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, 2002           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,___,___ Shares Outstanding on July 31, 2002.

Transitional Small Business 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

PART II -   OTHER INFORMATION

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

Item 6.     Exhibits and Reports on Form 8-K ..............................   13

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




                                       2
<Page>

                         PART I - FINANCIAL INFORMATION

Item 1. - Financial Statements

COMMUNITY FIRST BANCORPORATION
Consolidated Balance Sheet
<Table>
<Caption>
                                                                                                    (Unaudited)
                                                                                                      June 30,          December 31,
                                                                                                         2002              2001
                                                                                                         ----              ----
                                                                                                          (Dollars in thousands)
Assets
<S>                                                                                                  <C>                  <C>
     Cash and due from banks .............................................................           $   4,360            $   6,063
     Interest bearing deposits due from banks ............................................                  18                   27
     Federal funds sold ..................................................................              18,039                9,240
     Securities available-for-sale .......................................................              56,501               71,339
     Other investments ...................................................................                 555                  480
     Loans ...............................................................................             131,647              119,744
         Allowance for loan losses .......................................................              (1,648)              (1,200)
                                                                                                     ---------            ---------
            Loans - net ..................................................................             129,999              118,544
     Premises and equipment - net ........................................................               3,295                3,232
     Accrued interest receivable .........................................................               1,345                1,467
     Other assets ........................................................................               1,570                1,506
                                                                                                     ---------            ---------

            Total assets .................................................................           $ 215,682            $ 211,898
                                                                                                     =========            =========

Liabilities
     Deposits
         Noninterest bearing .............................................................           $  26,114            $  25,449
         Interest bearing ................................................................             169,986              168,071
                                                                                                     ---------            ---------
            Total deposits ...............................................................             196,100              193,520
     Accrued interest payable ............................................................                 962                1,307
     Other liabilities ...................................................................                  41                   55
                                                                                                     ---------            ---------
            Total liabilities ............................................................             197,103              194,882
                                                                                                     ---------            ---------

Shareholders' equity
     Common stock - no par  value;  10,000,000 shares authorized;
         issued and outstanding - 2,122,021 for 2002 and
         2,117,085 for 2001 ..............................................................              15,753               15,734
     Retained earnings ...................................................................               2,447                1,120
     Accumulated other comprehensive income ..............................................                 379                  162
                                                                                                     ---------            ---------
            Total shareholders' equity ...................................................              18,579               17,016
                                                                                                     ---------            ---------

            Total liabilities and shareholders' equity ...................................           $ 215,682            $ 211,898
                                                                                                     =========            =========
</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
                                                                                   ------------                   ----------
                                                                               2002           2001           2002             2001
                                                                               ----           ----           ----             ----
                                                                                   (Dollars in thousands, except per share)

Interest income
<S>                                                                         <C>             <C>             <C>              <C>
     Loans, including fees ........................................         $ 2,348         $ 2,252         $ 4,597          $ 4,471
     Securities
       Taxable ....................................................             693             921           1,418            1,876
       Tax-exempt .................................................               3               3               5                5
     Other investments ............................................               7               7               7               15
     Federal funds sold ...........................................              99             391             239              865
                                                                            -------         -------         -------          -------
         Total interest income ....................................           3,150           3,574           6,266            7,232
                                                                            -------         -------         -------          -------

Interest expense
     Time deposits $100M and over .................................             376             712             748            1,435
     Other deposits ...............................................             758           1,513           1,626            3,166
                                                                            -------         -------         -------          -------
         Total interest expense ...................................           1,134           2,225           2,374            4,601
                                                                            -------         -------         -------          -------

Net interest income ...............................................           2,016           1,349           3,892            2,631
Provision for loan losses .........................................             350              95             660              175
                                                                            -------         -------         -------          -------
Net interest income after provision ...............................           1,666           1,254           3,232            2,456
                                                                            -------         -------         -------          -------

Other income
     Service charges on deposit accounts ..........................             197             195             400              375
     Credit life insurance commissions ............................              13              12              23               18
     Loss on sale of available-for-sale security ..................               -               -              (2)               -
     Other income .................................................              55              45             100               93
                                                                            -------         -------         -------          -------
         Total other income .......................................             265             252             521              486
                                                                            -------         -------         -------          -------

Other expenses
     Salaries and employee benefits ...............................             466             404             932              842
     Net occupancy expense ........................................              44              45              96               99
     Furniture and equipment expense ..............................              62              61             132              135
     Other expense ................................................             273             241             530              491
                                                                            -------         -------         -------          -------
         Total other expenses .....................................             845             751           1,690            1,567
                                                                            -------         -------         -------          -------

Income before income taxes ........................................           1,086             755           2,063            1,375
Income tax expense ................................................             398             259             736              473
                                                                            -------         -------         -------          -------
Net income ........................................................         $   688         $   496         $ 1,327          $   902
                                                                            =======         =======         =======          =======

Per share*
     Net income ...................................................         $  0.32         $  0.23         $  0.62          $  0.42
     Net income, assuming dilution ................................            0.31            0.22            0.60             0.40
</Table>

------------------
* Per share  information has been  retroactively  adjusted to reflect a 5% stock
dividend effective December 21, 2001.



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
                                                                  --------------                          Comprehensive
                                                              Number of                      Retained          Other
                                                               Shares         Amount         Earnings         Income        Total
                                                               ------         ------         --------         ------        -----
                                                                                     (Dollars in thousands)

<S>                                                            <C>           <C>            <C>           <C>            <C>
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 arising
      during the period, net of income taxes of $284 .....             -              -              -           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
                                                              ==========     ==========     ==========    ==========     ==========



Balance, January 1, 2002 .................................     2,117,085     $   15,734     $    1,120    $      162     $   17,016
                                                                                                                         ----------

Comprehensive income:
    Net income ...........................................             -              -          1,327             -          1,327
                                                                                                                         ----------
    Change in unrealized holding gains and losses
      on available-for-sale securities arising
      during the period, net of income taxes of $121 .....             -              -              -           216            216
    Reclassification adjustment for losses (gains)
      realized in income, net of income taxes of $1 ......             -              -              -             1              1
                                                                                                                         ----------
        Total other comprehensive income .................             -              -              -             -            217
                                                                                                                         ----------
          Total comprehensive income .....................             -              -              -             -          1,544
                                                                                                                         ----------
Exercise of employee stock options .......................         4,936             19              -             -             19
                                                              ----------     ----------     ----------    ----------     ----------
Balance, June 30, 2002 ...................................     2,122,021     $   15,753     $    2,447    $      379     $   18,579
                                                              ==========     ==========     ==========    ==========     ==========
</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,
                                                                                                          2002               2001
                                                                                                          ----               ----
                                                                                                           (Dollars in thousands)
Operating activities
<S>                                                                                                    <C>                 <C>
     Net income ............................................................................           $  1,327            $    902
     Adjustments to reconcile net income to net
         cash provided by operating activities
            Provision for loan losses ......................................................                660                 175
            Depreciation ...................................................................                122                 125
            Amortization of net loan fees and costs ........................................                  6                   7
            Securities accretion and premium amortization ..................................                 14                 (31)
            Loss on sale of available-for-sale security ....................................                  2                   -
            Decrease (increase) in interest receivable .....................................                122                 (60)
            (Decrease) increase in interest payable ........................................               (345)                 36
            (Increase) decrease in prepaid expenses and other assets .......................               (158)                  3
            (Decrease) increase in other accrued expenses ..................................                (16)                 16
            Loss on sale of other real estate ..............................................                  -                   8
                                                                                                       --------            --------
                Net cash provided by operating activities ..................................              1,734               1,181
                                                                                                       --------            --------

Investing activities
     Purchases of available-for-sale securities ............................................            (17,962)            (33,133)
     Maturities and calls of available-for-sale securities .................................             30,124              32,926
     Proceeds of sale of available-for-sale security .......................................              2,998                   -
     Purchases of other investments ........................................................                (75)                (94)
     Net increase in loans made to customers ...............................................            (12,146)             (6,624)
     Purchases of premises and equipment ...................................................               (185)                (27)
     Proceeds from sale of other real estate ...............................................                  -                  88
                                                                                                       --------            --------
                Net cash used by investing activities ......................................              2,754              (6,864)
                                                                                                       --------            --------

Financing activities
     Net increase in demand deposits, interest
         bearing transaction accounts and savings accounts .................................              2,334              12,098
     Net increase in certificates of deposit and other
         time deposits .....................................................................                246              16,487
     Exercise of employee stock options ....................................................                 19                  41
     Repurchase and cancellation of common stock ...........................................                  -                (190)
                                                                                                       --------            --------
                Net cash provided by financing activities ..................................              2,599              28,436
                                                                                                       --------            --------
Increase in cash and cash equivalents ......................................................              7,087              22,753
Cash and cash equivalents, beginning .......................................................             15,330              19,623
                                                                                                       --------            --------
Cash and cash equivalents, ending ..........................................................           $ 22,417            $ 42,376
                                                                                                       ========            ========
</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, 2001 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
                                                                                     ------------                  ----------
                                                                                  2002          2001          2002            2001
                                                                                  ----          ----          ----            ----
                                                                                               (Dollars in thousands)

<S>                                                                            <C>            <C>            <C>            <C>
Net income .............................................................       $   688        $   496        $ 1,327        $   902
                                                                               -------        -------        -------        -------
Other comprehensive income:
     Unrealized holding gains and
         (losses) on available-for-sale securities
         arising during the period .....................................           652             80            337            790
     Income tax (expense) benefit on unrealized
         holding gains and losses arising
         during the period .............................................          (234)           (29)          (121)          (284)
     Reclassification adjustment for (gains) or losses
         realized in income during the period ..........................             -              -              2              -
     Income tax expense or (benefit) on gains
         or losses realized in income during the period ................             -              -             (1)             -
                                                                               -------        -------        -------        -------
Total other comprehensive income .......................................           418             51            217            506
                                                                               -------        -------        -------        -------
Comprehensive income ...................................................       $ 1,106        $   547        $ 1,544        $ 1,408
                                                                               =======        =======        =======        =======
</Table>


Statement  of Cash Flows - Interest  paid on deposits and other  borrowings  was
$2,719,000  for the six months ended June 30, 2002,  and  $4,565,000 for the six
months ended June 30, 2001. Income tax payments of $863,000 were made during the
first six months of 2002,  and income tax payments of $435,000  were made in the
2001  period.  Non-cash  investment  security  valuation  adjustments  increased
available-for-sale  securities by $337,000 during the 2002 six-month  period,  a
related  shareholders' equity account increased by $217,000,  and the associated
deferred  income  taxes  changed  by  $121,000.   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.  A
non-cash  transfer  of $25,000  was made from loans to other real  estate  owned
during the first six months of 2002.

Nonperforming  Loans - As of June 30, 2002,  there were  $200,000 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  for $190,000 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.

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 21, 2001.  Net income per share and net income per
share, assuming dilution, were computed as follows:






                                       7
<Page>

<Table>
<Caption>
                                                                                            (Unaudited)
                                                                                        Period Ended June 30,
                                                                                        ---------------------
                                                                            Three Months                         Six Months
                                                                            ------------                         ----------
                                                                       2002             2001               2002               2001
                                                                       ----             ----               ----               ----
                                                                              (Dollars in thousands, except per share amounts)

<S>                                                                 <C>               <C>               <C>               <C>
Net income per share, basic
  Numerator - net income ...................................        $      688        $      496        $    1,327        $      902
                                                                    ==========        ==========        ==========        ==========
  Denominator
    Weighted average common shares
      issued and outstanding ...............................         2,120,442         2,125,585         2,118,791         2,127,063
                                                                    ==========        ==========        ==========        ==========

               Net income per share, basic .................        $      .32        $      .23        $      .62        $      .42
                                                                    ==========        ==========        ==========        ==========

Net income per share, assuming dilution
  Numerator - net income ...................................        $      688        $      496        $    1,327        $      902
                                                                    ==========        ==========        ==========        ==========
  Denominator
    Weighted average common shares
      issued and outstanding ...............................         2,120,442         2,125,585         2,118,791         2,127,063
  Effect of dilutive stock options .........................           106,292           130,582           108,837           126,382
                                                                    ----------        ----------        ----------        ----------
               Total shares ................................         2,226,734         2,256,167         2,227,628         2,253,445
                                                                    ==========        ==========        ==========        ==========

               Net income per share,
                 assuming dilution .........................        $      .31        $      .22        $      .60        $      .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 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  $688,000,  or $.32  per  share,  for the  second  quarter,  and
$1,327,000,  or $.62 per share,  for the first six months of 2002.  During 2001,
the  Company  recorded  net income of  $496,000 or $.23 per share for the second
quarter,  and $902,000,  or $.42 per share, for the first six months. Net income
per share, assuming dilution, for the three and six month periods ended June 30,
2002 was $.31 and $.60,  respectively.  For the  comparable  2001  periods,  net
income per share, assuming dilution, was $.22 and $.40, respectively. Net income
per share  figures  for 2001 have been  retroactively  adjusted  to reflect a 5%
stock dividend effective December 21, 2001.

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 $30,000 ($46,000 FTE) in income from tax-exempt sources
during the first six months of 2002 and  $34,000  ($51,000  FTE) in such  income
during the first six months of 2001.

         For the second quarter of 2002, FTE net interest income was $2,022,000,
an increase of $665,000 or 49.0% over the comparable 2001 period.  For the first
six months of 2002,  FTE net  interest  income was  $3,908,000,  an  increase of
$1,259,000 or 47.5% over the first six months of 2001.  The increases in FTE net
interest  income for the 2002 six month period  resulted  primarily  from higher
amounts of interest  earning  assets,  especially  in the  higher-yielding  loan
category, and significantly lower rates paid for interest-bearing deposits.

         Average  interest  earning assets during the 2002 six-month period were
$214,388,000,  an increase of $16,822,000 or 8.5% over the comparable  period of
2001. Average loans for the 2002 six-month period were $124,359,000, an increase
of $22,837,000 or 22.5% over the average amount for the same period of 2001. The
average yield on interest  earning assets decreased by 149 basis points to 5.91%
for the 2002  period.  Average  interest  bearing  liabilities  during  the 2002
six-month period were  $179,949,000,  representing an increase of $13,458,000 or
8.1% over the amount for the same period of 2001.  Average time deposits  issued
in  denominations  less than  $100,000  decreased  to  $66,432,000  for the 2002
six-month  period  from  $67,306,000  in the same 2001  period,  representing  a
decrease of 1.3%.  The  average  interest  rate  associated  with such  deposits
decreased  by 293 basis points to 3.84% for the 2002 six month  period.  Average
time deposits of $100,000 or more increased to  $52,514,000  for the 2002 period
from  $46,142,000 in the 2001 period.  The average interest rate associated with
these  deposits  decreased  by 340 basis  points to 2.87% for the 2002 six month
period.

         The average  interest rate spread  (average  yield on interest  earning
assets less the average rate paid on interest bearing liabilities) for the first
six months of 2002 was 3.25%, an increase of 143 basis points from 1.82% for the


                                       9
<Page>

same period of 2001. Net yield on earning assets (net interest income divided by
average  interest earning assets) was 3.68% for the first six months of 2002, an
increase of 98 basis points from 2.70% for the first six months of 2001.

         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  market  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.  As a result,  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.  In the
period  since June 30, 2001,  however,  the Company has  realigned  the rates it
offers for time  deposit  liabilities  to more  closely  reflect  market  rates.
Coincidentally, there has been a significant decrease in the Company's growth in
deposits.  Loan demand  continues  to be strong,  in part  because the low rates
currently offered allow consumers and businesses to either refinance their debts
and realize lower payments or borrow larger amounts of money without  increasing
their monthly or other payments.

         Interest  rates are  influenced  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,  during the first six months of 2002,  very little action was taken
by the Committee.  Low, but stable, interest rates prevailed throughout the 2002
six months as the central  bank  continues  to provide  stimulus to the national
economy.  During the first six months of 2001, however,  the Committee's actions
contributed  to a high  degree  of  interest  rate  volatility  as  shorter-term
interest rates were reduced  throughout  that period.  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 $350,000 for the
second quarter of 2002 compared with $95,000 for the second quarter of 2001, and
totaled $660,000 for the first six months of 2002 compared with $175,000 for the
comparable  period of 2001. At June 30, 2002,  the allowance for loan losses was
1.25% of loans,  compared  with 1.00% of loans at December 31, 2001.  During the
2002 six-month period, net charge-offs totaled $212,000,  compared with $169,000
charged  off during the same  period of 2001.  As of June 30,  2002,  there were
$200,000  in  nonaccrual  loans  and no loans  over 90 days  past due and  still
accruing  interest,  collectively  referred to as impaired loans.  The amount of
nonaccrual  loans at June 30, 2002 is $305,000  less than the amount at June 30,
2001 and $410,000  less than the amount of  nonaccrual  loans as of December 31,
2001.  The  majority  of the  nonaccrual  loans are  secured by real  estate and
vehicles.  When the estimated  realizable  value of collateral  associated  with
nonperforming  loans  is  believed  to be  insufficient  to  satisfy  the  debt,
management generally charges off the excess amount of the debt.

         As of June 30, 2002,  the  Company's  potential  problem  loans totaled
$1,637,000, an increase of $757,000, or 86%, over the amount of such loans as of
December 31, 2001.  Potential  problem loans include loans,  other than impaired
loans,  that  management  has  identified  as having  possible  credit  problems
sufficient  to cast doubt upon the abilities of the borrowers to comply with the
current repayment terms. The majority of the potential problem loans are secured
by real  estate  mortgages  or liens  on  equipment,  inventories,  receivables,
automobiles and other forms of collateral.

         During the first six months of 2002,  the  Company's  net  increase  in
loans made to customers was  $12,146,000,  compared with $6,624,000 in net loans
made to customers in the first six months of 2001.  Significant  amounts of loan
originations  have been generated in the relatively newer Anderson County market
and higher levels of inherent risk are perceived, particularly in the commercial
segment of the loan portfolio.

         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, 2002.

Noninterest Income

         Noninterest  income  totaled  $265,000 for the second  quarter of 2002,
compared with $252,000 for the 2001 quarter. Noninterest income was $521,000 for
the first six months of 2002 and $486,000  for the same 2001 period.  The higher
noninterest income in 2002 was attributable  primarily to increased fees derived
from service charges and other fees associated with deposit accounts,  including
fees  for ATM  usage.  The  Company  realized  a  $2,000  loss on the sale of an
available-for-sale security in the 2002 six-month period. There were no realized
securities gains or losses in the 2001 period.



                                       10
<Page>

Noninterest Expenses

         Noninterest  expenses  totaled $845,000 for the second quarter of 2002,
compared with $751,000 for the 2001 period,  representing an increase of $94,000
or 12.5%.  Noninterest expenses were $1,690,000 for the first six months of 2002
compared  with  $1,567,000  for the first half of 2001.  Salaries  and  employee
benefits for the 2002 quarter totaled $466,000,  an increase of $62,000 over the
2001 three month period. For the first six months of 2002, salaries and employee
benefits totaled $932,000  representing an increase of $90,000 or 10.7% over the
same period of 2001. This increase  resulted  primarily from normal increases in
salaries  and wages  granted  from time to time.  The  Company  has also added a
full-time  loan collector and an officer  devoted to  originating  home mortgage
loans.

         Occupancy and furniture and equipment  expenses for the second  quarter
of 2002 totaled  $106,000,  an amount unchanged as compared with the same period
of 2001. Such expenses  decreased  $6,000 or 2.6% during the first half of 2002.
The  number  and  locations  of the  Company's  offices  was  stable  during all
comparable  periods.  Other  expenses for the 2002  three-month  period  totaled
$273,000  and were  $32,000 more than in 2001.  For the 2002  six-month  period,
other expenses increased by $39,000,  or 7.9%, over the 2001 amount to $530,000.
These expenses increased primarily due to the Company's  increasing its internal
communications  capabilities and higher postage and freight  expenses  resulting
from  both  higher  account  volumes  and  increased  postal  rates.  Management
continues to emphasize cost control measures where possible.

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,  2002,  the ratio of loans to total  deposits was 67.1%,
compared  with 61.9% as of December 31, 2001 and 53.9% as of June 30, 2001.  The
increase in the  loan-to-deposit  ratio for 2002  generally is the result of the
Company's  recent  emphasis on generating  quality loans  throughout  its market
areas. In prior periods,  deposit  acquisition  was primarily  emphasized in the
relatively new Anderson County market.

         Deposits as of June 30, 2002  increased by  $2,580,000 or 1.3% over the
amount at December 31, 2001 and were $3,132,000 or 1.6% greater than their level
of June 30, 2001.

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

Capital Resources

         The  Company's  shareholders'  equity  increased  by  $1,563,000  since
December  31, 2001 as the result of net income of  $1,327,000  for the first six
months of 2002, $19,000 added from the exercise of employee stock options,  plus
$217,000 in other  comprehensive  income,  primarily  unrealized  gains  arising
during the period on available-for-sale securities.

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

         The June 30,  2002 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                    13.2%       14.4%        8.3%
Community First Bank                              12.6%       13.8%        8.0%
Minimum "well-capitalized" requirement             6.0%       10.0%        5.0%
Minimum requirement                                4.0%        8.0%        3.0%

Commitments to Extend Credit

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

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

                                                         June 30,
                                                          2002
                                                          ----
Loan commitments ........................             $11,336,000
Standby letters of credit ...............                 319,000


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.




                                       12
<Page>


                           PART II - OTHER INFORMATION

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

         On  Tuesday,  April 23,  2002,  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
                                         ---          -------        ----------

         R. Theo Harris, Sr.         1,255,817            0               0
         James E. McCoy              1,255,404          413               0
         James E. Turner             1,255,817            0               0
         Charles L. Winchester       1,251,626        4,191               0


         The following directors continue to serve until the expiration of their
terms at the  annual  meetings  to be held in the years  indicated  and were not
voted on at the 2002 annual meeting:  Larry S. Bowman,  M.D. - 2003,  William M.
Brown - 2003, John R, Hamrick - 2003, Frederick D. Shepherd,  Jr. - 2003; Robert
H. Edwards - 2004, Blake L. Griffith - 2004, and Gary V. Thrift - 2004.

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

(a)      Exhibits.                          None.


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




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<Page>


SIGNATURE

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


                                    COMMUNITY FIRST BANCORPORATION

August 9, 2002                        /s/ Frederick D. Shepherd, Jr.
-----------------                     ------------------------------------------
         Date                         Frederick D. Shepherd, Jr., President and
                                      Chief Executive  Officer (also principal
                                      accounting officer)



                                       14
<Page>


                                  Exhibit Index


Exhibits                   None.










                                       15