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 June 30, 2005           Commission File No. 000-29640


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


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


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


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

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

         Yes  [X] No [ ]

         State the number of shares  outstanding of each of the issuer's classes
of common equity,  as of the latest  practicable  date:  Common Stock, no par or
stated value, 2,648,605 Shares Outstanding on July 31, 2005.

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



                                       1



                         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 ...........................  8-11

Item 3.   Controls and Procedures ........................................    11

PART II - OTHER INFORMATION

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

Item 6.   Exhibits .......................................................    12

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




                                       2



                         PART I - FINANCIAL INFORMATION

Item 1. - Financial Statements

COMMUNITY FIRST BANCORPORATION
Consolidated Balance Sheet


                                                                                                       (Unaudited)
                                                                                                         June 30,       December 31,
                                                                                                           2005             2004
                                                                                                           ----             ----
                                                                                                           (Dollars in thousands)
Assets
                                                                                                                          
     Cash and due from banks ...................................................................        $   5,705         $   5,652
     Interest bearing deposits due from banks ..................................................               79                36
     Federal funds sold ........................................................................           19,332            34,214
                                                                                                        ---------         ---------
         Cash and cash equivalents .............................................................           25,116            39,902
     Securities available-for-sale .............................................................           95,054            92,084
     Securities held-to-maturity (fair value $8,692 for 2005 and $9,560 for 2004) ..............            8,621             9,369
     Other investments .........................................................................            1,173             1,011
     Loans .....................................................................................          165,596           157,775
         Allowance for loan losses .............................................................           (2,337)           (2,240)
                                                                                                        ---------         ---------
            Loans - net ........................................................................          163,259           155,535
     Premises and equipment - net ..............................................................            4,675             4,413
     Accrued interest receivable ...............................................................            1,420             1,331
     Other assets ..............................................................................            1,845             1,703
                                                                                                        ---------         ---------

            Total assets .......................................................................        $ 301,163         $ 305,348
                                                                                                        =========         =========

Liabilities
     Deposits
         Noninterest bearing ...................................................................        $  34,089         $  34,903
         Interest bearing ......................................................................          230,462           233,245
                                                                                                        ---------         ---------
            Total deposits .....................................................................          264,551           268,148
     Accrued interest payable ..................................................................            1,561             1,222
     Short-term borrowings .....................................................................                -             2,500
     Long-term debt ............................................................................            7,500             7,500
     Other liabilities .........................................................................              136                41
                                                                                                        ---------         ---------
            Total liabilities ..................................................................          273,748           279,411
                                                                                                        ---------         ---------

Shareholders' equity
     Common stock - no par value; 10,000,000 shares authorized; issued and
         outstanding - 2,648,605 for 2005 and
         2,648,230 for 2004 ....................................................................           24,218            24,216
     Retained earnings .........................................................................            4,106             2,220
     Accumulated other comprehensive income (loss) .............................................             (909)             (499)
                                                                                                        ---------         ---------
            Total shareholders' equity .........................................................           27,415            25,937
                                                                                                        ---------         ---------

            Total liabilities and shareholders' equity .........................................        $ 301,163         $ 305,348
                                                                                                        =========         =========





See accompanying notes to unaudited consolidated financial statements.

                                       3


COMMUNITY FIRST BANCORPORATION
Consolidated Statement of Income


                                                                                                (Unaudited)
                                                                                            Period Ended June 30,
                                                                                            ---------------------
                                                                                Three Months                      Six Months
                                                                                ------------                      ----------
                                                                            2005            2004             2005              2004
                                                                            ----            ----             ----              ----
                                                                                     (Dollars in thousands, except per share)

Interest income
                                                                                                                     
     Loans, including fees .....................................           $2,829           $2,555           $5,555           $5,050
     Securities
       Taxable .................................................              876              788            1,819            1,502
       Tax-exempt ..............................................               32               19               52               37
     Other investments .........................................               11                6               20               13
     Federal funds sold ........................................              159               44              312              126
                                                                           ------           ------           ------           ------
         Total interest income .................................            3,907            3,412            7,758            6,728
                                                                           ------           ------           ------           ------

Interest expense
     Time deposits $100M and over ..............................              453              364              903              738
     Other deposits ............................................              984              857            1,911            1,732
     Short-term borrowings .....................................               14                2               33                2
     Long-term debt ............................................               61                7              124                7
                                                                           ------           ------           ------           ------
         Total interest expense ................................            1,512            1,230            2,971            2,479
                                                                           ------           ------           ------           ------

Net interest income ............................................            2,395            2,182            4,787            4,249
Provision for loan losses ......................................               75               55              215              135
                                                                           ------           ------           ------           ------
Net interest income after provision ............................            2,320            2,127            4,572            4,114
                                                                           ------           ------           ------           ------

Other income
     Service charges on deposit accounts .......................              407              394              758              762
     Credit life insurance commissions .........................                7               13               18               19
     Net gains on sales of available-for-sale
         securities ............................................                -                -                -                5
     Other income ..............................................              137              136              262              229
                                                                           ------           ------           ------           ------
         Total other income ....................................              551              543            1,038            1,015
                                                                           ------           ------           ------           ------

Other expenses
     Salaries and employee benefits ............................              630              701            1,341            1,381
     Net occupancy expense .....................................               61               69              125              140
     Furniture and equipment expense ...........................               89               91              177              155
     Other expense .............................................              572              498            1,032              860
                                                                           ------           ------           ------           ------
         Total other expenses ..................................            1,352            1,359            2,675            2,536
                                                                           ------           ------           ------           ------

Income before income taxes .....................................            1,519            1,311            2,935            2,593
Income tax expense .............................................              542              481            1,049              931
                                                                           ------           ------           ------           ------
Net income .....................................................           $  977           $  830           $1,886           $1,662
                                                                           ======           ======           ======           ======

Per share*
     Net income ................................................           $ 0.37           $ 0.31           $ 0.71           $ 0.63
     Net income, assuming dilution .............................             0.34             0.29             0.67             0.60

------
* Per share information has been  retroactively  adjusted to reflect a 10% stock
dividend effective November 30, 2004.


See accompanying notes to unaudited consolidated financial statements.

                                       4


COMMUNITY FIRST BANCORPORATION
Consolidated Statement of Changes in Shareholders' Equity



                                                                         (Unaudited)

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

                                                                                                                 
Balance, January 1, 2004 ...................................     2,362,057     $  19,620     $   3,117     $    (200)     $  22,537
                                                                                                                          ---------
Comprehensive income:
    Net income .............................................             -             -         1,662             -          1,662
                                                                                                                          ---------
    Unrealized holding gains and losses
      on available-for-sale securities arising
      during the period, net of income taxes of $750 .......             -             -             -        (1,339)        (1,339)
    Reclassification adjustment for losses (gains)
      realized in income, net of
      income taxes of $2 ...................................             -             -             -            (3)            (3)
                                                                                                                          ---------
    Total other comprehensive income (loss) ................             -             -             -             -         (1,342)
                                                                                                                          ---------
    Total comprehensive income .............................             -             -             -             -            320
                                                                                                                          ---------
Exercise of employee stock options .........................        45,226           264             -             -            264
                                                                 ---------     ---------     ---------     ---------      ---------
Balance, June 30, 2004 .....................................     2,407,283     $  19,884     $   4,779     $  (1,542)     $  23,121
                                                                 =========     =========     =========     =========      =========



Balance, January 1, 2005 ...................................     2,648,230     $  24,216     $   2,220     $    (499)     $  25,937
                                                                                                                          ---------

Comprehensive income:
    Net income .............................................             -             -         1,886             -          1,886
                                                                                                                          ---------
    Unrealized holding gains and losses
      on available-for-sale securities arising
      during the period, net of income taxes of $229 .......             -             -             -          (410)          (410)
                                                                                                                          ---------
    Total other comprehensive income (loss) ................             -             -             -             -           (410)
                                                                                                                          ---------
      Total comprehensive income ...........................             -             -             -             -          1,476
                                                                                                                          ---------
Exercise of employee stock options .........................           375             2             -             -              2
                                                                 ---------     ---------     ---------     ---------      ---------
Balance, June 30, 2005 .....................................     2,648,605     $  24,218     $   4,106     $    (909)     $  27,415
                                                                 =========     =========     =========     =========      =========










See accompanying notes to unaudited consolidated financial statements.




                                       5


COMMUNITY FIRST BANCORPORATION
Consolidated Statement of Cash Flows


                                                                                                                (Unaudited)
                                                                                                              Six Months Ended
                                                                                                                   June 30,
                                                                                                            2005              2004
                                                                                                            ----              ----
                                                                                                             (Dollars in thousands)
Operating activities
                                                                                                                          
     Net income ................................................................................         $  1,886          $  1,662
     Adjustments to reconcile net income to net
         cash provided by operating activities
            Provision for loan losses ..........................................................              215               135
            Depreciation .......................................................................              150               142
            Amortization of net loan (fees) and costs ..........................................              (43)              (39)
            Securities accretion and premium amortization ......................................               65               213
            Gain on sale of available-for-sale security ........................................                -                (5)
            (Increase) decrease in interest receivable .........................................              (89)               24
            Increase in interest payable .......................................................              339               106
            Decrease in prepaid expenses and other assets ......................................               62               248
            Increase in other accrued expenses .................................................               95               221
            Writedowns of other real estate owned ..............................................               25                90
                                                                                                         --------          --------
                Net cash provided by operating activities ......................................            2,705             2,797
                                                                                                         --------          --------

Investing activities
     Purchases of available-for-sale securities ................................................          (42,337)          (48,539)
     Purchases of held-to-maturity securities ..................................................                -            (9,949)
     Maturities, calls and paydowns of securities available-for-sale ...........................           38,659            22,509
     Maturities, calls and paydowns of securities held- to-maturity ............................              752                 -
     Proceeds of sale of available-for-sale security ...........................................                -             3,826
     Purchases of other investments ............................................................             (162)             (147)
     Net increase in loans made to customers ...................................................           (7,896)           (2,065)
     Purchases of premises and equipment .......................................................             (412)              (41)
     Proceeds of sale of real estate held for sale .............................................                -               212
                                                                                                         --------          --------
                Net cash used by investing activities ..........................................          (11,396)          (34,194)
                                                                                                         --------          --------

Financing activities
     Net (decrease) increase in demand deposits, interest
         bearing transaction accounts and savings accounts .....................................           (3,109)            2,053
     Net (decrease) increase in certificates of deposit and other
         time deposits .........................................................................             (488)            1,638
     Net (decrease) increase in short-term borrowings ..........................................           (2,500)            2,500
     Proceeds of issuing long-term debt ........................................................                -             7,500
     Exercise of employee stock options ........................................................                2               264
                                                                                                         --------          --------
                Net cash (used) provided by financing activities ...............................           (6,095)           13,955
                                                                                                         --------          --------
Decrease in cash and cash equivalents ..........................................................          (14,786)          (17,442)
Cash and cash equivalents, beginning ...........................................................           39,902            39,505
                                                                                                         --------          --------
Cash and cash equivalents, ending ..............................................................         $ 25,116          $ 22,063
                                                                                                         ========          ========

Supplemental Disclosure of Cash Flow Information Cash paid during the year for:
         Interest ..............................................................................         $  2,632          $  2,373
         Income taxes ..........................................................................              956               612
     Noncash investing and financing activities:
         Other comprehensive income (loss) .....................................................             (410)           (1,342)



See accompanying notes to unaudited consolidated financial statements.

                                       6


COMMUNITY FIRST BANCORPORATION
Notes to Unaudited Consolidated Financial Statements

Accounting  Policies - A summary of significant  accounting policies is included
in the Company's  Annual  Report on Form 10-KSB for the year ended  December 31,
2004 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 June 30, 2005,  there were $1,158,000 in nonaccrual
loans and no loans 90 days or more past due and still accruing.

Earnings Per Share - Basic earnings per common share is computed by dividing net
income  applicable  to common  shares by the weighted  average  number of common
shares  outstanding.   Diluted  earnings  per  share  is  computed  by  dividing
applicable  net  income  by  the  weighted   average  number  of  common  shares
outstanding and any dilutive potential common shares and dilutive stock options.
It is assumed that all dilutive  stock options are exercised at the beginning of
each period and that the proceeds are used to purchase  shares of the  Company's
common  stock at the  average  market  price  during the  period.  All per share
information  has been  retroactively  adjusted  to give  effect  to a 10%  stock
dividend  effective  November 30, 2004.  Net income per share and net income per
share, assuming dilution, were computed as follows:



                                                                                           (Unaudited)
                                                                                      Period Ended June 30,
                                                                                      ---------------------
                                                                         Three Months                          Six Months
                                                                         ------------                          ----------
                                                                    2005               2004               2005              2004
                                                                    ----               ----               ----              ----
                                                                           (Dollars in thousands, except per share amounts)

Net income per share, basic
                                                                                                                     
  Numerator - net income ...............................         $      977         $      830         $    1,886         $    1,662
                                                                 ==========         ==========         ==========         ==========
  Denominator
    Weighted average common shares
      issued and outstanding ...........................          2,648,404          2,638,314          2,648,346          2,631,844
                                                                 ==========         ==========         ==========         ==========

      Net income per share, basic ......................         $      .37         $      .31         $      .71         $      .63
                                                                 ==========         ==========         ==========         ==========

Net income per share, assuming dilution
  Numerator - net income ...............................         $      977         $      830         $    1,886         $    1,662
                                                                 ==========         ==========         ==========         ==========
  Denominator
    Weighted average common shares
      issued and outstanding ...........................          2,648,404          2,638,314          2,648,346          2,631,844
    Effect of dilutive stock options ...................            184,174            176,331            185,766            118,374
                                                                 ----------         ----------         ----------         ----------
               Total shares ............................          2,832,578          2,814,645          2,834,112          2,750,218
                                                                 ==========         ==========         ==========         ==========

      Net income per share, assuming dilution ..........         $      .34         $      .29         $      .67         $      .60
                                                                 ==========         ==========         ==========         ==========


Stock-Based  Compensation - As of June 30, 2005, the Company has two stock-based
compensation  plans that are accounted for under the recognition and measurement
principles of Accounting  Standards Board Opinion No. 25,  "Accounting for Stock
Issued to Employees," and related  interpretations.  No stock-based compensation
is  reflected  in net  income,  as all  options  granted  under  those plans had
exercise prices equal to the market value of the underlying  common stock on the
date of grant. The following table  illustrates the effect on net income and net
income  per  share  if the  Company  had  applied  the  fair  value  recognition
provisions of SFAS 123,  "Accounting for Stock Based  Compensation," as amended,
to stock-based  employee  compensation.  Per share amounts have been adjusted to
reflect the effect of a 10% stock dividend effective November 30, 2004.



                                       7




                                                                                                  (Unaudited)
                                                                                            Period Ended June 30,
                                                                                            ---------------------
                                                                               Three Months                       Six Months
                                                                               ------------                       ----------
                                                                           2005            2004              2005             2004
                                                                           ----            ----              ----             ----
                                                                                (Dollars in thousands, except per share amounts)

                                                                                                                     
Net income, as reported ........................................         $   977         $   830         $   1,886         $   1,662
Deduct:  Total stock-based employee
     compensation expense determined under
     fair value based method for all awards,
     net of any related tax effects ............................              56              50               111               100
                                                                         -------         -------         ---------         ---------
Pro forma net income ...........................................         $   921         $   780         $   1,775         $   1,562
                                                                         =======         =======         =========         =========

Net income per share, basic
     As reported ...............................................         $  0.37         $  0.31         $    0.71          $   0.63
     Pro forma .................................................            0.35            0.30              0.67              0.59
Net income per share, assuming dilution
     As reported ...............................................         $  0.34         $  0.29         $    0.67          $   0.60
     Pro forma .................................................            0.33            0.28              0.63              0.57


Item 2. - Management's Discussion and Analysis

Forward Looking Statements


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

Changes in Financial Condition

         For the six months ended June 30, 2005, total assets of Community First
Bancorporation  (the "Company")  decreased slightly from the amounts reported as
of December  31,  2004.  This  decrease  resulted  from a  reduction  in deposit
liabilities  of  $3,597,000  and  repayment of  short-term  borrowings  totaling
$2,500,000.  During the 2005 six month period, loans increased by $7,821,000 and
investment securities increased by $2,222,000. As a result of these changes, the
Company's cash and cash  equivalents at June 30, 2005 were $14,786,000 less than
the amount as of December 31, 2004.

Results of Operations

         The Company recorded  consolidated net income of $977,000,  or $.37 per
share, for the second quarter, and $1,886,000,  or $.71 per share, for the first
six months of 2005.  During 2004, the Company recorded net income of $830,000 or
$.31 per share for the second quarter,  and $1,662,000,  or $.63 per share,  for
the first six months. Net income per share, assuming dilution, for the three and
six month periods ended June 30, 2005 was $.34 and $.67,  respectively.  For the
comparable 2004 periods, net income per share,  assuming dilution,  was $.29 and
$.60,   respectively.   Net  income  per  share   amounts  for  2004  have  been
retroactively  adjusted to reflect a 10% stock dividend  effective  November 30,
2004.

                                       8


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,  short-term borrowings
and long-term debt), 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 second quarter of 2005, net interest income was $2,395,000,  an
increase of $213,000 or 9.8% over the comparable 2004 period.  For the first six
months of 2005, net interest income was  $4,787,000,  an increase of $538,000 or
12.7% over the first six months of 2004.  The  increases in net interest  income
for the 2005 six month period resulted  primarily from larger average volumes of
interest earning assets, especially in the higher-yielding investment securities
and loan categories. Also, the yield earned on average federal funds sold in the
2005 period was 2.59%,  an increase of 169 basis points over the yield earned in
the same  period of 2004.  Interest  expense for the 2005  six-month  period was
$2,971,000,  an increase  of  $492,000,  or 19.8%,  over the amount for the same
period of 2004. The average rate paid for all  interest-bearing  funding sources
was 33 basis points  higher in the 2005  six-month  period than in the same 2004
period.  The average amounts of  interest-bearing  funding sources  increased to
$246,938,000  for the 2005 period,  an increase of  $9,302,000 or 3.9% more than
the 2004 period.

         Average  interest  earning assets during the 2005 six-month period were
$299,744,000,  an increase of $18,091,000 or 6.4% over the comparable  period of
2004. Average loans for the 2005 six-month period were $160,931,000, an increase
of  $10,371,000  or 6.9% over the  average  amount for the same  period of 2004.
Average investment securities for the 2005 period were $113,430,000, an increase
of $11,542,000 or 11.3% over the average for the 2004 period. The average yields
on loans and investments increased by 20 and 28 basis points,  respectively,  in
the 2005 six month period compared with the same period of 2004.

         Average interest  bearing deposit  liabilities were not much changed in
the 2005 six month period as compared with the same period of 2004.  The average
interest  rate  associated  with such  deposits  increased by 28 basis points to
2.38% for the 2005 six-month  period.  In addition,  the average amounts of, and
interest  rate   associated   with,   non-deposit   borrowings   both  increased
significantly in the 2005 period. The average amounts of such liabilities in the
2005 period  exceeded the amounts in the 2004 period by $8,176,000,  an increase
of 963.2%.  The average rate of those  borrowings  was 3.51% for the 2005 period
and 2.34% for the 2004 period.

         The average  interest rate spread  (average  yield on interest  earning
assets less the average rate paid on interest bearing liabilities) for the first
six months of 2005 was 2.79%,  an increase of 7 basis  points from 2.72% for the
same period of 2004. Net yield on earning assets (net interest income divided by
average  interest earning assets) was 3.22% for the first six months of 2005, an
increase of 18 basis points from 3.04% for the first six months of 2004.

         Late in the second quarter of 2004, the Company borrowed  approximately
$10,000,000  from the FHLB and invested the proceeds in several  mortgage-backed
securities  issues  with a  combined  yield-to-maturity  of 5.10%.  The  average
expected life of these securities was approximately 6.0 years as of the purchase
date.  The borrowed  funds  consisted of a combination  of both  short-term  and
long-term  debt  with an  average  life of  approximately  4.6 years at the date
incurred and an average cost of 3.27%.

         Other  increases  in  interest  earning  assets  and  interest  bearing
liabilities  resulted from the Company's  continuing  strategies to increase its
market share in its local service areas in Anderson and Oconee Counties of South
Carolina.  Oconee  County  is served  from  three  offices  located  in  Seneca,
Westminster  and  Walhalla.  The  Westminster  office  was  opened in  temporary
quarters  during the second  quarter of 2003.  There are  currently  no plans to
construct another facility for this office.

Provision and Allowance for Loan Losses

         The  provision  for loan losses  charged to expense was $75,000 for the
second quarter of 2005 compared with $55,000 for the second quarter of 2004, and
totaled $215,000 for the first six months of 2005 compared with $135,000 for the
comparable  period of 2004. At June 30, 2005,  the allowance for loan losses was
1.41% of loans,  compared  with 1.42% of loans at December 31, 2004.  During the
2005 six-month period, net charge-offs  totaled $118,000,  compared with $92,000
charged  off during the same  period of 2004.  As of June 30,  2005,  there were
$1,158,000  in  nonaccrual  loans  and no loans  over 90 days past due and still
accruing  interest,  collectively  referred to as impaired loans.  The amount of
nonaccrual  loans at June 30, 2005 was $266,000 more than the amount at June 30,
2004 and $307,000  less than the amount of  nonaccrual  loans as of December 31,
2004.  The  majority  of the  nonaccrual  loans  are  secured  by  real  estate,
commercial  equipment  and  vehicles.  When the  estimated  realizable  value of


                                       9


collateral associated with nonperforming loans is believed to be insufficient to
satisfy the debt,  management  generally  charges  off the excess  amount of the
debt.

         As of June 30, 2005,  the  Company's  potential  problem  loans totaled
$3,451,000,  an  increase  of  $2,048,000  over the  amount of such  loans as of
December 31, 2004.  Potential  problem loans include loans,  other than impaired
loans,  that  management  has  identified  as having  possible  credit  problems
sufficient  to cast doubt upon the abilities of the borrowers to comply with the
current  repayment terms. The increase in potential problem loans since December
31, 2004 is believed to reflect  circumstances  unique to each of the  borrowers
and not to any systemic problems in the local market area. Real estate mortgages
or liens on equipment, inventories,  receivables, automobiles and other forms of
collateral have been obtained for the majority of loans  classified as potential
problem loans.

Noninterest Income

         Noninterest  income  totaled  $551,000 for the second  quarter of 2005,
compared with $543,000 for the 2004 quarter.  Noninterest  income was $1,038,000
for the first six  months of 2005 and  $1,015,000  for the same 2004  period.  A
significant  proportion  of the Company's  noninterest  income is derived from a
program  that  allows  customers  to avoid  payee-imposed  charges on checks and
similar items returned for insufficient  funds. A per item fee is charged by the
Company for this  increasingly  popular  service.  The Company realized a $5,000
gain on the sale of an available-for-sale security in the 2004 six-month period.
No such gains were recognized in the 2005 period.

Noninterest Expenses

         Noninterest expenses totaled $1,352,000 for the second quarter of 2005,
compared with $1,359,000 for the 2004 period, representing a decrease of $7,000.
Noninterest  expenses were  $2,675,000 for the first six months of 2005 compared
with $2,536,000 for the first half of 2004.  Salaries and employee  benefits for
the 2005  quarter  totaled  $630,000,  a decrease of $71,000 from the 2004 three
month period.  For the first six months of 2005,  salaries and employee benefits
totaled  $1,341,000  representing  a decrease of $40,000 from the same period of
2004.  This decrease  resulted from lower  employee  bonuses and profit  sharing
expenses in the 2005 six month period.

         Occupancy and furniture and equipment  expenses for the second  quarter
of 2005  totaled  $150,000,  representing  a decrease  of $10,000  from the same
period of 2004. Such expenses  increased $7,000 during the first half of 2005 as
compared to the same period of 2004.  Other  expenses  for the 2005  three-month
period  totaled  $572,000  and were  $74,000  more  than in  2004.  For the 2005
six-month period, other expenses increased by $172,000,  or 20.0%, over the 2004
amount.  These  expenses  increased  in  part  due  to  increased  expenses  for
professional  expenses  associated  with the  beginning of work on the Company's
internal  control  review  mandated by the  Sarbanes-Oxley  Act of 2002,  higher
amortization  expenses of core data processing software costs, costs incurred in
2005 for the Company's biennial strategic planning process, and higher costs for
corporate license fees and stock transfer services.

Liquidity

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

         As of June 30,  2005,  the ratio of loans to total  deposits was 62.6%,
compared with 58.8% as of December 31, 2004 and 57.5% as of June 30, 2004.

         Deposits as of June 30, 2005  decreased by  $3,597,000 or 1.3% from the
amount at December 31, 2004 and were $4,309,000 or 1.7% greater than their level
of June 30, 2004.  Typically,  deposit totals as of December 31 are  temporarily
increased because of year-end property tax receipts deposited in the accounts of
Oconee  County,  South  Carolina.   Those  deposits  accounts  are  subsequently
redistributed  to other entities,  including many that maintain deposit accounts
with other financial institutions.

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



                                       10


Capital Resources

         The  Company's  shareholders'  equity  increased  by  $1,478,000  since
December  31, 2004 as the result of net income of  $1,886,000  for the first six
months of 2005,  $2,000 added from the exercise of stock options,  less $410,000
in other  comprehensive  income,  consisting of unrealized losses arising during
the  period  on  available-for-sale   securities.   Such  unrealized  losses  on
available-for-sale  securities are not considered to be other than temporary, as
the Company has the ability to hold and generally does not sell such investments
prior to maturity.

         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 June 30,  2005 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 .............    15.7%        16.9%        9.3%
Community First Bank .......................    15.1%        16.3%        9.0%
Minimum "well-capitalized" requirement .....     6.0%        10.0%        6.0%
Minimum requirement ........................     4.0%         8.0%        4.0%


Off Balance Sheet Arrangements

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


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

                                               June 30, 2005
                                               -------------
                                          (Dollars in thousands)
Loan commitments ..............................   $ 17,929
Standby letters of credit .....................        889



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.
The Bank has  contracted for the  construction  of a new  headquarters  building
which is to be located in Seneca, South Carolina. Cost of this structure,  which
will house an additional  banking office,  the mortgage  lending staff,  and the
Company's  executive  officers,  is  expected  to  approximate  $1,700,000  with
occupancy anticipated in the second quarter of 2006.

Neither  the  Company  nor the  Bank is  involved  in  other  off-balance  sheet
contractual  relationships or transactions  that could result in liquidity needs
or other commitments or significantly impact earnings.

                                       11


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  such  controls  and
procedures, as of the end of the period covered by this report, were effective.

There  has been no change  in the  Company's  internal  control  over  financial
reporting during the most recent fiscal quarter that has materially affected, or
is reasonably likely to materially  affect,  the Company's internal control over
financial reporting.


                           PART II - OTHER INFORMATION

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

         On  Tuesday,  April 26,  2005,  the  shareholders  of  Community  First
Bancorporation held their regular annual meeting. At the meeting, one matter was
submitted to a vote with results as follows:

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

                                                          SHARES VOTED
                                                          ------------
                                                     AUTHORITY        BROKER
         DIRECTORS                       FOR         WITHHELD        NON-VOTES
         ---------                       ---         --------        ---------

         James E. McCoy               1,621,464            0          468,968
         James E. Turner              1,621,464            0          468,968
         Charles L. Winchester        1,621,464            0          468,968


         The following directors continue to serve until the expiration of their
terms at the  annual  meetings  to be held in the years  indicated  and were not
voted on at the 2005 annual meeting:  Larry S. Bowman,  M.D. - 2006;  William M.
Brown - 2006;  John R.  Hamrick - 2006 and  Frederick D.  Shepherd,  Jr. - 2006;
Robert H Edwards - 2007, Blake L. Griffith - 2007, Gary V. Thrift - 2007.


Item 6. - Exhibits

(a) Exhibits.  10.  Construction  Contract,  dated April 27,  2005,  between the
                    Company and Trehel Corporation (incorporated by reference to
                    Form 8-K filed August 12, 2005)

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

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





                                       12



SIGNATURE

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


                                 COMMUNITY FIRST BANCORPORATION

August 15, 2005                   /s/ Frederick D. Shepherd, Jr.
---------------                   ----------------------------------------------
     Date                         Frederick D. Shepherd, Jr., Chief Executive
                                  Officer and Chief Financial Officer


































                                       13



                                  EXHIBIT INDEX

                    10.  Construction  Contract,  dated April 27, 2005,  between
                         the Company  and Trehel  Corporation  (incorporated  by
                         reference to Form 8-K filed August 12, 2005)

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

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


















                                       14