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

                                    FORM 10-Q

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

For Quarterly Period Ended March 31, 2008         Commission File No. 000-29640


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


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


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


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

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

         Yes [X]  No [ ]

         Indicate by check mark whether the  registrant  is a large  accelerated
filer, an accelerated  filer, a  non-accelerated  filer, or a smaller  reporting
company.  See the definitions of "large accelerated filer,"  "accelerated filer"
and "smaller reporting company" in Rule 12b-2 of the Exchange Act.
(Check one):
         Large accelerated filer    [ ]        Accelerated filer    [ ]

         Non-accelerated filer      [ ]        Smaller reporting company  [X]
         (Do not check if a smaller reporting company)

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

         Yes [ ]  No [X]

         Indicate  the  number of  shares  outstanding  of each of the  issuer's
classes of common stock, as of the latest practicable date: Common Stock, no par
or stated value, 3,359,203 Shares Outstanding on April 30, 2008



<PAGE>


                         COMMUNITY FIRST BANCORPORATION

                                    FORM 10-Q

                                      Index

<TABLE>
<CAPTION>
                                                                                                                     Page
PART I -          FINANCIAL INFORMATION

Item 1.           Financial Statements

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

Item 2.           Management's Discussion and Analysis of Financial Condition and Results of Operations                 8
Item 3.           Quantitative and Qualitative Disclosures About Market Risk                                           14
Item 4T.          Controls and Procedures                                                                              15

PART II -         OTHER INFORMATION

Item 6.           Exhibits                                                                                             15

SIGNATURE                                                                                                              16
</TABLE>




                                       2
<PAGE>


                         PART I - FINANCIAL INFORMATION

Item 1. - Financial Statements

COMMUNITY FIRST BANCORPORATION
Consolidated Balance Sheets
<TABLE>
<CAPTION>
                                                                                                      (Unaudited)
                                                                                                        March 31,       December 31,
                                                                                                           2008             2007
                                                                                                           -----            ----
                                                                                                            (Dollars in thousands)
Assets
<S>                                                                                                     <C>               <C>
     Cash and due from banks ...................................................................        $  10,258         $  10,272
     Interest bearing deposits due from banks ..................................................            1,146               165
     Federal funds sold ........................................................................           27,804            24,236
                                                                                                        ---------         ---------
         Cash and cash equivalents .............................................................           39,208            34,673
     Securities available-for-sale .............................................................          107,635            99,026
     Securities held-to-maturity (fair value $5,508 for 2008 and $5,625 for 2007) ..............            5,446             5,663
     Other investments .........................................................................              927               840
     Loans .....................................................................................          251,891           244,131
         Allowance for loan losses .............................................................           (2,598)           (2,574)
                                                                                                        ---------         ---------
            Loans - net ........................................................................          249,293           241,557
     Premises and equipment - net ..............................................................            8,879             8,621
     Accrued interest receivable ...............................................................            2,542             2,529
     Bank-owned life insurance .................................................................            8,201             7,108
     Other assets ..............................................................................            1,756             2,131
                                                                                                        ---------         ---------

            Total assets .......................................................................        $ 423,887         $ 402,148
                                                                                                        =========         =========

Liabilities
     Deposits
         Noninterest bearing ...................................................................        $  40,467         $  42,289
         Interest bearing ......................................................................          334,602           313,578
                                                                                                        ---------         ---------
            Total deposits .....................................................................          375,069           355,867
     Accrued interest payable ..................................................................            3,922             3,480
     Long-term debt ............................................................................            4,500             4,500
     Other liabilities .........................................................................              738               391
                                                                                                        ---------         ---------
            Total liabilities ..................................................................          384,229           364,238
                                                                                                        ---------         ---------

Shareholders' equity
     Common stock - no par value; 10,000,000 shares authorized; issued and
         outstanding - 3,359,203 for 2008 and
         3,324,105 for 2007 ....................................................................           35,189            35,009
     Additional paid-in capital ................................................................              681               681
     Retained earnings .........................................................................            3,100             2,140
     Accumulated other comprehensive income ....................................................              688                80
                                                                                                        ---------         ---------
            Total shareholders' equity .........................................................           39,658            37,910
                                                                                                        ---------         ---------

            Total liabilities and shareholders' equity .........................................        $ 423,887         $ 402,148
                                                                                                        =========         =========
</TABLE>


See accompanying notes to unaudited consolidated financial statements.


                                       3
<PAGE>

COMMUNITY FIRST BANCORPORATION
Consolidated Statements of Income
                                                              (Unaudited)
                                                           Three Months Ended
                                                                 March 31,
                                                              2008       2007
                                                             -----       ----
                                                          (Dollars in thousands,
                                                            except per share)
Interest income
     Loans, including fees ...............................   $4,732     $3,978
     Interest bearing deposits due from banks ............        2          1
     Securities
       Taxable ...........................................    1,017        938
       Tax-exempt ........................................      206        187
     Other investments ...................................       13         15
     Federal funds sold ..................................      386        542
                                                             ------     ------
         Total interest income ...........................    6,356      5,661
                                                             ------     ------

Interest expense
     Time deposits $100M and over ........................    1,153        918
     Other deposits ......................................    2,396      2,224
     Short-term borrowings ...............................        -          3
     Long-term debt ......................................       39         54
                                                             ------     ------
         Total interest expense ..........................    3,588      3,199
                                                             ------     ------

Net interest income ......................................    2,768      2,462
Provision for loan losses ................................      130          -
                                                             ------     ------
Net interest income after provision ......................    2,638      2,462
                                                             ------     ------

Other income
     Service charges on deposit accounts .................      360        334
     ATM interchange and other fees ......................      129        105
     Credit life insurance commissions ...................        4          7
     Increase in value of bank-owned life insurance ......       93          -
     Other income ........................................       23         40
                                                             ------     ------
         Total other income ..............................      609        486
                                                             ------     ------

Other expenses
     Salaries and employee benefits ......................    1,037        811
     Net occupancy expense ...............................      119         88
     Furniture and equipment expense .....................      110        102
     Amortization of computer software ...................       75         59
     ATM interchange and related expenses ................      110         70
     Other expense .......................................      436        404
                                                             ------     ------
         Total other expenses ............................    1,887      1,534
                                                             ------     ------

Income before income taxes ...............................    1,360      1,414
Income tax expense .......................................      400        457
                                                             ------     ------
Net income ...............................................   $  960     $  957
                                                             ======     ======

Per share*
     Net income ..........................................   $ 0.29     $ 0.31
     Net income, assuming dilution .......................     0.27       0.29
                                                                        ------
* Per share  information has been  retroactively  adjusted to reflect a 5% stock
dividend  effective  December  20,  2007.

See  accompanying  notes to unaudited consolidated financial statements.


                                       4
<PAGE>

COMMUNITY FIRST BANCORPORATION
Consolidated Statements of Changes in Shareholders' Equity

<TABLE>
<CAPTION>
                                                                      (Unaudited)

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

<S>                                                      <C>          <C>          <C>          <C>          <C>           <C>
Balance, January 1, 2007 ............................    2,958,558    $  30,061    $     593    $   3,285    $    (724)    $  33,215
                                                                                                                           ---------
Comprehensive income:
    Net income ......................................            -            -            -          957            -           957
                                                                                                                           ---------
    Unrealized holding gains and losses
      on available-for-sale securities
      arising during the period, net of
      income taxes of $114 ..........................            -            -            -            -          203           203
                                                                                                                           ---------
        Total other comprehensive income ............                                                                            203
                                                                                                                           ---------
          Total comprehensive income ................                                                                          1,160
                                                                                                                           ---------
Exercise of employee stock options ..................       13,860           76            -            -            -            76
                                                         ---------    ---------    ---------    ---------    ---------     ---------
Balance, March 31, 2007 .............................    2,972,418    $  30,137    $     593    $   4,242    $    (521)    $  34,451
                                                         =========    =========    =========    =========    =========     =========



Balance, January 1, 2008 ............................    3,324,105    $  35,009    $     681    $   2,140    $      80     $  37,910
                                                                                                                           ---------
Comprehensive income:
    Net income ......................................            -            -            -          960            -           960
                                                                                                                           ---------
    Unrealized holding gains and losses
      on available-for-sale securities
      arising during the period, net of
      income taxes of $340 ..........................            -            -            -            -          608           608
                                                                                                                           ---------
        Total other comprehensive income ............                                                                            608
                                                                                                                           ---------
          Total comprehensive income ................                                                                          1,568
                                                                                                                           ---------
Exercise of employee stock options ..................       35,098          180            -            -            -           180
                                                         ---------    ---------    ---------    ---------    ---------     ---------
Balance, March 31, 2008 .............................    3,359,203    $  35,189    $     681    $   3,100    $     688     $  39,658
                                                         =========    =========    =========    =========    =========     =========
</TABLE>

















See accompanying notes to unaudited consolidated financial statements.


                                       5
<PAGE>

COMMUNITY FIRST BANCORPORATION
Consolidated Statements of Cash Flows
<TABLE>
<CAPTION>
                                                                                                                (Unaudited)
                                                                                                            Three Months Ended
                                                                                                                 March 31,
                                                                                                         2008                 2007
                                                                                                         ----                 ----
                                                                                                          (Dollars in thousands)
Operating activities
<S>                                                                                                     <C>                <C>
     Net income ..............................................................................          $    960           $    957
     Adjustments to reconcile net income to net
         cash provided by operating activities
            Provision for loan losses ........................................................               130                  -
            Depreciation .....................................................................               112                 88
            Amortization of net loan fees and costs ..........................................               (58)               (72)
            Securities accretion and premium amortization ....................................                 6                 27
            Loss on sale of foreclosed assets ................................................                 6                  -
            Increase in cash surrender value of bank-owned life insurance ....................               (93)                 -
            (Increase) decrease in interest receivable .......................................               (13)                98
            Increase in interest payable .....................................................               442                317
            (Increase) decrease in prepaid expenses and other assets .........................                (5)               251
            Increase in other accrued expenses ...............................................               347                344
                                                                                                        --------           --------
                Net cash provided by operating activities ....................................             1,834              2,010
                                                                                                        --------           --------

Investing activities
     Purchases of available-for-sale securities ..............................................           (22,296)            (5,058)
     Maturities, calls and paydowns of securities available-for-sale .........................            14,627              9,669
     Maturities, calls and paydowns of securities held-to-maturity ...........................               219                235
     Purchases of other investments ..........................................................               (87)                 -
     Disposals of other investments ..........................................................                 -                  5
     Net increase in loans made to customers .................................................            (7,808)            (9,060)
     Purchases of premises and equipment .....................................................              (370)               (55)
     Proceeds of sale of foreclosed assets ...................................................                34                  -
     Investment in bank-owned life insurance .................................................            (1,000)                 -
                                                                                                        --------           --------
                Net cash used by investing activities ........................................           (16,681)            (4,264)
                                                                                                        --------           --------

Financing activities
     Net increase in demand deposits, interest
         bearing transaction accounts and savings accounts ...................................             5,619              4,366
     Net increase in certificates of deposit and other
         time deposits .......................................................................            13,583             19,706
     Decrease in short-term borrowings .......................................................                 -             (4,500)
     Exercise of employee stock options ......................................................               180                 76
                                                                                                        --------           --------
                Net cash provided by financing activities ....................................            19,382             19,648
                                                                                                        --------           --------
Increase in cash and cash equivalents ........................................................             4,535             17,394
Cash and cash equivalents, beginning .........................................................            34,673             31,145
                                                                                                        --------           --------
Cash and cash equivalents, ending ............................................................          $ 39,208           $ 48,539
                                                                                                        ========           ========

Supplemental Disclosure of Cash Flow Information
     Cash paid during the period for
         Interest, net of $15 capitalized during construction in 2007 ........................          $  3,145           $  2,882
         Income taxes ........................................................................                 -                  -
     Noncash investing and financing activities:
         Other comprehensive income ..........................................................               608                203
</TABLE>

See accompanying notes to unaudited consolidated financial statements.


                                       6
<PAGE>

COMMUNITY FIRST BANCORPORATION

Notes to Unaudited Consolidated Financial Statements

Accounting  Policies - A summary of significant  accounting policies is included
in Community First  Bancorporation's  (the "Company") Annual Report on Form 10-K
for the year ended  December  31, 2007 filed with the  Securities  and  Exchange
Commission.   Certain  amounts  in  the  2007  financial  statements  have  been
reclassified to conform to the current presentation.

Management  Opinion - In the opinion of management,  the accompanying  unaudited
consolidated  financial statements of Community First Bancorporation reflect all
adjustments  necessary  for a fair  presentation  of the  results of the periods
presented. Such adjustments were of a normal, recurring nature.

Nonperforming  Loans - As of March 31, 2008,  there were  $444,000 in nonaccrual
loans and no loans 90 days or more past due and still accruing interest.

Earnings Per Share - Basic earnings per common share is computed by dividing net
income  applicable  to common  shares by the weighted  average  number of common
shares  outstanding.   Diluted  earnings  per  share  is  computed  by  dividing
applicable  net  income  by  the  weighted   average  number  of  common  shares
outstanding and any dilutive potential common shares and dilutive stock options.
It is assumed that all dilutive  stock options are exercised at the beginning of
each period and that the proceeds are used to purchase  shares of the  Company's
common stock at the average  market price during the period.  All 2007 per share
information  has  been  retroactively  adjusted  to give  effect  to a 5%  stock
dividend  effective  December 20, 2007.  Net income per share and net income per
share, assuming dilution, were computed as follows:

<TABLE>
<CAPTION>
                                                                                                          (Unaudited)
                                                                                                        Three Months Ended
                                                                                                             March 31,
                                                                                                     2008                 2007
                                                                                                     ----                 ----
                                                                                                         (Dollars in thousands,
                                                                                                        except per share amounts)

Net income per share, basic
<S>                                                                                               <C>                     <C>
  Numerator - net income ...........................................................              $      960              $      957
                                                                                                  ==========              ==========
  Denominator
    Weighted average common shares issued and outstanding ..........................               3,340,304               3,117,791
                                                                                                  ==========              ==========
               Net income per share, basic .........................................              $      .29              $      .31
                                                                                                  ==========              ==========

Net income per share, assuming dilution
  Numerator - net income ...........................................................              $      960              $      957
                                                                                                  ==========              ==========
  Denominator
    Weighted average common shares issued and outstanding ..........................               3,340,304               3,117,791
    Effect of dilutive stock options ...............................................                 169,524                 231,179
                                                                                                  ----------              ----------
               Total shares ........................................................               3,509,828               3,348,970
                                                                                                  ==========              ==========
               Net income per share, assuming dilution .............................              $      .27              $      .29
                                                                                                  ==========              ==========
</TABLE>

Stock-Based Compensation - As of March 31, 2008, the Company had two stock-based
compensation plans.  Effective January 1, 2006, the Company began accounting for
compensation  expenses  related  to  stock  options  granted  to  employees  and
non-employee  directors  under the  recognition  and  measurement  principles of


                                       7
<PAGE>
Statement of Financial Accounting Standards No. 123 (revised 2004), "Share-Based
Payment" using the modified prospective application method.

New Accounting  Pronouncements - The Financial  Accounting Standards Board ("the
FASB")  issued  Statement of Financial  Accounting  Standards  No. 159 "The Fair
Value Option for Financial Assets and Financial  Liabilities"  ("SFAS No. 159"),
which was effective for the Company as of January 1, 2008.  Under the provisions
of SFAS No. 159,  entities  may choose,  but are not  required,  to measure many
financial instruments and certain other items at their fair values, with changes
in the fair values of those  instruments  reported in earnings.  The Company has
not elected to value any  financial  assets or  liabilities  under SFAS No. 159.
Therefore, the adoption of SFAS No. 159 had no effect on the Company's financial
statements.

In December 2007, the FASB issued  Statement of Financial  Accounting  Standards
No. 160  "Noncontrolling  Interests in  Consolidated  Financial  Statements,  an
amendment of ARB No. 51" ("SFAS No.  160").  SFAS No. 160 is effective for years
beginning  after  December 31,  2008,  and is to be applied  prospectively  with
retrospective presentation and disclosure requirements for comparative financial
statements.  Early  adoption  is  prohibited.  SFAS No. 160 seeks to improve the
relevance,  comparability  and  transparency  of  financial  information  that a
reporting entity provides in its consolidated financial statements by separately
identifying and reporting  several financial  statement  components into amounts
that are  attributable  to the  reporting  entity  or that are  attributable  to
noncontrolling interests. SFAS No. 160 also specifies the conditions under which
an entity is required to deconsolidate its interest in a subsidiary. The Company
currently has no consolidated subsidiaries that are not wholly owned nor are any
transactions  contemplated that would result in such a condition.  Therefore, it
is  expected  that the  adoption  of SFAS No. 160 in  January  2009 will have no
effect on the Company's consolidated financial statements.

Fair  Value  Measurements  - The  Company  implemented  Statement  of  Financial
Accounting  Standards No. 157,  "Fair Value  Measurements,"  ("SFAS No. 157") as
required on January 1, 2008.  SFAS No. 157 defines  fair value as the price that
would be received to sell an asset or paid to transfer a liability in an orderly
fashion between market  participants at the measurement  date, and establishes a
framework for measuring fair value. It also establishes a three-level  hierarchy
for fair  value  measurements  based  upon the  transparency  of  inputs  to the
valuation of an asset or liability as of the  measurement  date,  eliminates the
consideration of large position  discounts for financial  instruments  quoted in
active markets,  requires  consideration of the Company's  creditworthiness when
valuing its liabilities,  and expands disclosures about instruments  measured at
fair value. The following is a summary of the measurement  attributes applicable
to  financial  assets  and  liabilities  that are  measured  at fair  value on a
recurring basis:
<TABLE>
<CAPTION>
                                                    Fair Value Measurement at Reporting Date Using
                                                    ----------------------------------------------
                                                   Quoted Prices
                                                     in Active         Significant
                                                    Markets for           Other           Significant
                                                     Identical         Observable        Unobservable
                                                       Assets            Inputs             Inputs
Description                     March 31, 2008       (Level 1)         (Level 2)          (Level 3)
-----------                     --------------       ----------        ----------         ---------
                                                                 (Dollars in thousands)
<S>                                                   <C>              <C>                 <C>
Securities available-for-sale                         $     -          $ 107,635           $      -
</TABLE>

Pricing for the  Company's  securities  available-for-sale  is obtained  from an
independent  third-party that uses a process that may incorporate current market
prices,  benchmark  yields,  broker/dealer  quotes,  issuer  spreads,  two-sided
markets,  benchmark securities,  bids, offers, other reference data and industry
and  economic  events  that a market  participant  would be  expected  to use in
valuing the  securities.  Not all of the inputs listed apply to each  individual
security at each measurement  date. The independent third party assigns specific
securities  into an "asset  class" for the purpose of assigning  the  applicable
level of the fair value hierarchy used to value the  securities.  The techniques
used  after  adoption  of SFAS No.  157 are  consistent  with the  methods  used
previously.

In February 2008,  the Financial  Accounting  Standards  Board Staff issued FASB
Staff  Position  No.  FAS 157-2  ("FSP  157-2")  which  delays  for one year the
effective date of the application of Statement of Financial Accounting Standards
No. 157 "Fair Value  Measurements"  ("SFAS No. 157") to nonfinancial  assets and
liabilities,  except for items that are recognized or disclosed at fair value in
the financial statements on a recurring basis (at least annually). In accordance
with FSP 157-2,  the Company has only partially  applied SFAS No. 157. There are
currently no major  categories of assets or liabilities  disclosed at fair value
in the financial statements for which the Company has not applied the provisions
of SFAS No. 157.

No cumulative effect adjustments were required upon initial  application of SFAS
No.  157.  Available-for-sale  securities  continue to be measured at fair value
with unrealized gains and losses recorded in other comprehensive income.

                                       8
<PAGE>

          CAUTIONARY NOTICE WITH RESPECT TO FORWARD-LOOKING STATEMENTS

         This report contains "forward-looking statements" within the meaning of
the  securities  laws.  The  Private  Securities  Litigation  Reform Act of 1995
provides a safe harbor for forward-looking  statements.  In order to comply with
the terms of the safe harbor,  the Company notes that a variety of factors could
cause the Company's actual results and experience to differ  materially from the
anticipated   results  or  other   expectations   expressed  in  the   Company's
forwarding-looking statements.

         All statements that are not historical  facts are statements that could
be  "forward-looking   statements."  You  can  identify  these   forward-looking
statements  through the use of words such as "may," "will,"  "should,"  "could,"
"would," "expect,"  "anticipate,"  "assume," indicate,"  "contemplate,"  "seek,"
"plan,"  "predict,"  "target,"  "potential,"  "believe,"  "intend,"  "estimate,"
"project,"  "continue,"  or  other  similar  words.  Forward-looking  statements
include,  but are not limited to,  statements  regarding  the  Company's  future
business  prospects,   revenues,  working  capital,  liquidity,  capital  needs,
interest costs, income, business operations and proposed services.

         These  forward-looking  statements  are based on current  expectations,
estimates and projections about the banking industry,  management's beliefs, and
assumptions made by management.  Such information includes,  without limitation,
discussions  as to estimates,  expectations,  beliefs,  plans,  strategies,  and
objectives  concerning  future  financial  and  operating   performance.   These
statements  are not guarantees of future  performance  and are subject to risks,
uncertainties and assumptions that are difficult to predict.  Therefore,  actual
results  may  differ  materially  from those  expressed  or  forecasted  in such
forward-looking  statements.  The risks and uncertainties  include,  but are not
limited to:

          o    future economic and business conditions;
          o    lack of sustained growth in the economies of the Company's market
               areas;
          o    government monetary and fiscal policies;
          o    the  effects  of  changes  in  interest   rates  on  the  levels,
               composition and costs of deposits, loan demand, and the values of
               loan collateral,  securities,  and interest  sensitive assets and
               liabilities;
          o    the  effects  of  competition  from  a  wide  variety  of  local,
               regional, national and other providers of financial,  investment,
               and insurance services, as well as competitors that offer banking
               products and  services by mail,  telephone,  computer  and/or the
               Internet;
          o    credit risks;
          o    the failure of assumptions  underlying the  establishment  of the
               allowance  for loan  losses and other  estimates,  including  the
               value of collateral securing loans;
          o    the risks of opening new offices, including,  without limitation,
               the related costs and time of building customer relationships and
               integrating operations as part of these endeavors and the failure
               to achieve expected gains,  revenue growth and/or expense savings
               from such endeavors;
          o    changes  in laws and  regulations,  including  tax,  banking  and
               securities laws and regulations;
          o    changes in accounting policies, rules and practices;
          o    changes  in  technology  or  products  may be more  difficult  or
               costly, or less effective, than anticipated;
          o    the effects of war or other conflicts, acts of terrorism or other
               catastrophic  events that may affect general economic  conditions
               and economic confidence; and
          o    other factors and information described in this report and in any
               of the  other  reports  that  we file  with  the  Securities  and
               Exchange Commission under the Securities Exchange Act of 1934.

         All  forward-looking   statements  are  expressly  qualified  in  their
entirety by this cautionary notice. The Company has no obligation,  and does not
undertake,  to update,  revise or correct any of the forward-looking  statements
after the date of this  report.  The Company  has  expressed  its  expectations,
beliefs and projections in good faith and believes they have a reasonable basis.
However,  there is no assurance that these expectations,  beliefs or projections
will result or be achieved or accomplished.

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

Changes in Financial Condition

         During  the first  three  months  of 2008,  interest  bearing  deposits
increased  by   $21,024,000,   or  6.7%.   Certificates  of  deposit  issued  in
denominations  of  $100,000  or more grew by  $10,855,000,  or 11.2%  during the
period,  primarily due to activity generated by local government  bodies.  These
funds were used primarily to fund growth in securities available-for-sale.  Loan


                                       9
<PAGE>

growth was funded  primarily  by  increases in  non-governmental  deposits.  The
Company  believes  its higher  federal  funds sold  position  gives it increased
flexibility  to  fund  loan  requests  or  make  investments  in  securities  at
attractive  yields,  and to meet normal  demands for deposit  withdrawals by its
customers,  while maintaining its exposure to future interest rate changes at an
acceptable level.

Results of Operations

         The Company  recorded  consolidated  net income of $960,000 or $.29 per
share for the first quarter of 2008 compared  with  $957,000,  or $.31 per share
for the first quarter of 2007. Net income per share,  assuming dilution was $.27
for the 2008 period and $.29 for the 2007 period.  Net income per share  amounts
for 2007 have been  retroactively  adjusted  to  reflect  a five  percent  stock
dividend effective December 20, 2007.

<TABLE>
<CAPTION>
                                                                                 Summary Income Statement
                                                                                 ------------------------
                                                                                  (Dollars in thousands)
For the Three Months Ended March 31,                        2008               2007           Dollar Change   Percentage Change
                                                            ----               ----           -------------   -----------------
<S>                                                       <C>                 <C>                 <C>               <C>
Interest income ....................................      $6,356              $5,661              $  695            12.3%
Interest expense ...................................       3,588               3,199                 389            12.2%
                                                          ------              ------               -----
Net interest income ................................       2,768               2,462                 306            12.4%
Provision for loan losses ..........................         130                   -                 130               NA
Noninterest income .................................         609                 486                 123            25.3%
Noninterest expenses ...............................       1,887               1,534                 353            23.0%
Income tax expense .................................         400                 457                 (57)          -12.5%
                                                          ------              ------               -----
Net income .........................................      $  960              $  957              $    3             0.3%
                                                          ======              ======               =====
</TABLE>

Net Interest Income

         Net interest income is the principal source of the Company's  earnings.
For the first  quarter of 2008,  net  interest  income  totaled  $2,768,000,  an
increase of  $306,000 or 12.4% over the amount for the same period of 2007.  The
yield  on  interest  earning  assets  decreased  to 6.26%  for the 2008  period,
compared  with 6.39% for the 2007 period and the average rates paid for interest
bearing liabilities were 4.09% and 4.34%, respectively. Accordingly, the average
interest rate spread for the 2008 period was 12 basis points higher than for the
2007 period. Net yield on earning assets decreased,  however, in the 2008 period
to 2.73% from 2.78% for the 2007 period  because  interest  bearing  liabilities
grew at a higher rate than earning assets.

         Average  loans in the 2008  period  were  $250,255,000,  an increase of
$42,257,000,  or 20.3%,  over the amount for the same period of 2007. The higher
loan volume was  primarily  responsible  for the  increase  in interest  income.
Likewise,  higher  average  amounts of time  deposits were  responsible  for the
higher interest expense in 2008.

         During the three months ended March 31, 2008, the Federal Reserve Board
reduced  its  federal  funds  target  and  discount   window   borrowing   rates
precipitously. In addition to lowering those interest rates, the Federal Reserve
Board also prevented the collapse of a major brokerage firm by facilitating  its
acquisition  by a  multinational  bank,  opened its discount  window to non-bank
financial  institutions,  and  initiated a program  whereby it lends US Treasury
securities and accepts other  lesser-quality  securities as  collateral.  All of
these  measures  were  undertaken  in an effort to overcome the  illiquidity  of
certain securities and to ensure that credit is available for new investments.

         In response to the actions of the Federal Reserve Board, overall market
interest  rates declined  during the first quarter of 2008. The Company  lowered
the rates  offered  for  deposits  and lower rates were  accepted on  investment
securities  purchased  during  the  period  and on loans  originated  during the
period. In addition,  many of the Company's pre-existing loans are variable rate
loans with interest  rates indexed to the prime rate.  Changes in the prime rate
occur almost simultaneously with changes made by the Federal Reserve Board.



                                       10
<PAGE>

<TABLE>
<CAPTION>
                                                                 Average Balances, Yields and Rates
                                                                    Three Months Ended March 31,
                                                                    ----------------------------
                                                            2008                                    2007
                                                            ----                                    ----
                                                          Interest                                Interest
                                               Average     Income/     Yields/         Average     Income/     Yields/
                                               Balances    Expense      Rates (1)     Balances     Expense    Rates (1)
                                               --------    -------      ---------     --------     -------    ---------
                                                                             (Dollars in thousands)
Assets
<S>                                             <C>          <C>           <C>         <C>           <C>          <C>
Interest-bearing deposits due from banks ....   $     415    $     2       1.94%       $      65     $     1       6.24%
Securities
     Taxable ................................      88,070      1,017       4.64%          88,406         938       4.30%
     Tax exempt (2) .........................      20,613        206       4.02%          19,692         187       3.85%
                                                ---------    -------                   ---------     -------
         Total investment securities ........     108,683      1,223       4.53%         108,098       1,125       4.22%
Other investments ...........................         846         13       6.18%             980          15       6.21%
Federal funds sold ..........................      48,050        386       3.23%          42,231         542       5.20%
Loans (2) (3) ...............................     250,255      4,732       7.61%         207,998       3,978       7.76%
                                                ---------    -------                   ---------     -------
         Total interest earning assets ......     408,249      6,356       6.26%         359,372       5,661       6.39%
Cash and due from banks .....................       8,250                                  7,684
Allowance for loan losses ...................      (2,581)                                (2,228)
Unrealized securities gains (losses) ........         778                                 (1,216)
Premises and equipment ......................       8,842                                  7,907
Other assets ................................      12,196                                  3,788
                                                ---------                              ---------
         Total assets .......................   $ 435,734                              $ 375,307
                                                =========                              =========

Liabilities and shareholders' equity
Interest bearing deposits
     Interest bearing transaction accounts ..   $  59,745    $   335       2.26%       $  55,233     $   433       3.18%
     Savings ................................      42,225        209       1.99%          40,297         353       3.55%
     Time deposits $100M and over ...........     103,047      1,153       4.50%          80,238         918       4.64%
     Other time deposits ....................     143,297      1,852       5.20%         117,466       1,438       4.96%
                                                ---------    -------                   ---------     -------
         Total interest bearing
           deposits .........................     348,314      3,549       4.10%         293,234       3,142       4.35%
Short-term borrowings .......................           -          -       0.00%              50           3      24.33%
Long-term debt ..............................       4,500         39       3.49%           5,500          54       3.98%
                                                ---------    -------                   ---------     -------
         Total interest bearing
           liabilities ......................     352,814      3,588       4.09%         298,784       3,199       4.34%
Noninterest bearing demand deposits .........      39,777                                 39,691
Other liabilities ...........................       4,327                                  3,178
Shareholders' equity ........................      38,816                                 33,654
                                                ---------                              ---------
Total liabilities and shareholders'
     equity .................................   $ 435,734                              $ 375,307
                                                =========                              =========
Interest rate spread ........................                              2.17%                                   2.05%
Net interest income and net yield
     on earning assets ......................                $ 2,768       2.73%                     $ 2,462       2.78%
Interest free funds supporting earning
     assets .................................    $ 55,435                               $ 60,588
</TABLE>
-----------------------------------------
(1)  Yields and rates are annualized
(2)  Yields on tax exempt instruments have not been adjusted to a tax-equivalent
     basis.
(3)  Nonaccruing  loans are  included  in the loan  balance and income from such
     loans is recognized  on a cash basis.  The amounts of such loans and income
     are not material.


                                       11
<PAGE>

         The  Company  continues  to  pursue  strategies  that are  expected  to
increase  its market  share in its local  market  areas in  Anderson  and Oconee
Counties of South  Carolina.  The Company serves Oconee County from four offices
which are located in Seneca,  Walhalla and  Westminster.  The Company serves the
Anderson County market from offices in Anderson and Williamston.

Provision and Allowance for Loan Losses

         The Company  provided  $130,000 for loan losses in the first quarter of
2008. No provision for loan losses was made during the 2007 first quarter. As of
March 31, 2008,  the allowance for loan losses was 1.03% of loans  compared with
1.05% of loans at December 31,  2007.  During the 2008 three month  period,  net
charge-offs  totaled  $106,000,  compared with $45,000 in net charge offs during
the same period of 2007. As of March 31, 2008, nonaccrual loans totaled $444,000
and there were no loans 90 days or more past due and still accruing interest. As
of March 31, 2007,  there was $193,000 in nonaccrual  loans and no loans 90 days
or more past due and still accruing interest.  The activity in the allowance for
loan losses is summarized in the table below:

<TABLE>
<CAPTION>
                                                                           Three Months                                 Three Months
                                                                               Ended              Year Ended               Ended
                                                                             March 31,           December 31,            March 31,
                                                                               2008                  2007                   2007
                                                                               ----                  ----                   ----
                                                                                              (Dollars in thousands)
<S>                                                                          <C>                   <C>                   <C>
Allowance at beginning of period .................................           $   2,574             $   2,242             $   2,242
Provision for loan losses ........................................                 130                   594                     -
Net charge-offs ..................................................                (106)                 (262)                  (45)
                                                                             ---------             ---------             ---------
Allowance at end of period .......................................           $   2,598             $   2,574             $   2,197
                                                                             =========             =========             =========
Allowance as a percentage of loans outstanding
  at period end ..................................................                1.03%                 1.05%                 1.04%
Loans at end of period ...........................................           $ 251,891             $ 244,131             $ 212,053
                                                                             =========             =========             =========
</TABLE>



                                       12
<PAGE>


Non-Performing and Potential Problem Loans

<TABLE>
<CAPTION>
                                                          90 Days or
                                                         More Past Due     Total         Percentage                      Percentage
                                          Non-accrual     and Still    Non-Performing     of Total      Potential          of Total
                                             Loans        Accruing         Loans            Loans     Problem Loans         Loans
                                             -----        --------         -----            -----     -------------         -----
                                                                           (Dollars in thousands)
<S>                                         <C>             <C>          <C>                 <C>         <C>                <C>
January 1, 2007 ......................      $    50         $  -         $    50             0.02%       $ 3,176            1.56%
Net change ...........................          143            -             143                            (151)
                                            -------         ----         -------                         -------
March 31, 2007 .......................          193            -             193             0.09%         3,025            1.43%
Net change ...........................          219            -             219                              97
                                            -------         ----         -------                         -------
June 30, 2007 ........................          412            -             412             0.18%         3,122            1.38%
Net change ...........................           14            -              14                             106
                                            -------         ----         -------                         -------
September 30, 2007 ...................          426            -             426             0.18%         3,228            1.36%
Net change ...........................          199            -             199                            (140)
                                            -------         ----         -------                         -------
December 31, 2007 ....................          625            -             625             0.26%         3,088            1.26%
Net change ...........................         (181)           -            (181)                            962
                                            -------         ----         -------                         -------
March 31, 2008 .......................      $   444         $  -         $   444             0.18%       $ 4,050            1.61%
                                            =======         ====         =======                         =======
</TABLE>

         Potential problem loans include loans, other than non-performing loans,
that management has identified as having possible credit problems  sufficient to
cast  doubt upon the  abilities  of the  borrowers  to comply  with the  current
repayment terms. However, the amount of potential problem loans does not reflect
management's  expectations  of losses,  if any,  that may be realized from those
loans.  As of March  31,  2008,  approximately  81.7% of the  dollar  amount  of
potential  problem  loans was  secured  by real  estate,  13.7% was  secured  by
vehicles and other  collateral,  and  approximately  4.6% represented  unsecured
loans.

         Management  believes that the economies of its market areas are strong.
However,  continuing  increases in prices for fuel and food, declining values of
homes and other real  properties,  declining  demand for  products  manufactured
locally,  and other  events  could  have an  adverse  effect on those  areas and
potentially  lead to a  deterioration  of the  abilities of the  Company's  loan
customers to repay their debts, resulting in higher loan losses.

Noninterest Income

         Noninterest  income  totaled  $609,000  for the first  quarter of 2008,
compared with $486,000 for the first quarter of 2007. Service charges on deposit
accounts in the 2008 period were  $360,000  representing  an increase of $26,000
over the prior year period.  ATM  interchange and other fees for the 2008 period
increased by $24,000 over the 2007 amount. Increases in the cash surrender value
of bank-owned life insurance  assets totaled  $93,000 in the 2008 period.  There
was no such activity in the same 2007 period.

Noninterest Expenses

         Noninterest  expenses totaled $1,887,000 for the first quarter of 2008,
compared with $1,534,000 for the first quarter of 2007, representing an increase
of $353,000 or 23.0%.  Salaries and employee benefits increased by $226,000,  or
27.9%,  to  $1,037,000.  Amounts  accrued in  recognition  of  certain  deferred
compensation  and other benefits  totaled  $139,000 in the 2008 period;  no such
expenses were recorded in the same 2007 period.  Normal  increases in employees'
salaries  and the opening of the new Highway 81 office in the fourth  quarter of
2007 also contributed to the higher amounts of salaries and benefits.

         Occupancy and furniture and equipment expenses for the first quarter of
2008  increased by $39,000  compared with the 2007 period,  primarily due to the
opening of the Company's new Highway 81, Anderson,  office in the fourth quarter
of 2007.

         Income tax expense for the first  quarter of 2008  decreased by $57,000
from the amount of the same period of 2007 due to lower net income before income
taxes and higher amounts of tax-exempt investment income.



                                       13
<PAGE>

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  is the Company's  principal  source of secondary
asset  liquidity.  However,  the  availability  of this source is  influenced by
market conditions.  Individual and commercial deposits are the Company's primary
source of funds for credit activities.  The Company also has significant amounts
of  credit  availability  under  its FHLB  lines of  credit  and  federal  funds
purchased facilities.

         As of March 31, 2008,  the ratio of loans to total  deposits was 67.2%,
compared with 68.6% as of December 31, 2007. Total deposits as of March 31, 2008
were  $375,069,000,  an  increase of  $19,202,000  or 5.4% over the amount as of
December 31, 2007.  Management believes that the Company's liquidity sources are
adequate to meet its operating needs.

Capital Resources

         The Company's  capital base increased by $1,748,000  since December 31,
2007 as the result of net income of $960,000 for the first three months of 2008,
plus a $608,000  change in  unrealized  gains and  losses on  available-for-sale
securities,  net of deferred income tax effects,  and $180,000 from the exercise
of employee stock options.

         The  Company  and its banking  subsidiary  (the  "Bank") are subject to
regulatory  risk-based capital adequacy standards.  Under these standards,  bank
holding  companies and banks are required to maintain  certain minimum ratios of
capital to risk-weighted  assets and average total assets.  Under the provisions
of the Federal Deposit Insurance  Corporation  Improvement Act of 1991 (FDICIA),
federal bank regulatory authorities are required to implement prescribed "prompt
corrective actions" upon the deterioration of the capital position of a bank. If
the  capital  position  of an affected  institution  were to fall below  certain
levels, increasingly stringent regulatory corrective actions are mandated.

         The March 31,  2008 risk based  capital  ratios for the Company and the
Bank are presented in the following table,  compared with the "well capitalized"
(Bank only) and minimum ratios under the regulatory definitions and guidelines:

                                                         Total
                                            Tier 1      Capital     Leverage
                                            ------      -------     --------
Community First Bancorporation               13.8%       14.7%         9.0%
Community First Bank                         13.1%       14.0%         8.6%
Minimum "well-capitalized" requirement        6.0%       10.0%         6.0%
Minimum requirement                           4.0%        8.0%         5.0%


Off-Balance-Sheet Arrangements

In the normal course of business,  the Bank is a 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.



                                       14
<PAGE>

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

                                                       March 31, 2008
                                                       --------------
                                                        (Dollars in
                                                         thousands)
Loan commitments ....................................     $ 32,867
Standby letters of credit ...........................        1,064


Loan commitments involve agreements to lend to a customer as long as there is no
violation of any condition  established in the contract.  Commitments  generally
have  fixed  expiration  dates or other  termination  clauses  and some  involve
payment of a fee. Many of the  commitments  are expected to expire without being
fully  drawn;  therefore,   the  total  amount  of  loan  commitments  does  not
necessarily represent future cash requirements. Each customer's creditworthiness
is evaluated on a case-by-case basis. The amount of collateral obtained, if any,
upon  extension  of credit is based on  management's  credit  evaluation  of the
borrower. Collateral held varies but may include commercial and residential real
properties, accounts receivable, inventory and equipment.

Standby  letters  of  credit  are  conditional   commitments  to  guarantee  the
performance of a customer to a third party.  The credit risk involved in issuing
standby  letters  of  credit  is the  same  as  that  involved  in  making  loan
commitments to customers. Many letters of credit will expire without being drawn
upon  and do not  necessarily  represent  future  cash  requirements.  The  Bank
receives fees for loan commitments and standby letters of credit.  The amount of
such fees was not material for the three months ended March 31, 2008.

As described under "Liquidity,"  management believes that its various sources of
liquidity  provide  the  resources  necessary  for the  Bank to  fund  the  loan
commitments and to perform under standby letters of credit,  if the need arises.
Neither  the  Company  nor the  Bank is  involved  in  other  off-balance  sheet
contractual  relationships or transactions  that could result in liquidity needs
or other commitments or significantly impact earnings.

Item 3.  - Quantitative and Qualitative Disclosures About Market Risk

        Not required for smaller reporting companies.

                                       15
<PAGE>

Item 4T. - Controls and Procedures

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

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


                           PART II - OTHER INFORMATION

Item 6. - Exhibits

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

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




                                       16
<PAGE>

SIGNATURE

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


                                    COMMUNITY FIRST BANCORPORATION

May 13, 2008                        /s/ Frederick D. Shepherd, Jr.
-----------------                   --------------------------------------------
         Date                        Frederick D. Shepherd, Jr., Chief Executive
                                     Officer and Chief Financial Officer


                                       17
<PAGE>

                                  EXHIBIT INDEX


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

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





                                       18