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, 2001      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, 2,015,440 Shares Outstanding on October 31, 2001.

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 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

PART II -  OTHER INFORMATION

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

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




                                       2
<Page>

                         PART I - FINANCIAL INFORMATION

Item 1. - Financial Statements

COMMUNITY FIRST BANCORPORATION
Consolidated Balance Sheet
<Table>
<Caption>
                                                                                                  (Unaudited)
                                                                                                 September 30,          December 31,
                                                                                                      2001                  2000
                                                                                                      ----                  ----
                                                                                                          (Dollars in thousands)
Assets
<S>                                                                                                 <C>                   <C>
     Cash and due from banks ...........................................................            $   4,170             $   4,027
     Interest bearing deposits due from banks ..........................................                   19                    16
     Federal funds sold ................................................................               19,508                15,580
     Securities available-for-sale .....................................................               73,771                57,862
     Other investments .................................................................                  480                   386
     Loans .............................................................................              110,887                97,562
         Allowance for loan losses .....................................................               (1,029)               (1,000)
                                                                                                    ---------             ---------
            Loans - net ................................................................              109,858                96,562
     Premises and equipment - net ......................................................                3,289                 3,411
     Accrued interest receivable .......................................................                1,624                 1,376
     Other assets ......................................................................                1,243                 1,846
                                                                                                    ---------             ---------

            Total assets ...............................................................            $ 213,962             $ 181,066
                                                                                                    =========             =========

Liabilities
     Deposits
         Noninterest bearing ...........................................................            $  25,392             $  21,224
         Interest bearing ..............................................................              169,871               143,159
                                                                                                    ---------             ---------
            Total deposits .............................................................              195,263               164,383
     Accrued interest payable ..........................................................                1,758                 1,760
     Other liabilities .................................................................                  120                    29
                                                                                                    ---------             ---------
            Total liabilities ..........................................................              197,141               166,172
                                                                                                    ---------             ---------

Shareholders' equity
     Common stock - no par  value; 10,000,000 shares authorized;
         issued  and  outstanding - 2,015,440 for 2001 and
         2,022,623 for 2000 ............................................................               14,068                14,383
     Retained earnings .................................................................                2,294                   878
     Accumulated other comprehensive income ............................................                  459                  (367)
                                                                                                    ---------             ---------
            Total shareholders' equity .................................................               16,821                14,894
                                                                                                    ---------             ---------

            Total liabilities and shareholders' equity .................................            $ 213,962             $ 181,066
                                                                                                    =========             =========
</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
                                                                              ------------                       -----------
                                                                         2001              2000              2001             2000
                                                                         ----              ----              ----             ----
                                                                                   (Dollars in thousands, except per share)

Interest income
<S>                                                                    <C>               <C>               <C>               <C>
     Loans, including fees .................................           $ 2,268           $ 2,010           $ 6,739           $ 5,518
     Securities
       Taxable .............................................               905               889             2,781             2,671
       Tax-exempt ..........................................                 2                 2                 7                 7
     Other investments .....................................                 8                 8                23                23
     Federal funds sold ....................................               322                59             1,187               590
                                                                       -------           -------           -------           -------
         Total interest income .............................             3,505             2,968            10,737             8,809
                                                                       -------           -------           -------           -------

Interest expense
     Time deposits $100M and over ..........................               682               610             2,117             1,720
     Other deposits ........................................             1,333             1,105             4,499             3,275
                                                                       -------           -------           -------           -------
         Total interest expense ............................             2,015             1,715             6,616             4,995
                                                                       -------           -------           -------           -------

Net interest income ........................................             1,490             1,253             4,121             3,814
Provision for loan losses ..................................               135                70               310               252
                                                                       -------           -------           -------           -------
Net interest income after provision ........................             1,355             1,183             3,811             3,562
                                                                       -------           -------           -------           -------

Other income
     Service charges on deposit accounts ...................               204               159               579               396
     Credit life insurance commissions .....................                 9                16                27                48
     Other income ..........................................                45                61               138               172
                                                                       -------           -------           -------           -------
         Total other income ................................               258               236               744               616
                                                                       -------           -------           -------           -------

Other expenses
     Salaries and employee benefits ........................               453               434             1,295             1,140
     Net occupancy expense .................................                43                46               142               133
     Furniture and equipment expense .......................                48                67               183               194
     Other expense .........................................               276               241               767               700
                                                                       -------           -------           -------           -------
         Total other expenses ..............................               820               788             2,387             2,167
                                                                       -------           -------           -------           -------

Income before income taxes .................................               793               631             2,168             2,011
Income tax expense .........................................               279               218               752               717
                                                                       -------           -------           -------           -------
Net income .................................................           $   514           $   413           $ 1,416           $ 1,294
                                                                       =======           =======           =======           =======

Per share*
     Net income ............................................           $  0.25           $  0.21           $  0.70           $  0.64
     Net income, assuming dilution .........................              0.24              0.19              0.66              0.59
</Table>

------------------
* Per share  information has been  retroactively  adjusted to reflect a 5% stock
dividend effective December 15, 2000.



See accompanying notes to unaudited consolidated financial statements.



                                       4
<Page>


COMMUNITY FIRST BANCORPORATION
Consolidated Statement of Changes in Shareholders' Equity

<Table>
<Caption>
                                                                  (Unaudited)

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

<S>                                                        <C>            <C>             <C>            <C>             <C>
Balance, January 1, 2000 ............................      2,002,699      $   14,255      $    1,110     $   (1,629)     $   13,736
                                                                                                                         ----------
Comprehensive income:
    Net income ......................................              -               -           1,294              -           1,294
    Change in unrealized holding gains
      and losses on available-for-sale
      securities, net of income taxes ...............              -               -               -            256             256
                                                                                                                         ----------
          Total comprehensive income ................              -               -               -              -           1,550
                                                                                                                         ----------
Repurchase and cancellation of common stock .........       (110,000)         (1,900)              -              -          (1,900)
Exercise of employee stock options ..................         17,199              64               -              -              64
                                                          ----------      ----------      ----------     ----------      ----------
Balance, September 30, 2000 .........................      1,909,898      $   12,419      $    2,404     $   (1,373)     $   13,450
                                                          ==========      ==========      ==========     ==========      ==========



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, net of income taxes ...............              -               -               -            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
                                                          ==========      ==========      ==========     ==========      ==========
</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,
                                                                                                          2001                2000
                                                                                                          ----                ----
                                                                                                            (Dollars in thousands)
Operating activities
<S>                                                                                                    <C>                 <C>
     Net income ............................................................................           $  1,416            $  1,294
     Adjustments to reconcile net income to net
         cash provided by operating activities
            Provision for loan losses ......................................................                310                 252
            Depreciation ...................................................................                173                 170
            Amortization of net loan fees and costs ........................................                  7                  56
            Securities accretion and premium amortization ..................................                (28)                 (5)
            Increase in interest receivable ................................................               (248)               (286)
            (Decrease) increase in interest payable ........................................                 (2)                196
            Decrease (increase) in prepaid expenses and other assets .......................                 20                 (93)
            Increase (decrease) in other accrued expenses ..................................                  2                  (8)
            Loss on sale of other real estate ..............................................                 31                   -
                                                                                                       --------            --------
                Net cash provided by operating activities ..................................              1,681               1,576
                                                                                                       --------            --------

Investing activities
     Purchases of available-for-sale securities ............................................            (62,694)             (1,973)
     Maturities of available-for-sale securities ...........................................             48,101                 792
     Purchases of other investments ........................................................                (94)                 (4)
     Net increase in loans made to customers ...............................................            (13,613)            (14,972)
     Purchases of premises and equipment ...................................................                (51)               (307)
     Proceeds from sale of other real estate ...............................................                179                   -
                                                                                                       --------            --------
                Net cash used by investing activities ......................................            (28,172)            (16,464)
                                                                                                       --------            --------

Financing activities
     Net increase in demand deposits, interest
         bearing transaction accounts and savings accounts .................................              6,612               5,108
     Net increase in certificates of deposit and other
         time deposits .....................................................................             24,268               1,552
     Exercise of employee stock options ....................................................                 44                  64
     Repurchase and cancellation of common stock ...........................................               (359)             (1,900)
                                                                                                       --------            --------
                Net cash provided by financing activities ..................................             30,565               4,824
                                                                                                       --------            --------
Increase (decrease) in cash and cash equivalents ...........................................              4,074             (10,064)
Cash and cash equivalents, beginning .......................................................             19,623              16,965
                                                                                                       --------            --------
Cash and cash equivalents, ending ..........................................................           $ 23,697            $  6,901
                                                                                                       ========            ========
</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, 2000 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
                                                                                  ------------                     -----------
                                                                               2001           2000             2001           2000
                                                                               ----           ----             ----           ----
                                                                                             (Dollars in thousands)

<S>                                                                           <C>             <C>             <C>             <C>
Net income .........................................................          $  514          $  413          $1,416          $1,294
                                                                              ------          ------          ------          ------
Other comprehensive income:
     Change in unrealized holding gains and
         losses on available-for-sale securities ...................             499             382           1,289             400
     Income tax expense on other
         comprehensive income ......................................             179             138             463             144
                                                                              ------          ------          ------          ------
            Total other comprehensive income .......................             320             244             826             256
                                                                              ------          ------          ------          ------
Comprehensive income ...............................................          $  834          $  657          $2,242          $1,550
                                                                              ======          ======          ======          ======
</Table>



Statement  of Cash  Flows -  Interest  paid on  deposits  and  other  borrowings
amounted to $6,618,000  for the nine months ended  September  30, 2001,  and was
$4,799,000 for the nine months ended September 30, 2000.  Income tax payments of
$699,000 were made during the first nine months of 2001, and income tax payments
of $786,000 were made in the 2000 period. Non-cash investment security valuation
adjustments  increased  available-for-sale  securities by $1,289,000  during the
2001 period, a related  shareholders'  equity account  increased by $826,000 and
the  associated  deferred  income  taxes  changed by  $463,000.  During the 2000
period, non-cash valuation adjustments increased  available-for-sale  securities
by $400,000,  increased  shareholders'  equity by $256,000 and changed  deferred
income taxes by $144,000. A non-cash transfer of $160,000 was made from loans to
other real estate during the first nine months of 2000.

Nonperforming  Loans  - As  of  September  30,  2001,  there  were  $445,000  of
nonaccrual  loans  and no loans  90 days or more  past  due and  still  accruing
interest.  As of September 30, 2000,  there were $75,000 of nonaccrual loans and
no 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 from two
individuals who serve as directors of the Company.  One of the parties is also a
principal  shareholder.  These shares were  repurchased  at prices  ranging from
$18.00 to $19.00 per share, totaling $359,000.



                                       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 2000 has been  retroactively  adjusted  to give  effect to a 5%
stock dividend  effective December 15, 2000. 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
                                                                           ------------                          -----------
                                                                       2001             2000               2001                2000
                                                                       ----             ----               ----                ----
                                                                            (Dollars in thousands, except per share amounts)

Net income per share, basic
<S>                                                                 <C>               <C>               <C>               <C>
Numerator - net income .....................................        $      514        $      413        $    1,416        $    1,294
                                                                    ==========        ==========        ==========        ==========
Denominator
     Weighted average common shares
       issued and outstanding ..............................         2,021,182         2,005,299         2,024,227         2,044,496
                                                                    ==========        ==========        ==========        ==========

               Net income per share, basic .................        $      .25        $      .21        $      .70        $      .64
                                                                    ==========        ==========        ==========        ==========

Net income per share, assuming dilution
  Numerator - net income ...................................        $      514        $      413        $    1,416        $    1,294
                                                                    ==========        ==========        ==========        ==========
  Denominator
     Weighted average common shares
       issued and outstanding ..............................         2,021,182         2,005,299         2,024,227         2,044,496
     Effect of dilutive stock options ......................           113,414           134,819           121,009           127,054
                                                                    ----------        ----------        ----------        ----------
               Total shares ................................         2,134,596         2,140,118         2,145,236         2,171,550
                                                                    ==========        ==========        ==========        ==========

               Net income per share,
                 assuming dilution .........................        $      .24        $      .19        $      .66        $      .59
                                                                    ==========        ==========        ==========        ==========
</Table>





                                       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 new 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
$514,000, or $.25 per share, for the third quarter, and $1,416,000,  or $.70 per
share, for the first nine months of 2001.  During 2000, the Company recorded net
income of $413,000 or $.21 per share for the third quarter,  and $1,294,000,  or
$.64 per share,  for the first  nine  months.  Net  income  per share,  assuming
dilution, for the three and nine month periods ended September 30, 2001 was $.24
and $.66,  respectively.  For the comparable 2000 periods, net income per share,
assuming dilution, was $.19 and $.59, respectively. Net income per share figures
for 2000  have  been  retroactively  adjusted  to  reflect  a 5% stock  dividend
effective December 15, 2000.

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 $51,000 ($77,000 FTE) in income from
tax-exempt  sources  during the first  nine  months of 2001 and $7,000 of income
($11,000 FTE) from those sources in the same period of 2000.

         For the third quarter of 2001, FTE net interest  income was $1,498,000,
an increase of $245,000 or 19.6% over the comparable 2000 period.  For the first
nine months of 2001,  FTE net  interest  income was  $4,147,000,  an increase of
$329,000 or 8.6% over the first nine months of 2000.  The  increases  in FTE net
interest income for the 2001 periods  resulted  primarily from larger amounts of
average  interest  earning  assets.  Those positive  effects were  significantly
offset by lower  rates  earned on such  assets  and  larger  amounts  of average
interest  bearing  liabilities.  Average interest earning assets during the 2001
nine-month  period were  $200,489,000,  an increase of $45,178,000 or 29.1% over
the  comparable  period of 2000.  Average loans for the 2001  nine-month  period
totaled  $103,455,000,  an increase of $19,810,000 or 23.7% over the same period
of  2000.  Average  federal  funds  sold  for the 2001  nine-month  period  were
$35,562,000,  an increase of $22,399,000 or 170.2% over the same period of 2000.
The average  yield on interest  earning  assets  decreased by 40 basis points to
7.18% for the 2001  nine-month  period.  Average  interest  bearing  liabilities
during the 2001 nine-month period were $168,356,000, representing an increase of
$39,076,000  or 30.2% over the amount for the same period of 2000.  Average time
deposits of $100,000 and over increased to $49,034,000  for the 2001  nine-month
period  from  $37,804,000  in the same prior  year  period.  Average  other time
deposits increased to $68,534,000 in the 2001 period,  compared with $45,644,000
in the 2000  period,  representing  an increase  of  $22,890,000  or 50.1%.  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
2001 was 1.93%.  The  comparable  figure  for the first nine  months of 2000 was
2.42%.  Net yield on earning  assets  (net  interest  income  divided by average
interest earning assets) was 2.77% for the first nine months of 2001, a decrease
of 51 basis points from 3.28% for the first nine months of 2000.

                                       9
<Page>

         Increases in interest earning assets and interest  bearing  liabilities
resulted from the Company's marketing strategies to increase its market share in
its local service areas in Anderson and Oconee  Counties of South  Carolina.  De
novo  branch  offices  opened in the City of  Anderson  in  January  1999 and in
Williamston,  South Carolina in the third quarter of 2000. In  conjunction  with
the opening of the Williamston  branch office,  the banking  subsidiary  offered
special promotional rates on certain certificate of deposit products,  primarily
in  the  Anderson  County  market.  The  Company  does  not  expect  significant
withdrawals of such  promotional  rate time deposits upon their maturity.  Total
time  deposits  attributed  to the  Anderson  County  market area  increased  by
approximately  $13,913,000 or 50.8% in the nine month period ended September 30,
2001, and by  approximately  $25,908,000 or 168% in the twelve month period then
ended.

         Interest  rates  continue  to be  affected  by  the  monetary  policies
implemented  through  the  actions of the  Federal  Reserve  Bank's  Open Market
Committee.  The Open Market Committee's  efforts to effect sustainable  economic
growth are ongoing and have contributed to interest rate volatility  during both
2001 and  2000.  Actions  taken by the Open  Market  Committee  influence,  with
varying degrees of  correlation,  the rates paid by the Company for deposits and
other interest  bearing  liabilities and the rates the Company is able to obtain
for  loans and other  investment  instruments.  At a  minimum,  the Open  Market
Committee's  actions  establish the general  direction  that such rates would be
expected to move as new investments and funding sources are obtained.

         In addition,  the events of, and continuing  since,  September 11, 2001
led the Open Market  Committee to move quickly and decisively to adjust interest
rates  downward  in an  effort to  provide a  stimulus  to the  faltering  U. S.
economy.  As a result,  short-term interest rates were pushed dramatically lower
and longer-term interest rates also are near historic lows. These factors likely
will impede the  Company's  ability to reverse  the  narrowing  of its  interest
spreads and margins in the near term.

Provision and Allowance for Loan Losses

         The provision  for loan losses  charged to expense was $135,000 for the
third quarter of 2001  compared with $70,000 for the third quarter of 2000,  and
totaled  $310,000 for the first nine months of 2001  compared  with $252,000 for
the  comparable  period of 2000. At September  30, 2001,  the allowance for loan
losses was .93% of loans,  compared  with 1.02% of loans at December  31,  2000.
During the 2001 nine-month  period, net charge-offs  totaled $281,000,  compared
with  $179,000  charged off during the same period of 2000.  As of September 30,
2001, there were $445,000 in nonaccrual loans and no loans over 90 days past due
and still  accruing  interest.  The amount of nonaccrual  loans at September 30,
2001 is $370,000  more than the amount at  September  30, 2000 and $20,000  more
than the amount of nonaccrual loans as of December 31, 2000. The majority of the
nonaccrual  loans are secured by 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.

         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, 2001.

Noninterest Income

         Noninterest  income  totaled  $258,000  for the third  quarter of 2001,
compared with $236,000 for the 2000 quarter. Noninterest income was $744,000 for
the first nine months of 2001 and $616,000 for the same 2000 period.  The higher
noninterest income in 2001 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 no
realized securities gains or losses in the 2001 or 2000 periods.

Noninterest Expenses

         Noninterest  expenses  totaled  $820,000 for the third quarter of 2001,
compared with $788,000 for the 2000 period,  representing an increase of $32,000
or 4.1%.  Noninterest expenses were $2,387,000 for the first nine months of 2001
compared  with  $2,167,000  for the same period of 2000.  Salaries  and employee
benefits for the 2001 quarter totaled $453,000,  an increase of $19,000 over the
2000  three  month  period.  For the first  nine  months of 2001,  salaries  and
employee  benefits  totaled  $1,295,000  representing an increase of $155,000 or
13.6% over the same  period of 2000.  This  increase  resulted  largely  from an
increase in number of employees associated with the Company's branch expansions,
normal  increases  in salaries and wages  granted from time to time,  and higher
costs of employment taxes and employee insurance  benefits.  During the 2001 and
2000  nine-month  periods,  no amounts were accrued  toward  year-end  incentive
bonuses.

         Occupancy and furniture and equipment expenses for the third quarter of
2001 totaled  $91,000,  a decrease of $22,000,  or 19.5% from the amount for the


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same period of 2000,  primarily due to lower  maintenance  contract costs.  Such
expenses  decreased  $2,000 during the first nine months of 2001. Other expenses
for the third quarter of 2001 were $35,000 or 14.5% greater than the  comparable
period of 2000.  Such expenses for the nine month period of 2001 were $67,000 or
9.6% more than for the same period of 2000.  During the 2001 nine-month  period,
the Company  incurred a loss on the sale of other real  estate of  $31,000.  The
Company  had no such  losses  in  2000.  Also,  expenses  incurred  in 2001  for
conventions  and meetings  increased by $24,000 over the 2000 amount,  primarily
due to increased strategic planning activity.

         Management anticipates that higher amounts of noninterest expenses will
continue during the remainder of 2001.

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,  2001,  the ratio of loans to total  deposits was
56.8%, compared with 59.4% as of December 31, 2000 and 62.5% as of September 30,
2000. The decrease in the loan-to-deposit ratio for 2001 is generally the result
of the volume of deposits  growing  faster than loans,  especially  in the newer
Anderson County market area.

         Deposits as of September  30, 2001  increased by  $30,880,000  or 18.8%
over the amount at December 31, 2000 and were  $49,985,000 or 34.4% greater than
their levels of September 30, 2000.  Again,  the  relatively  new  operations in
Anderson County contributed significantly to the increase in deposits.

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

Capital Resources

         The Company's equity capital increased by $1,927,000 since December 31,
2000 as the result of net  income of  $1,416,000  for the first  nine  months of
2001,  $44,000 added from the exercise of employee stock options,  plus $826,000
from  changes  in  unrealized  holding  gains and  losses on  available-for-sale
securities,  net of deferred tax effects,  less $359,000  expended to repurchase
and cancel 19,377 shares of the Company's outstanding common stock.

         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.




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         The September  30, 2001 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 ..............    13.5%       14.4%       7.6%
Community First Bank ........................    12.9%       13.8%       7.3%
Minimum "well-capitalized" requirement ......     6.0%       10.0%       5.0%
Minimum requirement .........................     4.0%        8.0%       3.0%




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                           PART II - OTHER INFORMATION

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

(a)      Exhibits                           None.



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




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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 9, 2001                          /s/ Frederick D. Shepherd, Jr.
-----------------                         --------------------------------------
         Date                              Frederick D. Shepherd, Jr., President
                                           and Chief Executive Officer (also
                                           principal accounting officer)




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