U. S. 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 June 30, 2004           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, 2,407,283 Shares Outstanding on July 31, 2004.

Transitional Small Business Disclosure 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

Item 3.    Controls and Procedures ........................................   12

PART II -  OTHER INFORMATION

Item 4.    Submission of Matters to a Vote of Security Holders ............   13

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)
                                                                                                      June 30,          December 31,
                                                                                                        2004               2003
                                                                                                        ----               ----
                                                                                                          (Dollars in thousands)
Assets
<S>                                                                                                  <C>                  <C>
     Cash and due from banks .............................................................           $   4,887            $   7,560
     Interest bearing deposits due from banks ............................................                  20                   29
     Federal funds sold ..................................................................              17,156               31,916
     Securities available-for-sale .......................................................             105,925               86,023
     Securities held-to-maturity (estimated fair value of $9,949) ........................               9,950                    -
     Other investments ...................................................................                 897                  750
     Loans ...............................................................................             149,662              147,650
         Allowance for loan losses .......................................................              (2,240)              (2,197)
                                                                                                     ---------            ---------
            Loans - net ..................................................................             147,422              145,453
     Premises and equipment - net ........................................................               4,353                4,454
     Accrued interest receivable .........................................................               1,400                1,424
     Other assets ........................................................................               3,118                2,917
                                                                                                     ---------            ---------

            Total assets .................................................................           $ 295,128            $ 280,526
                                                                                                     =========            =========

Liabilities
     Deposits
         Noninterest bearing .............................................................           $  31,330            $  32,273
         Interest bearing ................................................................             228,912              224,278
                                                                                                     ---------            ---------
            Total deposits ...............................................................             260,242              256,551
     Short-term borrowings ...............................................................               2,500                    -
     Long-term debt ......................................................................               7,500                    -
     Accrued interest payable ............................................................               1,463                1,357
     Other liabilities ...................................................................                 302                   81
                                                                                                     ---------            ---------
            Total liabilities ............................................................             272,007              257,989
                                                                                                     ---------            ---------

Shareholders' equity
     Common stock - no par value; 10,000,000 shares authorized;
         issued and outstanding - 2,407,283 for 2004 and
         2,362,057 for 2003 ..............................................................              19,884               19,620
     Retained earnings ...................................................................               4,779                3,117
     Accumulated other comprehensive income ..............................................              (1,542)                (200)
                                                                                                     ---------            ---------
            Total shareholders' equity ...................................................              23,121               22,537
                                                                                                     ---------            ---------

            Total liabilities and shareholders' equity ...................................           $ 295,128            $ 280,526
                                                                                                     =========            =========
</TABLE>




See accompanying notes to unaudited consolidated financial statements.


                                       3
<PAGE>

COMMUNITY FIRST BANCORPORATION
Consolidated Statement of Income
<TABLE>
<CAPTION>
                                                                                                  (Unaudited)
                                                                                             Period Ended June 30,
                                                                                             ---------------------
                                                                                 Three Months                      Six Months
                                                                                 ------------                      ----------
                                                                            2004            2003              2004             2003
                                                                            ----            ----              ----             ----
                                                                                       (Dollars in thousands, except per share)

Interest income
<S>                                                                        <C>              <C>              <C>              <C>
     Loans, including fees .....................................           $2,555           $2,489           $5,050           $4,924
     Securities
       Taxable .................................................              788              477            1,502            1,065
       Tax-exempt ..............................................               19                3               37                5
     Other investments .........................................                6                6               13               13
     Federal funds sold ........................................               44              130              126              245
                                                                           ------           ------           ------           ------
         Total interest income .................................            3,412            3,105            6,728            6,252
                                                                           ------           ------           ------           ------

Interest expense
     Time deposits $100M and over ..............................              364              403              738              814
     Other deposits ............................................              857              877            1,732            1,687
     Short-term borrowings .....................................                2                -                2                -
     Long-term debt ............................................                7                -                7                -
                                                                           ------           ------           ------           ------
         Total interest expense ................................            1,230            1,280            2,479            2,501
                                                                           ------           ------           ------           ------

Net interest income ............................................            2,182            1,825            4,249            3,751
Provision for loan losses ......................................               55              150              135              400
                                                                           ------           ------           ------           ------
Net interest income after provision ............................            2,127            1,675            4,114            3,351
                                                                           ------           ------           ------           ------

Other income
     Service charges on deposit accounts .......................              394              377              762              716
     Credit life insurance commissions .........................               13               11               19               21
     Net gains on sales of available-for-sale
         securities ............................................                -                -                5                -
     Gain on sale of loans held for sale .......................                -               61                -              126
     Other income ..............................................              136               58              229              109
                                                                           ------           ------           ------           ------
         Total other income ....................................              543              507            1,015              972
                                                                           ------           ------           ------           ------

Other expenses
     Salaries and employee benefits ............................              701              534            1,381            1,095
     Net occupancy expense .....................................               69               48              140               97
     Furniture and equipment expense ...........................               91               72              155              138
     Other expense .............................................              498              381              860              718
                                                                           ------           ------           ------           ------
         Total other expenses ..................................            1,359            1,035            2,536            2,048
                                                                           ------           ------           ------           ------

Income before income taxes .....................................            1,311            1,147            2,593            2,275
Income tax expense .............................................              481              410              931              811
                                                                           ------           ------           ------           ------
Net income .....................................................           $  830           $  737           $1,662           $1,464
                                                                           ======           ======           ======           ======

Per share*
     Net income ................................................           $ 0.35           $ 0.31           $ 0.69           $ 0.62
     Net income, assuming dilution .............................             0.32             0.30             0.66             0.59
                                                                                                                              ------
</TABLE>

* Per share  information has been  retroactively  adjusted to reflect a 5% stock
  dividend effective November 28, 2003.

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, 2003 ...................................     2,242,417     $  17,569     $   2,137     $     379      $  20,085
                                                                                                                          ---------

Comprehensive income:
    Net income .............................................             -             -         1,464             -          1,464
                                                                                                                          ---------
    Unrealized holding gains and losses
       on available-for-sale securities arising
       during the period, net of income taxes of $48 .......             -             -             -            84             84
                                                                                                                          ---------
    Total other comprehensive income .......................             -             -             -             -             84
                                                                                                                          ---------
         Total comprehensive income ........................             -             -             -             -          1,548
                                                                                                                          ---------
Exercise of employee stock options .........................         6,832            28             -             -             28
                                                                 ---------     ---------     ---------     ---------      ---------
Balance, June 30, 2003 .....................................     2,249,249     $  17,597     $   3,601     $     463      $  21,661
                                                                 =========     =========     =========     =========      =========



Balance, January 1, 2004 ...................................     2,362,057     $  19,620     $   3,117     $    (200)     $  22,537
                                                                                                                          ---------

Comprehensive income:
    Net income .............................................             -             -         1,662             -          1,662
                                                                                                                          ---------
    Unrealized holding gains and losses
       on available-for-sale securities arising
       during the period, net of income taxes of $750 ......             -             -             -        (1,339)        (1,339)
    Reclassification adjustment for losses (gains)
       realized in income, net of income taxes of $2 .......             -             -             -            (3)            (3)
                                                                                                                          ---------
    Total other comprehensive income .......................             -             -             -             -         (1,342)
                                                                                                                          ---------
         Total comprehensive income ........................             -             -             -             -            320
                                                                                                                          ---------
Exercise of employee stock options .........................        45,226           264             -             -            264
                                                                 ---------     ---------     ---------     ---------      ---------
Balance, June 30, 2004 .....................................     2,407,283     $  19,884     $   4,779     $  (1,542)     $  23,121
                                                                 =========     =========     =========     =========      =========
</TABLE>















See accompanying notes to unaudited consolidated financial statements.


                                       5
<PAGE>

COMMUNITY FIRST BANCORPORATION
Consolidated Statement of Cash Flows
<TABLE>
<CAPTION>
                                                                                                                (Unaudited)
                                                                                                              Six Months Ended
                                                                                                                    June 30,
                                                                                                            2004              2003
                                                                                                            ----              ----
                                                                                                            (Dollars in thousands)
Operating activities
<S>                                                                                                      <C>               <C>
     Net income ................................................................................         $  1,662          $  1,464
     Adjustments to reconcile net income to net
         cash provided by operating activities
            Provision for loan losses ..........................................................              135               400
            Depreciation .......................................................................              142               111
            Amortization of net loan (fees) and costs ..........................................              (39)              (22)
            Securities accretion and premium amortization ......................................              213               489
            Gain on sale of available-for-sale security ........................................               (5)                -
            Gain on sale of loans held for sale ................................................                -              (126)
            Decrease (increase) in interest receivable .........................................               24               (35)
            Increase in interest payable .......................................................              106               365
            Decrease in prepaid expenses and other assets ......................................              248                93
            Increase in other accrued expenses .................................................              221               348
            Originations of loans held for sale ................................................                -            (3,605)
            Proceeds of sale of loans held for sale ............................................                -             3,942
            Writedowns of other real estate owned ..............................................               90                 -
                                                                                                         --------          --------
                Net cash provided by operating activities ......................................            2,797             3,424
                                                                                                         --------          --------

Investing activities
     Purchases of available-for-sale securities ................................................          (48,539)          (42,948)
     Purchases of held-to-maturity securities ..................................................           (9,949)                -
     Maturities and calls of available-for-sale securities .....................................           22,509            37,177
     Proceeds of sale of available-for-sale security ...........................................            3,826                 -
     Purchases of other investments ............................................................             (147)             (195)
     Net increase in loans made to customers ...................................................           (2,065)           (5,710)
     Purchases of premises and equipment .......................................................              (41)             (568)
     Proceeds of sale of real estate held for sale .............................................              212                 -
                                                                                                         --------          --------
                Net cash used by investing activities ..........................................          (34,194)          (12,244)
                                                                                                         --------          --------

Financing activities
     Net increase in demand deposits, interest
         bearing transaction accounts and savings accounts .....................................            2,053            14,933
     Net increase in certificates of deposit and other
         time deposits .........................................................................            1,638            20,705
     Increase in short-term borrowings .........................................................            2,500                 -
     Proceeds of issuing long-term debt ........................................................            7,500                 -
     Exercise of employee stock options ........................................................              264                28
                                                                                                         --------          --------
                Net cash provided by financing activities ......................................           13,955            35,666
                                                                                                         --------          --------
(Decrease) increase in cash and cash equivalents ...............................................          (17,442)           26,846
Cash and cash equivalents, beginning ...........................................................           39,505            26,617
                                                                                                         --------          --------
Cash and cash equivalents, ending ..............................................................         $ 22,063          $ 53,463
                                                                                                         ========          ========

Supplemental Disclosure of Cash Flow Information
     Cash paid during the year for:
         Interest ..............................................................................         $  2,373          $  2,136
         Income taxes ..........................................................................              612               357
     Noncash investing and financing activities:
         Transfer of loans to other real estate owned ..........................................                -               696
         Other comprehensive income (loss) .....................................................           (1,342)               84
</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 the  Company's  Annual  Report for the year ended  December  31, 2003 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.

Nonperforming  Loans - As of June 30, 2004,  there were  $892,000 in  nonaccrual
loans and no loans 90 days or more past due and still accruing.

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 per share
information  has  been  retroactively  adjusted  to give  effect  to a 5%  stock
dividend  effective  November 28, 2003.  Net income per share and net income per
share, assuming dilution, were computed as follows:

<TABLE>
<CAPTION>
                                                                                           (Unaudited)
                                                                                      Period Ended June 30,
                                                                                      ---------------------
                                                                          Three Months                          Six Months
                                                                          ------------                          ----------
                                                                    2004               2003               2004              2003
                                                                    ----               ----               ----              ----
                                                                           (Dollars in thousands, except per share amounts)

<S>                                                              <C>                <C>                <C>                <C>
Net income per share, basic
  Numerator - net income ...............................         $      830         $      737         $    1,662         $    1,464
                                                                 ==========         ==========         ==========         ==========
  Denominator
    Weighted average common shares
      issued and outstanding ...........................          2,398,467          2,361,711          2,392,585          2,360,583
                                                                 ==========         ==========         ==========         ==========

Net income per share, basic ............................         $      .35         $      .31         $      .69         $      .62
                                                                 ==========         ==========         ==========         ==========

Net income per share, assuming dilution
  Numerator - net income ...............................         $      830         $      737         $    1,662         $    1,464
                                                                 ==========         ==========         ==========         ==========
  Denominator
    Weighted average common shares
      issued and outstanding ...........................          2,398,467          2,361,711          2,392,585          2,360,583
  Effect of dilutive stock options .....................            160,301            118,851            107,613            118,851
                                                                 ----------         ----------         ----------         ----------
               Total shares ............................          2,558,768          2,480,562          2,500,198          2,479,434
                                                                 ==========         ==========         ==========         ==========

        Net income per share, assuming dilution ........         $      .32         $      .30         $      .66         $      .59
                                                                 ==========         ==========         ==========         ==========
</TABLE>


Stock-Based  Compensation - As of June 30, 2004, the Company has two stock-based
compensation  plans that are accounted for under the recognition and measurement
principles of Accounting  Standards Board Opinion No. 25,  "Accounting for Stock
Issued to Employees," and related  interpretations.  No stock-based compensation
is  reflected  in net  income,  as all  options  granted  under  those plans had
exercise prices equal to the market value of the underlying  common stock on the
date of grant.  Although the Company has adopted the  disclosure  provisions  of
Statement of Financial Accounting Standards No. 123, "Accounting for Stock-Based
Compensation," ("SFAS 123") as amended, there are no current intentions to adopt
the fair value method  recognition  provisions of that Statement.  The following
table  illustrates  the  effect on net  income  and net  income per share if the
Company  had  applied  the fair value  recognition  provisions  of SFAS 123,  to
stock-based  employee  compensation.  Per share  amounts  have been  adjusted to
reflect the effect of a 5% stock dividend effective November 28, 2003.


                                       7
<PAGE>

<TABLE>
<CAPTION>
                                                                                                (Unaudited)
                                                                                            Period Ended June 30,
                                                                                            ---------------------
                                                                                Three Months                      Six Months
                                                                                ------------                      ----------
                                                                           2004            2003             2004              2003
                                                                           ----            ----             ----              ----
                                                                               (Dollars in thousands, except per share amounts)

<S>                                                                      <C>             <C>             <C>               <C>
Net income, as reported ........................................         $   830         $   737         $   1,662         $   1,464
Deduct:  Total stock-based employee
     compensation expense determined under
     fair value based method for all awards,
     net of any related tax effects ............................              60              67               119               133
                                                                         -------         -------         ---------         ---------
Pro forma net income ...........................................         $   770         $   670         $   1,543         $   1,331
                                                                         =======         =======         =========         =========

Net income per share, basic
     As reported ...............................................         $  0.35         $  0.31         $    0.69         $    0.62
     Pro forma .................................................            0.32            0.28              0.64              0.56
Net income per share, assuming dilution
     As reported ...............................................         $  0.32         $  0.30         $    0.66         $    0.59
     Pro forma .................................................            0.30            0.27              0.62              0.54
</TABLE>


                                       8
<PAGE>

Item 2. - Management's Discussion and Analysis

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.  Forward-looking
statements include statements concerning plans,  objectives,  goals, strategies,
future events or performance  and underlying  assumptions  and other  statements
which are other  than  statements  of  historical  facts.  Such  forward-looking
statements  may be  identified,  without  limitation,  by the  use of the  words
"anticipates,"   "believes,"   "estimates,"   "expects,"   "intends,"   "plans,"
"predicts,"  "projects," and similar  expressions.  The Company's  expectations,
beliefs and  projections  are  expressed  in good faith and are  believed by the
Company to have a reasonable basis,  including without limitation,  management's
examination  of historical  operating  trends,  data  contained in the Company's
records  and  other  data  available  from  third  parties,  but there can be no
assurance that management's beliefs,  expectations or projections will result or
be achieved or accomplished.  The Company cautions readers that  forward-looking
statements, including without limitation, those relating to the Company's recent
and continuing  expansion,  its future  business  prospects,  revenues,  working
capital,  liquidity,  capital needs, interest costs, income, and adequacy of the
allowance  for loan losses,  are subject to risks and  uncertainties  that could
cause  actual  results  to  differ   materially  from  those  indicated  in  the
forward-looking  statements, due to several important factors herein identified,
among others,  and other risks and factors  identified  from time to time in the
Company's reports filed with the Securities and Exchange Commission.

Results of Operations

         Community First  Bancorporation (the "Company")  recorded  consolidated
net  income  of  $830,000,  or $.35  per  share,  for the  second  quarter,  and
$1,662,000,  or $.69 per share,  for the first six months of 2004.  During 2003,
the  Company  recorded  net income of  $737,000 or $.31 per share for the second
quarter, and $1,464,000, or $.62 per share, for the first six months. Net income
per share, assuming dilution, for the three and six month periods ended June 30,
2004 was $.32 and $.66,  respectively.  For the  comparable  2003  periods,  net
income per share, assuming dilution, was $.30 and $.59, respectively. Net income
per share  amounts  for 2003 have been  retroactively  adjusted  to reflect a 5%
stock dividend effective November 28, 2003.

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,  short-term borrowings
and long-term debt), 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 the second quarter of 2004, net interest income was $2,182,000,  an
increase of $357,000 or 19.6% from the comparable 2003 period. For the first six
months of 2004, net interest income was  $4,249,000,  an increase of $498,000 or
13.3% from the first six months of 2003.  The  increases in net interest  income
for the 2004 six and three month periods resulted  primarily from larger volumes
of interest earning assets, especially in the higher-yielding loan category, and
a specific,  targeted  purchase  of taxable  held-to-maturity  securities  using
relatively  low cost,  fixed rate funds borrowed from the Federal Home Loan Bank
of Atlanta  ("the  FHLB").  Interest  expense for the 2004  period was  affected
favorably  by lower  rates paid for  deposits  and other  funding  sources.  The
average rate paid for all  interest-bearing  funding sources was 26 basis points
lower in the 2004  six-month  period than in the same 2003  period.  The average
amounts of  interest-bearing  funding sources  increased to $237,636,000 for the
2004 period, an increase of $24,114,000 or 11.3% more than the 2003 period.

         Average  interest  earning assets during the 2004 six-month period were
$281,653,000,  an increase of $30,787,000 or 12.3% over the comparable period of
2003. Average loans for the 2004 six-month period were $150,560,000, an increase
of  $10,198,000  or 7.3% over the  average  amount for the same  period of 2003.
Average investment securities for the 2004 period were $101,888,000, an increase
of  $35,134,000  or 52.6% over the average  for the 2003  period.  Average  time
deposits issued in  denominations  less than $100,000  increased to $104,111,000
for the  2004  six-month  period  from  $86,610,000  in the  same  2003  period,
representing  an increase of 20.2%.  The average  interest rate  associated with
such  deposits  decreased  by 36 basis  points to 3.00%  for the 2004  six-month
period.

         The average  interest rate spread  (average  yield on interest  earning
assets less the average rate paid on interest bearing liabilities) for the first


                                       9
<PAGE>

six months of 2004 was 2.72%,  an increase of 5 basis  points from 2.67% for the
same period of 2003. Net yield on earning assets (net interest income divided by
average  interest earning assets) was 3.04% for the first six months of 2004, an
increase of 2 basis points from 3.02% for the first six months of 2003.

         Late in the second quarter of 2004, the Company borrowed  approximately
$10,000,000  from the FHLB and invested the proceeds in several  mortgage-backed
securities  issues  with a  combined  yield-to-maturity  of 5.10%.  The  average
expected life of these securities was approximately 6.0 years as of the purchase
date. The borrowed funds consisted of a combination of both short- and long-term
debt with an average life of approximately 4.6 years at the date incurred and an
average cost of 3.27%.

         Other  increases  in  interest  earning  assets  and  interest  bearing
liabilities  resulted from the Company's  continuing  strategies to increase its
market share in its local service areas in Anderson and Oconee Counties of South
Carolina.  Oconee  County  is served  from  three  offices  located  in  Seneca,
Westminster  and  Walhalla.  The  Westminster  office  was  opened in  temporary
quarters during the second quarter of 2003.

Provision and Allowance for Loan Losses

         The  provision  for loan losses  charged to expense was $55,000 for the
second  quarter of 2004 compared  with $150,000 for the second  quarter of 2003,
and totaled $135,000 for the first six months of 2004 compared with $400,000 for
the  comparable  period of 2003. At June 30, 2004, the allowance for loan losses
was 1.50% of loans,  compared  with 1.49% of loans at December 31, 2003.  During
the 2003  six-month  period,  net  charge-offs  totaled  $92,000,  compared with
$90,000  charged off during the same period of 2003. As of June 30, 2004,  there
were $892,000 in  nonaccrual  loans and no loans over 90 days past due and still
accruing  interest,  collectively  referred to as impaired loans.  The amount of
nonaccrual  loans at June 30, 2004 is $306,000  more than the amount at June 30,
2003 and $105,000  less than the amount of  nonaccrual  loans as of December 31,
2003.  The  majority  of the  nonaccrual  loans are  secured by real  estate and
vehicles.  When the estimated  realizable  value of collateral  associated  with
nonperforming  loans  is  believed  to be  insufficient  to  satisfy  the  debt,
management generally charges off the excess amount of the debt.

         As of June 30, 2004,  the  Company's  potential  problem  loans totaled
$1,427,000,  an increase of $374,000, or 35.5%, over the amount of such loans as
of December 31, 2003. Potential problem loans include loans, other than impaired
loans,  that  management  has  identified  as having  possible  credit  problems
sufficient  to cast doubt upon the abilities of the borrowers to comply with the
current repayment terms. The majority of the potential problem loans are secured
by real  estate  mortgages  or liens  on  equipment,  inventories,  receivables,
automobiles and other forms of collateral.

Noninterest Income

         Noninterest  income  totaled  $543,000 for the second  quarter of 2004,
compared with $507,000 for the 2003 quarter.  Noninterest  income was $1,015,000
for the first six  months of 2004 and  $972,000  for the same 2003  period.  The
higher noninterest  income in 2004 was attributable  primarily to increased fees
derived from service charges and other fees  associated  with deposit  accounts.
The  Company  offers a program  that  allows  customers  to avoid  payee-imposed
charges on checks and similar items returned for insufficient  funds. A per item
fee is charged by the  Company  for this  increasingly  popular  service.  Also,
during the second quarter of 2003, the Company changed  investors with regard to
its residential mortgage loan origination and resale program.  Consequently, the
Company  no longer  provides  the  initial  funding  for such loans and only fee
income (which is included in "Other  Income") is now  recognized in  association
with the origination of those loans.  The Company  realized a $5,000 gain on the
sale of an  available-for-sale  security in the 2004 six-month  period.  No such
gains were recognized in the 2003 period.

Noninterest Expenses

         Noninterest expenses totaled $1,359,000 for the second quarter of 2004,
compared  with  $1,035,000  for the 2003  period,  representing  an  increase of
$324,000 or 31.3%. Noninterest expenses were $2,536,000 for the first six months
of 2004  compared  with  $2,048,000  for the first  half of 2003.  Salaries  and
employee benefits for the 2004 quarter totaled $701,000, an increase of $167,000
over the 2003 three month period. For the first six months of 2004, salaries and
employee  benefits  totaled  $1,381,000  representing an increase of $286,000 or
26.1%  over the same  period of 2003.  This  increase  resulted  from  increased
staffing levels arising from the opening of the new office in Westminster, South
Carolina during the second quarter of 2003 and from normal increases in salaries
and wages granted from time-to-time.

         Occupancy and furniture and equipment  expenses for the second  quarter
of 2004  totaled  $160,000,  representing  an increase of $40,000  over the same
period of 2003. Such expenses  increased  $60,000 or 25.5% during the first half
of 2004.  Other expenses for the 2004  three-month  period totaled  $498,000 and


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<PAGE>

were $117,000 more than in 2003. For the 2004 six-month  period,  other expenses
increased by $142,000,  or 19.8%, over the 2004 amount. These expenses increased
primarily  due to valuation  adjustments  related to the  Company's  holdings of
foreclosed  properties,  increased  costs of the Company's core data  processing
system software and higher fees paid for ATM network services.

Liquidity

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

         Loan and  deposit  growth  have been  slower  during the past  12-month
period.  Management attributes this to a relative unattractiveness of all banks'
deposit products during the prolonged period of historically low interest rates,
sluggish economic activity generally and continued  uncertainty over the timing,
direction and extent of interest  rate  movements in the near term. In addition,
the ongoing resolution of the 2003 bankruptcy of a mortgage banking  operation's
local funding subsidiary is believed to be negatively affecting overall economic
activity in the Company's market areas.

         As of June 30,  2004,  the ratio of loans to total  deposits was 57.5%,
compared with 57.6% as of December 31, 2003 and 57.5% as of June 30, 2003.

         Deposits as of June 30, 2004  increased by  $3,691,000 or 1.4% over the
amount at December  31, 2003 and were  $12,965,000  or 5.2%  greater  than their
level of June 30, 2003.

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

Capital Resources

         The Company's shareholders' equity increased by $584,000 since December
31, 2003 as the result of net income of  $1,662,000  for the first six months of
2004,  $264,000  added from the exercise of stock  options,  less  $1,342,000 in
other comprehensive  income,  consisting of unrealized losses arising during the
period on available-for-sale securities.

         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 June 30,  2004 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 .............    14.7%       16.0%        8.5%
Community First Bank .......................    14.1%       15.3%        8.1%
Minimum "well-capitalized" requirement .....     6.0%       10.0%        6.0%
Minimum requirement ........................     4.0%        8.0%        4.0%


Off Balance Sheet Arrangements

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

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


                                       11
<PAGE>

                                               June 30, 2004
                                               -------------
                                          (Dollars in thousands)
Loan commitments ......................          $ 17,228
Standby letters of credit .............               944


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

Standby  letters  of  credit  are  conditional   commitments  to  guarantee  the
performance of a customer to a third party.  The credit risk involved in issuing
standby  letters  of  credit  is the  same  as  that  involved  in  making  loan
commitments to customers.

As described under "Liquidity,"  management believes that its various sources of
liquidity  provide  the  resources  necessary  for the  Bank to  fund  the  loan
commitments and to perform under standby letters of credit,  if the need arises.
Neither  the  Company  nor the  Bank 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. - 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 that the effectiveness
of such  controls and  procedures,  as of the end of the period  covered by this
report, was adequate.

No disclosure is required under 17 C.F.R. Section 228.308(c).



                                       12
<PAGE>



                           PART II - OTHER INFORMATION

Item 4. - Submission of Matters to a Vote of Security Holders.

         On  Tuesday,  April 27,  2004,  the  shareholders  of  Community  First
Bancorporation held their regular annual meeting. At the meeting, one matter was
submitted to a vote with results as follows:

1.       Election of three directors to hold office for three-year terms:

                                                     SHARES VOTED
                                                     ------------
                                                                       AUTHORITY
         DIRECTORS                        FOR          AGAINST          WITHHELD
                                          ---          -------          --------

        Robert H. Edwards ........     1,519,599           0               0
        Blake L. Griffith ........     1,519,599           0               0
        Gary V. Thrift ...........     1,519,599           0               0


         The following directors continue to serve until the expiration of their
terms at the  annual  meetings  to be held in the years  indicated  and were not
voted on at the 2004 annual  meeting:  James E. McCoy - 2005,  James E. Turner -
2005, and Charles L. Winchester - 2005, Larry S. Bowman,  M.D., - 2006;  William
M. Brown - 2006; John R. Hamrick - 2006 and Frederick D. Shepherd, Jr. - 2006.


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

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

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

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




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<PAGE>


SIGNATURE

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


                                 COMMUNITY FIRST BANCORPORATION

August 11, 2004                  /s/ Frederick D. Shepherd, Jr.
-----------------                ----------------------------------------------
         Date                    Frederick D. Shepherd, Jr., Chief
                                 Executive Officer and Chief Financial Officer



                                       14
<PAGE>


                                  EXHIBIT INDEX

(b)  Exhibits           31.  Rule 13a-14(a)/15d-14(a) Certifications
                        32.  Certifications Pursuant to 18 U.S.C. Section 1350




                                       15