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 June 30, 2007           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,  or a  non-accelerated  filer.  See definition of
"accelerated  filer and large  accelerated  filer" in Rule 12b-2 of the Exchange
Act. (Check one):

   Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [X]

         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, 2,972,763 Shares Outstanding on July 30, 2007



<PAGE>


                         COMMUNITY FIRST BANCORPORATION

                                    FORM 10-Q

                                      Index

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

Item 1.           Financial Statements

<S>                                                                                                                    <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 ......................................    17
Item 4T.          Controls and Procedures .........................................................................    17

PART II -         OTHER INFORMATION

Item 4.           Submission of Matters to a Vote of Security Holders .............................................    18
Item 6.           Exhibits ........................................................................................    18

SIGNATURE .........................................................................................................    19
</TABLE>




                                       2
<PAGE>


                         PART I - FINANCIAL INFORMATION

Item 1. - Financial Statements

COMMUNITY FIRST BANCORPORATION
Consolidated Balance Sheets
<TABLE>
<CAPTION>
                                                                                                       (Unaudited)
                                                                                                         June 30,       December 31,
                                                                                                            2007            2006
                                                                                                            -----           ----
                                                                                                            (Dollars in thousands)
Assets
<S>                                                                                                     <C>               <C>
     Cash and due from banks ...................................................................        $  10,413         $   6,952
     Interest bearing balances due from banks ..................................................              180                67
     Federal funds sold ........................................................................           11,457            24,126
                                                                                                        ---------         ---------
         Cash and cash equivalents .............................................................           22,050            31,145
     Securities available-for-sale .............................................................          104,659           102,487
     Securities held-to-maturity (fair value $5,875 for 2007 and $6,530 for 2006) ..............            6,099             6,595
     Other investments .........................................................................              885               980
     Loans .....................................................................................          225,971           202,966
         Allowance for loan losses .............................................................           (2,279)           (2,242)
                                                                                                        ---------         ---------
            Loans - net ........................................................................          223,692           200,724
     Premises and equipment - net ..............................................................            8,066             7,937
     Accrued interest receivable ...............................................................            2,400             2,182
     Other assets ..............................................................................            2,317             1,859
                                                                                                        ---------         ---------

            Total assets .......................................................................        $ 370,168         $ 353,909
                                                                                                        =========         =========

Liabilities
     Deposits
         Noninterest bearing ...................................................................        $  39,752         $  40,576
         Interest bearing ......................................................................          288,433           267,381
                                                                                                        ---------         ---------
            Total deposits .....................................................................          328,185           307,957
     Short-term borrowings .....................................................................                -             4,500
     Long-term debt ............................................................................            4,500             5,500
     Accrued interest payable ..................................................................            2,897             2,703
     Other liabilities .........................................................................               67                34
                                                                                                        ---------         ---------
            Total liabilities ..................................................................          335,649           320,694
                                                                                                        ---------         ---------

Shareholders' equity
     Common stock - no par value; 10,000,000 shares authorized; issued and
         outstanding - 2,972,563 for 2007 and 2,958,558 for 2006 ...............................           30,137            30,061
     Additional paid-in capital ................................................................              593               593
     Retained earnings .........................................................................            5,181             3,285
     Accumulated other comprehensive income (loss) .............................................           (1,392)             (724)
                                                                                                        ---------         ---------
            Total shareholders' equity .........................................................           34,519            33,215
                                                                                                        ---------         ---------

            Total liabilities and shareholders' equity .........................................        $ 370,168         $ 353,909
                                                                                                        =========         =========
</TABLE>


See accompanying notes to unaudited consolidated financial statements.



                                       3
<PAGE>


COMMUNITY FIRST BANCORPORATION
Consolidated Statements of Income
<TABLE>
<CAPTION>
                                                                                                  (Unaudited)
                                                                                            Period Ended June 30,
                                                                                            ---------------------
                                                                                Three Months                     Six Months
                                                                                ------------                     ----------
                                                                           2007              2006           2007              2006
                                                                           ----              ----           ----              ----
                                                                                (Dollars in thousands, except per share)

Interest income
<S>                                                                       <C>              <C>              <C>              <C>
     Loans, including fees .....................................          $ 4,275          $ 3,343          $ 8,253          $ 6,433
     Interest bearing balances due from banks ..................                -                2                1                4
     Securities
     Taxable ...................................................              994              957            1,932            1,888
     Tax-exempt ................................................              217              158              404              278
     Other investments .........................................               14               13               29               24
     Federal funds sold ........................................              320              330              862              823
                                                                          -------          -------          -------          -------
         Total interest income .................................            5,820            4,803           11,481            9,450
                                                                          -------          -------          -------          -------

Interest expense
     Time deposits $100M and over ..............................              945              733            1,863            1,465
     Other deposits ............................................            2,211            1,757            4,435            3,291
     Short-term borrowings .....................................                -                -                3                2
     Long-term debt ............................................               55               61              109              123
                                                                          -------          -------          -------          -------
         Total interest expense ................................            3,211            2,551            6,410            4,881
                                                                          -------          -------          -------          -------

Net interest income ............................................            2,609            2,252            5,071            4,569
Provision for loan losses ......................................              120               25              120               50
                                                                          -------          -------          -------          -------
Net interest income after provision ............................            2,489            2,227            4,951            4,519
                                                                          -------          -------          -------          -------

Other income
     Service charges on deposit accounts .......................              343              382              677              746
     ATM interchange and other fees ............................              116               96              221              182
     Credit life insurance commissions .........................                9               12               16               22
     Other income ..............................................               34               49               74              128
                                                                          -------          -------          -------          -------
         Total other income ....................................              502              539              988            1,078
                                                                          -------          -------          -------          -------

Other expenses
     Salaries and employee benefits ............................              903              919            1,714            1,648
     Net occupancy expense .....................................              114               79              202              148
     Furniture and equipment expense ...........................              108              100              210              204
     Amortization of computer software .........................               58               73              117              133
     ATM interchange and related expenses ......................               79               64              149              142
     Directors' fees ...........................................               20               65               47              124
     Other expense .............................................              360              376              737              713
                                                                          -------          -------          -------          -------
         Total other expenses ..................................            1,642            1,676            3,176            3,112
                                                                          -------          -------          -------          -------

Income before income taxes .....................................            1,349            1,090            2,763            2,485
Income tax expense .............................................              410              348              867              832
                                                                          -------          -------          -------          -------
Net income .....................................................          $   939          $   742          $ 1,896          $ 1,653
                                                                          =======          =======          =======          =======

Per share*
     Net income ................................................          $  0.32          $  0.25          $  0.64          $  0.56
     Net income, assuming dilution .............................             0.30             0.24             0.60             0.53
</TABLE>

* Per share  information has been  retroactively  adjusted to reflect a 5% stock
dividend effective December 18, 2006.

See accompanying notes to unaudited consolidated financial statements.



                                       4
<PAGE>


COMMUNITY FIRST BANCORPORATION
Consolidated Statements of Changes in Shareholders' Equity

<TABLE>
<CAPTION>
                                                               (Unaudited)

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

<S>                                                    <C>          <C>          <C>          <C>          <C>           <C>
Balance, January 1, 2006 ..........................    2,798,409    $   26,956   $        -   $    3,296   $   (1,397)   $   28,855
                                                                                                                         ----------
Comprehensive income:
    Net income ....................................            -             -            -        1,653            -         1,653
                                                                                                                         ----------
    Unrealized holding gains and losses
      on available-for-sale securities
      arising during the period, net of
      income taxes of $255 ........................            -             -            -            -         (455)         (455)
                                                                                                                         ----------
        Total other comprehensive income ..........                                                                            (455)
                                                                                                                         ----------
          Total comprehensive income ..............                                                                           1,198
                                                                                                                         ----------
Share-based compensation, net of income
    taxes of $23 ..................................            -             -          100            -            -           100
                                                      ----------    ----------   ----------   ----------   ----------    ----------
Balance, June 30, 2006 ............................    2,798,409    $   26,956   $      100   $    4,949   $   (1,852)   $   30,153
                                                      ==========    ==========   ==========   ==========   ==========    ==========



Balance, January 1, 2007 ..........................    2,958,558    $   30,061   $      593   $    3,285   $     (724)   $   33,215
                                                                                                                         ----------
Comprehensive income:
    Net income ....................................            -             -            -        1,896            -         1,896
                                                                                                                         ----------
    Unrealized holding gains and losses
      on available-for-sale securities
      arising during the period, net of
      income taxes of $374 ........................            -             -            -            -         (668)         (668)
                                                                                                                         ----------
        Total other comprehensive income ..........                                                                            (668)
                                                                                                                         ----------
          Total comprehensive income ..............                                                                           1,228
                                                                                                                         ----------
Exercise of employee stock options ................       14,005            76            -            -            -            76
                                                      ----------    ----------   ----------   ----------   ----------    ----------
Balance, June 30, 2007 ............................    2,972,563    $   30,137   $      593   $    5,181   $   (1,392)   $   34,519
                                                      ==========    ==========   ==========   ==========   ==========    ==========
</TABLE>












See accompanying notes to unaudited consolidated financial statements.



                                       5
<PAGE>


COMMUNITY FIRST BANCORPORATION
Consolidated Statements of Cash Flows
<TABLE>
<CAPTION>
                                                                                                              (Unaudited)
                                                                                                            Six Months Ended
                                                                                                                 June 30,
                                                                                                                 --------
                                                                                                           2007               2006
                                                                                                          -----              ----
                                                                                                           (Dollars in thousands)
Operating activities
<S>                                                                                                     <C>                <C>
     Net income ..............................................................................          $  1,896           $  1,653
     Adjustments to reconcile net income to net
         cash provided by operating activities
            Provision for loan losses ........................................................               120                 50
            Depreciation .....................................................................               200                172
            Amortization of net loan fees and costs ..........................................               (92)               (80)
            Securities accretion and premium amortization ....................................                47                 77
            Gain on sale of foreclosed assets ................................................                 -                (31)
            Increase in interest receivable ..................................................              (218)              (256)
            Increase in interest payable .....................................................               194                336
            Increase in prepaid expenses and other assets ....................................               (84)               (91)
            Increase in other accrued expenses ...............................................                33                  3
            Share-based compensation .........................................................                 -                100
                                                                                                        --------           --------
                Net cash provided by operating activities ....................................             2,096              1,933
                                                                                                        --------           --------

Investing activities
     Purchases of available-for-sale securities ..............................................           (17,448)           (16,100)
     Maturities, calls and paydowns of securities available-for-sale .........................            14,183             11,061
     Maturities, calls and paydowns of securities held-to-maturity ...........................               500                574
     Proceeds from sales of other investments ................................................                95                  -
     Purchases of other investments ..........................................................                 -                (32)
     Net increase in loans made to customers .................................................           (22,996)           (16,699)
     Purchases of premises and equipment .....................................................              (329)            (1,146)
     Proceeds of sale of foreclosed assets ...................................................                 -                168
                                                                                                        --------           --------
                Net cash used by investing activities ........................................           (25,995)           (22,174)
                                                                                                        --------           --------

Financing activities
     Net (decrease) increase in demand deposits, interest
         bearing transaction accounts and savings accounts ...................................            (5,377)            14,160
     Net increase in certificates of deposit and other
         time deposits .......................................................................            25,605              6,253
     Net decrease in short-term borrowings ...................................................            (4,500)            (3,500)
     Repayments of long-term debt ............................................................            (1,000)            (1,000)
     Exercise of employee stock options ......................................................                76                  -
                                                                                                        --------           --------
                Net cash provided by financing activities ....................................            14,804             15,913
                                                                                                        --------           --------
Decrease in cash and cash equivalents ........................................................            (9,095)            (4,328)
Cash and cash equivalents, beginning .........................................................            31,145             32,450
                                                                                                        --------           --------
Cash and cash equivalents, ending ............................................................          $ 22,050           $ 28,122
                                                                                                        ========           ========

Supplemental Disclosure of Cash Flow Information
     Cash paid during the period for
         Interest, net of $18 capitalized during construction during 2006 ....................          $  6,216           $  4,545
         Income taxes ........................................................................               898                895
     Noncash investing and financing activities:
         Other comprehensive income (loss) ...................................................              (668)              (455)
</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, 2006 filed with the  Securities  and  Exchange
Commission.   Certain  amounts  in  the  2006  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 June 30, 2007,  there were  $412,000 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 2006 per share
information  has  been  retroactively  adjusted  to give  effect  to a 5%  stock
dividend  effective  December 18, 2006.  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
                                                                           ------------                          ----------
                                                                    2007               2006                2007              2006
                                                                    ----               ----                ----              ----
                                                                           (Dollars in thousands, except per share amounts)

<S>                                                              <C>                <C>                <C>                <C>
Net income per share, basic
  Numerator - net income ...............................         $      939         $      742         $    1,896         $    1,653
                                                                 ==========         ==========         ==========         ==========
  Denominator
  Weighted average common shares
    issued and outstanding .............................          2,972,515          2,938,329          2,970,929          2,938,329
                                                                 ==========         ==========         ==========         ==========

    Net income per share, basic ........................         $      .32         $      .25         $      .64         $      .56
                                                                 ==========         ==========         ==========         ==========

Net income per share, assuming dilution
  Numerator - net income ...............................         $      939         $      742         $    1,896         $    1,653
                                                                 ==========         ==========         ==========         ==========
  Denominator
  Weighted average common shares
    issued and outstanding .............................          2,972,515          2,938,329          2,970,929          2,938,329
  Effect of dilutive stock options .....................            204,437            216,601            209,216            207,812
                                                                 ----------         ----------         ----------         ----------
               Total shares ............................          3,176,952          3,154,930          3,180,145          3,146,141
                                                                 ==========         ==========         ==========         ==========

    Net income per share, assuming dilution ............         $      .30         $      .24         $      .60         $      .53
                                                                 ==========         ==========         ==========         ==========
</TABLE>

Stock-Based  Compensation - As of June 30, 2007, the Company has 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-officer  directors  under the  recognition  and  measurement  principles  of
Statement of Financial Accounting Standards No. 123 (revised 2004), "Share-Based
Payment"("SFAS 123(R)) using the modified prospective  application method. Total
share-based compensation expenses included in salaries and employee benefits and
directors  fees were  $40,000  and  $38,000,  respectively,  for the three month
period,  and $60,000 and $63,000,  respectively,  for the six month period ended
June 30, 2006.  During the fourth quarter of 2006, the Company  accelerated  the


                                       7
<PAGE>

vesting of all options then outstanding and there have been no grants of options
during 2007. Consequently,  no share-based compensation expense is recognized in
the 2007 period.

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

Forward Looking Statements

         Statements  included in this report 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 not  guarantees of
future  performance and 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.  The  risks and
uncertainties include, but are not limited to

     o    our growth and our ability to maintain growth;

     o    governmental  monetary and fiscal policies, as well as legislative and
          regulatory changes;

     o    the effect of interest  rate changes on our level and  composition  of
          deposits, loan demand and the value of our collateral and securities;

     o    the effects of competition from other financial institutions operating
          in our market area and  elsewhere,  including  institutions  operating
          locally,  nationally and  internationally,  together with  competitors
          that offer  banking  products  and  services  by mail,  telephone  and
          computer and/or the Internet;

     o    failure of assumptions  underlying the  establishment of our allowance
          for loan losses, including the value of collateral securing loans; and

     o    loss of consumer  confidence and economic  disruptions  resulting from
          terrorist activities.

         The Company  undertakes no obligation to publicly  update or revise any
forward-looking  statements,  whether  as a result  of new  information,  future
events or otherwise.

Changes in Financial Condition


         During the three months ended June 30, 2007, loans grew by $13,918,000,
or  6.6%,  and  securities  available-for-sale  grew  by  $6,494,000,  or  6.6%.
Conversely,  total deposits  decreased by $3,844,000,  or 1.2%,  during the 2007
second quarter.  Interest-bearing  deposits  decreased by $3,091,000  during the
2007 second quarter.  These changes were funded primarily by reducing the amount
of federal funds sold by $28,488,000 during the quarter.

         During the first six months of 2007,  federal  funds sold  decreased by
$12,669,000,  or 52.5%, and interest bearing deposits  increased by $21,052,000,
or 7.9%. These funds were used to repay short-term  borrowings of $4,500,000 and
long-term  debt  of  $1,000,000,  to  fund  growth  in  loans,  and to  purchase
securities.   Loans   increased   by   $23,005,000   or  11.3%  and   securities
available-for-sale increased by $2,172,000 or 2.1%.

         The Company believes that its liquidity  position  continues to provide
it with  sufficient  flexibility  to fund loan requests or make  investments  in
securities  at  attractive  yields,  and to  meet  normal  demands  for  deposit
withdrawals by its customers.  Management also believes that the current balance
sheet positions maintain the Company's exposures to changes in interest rates at
acceptable levels.


                                       8
<PAGE>

Results of Operations

Three Months Ended June 30, 2007 and 2006

         The Company  recorded  consolidated  net income of $939,000 or $.32 per
share for the second quarter of 2007.  These results are more than net income of
$742,000  and  earnings  per share of $.25 for the second  quarter of 2006.  Net
income per share,  assuming  dilution was $.30 for the 2007 quarter and $.24 for
the 2006 period.  Net income per share amounts for 2006 have been  retroactively
adjusted to reflect a five percent stock dividend effective December 18, 2006.

         Net interest income for the 2007 second quarter was $357,000, or 15.9%,
more than for the 2006  second  quarter.  Interest  income  for the 2007  second
quarter increased  primarily because of larger amounts of loans and higher rates
earned on substantially all categories of earning assets.  Interest expenses for
the 2007  quarter  were  higher than the same  period of 2006  primarily  due to
higher amounts of certificates of deposits and higher rates paid, especially for
time deposits.

         Noninterest  income  for  the  second  quarter  of 2007  was  adversely
affected  primarily by a decrease in service charges on deposit  accounts due to
declining demand for an overdraft  protection  product that was introduced a few
years ago.  Noninterest  expense for the 2007 second quarter decreased  somewhat
from the amounts  recorded  for the same 2006  period,  primarily as a result of
lower employee  benefits and directors  fees.  Employee  benefits and directors'
fees for the 2006 three month period included approximately $78,000 representing
the effect of the adoption of SFAS 123(R) using the modified prospective method.
No expenses were incurred for share-based compensation in the 2007 period.

<TABLE>
<CAPTION>
                                                                             Summary Income Statement
                                                                             ------------------------
                                                                              (Dollars in thousands)
For the Three Months Ended June 30,                            2007            2006         Dollar Change   Percentage Change
-----------------------------------                            ----            ----         -------------   -----------------
<S>                                                         <C>               <C>             <C>                 <C>
Interest income ....................................        $ 5,820           $ 4,803         $ 1,017              21.2%
Interest expense ...................................          3,211             2,551             660              25.9%
                                                            -------           -------          ------
Net interest income ................................          2,609             2,252             357              15.9%
Provision for loan losses ..........................            120                25              95             380.0%
Noninterest income .................................            502               539             (37)             -6.9%
Noninterest expenses ...............................          1,642             1,676             (34)             -2.0%
Income tax expense .................................            410               348              62              17.8%
                                                            -------           -------         -------
Net income .........................................        $   939           $   742         $   197              26.5%
                                                            =======           =======         =======
</TABLE>


Six Months Ended June 30, 2007 and 2006

         The Company recorded  consolidated net income of $1,896,000 or $.64 per
share,  for the first half of 2007,  compared with  $1,653,000,  or earnings per
share of $.56,  for the same  period of 2006.  Net income  per  share,  assuming
dilution  was $.60 for the 2007 six months and $.53 for the same period of 2006.
Net  income  per share  amounts  for 2006 have been  retroactively  adjusted  to
reflect a five percent stock dividend effective December 18, 2006.

         Net  interest  income  for the first six  months of 2007  increased  by
$502,000,  or  11.0%,  over the  amount  recorded  for the same  period of 2006.
Increases  in the  amounts of loans  outstanding  and  higher  yields on earning
assets  resulted in interest  income  increasing  more than  interest  expenses.
Increases in interest  expense were caused by increases in interest  rates paid,
primarily  for  deposits,  and higher  amounts  of  interest  bearing  deposits,
especially time deposits.

         Noninterest  income  for the first  six  months  of 2007  decreased  by
$90,000 as a result of lower amounts of service  charges on deposit  accounts as
discussed   previously  and  a  decrease  in  income  from  mortgage   brokerage
operations.  In addition, during the 2006 six-month period, the Company realized
a gain of  $31,000  on the  sale of  foreclosed  assets.  No such  activity  was
recorded in the 2007 period.  Noninterest expenses for the 2007 six-month period
were only slightly higher than for the 2006 period. During the second quarter of
2006, the Company opened a new banking office in Seneca, SC. The 2007 amounts of
salaries and  benefits,  occupancy  expenses and similar  expenses  reflect such
expenses for the entire six months, while such expenses were incurred for only a
portion of the 2006 period.

         The  results  for the 2006  six-month  period  reflect  the  effects of
adopting SFAS 123(R).  Employee  benefits and  directors'  fees for the 2006 six
month  period  include  approximately  $123,000  representing  the effect of the
adoption of SFAS 123(R) using the modified prospective method.


                                       9
<PAGE>

<TABLE>
<CAPTION>
                                                                               Summary Income Statement
                                                                               ------------------------
                                                                                (Dollars in thousands)
For the Six Months Ended June 30,                               2007             2006           Dollar Change   Percentage Change
---------------------------------                               ----             ----           -------------   -----------------
<S>                                                           <C>               <C>               <C>                 <C>
Interest income ....................................          $11,481           $ 9,450           $ 2,031              21.5%
Interest expense ...................................            6,410             4,881             1,529              31.3%
                                                              -------           -------            ------
Net interest income ................................            5,071             4,569               502              11.0%
Provision for loan losses ..........................              120                50                70             140.0%
Noninterest income .................................              988             1,078               (90)             -8.3%
Noninterest expenses ...............................            3,176             3,112                64               2.1%
Income tax expense .................................              867               832                35               4.2%
                                                              -------           -------           -------
Net income .........................................          $ 1,896           $ 1,653           $   243              14.7%
                                                              =======           =======           =======
</TABLE>

Net Interest Income


         Net interest income is the principal source of the Company's  earnings.
During the second quarter of 2006, the Company offered above-market  promotional
interest rates on certain deposit  products in conjunction with the opening of a
new retail banking office in Seneca,  SC. These promotional rates  significantly
increased the Company's  interest  expense during that period.  The  promotional
program ended during the third quarter of 2006.  Competition for deposits in the
Company's market area is strong and the Company strives to differentiate  itself
from its competitors in several ways.  While the Company  continues to emphasize
providing a high level of personal service as a differentiating  characteristic,
financial  incentives  must also be offered.  Therefore,  management  prices its
deposit products competitively.

Three Months Ended June 30, 2007 and 2006

         The average yield on interest earning assets increased to 6.59% for the
2007 three-month period,  compared with 5.94% for the 2006 period. Yields on all
significant  categories  of  earning  assets  were  higher  in the 2007  period.
Similarly,  interest rates paid for deposits and  borrowings  were higher in the
2007 period. The average rate paid for  interest-bearing  liabilities during the
2007  three-month  period was 4.39%,  compared  with 3.84% in the same period of
2006.  Accordingly,  the average interest rate spread for the 2007 period was 10
basis points higher than for the 2006 period.



                                       10
<PAGE>

<TABLE>
<CAPTION>
                                                                            Average Balances, Yields and Rates
                                                                               Three Months Ended June 30,
                                                                               ---------------------------
                                                                          2007                              2006
                                                                          ----                              ----
                                                                        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 balances due from banks .............. $      130     $     -      0.00%      $      92     $     2        8.72%
Securities
      Taxable .........................................     91,844         994      4.34%         99,894         957        3.84%
      Tax exempt (2) ..................................     19,499         217      4.46%         16,283         158        3.89%
                                                        ----------     -------                 ---------     -------
           Total investment securities ................    111,343       1,211      4.36%        116,177       1,115        3.85%
Other investments .....................................        890          14      6.31%            980          13        5.32%
Federal funds sold ....................................     23,533         320      5.45%         27,163         330        4.87%
Loans (2) (3) (4) .....................................    218,074       4,275      7.86%        179,896       3,343        7.45%
                                                        ----------     -------                 ---------     -------
           Total interest earning assets ..............    353,970       5,820      6.59%        324,308       4,803        5.94%
Cash and due from banks ...............................      8,374                                 6,615
Allowance for loan losses .............................     (2,228)                               (2,266)
Valuation allowance - available-for-sale securities ...     (1,023)                               (2,891)
Premises and equipment ................................      8,007                                 7,507
Other assets ..........................................      3,640                                 3,988
                                                        ----------                             ----------
           Total assets ............................... $  370,740                             $ 337,261
                                                        ==========                             =========

Liabilities and shareholders' equity
Interest bearing deposits
      Interest bearing transaction accounts ........... $   59,327     $   483      3.27%      $  44,578     $   356        3.20%
      Savings .........................................     25,715         170      2.65%         28,053         185        2.65%
      Time deposits $100M and over ....................     80,644         945      4.70%         73,060         733        4.02%
      Other time deposits .............................    122,491       1,558      5.10%        114,273       1,216        4.27%
                                                        ----------     -------                 ---------     -------
           Total interest bearing deposits ............    288,177       3,156      4.39%        259,964       2,490        3.84%
Long-term debt ........................................      5,368          55      4.11%          6,335          61        3.86%
                                                        ----------     -------                 ---------     -------
           Total interest bearing liabilities .........    293,545       3,211      4.39%        266,299       2,551        3.84%
Noninterest bearing demand deposits ...................     39,295                                38,705
Other liabilities .....................................      3,181                                 2,546
Shareholders' equity ..................................     34,719                                29,711
                                                        ----------                             ---------
           Total liabilities and shareholders' equity . $  370,740                             $ 337,261
Interest rate spread                                                                2.20%                                   2.10%
Net interest income and net yield on earning assets ...                $ 2,609      2.96%                    $ 2,252        2.79%
Interest free funds supporting earning assets ......... $   60,425                             $  58,009
</TABLE>
-----------------------------------------
(1)  Yields and rates are annualized
(2)  Yields on tax exempt instruments have not been adjusted to a tax-equivalent
     basis.
(3)  Nonaccrual  loans are included in the average  loan  balances and income on
     such loans is recognized on a cash basis.
(4)  Includes immaterial amounts of loan fees.


                                       11
<PAGE>

Six Months Ended June 30, 2007 and 2006

         For the first  half of 2007,  the  average  yield on  interest  earning
assets was 6.49%, compared with 5.82% for the 2006 period. Yields were higher on
substantially  all types of earning assets in the 2007 period.  Loan yields were
higher because a significant portion of the Company's loan portfolio consists of
variable  rate  instruments.  Such  loans,  as  offered by the  Company,  do not
normally subject the borrower to the risk of negative  amortization,  nor do the
loans  involve the use of "teaser"  rates or impose  onerous fees or other terms
that would discourage  borrowers from refinancing to a lower cost product or one
with a fixed rate.  Yields earned on securities  increased due to changes in the
composition  of the  securities  portfolio  brought  about  by  reinvesting  the
proceeds  obtained from  maturities,  calls and paydowns of  securities  and the
investment of other funds, such as deposits, obtained currently.

         Average rates paid on  interest-bearing  liabilities were higher in the
2007 period, as well, at 4.36% compared with 3.63% in the 2006 six-month period.
General increases in interest rates and competitive  factors were primary causes
of the increase in rates paid.



                                       12
<PAGE>

<TABLE>
<CAPTION>
                                                                            Average Balances, Yields and Rates
                                                                                   Six Months Ended June 30,
                                                                                   -------------------------
                                                                            2007                                2006
                                                                            ----                                ----
                                                                          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 balances due from banks ................ $       98     $     1      2.06%      $     132       $     4       6.11%
Securities
      Taxable ...........................................     90,135       1,932      4.32%        100,649         1,888       3.78%
      Tax exempt (2) ....................................     19,595         404      4.16%         14,274           278       3.93%
                                                          ----------     -------                 ---------       -------
           Total investment securities ..................    109,730       2,336      4.29%        114,923         2,166       3.80%
Other investments .......................................        935          29      6.25%            964            24       5.02%
Federal funds sold ......................................     32,830         862      5.29%         36,162           823       4.59%
Loans (2) (3) (4) .......................................    213,064       8,253      7.81%        175,438         6,433       7.39%
                                                          ----------     -------                 ---------       -------
           Total interest earning assets ................    356,657      11,481      6.49%        327,619         9,450       5.82%
Cash and due from banks .................................      8,031                                 6,715
Allowance for loan losses ...............................     (2,228)                               (2,265)
Valuation allowance - available-for-sale securities .....     (1,119)                               (2,560)
Premises and equipment ..................................      7,957                                 7,266
Other assets ............................................      3,713                                 3,933
                                                          ----------                             ---------
           Total assets ................................. $  373,011                             $ 340,708
                                                          ==========                             =========

Liabilities and shareholders' equity
Interest bearing deposits
      Interest bearing transaction accounts ............. $   57,291     $   916      3.22%      $  40,185       $   497       2.49%
      Savings ...........................................     32,966         523      3.20%         36,089           499       2.79%
      Time deposits $100M and over ......................     80,442       1,863      4.67%         74,767         1,465       3.95%
      Other time deposits ...............................    119,992       2,996      5.04%        113,612         2,295       4.07%
                                                          ----------     -------                 ---------       -------
           Total interest bearing deposits ..............    290,691       6,298      4.37%        264,653         4,756       3.62%
Short-term borrowings ...................................         25           3     24.20%             38             2      10.61%
Long-term debt ..........................................      5,434         109      4.05%          6,417           123       3.87%
                                                          ----------     -------                 ---------       -------
           Total interest bearing liabilities ...........    296,150       6,410      4.36%        271,108         4,881       3.63%
Noninterest bearing demand deposits .....................     39,492                                37,562
Other liabilities .......................................      3,180                                 2,525
Shareholders' equity ....................................     34,189                                29,513
                                                          ----------                             ---------
           Total liabilities and shareholders' equity ... $  373,011                             $ 340,708
Interest rate spread                                                                  2.13%                                    2.19%
Net interest income and net yield on earning assets .....                $ 5,071      2.87%                      $ 4,569       2.81%
Interest free funds supporting earning assets ........... $   60,507                             $  56,511
</TABLE>
-----------------------------------------
(1)  Yields and rates are annualized
(2)  Yields on tax exempt instruments have not been adjusted to a tax-equivalent
     basis.
(3)  Nonaccrual  loans are included in the average  loan  balances and income on
     such loans is recognized on a cash basis.
(4)  Includes immaterial amounts of loan fees.



                                       13
<PAGE>


Provision and Allowance for Loan Losses

         The  provision  for loan losses was $120,000 for the second  quarter of
2007,  compared with $25,000 for the  comparable  period of 2006.  For the first
half of 2007, the provision for loan losses was $120,000,  compared with $50,000
recorded for the first half of 2006.  At June 30, 2007,  the  allowance for loan
losses was 1.01% of loans, down slightly from 1.10% at December 31, 2006.

         For the first six  months of 2007,  net  charge-offs  totaled  $83,000,
compared  with $47,000 in net charge offs during the same period of 2006.  As of
June 30, 2007,  there were $412,000 in nonaccrual  loans and no loans 90 days or
more past due and still  accruing  interest.  As of June 30,  2006,  there  were
$497,000  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>
                                                                             Six Months           Year Ended            Six Months
                                                                               Ended              December 31,             Ended
                                                                             June 30, 2007           2006              June 30, 2006
                                                                             -------------           ----              -------------
                                                                                              (Dollars in thousands)
<S>                                                                          <C>                   <C>                   <C>
Allowance at beginning of period .................................           $   2,242             $   2,266             $   2,266
Provision for loan losses ........................................                 120                    65                    50
Net charge-offs ..................................................                 (83)                  (89)                  (47)
                                                                             ---------             ---------             ---------
Allowance at end of period .......................................           $   2,279             $   2,242             $   2,269
                                                                             =========             =========             =========
Allowance as a percentage of loans outstanding
  at period end ..................................................                1.01%                 1.10%                 1.22%
Loans at end of period ...........................................           $ 225,971             $ 202,966             $ 186,050
                                                                             =========             =========             =========
</TABLE>



                                       14
<PAGE>

Non-Performing and Potential Problem Loans

<TABLE>
<CAPTION>
                                                      90 Days or
                                                    More Past Due        Total         Percentage                       Percentage
                                      Nonaccrual       and Still     Nonperforming      of Total      Potential          of Total
                                        Loans           Accruing          Loans           Loans      Problem Loans        Loans
                                        -----           --------          -----           -----      -------------        -----
                                                                            (Dollars in thousands)
<S>                                      <C>             <C>             <C>              <C>         <C>                  <C>
January 1, 2006 ................         $  900          $    5          $  905           0.53%       $  2,148             1.27%
Net change .....................           (321)             (5)           (326)                           615
                                         ------          ------          ------                       --------
March 31, 2006 .................            579               -             579           0.34%          2,763             1.61%
Net change .....................            (82)              -             (82)                         1,047
                                         ------          ------          ------                       --------
June 30, 2006 ..................            497               -             497           0.27%          3,810             2.05%
Net change .....................            (16)              -             (16)                          (151)
                                         ------          ------          ------                       --------
September 30, 2006 .............            481               -             481           0.25%          3,659             1.89%
Net change .....................           (431)              -            (431)                          (483)
                                         ------          ------          ------                       --------
December 31, 2006 ..............             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%
                                         ======          ======          ======                       ========
</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.  As of  June  30,  2007,  approximately  73% of the  Company's
potential  problem loans were included in the Company's  "least severe" category
of potential problem loans.

Noninterest Income

         Noninterest  income  totaled  $502,000 for the second  quarter of 2007,
compared with $539,000 for the 2006 quarter. Service charges on deposit accounts
in the 2007 second  quarter were  $343,000,  representing  a decrease of $39,000
from the prior year quarter.  Mortgage brokerage income in the second quarter of
2007 was approximately $9,000 less than in the 2006 quarter. There were no sales
of any securities in either the 2007 or 2006 second quarter.

         For the six months  ended June 30,  2007,  noninterest  income  totaled
$988,000,  compared with $1,078,000 for the same period of 2006. Service charges
on deposit  accounts in the 2007 six months period were $677,000  representing a
decrease of $69,000 from the prior year period. Mortgage brokerage income in the
2007 six months period was  approximately  $18,000 less than in the 2006 period.
No gains or losses on sales of securities  were recognized in either the 2007 or
2006 six months period. A gain of $31,000 from the sale of foreclosed assets was
recognized in the 2006 period, but there was no comparable  activity in the 2007
period.

Noninterest Expenses

         Noninterest  expenses totaled $1,642,000 for the second quarter of 2007
compared with  $1,676,000 for the same quarter of 2006,  representing a decrease
of  $34,000.  Compared  with the 2006  period,  employee  benefits  for the 2007
three-month  period decreased by $16,000 and directors fees decreased by $45,000
as a result of the Company's  accelerating  the vesting,  and the recognition of
the associated expenses,  of all  previously-issued  stock options in the fourth
quarter  of 2006.  The  Company  does not plan to issue any form of  share-based
compensation for the foreseeable  future.  Occupancy  expenses increased for the
2007  three-month  period  due to  higher  utility  expenses  and  increases  in
depreciation and other expenses related to the new Seneca office.

         For the six months ended June 30, 2007,  salaries and employee benefits
increased by $66,000  over the amount for the 2006 period  primarily as a result
of opening the new Seneca  office.  Net  occupancy  and  furniture and equipment
expenses increased by an aggregate of $60,000.

         The Company continues to pursue a strategy to increase its market share
in its local  market areas in Anderson  and Oconee  Counties of South  Carolina.
Oconee County is served from four offices which are located in Seneca,  Walhalla
and  Westminster.  The Anderson County market is served from offices in Anderson


                                       15
<PAGE>

and  Williamston.  The Company started  construction of an additional  office on
Highway 81 in Anderson County during the second quarter of 2007. This new office
is expected to open for business during the fourth quarter of 2007.

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.  The Company has significant  amounts of
credit  availability  under its FHLB lines of credit and federal funds purchased
facilities.

         As of June 30,  2007,  the ratio of loans to total  deposits was 68.9%,
compared  with 65.9% as of December 31, 2006.  Deposits as of June 30, 2007 were
$328,185,000,  an increase of $20,228,000 or 6.6% over the amount as of December
31, 2006.  Management believes that the Company's liquidity sources are adequate
to meet its operating needs.

Capital Resources

         The Company's  capital base increased by $1,304,000  since December 31,
2006 as the result of net income of $1,896,000 for the first six months of 2007,
less a $668,000  change in  unrealized  gains and  losses on  available-for-sale
securities,  net of deferred  income tax effects and $76,000  received  from the
exercise of employee  stock  options.  Unrealized  losses on  available-for-sale
securities  are  not  considered  to be  other  than  temporary.  The  Company's
available-for-sale  securities consist of debt issuances of government-sponsored
enterprises. While not directly guaranteed by the U. S. Government, these issues
are  generally  considered to be of high quality and default risk is believed to
be remote. Therefore, the changes in market values are believed to be the result
only of changes in market interest rates. In addition, the Company currently has
both the intent and the ability to hold such  securities  until the market value
recovers, including until maturity.

         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,  2007 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 ...............   15.1%      16.1%       9.7%
Community First Bank .........................   14.6%      15.5%       9.3%
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 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:


                                       16
<PAGE>



                                  June 30, 2007
                                  -------------
                                   (Dollars in
                                   thousands)
Loan commitments ...............  $ 44,874
Standby letters of credit ......     1,114


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 or six months  ended June 30,
2007.

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

Item 3.  - Quantitative and Qualitative Disclosures About Market Risk

The Company's  exposure to market risk is primarily  related to the risk of loss
from adverse  changes in market prices and rates.  This risk arises  principally
from interest rate risk inherent in the Company's lending, deposit gathering and
borrowing activities. Management actively monitors and manages its interest rate
risk exposure.  Although the Company manages other risks, such as credit quality
and  liquidity  risk in the  normal  course of  business,  management  considers
interest  rate risk to be its most  significant  market risk and this risk could
potentially  have  the  largest  material  effect  on  the  Company's  financial
condition  and  results  of  operations.  Other  types of market  risk,  such as
commodity  price risk and foreign  currency  exchange  risk, do not arise in the
normal course of the Company's community banking operations.

The Company uses a simulation model to assist in achieving  consistent growth in
net interest  income while managing  interest rate risk. As of June 30 2007, the
model indicates that net interest  income would decrease  $59,000 and net income
would  decrease  $38,000 in the next twelve months if interest rates rose by 100
basis points.  Conversely,  net interest  income would increase  $83,000 and net
income  would  increase  $53,000 in the next  twelve  months if  interest  rates
declined by 100 basis  points.  In the current  interest  rate  environment,  it
appears  unlikely that there will be any large changes in interest  rates in the
immediate future. The prospective effects of hypothetical  interest rate changes
are based on a number of  assumptions,  including the relative  levels of market
interest rates and prepayment  assumptions  affecting  loans,  and should not be
relied on as indicative of actual future results.  The prospective  effects also
do not  contemplate  potential  actions that the Company,  its customers and the
issuers of its investment  securities  could undertake in response to changes in
interest rates.

As of June 30, 2007,  there was no  significant  change from the  interest  rate
sensitivity  analysis for the various changes in interest rates calculated as of
December 31, 2006.  The foregoing  disclosures  related to the Company's  market
risk should be read in conjunction with Management's  Discussion and Analysis of
Financial Condition and Results of Operations included in the 2006 Annual Report
on Form 10-K filed with the Securities and Exchange Commission.

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.


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<PAGE>



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

         On  Tuesday,  April 24,  2007,  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       BROKER
         DIRECTORS                         FOR         WITHHELD     NON-VOTES
                                           ---         --------     ---------

         Blake L. Griffith .........   1,931,920          0            0
         Robert H. Edwards .........   1,931,920          0            0
         Gary V. Thrift ............   1,931,920          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 2007 annual  meeting:  James E. McCoy - 2008,  James E. Turner -
2008, Charles L. Winchester - 2008, Larry S. Bowman, MD - 2009, William M. Brown
- 2009, John R. Hamrick - 2009, and Frederick D. Shepherd, Jr. - 2009.


Item 6. - Exhibits

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

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





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<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

August 9, 2007                     /s/ Frederick D. Shepherd, Jr.
-----------------                  ---------------------------------------------
         Date                       Frederick D. Shepherd, Jr., Chief Executive
                                    Officer and Chief Financial Officer



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<PAGE>

                                  EXHIBIT INDEX


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

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







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