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 September 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 (2)
has been subject to such filing requirements for the past 90 days.

         Yes [X]  No [ ]

         State the number of shares  outstanding of each of the issuer's classes
of common equity,  as of the latest  practicable  date:  Common Stock, no par or
stated value, 2,407,878 Shares Outstanding on October 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 6.      Exhibits and Reports on Form 8-K ............................    13

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




                                       2
<PAGE>


                         PART I - FINANCIAL INFORMATION

Item 1. - Financial Statements

COMMUNITY FIRST BANCORPORATION
Consolidated Balance Sheet
<TABLE>
<CAPTION>
                                                                                                      (Unaudited)
                                                                                                     September 30,      December 31,
                                                                                                          2004               2003
                                                                                                          -----              ----
                                                                                                           (Dollars in thousands)
Assets
<S>                                                                                                    <C>                <C>
     Cash and due from banks .................................................................         $   4,586          $   7,560
     Interest bearing deposits due from banks ................................................                 2                 29
     Federal funds sold ......................................................................            16,145             31,916
     Securities available-for-sale ...........................................................            97,600             86,023
     Securities held-to-maturity (estimated fair value $9,901) ...............................             9,691                  -
     Other investments .......................................................................               897                750
     Loans ...................................................................................           155,483            147,650
         Allowance for loan losses ...........................................................            (2,318)            (2,197)
                                                                                                       ---------          ---------
            Loans - net ......................................................................           153,165            145,453
     Premises and equipment - net ............................................................             4,289              4,454
     Accrued interest receivable .............................................................             1,542              1,424
     Other assets ............................................................................             2,201              2,917
                                                                                                       ---------          ---------

            Total assets .....................................................................         $ 290,118          $ 280,526
                                                                                                       =========          =========

Liabilities
     Deposits
         Noninterest bearing .................................................................         $  33,922          $  32,273
         Interest bearing ....................................................................           219,435            224,278
                                                                                                       ---------          ---------
            Total deposits ...................................................................           253,357            256,551
     Short-term borrowings ...................................................................             2,500                  -
     Long-term debt ..........................................................................             7,500                  -
     Accrued interest payable ................................................................             1,117              1,357
     Other liabilities .......................................................................               364                 81
                                                                                                       ---------          ---------
            Total liabilities ................................................................           264,838            257,989
                                                                                                       ---------          ---------

Shareholders' equity
     Common stock - no par  value; 10,000,000 shares authorized; issued and
         outstanding - 2,407,878 for 2004 and 2,362,057 for 2003 .............................            19,888             19,620
     Retained earnings .......................................................................             5,683              3,117
     Accumulated other comprehensive income ..................................................              (291)              (200)
                                                                                                       ---------          ---------
            Total shareholders' equity .......................................................            25,280             22,537
                                                                                                       ---------          ---------

            Total liabilities and shareholders' equity .......................................         $ 290,118          $ 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 September 30,
                                                                                         --------------------------
                                                                              Three Months                         Nine Months
                                                                              ------------                         -----------
                                                                          2004             2003              2004              2003
                                                                          ----             ----              ----              ----
                                                                                  (Dollars in thousands, except per share)
Interest income
<S>                                                                    <C>               <C>              <C>               <C>
     Loans, including fees ...................................         $  2,588          $  2,496         $  7,638          $  7,420
     Securities
       Taxable ...............................................              955               536            2,457             1,601
       Tax-exempt ............................................               18                 3               55                 8
     Other investments .......................................                8                 8               21                21
     Federal funds sold ......................................               51                97              177               342
                                                                       --------          --------         --------          --------
         Total interest income ...............................            3,620             3,140           10,348             9,392
                                                                       --------          --------         --------          --------

Interest expense
     Time deposits $100M and over ............................              347               414            1,085             1,228
     Other deposits ..........................................              818               901            2,550             2,588
     Short-term borrowings ...................................               11                 -               13                 -
     Long-term debt ..........................................               72                 -               79                 -
                                                                       --------          --------         --------          --------
         Total interest expense ..............................            1,248             1,315            3,727             3,816
                                                                       --------          --------         --------          --------

Net interest income ..........................................            2,372             1,825            6,621             5,576
Provision for loan losses ....................................              180                75              315               475
                                                                       --------          --------         --------          --------
Net interest income after provision ..........................            2,192             1,750            6,306             5,101
                                                                       --------          --------         --------          --------

Other income
     Service charges on deposit accounts .....................              393               355            1,155             1,071
     Credit life insurance commissions .......................                7                 8               26                29
     Net losses on sales of available-for-sale
           securities ........................................              (14)                -               (9)                -
     Gain on sale of loans held for sale .....................                -                 4                -               130
     Other income ............................................              138               118              367               227
                                                                       --------          --------         --------          --------
         Total other income ..................................              524               485            1,539             1,457
                                                                       --------          --------         --------          --------

Other expenses
     Salaries and employee benefits ..........................              708               659            2,089             1,754
     Net occupancy expense ...................................               69                61              209               158
     Furniture and equipment expense .........................               75                60              230               198
     Other expense ...........................................              451               352            1,311             1,070
                                                                       --------          --------         --------          --------
         Total other expenses ................................            1,303             1,132            3,839             3,180
                                                                       --------          --------         --------          --------

Income before income taxes ...................................            1,413             1,103            4,006             3,378
Income tax expense ...........................................              509               374            1,440             1,185
                                                                       --------          --------         --------          --------
Net income ...................................................         $    904          $    729         $  2,566          $  2,193
                                                                       ========          ========         ========          ========

Per share*
     Net income ..............................................         $   0.38          $   0.31         $   1.07          $   0.93
     Net income, assuming dilution ...........................             0.36              0.29             1.02              0.88
</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
                                                                      ------------                           Other
                                                                 Number of                    Retained   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 .............................................             -             -         2,193             -          2,193
                                                                                                                          ---------
    Unrealized holding gains and losses
      on available-for-sale securities arising
      during the period, net of income taxes of $291 .......             -             -             -          (519)          (519)
                                                                                                                          ---------
         Total other comprehensive income ..................             -             -             -             -           (519)
                                                                                                                          ---------
           Total comprehensive income ......................             -             -             -             -          1,674
                                                                                                                          ---------
Exercise of employee stock options .........................         6,852            29             -             -             29
                                                                 ---------     ---------     ---------     ---------      ---------
Balance, September 30, 2003 ................................     2,249,269     $  17,598     $   4,330     $    (140)     $  21,788
                                                                 =========     =========     =========     =========      =========



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

Comprehensive income:
    Net income .............................................             -             -         2,566             -          2,566
                                                                                                                          ---------
    Change in unrealized holding gains and losses
      on available-for-sale securities arising
      during the period, net of income taxes of $55 ........             -             -             -           (97)           (97)
    Reclassification adjustment for losses (gains)
      realized in income, net of income taxes of $3 ........             -             -             -             6              6
                                                                                                                          ---------
         Total other comprehensive income ..................             -             -             -             -            (91)
                                                                                                                          ---------
           Total comprehensive income ......................             -             -             -             -          2,475
                                                                                                                          ---------
Exercise of employee stock options .........................        45,821           268             -             -            268
                                                                 ---------     ---------     ---------     ---------      ---------
Balance, September 30, 2004 ................................     2,407,878     $  19,888     $   5,683     $    (291)     $  25,280
                                                                 =========     =========     =========     =========      =========
</TABLE>











See accompanying notes to unaudited consolidated financial statements.

                                       5
<PAGE>

COMMUNITY FIRST BANCORPORATION
Consolidated Statement of Cash Flows
<TABLE>
<CAPTION>
                                                                                                                  (Unaudited)
                                                                                                               Nine Months Ended
                                                                                                                 September 30,
                                                                                                            2004              2003
                                                                                                            ----              ----
                                                                                                             (Dollars in thousands)
Operating activities
<S>                                                                                                      <C>               <C>
     Net income ................................................................................         $  2,566          $  2,193
     Adjustments to reconcile net income to net
         cash provided by operating activities
            Provision for loan losses ..........................................................              315               475
            Writedowns of other real estate owned ..............................................              125                 -
            Depreciation .......................................................................              213               165
            Amortization of net loan (fees) and costs ..........................................              (67)              (42)
            Securities accretion and premium amortization ......................................              664               798
            Net losses on sale of available-for-sale securities ................................                9                 -
            Gain on sale of loans held for sale ................................................                -              (130)
            Increase in interest receivable ....................................................             (118)              (74)
            (Decrease) increase in interest payable ............................................             (240)              213
            Decrease (increase) in prepaid expenses and other assets ...........................              183              (533)
            Increase (decrease) in other accrued expenses ......................................              283                46
            Proceeds of sale of loans held for sale ............................................                -             4,559
            Originations of loans held for sale ................................................                -            (4,218)
                                                                                                         --------          --------
                Net cash provided by operating activities ......................................            3,933             3,452
                                                                                                         --------          --------

Investing activities
     Purchases of available-for-sale securities ................................................          (52,381)          (77,874)
     Purchases of held-to-maturity securities ..................................................           (9,949)                -
     Maturities and calls of available-for-sale securities .....................................           34,973            50,711
     Proceeds of sales of available-for-sale securities ........................................            5,273                 -
     Purchases of other investments ............................................................             (147)             (195)
     Net increase in loans made to customers ...................................................           (8,101)           (8,054)
     Purchases of premises and equipment .......................................................              (48)             (249)
     Proceeds from sale of real estate held for sale ...........................................              212                 -
     Proceeds from sale of other real estate ...................................................              389                 -
                                                                                                         --------          --------
                Net cash used by investing activities ..........................................          (29,779)          (35,661)
                                                                                                         --------          --------

Financing activities
     Net (decrease) increase in demand deposits, interest
         bearing transaction accounts and savings accounts .....................................           (1,116)           11,252
     Net (decrease) increase in certificates of deposit and other
         time deposits .........................................................................           (2,078)           27,464
     Net increase in short-term debt ...........................................................            2,500                 -
     Proceeds of issuance of long-term debt ....................................................            7,500                 -
     Exercise of employee stock options ........................................................              268                29
                                                                                                         --------          --------
                Net cash provided by financing activities ......................................            7,074            38,745
                                                                                                         --------          --------
(Decrease) increase in cash and cash equivalents ...............................................          (18,772)            6,536
Cash and cash equivalents, beginning ...........................................................           39,505            26,617
                                                                                                         --------          --------
Cash and cash equivalents, ending ..............................................................         $ 20,733          $ 33,153
                                                                                                         ========          ========

Supplemental Disclosure of Cash Flow Information
     Cash paid during the period for:
         Interest ..............................................................................         $  3,967          $  3,603
         Income taxes ..........................................................................            1,136             1,228
     Noncash investing and financing activities:
         Transfer of loans to other real estate ................................................              141               696
         Other comprehensive income (loss) .....................................................               91             1,674
</TABLE>

See accompanying notes to unaudited consolidated financial statements.

                                       6
<PAGE>

COMMUNITY FIRST BANCORPORATION
Notes to Unaudited Consolidated Financial Statements

Accounting  Policies - A summary of significant  accounting policies is included
in Community First  Bancorporation's  (the "Company") Annual Report for the year
ended  December 31, 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  September  30,  2004,  there  were  $793,000  of
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.  Per  share
information  for 2003 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 September 30,
                                                                                     --------------------------
                                                                          Three Months                          Nine Months
                                                                          ------------                          -----------
                                                                    2004               2003               2004              2003
                                                                    ----               ----               ----              ----
                                                                          (Dollars in thousands, except per share amounts)

Net income per share, basic
<S>                                                              <C>                <C>                <C>                <C>
  Numerator - net income ...............................         $      904         $      729         $    2,566         $    2,193
                                                                 ==========         ==========         ==========         ==========
  Denominator
    Weighted average common shares
      issued and outstanding ...........................          2,407,425          2,361,721          2,397,592          2,360,966
                                                                 ==========         ==========         ==========         ==========

      Net income per share, basic ......................         $      .38         $      .31         $     1.07         $      .93
                                                                 ==========         ==========         ==========         ==========

Net income per share, assuming dilution
  Numerator - net income ...............................         $      904         $      729         $    2,566         $    2,193
                                                                 ==========         ==========         ==========         ==========
  Denominator
    Weighted average common shares
      issued and outstanding ...........................          2,407,425          2,361,721          2,397,592          2,360,966
  Effect of dilutive stock options .....................            135,624            118,838            126,735            118,838
                                                                 ----------         ----------         ----------         ----------
               Total shares ............................          2,543,049          2,480,559          2,524,327          2,479,804
                                                                 ==========         ==========         ==========         ==========

    Net income per share, assuming dilution ............         $      .36         $      .29         $     1.02         $      .88
                                                                 ==========         ==========         ==========         ==========
</TABLE>

Stock-Based  Compensation  - As of  September  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  recognized 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 September 30,
                                                                                         --------------------------
                                                                               Three Months                      Nine Months
                                                                               ------------                      -----------
                                                                            2004           2003              2004             2003
                                                                            ----           ----              ----             ----
                                                                              (Dollars in thousands, except per share amounts)

<S>                                                                      <C>             <C>             <C>               <C>
Net income, as reported ........................................         $   904         $   729         $   2,566         $   2,193
Deduct:  Total stock-based employee
     compensation expense determined under
     fair value based method for all awards,
     net of any related tax effects ............................              60              67               179               200
                                                                         -------         -------         ---------         ---------
Pro forma net income ...........................................         $   844         $   662         $   2,387         $   1,993
                                                                         =======         =======         =========         =========

Net income per share, basic
     As reported ...............................................         $ 0.38          $  0.31         $    1.07         $    0.93
     Pro forma .................................................           0.35             0.28              0.99              0.83
Net income per share, assuming dilution
     As reported ...............................................         $ 0.36          $  0.29         $    1.02         $    0.88
     Pro forma .................................................           0.33             0.27              0.95              0.80
</TABLE>


                                       8
<PAGE>

Item 2. - Management's Discussion and Analysis

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 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  recorded  consolidated  net income of
$904,000, or $.38 per share, for the third quarter, and $2,566,000, or $1.07 per
share, for the first nine months of 2004.  During 2003, the Company recorded net
income of $729,000 or $.31 per share for the third quarter,  and $2,193,000,  or
$.93 per share,  for the first  nine  months.  Net  income  per share,  assuming
dilution, for the three and nine month periods ended September 30, 2004 was $.36
and $1.02, respectively.  For the comparable 2003 periods, net income per share,
assuming dilution, was $.29 and $.88, respectively. Net income per share figures
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 and other borrowings),
and is the principal  source of the Company's  earnings.  Net interest income is
affected  by the level of  interest  rates and by the volume and mix of interest
earning assets and interest bearing liabilities.

         For the first nine months of 2004, net interest  income was $6,621,000,
an  increase  of  $1,045,000  or 18.7% from the first nine  months of 2003.  The
increase in net interest income for the 2004 period resulted from the effects of
larger  volumes of  interest  earning  assets and lower  rates paid on  interest
bearing liabilities.

         The average rate earned on interest earning assets decreased by 2 basis
points to 4.90% for the first nine  months of 2004.  The  average  rate paid for
interest  bearing  liabilities  during the 2004 nine month  period was 2.11%,  a
decrease of 24 basis points from the same 2003 period.

         Average interest earning assets during the 2004 nine-month  period were
$282,288,000,  an increase of $27,005,000 or 10.6% over the comparable period of
2003.  Average loans for the 2004  nine-month  period totaled  $151,287,000,  an
increase of $9,972,000 or 7.1% over the same period of 2003.  Average loans were
53.6%  and  55.4%  of  average  interest  earning  assets  for the 2004 and 2003
nine-month  periods,  respectively.  Average investment  securities for the 2004
nine month period were  $106,226,000,  an increase of  $35,473,000 or 50.1% over
the 2003 amount.  Average federal funds sold for the 2004 nine-month period were
$23,896,000,  a decrease of  $18,604,000  or 43.8% from the same period of 2003.
Average  interest  bearing  liabilities  during the 2004 nine-month  period were
$236,478,000,  representing  an increase of  $19,631,000 or 9.1% over the amount
for the  same  period  of 2003.  Average  time  deposits  of  $100,000  and over
decreased to $60,066,000 for the 2004 nine-month  period from $63,882,000 in the
same prior year period, a decrease of $3,816,000 or 6.0%.  Average time deposits
less than $100,000 increased to $103,806,000 for the 2004 nine-month period from
$90,821,000 in the same period of 2003,  representing an increase of $12,985,000
or 14.3%. Average interest bearing transaction and savings accounts increased to
$68,738,000 for the 2004 nine-month  period,  an increase of $6,594,000 or 10.6%
from the same period of 2003.



                                       9
<PAGE>

         The average  interest rate spread  (average  yield on interest  earning
assets less the average rate paid on interest bearing liabilities) for the first
nine months of 2004 was 2.79%.  The comparable  figure for the first nine months
of 2003 was 2.57%.  Net yield on earning assets (net interest  income divided by
average interest earning assets) was 3.13% for the first nine months of 2004, an
increase  of 21 basis  points from the 2.92% net yield for the first nine months
of 2003.

         During the  twelve-month  period ended  September 30, 2004, the Federal
Reserve Bank's Open Market  Committee held interest  rates at  historically  low
levels  except  for  gradually  increasing  certain  key rates in the last three
months of that period. Consequently,  the prime rate, a key determinant of rates
charged to the Bank's most creditworthy customers and a factor considered in the
Company's  loan-pricing  decisions,  was  similarly  held at a low level,  until
rising  slightly  during the third  quarter of 2004.  As of September  30, 2004,
approximately  $57,000,000,  or  36.7%,  of the  Company's  loan  portfolio  was
composed of variable rate loans directly indexed to movements in the prime rate.
The average rate earned on loans during the first nine months of 2004 was 6.74%,
compared with 7.02% for the same period of 2003.

         During the first nine months of 2004, the Company increased  investment
securities by $21,268,000, or 24.7%. This increase was funded by both decreasing
the Company's  investment in federal funds sold and incurring other liabilities.
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%. These securities
were  designated  and are  accounted  for as  held-to-maturity  securities.  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 short- and
long-term  debt with an average life of  approximately  4.6 years and an average
cost  of  3.27%  at the  date  incurred.  Also  contributing  to  the  Company's
investment  activities  in the first nine months of 2004 were the  responses  of
securities  issuers  to  the  Federal  Reserve's  interest  rate  actions.  Many
securities  issuers  have  for  the  past  several  quarters  redeemed  callable
securities  that were issued at rates  higher than  current  rates.  The Company
generally replaced the called securities with new securities that generally were
issued at lower rates.

Provision and Allowance for Loan Losses,  Non-performing  and Potential  Problem
Loans

         The provision  for loan losses  charged to expense was $180,000 for the
third quarter of 2004  compared with $75,000 for the third quarter of 2003,  and
totaled  $315,000 for the first nine months of 2004  compared  with $475,000 for
the comparable  period of 2003. At September 30, 2004 and December 30, 2003, the
allowance for loan losses was 1.49% of loans. During the 2004 nine-month period,
net charge-offs totaled $194,000,  compared with $181,000 charged off during the
same period of 2003. As of September 30, 2004, there were $793,000 in nonaccrual
loans and no loans over 90 days past due and still accruing interest. The amount
of  nonaccrual  loans at September  30, 2004 is $204,000 less than the amount of
nonaccrual  loans as of December 31, 2003. The majority of the nonaccrual  loans
are secured by vehicles and real estate. When the estimated net realizable value
of collateral associated with nonperforming loans is believed to be insufficient
to satisfy the debt,  management generally  charges-off the excess amount of the
debt.

         As of September 30, 2004, the Company's potential problem loans totaled
$2,086,000,  an  increase  of  $1,033,000  from the  amount of such  loans as of
December  31,  2003.   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. The increase in potential problem loans since
December  31,  2003  is  attributable   primarily  to  cash  flow   difficulties
experienced  by unrelated  borrowers on four real estate  secured  loans and one
commercial loan.  Management does not believe that the problems  associated with
these loans indicate the beginning of a trend or reflect any large-scale changes
in the  Company's  trade area.  Rather,  the  problems  are  believed to reflect
conditions peculiar to the borrowers themselves. The majority of other 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  $524,000  for the third  quarter of 2004,
compared with $485,000 for the 2003 quarter.  Noninterest  income was $1,539,000
for the first nine months of 2004 and $1,457,000  for the same 2003 period.  The
higher  noninterest  income in the 2004  periods was  attributable  primarily to
increased fees derived from charges assessed against deposit accounts.  In 2004,
the Company  reported no gains on sales of  mortgage  loans,  while in the first
nine  months  of 2003  such  gains  totaled  $130,000.  The  Company  no  longer
originates mortgage loans for its own account.  Instead, it acts as an agent for
another  financial  institution  which funds the loans. The Company now realizes
fee income earned in connection with these loan  originations in "other income."
For the nine months ended September 30, 2004, these fees totaled $106,000. There
were $9,000 in net realized losses on the sale of available-for-sale  securities
in the 2004 year-to-date  period. No securities gains or losses were realized in
the comparable 2003 period.


                                       10
<PAGE>


Noninterest Expenses

         Noninterest  expenses totaled $1,303,000 for the third quarter of 2004,
compared  with  $1,132,000  for the 2003  period,  representing  an  increase of
$171,000  or 15.1%.  Noninterest  expenses  were  $3,839,000  for the first nine
months of 2004 compared with  $3,180,000  for the same period of 2003.  Salaries
and  employee  benefits for the 2004 quarter  totaled  $708,000,  an increase of
$49,000  over the 2003 three  month  period.  For the first nine months of 2004,
salaries and employee  benefits totaled  $2,089,000  representing an increase of
$335,000 or 19.1% over the same period of 2003. This increase resulted primarily
from increased  staffing levels arising from the opening,  in the second quarter
of 2003, of the Company's fifth office,  which is located in Westminster,  South
Carolina,  and from normal  increases in salaries and wages granted from time to
time.

         Occupancy and furniture and equipment expenses for the third quarter of
2004 totaled $144,000,  an increase of $23,000, or 19.0% from the amount for the
same  period of 2003.  Such  expenses  increased  $83,000  during the first nine
months  of 2004 and  totaled  $439,000  for the 2004  nine-month  period.  These
expenses  increased in the 2004 periods primarily due to expenses related to the
banking  subsidiary's 2003 office expansion into the Westminster  market.  Other
expenses for the third  quarter of 2004 were  $99,000 or 28.1%  greater than the
comparable  period of 2003. Such expenses for the nine-month period of 2004 were
$241,000  or 22.5%  more  than  for the same  period  of  2003.  These  expenses
increased  primarily because of valuation  adjustments  related to the Company's
holdings of foreclosed  properties,  costs of computer software,  implementation
and promotion of imaging technology for customer statements and other uses.

         Management anticipates that higher amounts of noninterest expenses will
continue during the remainder of 2004.

Liquidity

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

         Deposits as of September 30, 2004  decreased by $3,194,000 or 1.2% from
the amount at December 31, 2003 and were  $3,002,000  or 1.2% greater than their
levels of September 30, 2003.

         As of  September  30,  2004,  the ratio of loans to total  deposits was
61.4%, compared with 57.6% as of December 31, 2003 and 57.7% as of September 30,
2003. The increase in the loan-to-deposit ratio for 2004 is generally the result
of decreased  deposit  volumes,  diversification  of funding  sources to include
non-deposit borrowings and increased loan volumes.

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

Capital Resources

         The Company's equity capital increased by $2,743,000 since December 31,
2003 as the result of net  income of  $2,566,000  for the first  nine  months of
2004,  $268,000 added from the exercise of employee stock options,  less $91,000
from changes in items of comprehensive  income,  primarily  unrealized losses on
available-for-sale investment securities, net of deferred taxes.

         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 September  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:


                                       11
<PAGE>

                                                              Total
                                                   Tier 1     Capital  Leverage
                                                   ------     -------  --------
Community First Bancorporation .................    15.0%      16.2%      8.7%
Community First Bank ...........................    14.3%      15.6%      8.3%
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 or 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:

                                            September 30, 2004
                                          (Dollars in thousands)
                                          ----------------------
Loan commitments ......................         $ 19,318
Standby letters of credit .............              859


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 are  involved  in  other  off-balance  sheet
contractual  relationships or transactions  that could result in liquidity needs
or other commitments or significantly impact earnings.

Accounting and Reporting Changes

Statement  of  Financial   Accounting   Standards  No.  150  ("SFAS  No.  150"),
"Accounting  for Certain  Financial  Instruments  with  Characteristics  of Both
Liabilities and Equity," requires  financial  instruments within its scope to be
classified as  liabilities  (or assets in some  circumstances).  SFAS No. 150 is
effective for financial instruments entered into or modified after May 31, 2003,
and otherwise  effective at the beginning of the first interim period  beginning
after  June 15,  2003,  except  for  certain  mandatorily  redeemable  financial
instruments.   For  those  mandatorily  redeemable  financial  instruments,  the
effective  date of certain  provisions of SFAS No. 150 has been deferred by FASB
Staff Position FAS 150-3. When fully  implemented,  the adoption of SFAS No. 150
is not expected to have a material on the Company's financial statements.

Effectiveness of the guidance issued in paragraphs 10-20 of Emerging Issues Task
Force ("EITF") Issue No 03-1, "The Meaning of Other-Than-Temporarily  Impairment
and Its  Application  to  Certain  Investments"  has been  delayed by FASB Staff
Position  EITF Issue  03-1-1  until the final  issuance of  proposed  EITF Issue
03-1-a,  "Implementation  Guidance for the  Application  of Paragraph 16 of EITF
Issue No  03-1..."  All  disclosures  required  by EITF Issue No 03-1 for annual
financial  statements  continue to be  effective  for fiscal  years ending after
December 15, 2003 for investments accounted for under FASB Statements No 115 and
124. For all other  investments  within the scope of this Issue, the disclosures
continue to be effective in annual financial  statements for fiscal years ending
after June 15, 2004. Additional disclosures for cost method investments continue


                                       12
<PAGE>

to be effective  for fiscal  years  ending after June 15, 2004.  The adoption of
this  EITF  is  not  expected  to  materially  affect  the  Company's  financial
statements.

The American  Institute of Certified Public  Accountants'  Accounting  Standards
Executive  Committee issued its Statement of Position ("SOP") 03-3,  "Accounting
for Certain Loans or Debt Securities Acquired in a Transfer," which is effective
generally for loans acquired in fiscal years  beginning after December 15, 2004.
Early  application is encouraged.  The SOP addresses  accounting for differences
between  contractual  cash flows and cash flows expected to be collected from an
investor's  initial investment in loans or debt securities (loans) acquired in a
transfer if those  differences  are  attributable,  at least in part,  to credit
quality. It includes loans acquired in business  combinations and applies to all
nongovernmental organizations,  including not-for-profit organizations.  The SOP
does not apply to loans  originated by the entity.  For loans acquired in fiscal
years  prior to this  SOP's  effective  date and  within  the scope of  Practice
Bulletin 6, the SOP also  amends the  application  of  Practice  Bulletin 6 with
regard to accounting for decreases in cash flows  expected to be collected.  The
adoption of this SOP as of January 1, 2005 is not  expected to have any material
impact on the Company's financial statements.


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 such controls and
procedures,  as of the end of the period covered by this quarterly report,  were
effective.

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


                           PART II - OTHER INFORMATION

Item 6. - Exhibits

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

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




                                       13
<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

November 12, 2004                             /s/ Frederick D. Shepherd, Jr.
-----------------                             ----------------------------------
         Date                                  Frederick D. Shepherd, Jr., Chief
                                               Executive Officer and Chief
                                               Financial Officer



                                       14
<PAGE>


                                  EXHIBIT INDEX


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

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
























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