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 March 31, 1998          Commission File No. 000-29640



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


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


                            3685 BLUE RIDGE BOULEVARD
                         WALHALLA, SOUTH CAROLINA 29691
--------------------------------------------------------------------------------
                    (Address of principal executive offices)


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


     Check  whether  the issuer (1) filed all  reports  required  to be filed by
Section 13 or 15(d) of the  Exchange  Act during the past 12 months (or for such
shorter period that the  registrant was required to file such reports),  and (2)
has been subject to such filing requirements for the past 90 days. Yes X No


     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, 888,010 Shares Outstanding on April 30, 1998


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


                                      -1-
<PAGE>



                         COMMUNITY FIRST BANCORPORATION

                                   FORM 10-QSB


                                      Index


                                                                            Page

PART I -    FINANCIAL INFORMATION

Item 1.      Financial Statements

             Consolidated Balance Sheet ..................................     3
             Consolidated Statement of Income ............................     4
             Consolidated Statement of Comprehensive Income ..............     5
             Consolidated Statement of Changes in Shareholders' Equity ...     6
             Consolidated Statement of Cash Flows ........................     7
             Notes to Unaudited Consolidated Financial Statements ........   8-9

Item 2.      Management's Discussion and Analysis ........................ 10-12

PART II -    OTHER INFORMATION

Item 6.      Exhibits and Reports on Form 8-K ............................    12


SIGNATURE .................................................................   13





                                      -2-
<PAGE>


                         PART I - FINANCIAL INFORMATION

Item 1. - Financial Statements


COMMUNITY FIRST BANCORPORATION

Consolidated Balance Sheet

                                                      (Unaudited)
                                                        March 31,   December 31,
                                                          1998          1997
                                                      ------------   -----------
                                                          (Dollars in thousands)
Assets
Cash and due from banks ........................      $   3,394       $   4,834
Federal funds sold .............................         24,945           6,510
Available-for-sale securities ..................         21,301          25,510
Other investments ..............................            346             335
Loans ..........................................         67,703          65,838
Less allowance for loan losses .................           (943)           (890)
                                                      ---------       ---------
Loans - net ....................................         66,760          64,948
Premises and equipment - net ...................          1,643           1,675
Accrued interest receivable ....................            703             793
Other assets ...................................            345             363
                                                      ---------       ---------

Total assets ...................................      $ 119,437       $ 104,968
                                                      =========       =========

Liabilities
Deposits
Noninterest bearing demand .....................      $  20,451       $  16,501
Interest bearing transaction accounts ..........         11,754          10,106
Savings ........................................         23,970          16,191
Time deposits $100M and over ...................         21,490          23,046
Other time deposits ............................         28,502          26,446
                                                      ---------       ---------
Total deposits .................................        106,167          92,290
Accrued interest payable .......................            668             772
Other liabilities ..............................            283              56
                                                      ---------       ---------
Total liabilities ..............................        107,118          93,118
                                                      ---------       ---------

Shareholders' equity
Common stock - no par value; 5,000,000
shares authorized; shares issued and
outstanding 888,010 for 1998 and
886,140 for 1997 ...............................         10,498          10,479
Retained earnings ..............................          1,815           1,387
Accumulated other comprehensive
income (loss) ..................................              6             (16)
                                                      ---------       ---------
Total shareholders' equity .....................         12,319          11,850
                                                      ---------       ---------

Total liabilities and
shareholders' equity ...........................      $ 119,437       $ 104,968
                                                      =========       =========




See notes to consolidated financial statements.


                                      -3-
<PAGE>




                         COMMUNITY FIRST BANCORPORATION

                        Consolidated Statement of Income

                                                                 (Unaudited)
                                                              Three Months Ended
                                                                  March 31,
                                                             1998          1997
                                                             ----          ----
                                                          (Dollars in thousands,
                                                              except per share)
Interest income
  Loans, including fees ............................        $1,481        $1,237
  Securities - taxable
    U.S. Treasury ..................................            23            73
    U.S. Government agencies .......................           360           357
  Other investments ................................             2             -
  Federal funds sold ...............................           284           237
                                                            ------        ------
          Total interest income ....................         2,150         1,904
                                                            ------        ------

Interest expense
  Time deposits $100M and over .....................           315           279
  Other deposits ...................................           751           694
                                                            ------        ------
          Total interest expense ...................         1,066           973
                                                            ------        ------

Net interest income ................................         1,084           931
Provision for loan losses ..........................            65            65
                                                            ------        ------
Net interest income after provision ................         1,019           866
                                                            ------        ------

Other income
  Service charges on deposit accounts ..............            84            66
  Credit life insurance commissions ................             8             7
  Other income .....................................            38            34
                                                            ------        ------
          Total other income .......................           130           107
                                                            ------        ------

Other expenses
  Salaries and employee benefits ...................           252           219
  Net occupancy expense ............................            23            29
  Furniture and equipment expense ..................            53            35
  Other expense ....................................           156           140
                                                            ------        ------
          Total other expenses .....................           484           423
                                                            ------        ------

Income before income taxes .........................           665           550
Income tax expense .................................           237           191
                                                            ------        ------

Net income .........................................        $  428        $  359
                                                            ======        ======

Per share*
  Net income .......................................        $  .48        $  .41
  Net income, assuming dilution ....................           .46            40

*Per share  information has been  retroactively  adjusted to reflect a 15% stock
dividend effective December 30, 1997.




See notes to consolidated financial statements.



                                      -4-
<PAGE>


                         COMMUNITY FIRST BANCORPORATION

                 Consolidated Statement of Comprehensive Income


                                                               (Unaudited)
                                                           Three Months Ended
                                                                March 31,
                                                          1998            1997
                                                          ----            ----
                                                         (Dollars in thousands)

Net income .........................................        $  428       $  359
                                                            ------       ------
Other comprehensive income (loss)
  Change in unrealized holding gains and
    losses on available-for-sale securities ........            35         (106)
  Income tax expense (benefit) on other
    comprehensive income ...........................            13          (38)
                                                            ------       ------
        Total other comprehensive income (loss) ....            22          (68)
                                                            ------       ------

Comprehensive income ...............................        $  450       $  291
                                                            ======       ======



























                                      -5-
<PAGE>


                         COMMUNITY FIRST BANCORPORATION

           Consolidated Statement of Changes in Shareholders' Equity

                                   (Unaudited)
<TABLE>
<CAPTION>

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

<S>                                       <C>       <C>          <C>          <C>          <C>          <C>       
Balance January 1, 1997 ............      764,554   $    3,823   $    4,659   $    1,932   $      (79)  $   10,335
Net income for period                                                                359                       359
Unrealized net holding losses on
  available-for-sale securities,
  net of taxes .....................                                                              (68)         (68)
                                       ----------   ----------   ----------   ----------   ----------   ----------

Balance March 31, 1997 .............      764,554   $    3,823   $    4,659   $    2,291   $     (147)  $   10,626
                                       ==========   ==========   ==========   ==========   ==========   ==========



Balance January 1, 1998 ............      886,140   $   10,479   $            $    1,387   $      (16)  $   11,850
Exercise of employee stock options .        1,870           19                                                  19
Net income for period                                                                428                       428
Unrealized net holding gains on
  available-for-sale securities,
  net of taxes .....................                                                               22           22
                                       ----------   ----------   ----------   ----------   ----------   ----------

Balance March 31, 1998 .............      888,010   $   10,498   $            $    1,815   $        6   $   12,319
                                       ==========   ==========   ==========   ==========   ==========   ==========
</TABLE>































See notes to consolidated financial statements.


                                      -6-
<PAGE>


                         COMMUNITY FIRST BANCORPORATION

Consolidated Statement of Cash Flows

                                                                (Unaudited)
                                                            Three Months Ended
                                                                 March 31,
                                                             1998          1997
                                                             ----          ----
                                                          (Dollars in thousands)
Operating activities
  Net income ........................................  $      428    $      359
  Adjustments to reconcile net income to
    net cash provided by operating activities
      Provision for loan losses .....................          65            65
      Depreciation ..................................          40            24
      Amortization of net loan fees and costs .......          10            (2)
      Accretion and premium amortization ............          (8)           (4)
      Decrease in interest receivable ...............          90            16
      Decrease in interest payable ..................        (104)         (246)
      Decrease (increase) in prepaid expenses .......           5          (100)
      Increase in other accrued expenses ............         227           121
                                                       ----------    ----------
          Net cash provided by operating activities .         753           233
                                                       ----------    ----------

Investing activities
  Maturities of available-for-sale securities .......      11,229           606
  Purchases of available-for-sale securities ........      (6,977)       (2,500)
  Purchase of other investments .....................         (11)
  Net increase in loans made to customers ...........      (1,887)       (3,066)
  Purchases of premises and equipment ...............          (8)          (20)
                                                       ----------    ----------
          Net cash provided (used) by
            investing activities ....................       2,346        (4,980)
                                                       ----------    ----------

Financing activities
  Net increase in demand deposits,
    interest bearing transaction accounts
    and savings accounts ............................      13,377         3,891
  Net increase in certificates of
    deposit and other time deposits .................         500         1,320
  Exercise of employee stock options ................          19
                                                       ----------    ----------
          Net cash provided by financing activities .      13,896         5,211
                                                       ----------    ----------

Increase in cash and cash equivalents ...............      16,995           464
Cash and cash equivalents, beginning ................      11,344        15,417
                                                       ----------    ----------
Cash and cash equivalents, ending ...................  $   28,339    $   15,881
                                                       ==========    ==========











See notes to consolidated financial statements.


                                      -7-
<PAGE>

                         COMMUNITY FIRST BANCORPORATION

Notes to Unaudited Consolidated Financial Statements


Accounting  Policies - A summary of significant  accounting policies is included
in the  Company's  Annual  Report for the year ended  December  31, 1997 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  which are necessary for a fair  presentation  of the results of the
periods presented. Such adjustments were of a normal, recurring nature.

Statement  of Cash  Flows -  Interest  paid on  deposits  and  other  borrowings
amounted  to  $1,170,000  for the three  months  ended March 31,  1998,  and was
$1,219,000  for the three months  ended March 31,  1997.  Income tax payments of
$22,000 were made during the first three months of 1998, and income tax payments
of $216,000 were made in the 1997 period. Non-cash investment security valuation
adjustments   totaling   $35,000  were  made  in  the  1998  period   increasing
available-for-sale  securities,  and  a  related  shareholders'  equity  account
increased by $22,000 and the associated  deferred income taxes changed  $13,000.
During the 1997 period,  non-cash valuation  adjustments decreased securities by
$106,000,  decreased  shareholders'  equity $68,000 and changed  deferred income
taxes by $38,000.

Nonperforming  Loans - As of March 31, 1998,  there were  $82,000 in  nonaccrual
loans and $4,000 in loans 90 days or more past due as to  principal  or interest
payments still accruing.

Earnings  Per  Share - The  Company  adopted  the  provisions  of  Statement  of
Accounting Standards No, 128, "Earnings per Share" during 1997, as required. All
prior years' figures are restated on a comparable basis.

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 are based on dividing  applicable  net income by the
weighted average number of common shares  outstanding and any dilutive potential
common shares and dilutive stock options.  It is assumed that all dilutive stock
options are  exercised at the beginning of each period and that the proceeds are
used to purchase  shares of the  Company's  common  stock at the average  market
price  during  the  period.  All per share  information  has been  retroactively
adjusted to give effect to stock dividends.  Net income per share and net income
per share, assuming dilution, were computed as follows:















                                      -8-
<PAGE>



                                                            (Unaudited)
                                                         Three Months Ended
                                                              March 31,
                                                        1998            1997
                                                        ----            ----
                                                       (Dollars in thousands,
                                                      except per share amounts)

Net income per share (basic)
  Numerator - net income ........................   $        428    $        359
                                                    ============    ============
  Denominator
    Weighted average common shares issued
      and outstanding ...........................        887,662         879,237
                                                    ============    ============

          Net income per share (basic) ..........   $        .48    $        .41
                                                    ============    ============


Net income per share, assuming dilution
  Numerator - net income ........................   $        428    $        359
                                                    ============    ============
  Denominator
    Weighted average common shares issued
      and outstanding ...........................        887,662         879,237
    Effect of dilutive stock options ............         37,761          28,491
                                                    ------------    ------------
      Total .....................................        925,423         907,728
                                                    ============    ============

          Net income per share, assuming dilution   $        .46    $        .40
                                                    ============    ============



                                      -9-
<PAGE>
 
Item 2. - Management's Discussion and Analysis


Results of Operations

     Community First  Bancorporation (the "Company")  recorded  consolidated net
income  of  $428,000  or $.48 per share for the  first  quarter  of 1998.  These
results compare  favorably with net income of $359,000 or $.41 per share for the
first quarter of 1997.  Per share net income,  assuming  dilution,  for the 1998
period was $.46,  and the  comparable  figure  for the 1997  figure was $.40 per
share.  The net  income  per share  figures  for 1997  have  been  retroactively
adjusted to reflect a 15% stock dividend effective December 30, 1997.

     Net interest income is the principal source of the Company's earnings.  For
the first quarter of 1998, net interest  income was  $1,084,000,  an increase of
$153,000 or 16.4% over the first  quarter of 1997.  The increase in net interest
income  resulted  primarily from larger volumes of earning  assets,  principally
loans.  During the first quarter of 1998,  average  interest earning assets were
$113,552,000,  an increase of  $11,336,000  or 11.1% over the same 1997  period.
Average  interest  bearing  liabilities  during  the first  quarter of 1998 were
$87,396,000,  representing an increase of $6,702,000 or 8.3% over the comparable
1997 period. The average interest rate spread (average yield on interest earning
assets less the average rate paid on interest bearing liabilities) for the first
quarter of 1998 was 2.73%,  an increase  of 7 basis  points from the 2.66% noted
for the same 1997  period.  Net yield on earning  assets  (net  interest  income
divided by average  interest  earning assets) for the first three months of 1998
increased  by 18 basis points to 3.87%,  compared  with 3.69% for the 1997 three
month period.

     The increases in interest earning assets and interest  bearing  liabilities
resulted  from the  Company's  continuing  marketing  strategies to increase its
market share in its local service area within  Oconee  County,  South  Carolina.
Management  expects to continue to utilize such strategies  during the remainder
of 1998.

Provision and Allowance for Loan Losses

     The  provision  for loan  losses  totaled  $65,000  for  each of the  first
quarters of 1998 and 1997. At March 31, 1998,  the allowance for loan losses was
1.39% of loans,  compared  with 1.35% of loans at December 31, 1997.  During the
1998 three month period,  net loan charge-offs  totaled  $12,000,  compared with
$12,000  charged-off during the same period of 1997. As of March 31, 1998, there
were $82,000 in  nonaccrual  loans and $4,000 in loans over 90 days past due and
still accruing interest.

         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
March 31, 1998.


                                      -10-
<PAGE>


Noninterest Income

         Noninterest  income  totaled  $130,000  for the first  quarter  of 1998
compared with $107,000 for the 1997 quarter. Service charges on deposit accounts
increased by $18,000 for the 1998 period to $84,000 due to increased  chargeable
account  activity.  There were no realized  securities gains or losses in either
the 1998 or 1997 periods.


Noninterest Expenses

         Noninterest  expenses  totaled  $484,000 for the first quarter of 1998,
compared with  $423,000 for 1997.  Salaries and employee  benefits  increased by
$33,000  or 15.1% to  $252,000  for the 1998  period  mainly  as the  result  of
accruing $40,000 toward year-end incentive bonuses. The incentive bonus plan was
new in 1997,  therefore  no  comparable  accruals  were made in the 1997 period.
Occupancy and furniture  and  equipment  expenses for 1998  increased by $12,000
compared with 1997 due to increased  depreciation and other expenses  associated
with new data  processing  and other  computer  equipment  which  was  placed in
service  during the second  quarter of 1997.  Other expenses for the 1998 period
increased by $16,000 over the amount for the first quarter of 1997 due to higher
levels of charitable contributions, increased spending for employee training and
travel expense, and increased amortization of software costs.  Professional fees
for the first  quarter of 1998  decreased by $9,000  compared with the same 1997
period because of nonrecurring  expenses in 1997 related to the formation of the
holding company. Management will continue to emphasize cost control.

 Liquidity

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

As of March 31, 1998, the ratio of loans to total deposits was 63.8%. Management
believes that the Company's liquidity sources are adequate to meet its operating
needs.

Capital Resources

     The capital base for the Company  increased by $469,000  since December 31,
1997 as the result of the  $428,000  net income  for the first  three  months of
1998,  plus  $22,000 for the change in  unrealized  holding  gains and losses on
available-for-sale securities, and $19,000 from the exercise of employees' stock
options.

         The Company and its banking subsidiary (the "Bank") are each 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


                                      -11-
<PAGE>



position  of  an  affected  institution  were  to  fall  below  certain  levels,
increasingly stringent regulatory corrective actions are mandated.

         The March 31, 1998  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                18.3%        19.5%        10.4%
Community First Bank                          17.9%        19.1%        10.2%
Minimum "well capitalized" requirement         6.0%        10.0%         5.0%
Minimum requirement                            4.0%         8.0%         3.0%



                           PART II - OTHER INFORMATION

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

(a)  Exhibits

     Exhibit No.
     from Item 601 of
     Regulation S-B                       Description
     --------------                       -----------

           27                             Financial Data Schedule


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


























                                      -12-
<PAGE>

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


                             COMMUNITY FIRST BANCORPORATION


     May 8, 1998             /s/Frederick D. Shepherd, Jr.
---------------------      ----------------------------------------------------
        Date               Frederick D. Shepherd, Jr., President and Chief
                           Executive Officer (also principal accounting officer)














































                                      -13-
<PAGE>




                                  EXHIBIT INDEX


     Exhibit No.
     from Item 601 of
     Regulation S-B                       Description
     --------------                       -----------

           27                             Financial Data Schedule