U. S. 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 September 30, 2005      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 (2)
has been subject to such filing requirements for the past 90 days.

         Yes [ X ]  No [  ]

         Indicate by check mark whether the  registrant  is a shell  company (as
defined in Rule 12b-2 of the Exchange Act).

         Yes [  ]  No [ X ]

         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, 2,653.105 Shares Outstanding on October 31, 2005.

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 6.     Exhibits .....................................................    13

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




                                       2
<PAGE>


                         PART I - FINANCIAL INFORMATION

Item 1. - Financial Statements

COMMUNITY FIRST BANCORPORATION
Consolidated Balance Sheet

<TABLE>
<CAPTION>
                                                                                                     (Unaudited)
                                                                                                     September 30,      December 31,
                                                                                                         2005              2004
                                                                                                         ----              ----
                                                                                                         (Dollars in thousands)
Assets
<S>                                                                                                     <C>               <C>
     Cash and due from banks ...................................................................        $   5,931         $   5,652
     Interest bearing deposits due from banks ..................................................              246                36
     Federal funds sold ........................................................................           16,937            34,214
                                                                                                        ---------         ---------
         Cash and cash equivalents .............................................................           23,114            39,902
     Securities available-for-sale .............................................................           95,035            92,084
     Securities held-to-maturity (fair value $8,197 for 2005 and $9,560 for 2004) ..............            8,143             9,369
     Other investments .........................................................................              948             1,011
     Loans .....................................................................................          167,934           157,775
         Allowance for loan losses .............................................................           (2,299)           (2,240)
                                                                                                        ---------         ---------
            Loans - net ........................................................................          165,635           155,535
     Premises and equipment - net ..............................................................            6,272             4,413
     Accrued interest receivable ...............................................................            1,442             1,331
     Other assets ..............................................................................            1,824             1,703
                                                                                                        ---------         ---------

            Total assets .......................................................................        $ 302,413         $ 305,348
                                                                                                        =========         =========

Liabilities
     Deposits
         Noninterest bearing ...................................................................        $  37,008         $  34,903
         Interest bearing ......................................................................          227,774           233,245
                                                                                                        ---------         ---------
            Total deposits .....................................................................          264,782           268,148
     Accrued interest payable ..................................................................            1,635             1,222
     Short-term borrowings .....................................................................                -             2,500
     Long-term debt ............................................................................            7,500             7,500
     Other liabilities .........................................................................              159                41
                                                                                                        ---------         ---------
            Total liabilities ..................................................................          274,076           279,411
                                                                                                        ---------         ---------

Shareholders' equity
     Common stock - no par value; 10,000,000 shares authorized; issued and
         outstanding - 2,653,105 for 2005 and
         2,648,230 for 2004 ....................................................................           24,246            24,216
     Retained earnings .........................................................................            5,036             2,220
     Accumulated other comprehensive income (loss) .............................................             (945)             (499)
                                                                                                        ---------         ---------
            Total shareholders' equity .........................................................           28,337            25,937
                                                                                                        ---------         ---------

            Total liabilities and shareholders' equity .........................................        $ 302,413         $ 305,348
                                                                                                        =========         =========
</TABLE>




See accompanying notes to unaudited consolidated financial statements.



                                       3
<PAGE>

COMMUNITY FIRST BANCORPORATION
Consolidated Statement of Income

<TABLE>
<CAPTION>
                                                                                                    (Unaudited)
                                                                                             Period Ended September 30,
                                                                                             --------------------------
                                                                                     Three Months                  Nine Months
                                                                                     ------------                  -----------
                                                                               2005           2004           2005              2004
                                                                               ----           ----           ----              ----
                                                                                      (Dollars in thousands, except per share)

Interest income
<S>                                                                          <C>            <C>             <C>            <C>
     Loans, including fees ...........................................       $  2,930       $  2,588        $  8,485       $  7,638
     Securities
     Taxable .........................................................            843            955           2,662          2,457
     Tax-exempt ......................................................             40             18              92             55
     Other investments ...............................................             11              8              31             21
     Federal funds sold ..............................................            185             51             497            177
     Interest bearing deposits due from banks ........................              2              -               2              -
                                                                             --------       --------        --------       --------
         Total interest income .......................................          4,011          3,620          11,769         10,348
                                                                             --------       --------        --------       --------

Interest expense
     Time deposits $100M and over ....................................            589            347           1,492          1,085
     Other deposits ..................................................          1,091            818           3,002          2,550
     Short-term borrowings ...........................................              -             11              18             13
     Long-term debt ..................................................             72             72             211             79
                                                                             --------       --------        --------       --------
         Total interest expense ......................................          1,752          1,248           4,723          3,727
                                                                             --------       --------        --------       --------

Net interest income ..................................................          2,259          2,372           7,046          6,621
Provision for loan losses ............................................              -            180             215            315
                                                                             --------       --------        --------       --------
Net interest income after provision ..................................          2,259          2,192           6,831          6,306
                                                                             --------       --------        --------       --------

Other income
     Service charges on deposit accounts .............................            402            393           1,160          1,155
     Credit life insurance commissions ...............................              9              7              27             26
     Net gains (losses) on sales of available-for-sale
         securities ..................................................              -            (14)              -             (9)
     Other income ....................................................            132            138             394            367
                                                                             --------       --------        --------       --------
         Total other income ..........................................            543            524           1,581          1,539
                                                                             --------       --------        --------       --------

Other expenses
     Salaries and employee benefits ..................................            791            708           2,132          2,089
     Net occupancy expense ...........................................             65             69             190            209
     Furniture and equipment expense .................................             89             75             266            230
     Other expense ...................................................            438            451           1,470          1,311
                                                                             --------       --------        --------       --------
         Total other expenses ........................................          1,383          1,303           4,058          3,839
                                                                             --------       --------        --------       --------

Income before income taxes ...........................................          1,419          1,413           4,354          4,006
Income tax expense ...................................................            489            509           1,538          1,440
                                                                             --------       --------        --------       --------
Net income ...........................................................       $    930       $    904        $  2,816       $  2,566
                                                                             ========       ========        ========       ========

Per share*
     Net income ......................................................       $   0.35       $   0.34        $   1.06       $   0.97
     Net income, assuming dilution ...................................           0.32           0.32            0.99           0.92
                                                                                                                           --------
</TABLE>

* Per share information has been  retroactively  adjusted to reflect a 10% stock
dividend effective November 30, 2004.


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

<S>                                                              <C>           <C>           <C>           <C>            <C>
Balance, January 1, 2004 ...................................     2,362,057     $  19,620     $   3,117     $    (200)     $  22,537
                                                                                                                          ---------

Comprehensive income:
    Net income .............................................             -             -         2,566             -          2,566
                                                                                                                          ---------
    Unrealized holding gains and losses
      on available-for-sale securities arising
      during the period, net of income taxes of $55 ........             -             -             -           (97)           (97)
    Reclassification adjustment for losses (gains)
      realized in income, net of income taxes of $3 ........             -             -             -             6              6
                                                                                                                          ---------
    Total other comprehensive income (loss) ................             -             -             -             -            (91)
                                                                                                                          ---------
    Total comprehensive income .............................             -             -             -             -          2,475
                                                                                                                          ---------
Exercise of employee stock options .........................        45,821           268             -             -            268
                                                                 ---------     ---------     ---------     ---------      ---------
Balance, September 30, 2004 ................................     2,407,878     $  19,888     $   5,683     $    (291)     $  25,280
                                                                 =========     =========     =========     =========      =========


Balance, January 1, 2005 ...................................     2,648,230     $  24,216     $   2,220     $    (499)     $  25,937
                                                                                                                          ---------

Comprehensive income:
    Net income .............................................             -             -         2,816             -          2,816
                                                                                                                          ---------
    Unrealized holding gains and losses
      on available-for-sale securities arising
      during the period, net of income taxes of $249 .......             -             -             -          (446)          (446)
                                                                                                                          ---------
    Total other comprehensive income (loss) ................             -             -             -             -           (446)
                                                                                                                          ---------
    Total comprehensive income .............................             -             -             -             -          2,370
                                                                                                                          ---------
Exercise of employee stock options .........................         4,875            30             -             -             30
                                                                 ---------     ---------     ---------     ---------      ---------
Balance, September 30, 2005 ................................     2,653,105     $  24,246     $   5,036     $    (945)     $  28,337
                                                                 =========     =========     =========     =========      =========
</TABLE>


See accompanying notes to unaudited consolidated financial statements.

                                       5
<PAGE>



COMMUNITY FIRST BANCORPORATION
Consolidated Statement of Cash Flows

<TABLE>
<CAPTION>
                                                                                                                 (Unaudited)
                                                                                                              Nine Months Ended
                                                                                                                September 30,
                                                                                                                -------------
                                                                                                            2005               2004
                                                                                                            ----               ----
                                                                                                             (Dollars in thousands)
Operating activities
<S>                                                                                                      <C>               <C>
     Net income ................................................................................         $  2,816          $  2,566
     Adjustments to reconcile net income to net
         cash provided by operating activities
            Provision for loan losses ..........................................................              215               315
            Writedowns of other real estate owned ..............................................               25               125
            Depreciation .......................................................................              225               213
            Amortization of net loan (fees) and costs ..........................................              (70)              (67)
            Securities accretion and premium amortization ......................................              202               664
            Net losses on available-for-sale securities ........................................                -                 9
            Loss on sale of other real estate ..................................................                9                 -
            Increase in interest receivable ....................................................             (111)             (118)
            Increase (decrease) in interest payable ............................................              413              (240)
            Decrease in prepaid expenses and other assets ......................................               36               183
            Increase in other accrued expenses .................................................              118               283
                                                                                                         --------          --------
                Net cash provided by operating activities ......................................            3,878             3,933
                                                                                                         --------          --------

Investing activities
     Purchases of available-for-sale securities ................................................          (46,988)          (52,381)
     Purchases of held-to-maturity securities ..................................................                -            (9,949)
     Maturities, calls and paydowns of securities available-for-sale ...........................           43,134            34,973
     Maturities, calls and paydowns of securities held-to-maturity .............................            1,232                 -
     Proceeds of sales of available-for-sale securities ........................................                -             5,273
     Purchases of other investments ............................................................             (162)             (147)
     Proceeds of sales of other investments ....................................................              225                 -
     Net increase in loans made to customers ...................................................          (10,245)           (8,101)
     Purchases of premises and equipment .......................................................           (2,084)              (48)
     Proceeds of sale of real estate held for sale .............................................                -               212
     Proceeds of sale of other real estate .....................................................               58               389
                                                                                                         --------          --------
                Net cash used by investing activities ..........................................          (14,830)          (29,779)
                                                                                                         --------          --------

Financing activities
     Net decrease in demand deposits, interest
         bearing transaction accounts and savings accounts .....................................          (10,095)           (1,116)
     Net increase in certificates of deposit and other
         time deposits .........................................................................            6,729            (2,078)
     Net (decrease) increase in short-term borrowings ..........................................           (2,500)            2,500
     Proceeds of issuing long-term debt ........................................................                -             7,500
     Exercise of employee stock options ........................................................               30               268
                                                                                                         --------          --------
                Net cash (used) provided by financing activities ...............................           (5,836)            7,074
                                                                                                         --------          --------
Decrease in cash and cash equivalents ..........................................................          (16,788)          (18,772)
Cash and cash equivalents, beginning ...........................................................           39,902            39,505
                                                                                                         --------          --------
Cash and cash equivalents, ending ..............................................................         $ 23,114          $ 20,733
                                                                                                         ========          ========


Supplemental Disclosure of Cash Flow Information
     Cash paid during the year for:
         Interest ..............................................................................         $  4,310          $  3,967
         Income taxes ..........................................................................            1,431             1,136
     Noncash investing and financing activities:
         Transfer of loans to other real estate ................................................                -               141
         Other comprehensive income (loss) .....................................................             (446)              (91)
</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 Community First  Bancorporation's  (the "Company") Annual Report for the year
ended  December 31, 2004 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  September  30,  2005,  there  were  $969,000  of
nonaccrual  loans  and no loans  90 days or more  past  due and  still  accruing
interest.

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.  Per  share
information  for 2004 has been  retroactively  adjusted  to give effect to a 10%
stock dividend  effective November 30, 2004. Net income per share and net income
per share, assuming dilution, were computed as follows:



<TABLE>
<CAPTION>
                                                                                            (Unaudited)
                                                                                     Period Ended September 30,
                                                                                     --------------------------
                                                                         Three Months                          Nine Months
                                                                         ------------                          -----------
                                                                    2005               2004               2005              2004
                                                                    ----               ----               ----              ----
                                                                        (Dollars in thousands, except per share amounts)

<S>                                                              <C>                <C>                <C>                <C>
Net income per share, basic
  Numerator - net income ...............................         $      930         $      904         $    2,816         $    2,566
                                                                 ==========         ==========         ==========         ==========
  Denominator
    Weighted average common shares
      issued and outstanding ...........................          2,651,779          2,648,168          2,649,503          2,637,351
                                                                 ==========         ==========         ==========         ==========

         Net income per share, basic ...................         $      .35         $      .34         $     1.06         $      .97
                                                                 ==========         ==========         ==========         ==========

  Net income per share, assuming dilution
    Numerator - net income .............................         $      930         $      904         $    2,816         $    2,566
                                                                 ==========         ==========         ==========         ==========
    Denominator
      Weighted average common shares
        issued and outstanding .........................          2,651,779          2,648,168          2,649,503          2,637,351
      Effect of dilutive stock options .................            192,685            149,186            187,507            139,409
                                                                 ----------         ----------         ----------         ----------
               Total shares ............................          2,844,464          2,797,354          2,837,010          2,776,760
                                                                 ==========         ==========         ==========         ==========

         Net income per share, assuming dilution .......         $      .32         $      .32         $      .99         $      .92
                                                                 ==========         ==========         ==========         ==========
</TABLE>


Stock-Based  Compensation  - As of  September  30,  2005,  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  recognized 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.  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 Statement of Financial  Accounting Standards (`SFAS")
123 to stock-based employee  compensation.  Per share amounts have been adjusted
to reflect the effect of a 10% stock dividend effective November 30, 2004.


                                       7
<PAGE>


<TABLE>
<CAPTION>

                                                                                               (Unaudited)
                                                                                        Period Ended September 30,
                                                                                        --------------------------
                                                                               Three Months                     Nine Months
                                                                               ------------                     -----------
                                                                            2005           2004           2005              2004
                                                                            ----           ----           ----              ----
                                                                            (Dollars in thousands, except per share amounts)

<S>                                                                      <C>             <C>             <C>               <C>
Net income, as reported ........................................         $   930         $   904         $   2,816         $   2,566
Deduct:  Total stock-based employee
     compensation expense determined under
     fair value based method for all awards,
     net of any related tax effects ............................              65              60               194               179
                                                                         -------         -------         ---------         ---------
Pro forma net income ...........................................         $   865         $   844         $   2,622         $   2,387
                                                                         =======         =======         =========         =========

Net income per share, basic
     As reported ...............................................         $  0.35         $  0.34         $    1.06         $    0.97
     Pro forma .................................................            0.33            0.32              0.99              0.91
Net income per share, assuming dilution
     As reported ...............................................         $  0.32         $  0.32         $    0.99         $    0.92
     Pro forma .................................................            0.31            0.30              0.92              0.86
</TABLE>


In December 2004, the Financial  Accounting  Standards Board issued SFAS No. 123
(R),  which  requires that the costs  resulting from all share based payments be
recognized  in the  financial  statements.  SFAS 123 (R)  replaces  SFAS 123 and
supersedes APB No. 25, as well as several other related pronouncements. SFAS 123
(R) is effective for the Company beginning January 1, 2006.  Various  transition
methods are available for the restatement of prior period  information,  but the
Company  has not yet  determined  which  method will be used.  Accordingly,  the
effect  of the  implementation  of this  statement  on the  Company's  financial
position and results of operations has not been determined for any period.




                                       8
<PAGE>


Item 2. - Management's Discussion and Analysis

Forward Looking Statements

         Statements  included in this report 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,"  "believes,"  "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,
income,  and adequacy of the allowance for loan losses, are subject to 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  recorded  consolidated  net income of
$930,000, or $.35 per share, for the third quarter, and $2,816,000, or $1.06 per
share, for the first nine months of 2005.  During 2004, the Company recorded net
income of $904,000, or $.34 per share, for the third quarter, and $2,566,000, or
$.97 per share,  for the first  nine  months.  Net  income  per share,  assuming
dilution, for the three and nine month periods ended September 30, 2005 was $.32
and $.99,  respectively.  For the comparable 2004 periods, net income per share,
assuming dilution, was $.32 and $.92, respectively. Net income per share amounts
for 2004 have  been  retroactively  adjusted  to  reflect  a 10% stock  dividend
effective November 30, 2004.

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 and by the volume and mix of interest
earning assets and interest bearing liabilities.

         For the first nine months of 2005, net interest  income was $7,046,000,
an increase of $425,000 or 6.4% from the first nine months of 2004. The increase
in net interest income for the 2005 period  resulted  primarily from the effects
of larger volumes of average interest earning assets.

         Average  interest  earning  assets in the 2005 nine month  period  were
$297,911,000 compared with $282,288,000 in the same period of 2004, representing
an increase of $15,623,000 or 5.5%.  Average loans outstanding were $162,555,000
in the 2005 nine month period compared with  $151,287,000 in the 2004 nine month
period,  representing  an increase of  $11,268,000  or 7.4%.  Average loans were
54.6%  and  53.6%  of  average  interest  earning  assets  for the 2005 and 2004
nine-month  periods,  respectively.  Average investment  securities for the 2005
nine month period were $110,841,000,  an increase of $4,615,000 or 4.3% over the
2004 amount.  Average  federal  funds sold for the 2005  nine-month  period were
$23,352,000,  a  decrease  of  $544,000  or 2.3%  from the same  period of 2004.
Average  interest  bearing  liabilities  during the 2005 nine-month  period were
$244,054,000, representing an increase of $7,576,000 or 3.2% over the amount for
the same period of 2004. Average time deposits of $100,000 and over increased to
$63,854,000  for the 2005 nine-month  period from  $60,066,000 in the same prior
year period, an increase of $3,788,000 or 6.3%.  Average time deposits less than
$100,000   increased  to  $104,588,000  for  the  2005  nine-month  period  from
$103,806,000 in the same period of 2004, representing an increase of $782,000 or
..8%.  Average interest  bearing  transaction and savings  accounts  decreased to
$67,154,000  for the 2005  nine-month  period,  a decrease of $1,584,000 or 2.3%
from the same period of 2004.

         The yields and rates  associated with the subsidiary  bank's  financial
assets and  liabilities  are affected  primarily by short-term  interest  rates.
During the  twelve-month  period ended  September 30, 2005, the Federal  Reserve
Bank's Open Market Committee gradually increased certain key short-term rates by
a total of 200 basis points. Consequently,  the prime rate, a key determinant of

                                       9
<PAGE>

rates  charged  to  the  Company's  most  creditworthy  customers  and a  factor
considered in the Company's  loan-pricing decisions rose steadily throughout the
period.  Likewise,  rates paid by the Company for interest  bearing deposits and
other funding sources also increased.

         The average  rate earned on interest  earning  assets  increased  by 38
basis  points to 5.28% for the first nine  months of 2005 as  compared  with the
same period of 2004.  The average  rate paid for  interest  bearing  liabilities
during the 2005 nine month period was 2.59%, an increase of 48 basis points from
the same 2004  period.  The  average  interest  rate  spread  (average  yield on
interest  earning  assets  less  the  average  rate  paid  on  interest  bearing
liabilities) for the first nine months of 2005 was 2.69%. The comparable  figure
for the first nine  months of 2004 was 2.79%.  Net yield on earning  assets (net
interest  income divided by average  interest  earning assets) was 3.16% for the
first nine  months of 2005,  an  increase  of 3 basis  points from the 3.13% net
yield for the first nine months of 2004.

         As of September 30, 2005, approximately  $57,025,000,  or 34.0%, of the
Company's loan portfolio was composed of variable rate loans directly indexed to
movements  in the prime rate.  The average rate earned on loans during the first
nine months of 2005 was 6.98%,  compared with 6.74% for the same period of 2004.
Interest bearing deposit  liabilities  typically mature within thirty six months
from the date of issuance and  generally  provide for penalties in the Company's
favor in the event of early withdrawal.

         During the first nine months of 2004, the Company increased  investment
securities by $21,268,000, or 24.7%. This increase was funded by both decreasing
the Company's  investment in federal funds sold and incurring other liabilities.
Late  in  the  second  quarter  of  2004,  the  Company  borrowed  approximately
$10,000,000  from the FHLB and invested the proceeds in several  mortgage-backed
securities issues with a combined  yield-to-maturity  of 5.10%. These securities
were  designated  and are  accounted  for as  held-to-maturity  securities.  The
average expected life of these securities was  approximately 6.0 years as of the
purchase  date.  The borrowed  funds  consisted of a  combination  of short- and
long-term  debt with an average life of  approximately  4.6 years and an average
cost  of  3.27%  at the  date  incurred.  Also  contributing  to  the  Company's
investment  activities  in the first nine months of 2004 were the  responses  of
securities  issuers  to  the  Federal  Reserve's  interest  rate  actions.  Many
securities  issuers  have  for  the  past  several  quarters  redeemed  callable
securities  that were issued at rates  higher than  current  rates.  The Company
generally replaced the called securities with new securities that generally were
issued at lower rates.

Provision and Allowance for Loan Losses,  Non-performing  and Potential  Problem
Loans

         No  provision  for loan losses was charged to expense  during the third
quarter of 2005 compared with $180,000 for the third quarter of 2004,  primarily
due to lower  amounts  of net  charge-offs  in the 2005 three  month  period and
reductions  in  nonaccrual  and  potential  problem  loans during the 2005 third
quarter.  For the first  nine  months of 2005,  the  provision  for loan  losses
totaled  $215,000  compared with $315,000 for the comparable  period of 2004. At
September  30, 2005 and  December 30, 2004,  the  allowance  for loan losses was
1.37% and 1.42% of loans, respectively.

         During the 2005 nine-month  period,  net charge-offs  totaled $156,000,
compared with $194,000  during the same period of 2004. Net  charge-offs  during
the 2005 third  quarter were $38,000,  a decrease of $64,000,  or 62.7% from the
$102,000 in net  charge-offs  during the third  quarter of 2004. As of September
30, 2005, there were $969,000 in nonaccrual loans and no loans over 90 days past
due and still accruing interest. The amount of nonaccrual loans at September 30,
2005 is  $189,000  less  than the  comparable  amount  as of June  30,  2005 and
$496,000 less than the amount of nonaccrual loans as of December 31, 2004. As of
September 30, 2005, the majority of nonaccrual  loans are secured by vehicles or
real estate.  When the estimated net realizable  value of collateral  associated
with  nonperforming  loans is believed to be  insufficient  to satisfy the debt,
management generally charges-off the excess amount of the debt.

         Potential problem loans include loans, other than non-performing 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. As of September 30, 2005, the Company's potential problem loans
totaled  $2,873,000,  an increase of $1,470,000 from the amount of such loans as
of December  31,  2004.  However,  this amount is $578,000  less than the amount
reported as of June 30,  2005.  The increase in  potential  problem  loans since
December  31,  2004  is  attributable   primarily  to  cash  flow   difficulties
experienced  by unrelated  borrowers on four real estate  secured loans totaling
$1,343,000,  and one commercial loan of $421,000.  Management  believes that the
value of the real estate loans'  collateral and a governmental  agency guarantee
covering a portion of the commercial  loan are sufficient to protect the Company
from loss.  Management does not believe that the problems  associated with these
loans  indicate the beginning of a trend or reflect any  large-scale  changes in
the  Company's  trade  area.  Rather,  the  problems  are  believed  to  reflect
conditions peculiar to the borrowers themselves. The majority of other potential
problem  loans are  secured  by real  estate  mortgages  or liens on  equipment,
inventories, receivables, automobiles and other forms of collateral.

                                       10
<PAGE>


Noninterest Income

         Noninterest  income  totaled  $543,000  for the third  quarter of 2005,
compared with $524,000 for the 2004 quarter.  Noninterest  income was $1,581,000
for the first  nine  months  of 2005 and  $1,539,000  for the same 2004  period.
Income from  mortgage  brokerage  activities  for the 2005 nine month period was
$22,000  less than for the same period of 2004.  No  securities  gains or losses
were realized in the 2005 year-to-date period. There were $9,000 in net realized
losses on sales of  available-for-sale  securities in the  comparable  period of
2004.

Noninterest Expenses

         Noninterest  expenses totaled $1,383,000 for the third quarter of 2005,
compared  with  $1,303,000  for the 2004  period,  representing  an  increase of
$80,000 or 6.1%.  Noninterest expenses were $4,058,000 for the first nine months
of 2005  compared  with  $3,839,000  for the same period of 2004.  Salaries  and
employee benefits for the 2005 quarter totaled $791,000,  an increase of $83,000
over the 2004 three month  period.  For the first nine months of 2005,  salaries
and employee benefits totaled $2,132,000  representing an increase of $43,000 or
2.1% over the same period of 2004. This increase resulted  primarily from normal
increases in salaries and wages granted from time to time.

         Occupancy and furniture and equipment expenses for the third quarter of
2005 totaled $154,000,  an increase of $10,000,  or 6.9% from the amount for the
same  period of 2004.  Such  expenses  increased  $17,000  during the first nine
months  of 2005 and  totaled  $456,000  for the 2005  nine-month  period.  Other
expenses for the third quarter of 2005 were  $438,000,  a decrease of $13,000 or
2.9% from the comparable period of 2004. Such expenses for the nine-month period
of 2005 were  $1,470,000,  an  increase of $159,000 or 12.1% over the amount for
the same period of 2004. These expenses increased  primarily because of expenses
associated with preparing the Company to comply with the requirements of Section
404 of the Sarbanes-Oxley Act of 2002, increased  amortization  expenses of core
data processing costs, and expenses incurred in 2005 for the Company's  biennial
strategic planning process.

         Management anticipates that higher amounts of noninterest expenses will
continue during the remainder of 2005.

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 legal
requirements  that the Bank pledge  investment  securities as collateral for any
local  governmental  deposits  not  covered  by  FDIC  insurance  and by  market
conditions.  Individual and commercial deposits are the Company's primary source
of funds for credit activities.

         As of  September  30,  2005,  the ratio of loans to total  deposits was
63.4%, compared with 58.8% as of December 31, 2004 and 61.4% as of September 30,
2004. The increase in the loan-to-deposit ratio for 2005 is generally the result
of  diversification  of funding  sources to include  non-deposit  borrowings and
increased loan volumes.

         Deposits as of September 30, 2005  decreased by $3,366,000 or 1.3% from
the amount at December 31, 2004 and were  $11,425,000 or 4.5% greater than their
levels of September  30, 2004.  Typically,  the Company's  deposit  totals as of
December 31 are temporarily  increased because of year-end property tax receipts
deposited  into accounts of Oconee  County,  South  Carolina held with the Bank.
Subsequently, those accounts are redistributed to other entities, including many
that maintain deposit accounts with other financial institutions.

         In addition,  the  composition of accounts  maintained with the Bank by
its deposit customers changed during the 2005 nine month period. Certificates of
deposit issued in denominations of less than $100,000 increased by approximately
$10,703,000,  or 11.0%,  above the amount as of December 31, 2005.  Other,  more
liquid types of interest  bearing  deposit  accounts,  such as interest  bearing
checking accounts and savings  accounts,  decreased by $10,095,000 as depositors
responded to increased rates the Bank offered for time deposit accounts.

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

Capital Resources

         The Company's equity capital increased by $2,400,000 since December 31,
2004 as the result of net  income of  $2,816,000  for the first  nine  months of


                                       11
<PAGE>

2005,  $30,000 added from the exercise of employee stock options,  less $446,000
from changes in items of comprehensive  income,  primarily  unrealized losses on
available-for-sale investment securities, net of deferred taxes.

         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 September  30, 2005 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 ..............    15.9%        17.2%      9.6%
Community First Bank ........................    15.3%        16.6%      9.2%
Minimum "well-capitalized" requirement ......     6.0%        10.0%      6.0%
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 or 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:


                                            September 30, 2005
                                            ------------------
                                          (Dollars in thousands)
Loan commitments .......................           $ 23,684
Standby letters of credit ..............                889




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
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.
The Bank contracted for the construction of a new headquarters building which is
currently under construction in Seneca,  South Carolina.  The contract price for
this building is approximately $1,700,000.  Upon completion,  which is currently
expected  to occur in the second  quarter of 2006,  the  building  will house an
additional  banking  office,  the  mortgage  lending  staff,  and the  Company's
executive   officers.   Through   September  30,  2005,  the  Company  has  made
expenditures totaling approximately $307,000 under this arrangement. 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.


                                       12
<PAGE>

Item 3. - Controls and Procedures

Based  on  the  evaluation  required  by  17  C.F.R.  Section  240.13a-15(b)  or
240.15d-15(b) of the Company's disclosure controls and procedures (as defined in
17  C.F.R.  Sections  240.13a-15(e)  and  240.15d-15(e)),  the  Company's  chief
executive  officer and chief  financial  officer  concluded  such  controls  and
procedures, as of the end of the period covered by this report, were effective.

There  has been no change  in the  Company's  internal  control  over  financial
reporting during the most recent fiscal quarter that has materially affected, or
is reasonably likely to materially  affect,  the Company's internal control over
financial reporting.


                           PART II - OTHER INFORMATION

Item 6. - Exhibits

(a) Exhibits            31. Rule 13a-14(a)/15d-14(a) Certifications

                        32. Certifications  Pursuant  to 18 U.S.C. Section 1350




                                       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

November 10, 2005                 /s/ Frederick D. Shepherd, Jr.
-----------------                 -------------------------------------------
     Date                         Frederick D. Shepherd, Jr., Chief
                                  Executive Officer and Chief Financial Officer



                                       14
<PAGE>


                                  EXHIBIT INDEX


          31. Rule 13a-14(a)/15d-14(a) Certifications

          32.  Certifications  Pursuant  to 18  U.S.C. Section 1350



                                       15