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, 2002      Commission File No. 000-29640


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


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


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


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

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

         Yes  [X]   No [ ]

         State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practicable date: Common Stock, no par or
stated value, 2,125,814 Shares Outstanding on October 31, 2002.

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


<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 and Reports on Form 8-K ..........................    13

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

CERTIFICATION ...........................................................    15



                                       2
<PAGE>


                         PART I - FINANCIAL INFORMATION

Item 1. - Financial Statements

COMMUNITY FIRST BANCORPORATION
Consolidated Balance Sheet
<TABLE>
<CAPTION>
                                                                                                      (Unaudited)
                                                                                                      September 30,     December 31,
                                                                                                          2002              2001
                                                                                                          ----              ----
                                                                                                          (Dollars in thousands)
Assets
<S>                                                                                                    <C>                <C>
     Cash and due from banks .................................................................         $   4,115          $   6,063
     Interest bearing deposits due from banks ................................................                25                 27
     Federal funds sold ......................................................................             8,543              9,240
     Securities available-for-sale ...........................................................            65,900             71,339
     Other investments .......................................................................               554                480
     Loans held for sale .....................................................................               200                  -
     Loans ...................................................................................           135,904            119,744
         Allowance for loan losses ...........................................................            (1,813)            (1,200)
                                                                                                       ---------          ---------
            Loans - net ......................................................................           134,291            118,544
     Premises and equipment - net ............................................................             3,371              3,232
     Accrued interest receivable .............................................................             1,422              1,467
     Other assets ............................................................................             1,461              1,506
                                                                                                       ---------          ---------

            Total assets .....................................................................         $ 219,682          $ 211,898
                                                                                                       =========          =========

Liabilities
     Deposits
         Noninterest bearing .................................................................         $  24,880          $  25,449
         Interest bearing ....................................................................           174,444            168,071
                                                                                                       ---------          ---------
            Total deposits ...................................................................           199,324            193,520
     Accrued interest payable ................................................................               979              1,307
     Other liabilities .......................................................................                41                 55
                                                                                                       ---------          ---------
            Total liabilities ................................................................           200,344            194,882
                                                                                                       ---------          ---------

Shareholders' equity
     Common stock - no par value; 10,000,000 shares authorized; issued and
         outstanding - 2,122,021 for 2002 and
         2,117,085 for 2001 ..................................................................            15,753             15,734
     Retained earnings .......................................................................             3,191              1,120
     Accumulated other comprehensive income ..................................................               394                162
                                                                                                       ---------          ---------
            Total shareholders' equity .......................................................            19,338             17,016
                                                                                                       ---------          ---------

            Total liabilities and shareholders' equity .......................................         $ 219,682          $ 211,898
                                                                                                       =========          =========
</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
                                                                                  ------------                    -----------
                                                                               2002           2001           2002            2001
                                                                               ----           ----           ----            ----
                                                                                      (Dollars in thousands, except per share)

Interest income
<S>                                                                         <C>             <C>             <C>              <C>
     Loans, including fees ........................................         $ 2,496         $ 2,268         $ 7,093          $ 6,739
     Securities
       Taxable ....................................................             597             905           2,015            2,781
       Tax-exempt .................................................               2               2               7                7
     Other investments ............................................               8               8              15               23
     Federal funds sold ...........................................              85             322             324            1,187
                                                                            -------         -------         -------          -------
         Total interest income ....................................           3,188           3,505           9,454           10,737
                                                                            -------         -------         -------          -------

Interest expense
     Time deposits $100M and over .................................             400             682           1,148            2,117
     Other deposits ...............................................             744           1,333           2,370            4,499
                                                                            -------         -------         -------          -------
         Total interest expense ...................................           1,144           2,015           3,518            6,616
                                                                            -------         -------         -------          -------

Net interest income ...............................................           2,044           1,490           5,936            4,121
Provision for loan losses .........................................             270             135             930              310
                                                                            -------         -------         -------          -------
Net interest income after provision ...............................           1,774           1,355           5,006            3,811
                                                                            -------         -------         -------          -------

Other income
     Service charges on deposit accounts ..........................             249             204             649              579
     Credit life insurance commissions ............................               7               9              30               27
     Loss on sale of available-for-sale security ..................               -               -              (2)               -
     Other income .................................................              68              45             168              138
                                                                            -------         -------         -------          -------
         Total other income .......................................             324             258             845              744
                                                                            -------         -------         -------          -------

Other expenses
     Salaries and employee benefits ...............................             526             453           1,458            1,295
     Net occupancy expense ........................................              46              43             142              142
     Furniture and equipment expense ..............................              71              48             203              183
     Other expense ................................................             293             276             823              767
                                                                            -------         -------         -------          -------
         Total other expenses .....................................             936             820           2,626            2,387
                                                                            -------         -------         -------          -------

Income before income taxes ........................................           1,162             793           3,225            2,168
Income tax expense ................................................             418             279           1,154              752
                                                                            -------         -------         -------          -------
Net income ........................................................         $   744         $   514         $ 2,071          $ 1,416
                                                                            =======         =======         =======          =======

Per share*
     Net income ...................................................         $  0.35         $  0.24         $  0.98          $  0.67
     Net income, assuming dilution ................................            0.33            0.23            0.93             0.63
</TABLE>

------------------
* Per share  information has been  retroactively  adjusted to reflect a 5% stock
dividend effective December 21, 2001.


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         Total
                                                                ------          ------         --------      ------         -----
                                                                                    (Dollars in thousands)

<S>                                                            <C>           <C>            <C>           <C>            <C>
Balance, January 1, 2001 .................................     2,022,623     $   14,383     $      878    $     (367)    $   14,894
                                                                                                                         ----------
Comprehensive income:
    Net income ...........................................             -              -          1,416             -          1,416
    Change in unrealized holding gains and losses
      on available-for-sale securities arising
      during the period, net of income taxes of $463 .....             -              -              -           826            826
                                                                                                                        ----------
         Total comprehensive income ......................             -              -              -             -          2,242
                                                                                                                         ----------
Repurchase and cancellation of common stock ..............       (19,377)          (359)             -             -           (359)
Exercise of employee stock options .......................        12,194             44              -             -             44
                                                              ----------     ----------     ----------    ----------     ----------
Balance, September 30, 2001 ..............................     2,015,440     $   14,068     $    2,294    $      459     $   16,821
                                                              ==========     ==========     ==========    ==========     ==========



Balance, January 1, 2002 .................................     2,117,085     $   15,734     $    1,120    $      162     $   17,016
                                                                                                                         ----------
Comprehensive income:
    Net income ...........................................             -              -          2,071             -          2,071
                                                                                                                         ----------
    Change in unrealized holding gains and losses
      on available-for-sale securities arising
      during the period, net of income taxes of $128 .....             -              -              -           231            231
    Reclassification adjustment for losses (gains)
      realized in income, net of income taxes of $1 ......             -              -              -             1              1
                                                                                                                         ----------
         Total other comprehensive income ................             -              -              -             -            232
                                                                                                                         ----------
            Total comprehensive income ...................             -              -              -             -          2,303
                                                                                                                         ----------
Repurchase and cancellation of common stock ..............             -              -              -             -              -
Exercise of employee stock options .......................         4,936             19              -             -             19
                                                              ----------     ----------     ----------    ----------     ----------
Balance, September 30, 2002 ..............................     2,122,021     $   15,753     $    3,191    $      394     $   19,338
                                                              ==========     ==========     ==========    ==========     ==========
</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,
                                                                                                        2002                 2001
                                                                                                        ----                 ----
                                                                                                        (Dollars in thousands)
Operating activities
<S>                                                                                                    <C>                 <C>
     Net income ............................................................................           $  2,071            $  1,416
     Adjustments to reconcile net income to net
         cash provided by operating activities
            Provision for loan losses ......................................................                930                 310
            Depreciation ...................................................................                183                 173
            Amortization of net loan fees and costs ........................................                 (6)                  7
            Securities accretion and premium amortization ..................................                 61                 (28)
            Loss on sale of available-for-sale security ....................................                  2                   -
            Decrease (increase) in interest receivable .....................................                 45                (248)
            Decrease in interest payable ...................................................               (328)                 (2)
            (Decrease) increase in prepaid expenses and other assets .......................               (196)                 20
            (Decrease) increase in other accrued expenses ..................................                (25)                  2
            Loss on sale of other real estate ..............................................                  8                  31
            Gain on sale of loans held for sale ............................................                (22)                  -
            Proceeds of sale of loans held for sale ........................................              1,541                   -
            Originations of loans held for sale ............................................             (1,719)                  -
                                                                                                       --------            --------
                Net cash provided by operating activities ..................................              2,545               1,681
                                                                                                       --------            --------

Investing activities
     Purchases of available-for-sale securities ............................................            (43,834)            (62,694)
     Maturities, calls and paydowns of available-for-sale securities .......................             46,571              48,101
     Proceeds of sales of available-for-sale securities ....................................              2,998                   -
     Purchases of other investments ........................................................                (74)                (94)
     Net increase in loans made to customers ...............................................            (16,495)            (13,613)
     Purchases of premises and equipment ...................................................               (322)                (51)
     Proceeds from sale of other real estate ...............................................                140                 179
                                                                                                       --------            --------
                Net cash used by investing activities ......................................            (11,016)            (28,172)
                                                                                                       --------            --------

Financing activities
     Net (decrease) increase in demand deposits, interest
         bearing transaction accounts and savings accounts .................................             (6,341)              6,612
     Net increase in certificates of deposit and other
         time deposits .....................................................................             12,146              24,268
     Exercise of employee stock options ....................................................                 19                  44
     Repurchase and cancellation of common stock ...........................................                  -                (359)
                                                                                                       --------            --------
                Net cash provided by financing activities ..................................              5,824              30,565
                                                                                                       --------            --------
(Decrease) increase in cash and cash equivalents ...........................................             (2,647)              4,074
Cash and cash equivalents, beginning .......................................................             15,330              19,623
                                                                                                       --------            --------
Cash and cash equivalents, ending ..........................................................           $ 12,683            $ 23,697
                                                                                                       ========            ========
</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, 2001 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.

Comprehensive  Income - The components of other comprehensive income and related
tax effects are as follows:

<TABLE>
<CAPTION>
                                                                                                  (Unaudited)
                                                                                            Period Ended September 30,
                                                                                            --------------------------
                                                                                    Three Months                 Nine Months
                                                                                    ------------                 -----------
                                                                                 2002          2001          2002           2001
                                                                                 ----          ----          ----           ----
                                                                                             (Dollars in thousands)

<S>                                                                            <C>            <C>            <C>            <C>
Net income .............................................................       $   744        $   514        $ 2,071        $ 1,416
                                                                               -------        -------        -------        -------
Other comprehensive income:
     Unrealized holding gains and
         losses on available-for-sale securities
         arising during the period .....................................            22            499            359          1,289
     Income tax (expense) benefit on unrealized
         holding gains and losses arising
         during the period .............................................            (7)          (179)          (128)          (463)
     Reclassification adjustment for (gains) or losses
         realized in income during the period
     Income tax expense or (benefit) on gains...........................             -              -              2              -
         or losses realized in income during the period ................             -              -             (1)             -
                                                                               -------        -------        -------        -------
Total other comprehensive income .......................................            15            320            232            826
                                                                               -------        -------        -------        -------
Comprehensive income ...................................................       $   759        $   834        $ 2,303        $ 2,242
                                                                               =======        =======        =======        =======
</TABLE>

Statement  of Cash  Flows -  Interest  paid on  deposits  and  other  borrowings
amounted to $3,846,000  for the nine months ended  September  30, 2002,  and was
$6,618,000 for the nine months ended September 30, 2001.  Income tax payments of
$1,305,000  were made  during  the first  nine  months of 2002,  and  income tax
payments of $699,000 were made in the 2001 period.  Non-cash investment security
valuation adjustments increased available-for-sale securities by $359,000 during
the 2002 period, a related  shareholders'  equity account  increased by $232,000
and the associated  deferred  income taxes changed by $128,000.  During the 2001
period, non-cash valuation adjustments increased  available-for-sale  securities
by $1,289,000,  increased  shareholders' equity by $826,000 and changed deferred
income  taxes by  $463,000.  During  the first nine  months of 2002,  a non-cash
transfer of $25,000 was made from loans to other real estate.

Nonperforming  Loans  - As  of  September  30,  2002,  there  were  $190,000  of
nonaccrual  loans  and no loans  90 days or more  past  due and  still  accruing
interest.  As of December 31, 2001,  there were $609,000 of nonaccrual loans and
$1,000 of loans 90 days or more past due and still accruing.

Transactions  with Related  Parties - During the first nine months of 2001,  the
Company  repurchased and cancelled 19,377 shares of its common stock for a total
of $359,000 from two individuals  who serve as directors of the Company.  One of
the parties is also a principal shareholder.


                                       7
<PAGE>


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 2001 has been  retroactively  adjusted  to give  effect to a 5%
stock dividend  effective December 21, 2001. 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
                                                                           ------------                       -----------
                                                                        2002             2001             2002             2001
                                                                        ----             ----             ----             ----
                                                                            (Dollars in thousands, except per share amounts)

<S>                                                                 <C>               <C>               <C>               <C>
Net income per share, basic
  Numerator - net income ...................................        $      744        $      514        $    2,071        $    1,416
                                                                    ==========        ==========        ==========        ==========
  Denominator
    Weighted average common shares
      issued and outstanding ...............................         2,122,021         2,122,241         2,119,880         2,125,438
                                                                    ==========        ==========        ==========        ==========

               Net income per share, basic .................        $      .35        $      .24        $      .98        $      .67
                                                                    ==========        ==========        ==========        ==========

Net income per share, assuming dilution
  Numerator - net income ...................................        $      744        $      514        $    2,071        $    1,416
                                                                    ==========        ==========        ==========        ==========
  Denominator
    Weighted average common shares
      issued and outstanding ...............................         2,122,021         2,122,241         2,119,880         2,125,438
    Effect of dilutive stock options .......................           112,015           119,085           109,552           127,059
                                                                    ----------        ----------        ----------        ----------
               Total shares ................................         2,234,036         2,241,326         2,229,432         2,252,497
                                                                    ==========        ==========        ==========        ==========

               Net income per share,
                 assuming dilution .........................        $      .33        $      .23        $      .93        $      .63
                                                                    ==========        ==========        ==========        ==========
</TABLE>

Construction  in Process - Included in fixed assets as of September 30, 2002 are
$88,000  in   construction   in  process  costs   associated  with  the  banking
subsidiary's  permanent Williamston office. The Company estimates the total cost
to be incurred in this  project to be  approximately  $630,000  with an expected
completion  date in either the late fourth  quarter of 2002 or the first quarter
of 2003.

                                       8
<PAGE>


Item 2. - Management's Discussion and Analysis

         This discussion is intended to assist in understanding the consolidated
financial condition and results of operations of Community First  Bancorporation
(the  "Company')  and its  wholly-owned  subsidiary,  Community  First Bank. The
information  should be reviewed in conjunction  with the unaudited  consolidated
financial statements and the related notes contained elsewhere in this report.

Forward Looking Statements

         Statements  included in Management's  Discussion and Analysis which are
not  historical  in nature are  intended  to be, and are  hereby  identified  as
"forward looking statements" for purposes of the safe harbor provided by Section
21E of the  Securities  Exchange Act of 1934, as amended.  The Company  cautions
readers that forward looking  statements,  including without  limitation,  those
relating  to the  Company's  newest  offices,  its  future  business  prospects,
revenues, working capital, liquidity, capital needs, interest costs, and income,
are subject to certain risks and  uncertainties  that could cause actual results
to differ materially from those indicated in the forward looking statements, due
to several important factors herein  identified,  among others,  and other risks
and factors identified from time to time in the Company's reports filed with the
Securities and Exchange Commission.

Results of Operations

         Community  First  Bancorporation  recorded  consolidated  net income of
$744,000, or $.35 per share, for the third quarter, and $2,071,000,  or $.98 per
share, for the first nine months of 2002.  During 2001, the Company recorded net
income of $514,000 or $.24 per share for the third quarter,  and $1,416,000,  or
$.67 per share,  for the first  nine  months.  Net  income  per share,  assuming
dilution, for the three and nine month periods ended September 30, 2002 was $.33
and $.93,  respectively.  For the comparable 2001 periods, net income per share,
assuming dilution, was $.23 and $.63, respectively. Net income per share figures
for 2001  have  been  retroactively  adjusted  to  reflect  a 5% stock  dividend
effective December 21, 2001.

Net Interest Income

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

         For  analysis  purposes,  interest  income  from  tax-exempt  loans and
investments  is  adjusted  to an amount  that would have to be earned on taxable
investments to produce the same after-tax yields,  assuming a 34% Federal income
tax rate.  This  adjusted  amount is  referred  to as fully  taxable  equivalent
("FTE")  interest  income.  The Company had $45,000 ($68,000 FTE) in income from
tax-exempt  sources  during the first nine  months of 2002 and $51,000 of income
($77,000 FTE) from those sources in the same period of 2001.

         For the  first  nine  months  of  2002,  FTE net  interest  income  was
$5,959,000,  an  increase of  $1,812,000  or 43.7% over the first nine months of
2001. The increase in FTE net interest  income for the 2002 period resulted from
lower rates paid for interest  bearing  liabilities,  larger average  amounts of
interest earning assets and changes in the mix of earning assets. Those positive
effects were partially  offset by lower rates earned on interest  earning assets
and larger amounts of average interest bearing liabilities.

         The average rate paid for interest bearing  liabilities during the 2002
nine month  period was 2.65%,  a decrease of 260 basis points from the same 2001
period. The average rate earned on interest earning assets declined by 122 basis
points to 5.96% for the 2002 period.

         Average interest earning assets during the 2002 nine-month  period were
$212,502,000,  an increase of $12,013,000 or 6.0% over the comparable  period of
2001.  Average loans for the 2002  nine-month  period totaled  $127,787,000,  an
increase of  $24,322,000  or 23.5% over the same period of 2001.  Average  loans
were 60.1% and 51.6% of average  interest  earning  assets for the 2002 and 2001
nine  month  periods,  respectively.  Average  federal  funds  sold for the 2002
nine-month period were  $25,826,000,  a decrease of $9,736,000 or 27.3% from the
same  period of 2001.  Average  interest  bearing  liabilities  during  the 2002
nine-month period were  $177,528,000,  representing an increase of $9,172,000 or
5.4% over the amount  for the same  period of 2001.  Average  time  deposits  of
$100,000 and over increased to $53,293,000 for the 2002  nine-month  period from
$49,034,000  in the same prior year period,  an increase of  $4,259,000 or 8.7%.
Average  interest  bearing   transaction  and  savings  accounts   increased  to
$57,119,000,  an increase of  $6,331,000  or 12.5%.


                                       9
<PAGE>
         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 2002 was 3.31%.  The comparable  figure for the first nine months
of 2001 was 1.93%.  Net yield on earning assets (net interest  income divided by
average interest earning assets) was 3.75% for the first nine months of 2002, an
increase  of 98 basis  points over the 2.77% net yield for the first nine months
of 2001.

         Interest rates are influenced by monetary policies  implemented through
the actions of the Federal Reserve Bank's Open Market Committee.  While the Open
Market Committee's  efforts to effect  sustainable  economic growth are ongoing,
very little  action was taken by the  Committee  during the first nine months of
2002.  The central bank continued to provide  stimulus  throughout the 2002 nine
months  through a strategy of  maintaining  interest  rates at low,  but stable,
levels.

         During the first nine months of 2001, the Committee's desire to provide
stimulus to the economy by reducing shorter term interest rates contributed to a
high degree of interest rate  volatility.  Those efforts were intensified in the
latter  days of the  period  in the wake of the  September  11,  2001  terrorist
attacks.

Provision and Allowance for Loan Losses

         The provision  for loan losses  charged to expense was $270,000 for the
third quarter of 2002 compared with $135,000 for the third quarter of 2001,  and
totaled  $930,000 for the first nine months of 2002  compared  with $310,000 for
the  comparable  period of 2001. At September  30, 2002,  the allowance for loan
losses was 1.33% of loans,  compared  with 1.00% of loans at December  31, 2001.
During the 2002 nine-month  period, net charge-offs  totaled $317,000,  compared
with  $281,000  charged off during the same period of 2001.  As of September 30,
2002, there were $190,000 in nonaccrual loans and no loans over 90 days past due
and still  accruing  interest.  The amount of nonaccrual  loans at September 30,
2002 is $255,000  less than the amount at September  30, 2001 and $419,000  less
than the amount of nonaccrual loans as of December 31, 2001. The majority of the
nonaccrual loans are secured by vehicles and 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.

         As of September 30, 2002, the Company's potential problem loans totaled
$3,410,000,  an  increase  of  $2,530,000  over the  amount of such  loans as of
December  31,  2001.   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.  The majority of the potential  problem loans
are  secured  by real  estate  mortgages  or  liens on  equipment,  inventories,
receivables, automobiles and other forms of collateral.

         Management  believes  that the allowance for loan losses is adequate to
absorb all estimated  future risk of loss  inherent in the loan  portfolio as of
September 30, 2002.

Noninterest Income

         Noninterest  income  totaled  $324,000  for the third  quarter of 2002,
compared with $258,000 for the 2001 quarter. Noninterest income was $845,000 for
the first nine months of 2002 and $744,000 for the same 2001 period.  The higher
noninterest income in 2002 was attributable  primarily to increased fees derived
from charges assessed against deposit accounts and fees for card-based services,
including  debit and credit card fees and fees for ATM usage.  There were $2,000
in  realized  losses on the sale of an  available-for-sale  security in the 2002
year-to-date  period.  There were no realized  securities gains or losses in the
2001 period.

Noninterest Expenses

         Noninterest  expenses  totaled  $936,000 for the third quarter of 2002,
compared with $820,000 for the 2001 period, representing an increase of $116,000
or 14.1%. Noninterest expenses were $2,626,000 for the first nine months of 2002
compared  with  $2,387,000  for the same period of 2001.  Salaries  and employee
benefits for the 2002 quarter totaled $526,000,  an increase of $73,000 over the
2001  three  month  period.  For the first  nine  months of 2002,  salaries  and
employee  benefits  totaled  $1,458,000  representing an increase of $163,000 or
12.6% over the same period of 2001. This increase  resulted  largely from normal
increases in salaries and wages  granted from time to time,  and higher costs of
employment  taxes  and  employee  insurance  benefits.  Also,  during  the  2002
nine-month period,  $21,000 was provided for year-end incentive bonuses. No such
expense was recorded in the 2001 period.

         Occupancy and furniture and equipment expenses for the third quarter of
2002 totaled $117,000,  an increase of $26,000, or 28.6% from the amount for the
same  period of 2001.  Such  expenses  increased  $20,000  during the first nine
months of 2002,  primarily due to increased  expenses for  depreciation  of data
processing  equipment and increased  equipment  maintenance and repair expenses.
Other  expenses for the third  quarter of 2002 were $17,000 or 6.2% greater than
the comparable  period of 2001. Such expenses for the nine-month  period of 2002
were  $56,000  or 7.3%  more  than for the same  period  of  2001.  The  banking
subsidiary had higher  expenses  resulting from the expanded  network of offices

                                       10
<PAGE>

and increases in the number of customers that have resulted from those projects.
Such increased expenses included  stationery and supplies,  postage and freight,
telephones,  employee  bonding and other forms of insurance,  and  correspondent
bank charges.  Additional  software costs  associated with pricing  arrangements
based on higher deposit and loan account volumes were incurred in 2002, as well.
Increased amounts were incurred in 2002 for miscellaneous  costs associated with
holdings of other real estate.  During the 2002 period,  the Company  incurred a
loss of $8,000 on the sale of other real estate compared with a loss on the sale
of other real estate of $31,000 during the 2001 period. Expenses for conventions
and  meetings for 2002  decreased  by $44,000  from the 2001 amount  because the
Company conducted  extensive  strategic  planning  activities in 2001.  Although
strategic  planning  activities  of  that  scale  are  undertaken  infrequently,
strategic planning is an ongoing process.

         Management anticipates that higher amounts of noninterest expenses will
continue during the remainder of 2002.

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
pledging  commitments and market conditions.  Individual and commercial deposits
are the Company's primary source of funds for credit activities.

         As of  September  30,  2002,  the ratio of loans to total  deposits was
68.3%, compared with 61.9% as of December 31, 2001 and 56.8% as of September 30,
2001. The increase in the loan-to-deposit ratio for 2002 is generally the result
of the Company's  recent  emphasis on generating  quality loans  throughout  its
market  areas.  In  previous  periods,   deposit  acquisition   activities  were
emphasized in the newer Anderson County market areas.

         Deposits as of September 30, 2002  increased by $5,805,000 or 3.0% over
the amount at December 31, 2001 and were  $4,061,000  or 2.1% greater than their
levels of September 30, 2001.

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

Capital Resources

         The Company's equity capital increased by $2,322,000 since December 31,
2001 as the result of net  income of  $2,071,000  for the first  nine  months of
2002,  $19,000 added from the exercise of employee stock options,  plus $232,000
from  changes  in  unrealized  holding  gains and  losses on  available-for-sale
securities, net of deferred 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 September  30, 2002 risk based  capital  ratios for the Company and
the  Bank  are  presented  in the  following  table,  compared  with  the  "well
capitalized" and minimum ratios under the regulatory definitions and guidelines:

                                                             Total
                                                Tier 1      Capital    Leverage
                                                ------      -------    --------
Community First Bancorporation ..............   13.8%       15.0%        8.7%
Community First Bank ........................   13.2%       14.5%        8.4%
Minimum "well-capitalized" requirement ......    6.0%       10.0%        5.0%
Minimum requirement .........................    4.0%        8.0%        3.0%



                                       11
<PAGE>


Commitments to Extend Credit

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

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

                                                   September 30,
                                                        2002
                                                        ----
Loan commitments ................................     $ 13,740
Standby letters of credit .......................          228


         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. 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.


Item 3. - Controls and Procedures

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

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





                                       12
<PAGE>



                           PART II - OTHER INFORMATION

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

(a)      Exhibits                           None.



(b)      Reports on Form 8-K.               None.




                                       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 7, 2002                   /s/ Frederick D. Shepherd, Jr.
-----------------                  ---------------------------------------------
     Date                            Frederick D. Shepherd, Jr.,
                                     President and Chief Executive
                                     Officer (also principal accounting officer)
























                                       14
<PAGE>


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

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

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

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

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

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

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

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

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

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

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

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

Date: November 7, 2002



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



                                       15