<PAGE>

                          SECURITIES AND EXCHANGE COMMISSION
                               WASHINGTON, D.C.  20549

                                      FORM 10-K
    (MARK ONE)
                 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
                    SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]

                     FOR THE FISCAL YEAR ENDED DECEMBER 31, 1996

                                          OR
               TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                  SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
           For the Transition period from                to
                                      --------------     --------------
                             COMMISSION FILE NO.  0-19368

                           COMMUNITY FIRST BANKSHARES, INC.
                (Exact name of registrant as specified in its charter)

                   DELAWARE                        46-0391436
         -------------------------------    --------------------------
         (State or other jurisdiction of        (I.R.S. Employer
         incorporation or organization)         Identification No.)

                                   520 MAIN AVENUE
                                FARGO, ND   58124-0001
         -------------------------------------------------------
              (Address of principal executive offices and zip code)

<TABLE>
<CAPTION>
<S>                                                                          <C>
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE:   (701) 298-5600
SECURITIES REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT:     NONE
SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT:                  COMMON STOCK, $.01 PAR VALUE
                                                                             7% CUMULATIVE CONVERTIBLE PREFERRED STOCK
                                                                             DEPOSITARY SHARES REPRESENTING 7% CUMULATIVE
                                                                               CONVERTIBLE PREFERRED STOCK
                                                                             PREFERRED STOCK PURCHASE RIGHTS
                                                                             8-7/8% CUMULATIVE CAPITAL SECURITIES, $25 LIQUIDATION
                                                                             AMOUNT*
</TABLE>

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 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
                                       --------    --------

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K.

As of March 14, 1997, assuming as market value the price of $31.125 per share,
the average between the high and low sale prices on the Nasdaq National Market,
the aggregate market value of shares held by nonaffiliates was approximately
$456 million.

As of March 14, 1997, the Company had outstanding 17,183,660 shares of Common
Stock, $.01 par value, net of treasury shares.

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                         DOCUMENTS INCORPORATED BY REFERENCE

Portions of the 1996 Annual Report to Shareholders and the Proxy Statement for
the Company's Annual Meeting of Shareholders to be held May 6, 1997, are
incorporated by reference into Parts II and III, respectively, of this Form
10-K, to the extent described in such Parts.

*  The 8-7/8% Cumulative Capital Securities (the "Capital Securities") were
issued by CFB Capital I ("CFB Capital"), a wholly owned Delaware business trust
subsidiary of the Company.  The Company has also fully and unconditionally
guaranteed all of CFB Capital's obligations under the Capital Securities.

<PAGE>

                                  TABLE OF CONTENTS

                                                                        PAGE NO.

PART I
       Item 1.  BUSINESS . . . . . . . . . . . . . . . . . . . . .          4
       Item 2.  PROPERTIES . . . . . . . . . . . . . . . . . . . .         14
       Item 3.  LEGAL PROCEEDINGS. . . . . . . . . . . . . . . . .         15
       Item 4.  SUBMISSION OF MATTERS TO A VOTE OF
                SECURITY HOLDERS . . . . . . . . . . . . . . . . .         15

PART II
       Item 5.  MARKET FOR REGISTRANT'S COMMON
                EQUITY AND RELATED STOCKHOLDER MATTERS . . . . . .         15
       Item 6.  SELECTED FINANCIAL DATA. . . . . . . . . . . . . .         15
       Item 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS
                OF OPERATIONS. . . . . . . . . . . . . . . . . . .         15
       Item 8.  FINANCIAL STATEMENTS AND
                SUPPLEMENTARY DATA . . . . . . . . . . . . . . . .         15
       Item 9.  CHANGES IN AND DISAGREEMENTS WITH
                ACCOUNTANTS ON ACCOUNTING AND
                FINANCIAL DISCLOSURE . . . . . . . . . . . . . . .         16

PART III
       Item 10. DIRECTORS AND EXECUTIVE OFFICERS
                OF THE REGISTRANT. . . . . . . . . . . . . . . . .         16
       Item 11. EXECUTIVE COMPENSATION . . . . . . . . . . . . . .         16
       Item 12. SECURITY OWNERSHIP OF CERTAIN
                BENEFICIAL OWNERS AND MANAGEMENT . . . . . . . . .         16
       Item 13. CERTAIN ELATIONSHIPS AND RELATED
                TRANSACTIONS . . . . . . . . . . . . . . . . . . .         16

PART IV
       Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
                AND REPORTS OF FORM 8-K. . . . . . . . . . . . . .         16

SIGNATURES       . . . . . . . . . . . . . . . . . . . . . . . . .         22 


                                          3

<PAGE>

                                        PART I

ITEM 1.  BUSINESS

GENERAL DEVELOPMENT OF BUSINESS

       Community First Bankshares, Inc. (the "Company"), is a multi-bank
holding company that as of December 31, 1996 operated banks and bank branches
(the "Banks") in 79 communities in Colorado, Iowa, Minnesota, Nebraska, North
Dakota, South Dakota and Wisconsin.  Total assets of the Company were $3.1
billion  as of December 31, 1996.  On February 18, 1997, the Company signed a
purchase agreement with KeyCorp to acquire its Wyoming subsidiary bank, KeyBank
National Association, Cheyenne, Wyoming ("KeyBank"), for a purchase price of
$135 million.  As of December 31, 1996, KeyBank had total assets of $1.2 billion
and banking offices in 24 communities in Wyoming.  Regulatory approval of the
purchase and consummation of the transaction will result in the recognition of
goodwill by the Company of approximately $60 million.

       The Banks are community banks that provide a full range of commercial
and consumer banking services primarily to individuals and businesses in small
and medium-sized communities and the surrounding market areas.  The Company
encourages local autonomy by local Bank presidents, while providing to the Banks
the benefits of holding company affiliation.  The Company maintains a subsidiary
bank phantom stock program, pursuant to which presidents of the subsidiary Banks
participate in the equity appreciation of their respective local Banks.  The
Company believes this program is important to provide these individuals with a
direct incentive to improve the performance of their Banks.

       In 1986, officers of the Company formed three separate bank holding
companies to acquire 21 banks and bank branches from First Bank System, Inc.
("FBS") in Minnesota, North Dakota and South Dakota.  In 1987, the three holding
companies purchased these original banks from FBS and its affiliates.  After the
adoption of the necessary interstate banking laws in these three states, the
three holding companies were merged into a single bank holding company in
transactions in 1989 and 1991.  Since its formation, the Company has acquired 23
community banks, purchased 4 bank or thrift branches and acquired 28 insurance
agencies currently operated in communities served by the Company's Banks.

COMMUNITY BANKING STRATEGY

       The Company's strategy is to operate and continue to acquire banks with
approximately $20 million to $150 million in assets in each of the Company's
selected communities, which communities generally have populations between 3,000
and 50,000 and are generally located in the key target acquisition states of
Colorado, Iowa, Kansas, Minnesota, Montana, Nebraska, North Dakota, South
Dakota, Wisconsin and Wyoming, and additionally in the adjacent states of Idaho,
Illinois, Missouri, New Mexico, Oklahoma and Utah (this sixteen state area is
collectively referred to as the "Acquisition Area").  Such communities are
believed to provide the Company with a stable, relatively low-cost deposit base.
The Company provides the Banks with the advantages of affiliation with a
multi-bank holding company, such as data processing services, credit policy
formulation and review, purchases of assets, investment management and
specialized staff support.  The Company grants substantial autonomy to managers
of the Banks with respect to day-to-day operations, customer service decisions
and marketing.  The Banks are encouraged to participate in community activities,
support local charities and community development, and otherwise enhance their
images in their communities.


                                          4

<PAGE>

THE BANKS

       The Banks provide a full range of commercial and consumer banking
services primarily to individuals and businesses in small and medium-sized
communities and the surrounding market areas.  The Banks draw most of their
deposits from and make most of their loans within their respective market areas.
The Banks owned by the Company as of December 31, 1996, were located in
Colorado, Iowa, Minnesota, Nebraska, North Dakota, South Dakota and Wisconsin.

COMMUNITIES SERVED

       The Banks, as of December 31, 1996, were located in communities with
populations ranging from approximately 200 to 20,000, except for Fargo, which
has a population of approximately 77,000, and Englewood, Colorado, a suburb of
Denver.  Each of the Banks serves a market area with greater population because,
in many cases, there are few or no other financial institutions within a
reasonable distance from the community in which the Bank is located.  The
economies of the Banks' communities, especially those in Nebraska, North Dakota
and South Dakota, depend primarily on farming, farm service and agricultural
supply businesses.  Agriculture in these communities is affected by many factors
beyond the control of the Banks, including weather, governmental policies,
fluctuating commodity prices, demand and production and natural disasters.  As
with other small, nonmetropolitan communities in the Upper Midwest, many of the
communities in which the Banks presently operate have experienced and are
expected to experience no growth or a decline in population.  The Company has
operated profitably in these communities.  However, if  reductions in population
or adverse economic trends in specific communities result in decreased
profitability in the Banks or offices located in those communities, the Company
may consider selling such Banks or offices or reducing the level of services
provided in such communities.

ACQUISITION STRATEGY

       The Company intends to continue its growth by making acquisitions of
community banks and other financial institutions in selected communities in the
Acquisition Area.  The Company believes it is well-positioned to acquire and
profitably operate community banks because of its experience in operating
community banks, its ability to provide centralized management to those banks
and its access to capital.  The Company believes many owners of community banks
are seeking to sell their banks for a variety of reasons, including lack of
shareholder liquidity, management succession problems, the difficulty of
compliance with current multiple-layered bank regulations and increasing
competition from non-bank organizations.  The Company believes there are over
2,000 community banks that are possible acquisition candidates in the
Acquisition Area.

       The Company competes with individuals and institutions, including major
regional bank holding companies, for suitable acquisition candidates within the
Acquisition Area.  Acquisition competitors of the Company in the Acquisition
Area range from regional bank holding companies to individual bank owners who
own or control banks in the Acquisition Area.  The process of industry
consolidation is likely to accelerate as a result of the adoption of the
Interstate Banking and Branching Efficiency Act of 1994 ("IBBEA").  Effective
September 29, 1995, the new law eased remaining state barriers to interstate
acquisitions.  IBBEA  provides for multi-state branch systems beginning June 1,
1997, subject to special "opt-in" and "opt-out" provisions.  Most states have
now adopted implementing legislation.  The effect of the new legislation is
likely to both facilitate  the Company's acquisitions and to increase the number
of potential acquirers of banks in the Acquisition Area.

       The Company has established a due diligence review process to evaluate
acquisition targets and has established acquisition parameters for target
acquisitions relating to market factors, financial performance and


                                          5

<PAGE>

certain nonfinancial factors.   Market factors considered by the Company include
the size and long-term viability of the community and market area served by the
target bank, the dominance of the acquisition target (which should be the
largest or second largest financial institution in the market) and the proximity
of other existing Banks owned by the Company.  In exploring markets in regions
not currently served by the Company, management looks for similarities between
the new market areas and the Company's existing market areas in terms of culture
and economic bases.  Financial analyses performed by the Company in evaluating
acquisition prospects include review of historical performance, comparison to
peers and the Company's Banks in terms of key operating performance ratios
(including earnings, staffing and loan quality) and target ratios.  The Company
determines the price it is willing to pay for an institution based on, among
other factors, the anticipated ten-year average return on invested equity
capital.  Nonfinancial considerations in evaluating an acquisition prospect
include the quality of the management team's skill and the demand on management
resources to integrate the target institution.  Finally, each target acquisition
must undergo an extensive review of loan asset quality, operating procedures and
deposit structure before the Company commits to a purchase.  The Company's level
of future acquisitions will depend, in part, on its ability to attract and
retain management level employees capable of performing efficient review of
credit quality standards of proposed acquisition candidates.  Acquisition
opportunities presented to the Company that have not met the requirements
described above have not been pursued.

       Because of limited growth opportunities in many of the existing markets
served by the Company, management believes future growth in the business
earnings of the Company will largely depend on consummation of acquisitions
consistent with the Company's acquisition strategy.  Successful completion of
acquisitions by the Company depends upon such factors as the availability of
suitable acquisition candidates, necessary regulatory approvals and necessary
approvals of holders of the Company's and other providers of credit, compliance
with applicable capital requirements and, in the case of expansion into new
states, the availability of additional management resources required to operate
banks in widely dispersed geographical areas.

PENDING ACQUISITIONS

       The Company routinely solicits and reviews acquisition opportunities
and, at any given time, may have bids outstanding or may be involved in
negotiations with the owners of financial institutions or other parties relative
to a particular financial institution, its branches or its deposit accounts.

       On February 18, 1997, the Company signed a purchase agreement with
KeyCorp to acquire KeyBank National Association, Cheyenne, Wyoming ("KeyBank")
for a purchase price of $135 million.  As of December 31, 1996, KeyBank had
total assets of $1.2 billion and banking offices in 24 communities in Wyoming.
The transaction, which will be accounted for as a purchase, will result in the
recognition of goodwill of approximately $60 million.  The purchase price is
expected to be funded through a combination of the proceeds from the Company's
January 1997 issue of $60 million 8-7/8% Cumulative Capital Securities, portions
of bank lines of credit, net income received prior to closing and the proceeds
of any possible further sales of subordinated debt or equity securities prior to
the closing of the transaction.  The transaction is subject to regulatory
approval and is anticipated to close during the third quarter of 1997.

RECENT ACQUISITIONS

       In 1996, the Company completed the acquisitions described below, each of
which was accounted for as a pooling of interests.


                                          6

<PAGE>

       FINANCIAL BANCORP, INC.  On October 1, 1996, the Company acquired
Financial Bancorp, Inc., Trinidad, Colorado ("Financial Bancorp"), the holding
company of Trinidad National Bank, Trinidad Colorado (the "Trinidad Bank").  At
September 30, 1996, Financial Bancorp had total assets of approximately $69.5
million and total stockholders' equity of approximately $9.6 million.  Upon
completion of the merger, the Company issued 538,803 shares of common stock to
the former holders of Financial Bancorp common stock.  The market value of the
Company's common stock issued in the merger was approximately $12.7 million,
based on the closing price of the Company's common stock on the Nasdaq National
Market on September 30, 1996.  The Trinidad Bank is a community bank located in
southeastern Colorado that serves a wide range of commercial, agricultural and
consumer banking needs within its market.

       MOUNTAIN PARKS FINANCIAL CORP.  On December 18, 1996, the Company
acquired Mountain Parks Financial Corp. ("Mountain Parks"), a bank holding
company that operated a state chartered bank with full service commercial
banking facilities in 17 Colorado communities.  At September 30, 1996, Mountain
Parks had total assets of approximately $581.8 million and total stockholders'
equity of approximately $57.1 million.  Upon completion of the merger, the
Company issued approximately 5.2 million shares of common stock to the former
holders of Mountain Parks common stock.  The market value of the Company's
common stock issued in the merger was approximately $142.2 million, based on the
closing price of Company common stock on the Nasdaq National Market on December
18, 1996.

       As part of the acquisition of Mountain Parks, the Company also acquired
(i) an 85% interest in Equity Lending, Inc., a specialty consumer mortgage
company involved in originating non-conforming residential mortgages in Arizona,
Colorado, Minnesota and Wisconsin, and (ii) Mountain Parks Financial Services,
Inc., a consumer finance company located in Denver, Colorado that focuses on the
purchase, origination and servicing of consumer installment contracts, primarily
sub-prime auto finance contracts.  On January 3, 1997, the Company acquired the
remaining 15% interest in Equity Lending, Inc.

ADMINISTRATION OF BANKS

       The Company provides policy and management direction and specialized
staff support in general areas while relying on Bank managers for day-to-day
operations, customer service decisions and community relations.  The Company is
responsible for policy-related functions, such as supervisory credit review,
audits, personnel policies and internal examination activities.  Resource
allocations for administrative support by the Company are balanced to provide
adequate support services for the Banks' operations, while carefully controlling
service costs charged to the Banks.  The major areas of administration are as
follows:

       CREDIT.  The Company's lending activities are guided by the general loan
policy established by the Board of Directors.  The Senior Credit Committee of
the Company has established loan approval limits for each region of the Company
and each subsidiary Bank.  Amounts in excess of the individual Bank lending
authority are presented to the Regional Credit Officers.  Loans above $1,500,000
per nonclassified borrower and $250,000 per classified borrower are presented to
the Senior Credit Committee for approval.  The Company's credit policy
establishes guidelines for approval of all credits, including local loans and
purchased loans and loan participations.  The credits of the Banks are subject
to internal review by Bank officers every 12 months.  The loan portfolios of the
Banks are subject to examination by the Company's credit examination staff every
12 to 24 months, the frequency of which is based on a variety of factors,
including the credit quality of the institution.  The credit examination staff
is also responsible for credit review with respect to the assets of banks to be
acquired by the Company.


                                          7

<PAGE>

       FINANCE.  The Board of Directors of the Company has established policies
in the areas of asset/liability management, investments, capital expenditures,
accounting procedures and capital and dividend management.  Policies are
implemented and monitored for compliance by the Chief Financial Officer and the
Asset/Liability Committee of the Company.

       OPERATIONS.  Community First Service Corporation ("CFSC"), a subsidiary
of the Company, provides data processing and operations support services to the
Banks by contract.  CFSC's system is designed to  provide for all Bank and
customer data processing needs at the lowest possible cost and can be expanded
to accommodate future growth and additional service applications.  The Company
believes CFSC has sufficient capacity to provide services to the banks the
Company has agreed to acquire.  In addition to its own office facilities in
Fargo, North Dakota, CFSC also uses Mountain Park's data processing facility in
Golden, Colorado.  Additional expenditures for equipment, consistent with the
increased data processing volumes, would likely be necessary if additional
significant acquisitions occur during 1997.

       OTHER SERVICES.  The Company provides other services for the benefit of
the Banks, such as outside professional services,  central human resources
services, benefits administration, marketing guidance and centralized purchasing
of supplies.

INSURANCE AGENCIES

       The Company currently owns and operates insurance agencies located in 30
communities served by the Banks through its subsidiaries, Community Insurance,
Inc. ("CII"), and Community First Insurance Agencies, Inc. ("CFIA").  These
agencies are primarily engaged in the sale of property and casualty insurance
and make some sales of other types of insurance, such as life, accident and crop
hail insurance.  The Company had commission revenue of $4.2 million in 1996.

OTHER ACTIVITIES

       The Company has steadily consolidated Banks located in each state into
single legal charters with multiple locations.  As of December 31, 1996, the
Company had 14 separately chartered  subsidiary Banks.  That number was
subsequently reduced, on February 14, 1997, to 10 Banks, and on April 1, 1997,
the Company expects to have 7 subsidiary Banks.  The subsidiary Banks of the
Company in six locations maintain trust departments, but their services are more
broadly available and the Company may expand its trust activities in the future.
Trust services are made available to customers in several locations through
local trust officers or by appointment with members of the trust department.
Most of the Banks also sell annuities.  Federal bank regulation permits bank
holding companies to engage in other limited activities, such as the
distribution of certain types of securities, and future changes in such
regulation may further expand the types of activities in which the Company may
engage.  Although the Company intends to maintain its focus on the banking
business in its targeted market areas, the Company will consider other permitted
business activities as opportunities arise.

COMPETITION

       Commercial banking is highly competitive.  In the conduct of certain
aspects of their business, the Banks compete with other commercial banks,
savings and loan institutions, issuers of fixed income investments, finance
corporations, credit unions and money market funds, among other types of
institutions.  The Banks compete with these institutions in such areas as
obtaining new deposits, offering new types of services and setting loan rates
and interest rates on various types of deposits, as well as other aspects of the
banking business.  Management believes community residents and businesses prefer
to deal with local banks and the Banks have generally been


                                          8

<PAGE>

able to compete successfully in their respective communities because of the
Company's emphasis on local ownership and the autonomy of Bank management in
community relations.  At the same time, the Company provides the Banks with the
advantages of centralized sophisticated administration and the opportunity to
make larger loans and diversify their lending activity through Bank group
participations.  Further, because most of the Banks have a significant market
share in the communities they serve, the Company believes the Banks can, to a
degree, influence deposit and loan pricing in their markets and are subject to
less competition based on deposit and loan pricing than would be the case in
larger metropolitan markets with more competitors.  However, the Banks have
experienced increased price competition from credit unions in certain market
areas in recent periods.  Future changes in government regulation of banking,
particularly any future state legislation permitting interstate branching or
legislation in certain states to permit statewide branching, may increase
competition by both out-of-state and in-state banking organizations and by other
financial institutions.  See "Supervision and Regulation," below.  The Banks
compete with other financial institutions, including government lending
agencies, for high quality loans in the Banks' market areas and for purchases of
loan assets and investment assets.  While management believes the Banks will
continue to compete successfully in their communities, there is no assurance
that future competition will not adversely affect the Banks' earnings.

EMPLOYEES

       The Company had 1,680 employees at December 31, 1996, including 1,280
full-time employees and 400 part-time employees.  Of these individuals, 78 were
employed at the holding company level, 1,368 (including 1,038 full-time
employees) were employed at the Bank level, 158 were employed by CFSC and 76
were employed by CII and CFIA.

SUPERVISION AND REGULATION

       GENERAL.  In addition to a variety of generally applicable state and
federal laws governing businesses and employers, the Company and the Banks are
extensively regulated by federal and state laws applicable only to financial
institutions.  Virtually all aspects of the Company's operations are subject to
specific requirements or restrictions and general regulatory oversight from laws
regulating consumer finance transactions, such as Truth In Lending Act, Home
Mortgage Disclosure Act and Equal Credit Opportunity Act, to laws regulating
collections and confidentiality, such as Fair Debt Collections Practices Act,
Fair Credit Reporting Act and Right to Financial Privacy Act.  With few
exceptions, state and federal banking laws have as their principal objective
either the maintenance of the safety and soundness of the Federal Deposit
Insurance System or the protection of consumers or classes of consumers, rather
than the specific protection of security holders of the Company.

       With the enactment of the Financial Institutions Reform, Recovery and
Enforcement Act of 1989 ("FIRREA"), the FDIC Improvement Act of 1991 ("FDICIA")
and the Interstate Banking and Branching Efficiency Act of 1994 ("IBBEA"),
Congress enacted comprehensive legislation affecting the commercial banking and
thrift industries.  FIRREA, among other things, abolished the Federal Savings
and Loan Insurance Corporation and established two new insurance funds under the
jurisdiction of the FDIC:  the Bank Insurance Fund ("BIF"), which insures most
commercial banks, including the Banks, and the Savings Association Insurance
Fund, which insures most thrift institutions.  In addition to effecting
far-reaching restructuring of the financial industry, FIRREA provided a
phased-in increase in the rate of annual insurance assessments paid by insured
depository institutions.  FDICIA increased funding for the BIF and expanded
regulation of depository institutions and their affiliates, including parent
holding companies.  FDICIA further provided authority for special assessments
against insured deposits and for the development of a system of assessing
deposit insurance premiums based upon the institutions's risk.


                                          9

<PAGE>

       IBBEA generally liberalized multi-state expansion.  Effective September
29, 1995, IBBEA significantly eased restrictions on interstate acquisition of
banks by bank holding companies.  Beginning June 1, 1997, banks located in
different states may merge and operate the resulting institution as a single
charter with interstate branches.  However, the legislation includes special
"opt-out" and "opt-in" provisions that individuals may adopt prior to the
effective date of interstate branching.  IBBEA does NOT affect the branching
laws within a state, and imposes concentration limits limiting the resulting
organization's market share to 30% of state deposits and 10% of total United
States deposits.

       Congress continues to consider wide-ranging proposals for altering the
structure, regulation and competitive relationships of the nation's financial
institutions.  It cannot be predicted whether or in what form any of these
proposals will be adopted or the extent to which the business of the Company may
be affected thereby.

       BANK HOLDING COMPANY REGULATION.  The Company is a bank holding company
within the meaning of the Bank Holding Company Act of 1956, as amended (the "BHC
Act").  As a result, the Company's activities are subject to certain limitations
under the BHC Act, and transactions between the Company and the Banks and other
affiliates are subject to certain restrictions.  As a registered bank holding
company, the Company is required to file semiannual reports with the Federal
Reserve Board ("FRB") and such other information as the FRB may require, and is
subject to examination by the FRB.  The FRB has the authority to issue cease and
desist orders against the Company and its nonbank subsidiaries if the FRB
determines that actions by the Company are unsafe, unsound or violate the law.
Under certain circumstances, redemptions, dividends or distributions by the
Company with respect to its equity securities may be considered unsafe or
unsound practices.

       As a bank holding company, the acquisition of "control" of the Company
by an individual or a "company" is subject to the prior approval of the FRB.
The term "company" is broadly defined to include any corporation, partnership,
association or trust or similar organization, while the definition or control
for these purposes may be met by (i) the ownership, control or power to vote 10%
or more of the outstanding shares of any class of voting stock of the Company,
directly or indirectly, (ii) control over the election priority of Directors of
the Company, or (iii) the power to exercise, directly or indirectly, controlling
influence over the management or policies of the Company.

       Under the BHC Act, a bank holding company must obtain prior FRB approval
before it acquires direct or indirect ownership or control of any voting shares
of any bank or other bank holding company if, after such acquisition, it will
own or control directly or indirectly more than 5% of the voting stock of the
target, unless it already owns a majority of the voting stock of the target.  A
bank holding company also must obtain prior FRB approval before it acquires all
or substantially all of the assets of a bank or merges or consolidates with
another bank holding company.

       A bank holding company is, with limited exceptions, prohibited from
acquiring direct or indirect ownership or control of a company that is not a
bank or a bank holding company, and must engage in the business of banking or
managing or controlling banks or furnishing services to or performing services
for its subsidiary banks.  The FRB, by order or regulation, may authorize a bank
holding company to engage in or acquire stock in a company engaged in activities
so closely related to banking or managing or controlling banks as to be a proper
incident thereto.  Some of the activities the FRB has determined by regulation
to be incidental to the business of banking are: making and servicing loans or
certain types of leases, engaging in discount brokerage activities, performing
certain data processing services and providing insurance brokerage services
under certain conditions and subject to certain limitations.


                                          10

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       In reviewing any application or proposal by a bank holding company, the
FRB is required to consider the financial and managerial resources and future
prospects of the bank holding company and the banks concerned, the convenience
and needs of the community to be served, as well as the probable effect of the
transaction upon competition.  Recent decisions by the FRB under the BHC Act
have underscored the importance placed by the FRB upon the record of the
applicant and its subsidiary banks in meeting the credit needs of its community
in accordance with the Community Reinvestment Act of 1977.

       BANK REGULATION.  The Banks are subject to detailed federal and state
laws and regulations.  National bank subsidiaries of the Company are primarily
supervised by the Office of the Comptroller of the Currency (the "OCC"), a
bureau of the United States Department of Treasury.  The OCC regularly examines
national banks in such areas as reserves, loans, investments, trust services,
management practices, Community Reinvestment Act compliance and other aspects of
bank operations.  These examinations are designed for the protection of the
deposit insurance system and the enforcement of federal and state laws and
regulations, and not for the shareholders of the Company.  In addition to
undergoing these regular examinations, national banks must furnish reports
containing detailed and accurate financial statements and schedules to the OCC
quarterly.

       Bank subsidiaries of the Company that are chartered under state law are
regulated and supervised by the respective state's banking agency.  In addition,
state-chartered banks, as members of the FDIC, are regulated and supervised by
the FDIC.  Each of these agencies conducts regular examinations of each Bank,
generally on an alternate basis, reviewing the adequacy of the reserves, quality
of the loans and investments, propriety of management practices, compliance with
laws and regulations, including the Community Reinvestment Act, trust, and other
aspects of Bank operations.  These examinations are designed for the protection
of the deposit insurance system and the enforcement of federal and state laws
and regulations, and are not conducted for the benefit of the shareholders of
the Company.

       Federal and state banking laws and regulations govern, among other
things, the scope of a bank's business, investments a bank may make, reserves a
bank must maintain, loans a bank makes and collateral it takes, the activities
of a bank with respect to mergers and consolidations and the establishment of
branches.  The OCC, in the case of national banks, and the FDIC, in the case of
state-chartered, nonmember banks, are the respective primary regulatory
authorities under the Financial Institution Supervisory Act, and are thereby
provided authority under that Act to impose penalties, initiate civil and
administrative actions and take other steps intended to prevent a bank from
engaging in an unsafe or an unsound practice in the conduct of its business.  In
extreme cases, the FDIC has authority to revoke deposit insurance, and may
assess civil money penalties and impose cease and desist orders against the bank
and affiliated individuals, including the bank's attorneys and accountants.
Under FDICIA, federal banking authorities are also authorized to establish
safety and soundness standards for banks, thrifts and their parent holding
companies covering a wide range of operational and managerial matters, including
asset quality, earnings, stock valuation and employee compensation.

       Under current law, national and state bank subsidiaries of the Company
are subject to state law restrictions in branching, including restrictions on
the number, location and characteristics of branches.  The laws vary from
liberal branching states, like North Dakota and Wisconsin, which allow banks to
branch freely,  subject only to application and approval, to states like Iowa
and Nebraska, which severely restrict branching, although they allow banks to
combine and retain preexisting locations.

       In June 1993, the FDIC adopted a risk-based premium schedule that
increases the assessment rates for depository institutions.  Under the new
schedule, which took effect for the assessment period beginning January 1, 1994,
each financial institution is assigned to one of three capital groups: well
capitalized, adequately capitalized or undercapitalized, as defined in the
regulations implementing the prompt corrective action provisions


                                          11

<PAGE>

of the FDICIA; and further assigned to one of three subgroups within a capital
group, on the basis of supervisory evaluations by the institution's primary
federal and, if applicable, state supervisors and other information relevant to
the institution's financial condition and the risk posed to the applicable
insurance fund.  The actual assessment rate applicable to a particular
institution depends upon the risk assessment classification so assigned to the
institution by the FDIC.  Because the BIF has reached its required reserve level
of 1.25% of insured deposits, banks in the lowest risk classification pay no
deposit insurance premiums currently.  Each of the Banks currently qualifies for
the lowest level of deposit insurance.

EXECUTIVE OFFICERS

    The executive officers of the Company are as follows:

NAME                    AGE       POSITION

Donald R. Mengedoth     52        President, Chief Executive Officer and
                                  Chairman of the Board

Mark A. Anderson        39        Executive Vice President, Chief Financial
                                  Officer, Secretary and Treasurer

Ronald K. Strand        50        Executive Vice President - Banking Group

David E. Groshong       48        Executive Vice President  - Financial
                                  Services

Thomas E. Hansen        44        Senior Vice President and Central Region
                                  Manager

Bruce A. Heysse         45        Senior Vice President  - Acquisitions

Thomas A. Hilt          54        Senior Vice President - Operations and
                                  Administration

Gary A. Knutson         49        Senior Vice President and Western Region
                                  Manager

David A. Lee            53        Senior Vice President and Eastern Region
                                  Manager

Patricia J. Staples     41        Senior Vice President - Marketing

Harriette S. McCaul     46        Senior Vice President - Human Resources

    Donald R. Mengedoth has been President, Chief Executive Officer, Chairman
of the Board and a director of the Company since its organization in 1986.  He
was Senior Vice President of First Bank System, Inc. ("FBS") from 1982 to 1987
and has worked in the banking business since 1966, including management
positions in retail banking operations, human resources and commercial lending.
From 1984 to 1987, Mr. Mengedoth was Regional Managing Director of FBS.  From
1979 to 1982, Mr. Mengedoth was Vice President - Operations for FBS.  Prior to
that time, he was Senior Vice President of First Bank Milwaukee.

    Mark A. Anderson has been Executive Vice President, Chief Financial
Officer, Secretary and Treasurer of the Company since its organization in 1986.
He was Vice President and Regional Controller for FBS from


                                          12

<PAGE>

1984 to 1987.  From 1979 to 1984, he held various positions with FBS-affiliated
banks in the finance and credit analysis areas.  Mr. Anderson is a Chartered
Financial Analyst and a Certified Management Accountant.

    Ronald K. Strand has been Executive Vice President - Banking Group since
February 1993.  He was previously Senior Vice President and Regional Manager for
South Dakota and North Dakota for the Company from January 1991 to February
1993.  Previously, Mr. Strand had been Vice President and Regional Manager for
the Company and President, Chief Executive Officer and a director of the
Company's affiliate bank in Wahpeton, North Dakota since 1988.  Prior to his
affiliation with the Company, he served as President and Chief Executive Officer
of Norwest Bank of North Dakota, N.A., Wahpeton, from 1985 until 1988.  He was
employed by Norwest for a total of 15 years, having previously worked in Norwest
banks in Jamestown, North Dakota, and Moorhead, Minnesota.

    David E. Groshong has been Executive Vice President - Financial Services
since May 1996.  He was previously Chairman and Chief Executive Officer of the
Company's affiliate bank in Alliance, Nebraska from May 1995 to May 1996.
Previously, Mr. Groshong had been President and Chief Executive of the Company's
affiliate bank in Fergus Falls, Minnesota since 1992 and as Senior Vice
President and Senior Loan Officer of the Fargo Bank since 1985.  He was employed
by Norwest Bank of Minnesota, N.A. for a total of eight years and prior to that
worked in the consumer finance industry.

    Thomas E. Hansen has been Senior Vice President and Central Region Manager
since April 1993.  He also served as President, Chief Executive Officer and
director of the Company's affiliate bank in Fargo, North Dakota from April 1993
to December 1996.  Previously,  he was employed by Norwest Bank Fargo for 19
years, most recently as President.

    Bruce A. Heysse has been Senior Vice President  - Acquisitions since July
1996.  He was Senior Vice President and Integration Manager of the Company from
November 1995 to June 1996.  He was Vice President and Senior Credit Officer of
the Company from 1987 to November 1995.  He began his banking career at the
Company's affiliate bank in Wahpeton, North Dakota, and had a total of 11 years
of banking experience prior to joining the Company.

    Thomas A. Hilt has been Senior Vice President - Operations and
Administration of the Company since 1987 and President of Community First
Service Corporation, the Company's data processing subsidiary, since 1988.  He
was Vice President and Manager - Operations Support for the Regional Division of
FBS from 1984 to 1987.  Prior to 1984, he held various positions with FBS since
1967, including responsibility for systems development, programming, audit and
examination functions.

    Gary A. Knutson has been Senior Vice President and Western Region Manager
of the Company since September 1993.  He was President, Chief Executive Officer
and director of the Company's affiliate bank in Wahpeton, North Dakota from
January 1991 to September 1993.  He began his banking career at the Company's
affiliate bank in Lidgerwood, North Dakota, and had a total of 14 years of
banking experience prior to joining the Company.

    David A. Lee has been Senior Vice President and Eastern Region Manager of
the Company since January 1991.  He had been a Region Manager of the Company
since 1987.  He was President and Chief Executive Officer and a director of the
Company's affiliate bank in Little Falls from 1988 to January 1993.  Mr. Lee
held various positions with FBS from 1966 to 1982.


                                          13

<PAGE>

    Patricia J. Staples has been Senior Vice President - Marketing since July
1994.  Previously, Ms. Staples was employed as the public relations manager with
MeritCare Health System for 10 years.

    Harriette S. McCaul, Ph.D., has been Senior Vice President of Human
Resources since February 1997.  Previously, she was the Dean of the College of
Business Administration at North Dakota State University in Fargo, North Dakota.
She joined NDSU in 1983 and held various teaching and administrative positions
in the Business Department and human resources area.  Prior to that time, she
was an instructor at Moorhead State University, Moorhead, Minnesota, and the
director of faculty and staff benefits at the University of Kansas.

    ELECTION.  The Company's officers are elected by the Board of Directors.
The officers serve until their successors are elected or until their earlier
resignation, removal or death.

ITEM 2.  PROPERTIES

    In January 1996, the Company formed a new subsidiary, Community First
Properties, Inc. ("CFPI"), for the purpose of acquiring and owning the space
currently occupied by the Company.  CFPI owns all of the portions of the office
building not owned by the Company's Fargo Bank subsidiary at 520 Main Avenue,
Fargo, North Dakota.

    The Company maintains its offices at 520 Main Avenue, Fargo, North Dakota,
consisting of 12,564 square feet at an annual rental of $297,948, payable to its
subsidiary, CFPI.  The Company believes these facilities will be adequate for
the foreseeable future.  Each of the Banks owns its main office and those of its
branches, and these facilities range in size from approximately 1,200 to 36,000
square feet.  CFSC leases 11,089 square feet of office space in Fargo at an
annual rental of $120,108 through August 31, 1997.  CFSC will continue to lease
this space on a month-to-month basis until the completion of a building being
constructed by the Company, into which CFSC anticipates moving in the fourth
quarter of 1997.

ITEM 3.  LEGAL PROCEEDINGS

    From time to time, the Company and its subsidiaries are subject to various
legal actions and proceedings in the normal course of business, some of which
may involve substantial claims for compensatory damages.  In some cases, these
actions and proceedings relate in whole or in part to activities of banks prior
to their acquisition and may be covered by agreements of former owners of these
banks to indemnify the Company.  Although litigation is subject to many
uncertainties and the ultimate exposure with respect to current matters cannot
be ascertained, management does not believe that the final outcome will have a
material adverse effect on the financial condition of the Company.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

    None.


                                          14

<PAGE>

                                       PART II

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

    Information as to the principal market on which the Company's common stock
is traded, market price information for the common stock of the Company, the
approximate number of holders of record as of December 31, 1996, and the
Company's dividend policy is incorporated herein by reference from the inside
back cover of the 1996 Annual Report to Shareholders.

ITEM 6.  SELECTED FINANCIAL DATA

    Selected financial data for the five years ended December 31, 1996,
consisting of data captioned "Financial Highlights" on page 1 of the 1996 Annual
Report to Shareholders, "Consolidated Statement of Condition--Five-Year Summary"
on page 44 of the Annual Report and "Consolidated Statement of Income-Five Year
Summary" on page 45 of the Annual Report are incorporated herein by reference.

ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
         RESULTS OF OPERATIONS

         Management's Discussion and Analysis of Financial Condition and
Results of Operations on pages 15 through 26 of the 1996 Annual Report to
Shareholders is incorporated hereby by reference.

ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

    The Consolidated Statements of Financial Condition of the Company as of
December 31, 1996 and 1995, and the related Consolidated Statements of Income,
Shareholders' Equity and Cash Flows for each of the three years ended December
31, 1996, the Notes to the Consolidated Financial Statements and the Report of
Ernst & Young LLP, independent auditors, contained in the Company's 1996 Annual
Report to Shareholders on pages 27 through 43 are incorporated herein by
reference.

ITEM 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
         FINANCIAL DISCLOSURE

    None.


                                       PART III

ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

    The information set forth in the Company's 1997 Proxy Statement under the
caption "Election of Directors" is incorporated herein by reference.
Information regarding the executive officers of the Company is included under
separate caption in Part I of this Form 10-K.


                                          15

<PAGE>

ITEM 11. EXECUTIVE COMPENSATION

    The information set forth in the 1997 Proxy Statement under the caption
"Executive Compensation" is incorporated herein by reference, except that
information under the captions "Compensation Committee Report on Executive
Compensation" and "Comparative Stock Performance" is not so incorporated.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

    The information set forth in the 1997 Proxy Statement under the caption
"Security Ownership of Principal Shareholders and Management" is incorporated
herein by reference.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

    The information set forth in the 1997 Proxy Statement under the caption
"Certain Transactions" is incorporated herein by reference.


                                       PART IV

ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K

(a) DOCUMENTS FILED AS PART OF THIS FORM 10-K:

    1.   FINANCIAL STATEMENTS.  See Item 8, above.

    2.   FINANCIAL STATEMENT SCHEDULES.  All financial statement schedules are
         omitted as the required information is inapplicable or the information
         is presented in the financial statements or related notes.

    3.   PRO FORMA FINANCIAL INFORMATION.  None.

(b) REPORTS ON FORM 8-K.  None.

    On October 18, 1996, the Company filed a Form 8-K report describing under
    Item 5 the acquisition of Financial Bancorp, Inc. and certain recent
    litigation.

(c) EXHIBITS.


                                          16

<PAGE>

EXHIBIT
NUMBER   DESCRIPTION

    2.1  Agreement and Plan of Merger dated as of August 12, 1994, between
         the Registrant and Minowa Bancshares, Inc. (incorporated by
         reference to Exhibit 2.1 to the Registrant's Registration
         Statement on Form S-4 [File No. 33-84746], as declared effective
         by the Commission on January 23, 1995).

    2.2  Restated Agreement and Plan of Merger dated as of December 6,
         1994, among the Registrant, Colorado Acquisition Corporation and
         First Community Bankshares, Inc. (incorporated by reference to
         Exhibit 10.1 to the Form 8-K report of the Registrant dated
         January 20, 1995).

    2.3  Agreement and Plan of Merger dated as of November 28, 1994,
         between the Registrant and Abbott Bank Group, Inc. (incorporated
         by reference to Exhibit 10.2 to the Form 8-K report of the
         Registrant dated January 20, 1995).

    2.4  Master Agreement dated July 22, 1994, between the Registrant and
         Bank of Colorado Holding Company, including as Exhibit A the form
         of Purchase and Assumption Agreement executed by Colorado
         Community First State Bank of Steamboat Springs and Vail Bank
         (incorporated by reference to Exhibit 2.13 to the Registrant's
         Annual Report on Form 10-K for the year ended December 31, 1994
         [the "1994 Form 10-K"]).

    2.5  Stock Purchase Agreement dated as of June 7, 1995 by and among
         BNCCORP, Inc., Gregory Cleveland and Tracy Scott, and the
         Registrant relating to Farmers & Merchants Bank of Beach
         (incorporated by reference to Exhibit 2.12 to the Registrant's
         Annual Report on Form 10-K for the year ended December 31, 1995
         [the "1995 Form 10-K"]).

    2.6  Agreement and Plan of Merger dated as of March 8, 1996 among the
         Registrant, Trinidad Acquisition Corporation and Financial
         Bancorp, Inc. (the holding company for Trinidad National Bank)
         (incorporated by reference to Exhibit 2.1 to the Registrant's
         Registration Statement on Form S-4 [File No. 333- 6239], as
         declared effective by the Commission on  August 9, 1996.

    2.7  Agreement and Plan of Reorganization dated as of June 25, 1996
         between the Registrant and Mountain Parks Financial Corp.
         (incorporated by reference to the Appendix to the Registrant's
         Joint Proxy Statement with Mountain Parks Financial Corp.
         included in the Registration Statement on Form S-4 [File No.
         333-14439], as declared effective by the Commission on November
         7, 1996).

    2.8  Stock Purchase Agreement dated as of February 18, 1997 by and
         among the Registrant, KeyCorp and Key Bank of the Rocky
         Mountains, Inc. (the holding company for KeyBank National
         Association (Wyoming)).

    3.1  Restated Certificate of Incorporation of the Registrant, as 
         amended by a Certificate of Amendment filed with the Delaware
         Secretary of State on December 18, 1996.


                                          17

<PAGE>

EXHIBIT
NUMBER   DESCRIPTION 

    3.2  Bylaws of the Registrant (incorporated by reference to Exhibit
         3.2 to the Registrant's Registration Statement on Form S-1 [File
         No. 33-41246], as declared effective by the Commission on August
         13, 1991 [the "1991 S-1"]).

    4.1  Certificate of Designations, Preferences and Rights of 7%
         Cumulative Convertible Preferred Stock of the Registrant
         (incorporated by reference to Exhibit 4.1 to the Registrant's
         Registration Statement on Form S-3 [File No. 33-77398], as
         declared effective by the Securities and Exchange Commission on
         May 4, 1994 [the "1994 Form S-3"]).

    4.2  Deposit Agreement dated as of May 4,1994, by and among the
         Registrant, Norwest Bank Minnesota, National Association, as
         Depositary, and the Holders, from time to time, of the Depositary
         Receipts (incorporated by reference to Exhibit 4.2 to the 1994
         Form S-3).

    4.3  Form of Rights Agreement dated as of January 5, 1995, between the
         Registrant, and Norwest Bank Minnesota, National Association,
         which includes as Exhibit B thereto the form of Rights
         Certificate (incorporated by reference to Exhibit 1 to the Form
         8-A report dated January 6, 1995).

    10.1 1996 Annual Incentive Plan for Holding Company Management.* 

    10.2 Restated 1987 Stock Option Plan (incorporated by reference to Exhibit
         10.7 to the Registrant's Registration Statement on Form S-8 [File No.
         33-46744], as declared effective by the Commission on May 6, 1992).*

    10.3 Form of Tax Sharing Agreement between the Registrant and each of its
         subsidiary Banks (incorporated by reference to Exhibit 10.3 to the 
         Registrant's Annual Report on Form 10-K for the year ended December 31,
         1995 [the "1995 Form 10-K"]).

    10.4 Form of Service Agreement for Data Processing between Community
         First Service Corporation and each of the subsidiary Banks of the
         Registrant (incorporated by reference to Exhibit 10.4 to the 1995
         Form 10-K).

    10.5 Form of Bank Services Agreement between the Registrant and each of its
         subsidiary Banks (incorporated by reference to Exhibit 10.5 to the 1995
         Form 10-K).

    10.6 Form of Agency Agreement between the Registrant and each of its
         subsidiary Banks, and Assignment of Agency Agreement and Second
         Assignment of Agency Agreement, which assign the Registrant's
         interest in the Agency Agreement to Community First Financial,
         Inc. (relating to the Registrant's subsidiary Banks)
         (incorporated by reference to Exhibit 10.6 to the 1995 Form
         10-K).


                                          18

<PAGE>

EXHIBIT
NUMBER    DESCRIPTION 

    10.7  Real Property Lease dated May 1991 among Richard A. Hentges, HLS
          Associates and the Registrant relating to the Registrant's
          previous corporate offices (incorporated by reference to Exhibit
          10.24 to the 1991 S-1).

    10.8  Office Lease Agreement dated October 18, 1988, between Dacotah
          Prairie Associates and Community First Service Corporation, and
          addendum to Office Lease Agreement dated April 30, 1991
          (incorporated by reference to Exhibit 10.25 to the 1991 S-1).

    10.9  Lease Agreement dated November 8, 1988, between Winthrop
          Resources Corp. and Community First Service Corporation
          (incorporated by reference to Exhibit 10.26 to the 1991 S-1).

    10.10 Lease dated April 27, 1993, between Community First Properties,
          Inc. (formerly Fargo Tower Partners) and the Registrant
          (incorporated by reference to Exhibit 10.11 to the 1994 10-K).

    10.11 Letter Agreement dated May 11, 1995 by and between the Registrant
          and Norwest Bank Minnesota, N.A. (incorporated by reference to
          Exhibit 10.11 to the 1995 Form 10-K)

    10.12 Promissory Note dated December 21, 1995, issued to Norwest Bank
          Minnesota, National Association, in the principal amount of
          $26,000,000 (incorporated by reference to Exhibit  10.12 to the
          1995 Form 10-K).

    10.13 Letter Agreement dated May 11, 1995, by and between the
          Registrant and Harris Trust and Savings Bank regarding
          $10,000,000 Line of Credit (incorporated by reference to Exhibit
          10.13 to the 1995 Form 10-K).

    10.14 Form of Indemnification Agreement entered into by and between the
          Registrant and the Registrant's officers and directors
          (incorporated by reference to Exhibit 10.33 to the 1993 Form
          10-K).

    10.15 1996 Stock Option Plan, as approved by the Board of Directors on
          February 6, 1996(incorporated by reference to Exhibit 10.15 to the
          1995 Form 10-K).

    13.1  Annual Report to Shareholders. 

    21.1  Subsidiaries of the Registrant.

    23.1  Consent of Ernst & Young LLP.

-----------------
    *Executive compensation plans and arrangements.


                                          19

<PAGE>

                                      SIGNATURES

    Pursuant to the requirements of section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.

                                       COMMUNITY FIRST BANKSHARES, INC.
                                       ("Registrant")

Dated: March 19, 1997                  By/S/ DONALD R. MENGEDOTH
                                         -----------------------------------
                                         Donald R. Mengedoth
                                         President, Chief Executive
                                         Officer and Chairman of the
                                         Board of Directors

    Pursuant to the requirements of the Securities Exchange Act of 1934, this
Report has been signed by the following persons on behalf of the Registrant, in
the capacities and on the dates indicated.

SIGNATURE AND TITLE                              DATE


 /S/ DONALD R. MENGEDOTH                         March 19, 1997
---------------------------------------
Donald R. Mengedoth
President, Chief Executive Officer and
Chairman of the Board of Directors
(Principal Executive Officer)


 /S/ MARK A. ANDERSON                            March 19, 1997
---------------------------------------
Mark A. Anderson
Executive Vice President, Chief
Financial Officer, Secretary and
Treasurer (Principal Financial
and Accounting Officer)


 /S/ PATRICIA A. ADAM                            March 19, 1997
---------------------------------------
Patricia A. Adam, Director


 /S/ JAMES T. ANDERSON                           March 19, 1997
---------------------------------------
James T. Anderson, Director


 /S/ PATRICK E. BENEDICT                         March 19, 1997
---------------------------------------
Patrick E. Benedict, Director


                                          20


<PAGE>

SIGNATURE AND TITLE                              DATE
---------------------------------------

 /S/ PATRICK DELANEY                             March 19, 1997
---------------------------------------
Patrick Delaney, Director


 /S/ JOHN H. FLITTIE                             March 19, 1997
---------------------------------------
John H. Flittie, Director


 /S/ CARGILL MACMILLAN, JR.                      March 19, 1997
---------------------------------------
Cargill MacMillan, Jr., Director


 /S/ DEAN E. SMITH                               March 19, 1997
---------------------------------------
Dean E. Smith, Director


 /S/ THOMAS C. WOLD                              March 19, 1997
---------------------------------------
Thomas C. Wold, Director


 /S/ HARVEY L. WOLLMAN                           March 19, 1997
---------------------------------------
Harvey L. Wollman, Director


 /S/ DENNIS M. MATHISEN                          March 19, 1997
---------------------------------------
Dennis M. Mathisen, Director