U. S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

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

For Quarterly Period Ended March 31, 2004          Commission File No. 000-29640


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


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


                            3685 BLUE RIDGE BOULEVARD
                         WALHALLA, SOUTH CAROLINA 29691
--------------------------------------------------------------------------------
                    (Address of principal executive offices)


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

         Check whether the issuer (1) filed all reports  required to be filed by
Section 13 or 15(d) of the  Exchange  Act during the past 12 months (or for such
shorter period that the  registrant was required to file such reports),  and (2)
has been subject to such filing requirements for the past 90 days.

         Yes [X]  No [ ]

         State the number of shares  outstanding of each of the issuer's classes
of common equity,  as of the latest  practicable  date:  Common Stock, no par or
stated value, 2,394,097 Shares Outstanding on April 30, 2004.

Transitional Small Business Disclosure 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

Item 2.       Management's Discussion and Analysis .........................   8
Item 3.       Controls and Procedures ......................................  11

PART II -     OTHER INFORMATION

Item 6.       Exhibits and Reports on Form 8-K .............................  11

SIGNATURE ..................................................................  12




                                       2
<PAGE>


                         PART I - FINANCIAL INFORMATION

Item 1. - Financial Statements

COMMUNITY FIRST BANCORPORATION
Consolidated Balance Sheet
<TABLE>
<CAPTION>
                                                                                                      (Unaudited)
                                                                                                        March 31,       December 31,
                                                                                                          2004              2003
                                                                                                          -----             ----
                                                                                                           (Dollars in thousands)
Assets
<S>                                                                                                    <C>                <C>
     Cash and due from banks .................................................................         $   5,691          $   7,560
     Interest bearing deposits due from banks ................................................                14                 29
     Federal funds sold ......................................................................            20,522             31,916
     Securities available-for-sale ...........................................................           107,174             86,023
     Other investments .......................................................................               897                750
     Loans ...................................................................................           151,325            147,650
         Allowance for loan losses ...........................................................            (2,257)            (2,197)
                                                                                                       ---------          ---------
            Loans - net ......................................................................           149,068            145,453
     Premises and equipment - net ............................................................             4,436              4,454
     Accrued interest receivable .............................................................             1,564              1,424
     Other assets ............................................................................             2,264              2,917
                                                                                                       ---------          ---------

            Total assets .....................................................................         $ 291,630          $ 280,526
                                                                                                       =========          =========

Liabilities
     Deposits
         Noninterest bearing .................................................................         $  29,875          $  32,273
         Interest bearing ....................................................................           235,997            224,278
                                                                                                       ---------          ---------
            Total deposits ...................................................................           265,872            256,551
     Accrued interest payable ................................................................             1,481              1,357
     Other liabilities .......................................................................               338                 81
                                                                                                       ---------          ---------
            Total liabilities ................................................................           267,691            257,989
                                                                                                       ---------          ---------

Shareholders' equity
     Common stock - no par value; 10,000,000 shares authorized; issued and
         outstanding - 2,394,097 for 2004 and
         2,362,057 for 2003 ..................................................................            19,741             19,620
     Retained earnings .......................................................................             3,949              3,117
     Accumulated other comprehensive income (loss) ...........................................               249               (200)
                                                                                                       ---------          ---------
            Total shareholders' equity .......................................................            23,939             22,537
                                                                                                       ---------          ---------

            Total liabilities and shareholders' equity .......................................         $ 291,630          $ 280,526
                                                                                                       =========          =========
</TABLE>






See accompanying notes to unaudited consolidated financial statements.


                                       3
<PAGE>

COMMUNITY FIRST BANCORPORATION
Consolidated Statement of Income
<TABLE>
<CAPTION>
                                                                                                                (Unaudited)
                                                                                                             Three Months Ended
                                                                                                                  March 31,
                                                                                                           2004              2003
                                                                                                           -----             ----
                                                                                                           (Dollars in thousands,
                                                                                                              except per share)
Interest income
<S>                                                                                                      <C>                  <C>
     Loans, including fees ...............................................................               $2,495               $2,435
     Securities
       Taxable ...........................................................................                  714                  588
       Tax-exempt ........................................................................                   18                    2
     Other investments ...................................................................                    7                    7
     Federal funds sold ..................................................................                   82                  115
                                                                                                         ------               ------
         Total interest income ...........................................................                3,316                3,147
                                                                                                         ------               ------

Interest expense
     Time deposits $100M and over ........................................................                  374                  411
     Other deposits ......................................................................                  875                  810
                                                                                                         ------               ------
         Total interest expense ..........................................................                1,249                1,221
                                                                                                         ------               ------

Net interest income ......................................................................                2,067                1,926
Provision for loan losses ................................................................                   80                  250
                                                                                                         ------               ------
Net interest income after provision ......................................................                1,987                1,676
                                                                                                         ------               ------

Other income
     Service charges on deposit accounts .................................................                  368                  339
     Credit life insurance commissions ...................................................                    6                   10
     Net gains on sales of available-for-sale securities .................................                    5                    -
     Gain on sale of loans held for sale .................................................                    -                   65
     Other income ........................................................................                   93                   51
                                                                                                         ------               ------
         Total other income ..............................................................                  472                  465
                                                                                                         ------               ------

Other expenses
     Salaries and employee benefits ......................................................                  680                  561
     Net occupancy expense ...............................................................                   71                   49
     Furniture and equipment expense .....................................................                   64                   66
     Other expense .......................................................................                  362                  337
                                                                                                         ------               ------
         Total other expenses ............................................................                1,177                1,013
                                                                                                         ------               ------

Income before income taxes ...............................................................                1,282                1,128
Income tax expense .......................................................................                  450                  401
                                                                                                         ------               ------
Net income ...............................................................................               $  832               $  727
                                                                                                         ======               ======

Per share*
     Net income ..........................................................................               $ 0.35               $ 0.31
     Net income, assuming dilution .......................................................                 0.33                 0.29
</TABLE>
------
* Per share  information has been  retroactively  adjusted to reflect a 5% stock
dividend effective November 28, 2003.

See accompanying notes to unaudited consolidated financial statements.


                                       4
<PAGE>

COMMUNITY FIRST BANCORPORATION
Consolidated Statement of Changes in Shareholders' Equity

<TABLE>
<CAPTION>
                                                                         (Unaudited)

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

<S>                                                              <C>           <C>           <C>           <C>            <C>
Balance, January 1, 2003 ...................................     2,242,417     $  17,569     $   2,137     $     379      $  20,085
                                                                                                                          ---------
Comprehensive income:
    Net income .............................................             -             -           727             -            727
                                                                                                                          ---------
    Unrealized holding gains and losses
       on available-for-sale securities arising
       during the period, net of income
       taxes of $17 ........................................             -             -             -            30             30
                                                                                                                          ---------
         Total other comprehensive income ..................             -                                                       30
                                                                                                                          ---------
            Total comprehensive income .....................                                                                    757
                                                                                                                          ---------
Exercise of employee stock options .........................         6,832            28             -             -             28
                                                                 ---------     ---------     ---------     ---------      ---------
Balance, March 31, 2003 ....................................     2,249,249     $  17,597     $   2,864     $     409      $  20,870
                                                                 =========     =========     =========     =========      =========



Balance, January 1, 2004 ...................................     2,362,057     $  19,620     $   3,117     $    (200)     $  22,537
                                                                                                                          ---------
Comprehensive income:
    Net income .............................................             -             -           832             -            832
                                                                                                                          ---------
    Unrealized holding gains and losses
       on available-for-sale securities arising
       during the period, net of income
       taxes of $253 .......................................             -             -             -           452            452
    Reclassification adjustment for losses (gains)
       realized in income, net of income taxes of $2 .......             -             -             -            (3)            (3)
                                                                                                                          ---------
         Total other comprehensive income ..................             -                                                      449
                                                                                                                          ---------
            Total comprehensive income .....................                                                                  1,281
                                                                                                                          ---------
Exercise of employee stock options .........................        32,040           121             -             -            121
                                                                 ---------     ---------     ---------     ---------      ---------
Balance, March 31, 2004 ....................................     2,394,097     $  19,741     $   3,949     $     249      $  23,939
                                                                 =========     =========     =========     =========      =========
</TABLE>














See accompanying notes to unaudited consolidated financial statements.


                                       5
<PAGE>

COMMUNITY FIRST BANCORPORATION
Consolidated Statement of Cash Flows
<TABLE>
<CAPTION>
                                                                                                                   (Unaudited)
                                                                                                               Three Months Ended
                                                                                                                    March 31,
                                                                                                             2004               2003
                                                                                                             -----              ----
                                                                                                             (Dollars in thousands)
Operating activities
<S>                                                                                                      <C>               <C>
     Net income ................................................................................         $    832          $    727
     Adjustments to reconcile net income to net
         cash provided by operating activities
            Provision for loan losses ..........................................................               80               250
            Depreciation .......................................................................               56                50
            Amortization of net loan fees and costs ............................................              (14)                1
            Securities accretion and premium amortization ......................................              231               194
            Gains on sales of available-for-sale securities ....................................               (5)                -
            Gains on sales of loans held for sale ..............................................                -               (65)
            Increase in interest receivable ....................................................             (140)              (37)
            Increase in interest payable .......................................................              124               217
            Decrease in prepaid expenses .......................................................              190               123
            Increase in other accrued expenses .................................................              257               283
            Originations of loans held for sale ................................................                -            (3,208)
            Proceeds of sales of loans held for sale ...........................................                -             3,335
                                                                                                         --------          --------
                Net cash provided by operating activities ......................................            1,611             1,870
                                                                                                         --------          --------

Investing activities
     Purchases of available-for-sale securities ................................................          (35,201)          (29,125)
     Maturities, calls and paydowns of available-for-sale securities ...........................           10,698            22,894
     Proceeds of sales of available-for-sale securities ........................................            3,826                 -
     Purchases of other investments ............................................................             (147)             (195)
     Net increase in loans made to customers ...................................................           (3,681)           (3,243)
     Purchases of premises and equipment .......................................................              (38)             (258)
     Proceeds of sale of real estate held for sale .............................................              212                 -
                                                                                                         --------          --------
                Net cash used by investing activities ..........................................          (24,331)           (9,927)
                                                                                                         --------          --------

Financing activities
     Net increase in demand deposits, interest
         bearing transaction accounts and savings accounts .....................................            7,320            15,054
     Net increase in certificates of deposit and other
         time deposits .........................................................................            2,001             8,065
     Exercise of employee stock options ........................................................              121                28
                                                                                                         --------          --------
                Net cash provided by financing activities ......................................            9,442            23,147
                                                                                                         --------          --------
(Decrease) increase in cash and cash equivalents ...............................................          (13,278)           15,090
Cash and cash equivalents, beginning ...........................................................           39,505            26,617
                                                                                                         --------          --------
Cash and cash equivalents, ending ..............................................................         $ 26,227          $ 41,707
                                                                                                         ========          ========

Supplemental  Disclosure  of Cash Flow  Information
     Cash paid during the period for:
         Interest ..............................................................................         $  1,125          $  1,004
         Income taxes ..........................................................................               44                30
     Noncash investing and financing activities:
         Other comprehensive income ............................................................              449                30
</TABLE>

See accompanying notes to unaudited consolidated financial statements.


                                       6
<PAGE>


COMMUNITY FIRST BANCORPORATION

Notes to Unaudited Consolidated Financial Statements

Accounting  Policies - A summary of significant  accounting policies is included
in Community First Bancorporation's (the "Company") Annual Report on Form 10-KSB
for the year ended  December  31, 2003 filed with the  Securities  and  Exchange
Commission.

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

Nonperforming  Loans - As of March 31, 2004,  there were  $998,000 in nonaccrual
loans and no loans 90 days or more past due and still accruing interest.

Earnings Per Share - Basic earnings per common share is computed by dividing net
income  applicable  to common  shares by the weighted  average  number of common
shares  outstanding.   Diluted  earnings  per  share  is  computed  by  dividing
applicable  net  income  by  the  weighted   average  number  of  common  shares
outstanding and any dilutive potential common shares and dilutive stock options.
It is assumed that all dilutive  stock options are exercised at the beginning of
each period and that the proceeds are used to purchase  shares of the  Company's
common  stock at the  average  market  price  during the  period.  All per share
information  has  been  retroactively  adjusted  to give  effect  to a 5%  stock
dividend  effective  November 28, 2003.  Net income per share and net income per
share, assuming dilution, were computed as follows:

<TABLE>
<CAPTION>
                                                                                                               (Unaudited)
                                                                                                          Three Months Ended
                                                                                                                March 31,
                                                                                                      2004                    2003
                                                                                                      ----                    ----
                                                                                                         (Dollars in thousands,
                                                                                                          except per share amounts)

Net income per share, basic
<S>                                                                                               <C>                     <C>
  Numerator - net income ...........................................................              $      832              $      727
                                                                                                  ==========              ==========
  Denominator
    Weighted average common shares issued and outstanding ..........................               2,386,703               2,359,440
                                                                                                  ==========              ==========

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

Net income per share, assuming dilution
  Numerator - net income ...........................................................              $      832              $      727
                                                                                                  ==========              ==========
  Denominator
    Weighted average common shares issued and outstanding ..........................               2,386,703               2,359,440
    Effect of dilutive stock options ...............................................                 116,052                 118,851
                                                                                                  ----------              ----------
               Total shares ........................................................               2,502,755               2,478,291
                                                                                                  ==========              ==========
               Net income per share, assuming dilution .............................              $      .33              $      .29
                                                                                                  ==========              ==========
</TABLE>


Stock-Based Compensation - As of March 31, 2004, the Company has two stock-based
compensation  plans that are accounted for under the recognition and measurement
principles of Accounting  Standards Board Opinion No. 25,  "Accounting for Stock
Issued to Employees," and related  interpretations.  No stock-based compensation
is  reflected  in net  income,  as all  options  granted  under  those plans had
exercise prices equal to the market value of the underlying  common stock on the
date of grant. The following table  illustrates the effect on net income and net
income  per  share  if the  Company  had  applied  the  fair  value  recognition
provisions of Statement of Financial  Accounting  Standards No. 123, "Accounting
for Stock-Based Compensation," as amended, to stock-based employee compensation.
Per share  amounts  have  been  adjusted  to  reflect  the  effect of a 5% stock
dividend effective November 28, 2003.


                                       7
<PAGE>

                                                               (Unaudited)
                                                           Three Months Ended
                                                                March 31,
                                                             2004          2003
                                                             ----          ----
                                                         (Dollars in thousands,
                                                       except per share amounts)

Net income, as reported ..............................      $   832      $   727
Deduct:  Total stock-based employee
      compensation expense determined under
      fair value based method for all awards,
      net of any related tax effects .................           50           67
                                                            -------      -------
Pro forma net income .................................      $   782      $   660
                                                            =======      =======

Net income per share, basic
      As reported ....................................      $  0.35      $  0.31
      Pro forma ......................................         0.33         0.28
Net income per share, assuming dilution
      As reported ....................................      $  0.33      $  0.29
      Pro forma ......................................         0.31         0.27


Item 2. - Management's Discussion and Analysis

Forward Looking Statements

         Statements  included in Management's  Discussion and Analysis which are
not  historical  in nature are  intended  to be, and are  hereby  identified  as
"forward looking statements" for purposes of the safe harbor provided by Section
21E  of the  Securities  Exchange  Act  of  1934,  as  amended.  Forward-looking
statements include statements concerning plans,  objectives,  goals, strategies,
future events or performance  and underlying  assumptions  and other  statements
which are other  than  statements  of  historical  facts.  Such  forward-looking
statements  may be  identified,  without  limitation,  by the  use of the  words
"anticipates,"   "believes,"   "estimates,"   "expects,"   "intends,"   "plans,"
"predicts,"  "projects," and similar  expressions.  The Company's  expectations,
beliefs and  projections  are  expressed  in good faith and are  believed by the
Company to have a reasonable basis,  including without limitation,  management's
examination  of historical  operating  trends,  data  contained in the Company's
records  and  other  data  available  from  third  parties,  but there can be no
assurance that management's beliefs,  expectations or projections will result or
be achieved or accomplished.  The Company cautions readers that  forward-looking
statements, including without limitation, those relating to the Company's recent
and continuing  expansion,  its future  business  prospects,  revenues,  working
capital,  liquidity,  capital needs, interest costs, income, and adequacy of the
allowance  for loan losses,  are subject to risks and  uncertainties  that could
cause  actual  results  to  differ   materially  from  those  indicated  in  the
forward-looking  statements, due to several important factors herein identified,
among others,  and other risks and factors  identified  from time to time in the
Company's reports filed with the Securities and Exchange Commission.

Results of Operations

         Community First  Bancorporation (the "Company")  recorded  consolidated
net income of  $832,000 or $.35 per share for the first  quarter of 2004.  These
results  are  $105,000,  or $.04 per share,  more than net income of $727,000 or
$.31 per share for the first  quarter of 2003.  Net  income per share,  assuming
dilution  was $.33 for the 2004  period  and $.29 for the  comparable  period of
2003. Net income per share amounts for 2003 have been retroactively  adjusted to
reflect a five percent stock dividend effective November 28, 2003.

         Net interest income is the principal source of the Company's  earnings.
For the first quarter of 2004, net interest income was  $2,067,000,  an increase
of $141,000  or 7.3% over the first  quarter of 2003.  The  increase in 2004 net
interest income is  attributable  to larger average amounts of interest  earning
assets and lower interest rates  associated with the Company's  funding sources.
Average  interest  earning assets totaled  $281,699,000  during the 2004 period,
compared with  $247,618,000  during the same period of 2003.  This represents an
increase  of  $34,081,000,  or 13.8%.  Average  loans for the 2004  period  were
$149,089,000,  an  increase  of  $10,854,000  or 7.9% over the  comparable  2003
average.  Average  available-for-sale   securities  for  the  2004  period  were
$93,986,000,  an  increase of  $26,628,000  or 39.5% over the 2003  period.  The
average  annualized  yield on earning assets during the 2004 period was 4.77%, a
decrease  of 38 basis  points  from  the  comparable  2003  yield.  The  average


                                       8
<PAGE>

annualized  rates paid for interest  bearing  deposits  during the 2004 and 2003
three-month periods were 2.11% and 2.34%, respectively. Average interest bearing
liabilities  totaled  $240,399,000  for the 2004 period and  $211,563,000 in the
2003 period, representing an increase of $28,836,000 or 13.6%.

         Market  interest  rates during the 2004 period were slightly lower than
in the first  quarter of 2003.  No  significant  changes in interest  rates have
occurred recently, and it is not expected that significant changes will occur in
the immediate future.

         The  increases  in  interest   earning  assets  and  interest   bearing
liabilities  resulted from the Company's  continuing  strategies to increase its
market share in its local market areas in Anderson and Oconee  Counties of South
Carolina.  Oconee  County is served  from  three  offices  which are  located in
Seneca,  Walhalla  and  Westminster.  The Company  opened its fifth  office,  in
Westminster,  South  Carolina,  during the second  quarter of 2003.  The Company
currently is using its temporary facility at this location.  There presently are
no firm plans,  timetables or budgets for constructing a permanent  facility for
this office.  The Anderson  County market is served from offices in Anderson and
Williamston.

Provision and Allowance for Loan Losses

         The provision for loan losses was $80,000 for the first three months of
2004,  compared  with $250,000 for the  comparable  period of 2003. At March 31,
2004, the allowance for loan losses was 1.49% of loans,  substantially  the same
percentage  as at December 31,  2003.  During the 2004 three month  period,  net
charge-offs totaled $20,000, compared with $36,000 in net charge offs during the
same period of 2003.  As of March 31, 2004,  there were  $998,000 in  nonaccrual
loans and no loans 90 days or more past due and still accruing  interest.  As of
March 31, 2003,  there were $730,000 in nonaccrual loans and no loans 90 days or
more past due and still  accruing  interest.  The amount of nonaccrual  loans at
March 31,  2004 is  $268,000  more than the amount at March 31,  2003 and $1,000
more than the $997,000 of nonaccrual loans as of December 31, 2003.

Noninterest Income

         Noninterest  income  totaled  $472,000  for the first  quarter of 2004,
compared with $465,000 for the 2003 quarter. Service charges on deposit accounts
in the 2004 period were  approximately  $29,000  greater  than in the prior year
period.  In 2003,  gains realized on sales of mortgage loans originated for sale
were $65,000.  The Company no longer  originates such loans for its own account;
it now acts as a broker for another  financial  institution in performing  these
services,  for which it earned commissions of approximately  $11,000 in the 2004
period.   Net  gains  of  $5,000  were  realized  and  recognized  on  sales  of
available-for-sale securities in the 2004 period.

Noninterest Expenses

         Noninterest  expenses totaled $1,177,000 for the first quarter of 2004,
compared  with  $1,013,000  for 2003,  representing  an  increase of $164,000 or
16.2%.  Salaries and employee  benefits  increased  by  $119,000,  or 21.2%,  to
$680,000.  This increase resulted primarily from normal salary increases,  which
are  granted  from  time to time,  and  increases  in the  number  of  employees
associated  with the  Company's  growth.  Occupancy  and furniture and equipment
expenses for 2004 increased by $20,000  compared with 2003 primarily as a result
of higher  depreciation  expenses  associated with the Company's  growth and the
opening of the new Westminster  office in May 2003.  Other expenses for the 2004
period were $25,000 greater than in 2003 due to increased expenses for telephone
services,  other real estate expenses,  software expenses,  and ATM fees paid to
other  institutions and switch providers.  Many of these increased  expenses are
attributable  to the Company's  continuing  success in attracting  and retaining
customers and to the opening of the Westminster office.

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 March 31, 2004,  the ratio of loans to total  deposits was 56.9%,
compared  with 57.6% as of  December  31,  2003 and 59.9% as of March 31,  2003.
Deposits as of March 31, 2004 were  $265,872,000,  an increase of  $9,321,000 or
3.6% over the amount as of December 31, 2003,  and  $31,114,000 or 13.3% greater
than the  level of  March  31,  2003.  The  growth  in  deposit  liabilities  is
attributable  to the  Company's  marketing  strategies,  the  opening of the new
office in  Westminster,  South  Carolina and the offering of interest  rates for


                                       9
<PAGE>

deposit  accounts  that are  attractive  compared  with the offerings of larger,
regional and nationwide  institutions  that also operate in the Company's market
areas.

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

Capital Resources

         The Company's  capital base increased by $1,402,000  since December 31,
2003 as the result of net income of $832,000 for the first three months of 2004,
plus a $449,000  change in  unrealized  gains and  losses on  available-for-sale
securities,   net  of  deferred  tax  effects,   and  an  increase  of  $121,000
attributable to the exercise of employee stock options.

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

         The March 31,  2004 risk based  capital  ratios for the Company and the
Bank are presented in the following table,  compared with the "well capitalized"
and minimum ratios under the regulatory definitions and guidelines:

                                                            Total
                                               Tier 1       Capital     Leverage
                                               ------       -------     --------
Community First Bancorporation                  14.2%        15.4%       8.1%
Community First Bank                            13.6%        14.9%       7.7%
Minimum "well-capitalized" requirement           6.0%        10.0%       6.0%
Minimum requirement                              4.0%         8.0%       4.0%


Off Balance Sheet Arrangements

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

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

                                       March 31, 2004
                                         (Dollars in
                                          thousands)
                                          ----------
Loan commitments .....................     $14,734
Standby letters of credit ............         453


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

Standby  letters  of  credit  are  conditional   commitments  to  guarantee  the
performance of a customer to a third party.  The credit risk involved in issuing
standby  letters  of  credit  is the  same  as  that  involved  in  making  loan
commitments to customers. Many letters of credit will expire without being drawn
upon  and do not  necessarily  represent  future  cash  requirements.  The  Bank
receives fees for loan commitments and standby letters of credit.  The amount of
such fees was not material for the three months ended March 31, 2004.



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<PAGE>

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


Item 3. - Controls and Procedures

Based  on  the  evaluation  required  by  17  C.F.R.  Section  240.13a-15(b)  or
240.15d-15(b) of the issuer's  disclosure controls and procedures (as defined in
17  C.F.R.  Sections  240.13a-15(e)  and  240.15d-15(e)),   the  issuer's  chief
executive  officer and chief financial  officer concluded that the effectiveness
of such  controls and  procedures,  as of the end of the period  covered by this
report, was adequate.

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


                           PART II - OTHER INFORMATION

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

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

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


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



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<PAGE>


SIGNATURE

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


                                    COMMUNITY FIRST BANCORPORATION

May 5, 2004                         /s/ Frederick D. Shepherd, Jr.
-----------------                   --------------------------------------------
         Date                        Frederick D. Shepherd, Jr., Chief Executive
                                     Officer and Chief Financial Officer



                                       12
<PAGE>


                                  Exhibit Index


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

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







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