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 June 30, 2004

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

     For the transition period from _________ to _________


                         Commission File Number 0-50322
                                                -------


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


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


              2420 North Main Street, Madisonville, Kentucky 42431
--------------------------------------------------------------------------------
                    (Address of principal executive offices)


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


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


         Check whether the issuer (1) filed all reports  required to be filed by
Section 13 or 15(d) of the  Exchange  Act during the past 12 months (or for such
shorter period that the  registrant was required to file such reports),  and (2)
has been subject to such filing requirements for the past 90 days.
         Yes  X    No
             ---      ---

         As of June 30,  2004,  there were  277,725  shares of the  Registrant's
common stock, par value $.01 per share, outstanding.

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

                          COMMUNITY FIRST BANCORP, INC.

                             Madisonville, Kentucky

                                      INDEX

                                                                            Page
                                                                            ----

PART I.  FINANCIAL INFORMATION
------

Item 1.  Financial Statements

         Condensed Consolidated Balance Sheets as of June 30, 2004
                  (unaudited) and December 31, 2003                           3
         Condensed Consolidated Statements of Operations - (Unaudited)
                  for the three and six months ended June 30, 2004
                  and 2003                                                    4
         Condensed Consolidated Statements of Cash Flows - (Unaudited)
                  for the six months ended June 30, 2004 and 2003             5
         Condensed Consolidated Statements of Changes in Stockholders'
                  Equity for the six months ended June 30, 2004 and 2003      7
         Notes to Condensed Consolidated Financial Statements
                  (Unaudited)                                                 8

Item 2.  Management's Discussion and Analysis of Financial                   11
                  Condition and Results of Operations

Item 3.  Controls and Procedures                                             17

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

Item 4.  Submission of Matters to a Vote of Security Holders                 18

Item 6.  Exhibits and Reports on Form 8-K                                    18

Signatures                                                                   19


<PAGE>

                          COMMUNITY FIRST BANCORP, INC.
                      CONDENSED CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                           June 30,      December 31,
                                                             2004            2003
                                                         ------------    ------------
                                                           (Unaudited)
<S>                                                    <C>             <C>
                                 Assets
Cash and cash equivalents:
    Cash and due from banks                              $    506,942    $  1,068,146
    Interest-bearing demand deposits                          641,072          15,916
    Interest-bearing time deposits                                  -          25,000
                                                         ------------    ------------
        Total cash and cash equivalents                     1,148,014       1,109,062

Securities, held-to-maturity (market values of
   $464,228 and $1,535,160 at June 30, 2004
   and December 31, 2003, respectively)                       453,940       1,424,067
Securities, available-for-sale, at fair value               1,952,275       1,975,718
Loans, net of the allowance for loan loss of
   $246,653 and $180,955 at June 30, 2004 and
   December 31, 2003, respectively                         42,407,600      35,066,142
Premises and equipment, net                                 2,348,150       1,952,549
Federal Home Loan Bank (FHLB) stock                           672,700         659,600
Interest receivable                                           195,799         159,150
Deferred income taxes                                         333,005         127,677
Other assets                                                   84,417          67,499
                                                         ------------    ------------

        Total assets                                     $ 49,595,900    $ 42,541,464
                                                         ============    ============

                  Liabilities and Stockholders' Equity
Liabilities:
    Deposits                                             $ 38,125,270    $ 33,171,526
    FHLB advances                                           7,500,000       5,000,000
    Interest payable and other liabilities                    169,450         161,171
                                                         ------------    ------------

        Total liabilities                                  45,794,720      38,332,697
                                                         ------------    ------------
Stockholders' equity:
    Preferred stock, $.01 par value;
      authorized 1,000,000 shares                                   -               -
    Common stock, $.01 par value: authorized,
      5,000,000 shares; issued and outstanding
      277,725 at June 30, 2004 and December
      31, 2003                                                  2,777           2,777
    Additional paid-in capital                              2,457,428       2,466,428
    Retained earnings - substantially
      restricted                                            1,378,082       1,763,045
    Accumulated other comprehensive income                    (37,107)        (23,483)
                                                         ------------    ------------

        Total stockholders' equity                          3,801,180       4,208,767
                                                         ------------    ------------
        Total liabilities and stockholders' equity
                                                         $ 49,595,900    $ 42,541,464
                                                         ============    ============
</TABLE>

            See notes to condensed consolidated financial statements.

                                       3
<PAGE>

                          COMMUNITY FIRST BANCORP, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
            For the three and six months ended June 30, 2004 and 2003
                                   (Unaudited)

<TABLE>
<CAPTION>
                                    Three Months Ended             Six Months Ended
                                         June 30,                      June 30,
                                --------------------------    --------------------------
                                    2004           2003           2004           2003
                                -----------    -----------    -----------    -----------
<S>                           <C>            <C>            <C>            <C>
Interest and dividend income:
 Loans                          $   619,084    $   505,799    $ 1,165,306    $   989,344
 Investment Securities               19,887         25,429         50,380         54,240
 Dividends on FHLB Stock              6,560          6,386         13,120         12,640
                                -----------    -----------    -----------    -----------
      Total interest and
        dividend income             645,531        537,614      1,228,806      1,056,224
                                -----------    -----------    -----------    -----------

Interest expense:
 Deposits                           247,243        213,360        447,770        408,222
 FHLB advances                       14,743          2,306         32,250          4,730
                                -----------    -----------    -----------    -----------
      Total interest expense        261,986        215,666        480,020        412,952
                                -----------    -----------    -----------    -----------

      Net interest income           383,545        321,948        748,786        643,272

  Provision for loan losses          30,000         13,000         69,000         32,000
                                -----------    -----------    -----------    -----------
      Net interest income
        after provision for
          loan losses               353,545        308,948        679,786        611,272
                                -----------    -----------    -----------    -----------
Noninterest income:
  Service charges and fees           54,926         28,964         94,656         62,378
  Loss on sale of foreclosed
    Assets                                -              -            404              -
  Foreclosed real estate
    expense, Net                     (1,063)             -         (2,765)             -
  Insurance commissions and
    Premiums                         (3,756)           778          2,225          2,644
  Other income                        2,275          2,913          8,363         10,751
                                -----------    -----------    -----------    -----------
    Total noninterest income         52,382         32,655        102,883         75,773
                                -----------    -----------    -----------    -----------
Noninterest expense:
  Compensation and benefits         264,283        134,195        519,345        253,650
  Directors fees                     10,800         10,800         21,600         21,600
  Occupancy expense                  78,654         39,185        191,019         70,559
  Insurance premiums                  9,324          6,291         17,917         11,919
  Data processing                    29,883         49,858        109,537         89,241
  Advertising                        41,534         19,343         85,599         37,398
  Office supplies and postage        32,595         14,862         79,619         29,222
  Payroll and other taxes            26,269         18,451         51,502         35,584
  Professional fees                  35,184         10,219         77,809         17,455
  Expenses related to
    conversion of data
    processor                             -              -        110,834              -
  Other operating expenses           62,927         25,139        101,159         48,971
                                -----------    -----------    -----------    -----------
      Total noninterest
          expense                   591,453        328,343      1,365,940        615,599
                                -----------    -----------    -----------    -----------
Income (loss) before income
  taxes                            (185,526)        13,260       (583,271)        71,446
Provision (credit) for income
  taxes benefit                     (63,079)        55,368       (198,308)        55,368
                                -----------    -----------    -----------    -----------

Net income (loss)               $  (122,447)   $    68,628    $  (384,963)   $   126,814
                                ===========    ===========    ===========    ===========
Basic earnings (loss) per
  share                         $     (0.44)   $      0.25    $     (1.39)   $      0.46
                                ===========    ===========    ===========    ===========
</TABLE>

            See notes to condensed consolidated financial statements.

                                       4
<PAGE>

                          COMMUNITY FIRST BANCORP, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                 For the six months ended June 30, 2004 and 2003
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                 Six Months Ended
                                                                      June 30
                                                             --------------------------
                                                                 2004           2003
                                                             -----------    -----------
<S>                                                        <C>            <C>
Operating Activities:
    Net income (loss)                                        $  (384,963)   $   126,814
    Adjustments to reconcile net income (loss) to net
      cash provided by operating activities:
        FHLB stock dividend                                      (13,100)       (12,500)
        Provision for loan losses                                 69,000         32,000
        Depreciation, amortization and accretion                  94,290         27,800
        Loss on sale of foreclosed assets                            404              -
        Deferred income tax benefit                             (198,309)       (55,368)
        Change in assets and liabilities:
            Other assets                                         (17,322)             -
            Accrued interest receivable and other assets         (36,649)       (70,155)
            Accrued interest payable and other liabilities         8,278         13,932
                                                             -----------    -----------
                Net cash provided (used) by
                  operating activities                          (478,371)        62,523
                                                             -----------    -----------
Investing Activities:
    Net increase in loans                                     (7,410,458)    (4,004,276)
    Proceeds from maturities/calls of held-to-maturity
       Securities                                                970,127        439,914
    Purchases of available-for-sale securities                         -     (2,014,098)
    Purchases of premises and equipment                         (487,090)      (447,130)
                                                             -----------    -----------
                Net cash used in investing
                  Activities                                  (6,927,421)    (6,025,590)
                                                             -----------    -----------

Financing Activities:
    Net increase in deposits                                   4,953,744      2,399,864
    Payments on short-term borrowings                         (3,000,000)    (1,500,000)
    Proceeds from short-term borrowings                        5,500,000      2,000,000
    Net proceeds/(costs) from issuance of common stock            (9,000)     2,515,565
                                                             -----------    -----------

                Net cash provided by financing activities      7,444,744      5,415,429
                                                             -----------    -----------

Net increase (decrease) in cash and cash equivalents              38,952       (547,638)
Cash and cash equivalents, beginning of period                 1,109,062        758,126
                                                             -----------    -----------
Cash and cash equivalents, end of period                     $ 1,148,014    $   210,488
                                                             ===========    ===========
</TABLE>

            See notes to condensed consolidated financial statements.

                                       5
<PAGE>

                          COMMUNITY FIRST BANCORP, INC.
           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, Continued
                 For the six months ended June 30, 2004 and 2003
                                   (Unaudited)



                                                     Six Months Ended
                                                         June 30,
                                                 ------------------------
                                                   2004            2003
                                                 --------        --------

Supplemental Disclosures:
Cash paid for interest                           $471,869        $413,489
                                                 ========        ========

Non-cash Transactions:
Federal Home Loan Bank Stock dividend received   $ 13,100        $ 12,500
                                                 ========        ========


            See notes to condensed consolidated financial statements.

                                       6
<PAGE>

                          COMMUNITY FIRST BANCORP, INC.
      CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                 For the six months ended June 30, 2004 and 2003
                                   (Unaudited)


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

Balance, January 1, 2003                            0    $    0   $        0   $1,748,866     $      0                   $1,748,866

  Comprehensive income
    Net income                                     --        --           --      126,814           --     $ 126,814        126,814
                                                                                                            ========

    Issuance of stock                         277,725     2,777    2,509,380           --                                 2,512,157

Balance, June 30, 2003                        277,725     2,777    2,509,380    1,875,680            0                    4,387,837
                                              =======     =====    =========    =========      =======                    =========

Balance, January 1, 2004                      277,725     2,777    2,466,428    1,763,045      (23,483)                   4,208,767

  Comprehensive income
    Net loss                                       --        --           --   $ (384,963)          --     $(384,963)      (384,963)
    Change in unrealized depreciation on
      available-for-sale securities, net of
      taxes                                        --        --           --           --      (13,624)      (13,624)       (13,624)
                                                                                                            --------

       Total comprehensive loss                                                                            $(398,587)            --
                                                                                                            ========

  Costs of stock issuance                                             (9,000)          --           --                       (9,000)
                                              -------     -----    ---------    ---------      -------                    ---------

Balance, June 30, 2004                        277,725    $2,777   $2,457,428   $1,378,082     $(37,107)                  $3,801,180
                                              =======     =====    =========    =========      =======                    =========
</TABLE>

           See notes to condensed consolidated financial statements.

                                       7
<PAGE>

                          COMMUNITY FIRST BANCORP, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

1.       COMMUNITY FIRST BANCORP, INC.

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

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

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

2.       BASIS OF PRESENTATION

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

                                       8
<PAGE>

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


3.       OTHER COMPREHENSIVE LOSS

         Other comprehensive loss components and related taxes were as follows:

                                                2004           2003
                                                ----           ----

         Unrealized loss on available-
            for-sale securities before
            tax effect                        $20,643         $  --
         Tax benefit                           (7,019)           --
                                              -------         -----
                  Other comprehensive loss    $13,624         $  --
                                              =======         =====


  4.     EARNINGS PER SHARE

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

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

                                               2004               2003
                                            ---------          ---------
           Six Months ended June 30,
             Net income (loss)              $(384,963)         $ 126,814
             Weighted average number of
               common shares                  277,725            277,725
                                            ---------          ---------
                    Basic Earnings (Loss)
                      per share             $   (1.39)         $    0.46
                                            =========          =========


                                               2004               2003
                                            ---------          ---------
           Three Months ended June 30,
             Net income (loss)              $(122,447)         $  68,628
             Weighted average number of
               common shares                  277,725            277,725
                                            ---------          ---------
                    Basic Earnings (Loss)
                      per share             $   (0.44)         $    0.25
                                            =========          =========


                                       9

<PAGE>

     5. REGULATORY CAPITAL

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

<TABLE>
<CAPTION>
                                                              June 30, 2004
                             ---------------------------------------------------------------------------------
                                                               For Capital                 To be Well
                                                            Adequacy Purposes           Capitalized Under
                                                                                        Prompt Corrective
                                                                                        Action Provisions
                             -------------------------   -------------------------  --------------------------
                                       Actual                     Required                    Required
                             -------------------------   -------------------------  --------------------------
                                Amount        %             Amount        %            Amount         %
                             -------------------------   -------------------------  --------------------------
<S>                            <C>        <C>              <C>        <C>             <C>         <C>
Core capital                     $  3,734    7.48%           $  1,997   4.00%           $  2,996    6.00%
Tangible capital                    3,734    7.48%              1,997   4.00%                n/a      n/a
Total Risk based capital            3,981   13.88%              2,293   8.00%              2,868   10.00%
Tier 1 Risk based capital           3,734   13.02%                n/a     n/a              2,496    5.00%

</TABLE>

                                       10

<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 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.

                                       11
<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 $246,653 was adequate, but not excessive,  to absorb estimated credit
losses associated with the loan portfolio at June 30, 2004.

Deferred  Income  Taxes.  We have a deferred tax asset of $333,005.  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 June 30, 2004,
there is no  valuation  allowance  established.  The  deferred tax asset will be
utilized  as we  become  profitable.  Prior to the  expenses  incurred  with our
computer  conversion  and the  opening  of our new  main  office,  we had  three
consecutive  profitable  quarters from January 2003 through  September 2003. The
estimate of the realizable amount of this asset is a critical accounting policy.

                                       12

<PAGE>

COMPARISON  OF THE  RESULTS OF  OPERATIONS  FOR THE THREE AND SIX MONTH  PERIODS
ENDED JUNE 30, 2004 AND 2003

Net Income/Loss.  Net loss for the three months ended June 30, 2004 was $122,000
compared to net income of $68,000 for the three months ended June 30, 2003.  Net
loss for the six months ended June 30, 2004 was $385,000  compared to net income
of $126,800 for the six months ended June 30, 2003.  The  Company's net loss for
the three and six months  ended June 30, 2004  reflects  expenses  incurred as a
result of  opening a new main  office,  as well as  expenses  associated  with a
computer  conversion  which  offset  improvements  in net  interest  income  and
noninterest income.

Net Interest Income.  Net interest income increased $61,600 or 19.1% to $383,500
for the three  months  ended June 30, 2004  compared  to $321,900  for the three
months  ended June 30,  2003.  Year-to-date  net  interest  income was  $748,800
compared  to $643,300  for the six months  ended June 30,  2003,  an increase of
$105,500 or 16.4%.  The increase in net interest  income during the 2004 periods
was attributable to a higher volume of loans.  Interest income for the three and
six months  ended June 30, 2004 was $645,500 and  $1,228,800,  respectively,  an
increase of $107,900 and $172,600 over the prior year.  The increase in interest
income  reflects  a higher  volume  of  interest-earning  assets  and a shift in
interest-earning  assets into higher-yielding loans. During the six months ended
June 30, 2004,  net loans  averaged  $38.3 million for the period as compared to
$28.1  million  during the first six months of fiscal year 2003,  an increase of
$10.1  million or 36.3%.  While  interest  rates  decreased  during this period,
interest income increased by $172,600  primarily due to higher  outstanding loan
balances.  Net interest  income also benefited from reduced deposit costs in the
lower  interest  rate  environment  as higher  costing  certificates  of deposit
matured. With increased deposits of $7.6 million,  interest expense increased by
$46,300 and $67,100 for the three and six months ended June 30, 2004. The Bank's
interest  rate spread  decreased to 3.28% for the six months ended June 30, 2004
compared to 3.87% for the six months  ended June 30, 2003 The  narrowing  of the
spread was  primarily  attributable  to two  short-term  certificate  of deposit
promotions  conducted  in  connection  with the opening of the new office  which
attracted  approximately  $2.1 million in new deposits.  We anticipate  that the
impact  of  these  promotions  on our  cost  of  funds  will  decline  as  these
certificates  matured  at the end of the second  quarter.  Net  interest  margin
decreased to 3.61% for the 2004 period compared to 3.85% for the 2003 period.

Provision for Loan Losses. The provision for loan losses was $30,000 and $69,000
for the three and six months  ended June 30,  2004,  respectively,  compared  to
$13,000  and  $32,000  for the  three  and  six  months  ended  June  30,  2003,
respectively.  The Bank  makes  provisions  for loan  losses in  amounts  deemed
necessary to maintain the adequacy of the allowance for loan losses. At June 30,
2004,  the Bank's  allowance  for loan losses was $246,700 or 0.58% of the gross
loan portfolio.

Noninterest  Income.  Noninterest income was $52,400 and $102,900 for the  three
and six months  ended  June 30,  2004,  respectively,  compared  to $32,700  and
$75,800  for the three and six months  ended June 30,  2003,  respectively.  The
increase for the most recent periods is due primarily to increases in the volume
of non-sufficient funds fees and overdraft fees.

                                       13
<PAGE>

Noninterest Expense. Noninterest expense was $591,500 and $328,300 for the three
months ended June 30, 2004 and 2003,  respectively,  and $1,365,900 and $615,600
for the six months ended June 30, 2004 and 2003, respectively. The increases for
the three  months of  $263,200  or 80.2% and for the six months of  $750,300  or
121.9% were due  primarily  to the  addition  of a new main office and  expenses
incurred in the computer conversion.  The opening of the new main office and its
related  renovations and improvements  created increased  occupancy  expenses of
$39,500 or 100.7% to $78,700 for the three months  ended June 30, 2004  compared
to $39,200 for the three months ended June 30, 2003.  For the six-month  period,
occupancy expense increased $120,500 or 170.7% to $191,000.  Computer conversion
expenses  totaling  $102,600  for the six months  ended June 30,  2004  included
billed items from our previous data processor of $22,700 for data test tapes and
$30,700 for online deconversion services. During the three months ended June 30,
2004  our  previous  data  processor  refunded  us  $8,300  for  overpayment  of
deconversion expenses. Also included were items from our new data processor such
as data mapping and converting,  parameter setup,  item processing  setup,  data
communication  installation  fees, and software license fees.  Computer and data
processing  expense  increased  decreased by $20,000 or 40.1% to $29,900 for the
three months ended June 30, 2004  compared to $49,900 for the three months ended
June 30, 2003 and  increased  by $20,300 or 22.7% to $109,500 for the six months
ended June 30, 2004 and  compared  to $89,200 for the six months  ended June 30,
2003.  Compensation  and  benefits  expense  increased  by  $130,100 or 96.9% to
$264,300 for the three  months ended June 30, 2004  compared to $134,200 for the
three months ended June 30, 2003 and increased by $265,700 or 104.8% to $519,300
for the six months  ended June 30, 2004  compared to $253,700 for the six months
ended June 30, 2003.  Salaries  for  officers  increased by $50,100 or 103.2% to
$98,600 for the three  months  ended June 30, 2004 and  increased by $107,700 or
112.7% to $203,200  for the six months  ended June 30, 2004  compared to $48,500
and $95,500 for the three and six months ended June 30,  2003.  The increase was
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 $44,500 or
79.0% to $100,900  for the three  months  ended June 30, 2004 and  increased  by
$77,200 or 77.7% to 176,500 for the six months  ended June 30, 2004  compared to
$56,400 and $99,300 for the three and six months  ended June 30, 2003 due to the
addition  of six new  employees  hired  to help  with  staffing  of the new main
office.  Advertising  expenses  increased  $22,200 or 114.7% to $41,500  for the
three months ended June 30, 2004 and increased $48,200, or 128.9% to $85,600 for
the six months ended June 30, 2004 compared to $19,300 and $37,400 for the three
and six months  ended June 30, 2003.  The change was due  primarily to marketing
the new main  office and the  activities  associated  with its grand  opening on
March 5, 2004, as well as marketing  efforts to explain our computer  conversion
and its effects to our customers. Office supplies and postage expenses increased
$18,000  or 119.3% to  $32,600  for the three  months  ended  June 30,  2004 and
increased  $50,400,  or 172.5% to $79,600 for the six months ended June 30, 2004
compared  to $14,900  and  $29,200  for the three and six months  ended June 30,
2003.  The change was due  primarily  to the  purchase  of  necessary  paper and
supplies  required  to open the new main  office.  Professional  fees  increased
$25,000  or 135.3% to  $35,200  for the three  months  ended  June 30,  2004 and
increased  $60,400,  or 206.5% to $77,800 for the six months ended June 30, 2004
compared  to $10,200  and  $29,200  for the three and six months  ended June 30,
2003.  The change was due  primarily to  additional  legal and  accounting  fees
incurred in connection with SEC reporting requirements.

Income Tax Expense.  The Company  provides for both the current and deferred tax
effects of the transactions reported in its financial statements and

                                       14
<PAGE>

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  future  projected  earnings,  and  other  factors,  the  Bank has not
established a valuation allowance for its net deferred tax assets.


COMPARISON OF BALANCE SHEETS AT JUNE 30, 2004 AND DECEMBER 31, 2003

The Company's  total assets as of June 30, 2004 were $49.6 million,  an increase
of $7.1 million or 16.7% from  December 31, 2003's level of $42.5  million.  The
increase was due primarily to growth in the loan portfolio, more specifically an
increase in commercial real estate loans. Net loans receivable increased by $7.3
million,  or  20.9%,  which  reflected  our  continued  marketing  efforts.  The
Company's investment securities decreased by $993,600, or 29.2%, to $2.4 million
at June  30,  2004 due to  maturities  of  securities.  Premises  and  equipment
increased $395,600, or 20.3%,  primarily due to the opening of a new main office
and the purchase of equipment for the new office.  The  Company's  cash and cash
equivalents  as of June 30,  2004 were $1.15  million,  an  increase  of $39,000
from December 31, 2003's level of $1.1 million.

Liabilities  increased by $7.5 million, or 19.5%, to $45.8 million due primarily
to a $5.0  million,  or 14.9%,  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  increased  $2.5 million or 50.0% to $7.5 million at June 30, 2004
from $5.0  million at December  31, 2003.  The Bank has used  proceeds  from the
advances to help meet loan demand.

Stockholders'  equity  decreased  to $3.8  million  at June 30,  2004  from $4.2
million at December 31, 2003. The decrease in stockholders'  equity  principally
reflects $385,000 in losses during the period.

At June 30, 2004,  the Bank was in  compliance  with all  applicable  regulatory
capital  requirements  with tangible and core capital equal to 7.48% of adjusted
total  assets  and total  risk-based  capital  equal to 13.88% of  risk-weighted
assets.

ASSET QUALITY

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

                                                   June 30,   December 31,
                                                    2004         2003
                                                ----------    -----------

    Non-accrual loans                              $95,000       $ 28,000
    Accruing loans past due 90 days or more         19,000         20,000
                                                   -------       --------

    Total non-performing loans                    $114,000        $48,000
                                                  ========        =======


Accruing  loans  past due 90 days or more at June 30,  2004  consisted  of three
loans, all of which are approximately equal in size.

                                       15
<PAGE>

At June 30, 2004,  there were no loans  outstanding  not  reflected in the above
table as to which known  information about possible credit problems of borrowers
caused  management to have serious doubts as to the ability of such borrowers to
comply with present loan repayment terms.

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

                                                  Six Months Ended
                                                      June 30,
                                             -------------------------
                                                2004            2003
                                             ---------       ---------

              Balance, beginning of period   $ 180,955       $ 105,868
              Loans charged off                 (3,819)         (1,584)
              Loan recoveries                      517             895
                                             ---------       ---------

                   Net charge-offs              (3,302)           (689)


              Provision for loan losses         69,000          32,000
                                             ---------       ---------

              Balance, end of period         $ 246,653       $ 137,179
                                             =========       =========


LIQUIDITY AND CAPITAL RESOURCES

The Company  currently  has no  operating  business  and does not have  material
funding  needs.  In the future,  the Company may require funds for dividends and
tax payments for which it will rely on dividends  and other  distributions  from
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 June 30, 2004,  totaled  $1.15  million
compared  to  $210,000 at June 30,  2003.  The Bank's  cash flows were  provided
mainly  by  financing  activities,  including  $5.0  million  from  net  deposit
increases and $2.5 million net increase in FHLB borrowings. Operating activities
used $478,400 in cash for the six months ended June 30, 2004 compared to $62,500
provided  in cash for the six  months  ended June 30,  2003.  The Bank used cash
flows of $6.9 million for its investing activities primarily to fund an increase
in gross loans of $7.4 million.

At June 30,  2004,  the Bank had  outstanding  commitments  to  originate  loans
totaling $2.7 million,  excluding $306,000 in unused home equity lines of credit
and $17,000 in other  lines of credit.  Additionally,  the Bank had  undisbursed
commitments on construction loans closed totaling $892,000.  Management believes
that the Bank's sources of funds are  sufficient to fund

                                       16
<PAGE>

all of its outstanding commitments. Certificates of deposit, which are scheduled
to  mature  in one year or less  from  June 30,  2004,  totaled  $12.7  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
Tier I Capital to  average  assets of at least 5% and ratios of Tier I and total
capital to risk-weighted assets of at least 6% and 10% respectively. At June 30,
2004, the Bank satisfied the capital  requirements  for  classification  as well
capitalized under OTS regulations.

ITEM 3.  CONTROLS AND PROCEDURES

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

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

                                       17

<PAGE>

Part II
                                OTHER INFORMATION

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
        ---------------------------------------------------

On May 20, 2004,  the Company held its annual meeting of  stockholders  at which
the following items were voted on.

(1)      Election of Directors

     Nominee                                    For         Withheld
------------------------------------------------------    ------------
Steven E. Carson                              243,038        13,158
J. Craig Riddle                               242,563        13,633
William M. Tandy                              243,038        13,158

There were no abstentions or broker non-votes in the election of Directors.

(2)      2004 Stock Option Plan
                                                               Broker
         For               Against          Abstain           Non-Vote
         ---               -------          -------           --------

         147,852           50,723             547              57,074

(3)      2004 Restricted Stock Plan
                                                               Broker
         For               Against          Abstain           Non-Vote
         ---               -------          -------           --------

         132,002           65,748            1,372              57,074


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

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

       Number  Description
       ------  -----------
       3.1     Articles of Incorporation *
       3.2     Bylaws
       4       Form of Common Stock Certificate *
      10.1     Employment Agreement with William M. Tandy *
      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
      ---------------

     *    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).


         (b) Reports on Form 8-K. None.

                                       18

<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 10, 2004               /s/William M. Tandy
                                    --------------------------------------------
                                    William M. Tandy, President
                                    (Duly Authorized Representative)


Date: August 10, 2004               /s/Michael D. Wortham
                                    --------------------------------------------
                                    Michael D. Wortham, Vice President
                                    (Chief Financial Officer)


                                       19