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                    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, 2000

[ ]  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 8, 2000, there
were  3,282,054   shares  issued  and  2,944,789   shares   outstanding  of  the
Registrant's Common Stock, par value $.01 per share.

CONTENTS

PART I.  FINANCIAL INFORMATION
         ---------------------
Item 1. Financial Statements                                              Page
     Consolidated  Balance  Sheets as of  September  30,                   3
     2000  (unaudited)  and December 31, 1999

     Consolidated  Statements  of Earnings  for the Three and              4
     Nine Months Ended September 30, 2000 and 1999 (unaudited)

     Consolidated  Statements  of  Comprehensive  Income  for              5
     the Three and Nine Months Ended September 30, 2000
     and 1999 (unaudited)

     Consolidated  Statements of Cash Flows for the Nine Months            6
     Ended  September 30, 2000 and 1999 (unaudited)

     Notes to Consolidated Financial Statements                            7

Item 2.  Management's Discussion and Analysis of Financial                 9
     Condition and Results of Operations

PART II. OTHER INFORMATION

Item 1. Legal Proceedings                                                 16

Item 2. Changes in Securities and Use of Proceeds                         16

Item 3. Defaults Upon Senior Securities                                   16

Item 4. Submission of Matters to a Vote of Security Holders               16

Item 5. Other Information                                                 16

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

SIGNATURES                                                                17

                   COMMUNITY FIRST BANKING COMPANY
                     Consolidated Balance Sheets
                      (In thousands of dollars)                  September 30,  December 31,
                                                                       2000        1999
                               Assets                              (Unaudited)
                                                                   ----------  ----------
Cash and due from banks ..........................................      8,285       9,252
Interest-bearing deposits in financial institutions ..............        620         925
Federal funds sold ...............................................      1,770         220
                                                                   ----------  ----------
   Cash and cash equivalents .....................................     10,675      10,397

Securities available for sale ....................................     60,624      64,665
Securities held to maturity ......................................        171         184
Other investments ................................................      3,112       3,173
Mortgage loans held for sale .....................................         85          59
Loans, net .......................................................    309,219     290,804
Premises and equipment net .......................................      7,577       7,516
Accrued interest receivable ......................................      3,392       3,005
Other real estate and repossessions ..............................        473         528
Other assets .....................................................      4,882       5,717
                                                                   ----------  ----------
   Total assets ..................................................    400,210     386,048
                                                                   ==========  ==========
                Liabilities and Stockholders' Equity
Deposits:
  Demand .........................................................     17,322      13,029
  Interest-bearing demand ........................................     51,957      55,424
  Savings ........................................................     27,099      29,552
  Time ...........................................................    144,690     144,347
  Time, over $100,000 ............................................     68,786      53,035
                                                                   ----------  ----------
     Total deposits ..............................................    309,854     295,387

Note payable and other borrowings ................................     54,542      55,345
Federal funds purchased ..........................................      1,718       5,684
Accrued interest payable and other liabilities ...................      4,028       2,433
                                                                   ----------  ----------
     Total liabilities ...........................................    370,142     358,849
                                                                   ----------  ----------
Stockholders' Equity:
 Convertible preferred stock, par value $.01, 96,542 shares issued          -           1
 Common stock, $.01 par, 10,000,000 authorized, 3,282,054 issued .         33          33
 Additional paid in capital ......................................     10,846      14,663
 Retained earnings ...............................................     28,262      25,842
 Treasury stock at cost ..........................................     (6,666)     (9,826)
 Accumulated other comprehensive loss, net of tax ................     (2,407)     (3,514)
                                                                   ----------  ----------
     Total stockholders' equity ..................................     30,068      27,199
                                                                   ----------  ----------
  Total liabilities and stockholders' equity .....................    400,210     386,048
                                                                   ==========  ==========
See Notes to Consolidated Financial Statements

                   COMMUNITY FIRST BANKING COMPANY
                 Consolidated Statement of Earnings
                             (Unaudited)
          (In thousands of dollars - except per share data)
                                                                      Three Months Ended      Nine Months Ended
                                                                         September 30,           September 30,
                                                                      2000        1999         2000        1999
                                                                      ------------------      ------------------
Interest income:
 Interest and fees on loans ......................................     7,550      6,387        21,841     18,960
 Interest-bearing deposits and federal funds sold ................        28         93            85        404
 Interest and dividends on investment securities:
   U.S. Treasury .................................................      --           --          --           89
   U.S. Govt. agency and mortgage-backed .........................       993      1,035         3,051      2,890
   State, county and municipals ..................................         1          1             4         60
   Other .........................................................        89         70           254        228
                                                                      ------     ------        ------     ------
     Total interest income .......................................     8,661      7,586        25,235     22,631
                                                                      ------     ------        ------     ------
Interest Expense:
 Interest on deposits:
   Demand ........................................................       290        302           882        855
   Savings .......................................................       145        163           443        491
   Time ..........................................................     3,130      2,578         8,634      7,788
                                                                      ------     ------        ------     ------
                                                                       3,565      3,043         9,959      9,134
Interest on note payable and other borrowings ....................     1,043        747         3,083      2,415
                                                                      ------     ------        ------     ------
          Total interest expense .................................     4,608      3,790        13,042     11,549
                                                                      ------     ------        ------     ------
           Net interest income ...................................     4,053      3,796        12,193     11,082
Provision for loan losses ........................................       241        237           714        602
                                                                      ------     ------        ------     ------
          Net interest income after provision for loan losses ....     3,812      3,559        11,479     10,480
                                                                      ------     ------        ------     ------
Noninterest income:
   Service charges on deposits ...................................       589        556         1,632      1,702
   Gain (loss) on calls and sales of securities available for sale       123        --             94         46
   Insurance commissions .........................................       153        176           528        537
   Miscellaneous .................................................       228        166           780        550
                                                                      ------     ------        ------     ------
          Total noninterest income ...............................     1,093        898         3,034      2,835
                                                                      ------     ------        ------     ------
Noninterest expenses:
   Salaries and employee benefits ................................     1,652      1,566         5,022      4,693
   ESOP and MRP expense ..........................................      --          379          --        2,721
   Occupancy and equipment .......................................       311        321           947      1,035
   Deposit insurance premiums ....................................        38         40            69        124
   Other operating ...............................................       850        861         2,630      2,725
                                                                      ------     ------        ------     ------
         Total noninterest expense ...............................     2,851      3,167         8,668     11,298
                                                                      ------     ------        ------     ------
         Earnings before income taxes ............................     2,054      1,290         5,845      2,017
Income tax expense ...............................................       660        397         1,887        493
                                                                      ------     ------        ------     ------
               Net earnings (loss) ...............................     1,394        893         3,958      1,524
                                                                      ======     ======        ======     ======
Basic earnings per share .........................................      0.49       0.34          1.42       0.59
Diluted earnings per share .......................................      0.49       0.32          1.42       0.55
See Notes to Consolidated Financial Statements

                              COMMUNITY FIRST BANKING COMPANY
                      Consolidated Statements of Comprehensive Income
                           (Unaudited - in thousands of dollars)
                                                                               Three Months Ended       Nine Months Ended
                                                                                   September 30,          September 30,
                                                                                   2000      1999         2000      1999
                                                                                -----------------      -----------------
Net earnings .................................................................    1,394       893        3,958     1,524
                                                                                  -----     -----        -----     -----
Other  comprehensive  income,  net of  income  taxes:
 Unrealized  gains (losses) on securities available for sale .................    2,002    (1,046)       1,692    (3,020)
  Income tax on gains (losses) ...............................................     (761)     (397)        (643)   (1,147)
                                                                                  -----     -----        -----     -----
    Unrealized gains (losses) arising during the period, net of tax ..........    1,241      (649)       1,049    (1,873)
                                                                                  -----     -----        -----     -----
  Less: Reclassification adjustment for gains included in net earnings .......      123       --            94        46
   Income tax on reclassification on adjustments .............................       46       --            36        17
                                                                                  -----     -----        -----     -----
    Reclassification adjustment for gains (losses) in net earnings, net of tax       77       --            58        29
                                                                                  -----     -----        -----     -----
     Other comprehensive income (loss) .......................................    1,318      (649)       1,107    (1,844)
                                                                                  -----     -----        -----     -----
COMPREHENSIVE INCOME (LOSS) ..................................................    2,712       244        5,065      (320)
                                                                                  =====     =====        =====     =====
See Notes to Consolidated Financial Statements.

                                  COMMUNITY FIRST BANKING COMPANY
                               Consolidated Statements of Cash Flows
                               (Unaudited - in thousands of dollars)                    Nine Months Ended
                                                                                          September 30,
                                                                                         2000        1999
                                                                                         ----        ----
Cash flows from operating activities:
Net earnings .......................................................................     3,958       1,524
 Adjustments to reconcile net earnings to net cash provided by operating activities:
  Depreciation, amortization and accretion .........................................       531         726
  Provision for loan losses ........................................................       714         602
  Deferred income tax expense ......................................................        11       1,130
  Loss on calls and sales of securities available for sale .........................       (94)        (46)
  Gain on sale of other real estate ................................................       (50)        (87)
  Gain on sales of premises and equipment, net .....................................       (45)        (14)
  ESOP and MRP compensation expense ................................................      --         2,721
  Change in:
    Mortgage loans held for sale ...................................................       (26)        140
    Accrued interest receivable ....................................................      (387)       (275)
    Other assets ...................................................................       (64)     (1,386)
    Accrued interest payable .......................................................       900         101
    Other liabilities ..............................................................       738          31
                                                                                        ------      ------
       Net cash provided by operating activities ...................................     6,186       5,167
                                                                                        ------      ------
Cash flows from investing activities:
  Proceeds from sales and calls of securities available for sale ...................     2,480       8,284
  Proceeds from maturities of securities held to maturity ..........................        13          41
  Proceeds from maturities of securities available for sale ........................     3,375       6,055
  Purchases of other investments ...................................................      --        (1,920)
  Proceeds from sales of other investments .........................................        61       1,210
  Purchases of securities available for sale .......................................      --       (13,052)
  Net change in loans ..............................................................   (18,976)    (19,291)
  Proceeds from sale of real estate and repossessions ..............................      --         4,984
  Proceeds from sales of premises and equipment ....................................       219          90
  Purchases of premises and equipment ..............................................      (583)       (121)
                                                                                        ------      ------
       Net cash provided by (used in) investing activities .........................   (13,411)    (13,720)
                                                                                        ------      ------
Cash flows from financing activities:
  Net change in demand and savings deposits ........................................    (1,627)      4,798
  Net change in time deposits ......................................................    16,094       3,739
  Payment of note payable and other borrowings .....................................    (9,803)    (30,553)
  Proceeds of note payable and other borrowings ....................................     9,000      41,000
  Federal funds purchased ..........................................................    (3,966)        --
  Change in payable for branch sales ...............................................      --       (27,461)
  Payment of subordinated debentures ...............................................      --          (900)
  Treasury stock purchased .........................................................      (657)       (348)
  Cash dividend paid ...............................................................    (1,538)       (828)
                                                                                        ------      ------
      Net cash provided by financing activities ....................................     7,503     (10,553)
                                                                                        ------      ------
      Net change in cash and cash equivalents ......................................       278     (19,106)
Cash and cash equivalents at beginning of year .....................................    10,397      32,736
                                                                                        ------      ------
Cash and cash equivalents at quarter end ...........................................    10,675      13,630
                                                                                        ======      ======

                                                                                         Nine Months Ended
                                                                                           September 30,
Supplemental disclosure of cash flow information:                                         2000       1999
                                                                                          ----       ----
  Cash paid for:                                                                           In thousands
     Interest                                                                           10,649     11,448
     Income taxes                                                                        2,198        400

  Non-cash transactions:
     Issuance of treasury stock in connection with preferred stock conversion            3,817
See Notes to Consolidated Financial Statements.
COMMUNITY FIRST BANKING COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)NOTE 1.  NATURE OF BUSINESSGENERALCommunity 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 PRESENTATIONThe  accompanying  unaudited  consolidated  financial statements
(except for the  consolidated  balance  sheet of  December  31,  1999,  which is
audited)  have been  prepared  in  accordance  with  instructions  to Form 10 Q.
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 2000 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, 2000 are not  necessarily  indicative of the results of operations
that may be expected for the year ending  December 31,  2000.  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, 1999./www.sec.gov/Archives/edgar/data/1035903/0001035903-00-000006.txt>CFBC
1999 10K TXTNOTE 3.  EARNINGS PER COMMON SHAREEarnings  per common share  calculations for the three and nine
month periods ended  September 30, 2000 and 1999 are presented  based on the net
earnings for the three and nine months divided by the weighted average number of
shares  outstanding,  or 2,829,364 and  2,781,285  shares (three and nine months
ended  September 30, 2000) and  2,599,860  and 2,586,442  shares (three and nine
months ended September 30, 1999).  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
convertible preferred stock during the period, or 2,829,364 and 2,792,944 shares
for the  three  months  ended  September  30,  2000 and 1999  respectively,  and
2,781,285 and  2,784,643  for the nine months ended  September 30, 2000 and 1999
respectively.On July 20, 2000, the Company's  Board of Directors  approved a
recapitalization plan pursuant to which the holders of the Company's outstanding
shares of Preferred  Stock issued under its  Management  Recognition  Plan (MRP)
would exchange each of their shares of Preferred  Stock for two shares of Common
Stock,  with cash being paid for any fractional  shares of Common Stock to which
the holder would  otherwise be entitled.  All of the holders of Preferred  Stock
issued under the MRP approved the recapitalization  plan, and on August 24, 2000
the Board of  Directors  of the Company  voted to convert  the 96,542  shares of
Convertible  Preferred Stock originally issued as part of the Company's MRP into
two shares of Common Stock in accordance with the existing  conversion  formula.
The conversion of the preferred  shares was  accomplished  by issuing a total of
193,074  shares of treasury  stock with and average cost of $19.77 per share and
payment of cash for 10 fractional shares.NOTE 4. DIVIDENDS DECLAREDOn March 16, 2000 the Board of Directors of the Company approved
a cash dividend of $.1725 per share payable  April 1, 2000 for  stockholders  of
record on March 17, 2000. On June 15, 2000 the Board of Directors of the Company
approved  a cash  dividend  of  $.1725  per  share  payable  July  1,  2000  for
stockholders  of record on June 16,  2000.  On  September  21, 2000 the Board of
Directors  of the Company  approved a cash  dividend  of $.20 per share  payable
October 1, 2000 for stockholders  of record on September 22, 2000. ITEM  2.  MANAGEMENT'S  DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS.COMPARISON OF FINANCIAL CONDITION AT SEPTEMBER 30,
2000 AND DECEMBER 31, 1999.On  September  30, 2000 the Company had total  assets of $400.2
million compared to $386.0 million at December 31, 1999. This increase in assets
of $14.2  million or 3.7% is  primarily  due to a increase in net loans of $18.4
million or 6.3%.  This increase in loans was partially  offset by a $4.0 million
decrease or -6.3% in available for sale  securities.  This $4.0 million decrease
in available for sale securities resulted from maturities of $3.4 million, sales
by the Company of equity securities of $2.5 million and a decrease in unrealized
loss on available for sale securities of $1.9 million.  On July 1, 2000 the Bank
purchased a local insurance agency  including all accounts of insurance,  client
lists,  book of business,  goodwill,  equipment and furniture and fixtures.  The
insurance  subsidiary  of the Bank  recorded  a  $250,000  intangible  from this
purchase which will be written off straight line over a ten-year period.
Total deposit liabilities  increased $14.5 million or 4.9% from
December 31, 1999 to September 30, 2000.  Time deposits over $100,000  increased
$15.8 million or 29.7%  primarily from two brokered  certificates  of deposit of
$6.0  million  each  received  by the  Bank  in  June  2000,  and  one  brokered
certificate  of  deposit  of $8.7  million  accepted  in March  2000.  These new
brokered  deposits were  partially  offset by a $9.0 million  maturing  brokered
deposit in June 2000.Time  deposits less than $100,000  increased  $343,000 or 0.2%.
Interest-bearing  demand  deposits  decreased $3.5 million or -6.3%,  and demand
deposits  increased  $4.3  million or 33.0%.  Savings  deposits  decreased  $2.5
million or -8.3% for the nine months ended September 30, 2000. Note  payable and other borrowings  decreased $803,000 or -1.5%
during the nine months ended  September 30, 2000.  This  decrease  resulted from
additional net borrowings of $2.2 million by the Bank from the Federal Home Loan
Bank (FHLB) and  repayment  by the Company of $3.0  million of notes  payable to
another  financial  institution.  Federal funds  purchased by the bank decreased
$4.0 million in the nine months ended September 30, 2000.Accrued  interest payable and other liabilities  increased $1.6
million in the nine months ended September 30, 2000. Accrued interest payable on
certificates of deposit  increased  $824,000,  escrow  increased  $369,000,  and
liabilities    relating   to   employee    bonuses   and   benefits    increased
$390,000.Retained earnings increased $2.4 million during the nine months
ended September 30, 2000. This increase represents earnings of $4.0 million less
dividends  declared of $1.5 million.  Treasury stock increased $657,000 from the
purchase of 37,733  shares of the  Company’s  stock at an average  price of
$17.42 per share.  On August 24, 2000 193,074  shares of treasury  stock with an
average  cost of  $19.77  per  share  were  issued to  convert  the  convertible
preferred  stock to common stock as discussed  under the heading  “Note  3.
Earnings per Common Share”  above.  Accumulated other comprehensive  losses
decreased   $1.1   million   during  the  nine  months   ended   September   30,
2000.COMPARISON  OF RESULTS OF OPERATIONS FOR THE THREE
MONTHS ENDED SEPTEMBER 30, 2000 AND 1999GENERAL.  Net earnings totaled $1.4 million for the three months
ended September 30, 2000, an increase of $501,000 over the $893,000  reported in
the three months ended  September  30, 1999.  This  increase was  primarily  the
result of three items;  (1) an increase in net  interest  income of $257,000 for
the three months ended  September  30, 2000 compared to the same three months in
1999,  (2) net gains on the sales of  securities of $123,000 in the three months
ended  September 30, 2000 and (3) all the expenses  associated with the ESOP and
MRP being recognized prior to December 31, 1999.NET  INTEREST INCOME.  Net interest income for the three months
ended  September  30,  2000  increased  $257,000  or 6.8%  compared  to the same
three-month  period in 1999.  Total  interest  income  increased $1.1 million or
14.2%, while total interest expense increased $818,000 or 21.6%. The increase in
interest income was caused  primarily by higher average loan balances during the
three months ended September 30, 2000 compared to the same three months in 1999.
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 2000 and 1999 were as follows: 
                                    Average Balances
                                   Three Months Ended
                                      September 30,
                                    2000       1999
                                    (In thousands)
Mortgage loans                    79,490       87,705
Consumer loans                    55,229       57,877
Construction loans                34,578       24,666
Commercial loans                 142,973      110,206
                                 -------      -------
                                 312,270      280,454
                                 =======      =======
Interest and fee income on loans increased $1.2 million or 18.2%
in the third  quarter of 2000  compared to the same  quarter in 1999,  while the
average balance of loans  increased  $31.8 million or 11.3%.  Interest income on
federal funds sold and interest-bearing deposits decreased $65,000 or -69.9% for
the three months ended  September  30, 2000 compared to the same three months of
1999. This decrease in income on federal funds and deposits resulted from use of
funds not needed for  liquidity  being used to fund loan  demand.  Interest  and
dividend income on investment  securities  decreased  $23,000 or 2.1% during the
three months ended September 30, 2000 compared to the same three months of 1999.
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, 2000 and 1999 was 4.19% and 4.19% 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, 2000 and September 30, 1999. (dollars in thousands) 
                                     Three  months  ended             Three  months  ended
                                      September 30, 2000               September 30, 1999
                                   Average   Interest Effective   Average  Interest  Effective  Volume    Rate     Total
                                   Balance     Yield    Rate      Balance    Yield      Rate   Variance Variance Variance
                                   -------     -----    ----      -------    -----      ----   --------------------------
Loans Net                          308,415    7,550     9.79%     277,226    6,387      9.22%      719     444     1,163
Interest-Bearing Deposits - FF Sold  1,838       28     6.09%       6,537       93      5.69%      (67)      2       (65)
Securities                          65,056    1,083     6.66%      69,706    1,106      6.35%      (74)     51       (23)
-------------------------------------------------------------------------------------------------------------------------
                                   375,309    8,661     9.23%     353,469    7,586      8.58%      578     497     1,075
-------------------------------------------------------------------------------------------------------------------------
Demand Deposits                     65,579      290     1.77%      70,830      302      1.71%      (22)     10       (12)
Savings                             27,967      145     2.07%      31,563      163      2.07%      (19)      1       (18)
Certificates of Deposit            211,194    3,130     5.93%     191,174    2,578      5.39%      270     282       552
Borrowings                          61,194    1,043     6.82%      51,857      747      5.76%      134     162       296
-------------------------------------------------------------------------------------------------------------------------
                                   365,934    4,608     5.04%     345,424    3,790      4.39%      363     455       818
-------------------------------------------------------------------------------------------------------------------------
Net interest income and spread                4,053     4.19%                3,796      4.19%
Change                                                                                             215      42       257
PROVISION  FOR LOAN LOSSES.  The  provision for loan losses was
$241,000 for the three months ended  September 30, 2000 compared to $237,000 for
the three months ended  September 30, 1999. At September 30, 2000, the loan loss
reserve was $3.8 million or 1.2% of total loans compared to $3.1 million or 1.1%
of total loans at September 30, 1999.  Management  deemed the allowance for loan
losses adequate at September 30, 2000. NONPERFORMING  ASSETS AND PAST DUE LOANS. Nonperforming assets,
comprised of non-accrual  loans (generally loans on which payments are more than
90 days past due) and other real estate  owned  totaled  $2.5 million or 0.6% of
total assets at September 30, 2000,  and $1.3 million or 0.3% of total assets at
September  30, 1999.  This  increase is primarily  the result of one loan with a
principal  balance of $924,000  being placed on  non-accrual  in August of 2000.
This  loan is  secured  by 45  single  family  residential  rental  properties.
OTHER INCOME.  Total noninterest income increased $195,000,  or
21.7%,  for the three  months  ended  September  30,  2000 versus the same three
months in 1999.  Service  charges on deposits  increased  $33,000 or 5.9% in the
third  quarter of 2000 verses the same period in 1999.  The Company  sold equity
securities  from its  available for sale  portfolio  during the third quarter of
2000 for a gain of $123,000.  Insurance  commissions  decreased  $23,000 for the
three months ended September 30, 2000 compared to the same three months of 1999.
Miscellaneous  income increased $62,000 in the third quarter of 2000 compared to
the same  quarter in 1999  primarily  because of  increased  fee income from the
brokerage subsidiary of the Bank. NONINTEREST  EXPENSES.  Total  noninterest  expenses  decreased
$316,000 or 10.0% for the three months ended  September  30, 2000 as compared to
the same three months in 1999. This decrease was primarily the result of all the
expenses  associated with the ESOP and MRP being  recognized prior to January 1,
2000. In the three months ended  September 30, 1999 ESOP and MRP expense totaled
$379,000.  Salaries and employee benefits increased $86,000 for the three months
ended September 30, 2000 compared to the same three months of 1999 because of an
annual wage increase and additional  health  insurance  accruals to cover higher
costs  experienced in recent months.  Occupancy and equipment  expense decreased
$10,000. Deposit insurance premiums decreased $2,000 and other operating expense
decreased  $11,000 for the three months ended September 30, 2000 compared to the
same three months of 1999. INCOME TAXES. Income tax expense for the quarter ended September
30, 2000 was $660,000 or 32.1% of pretax income compared to $397,000 or 30.8% of
pretax income for the same three months in 1999.  The  difference  between these
rates and the statutory  rate is primarily the result of interest  income on tax
exempt  securities  and the dividend  received  deduction on  government  agency
preferred stocks. COMPARISON  OF RESULTS OF OPERATIONS  FOR THE NINE
MONTHS ENDED SEPTEMBER 30, 2000 AND 1999GENERAL.  Net earnings totaled $4.0 million for the nine months
ended  September 30, 2000,  compared to $1.5 million for the same nine months of
1999.  This  increase  is  primarily  the result of the  recognition  of all the
remaining  unamortized  MRP and ESOP expense  prior to the beginning of the year
2000, and an increase in net interest income for the nine months ended September
30, 2000 compared to the same nine months of 1999.  These and other  significant
fluctuations are discussed below.NET  INTEREST  INCOME.  Total  interest  income  increased $2.6
million or 11.5%, and total interest expense increased $1.5 million or 12.9% for
the nine months  ended  September  30, 2000  compared to the same nine months in
1999.  The  following  is a rate  volume  analysis  for the  nine  months  ended
September 30, 2000 and 1999 showing the average  balances,  yields and variances
caused by volume and yields. 
                                        Nine  Months  ended           Nine  Months  ended
                                        September 30, 2000             September 30, 1999
                                     Average   Interest Effective   Average  Interest Effective  Volume    Rate     Total
                                     Balance    Yield     Rate      Balance    Yield     Rate   Variance Variance Variance
                                     -------    -----     ----      -------    -----     ----   --------------------------
Loans Net                            303,569   21,841     9.59%     271,758   18,960    9.30%     2,219      662     2,881
Interest Bearing Deposits and FF Sold  1,775       85     6.38%      10,356      404    5.20%      (335)      16      (319)
Securities                            65,601    3,309     6.73%      69,015    3,267    6.31%      (162)     204        42
--------------------------------------------------------------------------------------------------------------------------
                                     370,945   25,235     9.07%     351,129   22,631    8.59%     1,722      882     2,604
--------------------------------------------------------------------------------------------------------------------------
Demand Deposits                       66,764      882     1.76%      68,263      855    1.67%       (19)      46        27
Savings                               28,728      443     2.06%      31,908      491    2.05%       (49)       1       (48)
Certificates of Deposit              204,589    8,634     5.63%     191,079    7,788    5.43%       551      295       846
Borrowings                            62,634    3,083     6.56%      57,077    2,415    5.64%       235      433       668
--------------------------------------------------------------------------------------------------------------------------
                                     362,715   13,042     4.79%     348,327   11,549    4.42%       718      775     1,493
--------------------------------------------------------------------------------------------------------------------------
Net interest income and spread                 12,193     4.28%               11,082    4.17%
Change                                                                                            1,004      107     1,111
PROVISION  FOR LOAN LOSSES.  The  provision for loan losses was
$714,000 for the nine months ended  September  30, 2000 compared to $602,000 for
the nine  months  ended  September  30,  1999.  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 and increase in
loan volume of the consumer finance subsidiary of the Bank. OTHER INCOME.  Total noninterest income increased $199,000,  or
7.0%,  for the nine months ended  September 30, 2000 versus the same nine months
in 1999.  Service charges on deposits  decreased  $70,000 or -4.1%.  The Company
sold equity  securities  from its available for sale  portfolio  during the nine
months ended September 30, 2000 for a net gain of $94,000.  During the same nine
months  of 1999  gains on sales  of  securities  totaled  $46,000.  Income  from
insurance  commissions  decreased  $9,000  or -1.7%  for the nine  months  ended
September  30,  2000  compared  to the same nine  months in 1999.  Miscellaneous
income  increased  $230,000  or 41.8%  because  of fee income  generated  by CFB
Securities, the Bank ́s brokerage subsidary.
NONINTEREST  EXPENSES. Total noninterest expense decreased $2.6
million or -23.3% for the nine months ended  September  30, 2000 as compared to
the same nine months in 1999 primarily because all the expenses  associated with
the MRP and ESOP were  completed  in the fiscal year ended  December  31,  1999.
These  expenses  totaled $2.7 million for the nine months  ended  September  30,
1999.
INCOME  TAXES.  Income tax expense  for the nine  months  ended
September  30, 2000 was $1.9 million or 32.3% of income  before tax and $493,000
or 24.4% of income  before  tax for the same  nine  month  period  in 1999.  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 and the relation of these tax  preferred  items as a
percentage of earnings before income taxes. The fact that the Bank has state tax
credit carry  forwards 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.  Operating  activities  provided net cash
proceeds of $6.2 million for the nine months ended September 30, 2000. Investing
activities  used $13.4  million in cash  during the same nine  months  primarily
because of a $19.0 million increase in loans. Financing activities provided $7.5
million of cash during the nine months ended  September  30, 2000.  Decreases in
demand and  savings  deposits  used $1.6  million,  increases  in time  deposits
provided  $16.1  million,   primarily  from  the  brokered  deposits   discussed
previously  under  Comparison  of Financial  Condition at September 30, 2000 and
December 31, 1999. Notes payable and other  borrowings  decreased using $803,000
of cash.  Federal funds  purchased by the Bank  decreased  using $4.0 million of
cash.
The  asset  portion of the  balance  sheet  provides  liquidity
primarily through loan principal repayments, maturities of investment securities
and, to a lesser  extent,  sales of  securities.  Installment  loan payments are
becoming an increasingly  important  source of liquidity for the Company as this
portfolio continues to grow. Other short-term  investments such as federal funds
sold and  maturing  interest-bearing  deposits  with other banks are  additional
sources of liquidity funding. The  liability portion of the balance sheet provides  liquidity
through various customers’ interest-bearing and noninterest-bearing deposit
accounts.  These sources of liquidity  are  short-term in nature and are used as
necessary to fund asset growth and meet short-term liquidity needs. Liquidity is
also   provided  by  advances  from  the  FHLB  of  Atlanta  and  federal  funds
accommodations  from  other  lending  institutions.  During  the  quarter  ended
September 30, 2000 the Bank pledged specific  commercial  mortgage loans and its
home  equity  loans to the FHLB of  Atlanta  to  provide  additional  sources of
funding.  At September 30, 2000 lendable  collateral values at the Bank exceeded
outstanding  advances  from the FHLB by $14.1  million.  In August 2000 the Bank
pledged certain  securities to a full service  securities firm for a $25 million
line of credit for general liquidity needs. The Bank had no outstanding  amounts
on this line of credit during the quarter ended September 30, 2000. As of September 30, 2000 the Bank’s  regulatory capital was
in excess of all applicable regulatory requirements.  At September 30, 2000, the
Bank’s  total  risk-based  capital,  tier 1  risk-based  capital and tier 1
leverage ratios  amounted to 10.8%,  9.6% and 7.7%,  respectively,  compared to
regulatory requirements of 8.0%, 4.0% and 4.0%, respectively. 
PART II.  OTHER INFORMATION

      ITEM 1.  LEGAL PROCEEDINGS

               None.

      ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS

               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, 2000.

                                   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  9, 2000   /s/ Gary D. Dorminey

                                                 ----------------------
                                    Gary D. Dorminey
                                       President
                              (Principal Executive Officer)

                  Date:       November  9, 2000  /s/ C. Lynn Gable

                                                -------------------
                                  C. Lynn Gable
                              Chief Financial Officer
                          (Principal Financial Officer)
```