         $--
         Tax expense                                          9,429          --
                                                            -------         ----
           Other comprehensive loss                         $18,303         $--
                                                            =======         ====
</TABLE>


  4.     EARNINGS PER SHARE

         Earnings per share has been determined in accordance with Statements of
         Financial  Accounting Standards No. 128, "Earnings per Share." Earnings
         per common share were  computed by dividing net income by the number of
         shares of common stock issued in the Bank's conversion to stock form as
         if such  shares had been  outstanding  for the entire  period.  Diluted
         earnings per share is not presented  since the Company did not have any
         outstanding common stock equivalents.

         The  following  data show the amounts  used in  computing  earnings per
         share (EPS).
<TABLE>
<CAPTION>
                                                                 2004              2003
                                                                 ----              ----
           <S>                                                 <C>                <C>
           Three months ended March 31:
                  Net income (loss)                            $(262,516)         $  --
                  Weighted average number of
                     common shares                               277,272             --
                                                               ---------          -----
                           Basic Earnings (Loss)
                             per share                         $   (0.95)         $  --
                                                               =========          =====
</TABLE>
       As of  March  31,  2003,  the  Company  had no  shares  of  common  stock
       outstanding.  As such the statement of income for March 31, 2003 does not
       disclose earnings per share as would otherwise be required.


                                       9
<PAGE>
ITEM 2.

                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                 OF FINANCIAL CONDITION AND RESULTS OF OPERATION

GENERAL

The following discussion and analysis is intended to assist in understanding the
financial condition and results of operations of the Company.

FORWARD-LOOKING STATEMENTS

When used in this  discussion  and  elsewhere in this  Quarterly  Report on Form
10-QSB,  the words or phrases  "will likely  result,"  "are  expected  to," will
continue," "is anticipated,"  "estimate,"  "project," or similar expressions are
intended  to  identify  "forward-looking  statements"  within the meaning of the
Private Securities  Litigation Reform Act of 1995. The Bank cautions readers not
to place undue reliance on any such forward-looking statements, which speak only
as of the date  made,  and  advises  readers  that  various  factors,  including
regional  and  national  economic  conditions,  substantial  changes in level of
market  interest  rates,  credit  and  other  risks of  lending  and  investment
activities and  competitive  and  regulatory  factors could affect the Company's
financial  performance  and could  cause the Bank's  actual  results  for future
periods to differ  materially from those  anticipated or projected.  The Company
does not  undertake  and  specifically  disclaims  any  obligation to update any
forward-looking statements to reflect occurrence of anticipated or unanticipated
events or circumstances after the date of such statements.

APPLICATION OF CRITICAL ACCOUNTING POLICIES

ALLOWANCE  FOR LOAN  LOSSES.  The  Company's  condensed  consolidated  financial
statements  are prepared in  accordance  with  accounting  principles  generally
accepted in the United States and follow general  practices within the financial
services  industry.  The most significant  accounting  policies  followed by the
Company are presented in Note 1 to the consolidated  financial statements in the
Company's  Annual Report on Form 10-KSB filed with the  Securities  and Exchange
Commission.  These policies,  along with the disclosures  presented in the other
financial  statement notes and in this financial review,  provide information on
how significant  assets and  liabilities are valued in the financial  statements
and how those values are determined.  Based on the valuation techniques used and
the sensitivity of financial statement amounts to the methods,  assumptions, and
estimates underlying those amounts,  management has identified the determination
of the  allowance  for loan losses to be the  accounting  area that requires the
most  subjective  or complex  judgments,  and as such  could be most  subject to
revision as new information becomes available.

The  allowance  for loan  losses  represents  management's  estimate of probable
credit  losses  inherent in the loan  portfolio.  Determining  the amount of the
allowance for loan losses is considered a critical  accounting  estimate because
it requires  significant judgment and the use of estimates related to the amount
and timing of expected future cash flows on impaired loans,  estimated losses on
loans based on historical loss experience, and consideration of current economic
trends and conditions, all of which may be susceptible to significant change.

                                       10
<PAGE>

The loan  portfolio  also  represents  the largest  asset type on the  condensed
consolidated  balance sheet. Note 1 to the consolidated  financial statements in
the  Company's  Annual  Report on Form  10-KSB  filed  with the  Securities  and
Exchange  Commission  describes the methodology  used to determine the allowance
for loan losses,  and a discussion of the factors  driving changes in the amount
of the allowance for loan losses is included under Asset Quality below.

Loans that  exhibit  probable  or  observed  credit  weaknesses  are  subject to
individual review. Where appropriate, reserves are allocated to individual loans
based on management's estimate of the borrower's ability to repay the loan given
the  availability  of  collateral,  other sources of cash flow and legal options
available to the Company.  Included in the review of individual  loans are those
that are  impaired as provided in SFAS No. 114,  "Accounting  by  Creditors  for
Impairment  of a  Loan."  The  Company  evaluates  the  collectibility  of  both
principal and interest when assessing the need for a loss accrual. Historical or
industry  loss  rates  are  applied  to  other  loans  not  subject  to  reserve
allocations.  These  historical  or  industry  loss  rates may be  adjusted  for
significant  factors that, in management's  judgment,  reflect the impact of any
current  conditions on loss recognition.  Factors which management  considers in
the analysis include the effects of the national and local economies,  trends in
the  nature  and  volume of loans  (delinquencies,  charge-offs  and  nonaccrual
loans),  changes  in  mix,  asset  quality  trends,  risk  management  and  loan
administration,  changes in internal lending policies and credit standards,  and
examination  results  from bank  regulatory  agencies  and our  internal  credit
examiners.

An unallocated  reserve is maintained to recognize the imprecision in estimating
and measuring loss when  evaluating  reserves for  individual  loans or pools of
loans.  Reserves on individual  loans and  historical or industry loss rates are
reviewed  quarterly and adjusted as necessary based on changing  borrower and/or
collateral conditions and actual collection and charge-off experience.

The Company has not substantively  changed any aspect of its overall approach in
the determination of the allowance for loan losses.  There have been no material
changes in  assumptions  or  estimation  techniques as compared to prior periods
that impacted the determination of the current period allowance.

Based on the procedures  discussed above,  management is of the opinion that the
reserve of $220,171 was adequate, but not excessive,  to absorb estimated credit
losses associated with the loan portfolio at March 31, 2004.

DEFERRED  INCOME  TAXES.  We have a deferred tax asset of $253,478.  We evaluate
this asset on a quarterly basis. To the extent we believe it is more likely than
not that it will not be utilized,  we establish a valuation  allowance to reduce
its carrying  amount to the amount we expect to be realized.  At March 31, 2004,
there is no  valuation  allowance  established.  The  deferred tax asset will be
utilized  as we  become  profitable,  which we  project  to occur in the  second
quarter of 2004. Prior to the expenses incurred with our computer conversion and
the opening of our new main office, we had three consecutive profitable quarters
from January 2003 through  September 2003. The estimate of the realizable amount
of this asset is a critical accounting policy.


                                       11
<PAGE>

COMPARISON OF THE RESULTS OF OPERATIONS  FOR THE THREE MONTH PERIODS ENDED MARCH
31, 2004 AND 2003

NET  INCOME.  Net loss for the  quarter  ended  March  31,  2004 was  $(262,500)
compared to a net income of $58,000 for the same period last year. The Company's
net loss for the three months ended March 31, 2004 reflects expenses incurred as
a result of opening a new main  office,  as well as expenses  associated  with a
computer  conversion  which  offset  improvements  in net  interest  income  and
noninterest income.

NET INTEREST INCOME.  Net interest income increased $43,900 or 13.7% to $365,200
for the three  months  ended March 31, 2004  compared to $321,000  for the three
months ended March 31, 2003. This increase reflects a shift in  interest-earning
assets into higher-yielding loans. During the three months ended March 31, 2004,
net loans  averaged  $36.3  million for the period as compared to $27.6  million
during  the first  three  months of  fiscal  year  2003.  While  interest  rates
decreased during this period, interest income increased by $64,700 primarily due
to higher  outstanding  loan balances.  Net interest  income also benefited from
reduced  deposit costs in the lower interest rate  environment as higher costing
certificates  of deposit  matured.  With  increased  deposits  of $4.1  million,
interest expense increased by $21,000. The Bank's interest rate spread decreased
to 3.22% for the three  months  ended March 31,  2004  compared to 4.23% for the
three months ended March 31, 2003.  Net interest  margin  increased to 3.19% for
the 2004 period compared to 4.24% for the 2003 period.

PROVISION FOR LOAN LOSSES. The provision for loan losses was $39,000 and $19,000
for the  quarters  ended March 31, 2004 and 2003,  respectively.  The Bank makes
provisions for loan losses in amounts deemed  necessary to maintain the adequacy
of the allowance for loan losses.  At March 31, 2004,  the Bank's  allowance for
loan losses was $220,200 or 0.57% of the gross loan portfolio.

NONINTEREST INCOME.  Noninterest income was $50,500 and $43,000 for the quarters
ended March 31, 2004 and 2003,  respectively.  The  increase for the most recent
quarter of $7,400 or 17.1% is  reflective  of  management's  ongoing  efforts to
enhance fee income.

NONINTEREST  EXPENSE.  Noninterest  expense was  $774,500  and  $288,000 for the
quarters  ended  March 31, 2004 and 2003,  respectively.  The  increase  for the
quarter of $487,200 or 169.6% was due  primarily  to the  addition of a new main
office and expenses incurred in the computer conversion.  The opening of the new
main office and its  related  renovations  and  improvements  created  increased
occupancy  expenses of $74,991 or 200.6% to $112,000  for the three months ended
March 31,  2004  compared  to $31,400  for the  quarter  ended  March 31,  2003.
Computer  conversion expenses totaling $110,800 for the three months ended March
31, 2004 included  billed items from our previous data  processor of $22,700 for
data test tapes and $39,000 for online deconversion services. Also included were
items from our new data processor such as data mapping and converting, parameter
setup, item processing setup, data communication installation fees, and software
license  fees.  Computer  and data  processing  expense  increased by $40,300 or
102.2% to $79,700 for the three months ended March 31, 2004  compared to $39,400
for the three  months ended March 31, 2003.  Compensation  and benefits  expense
increased by $135,600 or 113.5% to $255,000 for the three months ended March 31,
2004  compared to $119,400 for the three  months ended March 31, 2003.  Salaries
for officers increased by $57,600 or 123% to $104,600 for the three months ended
March 31, 2004 compared to $47,000 for the three months ended March 31, 2003

                                       12
<PAGE>

due to the addition of four new loan  officers,  two of who also serve as branch
managers for our two locations.  Salaries for employees  increased by $32,600 or
76% to $75,600 for the three months ended March 31, 2004 compared to $43,000 for
the three months  ended March 31, 2003 due to the addition of six new  employees
hired  to help  with  staffing  of the new  main  office.  Advertising  expenses
increased  $26,000 or 144.1% to $44,000 for the first three  months  ended March
31, 2004  compared to $18,100 for the quarter  ended March 31, 2003.  The change
was due primarily to marketing the new main office and the activities associated
with its grand opening on March 5, 2004, as well as marketing efforts to explain
our computer  conversion and its effects to our customers.  Office  supplies and
postage  expenses  increased  $32,700 or 227.5% to $47,000  for the first  three
months ended March 31, 2004  compared to $14,400 for the quarter ended March 31,
2003.  The change was due  primarily  to the  purchase  of  necessary  paper and
supplies  required  to open the new main  office.  Professional  fees  increased
$35,400 or 489.1% to $42,600  for the quarter  ended March 31, 2004  compared to
$7,200 for the first  three  months  ended  March 31,  2003.  The change was due
primarily  to  additional   fees  incurred  in  connection  with  SEC  reporting
requirements.

INCOME TAX EXPENSE.  The Company  provides for both the current and deferred tax
effects of the transactions reported in its financial statements and established
deferred tax assets and  liabilities for the temporary  differences  between the
financial  reporting  and tax bases of its assets and  liabilities.  The Company
establishes  valuation  allowances  for its net deferred tax assets unless it is
more likely than not that these net deferred tax assets will be realized.  Based
on its current earnings,  its future projected earnings,  and other factors, the
Bank  determined  in 2002  that it was  appropriate  to  establish  a  valuation
allowance for its net deferred tax assets.  The Company  determined in 2003 that
the net deferred tax assets would be realizable,  and the corresponding deferred
tax valuation allowance was eliminated.


COMPARISON OF BALANCE SHEETS AT MARCH 31, 2004 AND DECEMBER 31, 2003

The Company's total assets as of March 31, 2004 were $47.3 million,  an increase
of $4.8 million or 11.3% from  December 31, 2003's level of $42.5  million.  The
increase was due primarily to growth in the loan portfolio, more specifically an
increase in commercial real estate loans. Net loans receivable increased by $3.2
million, or 9.0%, which reflected our continued marketing efforts. The Company's
investment  securities decreased by $335,400,  or 9.9%, to $3.1 million at March
31, 2004 due to  maturities  of  securities.  Premises and  equipment  increased
$404,600,  or 20.7%,  primarily  due to the opening of a new main office and the
purchase  of  equipment  for  the  new  office.  The  Company's  cash  and  cash
equivalents as of March 31, 2004 were $2.5 million,  an increase of $1.4 million
from December 31, 2003's level of $1.1 million.  The increase is attributable to
increased  borrowings  from the Federal Home Loan Bank to help fund increases in
loan demand.

Liabilities  increased by $5.0 million, or 13.1%, to $43.3 million due primarily
to a $4.1  million,  or 12.2%,  increase in deposits  as the Bank  continued  to
attract  deposits  locally at favorable  rates.  The  increase in deposits  came
primarily from checking accounts and certificates of deposit.  Federal Home Loan
Bank  advances  increased  $1.0 million or 20% to $6.0 million at March 31, 2004
from $5.0  million at December  31, 2003.  The Bank has used  proceeds  from the
advances to help meet loan demand.

                                       13
<PAGE>

Stockholders'  equity  decreased  to $4.0  million  at March 31,  2004 from $4.2
million at December 31, 2003. The decrease in stockholders'  equity  principally
reflects $262,500 in losses during the period.

At March 31, 2004,  the Bank was in compliance  with all  applicable  regulatory
capital  requirements  with tangible and core capital equal to 8.11% of adjusted
total  assets  and total  risk-based  capital  equal to 15.47% of  risk-weighted
assets.

ASSET QUALITY

The following table sets forth  information  regarding the Bank's  nonperforming
assets at the dates indicated.
<TABLE>
<CAPTION>
                                                         MARCH 31,     DECEMBER 31,
                                                           2004           2003
                                                         ---------      --------
<S>                                                      <C>            <C>
Non-accrual loans                                        $ 69,000       $ 28,000
Accruing loans past due 90 days or more                   100,000         20,000
                                                         --------       --------

Total non-performing loans                               $169,000       $ 48,000
                                                         ========       ========
</TABLE>


Accruing loans past due 90 days or more at March 31, 2004 consisted of six loans
of which five became current after the end of the quarter.

At March 31, 2004,  there were no loans  outstanding  not reflected in the above
table as to which known  information about possible credit problems of borrowers
caused  management to have serious doubts as to the ability of such borrowers to
comply with present loan repayment terms.

An analysis of the changes in the allowance for loan losses is as follows:
<TABLE>
<CAPTION>
                                                        THREE MONTHS ENDED
                                                            MARCH 31,
                                                    ----------------------------
                                                      2004              2003
                                                    ---------         ---------

<S>                                                 <C>               <C>
Balance, beginning of period                        $ 180,955         $ 105,868
Loans charged off                                           0            (1,031)
Loan recoveries                                           216               445
                                                    ---------         ---------

     Net charge-offs                                      216              (586)

                                                       39,000            19,000
Provision for loan losses
                                                    ---------         ---------

Balance, end of period                              $ 220,171         $ 124,282
                                                    =========         =========
</TABLE>


LIQUIDITY AND CAPITAL RESOURCES

The Company  currently  has no  operating  business  and does not have  material
funding  needs.  In the future,  the Company may require funds for dividends and
tax payments for which it will rely on dividends  and other  distributions  from

                                       14
<PAGE>
the Bank. The Bank is subject to various regulatory  restrictions on the payment
of dividends.

The Bank's  sources of funds for lending  activities and operations are deposits
from its primary market area,  advances from the FHLB of  Cincinnati,  principal
and  interest  payments on loans,  interest  received on other  investments  and
federal  funds  purchased.   Its  principal  funding  commitments  are  for  the
origination  of loans,  the  payment of maturing  deposits,  and  principal  and
interest  payments on advances from the FHLB.  Deposits are considered a primary
source of funds supporting the Bank's lending and investment activities.

Cash and cash equivalents (cash due from banks,  interest-bearing  deposits with
banks,  and federal  funds  sold),  as of March 31,  2004,  totaled $2.5 million
compared to $1.3 million at March 31, 2003.  The Bank's cash flows were provided
mainly  by  financing  activities,  including  $4.1  million  from  net  deposit
increases and $1.0 million net increase in FHLB borrowings. Operating activities
used  $395,800 in cash for the three  months  ended  March 31, 2004  compared to
$70,132  provided in cash for the three months  ended March 31,  2003.  The Bank
used cash flows of $3.3 million for its investing  activities  primarily to fund
an increase in gross loans of $3.2 million.

As  a  federal  savings  bank,  the  Bank  is  subject  to  regulatory   capital
requirements  of  Office  of  Thrift  Supervision  ("OTS").  In order to be well
capitalized  under OTS  regulations,  the Bank must maintain a leverage ratio of
Tier I Capital to  average  assets of at least 5% and ratios of Tier I and total
capital to risk-weighted  assets of at least 6% and 10%  respectively.  At March
31, 2004, the Bank satisfied the capital requirements for classification as well
capitalized under OTS regulations.

ITEM 3.  CONTROLS AND PROCEDURES

The Company's  management  evaluated,  with the  participation  of the Company's
Chief Executive  Officer and Chief Financial  Officer,  the effectiveness of the
Company's  disclosure  controls  and  procedures,  as of the  end of the  period
covered by this report.  Based on that evaluation,  the Chief Executive  Officer
and Chief Financial Officer concluded that the Company's disclosure controls and
procedures are effective to ensure that information  required to be disclosed by
the  Company  in the  reports  that it files or  submits  under  the  Securities
Exchange Act of 1934 is recorded, processed,  summarized and reported within the
time periods  specified in the  Securities and Exchange  Commission's  rules and
forms.

There were no changes in the Company's internal control over financial reporting
that occurred  during the  Company's  last fiscal  quarter that have  materially
affected,  or are reasonably likely to materially affect, the Company's internal
control over financial reporting.

                                       15
<PAGE>
PART II

                                OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K
         --------------------------------

     (a)  The following  exhibits are either being filed with or incorporated by
          reference in this quarterly report on Form 10-QSB:

    NUMBER     DESCRIPTION
    ------     -----------
    3.1        Articles of Incorporation *
    3.2        Bylaws *
    4          Form of Common Stock Certificate *
    10.1       Employment Agreement with William M. Tandy *
    31.1       Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer
    31.2       Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer
    32         Section 1350 Certification
    ---------------
    *Incorporated by reference from the Registrant's Registration Statement
     on Form SB-2 (File No. 333-104226).



     (b)  Reports on Form 8-K.  On January  26,  2004,  the  Registrant  filed a
          Current  Report on Form 8-K,  announcing  the date of the 2004  annual
          meeting of stockholders under Item 5.

                                       16
<PAGE>
                                   SIGNATURES

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


                                    COMMUNITY FIRST BANCORP, INC.


Date: May 14, 2004                  /s/ William M. Tandy
                                    --------------------------------------------
                                    William M. Tandy, President
                                    (Duly Authorized Representative)


Date: May 14, 2004                  /s/ Michael D. Wortham
                                    --------------------------------------------
                                    Michael D. Wortham, Vice President
                                    (Chief Financial Officer)

                                       17