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, 2005

[ ]  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,  2005,  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, 2005
                  (unaudited) and December 31, 2004                           3
         Condensed Consolidated Statements of Operations - (Unaudited)
                  for the three months ended March 31, 2005 and 2004          4
         Condensed Consolidated Statements of Cash Flows - (Unaudited)
                  for the three months ended March 31, 2005 and 2004          5
         Condensed Consolidated Statements of Changes in Stockholders'
                  Equity for the three months ended March 31, 2005 and 2004   7
         Notes to Condensed Consolidated Financial Statements
                  (Unaudited)                                                 8

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

Item 3.  Controls and Procedures                                             18

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

Item 6.  Exhibits                                                            19

Signatures                                                                   20

<PAGE>

                          COMMUNITY FIRST BANCORP, INC.
                      CONDENSED CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                           March 31,      December 31,
                                                              2005            2004
                                                         ------------    ------------
                                                         (Unaudited)
<S>                                                     <C>             <C>
                                 Assets
Cash and cash equivalents:
    Cash and due from banks                              $    665,719    $    614,155
    Interest-bearing demand deposits                        1,643,342       2,179,041
    Interest-bearing time deposits                          1,000,000       3,000,000
                                                         ------------    ------------
        Total cash and cash equivalents                     3,309,061       5,793,196

Securities, held-to-maturity (market values of
   $90,090 and $95,025 at March 31, 2005
   and December 31, 2004, respectively)                        85,880          88,965
Securities, available-for-sale, at fair value               2,192,532       2,215,285
Loans, net of the allowance for loan loss of
   $353,978 and $319,937 at March 31, 2005
   and December 31, 2004, respectively                     55,883,360      51,931,555
Premises and equipment, net                                 2,443,324       2,495,324
Federal Home Loan Bank (FHLB) stock                           694,600         687,000
Interest receivable                                           249,473         227,066
Deferred income taxes                                          21,710          14,521
Other assets                                                   51,074          50,467
                                                         ------------    ------------
        Total assets                                     $ 64,931,014    $ 63,503,379
                                                         ============    ============

                  Liabilities and Stockholders' Equity
Liabilities:
    Deposits                                             $ 50,900,800    $ 46,466,036
    FHLB advances                                          10,000,000      13,000,000
    Advances under line of credit                             750,000         750,000
    Interest payable and other liabilities                    249,132         123,848
                                                         ------------    ------------
        Total liabilities                                  61,899,932      60,339,884
                                                         ------------    ------------

Commitments and contingencies                                       -               -

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, 2005 and
      December 31, 2004                                         2,777           2,777
    Additional paid-in capital                              2,457,428       2,457,428
    Retained earnings - substantially
      restricted                                              613,019         731,477
    Accumulated other comprehensive loss                      (42,142)        (28,187)
                                                         ------------    ------------
        Total stockholders' equity                          3,031,082       3,163,495
                                                         ------------    ------------
        Total liabilities and stockholders' equity
                                                         $ 64,931,014    $ 63,503,379
                                                         ============    ============
</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, 2005 and 2004
                                   (Unaudited)


                                                Three Months Ended
                                                     March 31,
                                           -----------------------------
                                              2005                2004
                                           ---------           ---------
Interest and Dividend Income:
  Loans                                    $ 757,263           $ 546,222
  Investment securities                       24,843              30,493
  Dividends on FHLB stock                      8,325               6,560
                                           ---------           ---------
      Total interest and dividend income     790,431             583,275
                                           ---------           ---------

Interest Expense:
  Deposits                                   289,397             200,527
  FHLB advances                               65,231              17,507
  Other borrowings                            10,188                   -
                                           ---------           ---------
      Total interest expense                 364,816             218,034
                                           ---------           ---------

Net Interest Income                          425,615             365,241

Provision for loan losses                     39,000              39,000
                                           ---------           ---------
Net interest income after provision for
   loan losses                               386,615             326,241
                                           ---------           ---------

Noninterest Income
  Service charges and fees                    59,067              39,730
  Loss on sale of other real estate                -                 404
  Foreclosed real estate expense, net           (595)             (1,702)
  Loss on sale of repossessed vehicles        (2,760)                  -
  Insurance commissions and premiums             581               5,981
  Other income                                25,044               6,088
                                           ---------           ---------
      Total noninterest income                81,337              50,501
                                           ---------           ---------

Noninterest Expense
  Compensation and benefits                  247,610             255,062
  Directors fees                              10,800              10,800
  Occupancy expense                           77,528             112,365
  Insurance premiums                           5,360               8,593
  Data processing                             51,415              79,654
  Advertising                                 33,353              44,065
  Office supplies, telephone and postage      32,289              47,024
  Payroll and other taxes                     33,510              25,233
  Professional fees                           19,046              42,625
  Data processor conversion expenses               -             110,834
  Other operating expenses                    75,499              38,232
                                           ---------           ---------
     Total noninterest expense               586,410             774,487
                                           ---------           ---------

Loss Before Income Taxes                    (118,458)           (397,745)
Provision (Credit) for Income Taxes                -            (135,229)
                                           ---------           ---------
Net loss                                   $(118,458)          $(262,516)
                                           =========           =========
Basic earnings (loss) per share            $   (0.43)          $   (0.95)
                                           =========           =========
Diluted earnings (loss) per share          $   (0.43)          $   (0.95)
                                           =========           =========


            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, 2005 and 2004
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                Three Months Ended
                                                                     March 31,
                                                             --------------------------
                                                                 2005           2004
                                                             -----------    -----------
<S>                                                         <C>            <C>
Operating Activities:
    Net loss                                                 $  (118,458)   $  (262,516)
    Adjustments to reconcile net loss to net
      cash provided by operating activities:
        FHLB stock dividend                                       (7,600)        (6,500)
        Provision for loan losses                                 39,000         39,000
        Depreciation, amortization and accretion                  56,427         54,761
        Loss on sale of foreclosed assets                              -            404
        Deferred income tax benefit                                    -       (135,230)
        Change in assets and liabilities:
            Other assets                                            (606)         9,423
            Accrued interest receivable and other assets         (22,407)       (39,935)
            Accrued interest payable and other liabilities       125,284        (55,214)
                                                             -----------    -----------

                Net cash provided/(used) by
                  operating activities                            71,640       (395,807)
                                                             -----------    -----------

Investing Activities:
    Net increase in loans                                     (3,990,805)    (3,195,299)
    Proceeds from maturities/calls of held-to-maturity
       securities                                                  3,085        361,773
    Purchases of premises and equipment                           (2,819)      (457,996)
                                                             -----------    -----------

                Net cash used in investing activities         (3,990,539)    (3,291,522)
                                                             -----------    -----------

Financing Activities:
    Net increase in deposits                                   4,434,764      4,058,497
    Payments on short-term borrowings                         (5,000,000)    (1,000,000)
    Proceeds from short-term borrowings                        2,000,000      2,000,000
                                                             -----------    -----------

                Net cash provided by financing activities      1,434,764      5,058,497
                                                             -----------    -----------

Net (decrease) increase in cash and cash equivalents          (2,484,135)     1,371,168
Cash and cash equivalents, beginning of period                 5,793,196      1,109,062
                                                             -----------    -----------
Cash and cash equivalents, end of period                     $ 3,309,061    $ 2,480,230
                                                             ===========    ===========
</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, 2005 and 2004
                                   (Unaudited)





                                                             Three Months Ended
                                                                  March 31,
                                                           ---------------------
                                                              2005        2004
                                                           ---------   ---------

Supplemental Disclosures:
Cash paid for interest                                      $354,628    $213,645
                                                            ========    ========

Non-cash Transactions:
Federal Home Loan Bank Stock dividend received              $  7,600    $  6,500
                                                            ========    ========
Loans transferred to foreclosed real estate                 $     --    $ 27,600
                                                            ========    ========
Loans to facilitate the sale of foreclosed real estate      $     --    $ 29,000
                                                            ========    ========


            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, 2005 and 2004
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                  Accumulated
                                       Common Stock       Additional                Other
                                     ------------------     Paid-in   Retained  Comprehenstive  Comprehensive
                                       Shares   Amount      Capital   Earnings   Income (Loss)  Income (Loss)     Total
                                     ----------------------------------------------------------------------------------------------

<S>                                  <C>       <C>      <C>        <C>              <C>           <C>                  <C>
    Balance, January 1, 2004          277,725   $2,777   $2,466,428 $1,763,045       $(23,483)            --            $4,208,767

      Comprehensive income
        Net loss                           --       --           --   (262,516)            --      $(262,516)             (262,516)
        Change in unrealized
          depreciation on
          available-for-sale
          securities, net of taxes         --       --           --         --         18,303         18,303                18,303
                                                                                                   ---------
           Total comprehensive loss                                                                $(244,213)                   --
                                      -------   ------   ---------- ----------       --------      =========            ----------

    Balance, March 31, 2004           277,725   $2,777   $2,466,428 $1,500,529       $ (5,180)                          $3,964,554
                                     ========   ======   ========== ==========       ========                           ==========

    Balance, January 1, 2005          277,725   $2,777   $2,457,428 $  731,477       $(28,187)            --            $3,163,495

      Comprehensive income

        Net loss                           --       --           --   (118,458)            --      $(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           277,725   $2,777   $2,457,428 $  613,019       $(42,142)                          $3,031,082
                                      =======   ======   ========== ==========       ========                           ==========
</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 statements of condition,  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, 2004 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 2004 filed with the Securities
         and Exchange  Commission.  The  statements  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 Options

         At March 31, 2005, the Company has a stock-based employee  compensation
         plan,  which is  described  more  fully in the  notes to the  Company's
         December  31,  2004  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)
                                                          ============

                                       9

<PAGE>

4.       OTHER COMPREHENSIVE LOSS

         Other comprehensive loss components and related taxes were as follows:

                                                2005              2004
                                              ---------         ---------

         Unrealized loss on available-
            for-sale securities before
            tax effect                        $  21,144         $  27,732
         Tax benefit                              7,189             9,429
                                              ---------         ---------
                  Other comprehensive loss    $  13,955         $  18,303
                                              =========         =========


  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.  Since there
         are no dilutive  securities,  basic and diluted  earnings per share are
         the same.

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

                                                         2005           2004
                                                      ---------      ---------
                  Three Months ended March 31,
                    Net loss                          $(118,458)     $(262,516)
                    Weighted average number of
                      common shares                     277,272        277,272
                                                      ---------      ---------
                           Basic and dilutive loss
                             per share                $   (0.43)     $   (0.95)
                                                      =========      =========

                                       10

<PAGE>

  6.     REGULATORY CAPITAL

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

                                                 March 31, 2005
                             ---------------------------------------------------
                                                                   To be Well
                                                                  Capitalized
                                                                     Under
                                                                     Prompt
                                                   For Capital    Corrective
                                                    Adequacy         Action
                                                    Purposes        Provisions
                             ----------------    ---------------  --------------
                                   Actual            Required         Required
                             ----------------    ---------------  --------------
                              Amount      %       Amount      %    Amount    %
                             ----------------    ---------------  --------------

Tier 1 core capital          $3,743    5.76%     $2,600    4.00%  $3,899   5.00%
Tangible equity capital       3,743    5.76%      2,600    1.50%     n/a     n/a
Total Risk based capital      4,097   10.98%      2,985    8.00%   3,731  10.00%
Tier 1 Risk based capital     3,743   10.03%        n/a     n/a    3,250   6.00%


                                       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 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,  expenses  related to the opening of the new office 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 $353,978 was adequate, but not excessive,  to absorb estimated credit
losses associated with the loan portfolio at March 31, 2005.

Deferred  Income Taxes.  We have a recorded  deferred tax asset of $21,700 as of
March 31, 2005.  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, 2005, the valuation allowance is $458,800.

                                       13

<PAGE>

COMPARISON OF THE RESULTS OF OPERATIONS  FOR THE THREE MONTH PERIODS ENDED
MARCH 31, 2005 AND 2004

Net Income. Net loss for the quarter ended March 31, 2005 improved to $(118,500)
($(0.43) per share) compared to a net loss of $(262,500) ($(0.95) per share) for
the same period last year.  The  Company's  net loss for the three  months ended
March 31, 2005 reflects increased interest  expenses,  particularly  relating to
interest  paid for  Federal  Home  Loan Bank  advances.  The Bank  continues  to
experience a reduction in its net interest margin.  Also contributing to the net
loss were continued high, but falling, levels of non-interest expense.

Net Interest Income.  Net interest income increased $60,400 or 16.5% to $425,600
for the three  months  ended March 31, 2005  compared to $365,200  for the three
months ended March 31, 2004. This increase reflects a shift in  interest-earning
assets into higher-yielding loans. During the three months ended March 31, 2005,
net loans  averaged  $54.7  million for the period as compared to $36.3  million
during  the  first  three  months of  fiscal  year  2004.  With  interest  rates
increasing during this period,  interest income increased by $207,200  primarily
due to higher outstanding loan balances. Net interest income also benefited from
reduced deposit costs as higher costing certificates of deposit matured and were
replaced with lower-costing  certificates of deposit. With increased deposits of
$13.7 million,  interest expense increased by $146,800. The Bank's interest rate
spread  decreased to 2.67% for the three months ended March 31, 2005 compared to
3.22% for the three months ended March 31, 2004. Net interest  margin  decreased
to 2.84% for the 2005 period compared to 3.19% for the 2004 period.

Provision  for Loan Losses.  The  provision  for loan losses was $39,000 for the
quarters  ended  March 31,  2005 and 2004.  The Bank makes  provisions  for loan
losses in amounts deemed necessary to maintain the adequacy of the allowance for
loan  losses.  At March 31,  2005,  the  Bank's  allowance  for loan  losses was
approximately $354,000 or 0.63% of the gross loan portfolio.

Noninterest Income.  Noninterest income was $81,300 and $50,500 for the quarters
ended March 31, 2005 and 2004,  respectively.  The  increase for the most recent
quarter of $30,800 or 61.0% is reflective  of  management's  ongoing  efforts to
enhance  fee  income.  The  increase in  noninterest  income  included a $19,000
increase in service  charges and fees which the Company  attributes  to a larger
deposit base and a $19,000 increase in other income which includes $9,000 on ATM
fees.

Noninterest Expense.  For the quarter ended March 31, 2005,  noninterest expense
was  $586,400  compared to $774,500 for the quarter  ended March 31,  2004.  The
decrease  in  noninterest  expense  for the quarter of $188,100 or 22.3% was due
primarily  to the  absence of the data  processor  conversion  related  expenses
incurred during 2004.  During the quarter ended March 31, 2004 expenses  related
to the conversion of the data  processor  totaled  $110,834  compared to no such
expenses during the current quarter.  Data processor conversion expenses for the
three months ended March 31, 2004  included  billed items from our previous data
processor  of $22,700 for data test tapes and  $30,700  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 decreased by $28,300 or 35.5% to $51,400 for the three months
ended March 31, 2005  compared to $79,700 for the three  months  ended March 31,
2004.  Compensation

                                       14

<PAGE>

and  benefits  expense  decreased  by $7,500 or 2.9% to  $247,600  for the three
months  ended March 31, 2005  compared to $255,100  for the three  months  ended
March  31,  2004.  The  reduction  can be  attributed  primarily  to FASB No. 91
Accounting  for  Nonrefundable  Fees and Costs  Associated  with  Originating or
Acquiring  Loans and Initial Direct Costs of Leases.  The FASB No. 91 accounting
entry for the  quarter  ended March 31,  2005  resulted  in a deferred  salaries
expense  reduction of $20,600.  No such entry was made during the quarter  ended
March 31, 2004. Additionally, employee education expense decreased by $14,100 or
86.3% to $2,200 as extensive employee training for the data processor conversion
was not  incurred  during the quarter  ended March 31, 2005 as it was during the
quarter ended March 31, 2004.  Salaries for officers increased by $9,800 or 9.3%
to $114,300 for the three  months ended March 31, 2005  compared to $104,600 for
the three  months  ended  March 31,  2004 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 $20,300 or 26.9% to $95,900 for the three
months ended March 31, 2005 compared to $75,600 for the three months ended March
31, 2004 due to the addition of six new employees hired to help with staffing of
the new main office. These increases were offset by declines in benefits expense
including  insurance and  retirement  expense.  Advertising  expenses  decreased
$10,700 or 24.3% to $33,400  for the first  three  months  ended  March 31, 2005
compared to $44,100 for the quarter ended March 31, 2004.  The reduction was due
primarily  to not  having  the  need to  market  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  decreased  $14,700 or 31.3% to
$32,300 for the first three months ended March 31, 2005  compared to $47,000 for
the quarter ended March 31, 2004.  The reduction was due primarily to not having
the startup expenses associated with opening the new location experienced during
the first  quarter  of 2004.  Professional  fees  decreased  $23,600 or 55.3% to
$19,000 for the quarter  ended March 31, 2005  compared to $42,600 for the first
three months ended March 31, 2004. Monthly accruals are now being used for Audit
and  Accounting  expenses to more evenly  distribute  these  costs,  rather than
paying for these services from an expense account as they are incurred.

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 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, 2005 is $458,800.


COMPARISON OF BALANCE SHEETS AT MARCH 31, 2005 AND DECEMBER 31, 2004

         The Company's total assets as of March 31, 2005 were $64.9 million,  an
increase  of $1.4  million  or 2.2%  from  December  31,  2004's  level of $63.5
million.  The increase was due primarily to growth in the loan  portfolio,  more
specifically an increase in one-to-four  family first mortgage loans.  Net loans
receivable  increased by $4.0 million,  or 7.6%,  which  reflected our continued
marketing efforts. Commercial loans increased $929,000 or 13.3% and increased to
14.2% of the loan  portfolio  at March 31, 2005 from 10.2% at

                                       15

<PAGE>

December 31, 2004. The Company's investment  securities decreased by $25,800, or
1.1%, to $2.28 million at March 31, 2005 from $2.30 million at December 31, 2004
due to maturities of securities.  Premises and equipment  decreased $52,000,  or
2.1%,  primarily  due to the  disposal of old and  outdated  fixed  assets.  The
Company's cash and cash  equivalents  as of March 31, 2005 were $3.3 million,  a
decrease of $2.5 million from December 31,  2004's level of $5.8  million.  This
decrease is due  primarily  to the maturity of $2.0 million in Federal Home Loan
Bank  certificates of deposit that served as pledged  collateral for deposits of
property  tax  receipts  by  the  Hopkins  County  Sheriff's   Department.   The
certificates  of  deposits  were  allowed to mature due to a lower level of such
deposits at March 31, 2005.

         Liabilities  increased by $1.6  million,  or 2.6%, to $61.9 million due
primarily to a $4.4 million, or 9.5%, 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 $3.0 million or 23.1% to $10.0 million at March 31, 2005
from $13.0  million at December 31, 2004.  The Bank has used  proceeds  from the
increase in deposits to help pay down the  advances.  The Company has a $750,000
revolving  line of credit,  which  expires on September  10, 2005.  At March 31,
2005, $750,000 was advanced against this line. The line is collateralized by all
of the Company's stock in the Bank.  Interest varies monthly and is based on the
prime rate,  which was 5.75% on March 31, 2005.  Interest is payable monthly and
principal is due at maturity.

         Stockholders'  equity  decreased to $3.0 million at March 31, 2005 from
$3.2  million at  December  31,  2004.  The  decrease  in  stockholders'  equity
principally reflects $118,500 in losses during the period.

ASSET QUALITY

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

                                                  March 31,   December 31,
                                                     2005          2004
                                                  ---------    ---------

  Non-accrual loans                               $174,000     $131,000
  Accruing loans past due 90 days or more            1,000      165,000
                                                  --------     --------
    Total non-performing loans                     175,000      296,000
  Foreclosed assets                                      0            0
                                                  --------     --------
    Total non-performing assets                   $175,000     $296,000
                                                  ========     ========

Non-accrual  loans at March 31, 2005  consisted of 6 loans.  Accruing loans past
due 90 days or more at March 31, 2005 consisted of 1 loan.

At March 31, 2005,  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.

                                       16

<PAGE>

An analysis of the changes in the allowance for loan losses is as follows:

                                             Three Months Ended
                                                 March 31,
                                       ------------------------------
                                          2005                 2004
                                       ---------            ---------

Balance, beginning of period           $ 319,937            $ 180,955
Loans charged off                         (7,199)                   0
Loan recoveries                            2,240                  216
                                       ---------            ---------
     Net charge-offs                      (4,959)                 216

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

Balance, end of period                 $ 353,978            $ 220,171
                                       =========            =========

LIQUIDITY AND CAPITAL RESOURCES

The Company  currently  has no  operating  business  and does not have  material
ongoing  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  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
proceeds from maturing investment securities.  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,  2005,  totaled $3.3 million
compared  to $5.8  million at  December  31,  2004.  The Bank's  cash flows were
provided mainly by financing activities, including $4.4 million from net deposit
increases.  Operating  activities  provided $71,600 in cash for the three months
ended March 31, 2005  compared  to  $395,800  used in cash for the three  months
ended March 31, 2004. The Bank used cash flows of $4.0 million for its investing
activities primarily to fund an increase in gross loans of $4.0 million.

At March 31, 2005,  the Bank had  outstanding  commitments  to  originate  loans
totaling $2.5 million,  excluding $497,500 in unused home equity lines of credit
and $38,800 in other  lines of credit.  Additionally,  the Bank had  undisbursed
commitments on construction loans closed totaling $430,400.  Management believes
that the Bank's sources of funds are  sufficient to fund all of its  outstanding
commitments.  Certificates of deposit, which are scheduled to mature in one year
or less from March 31, 2005, totaled $23.8 million.  Management  believes that a
significant percentage of such deposits will remain with the Bank.

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

                                       17

<PAGE>

Tier I Risk-based  Capital to average assets of at least 6% and ratios of Tier I
Core and Total Risk-based Capital to risk-weighted assets of at least 5% and 10%
respectively.  At March 31, 2005,  the Bank  satisfied the capital  requirements
under OTS regulations.

The Company has a $750,000  revolving  line of credit with The Banker's  Bank of
Tennessee to provide  additional  liquidity at the holding company level and for
future capital contributions for the Bank if needed. The line of credit provides
for an interest rate which  adjusts  monthly at the prime rate and is secured by
the Company's  stock in the Bank.  Interest is payable  monthly and principal is
due at  maturity.  As of March 31, 2005,  the $750,000  line of credit was fully
drawn.  The  current  interest  rate on this line is  5.75%.  The line of credit
matures on September 10, 2005. The Company currently anticipates that it will be
able to renew the line of credit at that time.

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, except as noted below, 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.

In connection  with their audit of our financial  statements  for the year ended
December 31, 2004, our independent  registered public accounting firm, BKD, LLP,
identified certain material weaknesses,  as defined in Public Company Accounting
Oversight  Board  Standard  No.  2,  in  our  internal  control  over  financial
reporting.  Specifically,  BKD LLP noted a failure  to  timely  perform  various
account reconciliations,  to adequately prepare GAAP basis financial statements,
and to segregate certain reconciliation  duties.  Management believes that these
weaknesses are primarily  attributable to human resource  limitations within our
accounting and financial  reporting function and has reallocated  reconciliation
responsibilities within the function and instituted a schedule for accomplishing
these  tasks.  In  addition,  BKD LLP noted the absence of  processes to compute
deferred loan fees and costs and calculate  deferred tax assets and liabilities.

In  response,   management  has  adopted  additional  procedures  for  reviewing
financial  statement   calculations  and  disclosures,   implemented  additional
controls with respect to payroll and ATM  reconciliations,  adopted  systems for
updating borrowers'  financial  information and deferral of loan fees and costs,
instituted procedures for timely reconciliation of correspondent  accounts, loan
and deposit  sub-ledgers,  prepaid and other assets and accrued  liabilities and
adopted additional controls with regard to journal entries.

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.

                                       18

<PAGE>

Part II
                                OTHER INFORMATION

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 **
          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
</TABLE>

         ---------------
         *    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).


                                       19

<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 16, 2005                          /s/William M. Tandy
                                            ------------------------------------
                                            William M. Tandy, President
                                            (Duly Authorized Representative)


Date: May 16, 2005                          /s/Michael D. Wortham
                                            ------------------------------------
                                            Michael D. Wortham, Vice President
                                            (Chief Financial Officer)


                                       20