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


                                   FORM 10-QSB
                               (Amendment No. 1)


(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, 2006

[ ]      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 [ ]

         Indicate by check mark whether the  Registrant  is a shell  company (as
defined in Rule 12b-2 of the Exchange Act) Yes [ ] No [X]

         As of March 31,  2006,  there were 292,546  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. (the "Company") is filing this Amendment No.
1 on Form  10-QSB/A to amend Item 3 of its  Quarterly  Report on Form 10-QSB for
the  quarter  ended  March 31, 2006 as filed with the  Securities  and  Exchange
Commission on May 15, 2006 to clarify the results of management's  evaluation of
the  effectiveness  of the  Company's  disclosure  controls and  procedures.  In
addition,  the Company is filing updated  certifications  of its Chief Executive
Officer  and Chief  Financial  Officer as required by Section 302 and 906 of the
Sarbanes-Oxley Act of 2002. No other information is being amended hereby. Except
as otherwise specifically noted, all information contained herein is as of March
31, 2006 and does not reflect events or changes that have occurred subsequent to
that date.

                                * * * * * * * * *


                          COMMUNITY FIRST BANCORP, INC.

                             Madisonville, Kentucky

                                      INDEX

                                                                            PAGE
                                                                            ----

PART I.  FINANCIAL INFORMATION
------

Item 1.  Financial Statements

     Condensed Consolidated Balance Sheets as of March 31, 2006
              (Unaudited) and December 31, 2005                              3
     Condensed Consolidated Statements of Operations - (Unaudited)
              for the three months ended March 31, 2006 and 2005             4
     Condensed Consolidated Statements of Cash Flows - (Unaudited)
              for the three months ended March 31, 2006 and 2005             5
     Condensed Consolidated Statements of Changes in Stockholders'
              Equity - (Unaudited) for the three months ended
              March 31, 2006 and 2005                                        7
     Notes to Condensed Consolidated Financial Statements
              (Unaudited)                                                    8

Item 2.  Management's Discussion and Analysis of Financial
         Condition and Results of Operation                                 12

Item 3.  Controls and Procedures                                            17

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

Item 2.  Unregistered Sales of Equity Securities and
         Use of Proceeds                                                    19

Item 6.  Exhibits                                                           19

Signatures                                                                  20







                                       2

<PAGE>

                          COMMUNITY FIRST BANCORP, INC.
                      CONDENSED CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                          MARCH 31,       DECEMBER 31,
                                                            2006              2005
                                                        -------------    -------------
                                                         (UNAUDITED)
<S>                                                    <C>             <C>
                                 ASSETS
Cash and cash equivalents:
    Cash and due from banks                              $    662,352    $    785,814
    Interest-bearing demand deposits                        1,450,068       1,223,134
                                                         ------------    ------------
        Total cash and cash equivalents                     2,112,420       2,008,948

Securities, held-to-maturity (market values of
   $65,848 and $69,257 at March 31, 2006
   and December 31, 2005, respectively)                        63,176          65,522
Securities, available-for-sale, at fair value               1,704,340       1,703,147
Loans, net of the allowance for loan loss of
   $386,546 and $387,822 at March 31, 2006
   and December 31, 2005, respectively                     65,246,541      64,578,288
Premises and equipment, net                                 2,235,004       2,286,004
Federal Home Loan Bank (FHLB) stock                           732,100         721,900
Interest receivable                                           303,527         288,501
Deferred income taxes                                          16,014          16,587
Other assets                                                   54,536          59,817
                                                         ------------    ------------
        Total assets                                     $ 72,467,658    $ 71,728,714
                                                         ============    ============

                  LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
    Deposits                                             $ 59,327,452    $ 54,476,673
    FHLB advances                                           8,900,000      13,000,000
    Advances under line of credit                             850,000         850,000
    Loans from directors                                      390,126         400,000
    Interest payable and other liabilities                    274,157         282,040
                                                         ------------    ------------
        Total liabilities                                  69,741,735      69,008,713
                                                         ------------    ------------

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
      292,546 at March 31, 2006 and 277,725 at
      December 31, 2005                                         2,925           2,777
    Additional paid-in capital                              2,575,848       2,457,428
    Retained earnings - substantially
      Restricted                                              178,237         291,993
    Accumulated other comprehensive loss                      (31,087)        (32,197)

                                                         ------------    ------------
        Total stockholders' equity                          2,725,923       2,720,001
                                                         ------------    ------------
        Total liabilities and stockholders' equity       $ 72,467,658    $ 71,728,714
                                                         ============    ============
</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, 2006 and 2005
                                   (Unaudited)


                                                     THREE MONTHS ENDED
                                                          MARCH 31,
                                                ----------------------------
                                                     2006           2005
                                                -----------      -----------
Interest and Dividend Income:
  Loans                                         $   977,212      $   757,263
  Investment securities                              14,588           24,843
  Dividends on FHLB stock                            10,235            8,325
                                                -----------      -----------
      Total interest and dividend income          1,002,035          790,431
                                                -----------      -----------

Interest Expense:
  Deposits                                          418,698          289,397
  FHLB advances                                     125,331           65,231
  Other borrowings                                   26,403           10,188
                                                -----------      -----------
      Total interest expense                        570,432          364,816
                                                -----------      -----------

Net Interest Income                                 431,603          425,615

Provision for loan losses                             1,500           39,000
                                                -----------      -----------
Net interest income after provision for
   loan losses                                      430,103          386,615
                                                -----------      -----------

Noninterest Income
  Service charges and fees                           95,997           59,067
  Foreclosed real estate expense, net                  (550)            (595)
  Loss on sale of repossessed vehicles                   --           (2,760)
  Insurance commissions and premiums                    949              581
  Other income                                        7,433           25,044
                                                -----------      -----------
      Total noninterest income                      103,829           81,337
                                                -----------      -----------

Noninterest Expense
  Compensation and benefits                         272,145          247,610
  Directors fees                                     10,800           10,800
  Occupancy expense                                  79,038           77,528
  Insurance premiums                                  9,968            5,360
  Data processing                                    64,073           51,415
  Advertising                                        18,881           33,353
  Office supplies, telephone and postage             31,610           32,289
  Payroll and other taxes                            38,333           33,510
  Professional fees                                  34,723           19,046
  Other operating expenses                           88,117           75,499
                                                -----------      -----------
     Total noninterest expense                      647,688          586,410
                                                -----------      -----------

Loss Before Income Taxes                           (113,756)        (118,458)
Provision (Credit) for Income Taxes                      --               --
                                                -----------      -----------
Net loss                                        $  (113,756)     $  (118,458)
                                                ===========      ===========
Basic loss per share                            $     (0.41)     $     (0.43)
                                                ===========      ===========
Diluted loss per share                          $     (0.41)     $     (0.43)
                                                ===========      ===========


            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, 2006 and 2005
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                                 THREE MONTHS ENDED
                                                                     MARCH 31,
                                                             ---------------------------
                                                                 2006           2005
                                                             ------------   ------------
<S>                                                        <C>            <C>
Operating Activities:
    Net loss                                                 $  (113,756)   $  (118,458)
    Adjustments to reconcile net loss to net
      Cash provided/(used) by operating activities:
        FHLB stock dividend                                      (10,200)        (7,600)
        Provision for loan losses                                  1,500         39,000
        Deferred compensation for Restricted Stock Plan            2,988             --
        Depreciation, amortization and accretion                  51,491         56,427
        Deferred income tax benefit                                   (1)            --
        Change in assets and liabilities:
            Other assets                                           5,281           (606)
            Accrued interest receivable and other assets         (15,026)       (22,407)
            Accrued interest payable and other liabilities      (244,050)       125,284
                                                             -----------    -----------

                Net cash provided/(used) by
                  operating activities                          (321,773)        71,640
                                                             -----------    -----------

Investing Activities:
    Net increase in loans                                       (669,753)    (3,990,805)
    Proceeds from maturities/calls of held-to-maturity
       securities                                                  2,346          3,085
    Purchases of premises and equipment                               --         (2,819)
                                                             -----------    -----------

                Net cash used in investing activities           (667,407)    (3,990,539)
                                                             -----------    -----------

Financing Activities:
    Net increase in deposits                                   5,083,958      4,434,764
    Payments on short-term borrowings                         (7,100,000)    (5,000,000)
    Proceeds from short-term borrowings                        3,000,000      2,000,000
    Proceeds from issuance of stock                              108,694             --
                                                             -----------    -----------

                Net cash provided by financing activities      1,092,652      1,434,764
                                                             -----------    -----------

Net (decrease) increase in cash and cash equivalents             103,472     (2,484,135)
Cash and cash equivalents, beginning of period                 2,008,948      5,793,196
                                                             -----------    -----------
Cash and cash equivalents, end of period                     $ 2,112,420    $ 3,309,061
                                                             ===========    ===========
</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, 2006 and 2005
                                   (Unaudited)



                                                         THREE MONTHS ENDED
                                                              MARCH 31,
                                                       -----------------------
                                                         2006           2005
                                                       --------       --------

SUPPLEMENTAL DISCLOSURES:
Cash paid for interest                                 $544,029       $354,628
                                                       ========       ========

NON-CASH TRANSACTIONS:
Federal Home Loan Bank Stock dividend received         $ 10,200       $  7,600
                                                       ========       ========
Notes converted to stock                               $  9,874       $     --
                                                       ========       ========














            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, 2006 and 2005
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                           COMMON STOCK            ADDITIONAL
                                                    ----------------------------    PAID-IN          RETAINED
                                                        SHARES       AMOUNT         CAPITAL          EARNINGS
                                                    ----------------------------------------------------------------
<S>                                                      <C>        <C>           <C>               <C>
    BALANCE, JANUARY 1, 2005                             277,725    $  2,777      $ 2,457,428       $  731,477

      Comprehensive income

        Net loss                                              --          --               --         (118,458)
        Change in unrealized depreciation on
          available-for-sale securities, net of
          taxes                                               --          --               --               --

           Total comprehensive loss
                                                         -------    --------      -----------       ----------
    Balance, March 31, 2005                              277,725    $  2,777      $ 2,457,428       $  613,019
                                                         =======    ========      ===========       ==========

    Balance, January 1, 2006                             277,725    $  2,777      $ 2,457,428       $  291,993

      Comprehensive income

        Net loss                                              --          --               --         (113,756)
        Change in unrealized depreciation on
          available-for-sale securities, net of
          taxes                                               --          --               --               --

           Total comprehensive loss

      Issuance of stock                                   14,821         148          118,420               --
                                                         -------    --------      -----------       ----------
    Balance, March 31, 2006                              292,546    $  2,925      $ 2,575,848       $  178,237
                                                         =======    ========      ===========       ==========
<CAPTION>
                                                      ACCUMULATED
                                                         OTHER
                                                     COMPREHENSIVE    COMPREHENSIVE
                                                     INCOME (LOSS)    INCOME (LOSS)         TOTAL
                                                    --------------------------------------------------------
<S>                                                    <C>                                 <C>
    BALANCE, JANUARY 1, 2005                           $  (28,187)            --           $ 3,163,495

      Comprehensive income

        Net loss                                               --      $(118,458)             (118,458)
        Change in unrealized depreciation on
          available-for-sale securities, net of
          taxes                                           (13,955)       (13,955)              (13,955)
                                                                       ---------
           Total comprehensive loss                                    $(132,413)
                                                       ----------      =========           -----------
    Balance, March 31, 2005                            $  (42,142)                         $ 3,031,082
                                                       ==========                          ===========

    Balance, January 1, 2006                           $  (32,197)                         $ 2,720,001

      Comprehensive income

        Net loss                                               --      $(113,756)             (113,756)
        Change in unrealized depreciation on
          available-for-sale securities, net of
          taxes                                             1,110          1,110                 1,110
                                                                       ---------
           Total comprehensive loss                                    $(112,646)
                                                                       =========
      Issuance of stock                                        --                              118,568
                                                       ----------                          -----------
    Balance, March 31, 2006                            $  (31,087)                         $ 2,725,923
                                                       ==========                          ===========
</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 $2,460,205.
     Costs  associated  with the Conversion were deducted from the proceeds from
     the sale of the common stock and totaled $317,045.

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
     balance  sheets,  statements  of  operations,  statement  of cash flows and
     statement of changes in stockholders'  equity 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, 2005 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  accordance  with
     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  included in the Company's Form 10-KSB annual
     report for 2005 filed with the  Securities  and  Exchange  Commission.  The
     results of operations for periods



                                       8

<PAGE>


     presented  are not  necessarily  indicative  of the  results  which  may be
     expected for the entire year.

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


3.   STOCK-BASED EMPLOYEE COMPENSATION PLAN

     At March 31,  2006,  the Company has a  stock-based  employee  compensation
     plan, which is described more fully in the notes to the Company's  December
     31, 2005 audited  financial  statements  contained in the Company's  Annual
     Report  on Form  10-KSB.  The  Company  accounts  for this  plan  under the
     recognition  and measurement  principles of APB Opinion No. 25,  Accounting
     for Stock Issued to Employees, and related Interpretations.  No stock-based
     employee  compensation  cost is  reflected  in net  income,  as all options
     granted under this plan had an exercise  price equal to the market value of
     the  underlying  common  stock  on the  grant  date.  The  following  table
     illustrates  the effect on net income and earnings per share if the Company
     had applied the fair value provisions of FASB Statement No. 123, Accounting
     for Stock-Based Compensation, to stock-based employee compensation.

                                                          For the three month
                                                             period ended
                                                               March 31,
                                                                 2005
                                                          -------------------

     Net loss, as reported                                 $     (118,458)

     Less total stock-based employee
        compensation cost determined under
        the fair value based method, net of
        income taxes                                                3,239
                                                           --------------

     Pro forma net loss                                    $     (121,697)
                                                           ==============

     Earnings per share:
         Basic - as reported                               $        (0.43)
                                                           ==============
         Basic - pro forma                                 $        (0.44)
                                                           ==============
         Diluted - as reported                             $        (0.43)
                                                           ==============
         Diluted - pro forma                               $        (0.44)
                                                           ==============

     Restricted Stock Plan

     The Company has a Restricted  Stock Plan,  covering  8,331 shares of common
     stock, whose purpose is to reward and to retain personnel of experience and
     ability  in  key  positions  of  responsibility   with  the  Bank  and  any
     subsidiaries   with  an  increased   equity  interest  in  the  Company  as
     compensation   for  their  prior  and   anticipated   future   professional
     contributions and service to the Bank and any subsidiaries.  Shares awarded
     under the plan  entitle  the  shareholder  to all  rights  of common  stock
     ownership  except  that the shares may not be sold,  transferred,  pledged,
     exchanged,  or  otherwise  disposed  of until the  shares  are  earned  and
     non-forfeitable.  The shares awarded under the Restricted


                                       9


<PAGE>

     Stock Plan shall be earned and non-forfeitable at the rate of one-fifth per
     year over five  years  from the grant  date.  During  May 2005 the  Company
     granted  5,197 shares with a  restriction  period of five years at a market
     price of $11.50.  Deferred  compensation  expenses  recorded  for the three
     months ended March 31, 2006  relating to these shares of  restricted  stock
     was approximately $3,000.

4.   OTHER COMPREHENSIVE LOSS

     Other comprehensive loss components and related taxes were as follows:

                                          2006        2005
                                          ----        ----

     Unrealized loss on available-
        for-sale securities before
        tax effect                       $(1,684)   $21,144
     Tax benefit                             574      7,189
                                         -------    -------
              Other comprehensive loss   $ 1,110    $13,955
                                         =======    =======

5.   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. Securities authorized in
     connection with the Company's  stock-based  compensation plans could dilute
     earnings  per share in the  future,  but were not  included  in the current
     period's  because  of their  anti-dilutive  effect,  so basic  and  diluted
     earnings per share are the same.

     The  following  data show the amounts used in computing  earnings per share
     (EPS).


                                                2006         2005
                                                ----         ----
          Three Months ended March 31,
            Net loss                         $(113,756)   $(118,458)
            Weighted average number of
              common shares                    277,890      277,725
                                             ---------    ---------
                   Basic and dilutive loss
                     per share               $   (0.41)   $   (0.43)
                                             =========    =========






                                       10
<PAGE>


6.   REGULATORY CAPITAL

     The Bank's actual capital and its statutory  required capital levels are as
     follows (dollars in thousands):

<TABLE>
<CAPTION>
                                                             March 31, 2006
                             ----------------------------------------------------------------------------
                                                                                         To be Well
                                                                                      Capitalized Under
                                                              For Capital             Prompt Corrective
                                                           Adequacy Purposes          Action Provisions
                             --------------------        --------------------       ---------------------
                                    Actual                      Required                   Required
                             --------------------        --------------------       ---------------------
                                Amount        %             Amount        %            Amount         %
                             --------------------        --------------------       ---------------------

<S>                          <C>            <C>          <C>            <C>         <C>             <C>
Tier 1 core capital          $3,952         5.45%        $2,901         4.00%       $3,626          5.00%

Tangible equity capital       3,952         5.45%         1,088         1.50%          n/a           n/a

Total Risk based capital      4,338        10.28%         3,377         8.00%        4,221         10.00%

Tier 1 Risk based capital     3,952         9.36%         1,689         4.00%        4,351          6.00%
</TABLE>

<TABLE>
<CAPTION>
                                                           December 31, 2005
                             ----------------------------------------------------------------------------
                                                                                         To be Well
                                                                                      Capitalized Under
                                                              For Capital             Prompt Corrective
                                                           Adequacy Purposes          Action Provisions
                             --------------------        --------------------       ---------------------
                                    Actual                      Required                   Required
                             --------------------        --------------------       ---------------------
                                Amount        %             Amount        %            Amount         %
                             --------------------        --------------------       ---------------------

<S>                           <C>             <C>         <C>         <C>            <C>          <C>
Tier 1 core capital           $3,923          5.47%       $2,871      4.00%          $3,589       5.00%

Tangible equity capital        3,923          5.47%        1,077      1.50%           1,077       1.50%

Total Risk based capital       4,311         10.22%        3,373      8.00%           4,217      10.00%

Tier 1 Risk based capital      3,923          9.30%        1,687      4.00%           2,530       6.00%
</TABLE>









                                       11


<PAGE>



ITEM 2.

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

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 Company 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.


                                       12

<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 $386,546 was adequate, but not excessive,  to absorb estimated credit
losses associated with the loan portfolio at March 31, 2006.

DEFERRED  INCOME TAXES.  We have recorded a net deferred tax asset of $16,000 as
of March 31,  2006,  relating  to the  unrealized  losses on  available-for-sale
securities.  We evaluate  this asset on a quarterly  basis.  We have  recorded a
valuation allowance on our remaining deferred tax asset, as we can not determine
that it is more likely than not that it will be utilized. At March 31, 2006, the
valuation allowance is $605,500.

COMPARISON OF THE RESULTS OF OPERATIONS FOR THE THREE-MONTH PERIODS ENDED
MARCH 31, 2006 AND 2005

NET INCOME. Net loss for the quarter ended March 31, 2006 improved to $(113,800)
($(0.41) per share) compared to a net loss of $(118,500) ($(0.43) per share) for
the same period last year. The improvement in net loss reflects increases in net
interest income and non-interest  income, and a lower provision for loan losses.


                                       13
<PAGE>
NET INTEREST  INCOME.  Net interest income  increased $6,000 or 1.4% to $431,600
for the three  months  ended March 31, 2006  compared to $425,600  for the three
months ended March 31, 2005. This increase reflects a shift in  interest-earning
assets into higher-yielding loans. During the three months ended March 31, 2006,
net loans  averaged  $64.9  million for the period as compared to $53.3  million
during the first three months of fiscal year 2005.  Interest income increased by
$211,600  primarily due to higher  outstanding  loan  balances.  The increase in
interest  income  offset an  increase  in interest  expense  reflecting  both an
increase  in  deposits  and an  increase in  short-term  rates.  With  increased
deposits of $4.9 million,  interest  expense  increased by $205,600.  The Bank's
interest  rate spread  decreased  to 2.13% for the three  months ended March 31,
2006  compared to 2.67% for the three months ended March 31, 2005.  Net interest
margin  decreased  to 2.48% for the 2006  period  compared to 2.84% for the 2005
period.

PROVISION FOR LOAN LOSSES.  The provision for loan losses was $1,500 and $39,000
for the  quarters  ended March 31, 2006 and 2005,  respectively.  The Bank makes
provisions for loan losses in amounts deemed  necessary to maintain the adequacy
of the allowance for loan losses. Net charge-offs were $2,800 during the current
quarter  compared to $5,000 in the comparable  prior-year  period.  At March 31,
2006, the Bank's allowance for loan losses was  approximately  $386,500 or 0.59%
of the gross loan portfolio.

NONINTEREST INCOME. Noninterest income was $103,800 and $81,300 for the quarters
ended March 31, 2006 and 2005,  respectively.  The  increase for the most recent
quarter of $22,500 or 27.7% is reflective  of  management's  ongoing  efforts to
enhance  fee  income.  The  increase in  noninterest  income  included a $36,900
increase in service  charges and fees which the Company  attributes  to a larger
deposit base.  Included in service charges and fees were $24,400 in ATM fees, an
$8,300 increase over 2005 when such fees were categorized as other income.

NONINTEREST EXPENSE.  For the quarter ended March 31, 2006,  noninterest expense
was  $647,700  compared  to  $586,400  for the  quarter  ended  March 31,  2005.
Compensation and benefits  expense  increased by $24,500 or 9.9% to $272,100 for
the three months ended March 31, 2006  compared to $247,600 for the three months
ended March 31, 2005.  The  increase in  compensation  and benefits  expense was
primarily due to a $14,300,  or 99%,  increase in the cost of funding the Bank's
defined  benefit  pension  plan  in  the  current  low  rate  environment.  Also
contributing to the increase in compensation  and benefits expense were a $3,600
decrease  in the  amount of  compensation  deferred  under FASB 91 and $3,000 in
additional deferred  compensation  expense related to the Restricted Stock Plan.
Salaries  increased  by $2,400 or 1.1% to $212,600  for the three  months  ended
March 31, 2006  compared to $210,200  for the three months ended March 31, 2005.
Professional  fees  increased  $15,700 or 82.6% to $34,700 for the quarter ended
March 31, 2006  compared to $19,000 for the first three  months  ended March 31,
2005 primarily due to higher  accruals for legal and accounting  fees.  Computer
and data  processing  expense  increased  by $12,700 or 24.7% to $64,100 for the
three months ended March 31, 2006 compared to $51,400 for the three months ended
March 31, 2005. The increase in computer and data  processing  expense  reflects
the decision to begin offering free internet banking and bill pay in response to
competitive  considerations  as well as  increases  in  charges by our core data
processor.  Other operating expenses increased $12,600, or 16.7%, to $88,100 due
in part to an increase in  regulatory  assessments  for the three  months  ended
March 31,  2006 of $5,000 or 87.7% at $10,700  compared  to $5,700 for the three
months


                                       14
<PAGE>

ended March 31, 2005.  ATM-related  fees increased by $7,600 or 31.9% to $31,400
for the three  months  ended  March 31,  2006  compared to $23,800 for the three
months ended March 31, 2005.  Additionally,  service charges on the Federal Home
Loan Bank correspondent checking account increased by $2,800 or 27.7% to $12,900
for the three  months  ended  March 31,  2006  compared to $10,100 for the three
months ended March 31, 2005.  Advertising expenses decreased $14,500 or 43.4% to
$18,900 for the first three months ended March 31, 2006  compared to $33,400 for
the  quarter  ended  March 31,  2005.  Advertising  expense  for the most recent
quarter, however, does not reflect $10,900 in disputed invoices, which were paid
after the end of the quarter.

The Company is exploring a variety of strategies to reduce noninterest expenses.
It is currently the Company's  intention to de-register  with the SEC at the end
of June when it will be permitted to do so under the OTS Conversion Regulations.
This  action is  expected  to reduce  professional  fees and other  expenses  by
approximately $14,000 per quarter.  Non-employee directors have agreed to forego
Board fees until September  which will save another $9,600 per quarter.  Savings
from other  strategies are anticipated to reduce expenses by $12,000 per quarter
when fully implemented.

INCOME TAX EXPENSE.  There was no provision  for income taxes in either  quarter
due to the  Company's  losses.  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 2004 that it was  appropriate  to
establish a valuation allowance of $418,500 for its net deferred tax assets. The
balance of the valuation allowance at March 31, 2006 was $605,500.

COMPARISON OF FINANCIAL CONDITION AT MARCH 31, 2006 AND DECEMBER 31, 2005

     The  Company's  total  assets as of March 31, 2006 were $72.5  million,  an
increase of $80,000 or 1.1% from December 31, 2005's level of $71.7 million. The
increase was due primarily to growth in the loan portfolio, more specifically an
increase  in  one-to-four  family  first  mortgage  loans which  increased  $1.7
million,  or 3.6%. Net loans  receivable  increased by $668,000,  or 1.0%, which
reflected our continued  marketing efforts.  Commercial loans decreased $600,000
or 7.6% and  decreased  to 10.8% of the loan  portfolio  at March 31,  2006 from
11.3% at December 31, 2005.  The Company's  investment  securities  decreased by
$1,200,  or 0.1%,  to $1.8  million  at March  31,  2006  due to  maturities  of
securities.  Premises and equipment  decreased $51,000,  or 2.2%, due to current
year depreciation.  The Company's cash and cash equivalents as of March 31, 2006
were $2.1  million,  an increase of $103,500  from  December 31, 2005's level of
$2.0 million.

     Liabilities  increased by $733,000, or 1.1%, to $69.7 million due primarily
to a $4.9  million,  or 8.9%,  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  decreased $4.1 million or 31.5% to $8.9 million at March 31, 2006
from $13.0  million at December 31, 2005.  The Bank has used  proceeds  from the
increase in deposits to help pay down the advances.

                                       15
<PAGE>

     Stockholders'  equity  increased  to  $5,900  at March  31,  2006 from $2.7
million at  December  31,  2005.  The small  increase  in  stockholders'  equity
principally  reflects  $113,800  in losses  during the period and was  partially
offset by $118,600 in proceeds from the private  placement sale of 14,821 shares
of Common Stock during the quarter.

ASSET QUALITY

The following table sets forth  information  regarding the Bank's  nonperforming
assets at the dates indicated.

                                                  MARCH 31,         DECEMBER 31,
                                                    2006               2005
                                                 -----------        ------------

  Non-accrual loans                              $266,000           $263,000
  Accruing loans past due 90 days or more          75,000             44,000
                                                 --------           --------
    Total non-performing loans                    341,000            307,000
  Foreclosed assets                                  --                   --
                                                 --------           --------
    Total non-performing assets                  $341,000           $307,000
                                                 ========           ========

Non-accrual  loans at March 31, 2006  consisted of eight loans.  There were four
accruing loans past due 90 days or more at March 31, 2006.

At March 31, 2006, 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:

                                           THREE MONTHS ENDED
                                                MARCH 31,
                                    ---------------------------
                                        2006            2005
                                    -----------      ----------

Balance, beginning of period         $ 387,822       $ 319,937
Loans charged off                       (3,197)         (7,199)
Loan recoveries                            421           2,240
                                     ---------       ---------
     Net charge-offs                    (2,776)         (4,959)

                                         1,500          39,000
Provision for loan losses
                                     ---------       ---------

Balance, end of period               $ 386,546       $ 353,978
                                     =========       =========

The increase in net charge-offs  during the 2006 period reflects  write-downs in
connection with a foreclosure and charge-offs of consumer loans.

LIQUIDITY AND CAPITAL RESOURCES

The Company currently has no operating  business other than that of the Bank and
does not have material funding needs other than servicing its outstanding  debt.
In the future,  the Company may require funds for dividends and tax payments for
which it will rely on dividends and other  distributions from the Bank. The Bank
is subject to various regulatory restrictions on the payment of dividends.


                                       16
<PAGE>


The  Bank's  primary  sources  of funds  are  deposits,  repayment  of loans and
mortgage-backed  securities,  maturities  of  investments  and  interest-bearing
deposits and funds  provided  from  operations.  The Bank is also able to obtain
advances from the FHLB of Cincinnati,  although  historically  the Bank has done
this rarely. While scheduled repayments of loans and mortgage-backed  securities
and maturities of investment  securities are relatively  predictable  sources of
funds,  deposit flows and loan prepayments are greatly influenced by the general
level of interest rates, economic conditions and competition.  The Bank uses its
liquidity resources principally to fund existing and future loan commitments, to
fund maturing time  certificates  and demand deposit  withdrawals,  to invest in
other  interest-earning  assets,  to maintain  liquidity,  and to meet operating
expenses.

Liquidity  may be adversely  affected by  unexpected  deposit  outflows,  higher
interest rates paid by competitors,  adverse  publicity  relating to the savings
and loan industry, and similar matters.  Management monitors projected liquidity
needs and determines the level  desirable,  based in part on our  commitments to
make loans and management's assessment of our ability to generate funds.

A major portion of our liquidity  consists of cash and cash  equivalents,  which
include cash and  interest-bearing  deposits in other banks.  The level of these
assets  is  dependent  upon our  operating,  investing,  lending  and  financing
activities during any given period. At March 31, 2006, cash and cash equivalents
totaled $2.1 million.

The  Bank's  primary  investing  activities  include  origination  of loans  and
purchases of investment and mortgage-backed securities.  During the three months
ended March 31, 2006 and 2005, while loan originations  totaled $6.5 million and
$7.6 million,  respectively.  These  investments were funded in part by proceeds
from repayments of loans, maturities and calls of investment and mortgage-backed
securities and an increase in deposits.

At March 31,  2006,  the Bank had $2.7  million in  outstanding  commitments  to
originate  loans.  The  Bank  anticipates  that it will  have  sufficient  funds
available to meet its current loan origination  commitments.  Time certificates,
which are  scheduled  to mature in one year or less,  totaled  $24.6  million at
March 31, 2006.  Based on  historical  experience,  management  believes  that a
significant  portion of such deposits will remain with the Bank,  although there
can be no  assurance  that it will do so.  In the  event  the Bank is  unable to
retain  these  deposits,  it may seek  replacement  funding  through the FHLB of
Cincinnati or other sources.

The Bank relies  primarily on local deposits for its funding needs.  In order to
finance loan growth,  the Bank may also borrow from the FHLB of  Cincinnati.  At
March 31, 2006, the Bank had $22.3 million in unused  borrowing  capacity at the
FHLB of Cincinnati.

The Bank is subject to minimum capital requirements under OTS regulations. Under
these  regulations,  the Bank must  maintain a Tier 1 or Core  Capital  ratio of
5.0%, a Tier 1 Risk-Based Ratio of 6.0% and a total risk-based ratio of 10.0% to
be "well  capitalized."  At March 31, 2006, the Bank's Tier 1/Core Capital ratio
was  5.45%,  its  Tier 1  risk-based  capital  ratio  was  9.36%  and its  total
risk-based   capital  ratio  was  10.28%.   In  order  to  maintain  the  Bank's
well-capitalized"  status, however, the Company was required to raise capital at
quarter end in a private  placement of common stock to directors.  Subsequent to
the end of the quarter, the Company raised an additional

                                       17
<PAGE>

$276,000  from  the sale of  common  stock.  Estimated  offering  expenses  were
approximately  $35,000.  No assurance  can be given that the Company will not be
required to raise  additional  capital to maintain  the Bank's  well-capitalized
status or that the Bank's well-capitalized status will be maintained.

The  Company  has  previously  borrowed  $850,000  on a line  of  credit  from a
correspondent bank and $400,000 from directors to provide  additional  liquidity
at the holding  company level and for capital  contributions  for the Bank.  The
line of credit provides for an interest rate at the prime rate plus 0.25% and is
secured by the  Company's  stock in the Bank.  Interest  on the  borrowing  from
directors  is at 7.50% per annum.  Both of these  borrowings  are  scheduled  to
mature on May 17, 2006. The Company  currently  anticipates that it will be able
to renew these  borrowings on similar terms but does not have any  assurances in
this  regard.  In the event that the Company is unable to renew its  third-party
borrowing on acceptable terms, it would not have currently  sufficient resources
to repay the indebtedness and would seek to replace the borrowing with financing
from another source or raise additional equity capital in a private placement or
pursue a combination of these  strategies.  There can be no assurance,  however,
that the Company would be able to successfully replace its current funding if it
is not available on acceptable terms or that it could avoid default.



                                       18

<PAGE>

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,  due to the material  weaknesses
described  below,  the Company's  disclosure  controls and  procedures  were not
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.

In connection  with their audit of our financial  statements  for the year ended
December 31, 2005, the Company's independent  registered public accounting firm,
King +  Company,  PSC,  identified  a  material  weakness,  as defined in Public
Company  Accounting  Oversight  Board Standard No. 2, in the Company's  internal
control  over  financial  reporting.  Specifically,  King + Company  PSC noted a
failure to timely perform various account  reconciliations.  Management believes
that this  weakness is  primarily  attributable  to human  resource  limitations
within our  accounting  and financial  reporting  function and has  instituted a
schedule for accomplishing this task.

Other than as described above,  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.


                                       19
<PAGE>

Part II
                                OTHER INFORMATION


ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
         -----------------------------------------------------------

         (a) During the quarter  ended March 31,  2006,  the  Registrant  sold a
total of 14,821 shares of common stock,  $.01 par value, in a private  placement
under Rule 506 to directors of the  Registrant.  The total offering price of the
common   stock  was  $118,568   (including   the   cancellation   of  $9,874  in
indebtedness).  The Registrant did not use an underwriter or placement agent for
this offering.

ITEM 6.  EXHIBITS
         --------

         The following exhibits are either being filed with or
         incorporated by reference in this quarterly report on Form
         10-QSB:
<TABLE>
<CAPTION>

         Number   Description
         ------   -----------
         <S>      <C>
         3.1      Articles of Incorporation *
         3.2      Bylaws *
         4        Form of Common Stock Certificate *
         10.1     Employment Agreement with William M. Tandy *
         10.2     2004 Stock Option Plan **
         10.3     Community First Bank 2005 Restricted Stock Plan ***
         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).
         **       Incorporated by reference from Registrant's Registration
                  Statement on Form S-8 (File No. 333-116450).
         ***      Incorporated by reference from Registrant's Registration
                  Statement on Form S-8 (File No. 333-125769).
</TABLE>






                                       20




<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: August 8, 2006                /s/ William M. Tandy
                                    --------------------------------------------
                                    William M. Tandy, President
                                    (Duly Authorized Representative)


Date: August 8, 2006                /s/ Michael D. Wortham
                                    --------------------------------------------
                                    Michael D. Wortham, Vice President
                                    (Chief Financial Officer)






                                       21