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

                                   FORM 10-Q

(Mark One)

[X]  Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
     Act of 1934

     For the quarterly period ended March 31, 2001

[ ]  Transition Report Pursuant to Section 13 or 15(d) of the Exchange Act

     For the transition period from ______ to ______

                       Commission File Number: 0-22543

                       COMMUNITY FIRST BANKING COMPANY
------------------------------------------------------------------------------
            (Exact name of registrant as specified in its charter)

                 GEORGIA                              58-2309605
   ---------------------------------            ---------------------
   (State or Other Jurisdiction of               (I.R.S. Employer
   Incorporation or Organization)                Identification No.)

                                110 Dixie Street
                            Carrollton, Georgia 30117
                                 (770) 834-1071

            -------------------------------------------------------
          (Address of Principal Executive Offices and Telephone Number)

     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 the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest  practicable  date: As of May 1, 2001, there were
3,282,054  shares issued and 2,828,998  shares  outstanding of the  Registrant's
Common Stock, par value $.01 per share.

CONTENTS

PART I.  FINANCIAL INFORMATION
         ---------------------
Item 1.  Financial Statements

     Consolidated  Balance Sheets as of March 31, 2001  (unaudited) and December
          31, 2000

     Consolidated  Statements  of Earnings  for the Three Months Ended March 31,
          2001 and 2000 (unaudited)

     Consolidated Statements of Comprehensive  Income for the Three Months Ended
          March 31, 2001 and 2000 (unaudited)

     Consolidated  Statements of Cash Flows for the Three Months Ended March 31,
          2001 and 2000 (unaudited)

     Notes to Consolidated Financial Statements

Item 2.  Management's Discussion and Analysis of Financial Condition
         and Results of Operations

PART II. OTHER INFORMATION

Item 1.  Legal Proceedings

Item 2.  Changes in Securities

Item 3.  Defaults Upon Senior Securities

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

Item 5.  Other Information

Item 6.  Exhibits and Reports on Form 8-K

SIGNATURES


                             COMMUNITY FIRST BANKING COMPANY
                               Consolidated Balance Sheets
                                (In thousands of dollars)

                                                                 March 31,    December 31,
                                                                     2001          2000
                                                                 (unaudited)    (audited)
                                         Assets
Cash and due from banks ........................................      8,034       6,885
Interest-bearing deposits in financial institutions ............      1,768         533
Federal funds sold .............................................     14,274         200
                                                                    -------      ------
   Cash and cash equivalents ...................................     24,076       7,618

Securities available for sale ..................................     44,550      58,889
Securities held to maturity ....................................        164         167
Other investments ..............................................      2,315       3,112
Mortgage loans held for sale ...................................         56          57
Loans, net .....................................................    311,514     308,007
Premises and equipment net .....................................      8,084       8,004
Accrued interest receivable ....................................      3,136       3,537
Other real estate and repossessions ............................        633         474
Other assets ...................................................      5,116       4,641
                                                                    -------      ------
   Total assets ................................................    399,644     394,506
                                                                    =======     =======

                          Liabilities and Stockholders' Equity
Deposits:
  Demand .......................................................     15,160      14,508
  Interest-bearing demand ......................................     58,707      52,873
  Savings ......................................................     27,549      26,281
  Time .........................................................    150,831     146,841
  Time, over $100,000 ..........................................     64,862      71,728
                                                                    -------      ------
     Total deposits ............................................    317,109     312,231

Note payable and other borrowings ..............................     46,479      45,245
Federal funds purchased ........................................        136         903
Accrued interest payable and other liabilities .................      5,322       4,431
                                                                    -------      ------
     Total liabilities .........................................    369,046     362,810
                                                                    -------      ------
Stockholders' Equity:
 Common stock, $.01 par, 10,000,000 authorized, 3,282,054 issued         33          33
 Additional paid in capital ....................................     10,846      10,846
 Retained earnings .............................................     29,810      29,074
 Treasury stock at cost (444,596 shares) .......................     (9,215)     (6,666)
 Accumulated other comprehensive (loss) ........................       (876)     (1,591)
                                                                    -------      ------
     Total stockholders' equity ................................     30,598      31,696
                                                                    -------      ------
  Total liabilities and stockholders' equity ...................    399,644     394,506
                                                                    =======     =======
See Notes to Consolidated Financial Statements.

                           COMMUNITY FIRST BANKING COMPANY
                         Consolidated Statement of Earnings
                                     (Unaudited)
                              (In thousands of dollars)
                                                                    Three Months Ended
                                                                         March 31,
                                                                      2001      2000
                                                                      ----      ----
Interest income:
 Interest and fees on loans ......................................    7,612    6,856
 Interest-bearing deposits  and federal funds sold ...............      160       32
 Interest and dividends on investment securities:
   U.S. Govt. agency and mortgage-backed .........................      741    1,044
   State, county and municipals ..................................        1        1
   Other .........................................................       63       81
                                                                     ------   ------
     Total interest income .......................................    8,577    8,014
                                                                     ------   ------
Interest Expense:
 Interest on deposits:
   Demand ........................................................      333      298
   Savings .......................................................      134      150
   Time ..........................................................    3,344    2,665
                                                                     ------   ------
                                                                      3,811    3,113
Interest on note payable and other borrowings ....................      590      917
                                                                     ------   ------
          Total interest expense .................................    4,401    4,030
                                                                     ------   ------
           Net interest income ...................................    4,176    3,984
Provision for loan losses ........................................      212      234
                                                                     ------   ------
          Net interest income after provision for loan losses ....    3,964    3,750
                                                                     ------   ------
Noninterest income:
   Service charges on deposits ...................................      568      506
   Gain (loss) on calls and sales of securities available for sale       16       (7)
   Insurance commissions .........................................      179      212
   Miscellaneous .................................................      311      286
                                                                     ------   ------
          Total noninterest income ...............................    1,074      997
                                                                     ------   ------
Noninterest expenses:
   Salaries and employee benefits ................................    1,709    1,682
   Occupancy and equipment .......................................      312      325
   Deposit insurance premiums ....................................       15       15
   Other operating ...............................................      897      906
                                                                     ------   ------
         Total noninterest expense ...............................    2,933    2,928
                                                                     ------   ------
         Earnings before income taxes ............................    2,105    1,819
Income tax expense ...............................................      733      585
                                                                     ------   ------
               Net earnings before cumulative effect of change in
                accounting principle..............................    1,372    1,234
Cumulative effect of change in accounting principle
     net of tax of $42............................................      (68)     --
                                                                     ------   ------                                                                     ------   ------
               Net earnings ......................................    1,304    1,234
                                                                     ======   ======
Basic earnings per share..........................................     0.45     0.45
Diluted earnings per share........................................     0.44     0.42

See Notes to Consolidated Financial Statements.

                              COMMUNITY FIRST BANKING COMPANY
                      Consolidated Statements of Comprehensive Income
                           (Unaudited - in thousands of dollars)
                                                                                Three Months Ended
                                                                                      March 31,
                                                                                    2001      2000
                                                                                    ----      ----
Net earnings ..................................................................    1,304     1,234
                                                                                   -----     -----
Other  comprehensive  income,  net of  income  taxes:
 Unrealized  gains (losses) on securities available for sale ..................    1,146    (1,130)
  Income tax effect of gains (losses)..........................................      441      (429)
                                                                                   -----     -----
    Unrealized gains (losses) arising during the period, net of tax ...........      705      (701)
                                                                                   -----     -----
  Less: Reclassification adjustment for gains (losses) included in net earnings       16        (7)
   Income tax on reclassification on adjustments ..............................        6        (3)
                                                                                   -----     -----
    Reclassification adjustment for gains (losses)
      included in net earnings, net of tax                                            10        (4)
                                                                                   -----     -----
     Other comprehensive income (loss) ........................................      715      (697)
                                                                                   -----     -----
COMPREHENSIVE INCOME ..........................................................    2,019       537
                                                                                   =====     =====
See Notes to Consolidated Financial Statements.

                                  COMMUNITY FIRST BANKING COMPANY
                               Consolidated Statements of Cash Flows
                               (Unaudited - in thousands of dollars)
                                                                                        Three Months Ended
                                                                                             March 31,
                                                                                          2001       2000
                                                                                          ----       ----
Net earnings .......................................................................     1,304      1,234
Cumulative effect of change in accounting principle.................................        68        --
 Adjustments to reconcile net earnings to net cash provided by operating activities:
  Depreciation, amortization and accretion .........................................       227        204
  Provision for loan losses ........................................................       212        234
  Loss (gain) on calls and sales of securities available for sale ..................       (16)         7
  Change in:
    Mortgage loans held for sale ...................................................         1       (103)
    Accrued interest receivable ....................................................       401        178
    Other assets ...................................................................    (1,014)        (2)
    Accrued interest payable .......................................................      (155)         5
    Other liabilities ..............................................................     1,635        404
                                                                                       -------    -------
       Net cash provided by operating activities ...................................     2,663      2,161
                                                                                       -------    -------
Cash flows from investing activities:
  Proceeds from sales securities available for sale ................................    10,860         18
  Proceeds from calls and maturities of securities held to maturity ................         3          4
  Proceeds from calls and maturities of securities available for sale ..............     7,715      1,155
  Proceeds from sales of other investments .........................................       797        251
  Purchases of securities available for sale .......................................    (3,088)      --
  Net change in loans ..............................................................    (3,878)   (14,779)
  Proceeds from sale of real estate and repossessions ..............................      --          259
  Purchases of premises and equipment ..............................................      (253)       (25)
                                                                                       -------    -------
       Net cash provided by (used in) investing activities .........................    12,156    (13,117)
                                                                                       -------    -------
Cash flows from financing activities:
  Net change in deposits ...........................................................     4,878      9,402
  Payment of note payable and other borrowings .....................................       (66)    (1,841)
  Proceeds of note payable and other borrowings ....................................     1,300      5,000
  Federal funds purchased ..........................................................      (767)    (2,055)
  Treasury stock purchased .........................................................    (2,549)      (657)
  Cash dividend paid and declared ..................................................    (1,157)      (475)
                                                                                       -------    -------
      Net cash provided by financing activities ....................................     1,639      9,374
                                                                                       -------    -------
      Net change in cash and cash equivalents ......................................    16,458     (1,582)
Cash and cash equivalents at beginning of year .....................................     7,618     10,397
                                                                                       -------    -------
Cash and cash equivalents at quarter end ...........................................    24,076      8,815
                                                                                       =======    =======
See Notes to Consolidated Financial Statements.

                                                                                       Three Months Ended
                                                                                             March 31,
Supplemental disclosure of cash flow information:                                         2001       2000
                                                                                          ----       ----
  Cash paid for:                                                                          (in thousands)
     Interest.......................................................................     4,556      4,025
     Income taxes...................................................................       672        617

See Notes to Consolidated Financial Statements.

COMMUNITY FIRST BANKING COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 1.  NATURE OF BUSINESS

GENERAL

Community First Banking Company (the "Company") is the financial holding company
of its wholly  owned  subsidary,  Community  First Bank (the  "Bank"),  a state
commercial bank chartered in the state of Georgia.

NOTE 2.  BASIS OF PRESENTATION

The accompanying  unaudited  consolidated  financial  statements (except for the
statement of financial  condition on December 31, 2000,  which is audited)  have
been prepared in accordance with instructions to Form 10Q. Accordingly,  they do
not include all of the information and footnotes  required by generally accepted
accounting  principles  for  complete  financial  statements.  In the opinion of
management,  all  adjustments  (none of which were other than  normal  recurring
accruals)  necessary  for a fair  presentation  of the  financial  position  and
results  of  operations  for the  periods  presented  have  been  included.  The
accompanying  consolidated  financial  statements  include  the  accounts of the
Company and the Bank. All significant intercompany items have been eliminated.

The  results of  operations  for the three  months  ended March 31, 2001 are not
necessarily indicative of the results of operations that may be expected for the
year ended December 31, 2001. The accompanying consolidated financial statements
and related notes of Community  First Banking  Company and subsidiary  should be
read in  conjunction  with the audited  consolidated  financial  statements  and
related notes included in the Company's  Annual Report on Form 10-K for the year
ended December 31, 2000.

NOTE 3. CHANGE IN ACCOUNTING PRINCIPLE

In 1998, the Financial  Accounting Standards Board issued Statement of Financial
Accounting  Standards ("SFAS") No. 133,  "Accounting for Derivative  Instruments
and Hedging  Activities."  SFAS No. 133  establishes  accounting  and  reporting
standards  for hedging  derivatives  and for  derivative  instruments  including
derivative  instruments embedded in other contracts.  It requires the fair value
recognition of derivatives as assets or liabilities in the financial statements.
The accounting for the changes in the fair value of a derivative  depends on the
intended use of the  derivative  instrument at inception.  Changes in fair value
for instruments used as fair value hedges are recorded in earnings of the period
simultaneous with accounting for the fair value change of the item being hedged.
Changes in fair value for cash flow hedges are recorded in comprehensive  income
rather than earnings.  Changes in fair value for derivative instruments that are
not  intended  as a hedge are  recorded in earnings of the period of the change.
SFAS No. 133 is effective for all fiscal years beginning after June 15, 2000. At
the date of initial  application,  an entity may  transfer  any held to maturity
security into the available for sale or trading  categories without calling into
question the entity's intent to hold other securities to maturity in the future.
The Company  adopted SFAS No. 133 January 1, 2001 recording an unrealized  loss,
net of tax, of $68,000.

NOTE 4.  EARNINGS PER COMMON SHARE

Earnings  per common share  calculations  for the three month period ended March
31, 2001 and 2000 are  presented  based on the net earnings for the three months
divided by the  weighted  average  number of shares  outstanding,  or  2,914,594
shares (three  months ended March 31, 2001) and  2,760,125  shares (three months
ended March 31, 2000).  Diluted earnings per common share takes into account the
effect of dilution from the assumed  exercise of all  outstanding  stock options
and awards.  Diluted  earnings  per common share is  calculated  by dividing net
earnings by the average  number of common  shares  outstanding  adjusted for the
incremental  shares resulting from the exercise of dilutive stock options during
the period,  or 2,962,537 and 2,953,209  shares for the three months ended March
31, 2000 and 1999  respectively.  Earnings per share before cumulative effect of
change  in  accounting  principle  is not  presented  since  the  amount of that
cumulative effect had no impact on reported earnings per share.

NOTE 5. DIVIDENDS DECLARED

On March 15, 2001 the Board of Directors of the Company approved a cash dividend
of $.20 per share payable April 2, 2001 for  stockholders of record on March 16,
2001.

ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

COMPARISON OF FINANCIAL CONDITION AT MARCH 31, 2001 AND MARCH 31, 2000

On March 31,  2001 the Company had total  assets of $399.6  million  compared to
$394.5 million at December 31, 2000.  This increase in assets of $5.1 million or
1.3% is  primarily  due to a  increase  in cash  and cash  equivalents  of $16.5
million. This increase in cash and cash equivalents was offset by a reduction in
available for sale securities of $14.3 million  (resulting  primarily from sales
and calls of available for sale securities). Net loans increased $3.5 million in
the three months ended March 31, 2001.

Total deposit liabilities  increased $4.9 million or 1.6% from December 31, 2000
to March 31, 2001. Time deposits over $100,000  decreased $6.9 million primarily
because one brokered  certificate  of deposit  with a principal  balance of $8.7
million matured on March 23, 2001. All other deposit liabilities (excluding time
deposits  over  $100,000)  increased a total of $11.7  million  during the three
months ended March 31, 2001.

Note payable and other borrowings increased $1.2 million during the three months
ended March 31, 2001. This increase resulted from additional  borrowings of $1.3
million by the Company from another  financial  institution.  Proceeds from this
$1.3 million  borrowing were used to help fund the purchase of treasury stock by
the Company. Federal funds purchased by the Bank decreased $767,000 in the three
months ended March 31, 2001.  Accrued interest and other  liabilities  increased
$891,000 primarily from an adjustment to income tax payable and the deferred tax
asset accounts.

Retained  earnings  increased  $736,000  during the three months ended March 31,
2001. This increase  represents earnings of $1.3 million less dividends declared
of $568,000.  Treasury stock increased $2.5 million from the purchase of 107,331
shares  of the  Company's  stock  at an  average  price  of  $23.75  per  share.
Accumulated  other  comprehensive  losses  decreased  $715,000  during the three
months  ended March 31,  2001 as a result of the impact of a declining  interest
rate environment on our securities portfolio.

COMPARISON  OF RESULTS OF  OPERATIONS  FOR THE THREE MONTHS ENDED MARCH 31, 2001
AND 2000

GENERAL.  Net earnings totaled $1.3 million for the three months ended March 31,
2001,  an increase of $70,000 or 5.7% over the $1.2  million  earned in the same
three  months in 2000.  This  increase  is  primarily  the  result of higher net
interest income and higher  noninterest  income and was offset  partially by the
change in  accounting  principle  from  implementing  SFAS 133.  These and other
significant fluctuations are discussed below.

NET INTEREST  INCOME.  Net interest  income for the three months ended March 31,
2001 increased $192,000 or 4.8% compared to the same three month period in 2000.
Total interest income  increased  $563,000 or 7.0%, while total interest expense
increased $371,000 or 9.2%. The increase in interest income was caused by higher
average loan balances and higher interest rates on loans during the three months
ended  March 31,  2001  compared  to the same  three  months  in 2000.  The loan
portfolio mix continues to move away from  residential  mortgage  loans and into
higher yielding  commercial  loans. The average balance of loans by type for the
first quarters of 2001 and 2000 were as follows:

                                    Average Balances
                                   Three Months Ended
                                       March 31,
                                   2001        2000
                                   ----        ----
                                    (In thousands)
Mortgage loans                     74,869      84,588
Consumer loans                     54,193      55,990
Construction loans                 26,704      35,789
Commercial loans                  158,634     121,195
                                  -------    -------
                                  314,400     297,562
                                  =======    =======

Interest  and fee  income  on loans  increased  $756,000  or 11.0% in the  first
quarter of 2001 compared to the same quarter in 2000,  while the average balance
of loans increased $16.8 million or 5.7%.  Interest income on federal funds sold
and  interest-bearing  deposits  increased  $128,000  for the three months ended
March 31, 2001  compared to the same three  months of 2000 because of the higher
balances in federal  funds sold.  Interest  and  dividend  income on  investment
securities  decreased  $321,000  during the three  months  ended  March 31, 2001
compared to the same three months of 2000.

The net interest rate spread  measures the difference  between the average yield
on earning  assets and the  average  rate paid on  interest  bearing  sources of
funds.  The net interest  rate spread for the quarters  ended March 31, 2001 and
2000 was 4.29% and 4.36% respectively.

The following table presents average balances,  associated rates earned and paid
for all interest earning assets and interest bearing liabilities,  and variances
caused by volume and rates for the three  months  ended March 31, 2001 and March
31, 2000. (dollars in thousands)
                                                                                                    Three Months Ended
                                                                                                      March 31, 2001
                                                                                                   Compared to Same Three
                                      Quarter Ended                  Quarter Ended                    Months of 2000
                                      March 31, 2001                March 31, 2000              Increase (Decrease) Due To
                                      --------------                --------------              --------------------------
                                    Average   Interest Effective   Average  Interest  Effective    Volume   Rate      Total
                                    Balance    Yield     Rate      Balance    Yield     Rate     Variance  Variance  Variance
Loans, Net                          310,158     7,612     9.82%    294,153    6,856      9.32%      373       383      756
Interest-Bearing Deposits & FF Sold  11,894       160     5.38%      2,199       32      5.82%      141       (13)     128
Securities                           52,142       805     6.18%     63,767    1,126      7.06%     (205)     (116)    (321)
---------------------------------------------------------------------------------------------------------------------------
                                    374,194     8,577     9.17%    360,119    8,014      8.90%      309       254      563
---------------------------------------------------------------------------------------------------------------------------
Demand Deposits                      67,290       333     1.98%     67,487      298      1.77%       (1)       36       35
Savings                              26,429       134     2.03%     29,297      150      2.05%      (15)       (1)     (16)
Certificates of Deposit             220,274     3,344     6.07%    197,572    2,665      5.40%      306       373      679
Borrowings                           47,136       590     5.01%     60,701      917      6.04%     (205)     (122)    (327)
---------------------------------------------------------------------------------------------------------------------------
                                    361,129     4,401     4.87%    355,057    4,030      4.54%       86       285      371
---------------------------------------------------------------------------------------------------------------------------
Net interest income & spread                    4,176     4.29%               3,984      4.36%
Change                                                                                              223       (31)     192


PROVISION  FOR LOAN LOSSES.  The  provision for loan losses was $212,000 for the
three  months  ended March 31, 2001  compared to $234,000  for the three  months
ended March 31, 2000. At March 31, 2001,  the loan loss reserve was $3.9 million
or 1.2% of total loans  compared to $3.5 million or 1.1% of total loans at March
31, 2000.  Management deemed the allowance for loan losses adequate at March 31,
2001.

NONPERFORMING  ASSETS AND PAST DUE LOANS.  Nonperforming  assets,  comprised  of
non-accrual  loans (generally loans on which payments are more than 90 days past
due) and other real estate  owned  totaled $1.4 or 0.3% of total assets at March
31, 2001, and $931,000 or 0.2% of total assets at March 31, 2000.

NONINTEREST INCOME. Total noninterest income increased $77,000, or 7.7%, for the
three months ended March 31, 2001 versus the same three months in 2000.  Service
charges on  deposits  increased  $62,000 or 12.3% for the first  quarter of 2001
verses the same  period in 2000.  The Bank sold and had calls of  available  for
sale  securities  during the first  quarter  of 2001 for a net gain of  $16,000.
During the same period of 2000, the Company sold equity securities for a loss of
$7,000.  Income from  insurance  commissions  decreased  $33,000 or 15.6% in the
three  months  ended March 31, 2001  compared to the same three  months in 2000.
Miscellaneous   income  increased  $25,000  or  8.7%  primarily  from  the  gain
recognized  on loans  sold.  In  March  2001 a group of 1-4  family  fixed  rate
mortgage  loans with a principal  balance  totaling  $3.2 million was sold for a
gain of $47,000.

NONINTEREST  EXPENSES.  Total noninterest  expenses increased $5,000 or 0.2% for
the three  months  ended March 31, 2001 as compared to the same three  months in
2000.  This increase was  primarily  the result of higher  salaries and employee
benefits  (which  increased  $27,000)  resulting  from  annual  wage  increases.
Occupancy and equipment  costs  decreased  $13,000 and other  operating  expense
decreased $9,000.

INCOME  TAXES.  Income tax  expense  for the  quarter  ended  March 31, 2001 was
$733,000 or 34.8% of pretax  income and  $585,000 or 32.2% of pretax  income for
the same three month period in 2000. The difference  between these rates and the
statutory  rate is  primarily  the  result  of  interest  income  on tax  exempt
securities,  the dividend  received  deduction on  government  agency  preferred
stocks,  and the use of state tax credit carry  forwards to reduce the effective
state tax rate.

RECENT ACCOUNTING  PRONOUNCEMENTS.  In 1998, the Financial  Accounting Standards
Board  issued  Statement  of Financial  Accounting  Standards  ("SFAS") No. 133,
"Accounting  for Derivative  Instruments and Hedging  Activities."  SFAS No. 133
establishes  accounting and reporting  standards for hedging derivatives and for
derivative  instruments  including  derivative  instruments  embedded  in  other
contracts.  It requires the fair value  recognition  of derivatives as assets or
liabilities in the financial  statements.  The accounting for the changes in the
fair  value  of a  derivative  depends  on the  intended  use of the  derivative
instrument  at  inception.  Changes in fair value for  instruments  used as fair
value hedges are recorded in earnings of the period simultaneous with accounting
for the fair value  change of the item being  hedged.  Changes in fair value for
cash flow hedges are  recorded in  comprehensive  income  rather than  earnings.
Changes in fair value for  derivative  instruments  that are not  intended  as a
hedge are  recorded in  earnings  of the period of the  change.  SFAS No. 133 is
effective  for all fiscal years  beginning  after June 15, 2000.  At the date of
initial  application,  an entity may transfer any held to maturity security into
the available for sale or trading  categories  without calling into question the
entity's intent to hold other securities to maturity in the future.  The Company
adopted SFAS No. 133 January 1, 2001  recording an unrealized  loss, net of tax,
of $68,000.

LIQUIDITY AND CAPITAL RESOURCES. Operating activities provided net cash proceeds
of $2.7 million for the three months ended March 31, 2001.

Investing  activities  provided  $12.2  million in cash  during  this same three
months  primarily  because  of sales  and  calls of  securities  totaling  $18.6
million.

Financing activities provided $1.6 million of cash during the three months ended
March 31, 2001.  Increases in demand and savings deposits provided $7.8 million.
Time deposits  decreased $2.9 million  because of a maturing $8.7 million dollar
brokered  deposit which matured in March 2001. The Company borrowed $1.3 million
from another  financial  institution to partially  fund the  acquisition of $2.5
million of treasury stock.  See the  Consolidated  Statements of Cash Flow for a
complete analysis of sources and uses of cash.

The asset portion of the balance sheet provides liquidity primarily through loan
principal  repayments,  maturities  of  investment  securities  and, to a lesser
extent,  sales  of  securities.   Installment  loan  payments  are  becoming  an
increasingly  important  source of liquidity  for the Company as this  portfolio
continues to grow. Other  short-term  investments such as federal funds sold and
maturing  interest-bearing  deposits with other banks are additional  sources of
liquidity.

The liability  portion of the balance sheet provides  liquidity  through various
customers'  interest-bearing and  noninterest-bearing  deposit  accounts.  These
sources of liquidity are  short-term in nature and are used as necessary to fund
asset growth and meet short-term liquidity needs.  Liquidity is also provided by
advances  from the FHLB of Atlanta and federal  funds  accomodations  from other
lending institutions.

As of  March  31,  2001 the  Bank's  regulatory  capital  was in  excess  of all
applicable  regulatory  requirements.  At  March  31,  2001,  the  Bank's  total
risk-based  capital,  tier 1  risk-based  capital  and  tier 1  leverage  ratios
amounted  to  11.3%,  10.1%  and  7.8%,  respectively,  compared  to  regulatory
requirements of 8.0%, 4.0% and 4.0%, respectively.


PART II.  OTHER INFORMATION

      ITEM 1.  LEGAL PROCEEDINGS

            None.

      ITEM 2.  CHANGES IN SECURITIES

            None.

      ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

            None.

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

            None

      ITEM 5.  OTHER INFORMATION

            None

      ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

          (a)  Exhibits:

               1.  Agreement  and Plan of Merger by and  among  Community  First
               Banking   Company,   Community  First  Bank,  and  First  Deposit
               Bancshares, Inc. and Douglas Federal Bank dated as of January 18,
               2001 (incorporated by reference to the exhibit of the same number
               in the Company's  Resigration  Statement on Form S-4, Regis.  No.
               333-56830)

          (b)  Reports on Form 8-K during the quarter ended March 31, 2001

               On January 18, 2001 the  Company  and First  Deposit  Bancshares,
               Inc.  filed a current  report on Form 8-K under  Item 5 to report
               entering into an Agreement and Plan of Merger.


                                   SIGNATURES

Pursuant  to the  requirements  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 BANKING COMPANY


Date:       May 11, 2001           /s/ Gary D. Dorminey
                                  ----------------------
                                    Gary D. Dorminey
                                       President
                              (Principal Executive Officer)



Date:       May 11, 2001          /s/ C. Lynn Gable
                                 -------------------
                                  C. Lynn Gable
                              Chief Financial Officer
                           (Principal Financial Officer)
COMMUNITY FIRST BANKING CO 10-Q
