U.S. SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549

                                   FORM 10-Q

(Mark One)

[X]  Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
     Act of 1934

     For the quarterly period ended September 30, 1999

[ ]  Transition Report Pursuant to Section 13 or 15(d) of the Exchange Act

     For the transition period from ______ to ______

                       Commission File Number: 0-22543

                       COMMUNITY FIRST BANKING COMPANY
------------------------------------------------------------------------------
            (Exact name of registrant as specified in its charter)

                 GEORGIA                              58-2309605
   ---------------------------------            ---------------------
   (State or Other Jurisdiction of              (I.R.S. Employer
   Incorporation or Organization)               Identification No.)

                                110 Dixie Street
                            Carrollton, Georgia 30117
                                 (770) 834-1071

            -------------------------------------------------------
          (Address of Principal Executive Offices and Telephone Number)

     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. Yes X  No_

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest  practicable date: As of November 10, 1999, there
were  3,282,054   shares  issued  and  2,614,462   shares   outstanding  of  the
Registrant's Common Stock, par value $.01 per share.

CONTENTS

PART I.  FINANCIAL INFORMATION
         ---------------------
Item 1.  Financial Statements

     Consolidated  Balance  Sheets as of  September  30,  1999  (unaudited)  and
          December 31, 1998

     Consolidated  Statements  of Earnings  for the Three and Nine Months  Ended
          September 30, 1999 and 1998 (unaudited)

     Consolidated  Statements  of  Comprehensive  Income  for the Three and Nine
          Months Ended September 30, 1999 and 1998 (unaudited)

     Consolidated  Statements of Cash Flows for the Nine Months Ended  September
          30, 1999 and 1998 (unaudited)

     Notes to Consolidated Financial Statements

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

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

PART II. OTHER INFORMATION

Item 1.  Legal Proceedings

Item 2.  Changes in Securities

Item 3.  Defaults Upon Senior Securities

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

Item 5.  Other Information

Item 6.  Exhibits and Reports on Form 8-K

SIGNATURES
<PAGE>
                         COMMUNITY FIRST BANKING COMPANY
                           Consolidated Balance Sheets
                            (In thousands of dollars)
<TABLE>
<CAPTION>
                                                                September 30,  December 31,
                            Assets                                   1999          1998
                                                                 (unaudited)
<S>                                                                <C>          <C>
Cash and due from banks ..........................................      8,133      10,883
Interest-bearing deposits in financial institutions ..............        777       3,553
Federal funds sold ...............................................      4,720      18,300
                                                                       ------      ------
   Cash & cash equivalents .......................................     13,630      32,736

Securities available for sale ....................................     67,222      71,702
Securities held to maturity ......................................        189         232
Other investments ................................................      3,038       2,328
Mortgage loans held for sale .....................................         59         199
Loans, net .......................................................    283,544     264,855
Premises and equipment net .......................................      7,561       8,160
Accrued interest receivable ......................................      2,833       2,558
Other real estate and repossessions ..............................        582       5,479
Other assets .....................................................      5,123       3,737
                                                                       ------      ------
   Total assets ..................................................    383,781     391,986
                                                                      =======     =======

                Liabilities and Stockholders' Equity
Deposits:
  Demand .........................................................     15,210      13,611
  Interest-bearing demand ........................................     56,468      52,644
  Savings ........................................................     31,005      31,630
  Time ...........................................................    148,928     146,603
  Time, over $100,000 ............................................     42,863      41,449
                                                                       ------      ------
     Total deposits ..............................................    294,474     285,937

Note payable and other borrowings ................................     58,392      47,945
Subordinated debentures ..........................................       --           900
Payable for branch sales..........................................       --        27,461
Accrued interest payable and other liabilities ...................      3,751       3,619
                                                                       ------      ------
     Total liabilities ...........................................    356,617     365,862

Stockholders' Equity:
 Convertible preferred stock, par value $.01, 96,542 shares issued          1           1
 Common stock, $.01 par, 10,000,000 authorized, 3,282,054 issued .         33          33
 Additional paid in capital ......................................     13,776      13,481
 Unearned ESOP shares and stock awards ...........................     (1,956)     (4,196)
 Retained earnings ...............................................     27,308      26,611
 Treasury stock at cost ..........................................     (9,369)     (9,021)
 Accumulated other comprehensive income and (loss) ...............     (2,629)       (785)
                                                                       ------      ------
     Total stockholders' equity ..................................     27,164      26,124

  Total liabilities & stockholders' equity .......................    383,781     391,986
                                                                      =======     =======
</TABLE>
See Notes to Consolidated Financial Statements.
<PAGE>
                         COMMUNITY FIRST BANKING COMPANY
                       Consolidated Statement of Earnings
                                  (Unaudited)
                 (In thousands of dollars - except per share data)
<TABLE>
<CAPTION>
                                                                  Three Months Ended      Nine Months Ended
                                                                     September 30,          September 30,
                                                                     1999      1998         1999     1998
<S>                                                                <C>       <C>          <C>      <C>
Interest income:
 Interest and fees on loans ......................................    6,387    6,480       18,960   19,570
 Interest-bearing deposits  and federal funds sold ...............       93      419          404    1,051
 Interest and dividends on investment securities:
   U.S. Treasury .................................................     --         45           89      134
   U.S. Govt. agency and mortgage-backed .........................    1,035    1,106        2,890    3,288
   State, county & municipals ....................................        1       29           60       88
   Other .........................................................       70       93          228      250
                                                                      -----    -----       ------   ------
     Total interest income .......................................    7,586    8,172       22,631   24,381

Interest Expense:
 Interest on deposits:
   Demand ........................................................      302      399          855    1,109
   Savings .......................................................      163      250          491      844
   Time ..........................................................    2,578    2,951        7,788    8,772
                                                                      -----    -----       ------   ------
                                                                      3,043    3,600        9,134   10,725
Interest on note payable and other borrowings ....................      747      758        2,415    1,700
                                                                      -----    -----       ------   ------
          Total interest expense .................................    3,790    4,358       11,549   12,425
                                                                      -----    -----       ------   ------
           Net interest income ...................................    3,796    3,814       11,082   11,956
                                                                      -----    -----       ------   ------
Provision for loan losses ........................................      237      226          602      561
                                                                      -----    -----       ------   ------
          Net interest income after provision for loan losses ....    3,559    3,588       10,480   11,395

Noninterest income:
   Service charges on deposits ...................................      556      810        1,702    2,280
   Gain (Loss) on calls and sales of securities available for sale     --        162           46      665
   Insurance commissions .........................................      176      134          537      498
   Miscellaneous .................................................      166      221          550      731
                                                                      -----    -----       ------   ------
          Total noninterest income ...............................      898    1,327        2,835    4,174

Noninterest expenses:
   Salaries and employee benefits ................................    1,566    1,704        4,693    5,178
   ESOP and MRP expense ..........................................      379      525        2,721    2,053
   Occupancy and equipment .......................................      321      548        1,035    1,647
   Deposit insurance premiums ....................................       40       45          124      137
   Other operating ...............................................      861    1,011        2,725    3,340
                                                                      -----    -----       ------   ------
         Total noninterest expense ...............................    3,167    3,833       11,298   12,355
                                                                      -----    -----       ------   ------
         Earnings before income taxes ............................    1,290    1,082        2,017    3,214
Income tax expense ...............................................      397      339          493    1,028
                                                                      -----    -----       ------   ------
               Net earnings ......................................      893      743        1,524    2,186
                                                                      =====    =====        =====    =====

Basic earnings per common share ..................................     0.34     0.23         0.59     0.59
Diluted earnings per common share ................................     0.32     0.22         0.55     0.55
Dividends per common share .......................................    0.115     0.09         0.34     0.24
</TABLE>
See Notes to Consolidated Financial Statements.
<PAGE>
                       COMMUNITY FIRST BANKING COMPANY
                 Consolidated Statements of Comprehensive Income
                      (Unaudited - in thousands of dollars)
<TABLE>
<CAPTION>

                                                                                Three Months Ended      Nine Months Ended
                                                                                   September 30,           September 30,
                                                                                   1999      1998          1999     1998
<S>                                                                             <C>       <C>          <C>       <C>
Net earnings .................................................................      893       743        1,524     2,186
                                                                                 -------   -------      -------   -------
Other  comprehensive  income,  net of  income  taxes:
 Unrealized  gains (losses) on securities available for sale .................   (1,046)   (1,935)      (3,020)   (1,877)
  Income tax on gains (losses) ...............................................     (397)     (658)      (1,147)     (638)
                                                                                 -------   -------      -------   -------
    Unrealized gains (losses) arising during the period, net of tax ..........     (649)   (1,277)      (1,873)   (1,239)

  Less: Reclassification adjustment for gains included in net earnings .......     --         162           46       665
   Income tax on reclassification on adjustments .............................     --          55           17       226
                                                                                 -------   -------      -------   -------
    Reclassification adjustment for gains included in net earnings, net of tax     --         107           29       439
                                                                                 -------   -------      -------   -------
     Other comprehensive income ..............................................     (649)   (1,384)      (1,844)   (1,678)
                                                                                 -------   -------      -------   -------
COMPREHENSIVE INCOME .........................................................      244      (641)        (320)      508
                                                                                 =======   =======      =======   =======
</TABLE>
See Notes to Consolidated Financial Statements.
<PAGE>
                         COMMUNITY FIRST BANKING COMPANY
                      Consolidated Statements of Cash Flows
                      (Unaudited - in thousands of dollars)
<TABLE>
<CAPTION>
                                                                                         Nine Months Ended
                                                                                            September 30,
                                                                                          1999       1998
                                                                                            In thousands
<S>                                                                                    <C>       <C>
Net earnings .......................................................................     1,524      2,186
 Adjustments to reconcile net earnings to net cash provided by operating activities:
  Depreciation, amortization and accretion .........................................       726        973
  Provision for loan losses ........................................................       602        561
  Deferred income tax benefit ......................................................     1,130       --
  Gain on calls and sales of securities available for sale .........................       (46)      (665)
  Gain on sale of other real estate ................................................       (87)      (209)
  Loss (gain) on sales of premises and equipment, net ..............................       (14)        23
  ESOP and MRP compensation expense ................................................     2,721      2,045
  Change in:
    Mortgage loans held for sale ...................................................       140        615
    Accrued interest receivable ....................................................      (275)       243
    Other assets ...................................................................    (1,386)      (425)
    Accrued interest payable .......................................................       101      1,057
    Other liabilities ..............................................................        31        233
                                                                                        -------     ------
       Net cash provided by (used in) operating activities .........................     5,167      6,637
                                                                                        -------     ------

Cash flows from investing activities:
  Proceeds from sales and calls of securities available for sale ...................     8,284     46,494
  Proceeds from maturities of securities held to maturity ..........................        41      3,078
  Proceeds from maturities of securities available for sale ........................     6,055       --
  Purchases of other investments ...................................................    (1,920)       (60)
  Proceeds from sales of other investments .........................................     1,210        974
  Purchases of securities available for sale .......................................   (13,052)   (69,071)
  Net change in loans ..............................................................   (19,291)    20,745
  Proceeds from sale of real estate and repossessions ..............................     4,984      1,332
  Proceeds from sales of premises and equipment ....................................        90         30
  Purchases of premises and equipment ..............................................      (121)    (1,003)
                                                                                        -------     ------
       Net cash provided by (used in) investing activities .........................   (13,720)     2,519
                                                                                        -------     ------

Cash flows from financing activities:
  Net change in demand and savings deposits ........................................     4,798      2,282
  Net change in time deposits ......................................................     3,739     (1,857)
  Payment of FHLB advances .........................................................   (26,303)    (1,153)
  Proceeds from  FHLB advances .....................................................    41,000     40,000
  Change in payable for branch sales ...............................................   (27,461)      --
  Payment of note payable ..........................................................    (4,250)     5,000
  Payment of subordinated debentures ...............................................      (900)      --
  Treasury stock purchased .........................................................      (348)   (39,219)
  Cash dividend paid ...............................................................      (828)      (801)
                                                                                        -------     ------
      Net cash provided by financing activities ....................................   (10,553)     4,252
                                                                                        -------     ------

      Net change in cash and cash equivalents ......................................   (19,106)    13,408
                                                                                        -------     ------
Cash and cash equivalents at beginning of year .....................................    32,736     30,284
                                                                                        -------     ------
Cash and cash equivalents at quarter end ...........................................    13,630     43,692
                                                                                        =======    =======
Supplemental disclosure of cash flow information:
  Cash paid for:
     Interest                                                                           11,448     11,369
     Income taxes                                                                          400      1,250
</TABLE>
See Notes to Consolidated Financial Statements.
<PAGE>
COMMUNITY FIRST BANKING COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 1.  NATURE OF BUSINESS

GENERAL

Community First Banking Company (the "Company") was incorporated in the State of
Georgia on March 12, 1997, for the purpose of becoming a holding  company to own
100% of the  outstanding  capital  stock of Carrollton  Federal  Bank,  FSB (the
"Savings  Bank").  The Savings Bank was organized on August 1, 1994 as a federal
savings bank subsidiary of CF Mutual Holdings (the "Mutual Holding Company"),  a
federally chartered mutual holding company.  Prior to that date, the predecessor
of the Savings Bank had operated as a mutual savings bank since 1929.

On June 27, 1997, a plan of conversion  and  reorganization  whereby the Company
became the unitary  holding  company for the Savings Bank and the dissolution of
the Mutual Holding Company was completed.

On December 29, 1997,  the Savings Bank  converted  from a federal  savings bank
regulated  by the  Office of Thrift  Supervision  to a Georgia  chartered  state
commercial  bank regulated by the Georgia  Department of Banking and Finance and
concurrently  changed the name of the  institution to Community  First Bank (the
"Bank").

NOTE 2.  BASIS OF PRESENTATION

The  accompanying   unaudited  consolidated  financial  statements  (except  for
statements of financial  condition on December 31, 1998, which are audited) have
been prepared in accordance with instructions to Form 10Q. Accordingly,  they do
not include all of the information and footnotes  required by generally accepted
accounting  principles  for  complete  financial  statements.  In the opinion of
management,  all  adjustments  (none of which were other than  normal  recurring
accruals)  necessary  for a fair  presentation  of the  financial  position  and
results of operations  for the periods  presented  have been  included.  Certain
amounts in the prior  year's  financial  statements  have been  reclassified  to
conform with the 1999 presentation. These reclassifications had no effect on net
income. The accompanying  consolidated financial statements include the accounts
of the  Company  and the Bank.  All  significant  intercompany  items  have been
eliminated.

The results of operations for the three and nine months ended September 30, 1999
are not necessarily indicative of the results of operations that may be expected
for the year ended December 31, 1999. The  accompanying  consolidated  financial
statements and related notes of Community  First Banking  Company and subsidiary
should be read in conjunction with the audited consolidated financial statements
and related notes  included in the Company's  Annual Report on Form 10-K for the
year ended December 31, 1998.

NOTE 3.  EARNINGS PER COMMON SHARE

On January 21, 1999,  the  Company's  Board of Directors  declared a two-for-one
common  stock split to be  effected  in the form of a 100% stock  dividend to be
distributed  on  February  16,  1999 to holders of record on  February  1, 1999.
Accordingly,  all  references  to common shares  outstanding  and per share data
throughout  the  consolidated  financial  statements  (except  data  related  to
treasury shares) have been restated to reflect the stock split.

Earnings  per common  share  calculations  for the three and nine month  periods
ended  September 30, 1999 and 1998 are  presented  based on the net earnings for
the three and nine  months  divided  by the  weighted  average  number of shares
outstanding,  or 2,599,860  and  2,586,442  shares  (three and nine months ended
September 30, 1999) and  3,206,166  and 3,700,872  shares (three and nine months
ended September 30, 1998).  Diluted earnings per common share takes into account
the effect of  dilution  from the  assumed  exercise  of all  outstanding  stock
options and awards.  Diluted earnings per common share is calculated by dividing
net earnings by the average number of common shares outstanding adjusted for the
incremental  shares  resulting from the exercise of dilutive  options during the
period,  or 2,792,944 and 3,430,931  shares for the three months ended September
30, 1999 and 1998 respectively,  and 2,784,643 and 3,945,215 for the nine months
ended September 30, 1999 and 1998 respectively.


NOTE 4. DIVIDENDS DECLARED

On March 18, 1999 the Board of Directors of the Company approved a cash dividend
of $.11 per share  which was paid  April 1,  1999 to  stockholders  of record on
March 18, 1999. On June 17, 1999 the Board of Directors of the Company  approved
a cash  diuidend of $.115 per share to be paid July 1, 1999 to  stockholders  of
record on June 18,  1999.  On  September  16, 1999 the Board of Directors of the
Company  approved a cash  diuidend of $.115 per share to be paid October 1, 1999
to stockholders of record on September 17, 1999.


NOTE 5. EMPLOYEE BENEFITS

On June 17 , 1999 the  Compensation  Committee  of the Board of Directors of the
Company voted to accelerate the vesting of the Management Recognition Plan (MRP)
so that the  Restricted  Stock Awards be fully vested as of June 30, 1999.  This
resulted in a charge to compensation  expense of $1.4 million and a reduction in
unearned stock awards of the same amount.

ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

COMPARISON OF FINANCIAL CONDITION AT SEPTEMBER 30, 1999 AND DECEMBER 31, 1998

On September 30, 1999 the Company had total assets of $383.8 million compared to
$392.0 million at December 31, 1998.  This decrease in assets of $8.2 million or
2.1% is  primarily  due to a  decrease  in cash  and cash  equivalents  of $19.1
million  (58.4%);  a decrease in available  for sale  securities of $4.5 million
(6.2%);  and a decrease  in other real  estate of $4.9  million  (89.4%).  These
decreases  were  partially  offset by an increase in net loans of $18.7  million
(7.1%).

The decrease in available for sale securities resulted from sales by the Bank of
$7.1 million,  maturities and  amortization  of premiums of $6.3 million,  and a
mark to market  decrease in value of $3.0 million.  The Company  received a $1.1
million  cash  distribution  in the form of a  non-taxable  return of capital on
equity  securities on June 25, 1999. These decreases were offset by purchases by
the Bank of $13.0 million.

The  increase in loans of $18.7  million  (7.1%) is  primarily  the result of an
increase in  commercial  loans of $24.0  million.  This  increase was  partially
offset by a decrease in mortgage  loans of $1.3 million,  a decrease in consumer
and credit card loans of $3.8  million and an increase in the loan loss  reserve
of $.2 million.

Other  real  estate and  repossessions  decreased  primarily  from the sale of a
parcel of undeveloped  land on April 30, 1999 for $4.4 million and the sale of a
single family residence on September 22, 1999 for $298,000.  No gain or loss was
recognized on either sale.

Other assets  increased $1.4 million  primarily from an increase in deferred tax
asset  ($1.1  million)  resulting  from an increase  in the  unrealized  loss on
available for sale securities.

Total deposit  liabilities  increased $8.5 million (3.0%) from December 31, 1998
to September 30, 1999.  Certificate  of deposits  increased  $3.7 million (2.0%)
while demand deposits and savings increased $4.8 million (4.9%). These increases
resulted  primarily  from offering a new  certificate  of deposit  product,  and
increased  marketing  efforts  of  demand  deposit  accounts  through  increased
advertising and employee incentives.

Note payable and other  borrowings  increased  $10.4  million  during the period
December 31, 1998 to September  30, 1999.  On January 4, 1999 the Bank  borrowed
$24  million  from the FHLB on a daily rate  credit to help fund the payable for
the sale of the Wal*Mart branches that was effective December 31, 1998. The Bank
repaid $10 million to the FHLB  during the first  quarter of 1999 and repaid the
remaining $14 million,  of the $24 million  credit  borrowed on January 4, 1999,
during the three  months  ended June 30,  1999.  During the three  months  ended
September  30, 1999 the bank borrowed $15 million from the FHLB Atlanta of daily
rate credit loans. On September 28, 1999 the bank converted $10 million of daily
rate credit to fixed rate credit with a two year maturity. The Company paid $4.3
million on the line of credit owed to another financial  institution  during the
nine months ended September 30, 1999.

Stockholders  equity  increased  $1.0  million  during  the  nine  months  ended
September  30, 1999.  Additional  paid in capital  increased  $295,000  from the
market  value   adjustment  of  the  ESOP  shares   committed  to  be  released.
Amortization  of unearned  ESOP shares and MRP awards  increased  equity by $2.2
million during the nine months ended  September 30, 1999. As discussed in NOTE 5
of the financial  statements,  the MRP plan became fully vested on June 30, 1999
resulting  in an increase in equity by reducing  unearned  stock  awards by $1.4
million.   The  Company's   Compensation   Committee   believes  that  continued
compensation  expense  charges  against the Company's  earnings over the vesting
period  of the MRP  negatively  affects  the value of the  common  stock and the
acceleration  of the vesting will improve the future  financial  position of the
Company. Retained earnings increased $697,000 from earnings of $1.5 million less
dividends paid of $828,000.  Treasury stock increased $348,000 from the purchase
of 17,418  shares at an average  price of $19.98 per share during  January 1999.
Accumulated other comprehensive loss increased $1.8 million as the result of the
market value  adjustment  of available  for sale  securities  caused by a rising
interest rate environment.


COMPARISON  OF RESULTS OF  OPERATIONS  FOR THE THREE MONTHS ENDED  SEPTEMBER 30,
1999 AND 1998

GENERAL.  The Company had a net income of $893,000  for the three  months  ended
September 30, 1999, an increase of $150,000 over the $743,000 earned in the same
three months in 1998.  This  increase in income  resulted  primarily  from lower
non-interest expenses that were caused by the sale of three Wal*Mart branches on
December 31, 1998.

NET INTEREST  INCOME.  Net interest  income for the three months ended September
30, 1999 decreased  $18,000 or 0.5% compared to the same  three-month  period in
1998. Total interest income  decreased  $586,000 or 7.2%, while interest expense
decreased $568,000 or 13.0%.

The decrease in earnings on interest  bearing assets was caused by lower average
interest  earning  assets which  decreased by $26.5 million for the three months
ended September  30, 1999  compared to the same three  months  average in 1998.
Interest  bearing  liabilities  decreased  $20.8  million in three  months ended
September 30, 1999 compared to the same three months in 1998.

The loan  portfolio mix continues to move away from  residential  mortgage loans
and into higher yielding  commercial loans. The average balance of loans by type
for the third quarters of 1999 and 1998 were as follows:

                                    Average Balances
                                   Three Months Ended
                                      September 30,
                                    1999       1998
                                    ----       ----
                                    (In thousands)
Mortgage loans                   112,371      117,241
Consumer loans                    54,921       59,053
Credit card loans                  2,955        3,542
Commercial loans                 110,206       87,558
                                 -------      -------
                                 280,453      267,394
                                 =======      =======

Interest and fee income on loans decreased  $93,000 or 1.4% in the third quarter
of 1999 compared to the same quarter in 1998, while the average balance of loans
increased  $13.1  million or 4.9%.  Interest  income on  federal  funds sold and
interest bearing deposits decreased $326,000 or 77.8% for the three months ended
September 30, 1999  compared to the same three months of 1998.  This decrease in
income on fed funds  and  deposits  resulted  from use of funds not  needed  for
liquidity being used to fund loans.

The net interest rate spread  measures the difference  between the average yield
on earning  assets and the  average  rate paid on  interest  bearing  sources of
funds.  The net interest rate spread for the quarters  ended  September 30, 1999
and 1998 was 4.27% and 3.91% respectively.

The following table presents average balances,  associated rates earned and paid
for all interest earning assets and interest bearing liabilities,  and variances
caused by volume and rates for the three  months  ended  September  30, 1999 and
1998. (dollars in thousands)
<TABLE>
<CAPTION>

                                                                                                            Three Months Ended
                                                                                                            September 30, 1999
                                                                                                          Compared to Same Three
                                                                                                              Months of 1998
                                   Quarter Ended September 30, 1999    Quarter Ended September 30, 1998  Increase (Decrease) Due To
                                      Average   Interest Effective         Average  Interest Effective    Volume   Rate    Total
                                      Balance    Yield      Rate           Balance    Yield    Rate     Variance Variance Variance
<S>                                   <C>       <C>         <C>           <C>        <C>        <C>       <C>     <C>     <C>
Loans Net                             277,226   6,387       9.24%         263,986    6,480      9.85%       329    (423)    (94)
Interest Bearing Deposits & FF Sold     6,537      93       5.71%          28,739      419      5.85%      (327)     (2)   (330)
Securities                             67,168   1,106       6.60%          84,687    1,273      6.03%      (266)     97    (169)
-------------------------------------------------------------------- ---------------------------------- ------------------------
                                      350,931   7,586       8.67%         377,412    8,172      8.68%      (265)   (328)   (592)
-------------------------------------------------------------------- ---------------------------------- ------------------------
Demand Deposits                        70,830     302       1.71%          74,536      399      2.15%       (20)    (78)    (98)
Savings                                31,563     163       2.07%          37,064      250      2.71%       (38)    (50)    (88)
Certificates of Deposit               191,174   2,578       5.41%         204,348    2,951      5.79%      (192)   (185)   (377)
Borrowings                             51,857     747       5.78%          50,272      758      6.05%        24     (35)    (11)
-------------------------------------------------------------------- ---------------------------------- ------------------------
                                      345,424   3,790       4.40%         366,220    4,358      4.77%      (226)   (348)   (574)
-------------------------------------------------------------------- ---------------------------------- ------------------------
Net interest income & spread                    3,796       4.27%                    3,814      3.91%
Change                                                                                                                      (18)
</TABLE>

PROVISION  FOR LOAN LOSSES.  The  provision for loan losses was $237,000 for the
three months ended  September 30, 1999 compared to $226,000 for the three months
ended  September 30, 1998. At September 30, 1999, the loan loss reserve was $3.1
million or 1.1% of total loans  compared to $2.9  million or 1.1% of total loans
at September 30, 1998.  Management deemed the allowance for loan losses adequate
at September 30, 1999.

NONPERFORMING  ASSETS AND PAST DUE LOANS.  Nonperforming  assets,  comprised  of
non-accrual  loans (loans on which  payments are more than 90 days past due) and
other real estate owned totaled $1.3 million or .3% of total assets at September
30, 1999,  and $5.9 million or 1.5% of total  assets at September  30, 1998.  On
April  30,  1999,  the sale of a large  parcel  of  undeveloped  land,  formerly
recorded as other real estate, was completed.  The sales price was approximately
$4.4 million.  On September 30, 1999 a single family residence formerly recorded
as other real  estate was sold for  $298,000.  No gain or loss was  recorded  on
either of these sales.


OTHER INCOME.  Total noninterest  income decreased  $429,000,  or 32.3%, for the
three months ended September 30, 1999 compared to the same three months in 1998.
Service charges on deposits decreased $254,000 or 31.4% for the third quarter of
1999 verses the same period in 1998 primarily because of the reduction in demand
deposit accounts related to the sale of three Wal*Mart  branches on December 31,
1998. There were no sales of securities for the three months ended September 30,
1999.  During the three months ended September 30, 1998 the Bank and Company had
gains  on the sale  and  calls of  securities  totaling  $162,000.  Income  from
insurance  commissions  increased  $42,000 or 31.3% for the three  months  ended
September  30,  1999  versus  the same three  months in 1998.  The  increase  in
insurance commissions results primarily from the insurance commissions earned by
insurance agency subsidary of the Bank.  Miscellaneous  income decreased $55,000
for the quarter  ended  September  30, 1999 compared to the same three months in
1998 primarily  because of the sale of the three  Wal*Mart  branches on December
31, 1998.

NONINTEREST EXPENSES. Total noninterest expenses decreased $666,000 or 17.4% for
the three months ended  September  30, 1999 as compared to the same three months
in 1998.  Salaries,  occupancy  and other  operating  expense were lower for the
three months ended  September 30, 1999 compared to the same three months of 1998
because of the sale of three Wal*Mart  branches on December 31, 1998 in addition
to the continuation of cost saving measures  initiated during 1998. ESOP and MRP
expense was lower for the three months ended  September 30, 1999 compared to the
same three  months of 1998  because the MRP shares were fully vested at June 30,
1999  as  mentioned  in  note  5  above  of  the  financial  statements.  Normal
amortization  of the MRP expense  prior to fully  vesting the shares on June 30,
1999 was $103,000 per quarter. ESOP expense was lower because the average market
value of the Company's  stock was lower during the three months ended  September
30, 1999 ($19.03) compared to the same three months of 1998 ($21.26).

INCOME TAXES.  Income tax expense for the quarter  ended  September 30, 1999 was
$397,000  (30.8%) on a pretax  income of  $1,290,000.  The Company uses marginal
federal  and state tax rate of  37.96%.  The Bank  uses a  combined  rate of 34%
applied to financial  income  adjusted  for any  permanent  differences  between
financial and taxable  income.  The Bank generates  state  business  license and
occupation tax credits against state income tax. The bank currently has business
and occupation tax carry forward  credits so that no state taxes are due for the
current year so no amount is added to the 34% federal tax rate for the Bank.


COMPARISON OF RESULTS OF OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999
AND 1998

GENERAL.  Net earnings  totaled $1.5 million for the nine months ended September
30,  1999,  a decrease  of 30.3% from the $2.2  million  earned in the same nine
month period in 1998.  This decrease is primarily the result of the  recognition
of the remaining  unamortized  MRP expense  ($1.4  million) in the quarter ended
June 30, 1999. The MRP shares were  originally to vest at a rate of five percent
(5%)  per  quarter  beginning  with  the  quarter  ended  March  31,  1998.  The
Compensation  Committee of the Company believes that acceleration of the vesting
of the MRP shares will improve the future financial  position of the Company and
will not affect the  Company's  ability to retain the services of the  employees
and directors who received the awards. Net interest income decreased $874,000 or
7.3%.  Non-interest  income  decreased  $1.3  million or 32.1% and  non-interest
expense decreased $1.1 million or 8.6%. These and other significant fluctuations
are discussed below.


NET INTEREST  INCOME.  Total interest income decreased $1.8 million or 7.2%, and
total  interest  expense  decreased  $876,000 or 7.1% for the nine months  ended
September 30, 1999 compared to the same nine months in 1998.  The following is a
rate volume  analysis  for the nine  months  ended  September  30, 1999 and 1998
showing the average balances, yields and variances caused by volume and yields.
<TABLE>
<CAPTION>
                                                                                                          Nine Months Ended
                                                                                                      September 30, 1999 Compared
                                         Nine Months Ended              Nine Months Ended             to Same Nine Months of 1998
                                        September 30, 1999             September 30, 1998              Increase (Decrease) Due To
                                      Average  Interest Effective    Average  Interest Effective     Volume    Rate       Total
                                      Balance    Yield    Rate       Balance    Yield    Rate       Variance  Variance  Variance
<S>                                 <C>       <C>      <C>        <C>         <C>       <C>        <C>       <C>        <C>
Loans Net                             271,758   18,960   9.33%      270,066    19,570    9.69%         123     (733)       (610)
Interest Bearing Deposits & FF Sold    10,356      404   5.22%       24,338     1,051    5.77%        (604)     (43)       (647)
Securities                             69,015    3,267   6.33%       82,415     3,760    6.10%        (611)     118        (493)
---------------------------------------------------------------- ------------------------------- -------------------------------
                                      351,129   22,631   8.62%      376,819    24,381    8.65%      (1,662)     (88)     (1,750)
---------------------------------------------------------------- ------------------------------- -------------------------------
Demand Deposits                        68,263      855   1.67%       72,175     1,109    2.05%         (60)    (194)       (254)
Savings                                31,908      491   2.06%       38,359       844    2.94%        (142)    (211)       (353)
Certificates of Deposit               191,079    7,788   5.45%      204,549     8,772    5.73%        (578)    (406)       (984)
Borrowings                             57,077    2,415   5.66%       38,736     1,700    5.87%         805      (90)        715
---------------------------------------------------------------- ------------------------------- -------------------------------
                                      348,327   11,549   4.43%      353,819    12,425    4.70%        (193)    (683)       (876)
---------------------------------------------------------------- ------------------------------- -------------------------------
Net interest income & spread                    11,082   4.18%                 11,956    3.96%
Change in net interest income                                                                                              (874)

</TABLE>

PROVISION  FOR LOAN LOSSES.  The  provision for loan losses was $602,000 for the
nine months ended  September  30, 1999  compared to $561,000 for the nine months
ended  September  30,  1998.  This  increase  has  been  deemed  appropriate  by
management  to  reflect  the  higher  risk  associated  with the  change in loan
portfolio  mix  to  a  higher  percentage  of  commercial  loans  as  previously
discussed.

OTHER INCOME. Total noninterest income decreased $1.3 million, or 32.1%, for the
nine  months  ended  September  30,  1999  versus the same nine  months in 1998.
Service charges on deposits decreased  $578,000 or 25.4% primarily,  as a result
of the sale of the three Wal*Mart  branches on December 31, 1998. Gains on sales
of  securities  were only $46,000 for the nine months ended  September  30, 1999
compared  to  $665,000  in the same nine  months  of 1998.  The gains on sale of
securities  available for sale in the nine months ended  September 30, 1999 were
gains recognized on securities sold to shorten the securities portfolio maturity
and increase yields by purchasing new higher yielding investments.  Gains on the
sales and calls of  available  for sale  securities  for the nine  months  ended
September 30, 1998 were from the sale of equity  securities owned by the Company
and the sale and call of securities owned by the Bank. The Company's investments
were  sold to help  fund  the  purchase  of a block  of  238,700  shares  of the
Company's  common  stock on June 2,  1998.  Income  from  insurance  commissions
increased  $39,000 for the first nine  months of 1999  compared to the same nine
months of 1998 because of the  insurance  subsidary  of the Bank.  Miscellaneous
income decreased $181,000 or 24.8% primarily from less gains recognized on sales
of real estate for the nine months ended September 30, 1999 compared to the same
nine months in 1998. Gains on sales of real estate totaled $197,000 for the nine
months ended September 30, 1998 and $96,000 for the same period in 1999.

NONINTEREST  EXPENSES.  Total noninterest expense decreased $1.1 million or 8.6%
for the nine months ended September 30, 1999 as compared to the same nine months
in 1998. This decrease is primarily the result of reduced expenses caused by the
sale of three  Wal*Mart  branches on December  31,  1998.  Salaries and employee
benefits were $485,000 less (9.4%) for the nine months ended September 30, 1999
compared  to the same nine months of 1998.  ESOP and MRP  expense  was  $668,000
higher for the first nine  months of 1999  compared  to the same period in 1998.
This was caused by the accelerated vesting of the MRP shares on June 30, 1999 as
discussed  in Note 5 of the  Financial  Statements  above.  The  increase in MRP
expense in 1999 was  partially  offset by a decrease in ESOP expense of $475,000
for the nine months ended September 30, 1999 compared to the same nine months of
1998.  This  decrease in ESOP  expense was the result of a lower  average  stock
price  for the  Company's  stock  for the first  nine  months  of 1999  ($20.02)
compared to the same nine months of 1998 ($22.23), and fewer ESOP shares vesting
in the first nine months of 1999 (29,403 shares)  compared to the number of ESOP
shares  vested in the same nine months of 1998  (36,894  shares).  Occupany and
equipment  expense  decreased  $612,000  or  37.2%  because  of the  sale of the
Wal*Mart  branches on December 31, 1998.  Deposit insurance  premiums  decreased
slightly  ($13,000) because of the lower deposit balances caused by the Wal*Mart
branch sales.  Other operating expense decreased  $615,000 or 18.4% for the nine
months ended September 30, 1999 compared to the same nine months in 1998 because
of the  Wal*Mart  branch  sales and reduced  cost of carrying  other real estate
which was sold in the first nine months of 1999.

INCOME  TAXES.  Income tax expense for the nine months ended  September 30, 1999
was  $493,000 or 24.4% of income  before tax and $1.0 million or 31.9% of income
before tax for the same nine month period in 1998. The difference  between these
rates and the  statutory  rate is the  result of  interest  income on tax exempt
securities  and  the  dividend  received   deduction  on  some  preferred  stock
dividends.  Because the income from these permanent differences between book and
tax  income  is such a high  percentage  of the  total  income  (because  of the
recognition  of the MRP  expense in June of 1999) the tax as a percent of pretax
income is low compared to statutory  rates. The fact that the Bank has state tax
credit carry  forwards (as discussed in the results of operations  for the three
months ended September 30, 1999) also  contributes to a lower income tax rate as
a percent of pretax income.

LIQUIDITY AND CAPITAL RESOURCES.  The Company's  liquidity,  represented by cash
and cash  equivalents,  is a product of its  operating,  investing and financing
activities.  The Company's primary sources of funds are deposits,  amortization,
prepayments  and  maturities  of  outstanding  loans,  maturities  of investment
securities,  mortgage-backed  securities and other  short-term  investments  and
funds provided from operations.  While scheduled loan  amortization and maturing
investment securities, mortgage-backed securities and short-term investments are
relatively  predictable sources of funds, deposit flows and loan prepayments are
greatly   influenced  by  general  interest  rates,   economic   conditions  and
competition.  The  Company  manages  the  pricing of its  deposits to maintain a
steady  deposit  balance.  In  addition,  the Company  invests  excess  funds in
overnight  deposits and other short-term  interest-earning  assets which provide
liquidity to meet lending  requirements.  The Company has generally been able to
generate enough cash through the retail deposit market, its traditional  funding
source,  to offset the cash utilized in investing  activities.  As an additional
source of funds, the Bank may borrow from the FHLB of Atlanta.  At September 30,
1999, the Bank had  outstanding  advances from the FHLB of Atlanta in the amount
of $57.6  million.  Such advances were used in the Bank's normal  operations and
investing activities.

As of  September  30,  1999 the Bank's  regulatory  capital was in excess of all
applicable  regulatory  requirements.  At September  30, 1999,  the Bank's total
risk-based  capital,  tier 1  risk-based  capital  and  tier 1  leverage  ratios
amounted  to  10.11%,  9.09% and 7.41%,  respectively,  compared  to  regulatory
requirements of 8.0%, 4.0% and 4.0%, respectively.

YEAR 2000 ISSUES. The Company continues to review the many areas affected by the
Year 2000 computer issue. The Year 2000 Plan (Plan) tasks, approved by the Board
of Directors,  which addresses  whether our computer,  communications  and other
operating   systems  will  operate   accurately  after  December  31,  1999  are
substantially complete. The Plan addressed internal and external interfaces with
third party computer  systems that  communicate with our system as well as other
risks  associated  with the date  change.  A  committee,  chaired by a member of
senior management, has monitored compliance with the Plan.

The Federal Financial  Institutions  Examination Council (FFIEC) established key
milestones for completion of Year 2000 testing and implementation. The Company's
status toward meeting those milestones are as follows:

     06/30/98  Institutions  should  complete the development of written testing
     strategies and plans. 100% COMPLETE

     09/01/98 Testing of internal  mission-critical systems should have started.
     100% COMPLETE

     12/31/98   Testing  of   internal   mission-critical   systems   should  be
     substantially  complete.  Service  providers  should  be ready to test with
     customers. 100% COMPLETE (Service providers have completed proxy testing of
     mission critical systems)

     03/31/99 Testing with service  providers should be substantially  complete.
     Testing with other third parties  should be underway. 100% COMPLETE

     06/30/99 Testing and implementation of all mission-critical  systems should
     be complete. 100% COMPLETE

The  original  budget  for  expenses  associated  with  Year 2000  upgrades  and
implementation has remained feasible. All mission critical hardware and software
necessary  to bring the  Company  into Y2K  compliance  has been  purchased  and
tested.  All of this  equipment has been installed.

Management continues the review of all of the Bank's significant commercial loan
relationships  to determine  how much Y2K risk may exist in the Bank's  customer
base. To the extent that such risk is identified,  management  will request such
customers  to develop  their own  compliance  strategy  and will  require  those
customers to keep us informed of their progress.  Management's current plans are
to help the Bank's customers understand the risks involved,  to share the Bank's
strategies  and  to  encourage  those  customers  to  satisfy  their  compliance
requirements  on time lines  that are  consistent  with  those of the Bank.  The
Bank's loan agreements and credit review processes have been modified to address
this risk.  The Bank's  contingency  plans for  customers who fail to adequately
address  this  risk may  include  but  will not be  limited  to  requiring  such
customers to pay off their loans.  The risk  evaluation of these larger  credits
has been reported to the Board of Directors and the Asset Review Committee.

As part of its normal  business  practices,  the Company  maintains  contingency
plans in the event of emergency  situations,  some of which could arise from Y2K
related  problems.  The Company has formulated a detailed Y2K  contingency  plan
which assesses several  possible  scenarios to which the Company may be required
to react.  However,  the Company  believes  that it is not possible to know with
complete certainty all Y2K problems that could affect the Company.

The  most  reasonable  likely  worst  case  Y2K  scenario  would be one in which
electrical service or phone service is disrupted for an extended period of time.
As noted above,  the Company's  computer  hardware and software,  its commercial
customer  risk  and  its  third  party   vendors/supplier   risk  evaluation  is
progressing as planned.  However, the Company cannot accurately predict how many
failures related to the Y2K problem will occur with its suppliers,  customers or
other third parties or the severity,  duration or financial consequences of such
failures.  As a result,  it is possible the Company  could suffer the  following
consequences:

     o    A number of  operational  inconveniences  and  inefficiencies  for the
          Company,  its service  providers or its customers  that may divert the
          Company's  time and attention and financial and human  resources  from
          its ordinary business activities.

     o    System  malfunctions  that  may  require  significant  efforts  by the
          Company,  its  service  providers  or  its  customers  to  prevent  or
          alleviate material business disruptions.

Even if the  Company  does  not  incur  significant  costs  in  connection  with
responding to Y2K issues, there can be no assurance that the failure or delay of
the Company's  customers,  vendors or other third  parties in  addressing  these
issues or the costs  involved in such process  will not have a material  adverse
effect on the Company's business, financial condition and results of operations.

The foregoing are forward-looking  statements  reflecting  management's  current
assessments  and estimates with respect to the Company's Y2K compliance  efforts
and the impact of Y2K issues on the Company's  business and operations.  Various
factors  could cause  actual plans and results to differ  materially  from those
contemplated by such assessments, estimates and forward-looking statements, many
of which are beyond the control of the Company.  Some of these factors  include,
but are not limited to,  representations by the Company's vendors and customers,
technological advances,  economic  considerations and consumer perceptions.  The
Y2K compliance program is an ongoing process involving continual  evaluation and
may be subject to change in response to new developments.

The Company has also been subject to regulatory  review of its overall Year 2000
Plan and will continue to be monitored by its regulators for its progress.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There was no material  change for the three and nine months ended  September 30,
1999 in the  information  about  the  Company's  "Quantitative  and  Qualitative
Disclosures About Market Risk" as disclosed in the Form 10-K for the fiscal year
ended December 31, 1998.



PART II.  OTHER INFORMATION

      ITEM 1.  LEGAL PROCEEDINGS

            None.

      ITEM 2.  CHANGES IN SECURITIES

            None.

      ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

            None.

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

            None.


      ITEM 5.  OTHER INFORMATION

            None.

      ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

          (a) The following exhibit is filed herewith:

               Exhibit 27 Financial Data Schedule

          (b) No  reports  on Form 8-K  were  filed  during  the  quarter  ended
              September 30, 1999.


<PAGE>

                                   SIGNATURES

          Pursuant to the  requirements of the Securities  Exchange Act of 1934,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                        COMMUNITY FIRST BANKING COMPANY


Date:       November 12, 1999      /s/ Gary D. Dorminey
                                  ----------------------
                                    Gary D. Dorminey
                                       President
                              (Principal Executive Officer)



Date:       November 12, 1999     /s/ C. Lynn Gable
                                 -------------------
                                    C. Lynn Gable
                                Chief Financial Officer
                             (Principal Financial Officer)