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

                                   FORM 10-QSB

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

For Quarterly Period Ended September 30, 2003      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, 2,249,590 Shares Outstanding on October 31, 2003.

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



                                       1
<PAGE>


                         COMMUNITY FIRST BANCORPORATION

                                   FORM 10-QSB

                                      Index

                                                                            Page
PART I -    FINANCIAL INFORMATION

Item 1.     Financial Statements

            Consolidated Balance Sheet ....................................    3
            Consolidated Statement of Income ..............................    4
            Consolidated Statement of Changes in Shareholders' Equity .....    5
            Consolidated Statement of Cash Flows ..........................    6
            Notes to Unaudited Consolidated Financial Statements ..........  7-8

Item 2.     Management's Discussion and Analysis .......................... 9-12

Item 3.     Controls and Procedures .......................................   12

PART II -   OTHER INFORMATION

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

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




                                       2
<PAGE>


                         PART I - FINANCIAL INFORMATION

Item 1. - Financial Statements

COMMUNITY FIRST BANCORPORATION
Consolidated Balance Sheet
<TABLE>
<CAPTION>
                                                                                                     (Unaudited)
                                                                                                     September 30,      December 31,
                                                                                                          2003              2002
                                                                                                          ----              ----
                                                                                                          (Dollars in thousands)
Assets
<S>                                                                                                    <C>                <C>
     Cash and due from banks .................................................................         $   3,838          $   5,114
     Interest bearing deposits due from banks ................................................                23                 32
     Federal funds sold ......................................................................            29,292             21,471
     Securities available-for-sale ...........................................................            88,523             62,968
     Other investments .......................................................................               750                555
     Loans held for sale .....................................................................                 -                211
     Loans ...................................................................................           144,577            137,358
         Allowance for loan losses ...........................................................            (2,244)            (1,950)
                                                                                                       ---------          ---------
            Loans - net ......................................................................           142,333            135,408
     Premises and equipment - net ............................................................             4,232              4,148
     Accrued interest receivable .............................................................             1,425              1,351
     Other assets ............................................................................             3,117              1,597
                                                                                                       ---------          ---------

            Total assets .....................................................................         $ 273,533          $ 232,855
                                                                                                       =========          =========

Liabilities
     Deposits
         Noninterest bearing .................................................................         $  27,743          $  24,416
         Interest bearing ....................................................................           222,612            187,223
                                                                                                       ---------          ---------
            Total deposits ...................................................................           250,355            211,639
     Accrued interest payable ................................................................             1,282              1,069
     Other liabilities .......................................................................               108                 62
                                                                                                       ---------          ---------
            Total liabilities ................................................................           251,745            212,770
                                                                                                       ---------          ---------

Shareholders' equity
     Common stock - no par  value;  10,000,000 shares authorized; issued and
         outstanding - 2,249,269 for 2003 and
         2,242,417 for 2002 ..................................................................            17,598             17,569
     Retained earnings .......................................................................             4,330              2,137
     Accumulated other comprehensive income ..................................................              (140)               379
                                                                                                       ---------          ---------
            Total shareholders' equity .......................................................            21,788             20,085
                                                                                                       ---------          ---------

            Total liabilities and shareholders' equity .......................................         $ 273,533          $ 232,855
                                                                                                       =========          =========
</TABLE>






See accompanying notes to unaudited consolidated financial statements.


                                       3
<PAGE>

COMMUNITY FIRST BANCORPORATION
Consolidated Statement of Income
<TABLE>
<CAPTION>
                                                                                                 (Unaudited)
                                                                                          Period Ended September 30,
                                                                                          --------------------------
                                                                                 Three Months                     Nine Months
                                                                              2003           2002            2003             2002
                                                                              ----           ----            ----             ----
                                                                                      (Dollars in thousands, except per share)

Interest income
<S>                                                                         <C>             <C>             <C>             <C>
     Loans, including fees ........................................         $ 2,496         $ 2,496         $ 7,420         $ 7,093
     Securities
       Taxable ....................................................             536             597           1,601           2,015
       Tax-exempt .................................................               3               2               8               7
     Other investments ............................................               8               8              21              15
     Federal funds sold ...........................................              97              85             342             324
                                                                            -------         -------         -------         -------
         Total interest income ....................................           3,140           3,188           9,392           9,454
                                                                            -------         -------         -------         -------

Interest expense
     Time deposits $100M and over .................................             414             400           1,228           1,148
     Other deposits ...............................................             901             744           2,588           2,370
                                                                            -------         -------         -------         -------
         Total interest expense ...................................           1,315           1,144           3,816           3,518
                                                                            -------         -------         -------         -------

Net interest income ...............................................           1,825           2,044           5,576           5,936
Provision for loan losses .........................................              75             270             475             930
                                                                            -------         -------         -------         -------
Net interest income after provision ...............................           1,750           1,774           5,101           5,006
                                                                            -------         -------         -------         -------

Other income
     Service charges on deposit accounts ..........................             355             249           1,071             649
     Credit life insurance commissions ............................               8               7              29              30
     Loss on sale of available-for-sale security ..................               -               -               -              (2)
     Gain on sale of loans held for sale ..........................               4              19             130              22
     Other income .................................................             118              49             227             146
                                                                            -------         -------         -------         -------
         Total other income .......................................             485             324           1,457             845
                                                                            -------         -------         -------         -------

Other expenses
     Salaries and employee benefits ...............................             659             526           1,754           1,458
     Net occupancy expense ........................................              61              46             158             142
     Furniture and equipment expense ..............................              60              71             198             203
     Other expense ................................................             352             293           1,070             823
                                                                            -------         -------         -------         -------
         Total other expenses .....................................           1,132             936           3,180           2,626
                                                                            -------         -------         -------         -------

Income before income taxes ........................................           1,103           1,162           3,378           3,225
Income tax expense ................................................             374             418           1,185           1,154
                                                                            -------         -------         -------         -------
Net income ........................................................         $   729         $   744         $ 2,193         $ 2,071
                                                                            =======         =======         =======         =======

Per share*
     Net income ...................................................         $  0.32         $  0.33         $  0.97         $  0.93
     Net income, assuming dilution ................................            0.31            0.32            0.93            0.89
</TABLE>
________________________________
* Per share  information has been  retroactively  adjusted to reflect a 5% stock
dividend effective November 28, 2002.



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

Comprehensive income:
    Net income .............................................             -             -         2,071             -          2,071
                                                                                                                          ---------
    Change in unrealized holding gains and losses
      on available-for-sale securities arising
      during the period, net of income taxes of $128 .......             -             -             -           231            231
    Reclassification adjustment for losses (gains)
      realized in income, net of income taxes of $1 ........             -             -             -             1              1
                                                                                                                          ---------
        Total other comprehensive income ...................             -             -             -             -            232
                                                                                                                          ---------
          Total comprehensive income .......................             -             -             -             -          2,303
                                                                                                                          ---------
Exercise of employee stock options .........................         4,936            19             -             -             19
                                                                 ---------     ---------     ---------     ---------      ---------
Balance, September 30, 2002 ................................     2,122,021     $  15,753     $   3,191     $     394      $  19,338
                                                                 =========     =========     =========     =========      =========



Balance, January 1, 2003 ...................................     2,242,417     $  17,569     $   2,137     $     379      $  20,085
                                                                                                                          ---------

Comprehensive income:
    Net income .............................................             -             -         2,193             -          2,193
                                                                                                                          ---------
    Change in unrealized holding gains and losses
      on available-for-sale securities arising
      during the period, net of income taxes of $291 .......             -             -             -          (519)          (519)
                                                                                                                          ---------
        Total other comprehensive income ...................             -             -             -             -           (519)
                                                                                                                          ---------
          Total comprehensive income .......................             -             -             -             -          1,674
                                                                                                                          ---------
Exercise of employee stock options .........................         6,852            29             -             -             29
                                                                 ---------     ---------     ---------     ---------      ---------
Balance, September 30, 2003 ................................     2,249,269     $  17,598     $   4,330     $    (140)     $  21,788
                                                                 =========     =========     =========     =========      =========
</TABLE>


























See accompanying notes to unaudited consolidated financial statements.


                                       5
<PAGE>

COMMUNITY FIRST BANCORPORATION
Consolidated Statement of Cash Flows
<TABLE>
<CAPTION>
                                                                                                                (Unaudited)
                                                                                                              Nine Months Ended
                                                                                                                September 30,
                                                                                                            2003              2002
                                                                                                            ----              ----
                                                                                                             (Dollars in thousands)
Operating activities
<S>                                                                                                      <C>               <C>
     Net income ................................................................................         $  2,193          $  2,071
     Adjustments to reconcile net income to net
         cash provided by operating activities
            Provision for loan losses ..........................................................              475               930
            Depreciation .......................................................................              165               183
            Amortization of net loan (fees) and costs ..........................................              (42)               (6)
            Securities accretion and premium amortization ......................................              798                61
            Loss on sale of available-for-sale security ........................................                -                 2
            Gain on sale of loans held for sale ................................................             (130)              (22)
            (Increase) decrease in interest receivable .........................................              (74)               45
            Increase (decrease) in interest payable ............................................              213              (328)
            Increase in prepaid expenses and other assets ......................................             (533)             (196)
            Increase (decrease) in other accrued expenses ......................................               46               (25)
            Loss on sale of other real estate ..................................................                -                 8
            Proceeds of sale of loans held for sale ............................................            4,559             1,541
            Originations of loans held for sale ................................................           (4,218)           (1,719)
                                                                                                         --------          --------
                Net cash provided by operating activities ......................................            3,452             2,545
                                                                                                         --------          --------

Investing activities
     Purchases of available-for-sale securities ................................................          (77,874)          (43,834)
     Maturities and calls of available-for-sale securities .....................................           50,711            46,571
     Proceeds of sale of available-for-sale security ...........................................                -             2,998
     Purchases of other investments ............................................................             (195)              (74)
     Net increase in loans made to customers ...................................................           (8,054)          (16,495)
     Purchases of premises and equipment .......................................................             (249)             (322)
     Proceeds from sale of other real estate ...................................................                -               140
                                                                                                         --------          --------
                Net cash used by investing activities ..........................................          (35,661)          (11,016)
                                                                                                         --------          --------

Financing activities
     Net increase (decrease) in demand deposits, interest
         bearing transaction accounts and savings accounts .....................................           11,252            (6,341)
     Net increase in certificates of deposit and other
         time deposits .........................................................................           27,464            12,146
     Exercise of employee stock options ........................................................               29                19
                                                                                                         --------          --------
                Net cash provided by financing activities ......................................           38,745             5,824
                                                                                                         --------          --------
Increase (decrease) in cash and cash equivalents ...............................................            6,536            (2,647)
Cash and cash equivalents, beginning ...........................................................           26,617            15,330
                                                                                                         --------          --------
Cash and cash equivalents, ending ..............................................................         $ 33,153          $ 12,683
                                                                                                         ========          ========

Supplemental  Disclosure  of Cash Flow Information
  Cash paid during the period for:
         Interest ..............................................................................         $  3,603          $  3,864
         Income taxes ..........................................................................            1,228             1,305
     Noncash investing and financing activities:
         Transfer of loans to other real estate ................................................              696                25
</TABLE>

See accompanying notes to unaudited consolidated financial statements.


                                       6
<PAGE>

COMMUNITY FIRST BANCORPORATION
Notes to Unaudited Consolidated Financial Statements

Accounting  Policies - A summary of significant  accounting policies is included
in Community First  Bancorporation's  (the "Company") Annual Report for the year
ended  December 31, 2002 on Form 10-KSB filed with the  Securities  and Exchange
Commission.

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

Nonperforming  Loans - As of  September  30,  2003,  there  were  $1,015,000  of
nonaccrual  loans  and no loans  90 days or more  past  due and  still  accruing
interest.

Earnings Per Share - Basic earnings per common share is computed by dividing net
income  applicable  to common  shares by the weighted  average  number of common
shares  outstanding.   Diluted  earnings  per  share  is  computed  by  dividing
applicable  net  income  by  the  weighted   average  number  of  common  shares
outstanding and any dilutive potential common shares and dilutive stock options.
It is assumed that all dilutive  stock options are exercised at the beginning of
each period and that the proceeds are used to purchase  shares of the  Company's
common  stock  at  the  average  market  price  during  the  period.  Per  share
information  for 2002 has been  retroactively  adjusted  to give  effect to a 5%
stock dividend  effective November 28, 2002. Net income per share and net income
per share, assuming dilution, were computed as follows:

<TABLE>
<CAPTION>
                                                                                            (Unaudited)
                                                                                     Period Ended September 30,
                                                                                     --------------------------
                                                                          Three Months                         Nine Months
                                                                          ------------                         -----------
                                                                    2003               2002               2003              2002
                                                                    ----               ----               ----              ----
                                                                          (Dollars in thousands, except per share amounts)

Net income per share, basic
<S>                                                              <C>                <C>                <C>                <C>
  Numerator - net income ...............................         $      729         $      744         $    2,193         $    2,071
                                                                 ==========         ==========         ==========         ==========
  Denominator
    Weighted average common shares
      issued and outstanding ...........................          2,249,258          2,228,122          2,248,539          2,225,874
                                                                 ==========         ==========         ==========         ==========

    Net income per share, basic ........................         $      .32         $      .33         $      .97         $      .93
                                                                 ==========         ==========         ==========         ==========

Net income per share, assuming dilution
  Numerator - net income ...............................         $      729         $      744         $    2,193         $    2,071
                                                                 ==========         ==========         ==========         ==========
  Denominator
    Weighted average common shares
      issued and outstanding ...........................          2,249,258          2,228,122          2,248,539          2,225,874
  Effect of dilutive stock options .....................            113,179            117,616            113,179            115,030
                                                                 ----------         ----------         ----------         ----------
               Total shares ............................          2,362,437          2,345,738          2,361,718          2,340,904
                                                                 ==========         ==========         ==========         ==========

    Net income per share, assuming dilution ............         $      .31         $      .32         $      .93         $      .89
                                                                 ==========         ==========         ==========         ==========
</TABLE>

Stock-Based  Compensation  - As of  September  30,  2003,  the  Company  has two
stock-based  compensation plans that are accounted for under the recognition and
measurement principles of Accounting Standards Board Opinion No. 25, "Accounting
for Stock Issued to  Employees,"  and related  interpretations.  No  stock-based
compensation  is  recognized in net income,  as all options  granted under those
plans had exercise  prices equal to the market  value of the  underlying  common
stock on the date of grant.  Although  the Company  has  adopted the  disclosure
provisions of Statement of Financial  Accounting  Standards No. 123, "Accounting
for  Stock-Based  Compensation,"  ("SFAS 123") as amended,  there are no current
intentions  to adopt  the  fair  value  method  recognition  provisions  of that
statement.  The  following  table  illustrates  the effect on net income and net
income  per  share  if the  Company  had  applied  the  fair  value  recognition
provisions of SFAS 123 to stock-based employee  compensation.  Per share amounts
have been  adjusted  to  reflect  the  effect of a 5% stock  dividend  effective
November 28, 2002.


                                       7
<PAGE>


<TABLE>
<CAPTION>
                                                                                                 (Unaudited)

                                                                                          Period Ended September 30,
                                                                                          --------------------------
                                                                               Three Months                       Nine Months
                                                                               ------------                       -----------
                                                                           2003            2002              2003             2002
                                                                           ----            ----              ----             ----
                                                                              (Dollars in thousands, except per share amounts)

<S>                                                                      <C>             <C>             <C>               <C>
Net income, as reported ........................................         $   729         $   744         $   2,193         $   2,071
Deduct:  Total stock-based employee
     compensation expense determined under
     fair value based method for all awards,
     net of any related tax effects ............................              67              69               200               207
                                                                         -------         -------         ---------         ---------
Pro forma net income ...........................................         $   662         $   675         $   1,993         $   1,864
                                                                         =======         =======         =========         =========

Net income per share, basic
     As reported ...............................................         $  0.32         $  0.33          $   0.97         $    0.93
     Pro forma .................................................            0.29            0.30              0.88              0.83
Net income per share, assuming dilution
     As reported ...............................................         $  0.31         $  0.32          $   0.93         $    0.89
     Pro forma .................................................            0.28            0.29              0.84              0.80
</TABLE>


























                                       8
<PAGE>

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,"   "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,  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  recorded  consolidated  net income of
$729,000, or $.32 per share, for the third quarter, and $2,193,000,  or $.97 per
share, for the first nine months of 2003.  During 2002, the Company recorded net
income of $744,000 or $.33 per share for the third quarter,  and $2,071,000,  or
$.93 per share,  for the first  nine  months.  Net  income  per share,  assuming
dilution, for the three and nine month periods ended September 30, 2003 was $.31
and $.93,  respectively.  For the comparable 2002 periods, net income per share,
assuming dilution, was $.32 and $.89, respectively. Net income per share figures
for 2002  have  been  retroactively  adjusted  to  reflect  a 5% stock  dividend
effective November 28, 2002.

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 the first nine months of 2003, net interest  income was $5,576,000,
a decrease of $360,000 or 6.1% from the first nine months of 2002.  The decrease
in net interest  income for the 2003 period  resulted  from the effects of lower
interest rates earned on interest  earning assets and higher volumes of interest
bearing liabilities.

         The  average  rate earned on interest  earning  assets  declined by 103
basis  points to 4.92% for the 2003  period.  The average rate paid for interest
bearing  liabilities  during the 2003 nine month period was 2.35%, a decrease of
30 basis points from the same 2002 period.

         Average interest earning assets during the 2003 nine-month  period were
$255,283,000,  an increase of $42,781,000 or 20.1% over the comparable period of
2002.  Average loans for the 2003  nine-month  period totaled  $141,315,000,  an
increase of  $13,528,000  or 10.6% over the same period of 2002.  Average  loans
were 55.4% and 60.1% of average  interest  earning  assets for the 2003 and 2002
nine-month  periods,  respectively.  Average  federal  funds  sold  for the 2003
nine-month period were $42,500,000, an increase of $16,674,000 or 64.6% over the
same  period of 2002.  Average  interest  bearing  liabilities  during  the 2003
nine-month period were $216,847,000,  representing an increase of $39,319,000 or
22.1% over the amount for the same  period of 2002.  Average  time  deposits  of
$100,000 and over increased to $63,882,000 for the 2003  nine-month  period from
$53,293,000 in the same prior year period,  an increase of $10,589,000 or 19.9%.
Average time deposits less than $100,000  increased to $90,821,000  for the 2003
nine-month  period from $67,116,000 in the same period of 2002,  representing an
increase of $23,705,000  or 35.3%.  Average  interest  bearing  transaction  and
savings  accounts  increased to $62,144,000 for the 2003 nine-month  period,  an
increase of $5,025,000 or 8.8% from the same period of 2002.

         The average  interest rate spread  (average  yield on interest  earning
assets less the average rate paid on interest bearing liabilities) for the first
nine months of 2003 was 2.57%.  The comparable  figure for the first nine months


                                       9
<PAGE>

of 2002 was 3.30%.  Net yield on earning assets (net interest  income divided by
average  interest earning assets) was 2.92% for the first nine months of 2003, a
decrease  of 81 basis  points from the 3.73% net yield for the first nine months
of 2002.

         During the  twelve-month  period ended  September 30, 2003, the Federal
Reserve Bank's Open Market  Committee  lowered key target  interest rates on two
occasions,  resulting in  reductions  of 75 basis points in those target  rates.
Consequently,  the prime rate, a key  determinant of rates charged to the Bank's
most  credit-worthy  customers  and a  factor  considered  in  all  loan-pricing
decisions,  was  similarly  reduced.  As of September  30,  2003,  approximately
$54,000,000,  or 37.8%, of the Company's loan portfolio was composed of variable
rate loans  directly  indexed to movements  in the prime rate.  The average rate
earned on loans  during the first nine months of 2003 was 7.02%,  compared  with
7.42%  for the same  period  of 2002.  Similarly,  in  response  to the  Federal
Reserve's  rate  reductions,  other  market  rates of  interest  have  declined.
Securities  issuers  have taken  advantage of these  circumstances  by redeeming
securities that were issued with call  provisions,  and reissuing new securities
at lower rates.  As a result,  the yield on the Company's  investments was 3.04%
for the 2003 nine-month period, compared with 4.63% for the same period of 2002.

         The Company  focused its funding  efforts on  attracting  time  deposit
accounts  during the first nine months of 2003.  Within that time  period,  time
deposits of all types increased by approximately  $27,464,000.  To acquire those
deposits, the Company offered interest rates that, although generally consistent
with the offerings of other locally owned financial institutions,  were somewhat
higher than rates offered by the regional and nationwide  institutions  who also
operate in the Company's market areas. The majority of the funds obtained in the
first nine months of 2003 are scheduled to mature before September 30, 2004.

         Because  loan  demand  softened,  the  Company  invested  the  funds it
acquired  during the 2003  nine-month  period  primarily  in the  lower-yielding
categories of investment  securities and federal funds sold.  Loan demand in the
Company's  market areas was  adversely  affected in 2003 by the  bankruptcy of a
relatively  unregulated  mortgage banking  operation's local funding subsidiary.
This event resulted in the recognition of  approximately  $200,000,000 of losses
by local  investors.  The  longer-term  effect  of the  bankruptcy  on the local
economy is uncertain.

Provision and Allowance for Loan Losses

         The  provision  for loan losses  charged to expense was $75,000 for the
third quarter of 2003 compared with $270,000 for the third quarter of 2002,  and
totaled  $475,000 for the first nine months of 2003  compared  with $930,000 for
the  comparable  period of 2002. At September  30, 2003,  the allowance for loan
losses was 1.55% of loans,  compared  with 1.42% of loans at December  31, 2002.
During the 2003 nine-month  period, net charge-offs  totaled $181,000,  compared
with  $317,000  charged off during the same period of 2002.  As of September 30,
2003,  there were $1,015,000 in nonaccrual  loans and no loans over 90 days past
due and still accruing interest. The amount of nonaccrual loans at September 30,
2003 is $149,000  more than the amount of  nonaccrual  loans as of December  31,
2002.  The  majority of the  nonaccrual  loans are secured by vehicles  and real
estate.  When the estimated net realizable  value of collateral  associated with
nonperforming  loans  is  believed  to be  insufficient  to  satisfy  the  debt,
management generally charges-off the excess amount of the debt.

         As of September 30, 2003, the Company's potential problem loans totaled
$1,109,000,  a decrease of $170,000 from the amount of such loans as of December
31, 2002.  Potential  problem loans  include  loans,  other than  non-performing
loans,  that  management  has  identified  as having  possible  credit  problems
sufficient  to cast doubt upon the abilities of the borrowers to comply with the
current repayment terms. The majority of the potential problem loans are secured
by real  estate  mortgages  or liens  on  equipment,  inventories,  receivables,
automobiles and other forms of collateral.

Noninterest Income

         Noninterest  income  totaled  $485,000  for the third  quarter of 2003,
compared with $324,000 for the 2002 quarter.  Noninterest  income was $1,457,000
for the first nine months of 2003 and  $845,000  for the same 2002  period.  The
higher noninterest  income in 2003 was attributable  primarily to increased fees
derived from charges  assessed  against  deposit  accounts  and  increased  fees
derived from, and net gains  realized on sales of,  mortgage  loans.  There were
$2,000 in realized losses on the sale of an  available-for-sale  security in the
2002  year-to-date  period.  No securities  gains or losses were realized in the
2003 period.

Noninterest Expenses

         Noninterest  expenses totaled $1,132,000 for the third quarter of 2003,
compared with $936,000 for the 2002 period, representing an increase of $196,000
or 20.9%. Noninterest expenses were $3,180,000 for the first nine months of 2003
compared  with  $2,626,000  for the same period of 2002.  Salaries  and employee
benefits for the 2003 quarter totaled $659,000, an increase of $133,000 over the


                                       10
<PAGE>

2002  three  month  period.  For the first  nine  months of 2003,  salaries  and
employee  benefits  totaled  $1,754,000  representing an increase of $296,000 or
20.3%  over the same  period of 2002.  This  increase  resulted  primarily  from
increased  staffing  levels arising from the opening,  in 2003, of the Company's
fifth office, which is located in Westminster,  South Carolina,  and from normal
increases in salaries and wages granted from time to time.

         Occupancy and furniture and equipment expenses for the third quarter of
2003 totaled  $121,000,  an increase of $4,000,  or 3.4% from the amount for the
same  period of 2002.  Such  expenses  increased  $11,000  during the first nine
months  of 2003 and  totaled  $356,000  for the 2003  nine-month  period.  Other
expenses for the third  quarter of 2003 were  $59,000 or 20.1%  greater than the
comparable  period of 2002. Such expenses for the nine-month period of 2003 were
$247,000  or 30.0%  more  than  for the same  period  of  2002.  These  expenses
increased in the 2003 periods  primarily due to expenses  related to the banking
subsidiary's 2003 office expansion into the Westminster market,  increased costs
of computer  software,  implementation  and promotion of imaging  technology for
customer  statements  and other uses,  and higher costs of corporate  governance
compliance resulting from recent regulatory changes.

         Management anticipates that higher amounts of noninterest expenses will
continue during the remainder of 2003.

Liquidity

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

         Deposits as of September  30, 2003  increased by  $38,716,000  or 18.3%
over the amount at December 31, 2002 and were  $51,031,000 or 25.6% greater than
their levels of September 30, 2002.

         As of  September  30,  2003,  the ratio of loans to total  deposits was
57.7%, compared with 64.9% as of December 31, 2002 and 68.2% as of September 30,
2002. The decrease in the loan-to-deposit ratio for 2003 is generally the result
of the Company's recent emphasis on acquiring  deposit  liabilities,  especially
certificates of deposit and decreased loan demand in the Company's  market area.
As discussed under "Net Interest  Income" above,  deposits  acquired in the 2003
nine-month   period   generally   were   invested   principally   in   short  to
intermediate-term   U.S.   government   agency   securities,   intermediate-term
mortgage-backed securities and federal funds sold.

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

Capital Resources

         The Company's equity capital increased by $1,703,000 since December 31,
2002 as the result of net  income of  $2,193,000  for the first  nine  months of
2003,  $29,000 added from the exercise of employee stock options,  less $519,000
from  changes  in  unrealized  holding  gains and  losses on  available-for-sale
securities, net of deferred tax effects.

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

         The September  30, 2003 risk based  capital  ratios for the Company and
the  Bank  are  presented  in the  following  table,  compared  with  the  "well
capitalized" and minimum ratios under the regulatory definitions and guidelines:

                                                               Total
                                                    Tier 1    Capital   Leverage
                                                    ------    -------   --------
Community First Bancorporation ................     13.7%      15.0%      8.0%
Community First Bank ..........................     13.2%      14.5%      7.7%
Minimum "well-capitalized" requirement ........      6.0%      10.0%      5.0%
Minimum requirement ...........................      4.0%       8.0%      4.0%


                                       11
<PAGE>


Off Balance Sheet Arrangements

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

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

                                            September 30, 2003
                                            ------------------
                                          (Dollars in thousands)
Loan commitments .......................        $15,793
Standby letters of credit ..............            449

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

Standby  letters  of  credit  are  conditional   commitments  to  guarantee  the
performance of a customer to a third party.  The credit risk involved in issuing
standby  letters  of  credit  is the  same  as  that  involved  in  making  loan
commitments to customers.

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

Accounting and Reporting Changes

In  April  2003,  the  Financial  Accounting  Standards  Board  ("FASB")  issued
Statement of Financial  Accounting  Standards  ("SFAS") No. 149,  "Amendment  of
Statement 133 on Derivative  Instruments and Hedging  Activities."  SFAS No. 149
amends and clarifies  accounting for derivative  instruments,  including certain
derivative  contracts  embedded in other  contracts  and loan  commitments  that
relate to the  origination  of  mortgage  loans held for sale,  and for  hedging
activities under SFAS No. 133. SFAS No. 149 is generally effective for contracts
entered into or modified  after June 30,  2003.  The adoption of SFAS No. 149 is
not expected to have a material  effect on the financial  condition or operating
results of the Company.

In May 2003,  the FASB issued SFAS No. 150,  "Accounting  for Certain  Financial
Instruments with  Characteristics  of both Liabilities and Equity." SFAS No. 150
establishes  standards  for  how  an  issuer  classifies  and  measures  certain
financial  instruments with  characteristics  of both liabilities and equity. It
requires that an issuer classify a financial instrument that is within its scope
as a liability (or as an asset in some circumstances). Many of those instruments
were previously  classified as equity.  SFAS No. 150 is generally  effective for
financial instruments entered into or modified after May 31, 2003, and otherwise
is effective at the beginning of the first interim period  beginning  after June
15,  2003.  The  adoption of SFAS No. 150 did not have a material  effect on the
financial condition or operating results of the Company.

In January,  2003,  the FASB issued its  Interpretation  No. 46 ("FIN No.  46"),
"Consolidation of Variable Interest Entities,  an interpretation of ARB No. 51,"
to address  consolidation by business  enterprises of variable interest entities
("VIEs")to  which the usual  consolidation  criteria  described  in ARB No.  51,
"Consolidated  Financial  Statements"  do not  apply  because  the VIEs  have no
ownership  interest or otherwise  are not subject to control  through  ownership
voting interests.  FIN No. 46 applies to VIEs created after January 1, 2003, and
to VIEs in which an enterprise  acquires an interest after that date. It applies
to the Company as of the beginning of the first interim period  beginning  after
June 15, 2003,  and to VIEs in which the Company holds a variable  interest that
it acquired prior to February 1, 2003. The Company  currently holds no interests
in VIEs.  The  adoption  of FIN No.  46 as of July 1,  2003 had no effect on the
Company's financial position or results of operations.


                                       12
<PAGE>

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
quarterly report, was adequate.

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





































                                       13
<PAGE>




                           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

































                                       14
<PAGE>


SIGNATURE

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


                                         COMMUNITY FIRST BANCORPORATION

November 7, 2003                         /s/ Frederick D. Shepherd, Jr.
-----------------                        ---------------------------------------
      Date                               Frederick D. Shepherd, Jr.
                                         Chief Executive Officer and Chief
                                         Financial Officer



                                       15
<PAGE>


                                  EXHIBIT INDEX


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

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





















                                       16