SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

               QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

For Quarterly Period Ended June 30, 2003           Commission File No. 000-29640


                         COMMUNITY FIRST BANCORPORATION
 -------------------------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)


         South Carolina                                  58-2322486
--------------------------------------       -----------------------------------
(State or other jurisdiction of               (IRS Employer Identification No.)
 incorporation or organization)


                            3685 Blue Ridge Boulevard
                         WALHALLA, SOUTH CAROLINA 29691
--------------------------------------------------------------------------------
                    (Address of principal executive offices)


                                 (864) 638-2105
--------------------------------------------------------------------------------
                           (Issuer's telephone number)

         Check whether the issuer (1) filed all reports  required to be filed by
Section 13 or 15(d) of the  Exchange  Act during the past 12 months (or for such
shorter period that the  registrant was required to file such reports),  and has
been subject to such filing requirements for the past 90 days.

         Yes   [X]   No [  ]
                 -

         State the number of shares  outstanding of each of the issuer's classes
of common equity,  as of the latest  practicable  date:  Common Stock, no par or
stated value, 2,249,249 Shares Outstanding on July 31, 2003.

Transitional Small Business Disclosure Format (Check one):  Yes  [  ]  No [X]



                                       1
<PAGE>


                         COMMUNITY FIRST BANCORPORATION

                                   FORM 10-QSB

                                      Index

                                                                            Page
PART I -   FINANCIAL INFORMATION

Item 1.    Financial Statements

           Consolidated Balance Sheet .....................................    3
           Consolidated Statement of Income ...............................    4
           Consolidated Statement of Changes in Shareholders' Equity ......    5
           Consolidated Statement of Cash Flows ...........................    6
           Notes to Unaudited Consolidated Financial Statements ...........  7-8

Item 2.    Management's Discussion and Analysis ........................... 9-12

Item 3.    Controls and Procedures ........................................   12

PART II -  OTHER INFORMATION

Item 4.    Submission of Matters to a Vote of Security Holders ............   13

Item 6.    Exhibits and Reports on Form 8-K ...............................   13

SIGNATURE .................................................................   14




                                       2
<PAGE>


                         PART I - FINANCIAL INFORMATION

Item 1. - Financial Statements

COMMUNITY FIRST BANCORPORATION
Consolidated Balance Sheet
<TABLE>
<CAPTION>
                                                                                                   (Unaudited)
                                                                                                     June 30,           December 31,
                                                                                                       2003                 2002
                                                                                                       ----                 ----
                                                                                                         (Dollars in thousands)
Assets
<S>                                                                                                  <C>                  <C>
     Cash and due from banks .............................................................           $   4,304            $   5,114
     Interest bearing deposits due from banks ............................................                  15                   32
     Federal funds sold ..................................................................              49,144               21,471
     Securities available-for-sale .......................................................              68,382               62,968
     Other investments ...................................................................                 750                  555
     Loans held for sale .................................................................                   -                  211
     Loans ...............................................................................             142,304              137,358
         Allowance for loan losses .......................................................              (2,260)              (1,950)
                                                                                                     ---------            ---------
            Loans - net ..................................................................             140,044              135,408
     Premises and equipment - net ........................................................               4,605                4,148
     Accrued interest receivable .........................................................               1,386                1,351
     Other assets ........................................................................               2,152                1,597
                                                                                                     ---------            ---------

            Total assets .................................................................           $ 270,782            $ 232,855
                                                                                                     =========            =========

Liabilities
     Deposits
         Noninterest bearing .............................................................           $  28,531            $  24,416
         Interest bearing ................................................................             218,746              187,223
                                                                                                     ---------            ---------
            Total deposits ...............................................................             247,277              211,639
     Accrued interest payable ............................................................               1,434                1,069
     Other liabilities ...................................................................                 410                   62
                                                                                                     ---------            ---------
            Total liabilities ............................................................             249,121              212,770
                                                                                                     ---------            ---------

Shareholders' equity
     Common stock - no par value; 10,000,000 shares authorized; issued
         and outstanding - 2,249,249 for 2003 and 2,242,417 for 2002 .....................              17,597               17,569
     Retained earnings ...................................................................               3,601                2,137
     Accumulated other comprehensive income ..............................................                 463                  379
                                                                                                     ---------            ---------
            Total shareholders' equity ...................................................              21,661               20,085
                                                                                                     ---------            ---------

            Total liabilities and shareholders' equity ...................................           $ 270,782            $ 232,855
                                                                                                     =========            =========
</TABLE>






See accompanying notes to unaudited consolidated financial statements.



                                       3
<PAGE>

COMMUNITY FIRST BANCORPORATION
Consolidated Statement of Income
<TABLE>
<CAPTION>
                                                                                                 (Unaudited)
                                                                                             Period Ended June 30,
                                                                                             ---------------------
                                                                                 Three Months                     Six Months
                                                                                 ------------                     ----------
                                                                              2003            2002           2003             2002
                                                                             -----           -----          -----             ----
                                                                                  (Dollars in thousands, except per share)

Interest income
<S>                                                                         <C>             <C>             <C>             <C>
     Loans, including fees ........................................         $ 2,489         $ 2,348         $ 4,924         $ 4,597
     Securities
       Taxable ....................................................             477             693           1,065           1,418
       Tax-exempt .................................................               3               3               5               5
     Other investments ............................................               6               7              13               7
     Federal funds sold ...........................................             130              99             245             239
                                                                            -------         -------         -------         -------
         Total interest income ....................................           3,105           3,150           6,252           6,266
                                                                            -------         -------         -------         -------

Interest expense
     Time deposits $100M and over .................................             403             376             814             748
     Other deposits ...............................................             877             758           1,687           1,626
                                                                            -------         -------         -------         -------
         Total interest expense ...................................           1,280           1,134           2,501           2,374
                                                                            -------         -------         -------         -------

Net interest income ...............................................           1,825           2,016           3,751           3,892
Provision for loan losses .........................................             150             350             400             660
                                                                            -------         -------         -------         -------
Net interest income after provision ...............................           1,675           1,666           3,351           3,232
                                                                            -------         -------         -------         -------

Other income
     Service charges on deposit accounts ..........................             377             197             716             400
     Credit life insurance commissions ............................              11              13              21              23
     Loss on sale of available-for-sale security ..................               -               -               -              (2)
     Gain on sale of loans held for sale ..........................              61               -             126               -
     Other income .................................................              58              55             109             100
                                                                            -------         -------         -------         -------
         Total other income .......................................             507             265             972             521
                                                                            -------         -------         -------         -------

Other expenses
     Salaries and employee benefits ...............................             534             466           1,095             932
     Net occupancy expense ........................................              48              44              97              96
     Furniture and equipment expense ..............................              72              62             138             132
     Other expense ................................................             381             273             718             530
                                                                            -------         -------         -------         -------
         Total other expenses .....................................           1,035             845           2,048           1,690
                                                                            -------         -------         -------         -------

Income before income taxes ........................................           1,147           1,086           2,275           2,063
Income tax expense ................................................             410             398             811             736
                                                                            -------         -------         -------         -------
Net income ........................................................         $   737         $   688         $ 1,464         $ 1,327
                                                                            =======         =======         =======         =======

Per share*
     Net income ...................................................         $  0.33         $  0.31         $  0.65         $  0.60
     Net income, assuming dilution ................................            0.31            0.30            0.62            0.57
                                                                                                                            -------
</TABLE>
* Per share  information has been  retroactively  adjusted to reflect a 5% stock
dividend effective November 28, 2002.



See accompanying notes to unaudited consolidated financial statements.



                                       4
<PAGE>

COMMUNITY FIRST BANCORPORATION
Consolidated Statement of Changes in Shareholders' Equity

<TABLE>
<CAPTION>
                                                                       (Unaudited)


                                                                      Common Stock
                                                                      ------------                          Accumulated
                                                                  Number of                    Retained  Other Comprehensive
                                                                   Shares         Amount       Earnings        Income         Total
                                                                   ------         ------       --------  -------------------  -----
                                                                                        (Dollars in thousands)

<S>                                                                <C>           <C>           <C>           <C>           <C>
Balance, January 1, 2002 .....................................     2,117,085     $  15,734     $   1,120     $     162     $  17,016
                                                                                                                           ---------

Comprehensive income:
    Net income ...............................................             -             -         1,327             -         1,327
                                                                                                                           ---------
    Change in unrealized holding gains and losses
      on available-for-sale securities arising
      during the period, net of income taxes of $121 .........             -             -             -           216           216
    Reclassification adjustment for losses (gains)
      realized in income, net of income taxes of $1 ..........             -             -             -             1             1
                                                                                                                           ---------
         Total other comprehensive income ....................             -             -             -             -           217
                                                                                                                           ---------
            Total comprehensive income .......................             -             -             -             -         1,544
                                                                                                                           ---------
Exercise of employee stock options ...........................         4,936            19             -             -            19
                                                                   ---------     ---------     ---------     ---------     ---------
Balance, June 30, 2002 .......................................     2,122,021     $  15,753     $   2,447     $     379     $  18,579
                                                                   =========     =========     =========     =========     =========



Balance, January 1, 2003 .....................................     2,242,417     $  17,569     $   2,137     $     379     $  20,085
                                                                                                                           ---------

Comprehensive income:
    Net income ...............................................             -             -         1,464             -         1,464
                                                                                                                           ---------
    Change in unrealized holding gains and losses
      on available-for-sale securities arising
      during the period, net of income taxes of $48 ..........             -             -             -            84            84
                                                                                                                           ---------
         Total other comprehensive income ....................             -             -             -             -            84
                                                                                                                           ---------
            Total comprehensive income .......................             -             -             -             -         1,548
                                                                                                                           ---------
Exercise of employee stock options ...........................         6,832            28             -             -            28
                                                                   ---------     ---------     ---------     ---------     ---------
Balance, June 30, 2003 .......................................     2,249,249     $  17,597     $   3,601     $     463     $  21,661
                                                                   =========     =========     =========     =========     =========
</TABLE>


























See accompanying notes to unaudited consolidated financial statements.



                                       5
<PAGE>

COMMUNITY FIRST BANCORPORATION
Consolidated Statement of Cash Flows

<TABLE>
<CAPTION>
                                                                                                               (Unaudited)
                                                                                                             Six Months Ended
                                                                                                                 June 30,
                                                                                                                 --------
                                                                                                            2003             2002
                                                                                                           -----             ----
                                                                                                            (Dollars in thousands)
Operating activities
<S>                                                                                                      <C>               <C>
     Net income ................................................................................         $  1,464          $  1,327
     Adjustments to reconcile net income to net
         cash provided by operating activities
            Provision for loan losses ..........................................................              400               660
            Depreciation .......................................................................              111               122
            Amortization of net loan (fees) and costs ..........................................              (22)                6
            Securities accretion and premium amortization ......................................              489                14
            Loss on sale of available-for-sale security ........................................                -                 2
            Gain on sale of loans held for sale ................................................             (126)                -
            (Increase) decrease in interest receivable .........................................              (35)              122
            Increase (decrease) in interest payable ............................................              365              (345)
            Decrease (increase) in prepaid expenses and other assets ...........................               93              (158)
            Increase (decrease) in other accrued expenses ......................................              348               (16)
            Originations of loans held for sale ................................................           (3,605)                -
            Proceeds of sale of loans held for sale ............................................            3,942                 -
                                                                                                         --------          --------
                Net cash provided by operating activities ......................................            3,424             1,734
                                                                                                         --------          --------

Investing activities
     Purchases of available-for-sale securities ................................................          (42,948)          (17,962)
     Maturities and calls of available-for-sale securities .....................................           37,177            30,124
     Proceeds of sale of available-for-sale security ...........................................                -             2,998
     Purchases of other investments ............................................................             (195)              (75)
     Net increase in loans made to customers ...................................................           (5,710)          (12,146)
     Purchases of premises and equipment .......................................................             (568)             (185)
                                                                                                         --------          --------
                Net cash (used) provided by investing activities ...............................          (12,244)            2,754
                                                                                                         --------          --------

Financing activities
     Net increase in demand deposits, interest
         bearing transaction accounts and savings accounts .....................................           14,933             2,334
     Net increase in certificates of deposit and other
         time deposits .........................................................................           20,705               246
     Exercise of employee stock options ........................................................               28                19
                                                                                                         --------          --------
                Net cash provided by financing activities ......................................           35,666             2,599
                                                                                                         --------          --------
Increase in cash and cash equivalents ..........................................................           26,846             7,087
Cash and cash equivalents, beginning ...........................................................           26,617            15,330
                                                                                                         --------          --------
Cash and cash equivalents, ending ..............................................................         $ 53,463          $ 22,417
                                                                                                         ========          ========

Supplemental Disclosure of Cash Flow Information
     Cash paid during the year for:
         Interest ..............................................................................         $  2,137          $  2,719
         Income taxes ..........................................................................              357               863
     Noncash investing and financing activities:
         Transfer of loans to other real estate owned ..........................................              696                25
</TABLE>

See accompanying notes to unaudited consolidated financial statements.



                                       6
<PAGE>


COMMUNITY FIRST BANCORPORATION
Notes to Unaudited Consolidated Financial Statements

Accounting  Policies - A summary of significant  accounting policies is included
in the  Company's  Annual  Report for the year ended  December  31, 2002 on Form
10-KSB filed with the Securities and Exchange Commission.

Management  Opinion - In the opinion of management,  the accompanying  unaudited
consolidated  financial statements of Community First Bancorporation reflect all
adjustments  necessary  for a fair  presentation  of the  results of the periods
presented. Such adjustments were of a normal, recurring nature.

Nonperforming  Loans - As of June 30, 2003,  there were  $586,000 in  nonaccrual
loans and no loans 90 days or more past due and still accruing.

Earnings Per Share - Basic earnings per common share is computed by dividing net
income  applicable  to common  shares by the weighted  average  number of common
shares  outstanding.   Diluted  earnings  per  share  is  computed  by  dividing
applicable  net  income  by  the  weighted   average  number  of  common  shares
outstanding and any dilutive potential common shares and dilutive stock options.
It is assumed that all dilutive  stock options are exercised at the beginning of
each period and that the proceeds are used to purchase  shares of the  Company's
common  stock at the  average  market  price  during the  period.  All per share
information  has  been  retroactively  adjusted  to give  effect  to a 5%  stock
dividend  effective  November 28, 2002.  Net income per share and net income per
share, assuming dilution, were computed as follows:

<TABLE>
<CAPTION>
                                                                                           (Unaudited)
                                                                                      Period Ended June 30,
                                                                                      ---------------------
                                                                         Three Months                           Six Months
                                                                    -----------------------               ----------------------
                                                                    2003               2002               2003              2002
                                                                    ----               ----               ----              ----
                                                                            (Dollars in thousands, except per share amounts)

Net income per share, basic
<S>                                                              <C>                <C>                <C>                <C>
   Numerator - net income ..............................         $      737         $      688         $    1,464         $    1,327
                                                                 ==========         ==========         ==========         ==========
   Denominator
     Weighted average common shares
        issued and outstanding .........................          2,249,249          2,226,464          2,248,174          2,224,731
                                                                 ==========         ==========         ==========         ==========

        Net income per share, basic ....................         $      .33         $      .31         $      .65         $      .60
                                                                 ==========         ==========         ==========         ==========

Net income per share, assuming dilution
   Numerator - net income ..............................         $      737         $      688         $    1,464         $    1,327
                                                                 ==========         ==========         ==========         ==========
   Denominator
     Weighted average common shares
        issued and outstanding .........................          2,249,249          2,226,464          2,248,174          2,224,731
     Effect of dilutive stock options ..................            113,191            111,607            113,191            114,279
                                                                 ----------         ----------         ----------         ----------
               Total shares ............................          2,362,440          2,338,071          2,361,365          2,339,010
                                                                 ==========         ==========         ==========         ==========

        Net income per share, assuming dilution ........         $      .31         $      .30         $      .62         $      .57
                                                                 ==========         ==========         ==========         ==========
</TABLE>

Stock-Based  Compensation - As of June 30, 2003, the Company has two stock-based
compensation  plans that are accounted for under the recognition and measurement
principles of Accounting  Standards Board Opinion No. 25,  "Accounting for Stock
Issued to Employees," and related  interpretations.  No stock-based compensation
is  reflected  in net  income,  as all  options  granted  under  those plans had
exercise prices equal to the market value of the underlying  common stock on the
date of grant.  Although the Company has adopted the  disclosure  provisions  of
Statement of Financial Accounting Standards No. 123, "Accounting for Stock-Based
Compensation," ("SFAS 123") as amended, there are no current intentions to adopt
the fair value method  recognition  provisions of that Statement.  The following
table  illustrates  the  effect on net  income  and net  income per share if the
Company  had  applied  the fair value  recognition  provisions  of SFAS 123,  to
stock-based  employee  compensation.  Per share  amounts  have been  adjusted to
reflect the effect of a 5% stock dividend effective November 28, 2002.


                                       7
<PAGE>

<TABLE>
<CAPTION>
                                                                                                (Unaudited)
                                                                                           Period Ended June 30,
                                                                                           ---------------------
                                                                               Three Months                       Six Months
                                                                               ------------                       ----------
                                                                            2003           2002             2003             2002
                                                                            ----           ----             ----             ----
                                                                               (Dollars in thousands, except per share amounts)

<S>                                                                      <C>             <C>             <C>               <C>
Net income, as reported ........................................         $   737         $   688         $   1,464         $   1,327
Deduct:  Total stock-based employee
     compensation expense determined under
     fair value based method for all awards,
     net of any related tax effects ............................              67              69               133               138
                                                                         -------         -------         ---------         ---------
Pro forma net income ...........................................         $   670         $   619         $   1,331         $   1,189
                                                                         =======         =======         =========         =========

Net income per share, basic
     As reported ...............................................         $  0.33         $  0.31          $   0.65         $    0.60
     Pro forma .................................................            0.30            0.28              0.59              0.53
Net income per share, assuming dilution
     As reported ...............................................         $  0.31         $  0.30          $   0.62         $    0.57
     Pro forma .................................................            0.28            0.26              0.56              0.51
</TABLE>




                                       8
<PAGE>

Item 2. - Management's Discussion and Analysis

Forward Looking Statements

         Statements  included in Management's  Discussion and Analysis which are
not  historical  in nature are  intended  to be, and are  hereby  identified  as
"forward looking statements" for purposes of the safe harbor provided by Section
21E  of the  Securities  Exchange  Act  of  1934,  as  amended.  Forward-looking
statements include statements concerning plans,  objectives,  goals, strategies,
future events or performance  and underlying  assumptions  and other  statements
which are other  than  statements  of  historical  facts.  Such  forward-looking
statements  may be  identified,  without  limitation,  by the  use of the  words
"anticipates,"   "estimates,"   "expects,"   "intends,"   "plans,"   "predicts,"
"projects," and similar  expressions.  The Company's  expectations,  beliefs and
projections  are expressed in good faith and are believed by the Company to have
a reasonable basis,  including without limitation,  management's  examination of
historical  operating trends,  data contained in the Company's records and other
data  available  from  third  parties,  but  there  can  be  no  assurance  that
management's beliefs,  expectations or projections will result or be achieved or
accomplished.  The Company  cautions  readers that forward  looking  statements,
including  without  limitation,  those  relating  to the  Company's  recent  and
continuing expansion, its future business prospects,  revenues, working capital,
liquidity,  capital needs,  interest costs,  and income,  are subject to certain
risks and  uncertainties  that could cause actual  results to differ  materially
from those indicated in the forward looking statements, due to several important
factors herein identified,  among others, and other risks and factors identified
from  time to time in the  Company's  reports  filed  with  the  Securities  and
Exchange Commission.

Results of Operations

         Community First  Bancorporation (the "Company")  recorded  consolidated
net  income  of  $737,000,  or $.33  per  share,  for the  second  quarter,  and
$1,464,000,  or $.65 per share,  for the first six months of 2003.  During 2002,
the  Company  recorded  net income of  $688,000 or $.31 per share for the second
quarter, and $1,327,000, or $.60 per share, for the first six months. Net income
per share, assuming dilution, for the three and six month periods ended June 30,
2003 was $.31 and $.62,  respectively.  For the  comparable  2002  periods,  net
income per share, assuming dilution, was $.30 and $.57, respectively. Net income
per share  amounts  for 2002 have been  retroactively  adjusted  to reflect a 5%
stock dividend effective November 28, 2002.

Net Interest Income

         Net interest income is the amount of interest income earned on interest
earning assets (loans,  securities,  interest  bearing  deposits in other banks,
federal funds sold and other investments), less the interest expense incurred on
interest bearing  liabilities  (interest bearing deposits and other borrowings),
and is the principal  source of the Company's  earnings.  Net interest income is
affected by the level of  interest  rates,  volume and mix of  interest  earning
assets  and  interest  bearing  liabilities  and the  relative  funding of these
assets.

         For the second quarter of 2003, net interest income was  $1,825,000,  a
decrease of $191,000 or 9.5% from the comparable 2002 period.  For the first six
months of 2003, net interest  income was  $3,751,000,  a decrease of $141,000 or
3.6% from the first six months of 2002. The decreases in net interest income for
the 2003 six and three  month  periods  resulted  primarily  from the effects of
lower  interest  rates earned on earning  assets and larger  volumes of interest
bearing deposit liabilities.

         Average  interest  earning assets during the 2003 six-month period were
$250,866,000,  an increase of $36,478,000 or 17.0% over the comparable period of
2002. Average loans for the 2003 six-month period were $140,362,000, an increase
of $16,003,000 or 12.9% over the average amount for the same period of 2002. The
average yield on interest  earning assets  decreased by 86 basis points to 5.03%
for the 2003  period.  Average  interest  bearing  liabilities  during  the 2003
six-month period were  $213,522,000,  representing an increase of $33,573,000 or
18.7% over the amount for the same period of 2002.  Average time deposits issued
in  denominations  less than  $100,000  increased  to  $86,610,000  for the 2003
six-month  period from  $66,432,000  in the same 2002  period,  representing  an
increase of 30.4%.  The average  interest  rate  associated  with such  deposits
decreased  by 48 basis  points to 3.36% for the 2003 six month  period.  Average
time deposits of $100,000 or more increased to  $63,083,000  for the 2003 period
from  $52,514,000  in the 2002 period,  representing  an increase of 20.1%.  The
average  interest  rate  associated  with these  deposits  decreased by 27 basis
points to 2.60% for the 2003 six month period.

         The average  interest rate spread  (average  yield on interest  earning
assets less the average rate paid on interest bearing liabilities) for the first
six months of 2003 was 2.67%,  a decrease of 56 basis  points from 3.23% for the
same period of 2002. Net yield on earning assets (net interest income divided by
average  interest  earning assets) was 3.02% for the first six months of 2003, a
decrease of 64 basis points from 3.66% for the first six months of 2002.


                                       9
<PAGE>

         The  increases  in  interest   earning  assets  and  interest   bearing
liabilities  resulted from the Company's  continuing  strategies to increase its
market share in its local service areas in Anderson and Oconee Counties of South
Carolina.  Oconee  County  is served  from  three  offices  located  in  Seneca,
Westminster  and  Walhalla.  The  Westminster  office  was  opened in  temporary
quarters during the second quarter of 2003.

Provision and Allowance for Loan Losses

         The provision  for loan losses  charged to expense was $150,000 for the
second  quarter of 2003 compared  with $350,000 for the second  quarter of 2002,
and totaled $400,000 for the first six months of 2003 compared with $660,000 for
the  comparable  period of 2002. At June 30, 2003, the allowance for loan losses
was 1.59% of loans,  compared  with 1.42% of loans at December 31, 2002.  During
the 2003  six-month  period,  net  charge-offs  totaled  $90,000,  compared with
$212,000  charged off during the same period of 2002. As of June 30, 2003, there
were $586,000 in  nonaccrual  loans and no loans over 90 days past due and still
accruing  interest,  collectively  referred to as impaired loans.  The amount of
nonaccrual  loans at June 30, 2003 is $386,000  more than the amount at June 30,
2002 and $280,000  less than the amount of  nonaccrual  loans as of December 31,
2002.  The  majority  of the  nonaccrual  loans are  secured by real  estate and
vehicles.  When the estimated  realizable  value of collateral  associated  with
nonperforming  loans  is  believed  to be  insufficient  to  satisfy  the  debt,
management charges off the excess amount of the debt.

         As of June 30, 2003,  the  Company's  potential  problem  loans totaled
$1,570,000,  an increase of $291,000, or 22.8%, over the amount of such loans as
of December 31, 2002. Potential problem loans include loans, other than impaired
loans,  that  management  has  identified  as having  possible  credit  problems
sufficient  to cast doubt upon the abilities of the borrowers to comply with the
current repayment terms. The majority of the potential problem loans are secured
by real  estate  mortgages  or liens  on  equipment,  inventories,  receivables,
automobiles and other forms of collateral.

         Management  believes  that the allowance for loan losses is adequate to
absorb all estimated  probable  losses inherent in the loan portfolio as of June
30, 2003.

Noninterest Income

         Noninterest  income  totaled  $507,000 for the second  quarter of 2003,
compared with $265,000 for the 2002 quarter. Noninterest income was $972,000 for
the first six months of 2003 and $521,000  for the same 2002 period.  The higher
noninterest income in 2002 was attributable  primarily to increased fees derived
from service  charges and other fees  associated  with  deposit  accounts and to
gains  recognized on the sale of mortgage loans held for sale.  During the third
quarter of 2002, the Company began offering a new program that allows  customers
to avoid  payee-imposed  charges  on  checks  and  similar  items  returned  for
insufficient funds. The company charges a per item fee for this service.  During
the second  quarter of 2003,  the Company  changed  investors with regard to its
residential  mortgage loan  origination  and resale program.  Consequently,  the
Company no longer  provides the initial  funding for such loans.  In the future,
only fee income  (which is included in "Other  Income")  will be  recognized  in
association  with the origination of those loans.  The Company realized a $2,000
loss on the sale of an available-for-sale security in the 2002 six-month period.
No such losses were recognized in the 2003 period.

Noninterest Expenses

         Noninterest expenses totaled $1,035,000 for the second quarter of 2003,
compared with $845,000 for the 2002 period, representing an increase of $190,000
or 22.5%.  Noninterest expenses were $2,048,000 for the first six months of 2003
compared  with  $1,690,000  for the first half of 2002.  Salaries  and  employee
benefits for the 2003 quarter totaled $534,000,  an increase of $68,000 over the
2002 three month period. For the first six months of 2002, salaries and employee
benefits totaled  $1,095,000  representing an increase of $163,000 or 17.5% over
the same period of 2002. This increase  resulted from increased  staffing levels
arising from the opening of the new office in  Westminster,  South  Carolina and
from normal increases in salaries and wages granted from time to time.

         Occupancy and furniture and equipment  expenses for the second  quarter
of 2003  totaled  $120,000,  representing  an increase of $14,000  over the same
period of 2002. Such expenses  increased $7,000 or 3.1% during the first half of
2003. Other expenses for the 2003  three-month  period totaled $381,000 and were
$108,000  more  than in 2002.  For the 2003  six-month  period,  other  expenses
increased by $188,000,  or 35.5%, over the 2002 amount. These expenses increased
primarily   due  to  the  Company's   enhancing   its  internal   communications
capabilities and higher postage and freight expenses  resulting from both higher
account  volumes and  increased  postal  rates.  Higher  expenses have also been
realized due to corporate  governance issues and independence  standards imposed
on the Company and its external auditing firm by recent federal legislation.



                                       10
<PAGE>

Liquidity

         Liquidity is the ability to meet current and future obligations through
the  liquidation or maturity of existing assets or the acquisition of additional
liabilities.  The  Company  manages  both  assets  and  liabilities  to  achieve
appropriate  levels  of  liquidity.  Cash  and  short-term  investments  are the
Company's  primary  sources of asset  liquidity.  These funds  provide a cushion
against  short-term  fluctuations  in cash flow from both  deposits  and  loans.
Securities  available-for-sale  are the Company's  principal source of secondary
asset  liquidity.  However,  the  availability  of this source is  influenced by
market conditions.  Individual and commercial deposits are the Company's primary
source of funds for credit activities.

         As of June 30,  2003,  the ratio of loans to total  deposits was 57.5%,
compared  with 64.9% as of December 31, 2002 and 67.1% as of June 30, 2002.  The
decrease in the  loan-to-deposit  ratio for 2003  generally is the result of the
Company's  recent  efforts to  publicize  the  opening  of its newest  office in
Westminster,  South Carolina and to secure longer-term deposits available within
the  Company's  market areas while  interest  rates are at or near  historic low
levels.

         Deposits as of June 30, 2003 increased by $35,638,000 or 16.8% over the
amount at December  31, 2002 and were  $51,177,000  or 26.1%  greater than their
level of June 30, 2002.

         Management  believes that the Company's  liquidity sources are adequate
to meet its operating needs.

Capital Resources

         The  Company's  shareholders'  equity  increased  by  $1,576,000  since
December  31, 2002 as the result of net income of  $1,464,000  for the first six
months of 2003, $28,000 added from the exercise of employee stock options,  plus
$84,000 in other comprehensive income, primarily unrealized gains arising during
the period on available-for-sale securities.

         The  Company  and its banking  subsidiary  (the  "Bank") are subject to
regulatory  risk-based capital adequacy standards.  Under these standards,  bank
holding  companies and banks are required to maintain  certain minimum ratios of
capital to risk-weighted  assets and average total assets.  Under the provisions
of the Federal Deposit Insurance  Corporation  Improvement Act of 1991 (FDICIA),
federal bank regulatory authorities are required to implement prescribed "prompt
corrective actions" upon the deterioration of the capital position of a bank. If
the  capital  position  of an affected  institution  were to fall below  certain
levels, increasingly stringent regulatory corrective actions are mandated.

         The June 30,  2003 risk based  capital  ratios for the  Company and the
Bank are presented in the following table,  compared with the "well capitalized"
and minimum ratios under the regulatory definitions and guidelines:

                                                            Total
                                              Tier 1        Capital     Leverage
                                              ------        -------     --------
Community First Bancorporation ...........    13.7%          15.0%        8.1%
Community First Bank .....................    13.0%          14.3%        7.6%
Minimum "well-capitalized" requirement ...     6.0%          10.0%        5.0%
Minimum requirement ......................     4.0%           8.0%        4.0%


Off Balance Sheet Arrangements

In the normal  course of business,  the Bank is party to  financial  instruments
with  off-balance-sheet  risk including commitments to extend credit and standby
letters of credit.  Such  instruments  have elements of credit risk in excess of
the amount  recognized in the balance sheet.  The exposure to credit loss in the
event of  nonperformance  by the other parties to the financial  instruments for
commitments to extend credit and standby letters of credit is represented by the
contractual  notional amount of those  instruments.  Generally,  the same credit
policies  used for  on-balance-sheet  instruments,  such as  loans,  are used in
extending loan commitments and standby letters of credit.

Following are the off-balance-sheet financial instruments whose contract amounts
represent credit risk:

                                               June 30, 2003
                                               -------------
                                          (Dollars in thousands)
Loan commitments .......................     $     13,385
Standby letters of credit ..............              449


Loan commitments involve agreements to lend to a customer as long as there is no
violation of any condition  established in the contract.  Commitments  generally


                                       11
<PAGE>

have  fixed  expiration  dates or other  termination  clauses  and some  involve
payment of a fee. Many of the  commitments  are expected to expire without being
fully  drawn;  therefore,   the  total  amount  of  loan  commitments  does  not
necessarily represent future cash requirements. Each customer's creditworthiness
is evaluated on a case-by-case basis. The amount of collateral obtained, if any,
upon  extension  of credit is based on  management's  credit  evaluation  of the
borrower. Collateral held varies but may include commercial and residential real
properties, accounts receivable, inventory and equipment.

Standby  letters  of  credit  are  conditional   commitments  to  guarantee  the
performance of a customer to a third party.  The credit risk involved in issuing
standby  letters  of  credit  is the  same  as  that  involved  in  making  loan
commitments to customers.

As described under "Liquidity,"  management believes that its various sources of
liquidity  provide  the  resources  necessary  for the  Bank to  fund  the  loan
commitments and to perform under standby letters of credit,  if the need arises.
Neither  the  Company  nor the Bank are  involved  in  other  off-balance  sheet
contractual  relationships or transactions  that could result in liquidity needs
or other commitments or significantly impact earnings.

Accounting and Reporting Changes

In  April  2003,  the  Financial  Accounting  Standards  Board  ("FASB")  issued
Statement of Financial  Accounting  Standards  ("SFAS") No. 149,  "Amendment  of
Statement 133 on Derivative  Instruments and Hedging  Activities."  SFAS No. 149
amends and clarifies  accounting for derivative  instruments,  including certain
derivative  contracts  embedded in other  contracts  and loan  commitments  that
relate to the  origination  of  mortgage  loans held for sale,  and for  hedging
activities under SFAS No. 133. SFAS No. 149 is generally effective for contracts
entered into or modified  after June 30,  2003.  The adoption of SFAS No. 149 is
not expected to have a material  effect on the financial  condition or operating
results of the Company.

In May 2003,  the FASB issued SFAS No. 150,  "Accounting  for Certain  Financial
Instruments with  Characteristics  of both Liabilities and Equity." SFAS No. 150
establishes  standards  for  how  an  issuer  classifies  and  measures  certain
financial  instruments with  characteristics  of both liabilities and equity. It
requires that an issuer classify a financial instrument that is within its scope
as a liability (or as an asset in some circumstances). Many of those instruments
were previously  classified as equity.  SFAS No. 150 is generally  effective for
financial instruments entered into or modified after May 31, 2003, and otherwise
is effective at the beginning of the first interim period  beginning  after June
15,  2003.  The  adoption of SFAS No. 150 did not have a material  effect on the
financial condition or operating results of the Company.

Item 3. - Controls and Procedures

(a)  Based  on  their  evaluation  of  the  issuer's   disclosure  controls  and
     procedures   (as   defined  in  17  C.F.R.   Sections   240.13a-14(c)   and
     240.15d-14(c))  as of a date  within  90 days  prior to the  filing of this
     quarterly report,  the issuer's chief executive officer and chief financial
     officer  concluded that the  effectiveness  of such controls and procedures
     was adequate.

(b)  There were no significant  changes in the issuer's  internal controls or in
     other factors that could significantly  affect these controls subsequent to
     the date of their evaluation,  including any corrective actions with regard
     to significant deficiencies and material weaknesses.

                                       12
<PAGE>

                           PART II - OTHER INFORMATION

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

         On  Tuesday,  April 22,  2003,  the  shareholders  of  Community  First
Bancorporation held their regular annual meeting. At the meeting, one matter was
submitted to a vote with results as follows:

1.       Election of three directors to hold office for three-year terms:

                                                     SHARES VOTED
                                                     ------------
                                                                     AUTHORITY
         DIRECTORS                          FOR         AGAINST       WITHHELD
                                            ---         ---------     --------

         Larry S. Bowman, M.D.          1,569,027         5,190          0
         William M. Brown               1,569,027         5,190          0
         John R. Hamrick                1,569,027         5,190          0
         Frederick D. Shepherd, Jr.     1,569,027         5,190          0


         The following directors continue to serve until the expiration of their
terms at the  annual  meetings  to be held in the years  indicated  and were not
voted on at the 2003 annual meeting: Robert H. Edwards - 2004, Blake L. Griffith
- 2004,  Gary V. Thrift - 2004,  R. Theo  Harris,  Sr. - 2005,  James E. McCoy -
2005, James E. Turner - 2005, and Charles L. Winchester - 2005.


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

(a) Exhibits.               None
(b) Reports on Form 8-K.    Form 8-K filed April 23, 2003,  pursuant to Item 12
                            of the form to report earnings for the quarter ended
                            March 31, 2003.




                                       13
<PAGE>


SIGNATURE

         In accordance with the requirements of the Exchange Act, the registrant
has caused this report to be signed on its behalf by the undersigned,  thereunto
duly authorized.


                                      COMMUNITY FIRST BANCORPORATION

August 8, 2003                        /s/ Frederick D. Shepherd, Jr.
-----------------                     ------------------------------------------
         Date                         Frederick D. Shepherd, Jr., President and
                                      Chief Executive Officer (also principal
                                      accounting officer)



                                       14
<PAGE>


I, Frederick D. Shepherd, Jr., certify that:

1.   I have reviewed  this  quarterly  report on Form 10-QSB of Community  First
     Bancorporation;

2.   Based on my knowledge,  this  quarterly  report does not contain any untrue
     statement of a material fact or omit to state a material fact  necessary to
     make the statements  made, in light of the  circumstances  under which such
     statements  were made, not misleading with respect to the period covered by
     this quarterly report;

3.   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information  included  in this  quarterly  report,  fairly  present  in all
     material respects the financial  condition,  results of operations and cash
     flows of the  registrant  as of, and for,  the  periods  presented  in this
     quarterly report;

4.   The  registrant's  other  certifying  officers  and I are  responsible  for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

     (a)  designed  such  disclosure  controls  and  procedures  to ensure  that
          material  information  relating  to  the  registrant,   including  its
          consolidated subsidiaries,  is made known to us by others within those
          entities,  particularly  during  the  period in which  this  quarterly
          report is being prepared;

     (b)  evaluated the  effectiveness of the registrant's  disclosure  controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     (c)  presented  in  this  quarterly   report  our  conclusions   about  the
          effectiveness  of the disclosure  controls and procedures based on our
          evaluation as of the Evaluation Date;

5.   The registrant's other certifying  officers and I have disclosed,  based on
     our most recent  evaluation,  to the  registrant's  auditors  and the audit
     committee of  registrant's  board of directors (or persons  performing  the
     equivalent functions):

     a)   all  significant  deficiencies  in the design or operation of internal
          controls  which could  adversely  affect the  registrant's  ability to
          record,  process,   summarize  and  report  financial  data  and  have
          identified for the  registrant's  auditors any material  weaknesses in
          internal controls; and

     b)   any fraud, whether or not material,  that involves management or other
          employees who have a  significant  role in the  registrant's  internal
          controls; and

6.   The  registrant's  other  certifying  officers and I have indicated in this
     quarterly report whether or not there were significant  changes in internal
     controls  or in other  factors  that could  significantly  affect  internal
     controls  subsequent to the date of our most recent  evaluation,  including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.

Date:  August 8, 2003



                                  s/ Frederick D. Shepherd, Jr.
                                  --------------------------------------------
                                  President and Chief Executive Officer (also
                                  principal accounting officer)




                                       15