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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 June 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 August 7, 2000,  there
were  3,282,054   shares  issued  and  2,751,715   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 June 30, 2000  (unaudited)  and December
          31, 1999

     Consolidated Statements of Earnings for the Three and Six Months Ended June
          30, 2000 and 1999 (unaudited)

     Consolidated  Statements  of  Comprehensive  Income  for the  Three and Six
          Months Ended June 30, 2000 and 1999 (unaudited)

     Consolidated  Statements  of Cash Flows for the Six  Months  Ended June 30.
          2000 and 1999 (unaudited)

     Notes to Consolidated Financial Statements

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

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

                   COMMUNITY FIRST BANKING COMPANY
                     Consolidated Balance Sheets
                      (In thousands of dollars)                      June 30,  December 31,
                                                                       2000        1999
                               Assets                              (Unaudited)
                                                                   ----------  ----------
Cash and due from banks ..........................................      8,663       9,252
Interest-bearing deposits in financial institutions ..............        421         925
Federal funds sold ...............................................        250         220
                                                                   ----------  ----------
   Cash and cash equivalents .....................................      9,334      10,397

Securities available for sale ....................................     61,960      64,665
Securities held to maturity ......................................        177         184
Other investments ................................................      3,112       3,173
Mortgage loans held for sale .....................................         58          59
Loans, net .......................................................    310,222     290,804
Premises and equipment net .......................................      7,222       7,516
Accrued interest receivable ......................................      2,940       3,005
Other real estate and repossessions ..............................        448         528
Other assets .....................................................      5,831       5,717
                                                                   ----------  ----------
   Total assets ..................................................    401,304     386,048
                                                                   ==========  ==========
                Liabilities and Stockholders' Equity
Deposits:
  Demand .........................................................     14,397      13,029
  Interest-bearing demand ........................................     51,408      55,424
  Savings ........................................................     28,868      29,552
  Time ...........................................................    142,869     144,347
  Time, over $100,000 ............................................     65,817      53,035
                                                                   ----------  ----------
     Total deposits ..............................................    303,359     295,387

Note payable and other borrowings ................................     59,832      55,345
Federal funds purchased ..........................................      7,091       5,684
Accrued interest payable and other liabilities ...................      3,078       2,433
                                                                   ----------  ----------
     Total liabilities ...........................................    373,360     358,849
                                                                   ----------  ----------
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 ......................................     14,663      14,663
 Retained earnings ...............................................     27,456      25,842
 Treasury stock at cost ..........................................    (10,483)     (9,826)
 Accumulated other comprehensive loss, net of tax ................     (3,726)     (3,514)
                                                                   ----------  ----------
     Total stockholders' equity ..................................     27,944      27,199
                                                                   ----------  ----------
  Total liabilities and stockholders' equity .....................    401,304     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       Six Months Ended
                                                                            June 30,               June 30,
                                                                      2000        1999         2000        1999
                                                                      ------------------      ------------------
Interest income:
 Interest and fees on loans ......................................     7,434      6,322        14,291     12,574
 Interest-bearing deposits and federal funds sold ................        25        131            57        310
 Interest and dividends on investment securities:
   U.S. Treasury .................................................      --           44          --           89
   U.S. Govt. agency and mortgage-backed .........................     1,015        918         2,058      1,855
   State, county and municipals ..................................         2         29             3         58
   Other .........................................................        84         68           165        157
                                                                      ------     ------        ------     ------
     Total interest income .......................................     8,560      7,512        16,574     15,043
                                                                      ------     ------        ------     ------
Interest Expense:
 Interest on deposits:
   Demand ........................................................       294        281           592        553
   Savings .......................................................       148        163           298        328
   Time ..........................................................     2,839      2,611         5,504      5,209
                                                                      ------     ------        ------     ------
                                                                       3,281      3,055         6,394      6,090
Interest on note payable and other borrowings ....................     1,123        711         2,040      1,668
                                                                      ------     ------        ------     ------
          Total interest expense .................................     4,404      3,766         8,434      7,758
                                                                      ------     ------        ------     ------
           Net interest income ...................................     4,156      3,746         8,140      7,285
Provision for loan losses ........................................       239        192           473        364
                                                                      ------     ------        ------     ------
          Net interest income after provision for loan losses ....     3,917      3,554         7,667      6,921
                                                                      ------     ------        ------     ------
Noninterest income:
   Service charges on deposits ...................................       537        564         1,043      1,145
   Gain (loss) on calls and sales of securities available for sale       (22)        46           (29)        46
   Insurance commissions .........................................       163        166           375        361
   Miscellaneous .................................................       266        141           552        385
                                                                      ------     ------        ------     ------
          Total noninterest income ...............................       944        917         1,941      1,937
                                                                      ------     ------        ------     ------
Noninterest expenses:
   Salaries and employee benefits ................................     1,688      1,574         3,370      3,127
   ESOP and MRP expense ..........................................      --        1,973          --        2,343
   Occupancy and equipment .......................................       311        340           636        714
   Deposit insurance premiums ....................................        15         39            31         84
   Other operating ...............................................       875        879         1,780      1,864
                                                                      ------     ------        ------     ------
         Total noninterest expense ...............................     2,889      4,805         5,817      8,132
                                                                      ------     ------        ------     ------
         Earnings (loss) before income taxes .....................     1,972       (334)        3,791        726
Income tax expense (benefit) .....................................       642       (201)        1,227         96
                                                                      ------     ------        ------     ------
               Net earnings (loss) ...............................     1,330       (133)        2,564        630
                                                                      ======     ======        ======     ======
Basic earnings (loss) per share ..................................      0.48      (0.05)         0.93       0.24
Diluted earnings (loss) per share ................................      0.45      (0.05)         0.87       0.23
See Notes to Consolidated Financial Statements

                              COMMUNITY FIRST BANKING COMPANY
                      Consolidated Statements of Comprehensive Income
                           (Unaudited - in thousands of dollars)
                                                                               Three Months Ended       Six Months Ended
                                                                                June 30,  June 30,     June 30,  June 30,
                                                                                   2000      1999         2000      1999
                                                                                -----------------      -----------------
Net earnings .................................................................    1,330      (133)       2,564       630
                                                                                  -----     -----        -----     -----
Other  comprehensive  income,  net of  income  taxes:
 Unrealized  gains (losses) on securities available for sale .................      805    (1,569)        (313)   (1,974)
  Income tax on gains (losses) ...............................................      306      (596)        (119)     (750)
                                                                                  -----     -----        -----     -----
    Unrealized gains (losses) arising during the period, net of tax ..........      499      (973)        (194)   (1,224)
                                                                                  -----     -----        -----     -----
  Less: Reclassification adjustment for gains (losses) included in net earnings     (22)       46          (29)       46
   Income tax on reclassification on adjustments .............................       (8)       17          (11)       17
                                                                                  -----     -----        -----     -----
    Reclassification adjustment for gains (losses) in net earnings, net of tax      (14)       29          (18)       29
                                                                                  -----     -----        -----     -----
     Other comprehensive income (loss) .......................................      485      (944)        (212)   (1,195)
                                                                                  -----     -----        -----     -----
COMPREHENSIVE INCOME (LOSS) ..................................................    1,815    (1,077)       2,352      (565)
                                                                                  =====     =====        =====     =====
See Notes to Consolidated Financial Statements.

                                  COMMUNITY FIRST BANKING COMPANY
                               Consolidated Statements of Cash Flows
                                                                                        Six Months Ended
                                                                                             June 30,
                                                                                         2000        1999
                                                                                         ----        ----
Cash flows from operating activities:                                                      In thousands
Net earnings .......................................................................     2,564        630
 Adjustments to reconcile net earnings to net cash provided by operating activities:
  Depreciation, amortization and accretion .........................................       413        538
  Provision for loan losses ........................................................       473        364
  Deferred income tax expense (benefit) ............................................      --          644
  Loss on calls and sales of securities available for sale .........................        29        (46)
  Loss (gain) on sale of other real estate .........................................       (50)       (58)
  Loss (gain) on sales of premises and equipment, net ..............................      --          (14)
  ESOP and MRP compensation expense ................................................      --        2,339
  Change in:
    Mortgage loans held for sale ...................................................         1       (323)
    Accrued interest receivable ....................................................        65        (51)
    Other assets ...................................................................      (114)    (1,506)
    Accrued interest payable .......................................................       121         (7)
    Other liabilities ..............................................................       524       (687)
                                                                                        ------     ------
       Net cash provided by operating activities ...................................     4,026      1,823
                                                                                        ------     ------
Cash flows from investing activities:
  Proceeds from sales and calls of securities available for sale ...................        70      8,284
  Proceeds from maturities of securities held to maturity ..........................         7         29
  Proceeds from maturities of securities available for sale ........................     2,375      4,685
  Purchases of other investments ...................................................      --       (1,075)
  Proceeds from sales of other investments .........................................        61      1,210
  Purchases of securities available for sale .......................................      --       (4,998)
  Net change in loans ..............................................................   (19,911)    (6,932)
  Proceeds from sale of real estate and repossessions ..............................       130      4,682
  Proceeds from sales of premises and equipment ....................................      --           15
  Purchases of premises and equipment ..............................................       (80)      (120)
                                                                                        ------     ------
       Net cash provided by (used in) investing activities .........................   (17,348)     5,780
                                                                                        ------     ------
Cash flows from financing activities:
  Net change in demand and savings deposits ........................................    (3,332)     6,820
  Net change in time deposits ......................................................    11,304      4,103
  Payment of note payable and other borrowings .....................................    (5,738)    (4,674)
  Proceeds of note payable and other borrowings ....................................    10,225     24,000
  Federal funds purchased ..........................................................     1,407       --
  Change in payable for branch sales ...............................................      --      (27,461)
  Treasury stock purchased .........................................................      (657)      (348)
  Cash dividend paid ...............................................................      (950)      (547)
                                                                                        ------     ------
      Net cash provided by financing activities ....................................    12,259      1,893
                                                                                        ------     ------
      Net change in cash and cash equivalents ......................................    (1,063)     9,496
Cash and cash equivalents at beginning of year .....................................    10,397     32,736
                                                                                        ------     ------
Cash and cash equivalents at quarter end ...........................................     9,334     42,232
                                                                                        ======     ======

                                                                                         Six months ended
                                                                                              June 30,
Supplemental disclosure of cash flow information:                                         2000       1999
                                                                                          ----       ----
                                                                                            In thousands
     Interest                                                                            8,313      7,766
     Income taxes                                                                        1,077        400
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 six months ended
June 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.
NOTE 3.  EARNINGS PER COMMON SHAREEarnings  per common share  calculations  for the three and six
month  periods  ended  June 30,  2000 and  1999 are  presented  based on the net
earnings for the three and six months divided by the weighted  average number of
shares  outstanding,  or 2,751,715  and  2,755,920  shares (three and six months
ended June 30, 2000) and 2,579,758  and  2,579,013  shares (three and six months
ended June 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 2,944,799 and 2,802,126 shares for the three months
ended June 30, 2000 and 1999  respectively,  and 2,949,004 and 2,788,380 for the
six months ended June 30, 2000 and 1999 respectively. 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. ITEM  2.  MANAGEMENT'S  DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS.COMPARISON OF FINANCIAL CONDITION AT JUNE 30, 2000 AND DECEMBER
31, 1999.On June 30, 2000 the Company had total assets of $401.3 million
compared to $386.0  million at December  31,  1999.  This  increase in assets of
$15.3  million  or 4.0% is  primarily  due to a  increase  in net loans of $19.4
million or 6.7%.  This increase in loans was partially  offset by a $2.7 million
or 4.2%  decrease in available for sale  securities  (resulting  primarily  from
maturities), and a decrease in cash and cash equivalents
of $1.1 million or 10.2%. Total  deposit liabilities  increased $8.0 million or 2.7% from
December 31, 1999 to June 30, 2000. Time deposits over $100,000  increased $12.8
million or 24.1%  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 decreased $1.5 million or 1.0%.
Interest-bearing  demand  deposits  decreased  $4.0 million or 7.3%, and demand
deposits increased $1.4 million or 10.5%. Savings deposits decreased $684,000 or
2.3% for the six months ended June 30, 2000. Note payable and other borrowings increased $4.5 million or 8.1%
during  the six  months  ended  June  30,  2000.  This  increase  resulted  from
additional  borrowings  of $9.0  million by the Bank from the Federal  Home Loan
Bank (FHLB).  Repayments to the FHLB by the Bank totaled $2.7 million  resulting
in a net  increase  in  borrowings  from the FHLB of $6.3  million.  The Company
repayed  $3.0  million  of notes  payable to another  financial  institution  in
February  2000,  and in March the Company  borrowed  $1.2  million from the same
financial institution.Retained  earnings increased $1.6 million during the six months
ended June 30,  2000.  This  increase  represents  earnings of $2.6 million less
dividends  declared of $950,000.  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.  Accumulated  other  comprehensive  losses increased  $212,000
during the six months ended June 30, 2000 as a result of a rising  interest rate
environment. COMPARISON  OF RESULTS OF OPERATIONS FOR THE THREE
MONTHS ENDED JUNE 30, 2000 AND 1999GENERAL.  Net earnings totaled $1.3 million for the three months
ended June 30, 2000, an increase of $1.5 million over the $133,000 loss reported
in the three months ended June 30, 1999.  This increase was primarily the result
of all the expenses  associated with the ESOP and MRP being  recognized prior to
December 31, 1999. 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 by the same amount in the three months
ended June 30, 1999. NET  INTEREST INCOME.  Net interest income for the three months
ended June 30, 2000 increased $410,000 or 10.9% compared to the same three-month
period in 1999.  Total interest  income  increased $1.0 million or 14.0%,  while
total interest  expense  increased  $638,000 or 16.9%.  The increase in interest
income was caused  primarily by higher  average loan  balances  during the three
months ended June 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
second quarters of 2000 and 1999 were as follows: 
                                    Average Balances
                                   Three Months Ended
                                       June 30,
                                    2000       1999
                                    (In thousands)
Mortgage loans                     81,787     90,155
Consumer loans                     56,187     57,051
Construction loans                 36,284     22,016
Commercial loans                  137,798    100,754
                                  -------    -------
                                  312,056    269,976
                                  =======    =======
Interest and fee income on loans increased $1.1 million or 17.6%
in the first  quarter of 2000  compared to the same  quarter in 1999,  while the
average balance of loans  increased  $42.1 million or 15.6%.  Interest income on
federal funds sold and interest-bearing deposits decreased $106,000 or 80.9% for
the three months ended June 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  increased  $42,000  or 4.0%  during the three
months ended June 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 June 30,
2000 and 1999 was 4.40% and 4.01% 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
June 30, 2000 and June 30, 1999. (dollars in thousands) 
                                    Three months ended June 30, 2000   Three months ended June 30, 1999   Volume     Rate     Total
                                     Average    Interest   Effective    Average   Interest    Effective Variance Variance  Variance
                                     Balance     Yield       Rate       Balance     Yield        Rate
Loans Net                             308,308     7,434      9.64%       266,952     6,322    9.47%         979       133     1,112
Interest-Bearing Deposits and FF Sold   1,780        25      5.62%        10,318       131    5.08%        (108)        2      (106)
Securities                             62,097     1,101      7.09%        71,082     1,059    5.96%        (134)      176        42
------------------------------------------------------------------------------------------------------------------------------------
                                      372,185     8,560      9.20%       348,352     7,512    8.63%         737       311     1,048
------------------------------------------------------------------------------------------------------------------------------------
Demand Deposits                        67,227       294      1.75%        52,117       281    2.16%          81       (68)       13
Savings                                28,920       148      2.05%        32,045       163    2.03%         (16)        1       (15)
Certificates of Deposit               204,998     2,839      5.54%       192,469     2,611    5.43%         170        58       228
Borrowings                             66,006     1,123      6.81%        49,542       711    5.74%         236       176       412
------------------------------------------------------------------------------------------------------------------------------------
                                      367,151     4,404      4.80%       326,173     3,766    4.62%         472       166       638
------------------------------------------------------------------------------------------------------------------------------------
Net interest income and spread                    4,156      4.40%                   3,746    4.01%
Change                                                                                                      265       145       410
PROVISION  FOR LOAN LOSSES.  The  provision for loan losses was
$239,000 for the three  months ended June 30, 2000  compared to $192,000 for the
three months ended June 30,  1999.  At June 30, 2000,  the loan loss reserve was
$3.6  million or 1.2% of total loans  compared to $3.1  million or 1.1% of total
loans at June 30, 1999. Management deemed the allowance for loan losses adequate
at June 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  $943,000 or 0.2% of total
assets at June 30,  2000,  and $2.1  million or 0.5% of total assets at June 30,
1999. OTHER  INCOME.  Total noninterest income increased $27,000,  or
2.9%,  for the three  months ended June 30, 2000 versus the same three months in
1999.  Service  charges  on  deposits  decreased  $27,000  or 4.8% in the second
quarter  of 2000  verses  the same  period  in 1999.  The  Company  sold  equity
securities   during  the  second   quarter  of  2000  for  a  loss  of  $22,000.
Miscellaneous  income increased $125,000 or 88.7% primarily because of increased
fee income from the brokerage subsidiary of the Bank. NONINTEREST  EXPENSES. Total noninterest expenses decreased $1.9
million or 39.9% for the three  months  ended June 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.  During  the  second  quarter of 1999 ESOP and MRP  expense  totaled  $2.0
million which included a $1.4 million charge to vest the remaining  unearned MRP
shares.  Salaries and employee benefits  increased $114,000 for the three months
ended June 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
$29,000.  Deposit  insurance  premiums  decreased  $24,000  and other  operating
expense  decreased  $4,000 for the three months ended June 30, 2000  compared to
the same three months of 1999. INCOME TAXES. Income tax expense for the quarter ended June 30,
2000 was $642,000 or 32.6% of pretax income. In the same three months ended June
30,  1999 a tax benefit of  $201,000  or 60.2% of pretax  income was  recognized
because of the additional MRP expense recognized in the  2nd  quarter
of 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 SIX
MONTHS ENDED JUNE 30, 2000 AND 1999GENERAL.  Net earnings  totaled $2.6 million for the six months
ended June 30, 2000,  compared to $630,000 for the same six 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.  These
and other significant fluctuations are discussed below. NET  INTEREST  INCOME.  Total  interest  income  increased $1.5
million or 10.2%, and total interest expense increased  $676,000 or 8.7% for the
six months  ended June 30,  2000  compared  to the same six months in 1999.  The
following  is a rate volume  analysis for the six months ended June 30, 2000 and
1999 showing the average  balances,  yields and  variances  caused by volume and
yields. 
                                     Six Months ended June 30, 2000    Six Months ended June 30, 1999   Volume      Rate      Total
                                       Average   Interest Effective   Average   Interest Effective    Variance  Variance   Variance
                                       Balance    Yield      Rate     Balance     Yield     Rate
Loans Net                              301,146   14,291      9.49%    269,321    12,574    9.34%         1,486       231      1,717
Interest Bearing Deposits and FF Sold    2,012       57      5.67%     12,266       310    5.05%          (259)        6       (253)
Securities                              62,932    2,226      7.07%     72,840     2,159    5.93%          (294)      361         67
-----------------------------------------------------------------------------------------------------------------------------------
                                       366,090   16,574      9.05%    354,427    15,043    8.49%           495     1,036      1,531
-----------------------------------------------------------------------------------------------------------------------------------
Demand Deposits                         67,357      592      1.76%     51,562       553    2.14%           169      (130)        39
Savings                                 29,109      298      2.05%     32,081       328    2.04%           (30)       --        (30)
Certificates of Deposit                201,285    5,504      5.47%    191,030     5,209    5.45%           280        15        295
Borrowings                              63,353    2,040      6.44%     59,687     1,668    5.59%           102       270        372
-----------------------------------------------------------------------------------------------------------------------------------
                                       361,104    8,434      4.67%    334,360     7,758    4.64%           621        55        676
-----------------------------------------------------------------------------------------------------------------------------------
Net interest income and spread                    8,140      4.38%                7,285    3.85%
Change                                                                                                    (126)      981        855
PROVISION  FOR LOAN LOSSES.  The  provision for loan losses was
$473,000 for the six months ended June 30, 2000 compared to $364,000 for the six
months  ended June 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 $4,000, or
0.2%, for the six months ended June 30, 2000 versus the same six months in 1999.
Service charges on deposits  decreased $102,000 or 8.9%. The Company sold equity
securities  during the six months  ended  June 30,  2000 for a loss of  $29,000.
Offsetting  the  above  decreases  in  income  are  increased  income  from  the
Bank’s insurance and brokerage subsidaries. Insurance commissions increased
$14,000 or 3.9% and miscellaneous  income increased $167,000 or 43.4% because of
fee income generated by CFB Securities. NONINTEREST  EXPENSES. Total noninterest expense decreased $2.3
million or 28.5% for the six months  ended June 30, 2000 as compared to the same
six 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  $2.3  million  for  the  six  months  ended  June  30,  1999.
INCOME  TAXES. Income tax expense for the six months ended June
30, 2000 was $1.2 million or 32.4% of income  before tax and $96,000 or 13.2% of
income before tax for the same six 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 $4.2  million  for the six months  ended June 30,  2000.  Investing
activities  used  $17.5  million in cash  during  the same six months  primarily
because of the $20.0 million increase in loans.  Financing  activities  provided
$12.3  million of cash during the six months ended June 30,  2000.  Decreases in
demand and  savings  deposits  used $3.3  million,  increases  in time  deposits
provided  $11.3  million,   primarily  from  the  brokered  deposits   discussed
previously under Comparison of Financial Condition at June 30, 2000 and December
31, 1999.  Net proceeds from note payable,  other  borrowings  and federal funds
purchased provided $5.9 million.
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
accomodations from other lending institutions. As of June 30, 2000 the Bank’s  regulatory  capital was in
excess  of all  applicable  regulatory  requirements.  At  June  30,  2000,  the
Bank’s  total  risk-based  capital,  tier 1  risk-based  capital and tier 1
leverage  ratios  amounted to 10.4%,  9.3% and 7.4%,  respectively,  compared to
regulatory requirements of 8.0%, 4.0% and 4.0%, respectively. SUBSEQUENT  EVENTS.  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 will be offered  the  opportunity  to  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.  The plan is conditioned upon the Company's receipt in the exchange of
all of the outstanding shares of Preferred Stock. If any holder wishes to retain
any  shares of his or her  Preferred  Stock,  none of the  shares  tendered  for
exchange will be accepted.
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

               (a) Annual meeting of shareholders was held on April 27, 2000.

               (b)  Matters  voted upon at the Annual  Meeting on April 27, 2000
               included  the  following  items  and the  number  of  votes  cast
               included:

                                                 Votes         Votes
                Election of Class I Directors     For         Withheld
                -----------------------------    -----        --------
                 Anna L. Berry                 2,204,444        9,311
                 Gary D. Dorminey              2,204,444        9,311
                 W. Lamar Moody                2,203,144       10,611
                 Y. Aubrey Silvey              2,204,444        9,311

               Directors not up for re-election and continuing in office:

                 Gary M. Bullock
                 Jerry L. Clayton
                 Dean B. Talley
                 T. E. Reeve, Jr.
                 Michael P. Steed
                 Thomas S. Upchurch

                                             Votes      Votes
                Ratification of Auditor       For      Against   Abstentions
                -----------------------      -----     -------   -----------
                Porter Keadle Moore, LLP    2,204,552   7,408       1,795

               There were no broker non-votes,  as no discretionary  issues were
               presented for approval.

      ITEM 5.  OTHER INFORMATION

               Pursuant  to Rule  14a-4(c)(1)  promulated  under the  Securities
               Exchange  Act of  1934,  as  amended,  shareholders  desiring  to
               present a proposal for consideration at the Company's 2001 Annual
               Meeting of Shareholders must notify the Company in writing at its
               principal office,  110 Dixie Street,  Carrollton,  Georgia 30117,
               Attn:  Corporate  Secretary,  of the contents of such proposal no
               later than  February  9, 2001.  Failure to timely  submit  such a
               proposal  will  enable the proxies  appointed  by  management  to
               exercise their  discretionary  voting authority when the proposal
               is raised at the  Annual  Meeting  of  Shareholders  without  any
               discussion of the matter in the proxy statement.

      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 six months ended
               June 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:       August 10, 2000     /s/ Gary D. Dorminey
                                                 ----------------------
                                    Gary D. Dorminey
                                       President
                              (Principal Executive Officer)

                  Date:       August 10, 2000    /s/ C. Lynn Gable
                                                -------------------
                                  C. Lynn Gable
                              Chief Financial Officer
                          (Principal Financial Officer)
```