UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

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

    For Quarterly Period Ended March 31, 2006 Commission File No. 000-29640


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


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


                             449 HIGHWAY 123 BYPASS
                          SENECA, SOUTH CAROLINA 29678
--------------------------------------------------------------------------------
               (Address of principal executive offices, zip code)


                                 (864) 886-0206
--------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)

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

         Yes [ X ]  No [ ]

         Indicate by check mark whether the  registrant  is a large  accelerated
filer,  an accelerated  filer,  or a  non-accelerated  filer.  See definition of
"accelerated  filer and large  accelerated  filer" in Rule 12b-2 of the Exchange
Act. (Check one):

   Large accelerated filer [ ]  Accelerated filer [ ]  Non-accelerated filer [X]

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

         Yes [  ]  No [X]

         Indicate  the  number of  shares  outstanding  of each of the  issuer's
classes of common stock, as of the latest practicable date: Common Stock, no par
or stated value, 2,798,409 Shares Outstanding on April 30, 2006



<PAGE>


                         COMMUNITY FIRST BANCORPORATION

                                    FORM 10-Q

                                      Index

                                                                            Page
PART I -  FINANCIAL INFORMATION

Item 1.   Financial Statements

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

Item 2.   Management's Discussion and Analysis
            of Financial Condition and Results of Operations ..............    8
Item 3.   Quantitative and Qualitative Disclosures About Market Risk ......   14
Item 4.   Controls and Procedures .........................................   14

PART II - OTHER INFORMATION

Item 6.   Exhibits ........................................................   15

SIGNATURE .................................................................   16




                                       2
<PAGE>


                         PART I - FINANCIAL INFORMATION

Item 1. - Financial Statements

COMMUNITY FIRST BANCORPORATION
Consolidated Balance Sheets
<TABLE>
<CAPTION>
                                                                                                       (Unaudited)
                                                                                                         March 31,      December 31,
                                                                                                           2006              2005
                                                                                                           -----             ----
                                                                                                        (Dollars in thousands)
Assets
<S>                                                                                                     <C>               <C>
     Cash and due from banks ...................................................................        $   9,226         $  10,063
     Interest bearing deposits due from banks ..................................................              132               182
     Federal funds sold ........................................................................           34,193            22,205
                                                                                                        ---------         ---------
         Cash and cash equivalents .............................................................           43,551            32,450
     Securities available-for-sale .............................................................          104,274           102,070
     Securities held-to-maturity (fair value $7,353 for 2006 and $7,671 for 2005) ..............            7,475             7,751
     Other investments .........................................................................              948               948
     Loans .....................................................................................          171,415           169,318
         Allowance for loan losses .............................................................           (2,272)           (2,266)
                                                                                                        ---------         ---------
            Loans - net ........................................................................          169,143           167,052
     Premises and equipment - net ..............................................................            7,101             6,805
     Accrued interest receivable ...............................................................            1,731             1,629
     Other assets ..............................................................................            1,937             2,007
                                                                                                        ---------         ---------

            Total assets .......................................................................        $ 336,160         $ 320,712
                                                                                                        =========         =========

Liabilities
     Deposits
         Noninterest bearing ...................................................................        $  38,724         $  38,061
         Interest bearing ......................................................................          258,601           241,932
                                                                                                        ---------         ---------
            Total deposits .....................................................................          297,325           279,993
     Accrued interest payable ..................................................................            2,156             1,817
     Short-term borrowings .....................................................................                -             3,500
     Long-term debt ............................................................................            6,500             6,500
     Other liabilities .........................................................................              522                47
                                                                                                        ---------         ---------
            Total liabilities ..................................................................          306,503           291,857
                                                                                                        ---------         ---------

Shareholders' equity
     Common stock - no par value; 10,000,000 shares authorized; issued and
         outstanding - 2,798,409 for 2006 and 2,798,409 for 2005 ...............................           26,956            26,956
     Additional paid-in capital ................................................................               45                 -
     Retained earnings .........................................................................            4,207             3,296
     Accumulated other comprehensive income (loss) .............................................           (1,551)           (1,397)
                                                                                                        ---------         ---------
            Total shareholders' equity .........................................................           29,657            28,855
                                                                                                        ---------         ---------

            Total liabilities and shareholders' equity .........................................        $ 336,160         $ 320,712
                                                                                                        =========         =========
</TABLE>

See accompanying notes to unaudited consolidated financial statements.


                                       3
<PAGE>


COMMUNITY FIRST BANCORPORATION
Consolidated Statements of Income
                                                                 (Unaudited)
                                                             Three Months Ended
                                                                  March 31,
                                                              2006         2005
                                                              ----         ----
                                                          (Dollars in thousands,
                                                             except per share)
Interest income
     Loans, including fees .............................    $3,090      $2,726
     Interest bearing balances due from banks ..........         2           -
     Securities
       Taxable .........................................       931         943
       Tax-exempt ......................................       120          20
     Other investments .................................        11           9
     Federal funds sold ................................       493         153
                                                            ------      ------
         Total interest income .........................     4,647       3,851
                                                            ------      ------

Interest expense
     Time deposits $100M and over ......................       732         450
     Other deposits ....................................     1,534         927
     Short-term borrowings .............................         2          12
     Long-term debt ....................................        62          70
                                                            ------      ------
         Total interest expense ........................     2,330       1,459
                                                            ------      ------

Net interest income ....................................     2,317       2,392
Provision for loan losses ..............................        25         140
                                                            ------      ------
Net interest income after provision ....................     2,292       2,252
                                                            ------      ------

Other income
     Service charges on deposit accounts ...............       364         351
     Credit-related deposit fees .......................        70          52
     Credit life insurance commissions .................        10          11
     Other income ......................................        95          73
                                                            ------      ------
         Total other income ............................       539         487
                                                            ------      ------

Other expenses
     Salaries and employee benefits ....................       729         711
     Net occupancy expense .............................        69          64
     Furniture and equipment expense ...................       104          88
     Amortization of computer software .................        60          58
     ATM interchange and related expenses ..............        78          46
     Other expense .....................................       396         356
                                                            ------      ------
         Total other expenses ..........................     1,436       1,323
                                                            ------      ------

Income before income taxes .............................     1,395       1,416
Income tax expense .....................................       484         507
                                                            ------      ------
Net income .............................................    $  911      $  909
                                                            ======      ======

Per share*
     Net income ........................................    $ 0.33      $ 0.33
     Net income, assuming dilution .....................      0.31        0.31
------
* Per share  information has been  retroactively  adjusted to reflect a 5% stock
dividend effective November 30, 2005.

See accompanying notes to unaudited consolidated financial statements.


                                       4
<PAGE>

COMMUNITY FIRST BANCORPORATION
Consolidated Statements of Changes in Shareholders' Equity

<TABLE>
<CAPTION>
                                                                 (Unaudited)

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

<S>                                                    <C>          <C>          <C>          <C>          <C>           <C>
Balance, January 1, 2005 ..........................    2,648,230    $   24,216   $        -   $    2,220   $     (499)   $   25,937
                                                                                                                         ----------
Comprehensive income:
    Net income ....................................            -             -            -          909            -           909
                                                                                                                         ----------
    Unrealized holding gains and losses
    on available-for-sale securities
    arising during the period, net of
    income taxes of $393 ..........................            -             -            -            -         (701)         (701)
                                                                                                                         ----------
        Total other comprehensive income ..........                                                                            (701)
                                                                                                                         ----------
            Total comprehensive income ............                                                                             208
                                                                                                                         ----------
Exercise of employee stock options ................           75             -            -            -            -             -
                                                      ----------    ----------   ----------   ----------   ----------    ----------
Balance, March 31, 2005 ...........................    2,648,305    $   24,216   $        -   $    3,129   $   (1,200)   $   26,145
                                                      ==========    ==========   ==========   ==========   ==========    ==========



Balance, January 1, 2006 ..........................    2,798,409    $   26,956   $        -   $    3,296   $   (1,397)   $   28,855
                                                                                                                         ----------
Comprehensive income:
    Net income ....................................            -             -            -          911            -           911
                                                                                                                         ----------
    Unrealized holding gains and losses
    on available-for-sale securities
    arising during the period, net of
    income taxes of $87 ...........................            -             -            -            -         (154)         (154)
                                                                                                                         ----------
        Total other comprehensive income ..........                                                                            (154)
                                                                                                                         ----------
            Total comprehensive income ............                                                                             757
                                                                                                                         ----------
Share-based compensation ..........................            -             -           45            -            -            45
                                                      ----------    ----------   ----------   ----------   ----------    ----------
Balance, March 31, 2006 ...........................    2,798,409    $   26,956   $       45   $    4,207   $   (1,551)   $   29,657
                                                      ==========    ==========   ==========   ==========   ==========    ==========
</TABLE>














See accompanying notes to unaudited consolidated financial statements.


                                       5
<PAGE>

COMMUNITY FIRST BANCORPORATION
Consolidated Statements of Cash Flows
<TABLE>
<CAPTION>
                                                                                                                (Unaudited)
                                                                                                             Three Months Ended
                                                                                                                  March 31,
                                                                                                          2006               2005
                                                                                                          ----               ----
                                                                                                            (Dollars in thousands)
Operating activities
<S>                                                                                                    <C>                 <C>
     Net income ............................................................................           $    911            $    909
     Adjustments to reconcile net income to net
         cash provided by operating activities
            Provision for loan losses ......................................................                 25                 140
            Depreciation ...................................................................                 76                  74
            Amortization of net loan fees and costs ........................................                (30)                (19)
            Securities accretion and premium amortization ..................................                 46                   8
            Gain on sale of foreclosed assets ..............................................                (31)                  -
            Increase in interest receivable ................................................               (102)                (90)
            Increase in interest payable ...................................................                339                 214
            Decrease in prepaid expenses and other assets ..................................                 20                  57
            Increase in other accrued expenses .............................................                475                 557
            Share-based compensation .......................................................                 45                   -
                                                                                                       --------            --------
                Net cash provided by operating activities ..................................              1,774               1,850
                                                                                                       --------            --------

Investing activities
     Purchases of available-for-sale securities ............................................            (10,259)            (33,678)
     Maturities, calls and paydowns of securities available-for-sale .......................              7,767              22,428
     Maturities, calls and paydowns of securities held-to-maturity .........................                277                 372
     Purchases of other investments ........................................................                  -                 (50)
     Net increase in loans made to customers ...............................................             (2,086)             (2,701)
     Purchases of premises and equipment ...................................................               (372)                (75)
     Proceeds of sale of foreclosed assets .................................................                168                   -
                                                                                                       --------            --------
                Net cash used by investing activities ......................................             (4,505)            (13,704)
                                                                                                       --------            --------

Financing activities
     Net increase in demand deposits, interest
         bearing transaction accounts and savings accounts .................................             11,997               5,548
     Net increase (decrease) in certificates of deposit and other
         time deposits .....................................................................              5,335              (3,019)
     Decrease in short-term borrowings .....................................................             (3,500)               (500)
     Repayments of long-term debt ..........................................................                  -              (1,000)
                                                                                                       --------            --------
                Net cash provided by financing activities ..................................             13,832               1,029
                                                                                                       --------            --------
Increase (decrease) in cash and cash equivalents ...........................................             11,101             (10,825)
Cash and cash equivalents, beginning .......................................................             32,450              39,902
                                                                                                       --------            --------
Cash and cash equivalents, ending ..........................................................           $ 43,551            $ 29,077
                                                                                                       ========            ========

Supplemental Disclosure of Cash Flow Information
     Cash paid during the period for
         Interest, net of $15 capitalized during construction ..............................           $  1,991            $  1,245
         Income taxes ......................................................................                  -                   3
     Noncash investing and financing activities:
         Other comprehensive income (loss) .................................................               (154)               (701)
</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 on Form 10-K
for the year ended  December  31, 2005 filed with the  Securities  and  Exchange
Commission.   Certain  amounts  in  the  2005  financial  statements  have  been
reclassified to conform to the current presentation.

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 March 31, 2006,  there were  $579,000 in 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.  All 2005 per share
information  has  been  retroactively  adjusted  to give  effect  to a 5%  stock
dividend  effective  November 30, 2005.  Net income per share and net income per
share, assuming dilution, were computed as follows:


<TABLE>
<CAPTION>
                                                                                                             (Unaudited)
                                                                                                          Three Months Ended
                                                                                                               March 31,
                                                                                                      2006                  2005
                                                                                                      ----                  ----
                                                                                                      (Dollars in thousands,
                                                                                                     except per share amounts)
Net income per share, basic
<S>                                                                                               <C>                     <C>
  Numerator - net income ...........................................................              $      911              $      909
                                                                                                  ==========              ==========
  Denominator
    Weighted average common shares issued and outstanding ..........................               2,798,409               2,780,845
                                                                                                  ==========              ==========
               Net income per share, basic .........................................              $      .33              $      .33
                                                                                                  ==========              ==========

Net income per share, assuming dilution
  Numerator - net income ...........................................................              $      911              $      909
                                                                                                  ==========              ==========
  Denominator
    Weighted average common shares issued and outstanding ..........................               2,798,409               2,780,845
    Effect of dilutive stock options ...............................................                 177,499                 148,984
                                                                                                  ----------              ----------
               Total shares ........................................................               2,975,908               2,929,829
                                                                                                  ==========              ==========
               Net income per share, assuming dilution .............................              $      .31              $      .31
                                                                                                  ==========              ==========
</TABLE>

Stock-Based Compensation - As of March 31, 2006, the Company has two stock-based
compensation plans.  Effective January 1, 2006, the Company began accounting for
compensation  expenses  related  to  stock  options  granted  to  employees  and
non-officer  directors  under the  recognition  and  measurement  principles  of
Statement of Financial Accounting Standards No. 123 (revised 2004), "Share-Based
Payment"("SFAS 123(R)) using the modified prospective application method.


                                       7
<PAGE>

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

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.

Changes in Financial Condition

         During  the first  three  months  of 2006,  interest  bearing  deposits
increased  by  $16,669,000,  or 6.9%.  These funds were used  primarily to repay
short-term  borrowings  of  $3,500,000  and to fund  growth in loans and federal
funds sold and to purchase  securities.  During the 2006 period, loans increased
by $2,097,000 or 1.2% and federal funds sold  increased by $11,988,000 or 54.0%.
The Company  believes its higher  federal funds sold position gives it increased
flexibility  to  fund  loan  requests  or  make  investments  in  securities  at
attractive  yields,  and to meet normal  demands for deposit  withdrawals by its
customers,  all while  maintaining its exposure to further increases in interest
rates at an acceptable level.

Results of Operations

         The Company  recorded  consolidated  net income of $911,000 or $.33 per
share for the first quarter of 2006. These results are substantially the same as
for the first quarter of 2005. Net income per share,  assuming dilution was $.31
for both the 2006 and the 2005  periods.  Net income per share  amounts for 2005
have been  retroactively  adjusted  to  reflect a five  percent  stock  dividend
effective November 30, 2005.


<TABLE>
<CAPTION>
                                                                               Summary Income Statement
                                                           -------------------------------------------------------------------
                                                                               (Dollars in thousands)
                                                                                                   Dollar           Percentage
For the Three Months Ended March 31,                        2006                2005               Change              Change
                                                            ----                ----               ------              ------
<S>                                                        <C>                 <C>                 <C>                  <C>
Interest income ....................................       $4,647              $3,851              $  796               20.7%
Interest expense ...................................        2,330               1,459                 871               59.7%
                                                           ------              ------               ----
Net interest income ................................        2,317               2,392                 (75)              -3.1%
Provision for loan losses ..........................           25                 140                (115)             -82.1%
Noninterest income .................................          539                 487                  52               10.7%
Noninterest expenses ...............................        1,436               1,323                 113                8.5%
Income tax expense .................................          484                 507                 (23)              -4.5%
                                                           ------              ------               -----
Net income .........................................       $  911              $  909              $    2                0.2%
                                                           ======              ======               =====
</TABLE>

Net Interest Income

         Net interest income is the principal source of the Company's  earnings.
For the first  quarter  of 2006,  net  interest  income  totaled  $2,317,000,  a
decrease  of $75,000 or 3.1% from the  amount for the same  period of 2005.  The
yield  on  interest  earning  assets  increased  to 5.69%  for the 2006  period,
compared  with 5.11% for the 2005 period and the average rates paid for interest
bearing liabilities were 3.42% and 2.34%, respectively. Accordingly, the average
interest  rate spread for the 2006 period was 50 basis points lower than for the
2005 period.


                                       8
<PAGE>

         Market  interest rates during the 2006 period were slightly higher than
in the first quarter of 2005. The Federal Reserve Board began slowly  increasing
certain key interest rates in 2004, and has continued to do so. These  increases
have  resulted,  however,  primarily in  increased  rates for  instruments  with
shorter-term  maturities.  Rates  associated  with  instruments  with maturities
longer than about five years had been largely  unaffected  until recently.  As a
result,  interest rates paid by banks for deposits and other short-term  funding
sources,  and the  rates  earned on loans and  other  interest  earning  assets,
increased during those same periods.  In the 2006 period,  the rates paid by the
Company  increased more than the rates that it received from its loans and other
invested funds.  The following table provides an analysis of the average amounts
of the Company's  assets and liabilities  and the effective  yields and rates on
the various  categories  of its interest  earning  assets and  interest  bearing
liabilities for the first quarter of 2006 and 2005.


                                       9
<PAGE>


<TABLE>
<CAPTION>
                                                                                Average Balances, Yields and Rates
                                                                                  Three Months Ended March 31,
                                                                                  ----------------------------
                                                                          2006                                     2005
                                                                          ----                                     ----
                                                                       Interest                                Interest
                                                           Average      Income/     Yields/         Average      Income/    Yields/
                                                           Balances     Expense      Rates (1)      Balances     Expense   Rates (1)
                                                           --------     -------      ---------      --------     -------   ---------
                                                                                      (Dollars in thousands)
Assets
<S>                                                      <C>           <C>           <C>          <C>           <C>           <C>
Interest-bearing deposits due from banks ............    $     172     $     2       4.72%        $      81     $     -       0.00%
Securities
     Taxable ........................................      101,412         931       3.72%          116,992         943       3.27%
     Tax exempt (2) .................................       12,242         120       3.98%            2,322          20       3.49%
                                                         ---------     -------                    ---------     -------
         Total investment securities ................      113,654       1,051       3.75%          119,314         963       3.27%
Other investments ...................................          948          11       4.71%            1,013           9       3.60%
Federal funds sold ..................................       45,260         493       4.42%           26,429         153       2.35%
Loans (2) ...........................................      170,931       3,090       7.33%          158,810       2,726       6.96%
                                                         ---------     -------                    ---------     -------
         Total interest earning assets ..............      330,965       4,647       5.69%          305,647       3,851       5.11%
Cash and due from banks .............................        6,817                                    4,620
Allowance for loan losses ...........................       (2,264)                                  (2,280)
Valuation allowance - AFS securities ................       (2,224)                                  (1,049)
Premises and equipment ..............................        7,022                                    4,411
Other assets ........................................        3,878                                    3,098
                                                         ---------                                ---------
         Total assets ...............................    $ 344,194                                $ 314,447
                                                         =========                                =========

Liabilities and shareholders' equity
Interest bearing deposits
     Interest bearing transaction accounts ..........    $  35,743     $   141       1.60%        $  35,962     $    70       0.79%
     Savings ........................................       44,214         314       2.88%           38,042         114       1.22%
     Time deposits $100M and over ...................       76,493         732       3.88%           64,880         450       2.81%
     Other time deposits ............................      112,943       1,079       3.87%          104,780         743       2.88%
                                                         ---------     -------                    ---------     -------
         Total interest bearing
           deposits .................................      269,393       2,266       3.41%          243,664       1,377       2.29%
Short-term borrowings ...............................           78           2      10.40%            2,017          12       2.41%
Long-term debt ......................................        6,500          62       3.87%            7,500          70       3.79%
                                                         ---------     -------                    ---------     -------
         Total interest bearing
           liabilities ..............................      275,971       2,330       3.42%          253,181       1,459       2.34%
Noninterest bearing demand deposits .................       36,406                                   33,435
Other liabilities ...................................        2,503                                    1,567
Shareholders' equity ................................       29,314                                   26,264
                                                         ---------                                ---------
Total liabilities and shareholders' equity ..........    $ 344,194                                $ 314,447
                                                         =========                                =========
Interest rate spread ................................                                2.27%                                    2.77%
Net interest income and net yield
     on earning assets ..............................                  $ 2,317       2.84%                      $ 2,392       3.17%
Interest free funds supporting earning
     assets .........................................   $  54,994                                 $  52,466
</TABLE>
-----------------------------------------
(1) Yields and rates are annualized
(2) Yields on tax exempt  instruments have not been adjusted to a tax-equivalent
    basis.

         When  interest  rates  rise  sufficiently,  depositors  often  seek  to
maximize the present and future earning potential of their funds by moving their
funds  into  longer-term  fixed rate time  deposits.  Accordingly,  the  average
amounts  of, and rates paid for,  time  deposits  increased  in the 2006  period
compared  with the 2005  period.  The Company  can reduce the  effects  that the
higher rates paid for those  longer-term  deposits  have on net interest  income
without  becoming  subject  to an  inordinate  level of  interest  rate  risk by
increasing  the  relative  amounts  of  funds  invested  in the  higher-yielding


                                       10
<PAGE>

categories of earning assets,  principally  loans, and adhering to its policy of
not lending funds at fixed rates for periods longer than five years. The average
amounts of loans held by the  Company in the 2006 and 2005 first  quarters  were
$170,931,000 and $158,810,000, respectively.

         In addition,  because the interest rate increases  since 2004 have been
most  pronounced in the  shortest-maturity  instruments,  the rate earned by the
Company for investments in overnight federal funds sold increased  significantly
in 2006.  The rate  earned for  federal  funds sold was 4.42% in the 2006 period
compared  with 2.35% for the 2005 period.  The average  amounts of the Company's
investments  in those  instruments  totaled  $45,260,000  for 2006 compared with
$26,429,000 in the 2005 quarter.

         Throughout 2005, the Company added to its holdings of tax-exempt state,
county  and  municipal   securities   significantly  and  the  yields  on  those
investments  increased,  as well. As a result,  the Company's 2006 first quarter
income includes $120,000 earned on those  investments,  compared with $20,000 in
the same period of 2005.

         The Company continues to pursue a strategy to increase its market share
in its local  market areas in Anderson  and Oconee  Counties of South  Carolina.
Oconee County is served from four offices which are located in Seneca,  Walhalla
and  Westminster.  The Company  currently  is using a temporary  facility at the
Westminster location.  There presently are no firm plans,  timetables or budgets
for  constructing  a permanent  facility  for this office.  The Anderson  County
market is served  from  offices in  Anderson  and  Williamston.  The  Company is
planning to open an additional office on Highway 81 in Anderson County.

Provision and Allowance for Loan Losses

         The provision for loan losses was $25,000 for the first three months of
2006,  compared  with $140,000 for the  comparable  period of 2005. At March 31,
2006, the allowance for loan losses was 1.33% of loans, down slightly from 1.34%
at December  31,  2005.  During the 2006 three  month  period,  net  charge-offs
totaled $19,000, compared with $34,000 in net charge offs during the same period
of 2005. As of March 31, 2006,  there were  $579,000 in nonaccrual  loans and no
loans 90 days or more  past due and  still  accruing  interest.  As of March 31,
2005,  there were  $1,177,000 in  nonaccrual  loans and no loans 90 days or more
past due and still  accruing  interest.  The activity in the  allowance for loan
losses is summarized in the table below:


<TABLE>
<CAPTION>
                                                                            Three Months                                Three Months
                                                                               Ended              Year Ended                Ended
                                                                              March 31,           December 31,            March 31,
                                                                               2006                  2005                   2005
                                                                               ----                  ----                   ----

                                                                                           (Dollars in thousands)
<S>                                                                          <C>                   <C>                   <C>
Allowance at beginning of period .................................           $   2,266             $   2,240             $   2,240
Provision for loan losses ........................................                  25                   250                   140
Net charge-offs ..................................................                 (19)                 (224)                  (34)
                                                                             ---------             ---------             ---------
Allowance at end of period .......................................           $   2,272             $   2,266             $   2,346
                                                                             =========             =========             =========
Allowance as a percentage of loans outstanding
at period end ....................................................                1.33%                 1.34%                 1.46%
Loans at end of period ...........................................           $ 171,415             $ 169,318             $ 160,461
                                                                             =========             =========             =========
</TABLE>



                                       11
<PAGE>


Non-Performing and Potential Problem Loans


<TABLE>
<CAPTION>

                                                         90 Days or
                                                        More Past Due      Total          Percentage                      Percentage
                                         Nonaccrual       and Still    Nonperforming        of Total      Potential         of Total
                                            Loans         Accruing         Loans              Loans     Problem Loans         Loans
                                            -----         --------         -----              -----     -------------         -----
                                                                            (Dollars in thousands)

<S>                                       <C>             <C>             <C>                  <C>        <C>                 <C>
January 1, 2005 ..................        $ 1,465         $     9         $ 1,474              0.93%      $ 1,403             0.89%
Net change .......................           (288)             (9)           (297)                         1,133
                                          -------         -------         -------                         -------
March 31, 2005 ...................          1,177               -           1,177              0.73%        2,536             1.58%
Net change .......................            (19)              -             (19)                           915
                                          -------         -------         -------                         -------
June 30, 2005 ....................          1,158               -           1,158              0.70%        3,451             2.08%
Net change .......................           (189)              -            (189)                           (578)
                                          -------         -------         -------                         -------
September 30, 2005 ...............            969               -             969              0.58%        2,873             1.71%
Net change .......................            (69)              5             (64)                           (725)
                                          -------         -------         -------                         -------
December 31, 2005 ................            900               5             905              0.53%        2,148             1.27%
Net change .......................           (321)             (5)           (326)                            615
                                          -------         -------         -------                         -------
March 31, 2006 ...................        $   579         $     -         $   579              0.34%      $ 2,763             1.61%
                                          =======         =======         =======                         =======
</TABLE>

         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.  Since December 31, 2005,  loans  totaling  $878,000 have been
classified as potential  problem loans, of which $712,000 are  collateralized by
real estate  mortgages.  $31,000  classified  as potential  problem  loans as of
December 31, 2005 were  classified as nonaccrual  loans during the first quarter
of 2006. Other potential problem loans totaling $206,000 as of December 31, 2005
were no longer  included in  non-performing  and  potential  problem loans as of
March 31, 2006. Of that amount,  $19,000 was charged off. Payments on loans that
were included in potential problem loans at both December 31, 2005 and March 31,
2006  totaled  $26,000  during the 2006  period.  Management  believes  that the
increase  in  potential  problem  loans  in the  first  quarter  of  2006 is not
indicative of a trend in local economic conditions,  but reflects  circumstances
unique to each individual borrower.

Noninterest Income

         Noninterest  income  totaled  $539,000  for the first  quarter of 2006,
compared with $487,000 for the 2005 quarter. Service charges on deposit accounts
in the 2006 period were  $364,000  representing  an increase of $13,000 over the
prior year period and fees from an overdraft privilege product were $18,000 more
in the 2006 period than in the 2005 period.  Mortgage  brokerage  income in 2006
was  approximately  $7,000 less than in the 2005 period.  There were no sales of
any  securities  in either the 2006 or 2005  period.  A gain of $31,000 from the
sale of  foreclosed  assets  was  recognized  in the 2006  period.  There was no
comparable activity in the 2005 period.

Noninterest Expenses

         Noninterest  expenses totaled  $1,436,000 for the first quarter of 2006
compared with $1,323,000 for the first quarter of 2005, representing an increase
of $113,000 or 8.5%.  Salaries and employee  benefits  increased by $18,000,  or
2.5%,  to  $729,000.   This  increase  resulted  primarily  from  normal  salary
increases,  increases in the number of employees  associated  with the Company's
growth, and higher costs of providing health insurance benefits. Also, for 2006,
this  category  includes  $20,000  of  share-based  compensation  expenses  that
resulted from the adoption of SFAS 123(R).  Partially offsetting these increases
was an $85,000 decrease in estimated employee incentive bonuses in 2006 compared
with 2005.

         Occupancy and furniture  and equipment  expenses for 2006  increased by
$21,000  compared  with  2005  primarily  due  to  higher  maintenance  expenses
associated with the Company's equipment. Other expenses for the 2006 period were
$74,000  greater  than in 2005 due to an increase of $32,000 in expenses for ATM
interchange  fees and  related  expenses,  an  increase  of $30,000 in other ATM
related  expenses,  and an  increase  of $32,000 in  directors  fees,  including


                                       12
<PAGE>

$25,000 of share-based  compensation expenses for non-employee  directors' stock
options that  resulted  from the adoption of SFAS  123(R).  In addition,  higher
expenses  were noted in 2006 for  stationery  and  supplies  resulting  from the
opening of the new  executive  offices and an  additional  banking  office,  and
contributions and donations. Some expense decreases were experienced in 2006 for
FDIC insurance and expenses related to foreclosed assets.

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.  The Company has significant  amounts of
credit  availability  under its FHLB lines of credit and federal funds purchased
facilities.

         As of March 31, 2006,  the ratio of loans to total  deposits was 57.7%,
compared with 60.5% as of December 31, 2005.  Deposits as of March 31, 2006 were
$297,325,000,  an increase of $17,332,000 or 6.2% over the amount as of December
31, 2005.  Management believes that the Company's liquidity sources are adequate
to meet its operating needs.

Capital Resources

         The Company's  capital base  increased by $802,000  since  December 31,
2005 as the result of net income of $911,000 for the first three months of 2006,
$45,000 added pursuant to share-based  compensation  expenses  recognized during
the  period,   less  a  $154,000  change  in  unrealized  gains  and  losses  on
available-for-sale securities, net of deferred income tax effects.

         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 March 31,  2006 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 .................     15.4%     16.5%     9.0%
Community First Bank ...........................     14.9%     16.0%     8.7%
Minimum "well-capitalized" requirement .........      6.0%     10.0%     6.0%
Minimum requirement ............................      4.0%      8.0%     5.0%

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.

                                       13
<PAGE>

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

                                                                  March 31, 2006
                                                                  --------------
                                                                   (Dollars in
                                                                    thousands)
Loan commitments ..........................................          $26,559
Standby letters of credit .................................              974

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. Many letters of credit will expire without being drawn
upon  and do not  necessarily  represent  future  cash  requirements.  The  Bank
receives fees for loan commitments and standby letters of credit.  The amount of
such fees was not material for the three months ended March 31, 2006.

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 is  involved  in  other  off-balance  sheet
contractual  relationships or transactions  that could result in liquidity needs
or other commitments or significantly impact earnings.

Item 3.  - Quantitative and Qualitative Disclosures About Market Risk

The Company's  exposure to market risk is primarily  related to the risk of loss
from adverse  changes in market prices and rates.  This risk arises  principally
from interest rate risk inherent in the Company's lending, deposit gathering and
borrowing activities. Management actively monitors and manages its interest rate
risk exposure.  Although the Company manages other risks, such as credit quality
and  liquidity  risk in the  normal  course of  business,  management  considers
interest  rate risk to be its most  significant  market risk and this risk could
potentially  have  the  largest  material  effect  on  the  Company's  financial
condition  and  results  of  operations.  Other  types of market  risk,  such as
commodity  price risk and foreign  currency  exchange  risk, do not arise in the
normal course of the Company's community banking operations.

The Company uses a simulation model to assist in achieving  consistent growth in
net interest income while managing interest rate risk. As of March 31, 2006, the
model indicates that net interest  income would increase  $67,000 and net income
would  increase  $41,000 in the next twelve months if interest rates rose by 100
basis points.  Conversely,  net interest  income would decrease  $67,000 and net
income  would  decrease  $41,000 in the next  twelve  months if  interest  rates
declined by 100 basis  points.  In the current  interest  rate  environment,  it
appears  unlikely that there will be any large changes in interest  rates in the
immediate future. The prospective effects of hypothetical  interest rate changes
are based on a number of  assumptions,  including the relative  levels of market
interest rates and prepayment  assumptions  affecting  loans,  and should not be
relied on as indicative of actual future results.  The prospective  effects also
do not  contemplate  potential  actions that the Company,  its customers and the
issuers of its investment  securities  could undertake in response to changes in
interest rates.

As of March 31, 2006,  there was no  significant  change from the interest  rate
sensitivity  analysis for the various changes in interest rates calculated as of
December 31, 2005.  The foregoing  disclosures  related to the Company's  market
risk should be read in conjunction with Management's  Discussion and Analysis of
Financial Condition and Results of Operations included in the 2005 Annual Report
on Form 10-K filed with the Securities and Exchange Commission.

Item 4. - 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 issuer's  disclosure controls and procedures (as defined in
17  C.F.R.  Sections  240.13a-15(e)  and  240.15d-15(e)),   the  issuer'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.

                                       14
<PAGE>

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

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

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





                                       15
<PAGE>

SIGNATURE

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


                                    COMMUNITY FIRST BANCORPORATION

May 12, 2006                        /s/ Frederick D. Shepherd, Jr.
-----------------                   --------------------------------------------
    Date                            Frederick D. Shepherd, Jr., Chief Executive
                                    Officer and Chief Financial Officer



                                       16
<PAGE>


                                  Exhibit Index


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

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







                                       17