SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

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

For Quarterly Period Ended June 30, 2001           Commission File No. 000-29640


                         COMMUNITY FIRST BANCORPORATION
 -------------------------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)


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


                            3685 Blue Ridge Boulevard
                         WALHALLA, SOUTH CAROLINA 29691
--------------------------------------------------------------------------------
                    (Address of principal executive offices)


                                 (864) 638-2105
--------------------------------------------------------------------------------
                           (Issuer's telephone number)

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

         Yes   [X]   No [ ]

         State the number of shares  outstanding of each of the issuer's classes
of common equity,  as of the latest  practicable  date:  Common Stock, no par or
stated value, 2,024,367 Shares Outstanding on July 31, 2001.

Transitional Small Business Format (Check one):  Yes [ ]  No    [X]


<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 .........................  9-11

PART II -  OTHER INFORMATION

Item 4.    Submission of Matters to a Vote of Security Holders ..........    12

Item 6.    Exhibits and Reports on Form 8-K .............................    12

SIGNATURE ...............................................................    13




                                       2
<Page>

                         PART I - FINANCIAL INFORMATION

Item 1. - Financial Statements

COMMUNITY FIRST BANCORPORATION
Consolidated Balance Sheet
<Table>
<Caption>
                                                                                                  (Unaudited)
                                                                                                    June 30,            December 31,
                                                                                                       2001                  2000
                                                                                                       -----                 ----
                                                                                                      (Dollars in thousands)
Assets
<S>                                                                                                 <C>                   <C>
     Cash and due from banks ...........................................................            $   3,750             $   4,027
     Interest bearing deposits due from banks ..........................................                   12                    16
     Federal funds sold ................................................................               38,614                15,580
     Securities available-for-sale .....................................................               58,890                57,862
     Other investments .................................................................                  480                   386
     Loans .............................................................................              104,010                97,562
         Allowance for loan losses .....................................................               (1,006)               (1,000)
                                                                                                    ---------             ---------
            Loans - net ................................................................              103,004                96,562
     Premises and equipment - net ......................................................                3,313                 3,411
     Accrued interest receivable .......................................................                1,436                 1,376
     Other assets ......................................................................                1,463                 1,846
                                                                                                    ---------             ---------

            Total assets ...............................................................            $ 210,962             $ 181,066
                                                                                                    =========             =========

Liabilities
     Deposits
         Noninterest bearing ...........................................................            $  25,005             $  21,224
         Interest bearing ..............................................................              167,963               143,159
                                                                                                    ---------             ---------
            Total deposits .............................................................              192,968               164,383
     Accrued interest payable ..........................................................                1,796                 1,760
     Other liabilities .................................................................                   45                    29
                                                                                                    ---------             ---------
            Total liabilities ..........................................................              194,809               166,172
                                                                                                    ---------             ---------

Shareholders' equity
     Common stock - no par value; 10,000,000 shares authorized;
         issued and outstanding - 2,024,367 for 2001 and
         2,022,623 for 2000 ............................................................               14,234                14,383
     Retained earnings .................................................................                1,780                   878
     Accumulated other comprehensive income (loss) .....................................                  139                  (367)
                                                                                                    ---------             ---------
            Total shareholders' equity .................................................               16,153                14,894
                                                                                                    ---------             ---------

            Total liabilities and shareholders' equity .................................            $ 210,962             $ 181,066
                                                                                                    =========             =========
</Table>







See accompanying notes to unaudited consolidated financial statements.



                                       3
<Page>

COMMUNITY FIRST BANCORPORATION
Consolidated Statement of Income
<Table>
<Caption>
                                                                                                  (Unaudited)
                                                                                             Period Ended June 30,
                                                                                             ---------------------
                                                                                 Three Months                       Six Months
                                                                                 ------------                       ----------
                                                                             2001            2000              2001            2000
                                                                             ----            ----              ----            ----
                                                                                    (Dollars in thousands, except per share)

Interest income
<S>                                                                        <C>              <C>              <C>              <C>
     Loans, including fees .....................................           $2,252           $1,834           $4,471           $3,508
     Securities
       Taxable .................................................              921              895            1,876            1,782
       Tax-exempt ..............................................                3                3                5                5
     Other investments .........................................                7                7               15               15
     Federal funds sold ........................................              391              167              865              531
                                                                           ------           ------           ------           ------
         Total interest income .................................            3,574            2,906            7,232            5,841
                                                                           ------           ------           ------           ------

Interest expense
     Time deposits $100M and over ..............................              712              552            1,435            1,110
     Other deposits ............................................            1,513            1,067            3,166            2,170
                                                                           ------           ------           ------           ------
         Total interest expense ................................            2,225            1,619            4,601            3,280
                                                                           ------           ------           ------           ------

Net interest income ............................................            1,349            1,287            2,631            2,561
Provision for loan losses ......................................               95              105              175              182
                                                                           ------           ------           ------           ------
Net interest income after provision ............................            1,254            1,182            2,456            2,379
                                                                           ------           ------           ------           ------

Other income
     Service charges on deposit accounts .......................              195              129              375              237
     Credit life insurance commissions .........................               12               20               18               32
     Other income ..............................................               45               60               93              111
                                                                           ------           ------           ------           ------
         Total other income ....................................              252              209              486              380
                                                                           ------           ------           ------           ------

Other expenses
     Salaries and employee benefits ............................              404              352              842              706
     Net occupancy expense .....................................               45               44               99               87
     Furniture and equipment expense ...........................               61               65              135              127
     Other expense .............................................              241              233              491              459
                                                                           ------           ------           ------           ------
         Total other expenses ..................................              751              694            1,567            1,379
                                                                           ------           ------           ------           ------

Income before income taxes .....................................              755              697            1,375            1,380
Income tax expense .............................................              259              259              473              499
                                                                           ------           ------           ------           ------
Net income .....................................................           $  496           $  438           $  902           $  881
                                                                           ======           ======           ======           ======

Per share*
     Net income ................................................           $ 0.25           $ 0.22           $ 0.45           $ 0.43
     Net income, assuming dilution .............................             0.23             0.20             0.42             0.40
</Table>

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



See accompanying notes to unaudited consolidated financial statements.





                                       4
<Page>

COMMUNITY FIRST BANCORPORATION
Consolidated Statement of Changes in Shareholders' Equity

<Table>
<Caption>
                                                                   (Unaudited)
                                                                  Common Stock                            Accumulated
                                                                  ------------                               Other
                                                            Number of                      Retained      Comprehensive
                                                             Shares         Amount         Earnings          Income           Total
                                                             ------         ------         --------          ------           -----
                                                                                     (Dollars in thousands)

<S>                                                        <C>            <C>             <C>            <C>             <C>
Balance, January 1, 2000 ............................      2,002,699      $   14,255      $    1,110     $   (1,629)     $   13,736
                                                                                                                         ----------

Comprehensive income:
    Net income ......................................              -               -             881              -             881
    Change in unrealized holding gains
       and losses on available-for-sale
       securities, net of income taxes ..............              -               -               -             12              12
                                                                                                                         ----------
    Total comprehensive income ......................              -               -               -              -             893
                                                                                                                         ----------
Repurchase and cancellation of common stock .........       (110,000)         (1,900)              -              -          (1,900)
Exercise of employee stock options ..................         16,920              62               -              -              62
                                                          ----------      ----------      ----------     ----------      ----------
Balance, June 30, 2000 ..............................      1,909,619      $   12,417      $    1,991     $   (1,617)     $   12,791
                                                          ==========      ==========      ==========     ==========      ==========



Balance, January 1, 2001 ............................      2,022,623      $   14,383      $      878     $     (367)     $   14,894
                                                                                                                         ----------

Comprehensive income:
    Net income ......................................              -               -             902              -             902
    Change in unrealized holding gains
       and losses on available-for-sale
       securities, net of income taxes ..............              -               -               -            506             506
                                                                                                                         ----------
    Total comprehensive income ......................              -               -               -              -           1,408
                                                                                                                         ----------
Repurchase and cancellation of common stock .........        (10,000)           (190)              -              -            (190)
Exercise of employee stock options ..................         11,744              41               -              -              41
                                                          ----------      ----------      ----------     ----------      ----------
Balance, June 30, 2001 ..............................      2,024,367      $   14,234      $    1,780     $      139      $   16,153
                                                          ==========      ==========      ==========     ==========      ==========
</Table>






























See accompanying notes to unaudited consolidated financial statements.



                                       5
<Page>

COMMUNITY FIRST BANCORPORATION
Consolidated Statement of Cash Flows

<Table>
<Caption>
                                                                                                              (Unaudited)
                                                                                                            Six Months Ended
                                                                                                                June 30,
                                                                                                         2001                 2000
                                                                                                         ----                 ----
                                                                                                          (Dollars in thousands)
Operating activities
<S>                                                                                                    <C>                 <C>
     Net income ............................................................................           $    902            $    881
     Adjustments to reconcile net income to net
         cash provided by operating activities
            Provision for loan losses ......................................................                175                 182
            Depreciation ...................................................................                125                 109
            Amortization of net loan fees and costs ........................................                  7                  43
            Securities accretion and premium amortization ..................................                (31)                 (3)
            Increase in interest receivable ................................................                (60)                (80)
            Increase (decrease) in interest payable ........................................                 36                 (15)
            Decrease (increase) in prepaid expenses and other assets .......................                  3                 (24)
            Increase (decrease) in other accrued expenses ..................................                 16                 (23)
            Loss on sale of other real estate ..............................................                  8                   -
                                                                                                       --------            --------
                Net cash provided by operating activities ..................................              1,181               1,070
                                                                                                       --------            --------

Investing activities
     Purchases of available-for-sale securities ............................................            (33,133)             (1,974)
     Maturities and calls of available-for-sale securities .................................             32,926                 513
     Purchases of other investments ........................................................                (94)                 (4)
     Net increase in loans made to customers ...............................................             (6,624)            (10,618)
     Purchases of premises and equipment ...................................................                (27)               (158)
     Purchases of real estate held for sale ................................................                  -                  (2)
     Proceeds from sale of other real estate ...............................................                 88                   -
                                                                                                       --------            --------
                Net cash used by investing activities ......................................             (6,864)            (12,243)
                                                                                                       --------            --------

Financing activities
     Net increase in demand deposits, interest
         bearing transaction accounts and savings accounts .................................             12,098               9,421
     Net increase (decrease) in certificates of deposit and other
         time deposits .....................................................................             16,487              (3,854)
     Exercise of employee stock options ....................................................                 41                  62
     Repurchase and cancellation of common stock ...........................................               (190)             (1,900)
                                                                                                       --------            --------
                Net cash provided by financing activities ..................................             28,436               3,729
                                                                                                       --------            --------
Increase (decrease) in cash and cash equivalents ...........................................             22,753              (7,444)
Cash and cash equivalents, beginning .......................................................             19,623              16,965
                                                                                                       --------            --------
Cash and cash equivalents, ending ..........................................................           $ 42,376            $  9,521
                                                                                                       ========            ========
</Table>









See accompanying notes to unaudited consolidated financial statements.



                                       6
<Page>

COMMUNITY FIRST BANCORPORATION
Notes to Unaudited Consolidated Financial Statements

Accounting  Policies - A summary of significant  accounting policies is included
in the  Company's  Annual  Report for the year ended  December  31, 2000 on Form
10-KSB filed with the Securities and Exchange Commission.

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

Comprehensive  Income - The components of other comprehensive income or loss and
related tax effects are as follows:

<Table>
<Caption>
                                                                                                  (Unaudited)
                                                                                              Period Ended June 30,
                                                                                              ---------------------
                                                                                    Three Months                   Six Months
                                                                                    ------------                   ----------
                                                                               2001            2000             2001           2000
                                                                               ----            ----             ----           ----
                                                                                               (Dollars in thousands)

<S>                                                                           <C>             <C>             <C>             <C>
Net income .........................................................          $  496          $  438          $  902          $  881
                                                                              ------          ------          ------          ------
Other comprehensive income:
     Change in unrealized holding gains and
         losses on available-for-sale securities ...................              80              64             790              18
     Income tax expense on other
         comprehensive income ......................................              29              23             284               6
                                                                              ------          ------          ------          ------
            Total other comprehensive income .......................              51              41             506              12
                                                                              ------          ------          ------          ------
Comprehensive income ...............................................          $  547          $  479          $1,408          $  893
                                                                              ======          ======          ======          ======
</Table>


Statement  of Cash  Flows -  Interest  paid on  deposits  and  other  borrowings
amounted  to  $4,565,000  for  the six  months  ended  June  30,  2001,  and was
$3,295,000  for the six months  ended June 30,  2000.  Income  tax  payments  of
$435,000 were made during the first six months of 2001,  and income tax payments
of $521,000 were made in the 2000 period. Non-cash investment security valuation
adjustments increased available-for-sale  securities by $790,000 during the 2001
six-month period, a related  shareholders' equity account increased by $506,000,
and  the  associated  deferred  income  taxes  changed  by  $284,000.   Non-cash
investment   security   valuation   adjustments   increased   available-for-sale
securities by $18,000 during the 2000 six-month period, a related  shareholders'
equity  account  increased by $12,000 and the associated  deferred  income taxes
changed by $6,000.  A non-cash  transfer of $46,000 was made from loans to other
real estate owned during the first six months of 2000.

Nonperforming  Loans - As of June 30, 2001,  there were  $505,000 in  nonaccrual
loans and no loans 90 days or more past due and still accruing.

Transactions  with  Related  Parties - During the first six months of 2001,  the
Company  repurchased  and cancelled a total of 10,000 shares of its common stock
from two individuals  who serve as directors of the Company.  One of the parties
is also a principal  shareholder.  The  purchase  price was $19.00 per share for
each of these transactions, totaling $190,000.


                                       7
<Page>

Earnings Per Share - Basic earnings per common share is computed by dividing net
income  applicable  to common  shares by the weighted  average  number of common
shares  outstanding.   Diluted  earnings  per  share  is  computed  by  dividing
applicable  net  income  by  the  weighted   average  number  of  common  shares
outstanding and any dilutive potential common shares and dilutive stock options.
It is assumed that all dilutive  stock options are exercised at the beginning of
each period and that the proceeds are used to purchase  shares of the  Company's
common  stock at the  average  market  price  during the  period.  All per share
information  has  been  retroactively  adjusted  to give  effect  to a 5%  stock
dividend  effective  December 15, 2000.  Net income per share and net income per
share, assuming dilution, were computed as follows:

<Table>
<Caption>
                                                                                               (Unaudited)
                                                                                          Period Ended June 30,
                                                                                          ---------------------
                                                                             Three Months                        Six Months
                                                                             ------------                        ----------
                                                                       2001               2000             2001              2000
                                                                       ----               ----             ----              ----
                                                                            (Dollars in thousands, except per share amounts)

Net income per share, basic
<S>                                                                 <C>               <C>               <C>               <C>
  Numerator - net income ..................................        $      496        $      438        $      902        $      881
                                                                    ==========        ==========        ==========        ==========
  Denominator
    Weighted average common shares
      issued and outstanding ...............................         2,024,367         2,025,105         2,025,774         2,064,309
                                                                    ==========        ==========        ==========        ==========

               Net income per share, basic .................        $      .25        $      .22        $      .45        $      .43
                                                                    ==========        ==========        ==========        ==========

Net income per share, assuming dilution
  Numerator - net income ...................................        $      496        $      438        $      902        $      881
                                                                    ==========        ==========        ==========        ==========
  Denominator
    Weighted average common shares
      issued and outstanding ...............................         2,024,367         2,025,105         2,025,774         2,064,309
Effect of dilutive stock options ...........................           124,364           126,700           120,364           116,250
                                                                    ----------        ----------        ----------        ----------
               Total shares ................................         2,148,731         2,151,805         2,146,138         2,180,559
                                                                    ==========        ==========        ==========        ==========

               Net income per share,
                  assuming dilution ........................        $      .23        $      .20        $      .42        $      .40
                                                                    ==========        ==========        ==========        ==========
</Table>

                                       8
<PAGE>

Item 2. - Management's Discussion and Analysis

         This discussion is intended to assist in understanding the consolidated
financial condition and results of operations of Community First  Bancorporation
and its wholly-owned subsidiary, Community First Bank. The information should be
reviewed in  conjunction  with the  consolidated  financial  statements  and the
related notes contained elsewhere in this report.

Forward Looking Statements

         Statements  included in Management's  Discussion and Analysis which are
not  historical  in nature are  intended  to be, and are  hereby  identified  as
"forward looking statements" for purposes of the safe harbor provided by Section
21E of the  Securities  Exchange Act of 1934, as amended.  The Company  cautions
readers that forward looking  statements,  including without  limitation,  those
relating to the Company's new offices, its future business prospects,  revenues,
working  capital,  liquidity,  capital needs,  interest costs,  and income,  are
subject to certain risks and  uncertainties  that could cause actual  results to
differ materially from those indicated in the forward looking statements, due to
several important factors herein  identified,  among others, and other risks and
factors  identified  from time to time in the  Company's  reports filed with the
Securities and Exchange Commission.

Results of Operations

         Community First  Bancorporation (the "Company")  recorded  consolidated
net income of $496,000, or $.25 per share, for the second quarter, and $902,000,
or $.45 per share,  for the first six months of 2001.  During 2000,  the Company
recorded  net income of $438,000 or $.22 per share for the second  quarter,  and
$881,000,  or $.43 per share,  for the first six  months.  Net income per share,
assuming  dilution,  for the three and six month periods ended June 30, 2001 was
$.23 and $.42,  respectively.  For the comparable  2000 periods,  net income per
share, assuming dilution, was $.20 and $.40, respectively.  Net income per share
figures for 2000 have been retroactively adjusted to reflect a 5% stock dividend
effective December 15, 2000.

Net Interest Income

         Net interest income is the amount of interest income earned on interest
earning assets (loans,  securities,  interest  bearing  deposits in other banks,
federal funds sold and other investments), less the interest expense incurred on
interest bearing  liabilities  (interest bearing deposits and other borrowings),
and is the principal  source of the Company's  earnings.  Net interest income is
affected by the level of  interest  rates,  volume and mix of  interest  earning
assets  and  interest  bearing  liabilities  and the  relative  funding of these
assets.

         For analysis purposes,  interest income from tax-exempt  investments is
adjusted  to an amount  that would have to be earned on taxable  investments  to
produce the same after-tax yields,  assuming a 34% Federal income tax rate. This
adjusted  amount is referred to as fully  taxable  equivalent  ("FTE")  interest
income.  The Company had $34,000 ($51,000 FTE) in income from tax-exempt sources
during  the first six  months of 2001 and  $5,000  ($8,000  FTE) in such  income
during the first six months of 2000.

         For the second quarter of 2001, FTE net interest income was $1,357,000,
an increase of $67,000 or 5.2% over the  comparable  2000 period.  For the first
six months of 2001,  FTE net  interest  income was  $2,649,000,  an  increase of
$85,000  or 3.3% over the first six  months of 2000.  The  increases  in FTE net
interest income for the 2001 periods  resulted  primarily from higher amounts of
interest  earning  assets,  especially  loans and federal funds sold,  partially
offset by increased  interest costs  associated  with larger amounts of interest
bearing liabilities and higher rates paid.

         Average  interest  earning assets during the 2001 six-month period were
$197,566,000,  an increase of $39,830,000 or 25.3% over the comparable period of
2000. Average loans for the 2001 six-month period were $101,522,000, an increase
of $20,440,000 or 25.2% over the average amount for the same period of 2000. The
average yield on interest  earning  assets  decreased by 5 basis points to 7.40%
for the 2001  period.  Average  interest  bearing  liabilities  during  the 2001
six-month period were  $166,491,000,  representing an increase of $34,681,000 or
26.3% over the amount for the same period of 2000.  Average time deposits issued
in  denominations  less than  $100,000  increased  to  $67,306,000  for the 2001
six-month  period from  $45,132,000  in the same 2000  period,  representing  an
increase of 49.1%. The interest rate associated with such deposits  increased by
82 basis points to 6.77% for the 2001 six month period. Average time deposits of
$100,000 or more increased to $46,142,000  for the 2001 period from  $38,028,000
in the 2000 period.  The interest rate associated with these deposits  increased
by 40 basis points to 6.27% for the 2001 six month period.



                                       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
six months of 2001 was 1.82%,  a decrease of 63 basis  points from 2.45% for the
same period of 2000. Net yield on earning assets (net interest income divided by
average  interest  earning assets) was 2.70% for the first six months of 2001, a
decrease of 57 basis points from 3.27% for the first six months of 2000.

         Increases in interest earning assets and interest  bearing  liabilities
resulted  primarily  from  the  Company's  continuing  marketing  strategies  to
increase  its market  share in its local  service  areas in Anderson  and Oconee
Counties  of  South  Carolina.  De novo  branch  offices  opened  in the City of
Anderson in January 1999 and in Williamston, South Carolina in the third quarter
of 2000. In conjunction with the opening of the Williamston  branch office,  the
banking subsidiary offered special  promotional rates on certificates of deposit
products,   primarily  in  the  Anderson  County  market.  Total  time  deposits
attributed  to the  Anderson  County  market  area  increased  by  approximately
$29,400,000  in the one-year  period  ended June 30, 2001.  The Company does not
expect  significant  withdrawal  of such  deposits  upon  maturity  of the  time
deposits.

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

Provision and Allowance for Loan Losses

         The  provision  for loan losses  charged to expense was $95,000 for the
second  quarter of 2001 compared  with $105,000 for the second  quarter of 2000,
and totaled $175,000 for the first six months of 2001 compared with $182,000 for
the  comparable  period of 2000. At June 30, 2001, the allowance for loan losses
was .97% of loans, compared with 1.02% of loans at December 31, 2000. During the
2001 six-month period, net charge-offs totaled $169,000,  compared with $125,000
charged  off during the same  period of 2000.  As of June 30,  2001,  there were
$505,000  in  nonaccrual  loans  and no loans  over 90 days  past due and  still
accruing  interest.  The amount of nonaccrual loans at June 30, 2001 is $207,000
greater  than the amount at June 30, 2000 and  $164,000  more than the amount of
nonaccrual  loans as of December 31, 2000. The majority of the nonaccrual  loans
are secured by real estate and vehicles.  When the estimated realizable value of
collateral associated with nonperforming loans is believed to be insufficient to
satisfy the debt,  management  generally  charges  off the excess  amount of the
debt.

         Management  believes  that the allowance for loan losses is adequate to
absorb all estimated  future risk of loss  inherent in the loan  portfolio as of
June 30, 2001.

Noninterest Income

         Noninterest  income  totaled  $252,000 for the second  quarter of 2001,
compared with $209,000 for the 2000 quarter. Noninterest income was $486,000 for
the first six months of 2001 and $380,000  for the same 2000 period.  The higher
noninterest income in 2001 was attributable  primarily to increased fees derived
from service charges and other fees associated with deposit accounts,  including
fees for ATM usage.  There were no  realized  securities  gains or losses in the
2001 or 2000 periods.

Noninterest Expenses

         Noninterest  expenses  totaled $751,000 for the second quarter of 2001,
compared with $694,000 for the 2000 period,  representing an increase of $57,000
or 8.2%.  Noninterest  expenses were $1,567,000 for the first six months of 2001
compared  with  $1,379,000  for the first half of 2000.  Salaries  and  employee
benefits for the 2001 quarter totaled $404,000,  an increase of $52,000 from the
2000 three month period. For the first six months of 2001, salaries and employee
benefits totaled $842,000 representing an increase of $136,000 or 19.3% over the
same period of 2000.  This increase  resulted from higher  numbers of employees,
particularly  for the new  Williamston  branch office,  and normal  increases in
salaries and wages granted from time to time.



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<Page>

         Occupancy and furniture and equipment  expenses for the second  quarter
of 2001 totaled $106,000,  a decrease of $3,000, or 2.8% from the same period of
2000.  Such  expenses  increased  $20,000 or 9.3% during the first half of 2001.
These  increases  resulted  primarily  from higher  depreciation,  utilities and
equipment  maintenance  associated  with  the  operation  of the  branch  office
facility in Williamston  since the third quarter of 2000. Other expenses for the
2001 three-month  period totaled $241,000 and were $8,000 more than in 2000. For
the 2001 six-month period,  other expenses  increased by $32,000,  or 7.0%, over
the 2000 amount to $491,000.  These expenses increased primarily due to expenses
associated  with the  operation of the  Williamston  branch such as expenses for
telephone, data communication and operating supplies.

         Management anticipates that expenses associated with the de novo branch
office in Williamston will continue to result in comparatively higher amounts of
noninterest  expenses and cause earnings to be somewhat less than they otherwise
would be during the remainder of 2001.

Liquidity

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

         As of June 30,  2001,  the ratio of loans to total  deposits was 53.9%,
compared  with 59.4% as of December 31, 2000 and 60.0% as of June 30, 2000.  The
decrease in the  loan-to-deposit  ratio for 2001 is generally  the result of the
volume of deposits growing faster than loans in the Anderson County market area.

          Deposits as of June 30, 2001  increased by  $28,585,000  or 17.4% over
the amount at December 31, 2000 and were $48,783,000 or 33.8% greater than their
level of June 30,  2000.  The new  operations  in  Anderson  County  contributed
significantly to the increase in deposits.

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

Capital Resources

         The  Company's  shareholders'  equity  increased  by  $1,259,000  since
December  31,  2000 as the  result of net income of  $902,000  for the first six
months of 2001, $41,000 added from the exercise of employee stock options,  plus
$506,000   from   changes   in   unrealized   holding   gains   and   losses  on
available-for-sale  securities,  net of  deferred  tax  effects,  less  $190,000
expended to repurchase  and cancel  10,000  shares of the Company's  outstanding
common stock.

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

         The June 30,  2001 risk based  capital  ratios for the  Company and the
Bank are presented in the following table,  compared with the "well capitalized"
and minimum ratios under the regulatory definitions and guidelines:

                                                             Total
                                                Tier 1      Capital     Leverage
                                                ------      -------     --------
Community First Bancorporation ..............    13.8%       14.6%       7.7%
Community First Bank ........................    13.0%       13.8%       7.3%
Minimum "well-capitalized" requirement ......     6.0%       10.0%       5.0%
Minimum requirement .........................     4.0%        8.0%       3.0%



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<Page>



                           PART II - OTHER INFORMATION

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

         On  Tuesday,  April 24,  2001,  the  shareholders  of  Community  First
Bancorporation held their regular annual meeting. At the meeting, one matter was
submitted to a vote with results as follows:

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

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

         Robert H. Edwards          1,254,708           0                 452
         Blake L. Griffith          1,254,708           0                 452
         Gary V. Thrift             1,254,708           0                 452


         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 2001 annual meeting:  R. Theo Harris, Sr. - 2002, James E. McCoy
- 2002,  James E. Turner - 2002,  and  Charles L.  Winchester  - 2002,  Larry S.
Bowman,  M.D.  - 2003,  William  M. Brown - 2003,  John R,  Hamrick - 2003,  and
Frederick D. Shepherd, Jr. - 2003.

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

(a)      Exhibits.                          None.


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




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SIGNATURE

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


                                COMMUNITY FIRST BANCORPORATION

August 10, 2001                 /s/ Frederick D. Shepherd, Jr.
-----------------               ------------------------------------------------
    Date                        Frederick D. Shepherd, Jr., President and Chief
                                Executive Officer (also principal accounting
                                  officer)



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                                  Exhibit Index


Exhibits                   None.





























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