SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D. C. 20549


                                    FORM 10-Q


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



For the quarterly period ended March 31, 2001  Commission File number: 000-22054



                           COMMUNITY BANKSHARES, INC.
             (Exact Name of Registrant as Specified in its Charter)

        South Carolina                                   57-0966962
(State or Other Jurisdiction of             (IRS Employer Identification Number)
 Incorporation or Organization)


               791 Broughton St., Orangeburg, South Carolina 29115
                (Address of Principal Executive Office, Zip Code)


                                 (803) 535-1060
              (Registrant's telephone number, including area code)



         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 [ ]

         State the number of shares  outstanding of each of the issuer's classes
of common equity, as of the latest practicable date:  3,199,180 shares of common
stock outstanding as of May 1, 2001.



<PAGE>



                             10-Q TABLE OF CONTENTS

                        Part I-Financial Statements Page

Item 1       Financial Statements .......................................    3
Item 2       Management's Discussion and Analysis of
              Financial Condition and ...................................    9
             Results of Operations
Item 3       Quantitative and Qualitative Disclosure
              About Market Risk .........................................   15

                            Part II-Other Information

Item 6       Exhibits and Reports on Form 8-K ...........................   16



















                                       2
<PAGE>

Part I. Item 1. Financial Statements

            COMMUNITY BANKSHARES, INC. - CONSOLIDATED BALANCE SHEETS
                             $ amounts in thousands

<TABLE>
<CAPTION>
                                                                                                   UNAUDITED
                                                                                                    March 31,           December 31,
         ASSETS                                                                                        2001                 2000
         ------                                                                                        ----                 ----

Cash and due from other financial institutions:
<S>                                                                                                <C>                    <C>
     Non-interest bearing ............................................................             $   9,544              $  10,209
     Federal funds sold ..............................................................                15,406                  8,130
                                                                                                   ---------              ---------
         Total cash and cash equivalents .............................................                24,950                 18,339
Interest bearing deposits in other banks .............................................                 8,443                    594
Investment securities:
     Securities held to maturity .....................................................                 8,372                 12,371
     Securities available for sale ...................................................                30,805                 41,195
Loans held for resale ................................................................                   615                    343

Loans ................................................................................               201,644                195,077
     Less, allowance for loan losses .................................................                (2,556)                (2,424)
                                                                                                   ---------              ---------
         Net loans ...................................................................               199,088                192,653

Premises and equipment ...............................................................                 4,394                  4,411
Accrued interest  receivable .........................................................                 2,293                  2,330
Deferred income taxes ................................................................                   709                    795
Other assets .........................................................................                   274                    292
                                                                                                   ---------              ---------

         Total assets ................................................................             $ 279,943              $ 273,323
                                                                                                   =========              =========

         LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits:
     Non-interest bearing ............................................................             $  31,058              $  31,219
     Interest bearing ................................................................               197,164                187,592
                                                                                                   ---------              ---------
         Total deposits ..............................................................               228,222                218,811
Federal funds purchased and securities
     sold under agreements to repurchase .............................................                 5,252                  9,352
Federal Home Loan Bank advances ......................................................                20,350                 20,350
Other liabilities ....................................................................                 2,140                  1,671
                                                                                                   ---------              ---------
         Total liabilities ...........................................................               255,964                250,184
                                                                                                   ---------              ---------

Shareholders' equity:
     Common stock
         No par, authorized shares 12,000,000, issued and
         outstanding 3,199,180 in 2001 and 2000 ......................................                15,928                 15,928
     Retained earnings ...............................................................                 8,019                  7,342
     Accumulated other comprehensive income (loss) ...................................                    32                   (131)
                                                                                                   ---------              ---------
         Total shareholders' equity ..................................................                23,979                 23,139
                                                                                                   ---------              ---------

         Total liabilities and shareholders' equity ..................................             $ 279,943              $ 273,323
                                                                                                   =========              =========
</TABLE>


    THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS


                                       3
<PAGE>

              COMMUNITY BANKSHARES, INC. - CONSOLIDATED STATEMENTS
                       OF CHANGES IN SHAREHOLDERS' EQUITY
         for the three months ended March 31, 2001 and 2000 (Unaudited)

<TABLE>
<CAPTION>
                                                                                                         Accumulated
                                                                                                            Other          Total
                                                                  Common        Common      Retained    Comprehensive  Shareholders'
                                                                  Shares         Stock      Earnings    Income (Loss)      Equity
                                                                  ------         -----      --------    -------------      ------

<S>                                                              <C>           <C>          <C>             <C>            <C>
Balances at Dec. 31, 1999 ....................................   3,191,462     $ 14,207     $  6,549        $(511)         $ 20,245
Comprehensive income:
     Net income ..............................................                                   694                            694
     Other comprehensive income (loss) net of tax:
     Unrealized (loss) on securities .........................                                               (169)             (169)
Cash-in-lieu of shares in connection
with Jan. 31, 2000 stock dividend .............................        (137)
Market value of shares issued in five
percent stock dividend .......................................           -        1,709       (1,709)                             -
Costs of stock dividend ......................................                      (10)                                        (10)
Dividends paid ...............................................           -            -         (160)           -              (160)
                                                                 ---------     --------     --------        -----          --------
Balances at Mar. 31, 2000 ....................................   3,191,325     $ 15,906     $  5,374        $(680)         $ 20,600
                                                                 =========     ========     ========        =====          ========

Balances at Dec. 31, 2000 ....................................   3,199,180     $ 15,928     $  7,342        $(131)         $ 23,139
Comprehensive income:
     Net income ..............................................                                   901                            901
     Other comprehensive income (loss) net of tax:
     Unrealized gain on securities ...........................                                                163               163
Dividends paid ...............................................           -            -         (224)           -              (224)
                                                                 ---------     --------     --------        -----          --------
Balances at Mar. 31, 2001 ....................................   3,199,180     $ 15,928     $  8,019        $  32          $ 23,979
                                                                 =========     ========     ========        =====          ========

</TABLE>











THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS


                                       4
<PAGE>


         COMMUNITY BANKSHARES, INC. - CONSOLIDATED STATEMENTS OF INCOME
                             $ amounts in thousands

<TABLE>
<CAPTION>
                                                                                                      Three months ended March 31,
                                                                                                         2001               2000
                                                                                                      UNAUDITED           UNAUDITED
                                                                                                      ---------           ---------
Interest and dividend income:
<S>                                                                                                   <C>                 <C>
    Interest and fees on loans .............................................................          $    4,591          $    3,730
    Deposits with other financial institutions .............................................                  28                   4
    Investment securities:
      Interest - U. S. Treasury and
        U. S. Government Agencies ..........................................................                 725                 706
      Dividends ............................................................................                  36                  29
                                                                                                      ----------          ----------
         Total investment securities .......................................................                 761                 735
    Federal funds sold and securities
      purchased under agreements to resell .................................................                 170                 114
                                                                                                      ----------          ----------
         Total interest and dividend income ................................................               5,550               4,583
                                                                                                      ----------          ----------

Interest expense:
    Deposits:
      Certificates of deposit of $100,000 or more ..........................................                 648                 508
      Other ................................................................................               1,814               1,380
                                                                                                      ----------          ----------
         Total deposits ....................................................................               2,462               1,888
    Federal funds purchased and securities
      sold under agreements to repurchase ..................................................                  83                  24
    Federal Home Loan Bank advances ........................................................                 301                 253
                                                                                                      ----------          ----------
         Total interest expense ............................................................               2,846               2,165
                                                                                                      ----------          ----------
Net interest income ........................................................................               2,704               2,418
Provision for loan losses ..................................................................                 142                 180
                                                                                                      ----------          ----------
Net interest income after provision for loan losses ........................................               2,562               2,238
                                                                                                      ----------          ----------

Non-interest income:
    Service charges on deposit accounts ....................................................                 412                 347
    Other ..................................................................................                 139                  90
                                                                                                      ----------          ----------
         Total non-interest income .........................................................                 551                 437
                                                                                                      ----------          ----------

Non-interest expense:
    Salaries and employee benefits .........................................................               1,040                 940
    Premises and equipment .................................................................                 235                 224
    Other ..................................................................................                 437                 436
                                                                                                      ----------          ----------
         Total non-interest expense ........................................................               1,712               1,600
                                                                                                      ----------          ----------
Net income before taxes ....................................................................               1,401               1,075
Provision for income taxes .................................................................                 500                 381
                                                                                                      ----------          ----------

Net income .................................................................................          $      901          $      694
                                                                                                      ==========          ==========

Basic earnings per common share:
    Weighted average shares outstanding ....................................................           3,199,180           3,191,325
    Net income per common share ............................................................          $     0.28          $     0.22
Diluted earnings per common share:
    Weighted average shares outstanding ....................................................           3,217,067           3,212,902
    Net income per common share ............................................................          $     0.28          $     0.22
</TABLE>


THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS



                                       5
<PAGE>


       COMMUNITY BANKSHARES, INC. - CONSOLIDATED STATEMENTS OF CASH FLOWS
                             $ amounts in thousands


<TABLE>
<CAPTION>
                                                                                                       Three months ended March 31,
                                                                                                          2001             2000
                                                                                                       UNAUDITED         UNAUDITED
                                                                                                       ---------         ---------
Cash flows from operating activities:
<S>                                                                                                   <C>                  <C>
Net income ...............................................................................            $    901             $    694
Adjustments to reconcile net income
  to net cash provided (used) by operating activities
        Depreciation and amortization ....................................................                 109                  119
        Provision for loan losses ........................................................                 142                  180
        Accretion of discounts and amortization of premiums -
          investment securities - net ....................................................                  (8)                  63
        Proceeds from sale of real estate loans held for sale ............................               2,164                1,025
        Origination of real estate loans held for sale ...................................              (2,436)                (806)

Changes in operating assets and liabilities:
        (Increase) decrease in interest receivable .......................................                  37                 (317)
        (Increase) decrease in other assets ..............................................                 104                 (157)
        Increase in other liabilities ....................................................                 469                  334
                                                                                                      --------             --------
           Net cash provided by operating activities .....................................               1,482                1,135
                                                                                                      --------             --------

Cash flows from investing activities:
        Net increase in interest bearing deposits
           with other banks ..............................................................              (7,849)                (467)
        Purchases of held to maturity securities .........................................                   -                 (501)
        Proceeds from maturities of held to maturity securities ..........................               3,999                1,000
        Purchases of available for sale securities .......................................             (17,544)              (4,992)
        Proceeds from maturities of available for sale securities ........................              28,105                  353
        Net (increase) in loans to customers .............................................              (6,577)             (14,430)
        Purchase of premises and equipment ...............................................                 (92)                 (26)
                                                                                                      --------             --------
           Net cash provided by (used in) investing activities ...........................                  42              (19,063)
                                                                                                      --------             --------

Cash flows from financing activities:
        Net increase in demand, savings, & time deposits .................................               9,411               12,893
        Net decrease in federal funds purchased
         and securities sold under agreements to repurchase ..............................              (4,100)                (474)
        Increase in Federal Home Loan Bank advances ......................................                   -                1,200
        Cost of stock dividend ..........................................................                    -                  (10)
        Dividend payments ................................................................                (224)                (160)
                                                                                                      --------             --------
           Net cash provided by financing activities .....................................               5,087               13,449
                                                                                                      --------             --------

Net increase (decrease) in cash and cash equivalents .....................................               6,611               (4,479)
Cash and cash equivalents - beginning of period ..........................................              18,339               20,315
                                                                                                      --------             --------
Cash and cash equivalents - end of period ................................................            $ 24,950             $ 15,836
                                                                                                      ========             ========
</TABLE>


THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS


                                       6
<PAGE>


Summary of Significant Accounting Principles

         A summary of significant  accounting policies and the audited financial
statements for 2000 are included in Company's Annual Report on Form 10-K for the
year ended December 31, 2000.

Principles of Consolidation

         The consolidated financial statements include the accounts of Community
Bankshares, Inc. (CBI), the parent company, and Orangeburg National Bank, Sumter
National Bank and Florence  National  Bank, its wholly owned  subsidiaries.  All
significant   intercompany  items  have  been  eliminated  in  the  consolidated
statements.

Management Opinion

         The interim financial  statements in this report are unaudited.  In the
opinion of management, all the adjustments necessary to present a fair statement
of the results for the interim period have been made. Such  adjustments are of a
normal and recurring nature.

         The results of operations  for any interim  period are not  necessarily
indicative  of the  results to be expected  for an entire  year.  These  interim
financial  statements  should be read in conjunction  with the annual  financial
statements and notes thereto contained in the 2000 Annual Report on Form 10-K.

Changes in Comprehensive Income Components

         The Financial  Accounting Standards Board issued Statement of Financial
Accounting  Standards No. 130, "Reporting  Comprehensive  Income," effective for
fiscal years  beginning  after  December 15, 1997.  This  Statement  establishes
standards for reporting and display of  comprehensive  income and its components
in a full set of general-purpose financial statements. Disclosure as required by
the Statement is as follows:

<TABLE>
<CAPTION>
                                                                                Before-Tax         Tax (Expense)        Net-of-Tax
                                                                                  Amount             or Benefit           Amount
                                                                                  ------             ----------           ------
Unrealized gains (losses) on securities:
<S>                                                                           <C>                  <C>                  <C>
Unrealized holding gains (losses) arising during period .............         $(1,053,000)         $   373,000          $  (680,000)
Less: reclassification adjustment for gains
     (losses) realized in net income ................................                   0                    0                    0
                                                                              -----------          -----------          -----------
Net unrealized gains (losses) .......................................          (1,053,000)             373,000             (680,000)
                                                                              -----------          -----------          -----------
Other comprehensive (loss), March 31, 2000 ..........................         $(1,053,000)         $   373,000          $  (680,000)
                                                                              ===========          ===========          ===========

Unrealized gains (losses) on securities:
Unrealized holding gains (losses) arising during period .............         $    48,000          $   (16,000)         $    32,000
Less: reclassification adjustment for gains
     (losses) realized in net income ................................                   0                    0                    0
                                                                              -----------          -----------          -----------
Net unrealized gains (losses) .......................................              48,000              (16,000)              32,000
                                                                              -----------          -----------          -----------
Other comprehensive income, March 31, 2001 ..........................         $    48,000          $   (16,000)         $    32,000
                                                                              ===========          ===========          ===========
</TABLE>






                                       7
<PAGE>


Stock Dividend

         On January 31, 2000 CBI effected a five-  percent stock  dividend.  All
shares outstanding and per share data amounts have been  retroactively  restated
to reflect the dividend.


     COMMUNITY BANKSHARES, INC. - AVERAGE BALANCE SHEETS, YIELDS, AND RATES
                                ($ in thousands)

<TABLE>
<CAPTION>
                                                                               Quarter ended March 31,
                                                                               -----------------------
                                                                       2001                              2000
                                                                       ----                              ----
                                                                     Interest                            Interest
                                                       Average       Income/    Yields/      Average     Income/    Yields/
                 Assets                                Balance       Expense     Rates       Balance     Expense     Rates
                                                       -------       --------    ------      -------     --------    -----

<S>                                                   <C>              <C>        <C>      <C>             <C>         <C>
Interest bearing deposits .........................   $  1,830         $   28     6.12%    $    352        $    4      4.55%
Investment securities taxable .....................     46,655            754     6.46%      45,852           727      6.34%
Investment securities--tax exempt .................        793              7     5.35%         809             8      5.99%
Federal funds sold ................................     12,117            170     5.61%       7,810           114      5.84%
Loans receivable ..................................    199,047          4,591     9.23%     163,226         3,730      9.14%
                                                      --------         ------              --------        ------
Total interest earning assets .....................    260,442          5,550     8.52%     218,049         4,583      8.41%
Cash and due from banks ...........................      9,269                                8,268
Allowance for loan losses .........................     (2,487)                              (2,009)
Premises and equipment ............................      4,411                                4,576
Other assets ......................................      3,283                                2,973
                                                      --------                             --------

Total assets ......................................   $274,918                             $231,857
                                                      ========                             ========

  Liabilities and Shareholders' Equity
Interest bearing deposits
Savings ...........................................   $ 35,684         $  350     3.92%    $ 31,191        $  295      3.78%
Interest bearing transaction accounts .............     21,267             68     1.28%      19,166            75      1.57%
Time deposits .....................................    135,324          2,044     6.04%     112,652         1,518      5.39%
                                                      --------         ------              --------        ------
Total interest bearing deposits ...................    192,275          2,462     5.12%     163,009         1,888      4.63%
Short term borrowing ..............................      7,304             83     4.55%       2,709            24      3.54%
FHLB advances .....................................     20,350            301     5.92%      18,001           253      5.62%
                                                      --------         ------              --------        ------
Total interest bearing liabilities ................    219,929          2,846     5.18%     183,719         2,165      4.71%
Noninterest bearing demand deposits ...............     29,582                               26,532
Other liabilities .................................      1,717                                1,179
Shareholders' equity ..............................     23,690                               20,427
                                                      --------                             --------

Total liabilities and equity ......................   $274,918                             $231,857
                                                      ========                             ========

Interest rate spread ..............................                               3.34%                                3.70%

Net interest income and net yield on
earning assets ....................................                    $2,704     4.15%                    $2,418      4.44%
</TABLE>




                                       8
<PAGE>

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

Forward Looking Statements

         Statements   included  in  Management's   Discussion  and  Analysis  of
Financial Condition and Results of Operations 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.  The Corporation cautions readers that forward
looking  statements,   including  without  limitation,  those  relating  to  the
Corporation's future business prospects,  revenues, working capital,  liquidity,
capital  needs,  interest  costs,  and income,  are subject to certain risks and
uncertainties  that could cause actual results to differ  materially  from those
indicated in the forward looking  statements,  due to several  important factors
herein  identified,  among others,  and other risks and factors  identified from
time to time in the Corporation's reports filed with the Securities and Exchange
Commission.

RESULTS OF  OPERATIONS:  QUARTER  ENDED MARCH 31, 2001 COMPARED TO QUARTER ENDED
                         MARCH 31, 2000

Net Income

         For the  first  quarter  of 2001 CBI  earned a  consolidated  profit of
$901,000  compared to  $694,000  for the first  quarter of 2000,  an increase of
29.8% or  $207,000.  Basic and diluted  earnings per share were $.28 in the 2001
period compared to $.22 for the 2000 period.

         For the first  quarter  of 2001  Orangeburg  National  Bank  reported a
profit of  $609,000  compared  to  $541,000  for the first  quarter of 2000,  an
increase of 12.6% or $68,000.

         For the first quarter of 2001 Sumter National Bank reported a profit of
$250,000  compared to  $181,000  for the first  quarter of 2000,  an increase of
38.1% or $69,000. The Sumter bank began operation in June 1996.

         For the first quarter of 2001 Florence  National Bank reported a profit
of $47,000  compared  to net loss of $29,000 for the first  quarter of 2000,  an
improvement of $76,000. The Florence bank began operation in July 1998.

         As noted above, consolidated net income for the quarter ended March 31,
2001,  increased from the prior year by 29.8% or $207,000.  The major components
of this increase are discussed  below.  Net interest income before provision for
loan losses for the three  months ended March 31, 2001  increased to  $2,704,000
compared  to  $2,418,000  for the same  period in 2000,  an increase of 11.8% or
$286,000.  For the same  period,  the  provision  for loan  losses was  $142,000
compared  to  $180,000  for the 2000  period,  a decrease  of 21.1% or  $38,000.
Non-interest  income for the 2001 period increased to $551,000 from $437,000 for
the 2000 period, a 26.1% or $114,000 increase. Non-interest expense increased to
$1,712,000 from $1,600,000, a 7% or $112,000 increase.

Profitability

         One of the best ways to review  earnings  is through the ROA (return on
average assets) and the ROE (return on average equity).  Return on assets is the
income for the period divided by the average assets for the period,  annualized.
Return on equity is the income for the period  divided by the average equity for
the period, annualized.  Based on operating results for the quarters ended March
31, 2001 and 2000, the following table is presented.



                                       9
<PAGE>


Period ended March 31,                               2001               2000
                                                     ----               ----
                                                   (dollar amounts in thousands)
Average assets .......................            $274,918             $231,857
ROA ..................................                1.31%                1.20%
Average equity .......................            $ 23,690             $ 20,427
ROE ..................................               15.21%               13.59%
Net income ...........................            $    901             $    694

Net interest income

         Net interest income, the major component of CBI's income, is the amount
by which interest and fees on interest  earning assets exceeds the interest paid
on interest bearing deposits and other interest bearing funds.  During the first
quarter of 2001, net interest income after  provision for loan losses  increased
to  $2,562,000  from  $2,238,000,  a 14.5% or $324,000  increase  over the first
quarter of 2000. This  improvement  was the result of a $42 million  increase in
the  volume  of  earning  assets.  The  average  yield on these  earning  assets
increased  to 8.52% for the 2001  period  from 8.41% for the 2000  period.  This
increase  was achieved in a declining  interest  rate  environment.  The Federal
Reserve  cut the  discount  interest  rate a total of 150 basis  points in three
installments  during  the first  quarter of 2001.  A fourth  fifty  basis  point
reduction in interest rates  occurred in late April.  For CBI, the average prime
rate during the first  quarter of 2001 was 8.50%  compared to 8.75% for the same
period in 2000.  The full  impact  of the rate  cuts will not be felt  until the
second  quarter  of 2001 and  management  expects  the cuts will put  additional
pressure on net interest margins.

         For the first quarter of 2001 the cost of funds averaged 5.18% compared
to 4.71% for the first  quarter of 2000.  The  increase in the cost of the funds
more than  offset the  increased  yield on earning  assets.  The effect of these
changes was a net interest spread (yield on earning assets less cost of interest
bearing  liabilities)  of 3.35% for the first  quarter of 2001 compared to 3.69%
during the first quarter of 2000. CBI's net interest margin (net interest income
divided  by total  earning  assets)  was  4.15% for the  first  quarter  of 2001
compared to 4.44% for the first quarter of 2000.

Interest Income

         Elsewhere  in this report is a table  comparing  the average  balances,
yields,  and rates for the interest rate sensitive segments of the Corporation's
balance  sheets for the quarters  ended March 31, 2001 and 2000. A discussion of
that table follows.

         Total  interest  income  for the  first  quarter  2001  was  $5,550,000
compared  with  $4,583,000  for the same  quarter in 2000,  a 21.1% or  $967,000
increase.  The yield on earning assets for the 2001 quarter was 8.52%, increased
from 8.41% for the 2000 quarter.  Total average  interest earning assets for the
2001 quarter were $260,442,000 compared to $218,049,000 for the 2000 quarter, an
increase of 19.4% or $42,393,000.

         The  loan  portfolio  earned  $4,591,000  for the  first  quarter  2001
compared  with  $3,730,000  for the same  quarter of 2000,  a 23.1% or  $861,000
increase.  The yield on loans for the 2001  quarter  was 9.23%,  increased  from
9.14% for the 2000 quarter.  The average size of the loan portfolio for the 2001
quarter was  $199,047,000  compared to  $163,226,000  for the 2000  quarter,  an
increase of 21.9% or $35,821,000.

         The taxable investment  portfolio earned $754,000 for the first quarter
in 2001 compared with $727,000 for the 2000 quarter, a 3.7% or $27,000 increase.
The  yield was 6.46% for the 2001  quarter,  increased  from  6.34% for the 2000
quarter.  The average size of the portfolio for the 2001 quarter was $46,655,000
compared to $45,852,000 for the 2000 quarter, an increase of 1.8% or $803,000.

         The tax-exempt investment portfolio earned $7,000 for the first quarter
in 2001 compared with $8,000 for the 2000 quarter,  a 12.5% or $1,000  decrease.
The yield on the portfolio was 5.35%,  decreased from 5.99%. The average size of
the portfolio was $793,000 for the 2001 quarter compared to $809,000 in the 2000
quarter, a decrease of 19.8% or $16,000.



                                       10
<PAGE>

         Interest  bearing  deposits in other banks earned $28,000 for the first
quarter  2001  compared to $4,000 for the 2000  quarter,  an increase of 600% or
$24,000.  The yield on these deposits was 6.12% for the 2001 quarter,  increased
from 4.55% in the 2000  quarter.  CBI averaged  $1,830,000  in interest  bearing
balances in the first  quarter 2001  compared to $352,000 the 2000  quarter,  an
increase of 420% or  $1,478,000.  The fall in bond market  interest rates during
the first quarter of 2001 resulted in many investments in the banks'  investment
portfolios  being  called  prior to  maturity.  The cash  resulting  from  these
numerous  calls was  temporarily  placed in  interest  bearing  accounts,  which
explains the unusual increase in this category.

         Federal  funds sold earned  $170,000 the first quarter of 2001 compared
to $114,000 for the 2000 quarter, an increase of 49.1% or $56,000. The yield was
5.61% for the 2001 quarter,  decreased  from 5.84% for the 2000  quarter.  CBI's
average  volume in  federal  funds  sold was  $12,117,000  for the 2001  quarter
compared to $7,810,000 for the 2000 quarter, a 55.1% or $4,307,000 increase.  As
noted above, the increase in banks' liquidity was directly related to the influx
of cash from called investment securities.

Interest Expense

         Interest expense  increased to $2,846,000 for the first quarter of 2001
from $2,165,000 for the 2000 quarter, a 31.5% or $681,000 increase. For the same
periods, the volume of interest bearing liabilities was $219,929,000 compared to
$183,719,000,  a 19.7%  or  $36,210,000  increase.  The  average  rate  paid for
interest-bearing  liabilities was 5.18% for the 2001 quarter,  up from 4.71% for
the 2000 quarter.

         Savings accounts cost $350,000 in the first quarter in 2001 compared to
$295,000 in the first  quarter of 2000,  an 18.6% or $55,000  increase.  For the
same periods,  average savings  deposit  balances were  $35,684,000  compared to
$31,191,000,  an increase of 14.4% or $4,493,000. The average rate paid on these
funds increased to 3.92% from 3.78%.

         Interest  bearing  transaction  accounts  cost  $68,000  for the  first
quarter in 2001  compared  to $75,000 for the first  quarter of 2000,  a 9.3% or
$7,000  decline.  The volume of these  deposits  was  $21,267,000  for the first
quarter in 2001 compared to $19,166,000  for the first quarter of 2000, a 10.96%
or $2,101,000 increase.  The average rate paid on these funds decreased to 1.28%
from 1.57%.

         Time deposits cost $2,044,000 for the first quarter of 2001 compared to
$1,518,000 for the first quarter of 2000, an increase of 34.7% or $526,000.  The
volume was  $135,324,000  for the first quarter in 2001 compared to $112,652,000
for the first quarter of 2000, a 20.1% or $22,672,000 increase. The average rate
paid on these funds increased to 6.04% from 5.39%.

         Short-term   borrowings   consists  of  federal  funds   purchased  and
securities sold under  agreements to repurchase.  This is a relatively small and
volatile  part of the balance  sheet.  It cost $83,000 for the first  quarter in
2001  compared  to  $24,000  for the first  quarter  of 2000,  a 246% or $59,000
increase.  The volume of these funds was  $7,304,000  in the first  quarter 2001
compared  to  $2,709,000  in the first  quarter of 2000,  an increase of 170% or
$4,595,000. The average rate paid on these funds increased to 4.55% from 3.54%.

         Borrowings from the Federal Home Loan Bank of Atlanta cost $301,000 for
the first quarter in 2001 compared to $253,000 for the first quarter in 2000, an
increase of 19% or $48,000.  The advances averaged  $20,350,000  during the 2001
quarter compared to $18,001,000 for the prior year quarter,  a 13% or $2,349,000
increase. The average rate paid on these funds increased to 5.92% from 5.62%.

Non-Interest Income

         Non-interest  income for the first  quarter 2001 grew to $551,000  from
$437,000 in the first  quarter of 2000, a 26.1% or $114,000  increase.  This was
mostly the result of  increasing  volumes of  service  charges  associated  with
increased numbers of accounts and the resulting fee income.

Non-Interest Expense

         For the  first  quarter  of 2001  non-interest  expenses  increased  to
$1,712,000  from  $1,600,000  for the first  quarter of 2000,  a 7% or  $112,000
increase.  This  increase is related to higher  levels of business  activity and
included the following components:

         For the 2001  period,  personnel  costs  were  $1,040,000  compared  to
$940,000 for the 2000 period, an increase of 10.6% or $100,000;



                                       11
<PAGE>

         For the 2001 period,  premises  and  equipment  expense  were  $235,000
compared to $224,000 for the 2000 period, an increase of 4.9% or $11,000; and

         For the 2001 period, other costs were $437,000 compared to $436,000 for
the 2000 period, an increase of .2% or $1,000.

Income Taxes

         CBI  provided  $500,000  for federal and state  income taxes during the
first  quarter of 2001 compared to $381,000 for the same period in 2000, a 31.2%
or $119,000 increase. The average tax rate for the 2001 period was 35.7% and for
the 2000 period it was 35.4%.

CHANGES IN FINANCIAL POSITION

Investment portfolio

         The  investment  portfolio is comprised of held to maturity  securities
and available  for sale  securities.  CBI and its three banks  usually  purchase
short-term  issues  (ten  years or less) of U. S Treasury  and U. S.  Government
agency  securities  for  investment  purposes.  At  March  31,  2001 the held to
maturity  portfolio totaled  $8,372,000  compared to $12,371,000 at December 31,
2000, a decrease of 32.3% or  $3,999,000.  At March 31, 2001 the  available  for
sale portfolio totaled $30,805,000 compared to $41,195,000 at December 31, 2000,
a  decrease  of  25.2%  or  $10,390,000.  The  following  chart  summarizes  the
investment  portfolios  at March 31, 2001 and  December  31,  2000.  Most of the
decline  in  the  banks'  investment  portfolios  is due to  the  call  of  many
securities  during the first  quarter,  which  resulted from the decline in bond
market interest rates.

<TABLE>
<CAPTION>
                                                                                              March 31, 2001
                                                                             Held to maturity                 Available for sale
                                                                             ----------------                 ------------------
                                                                  Amortized cost         Fair value    Amortized cost    Fair value
                                                                  --------------         ----------    --------------    ----------
                                                                                         (dollars in thousands)
<S>                                                                    <C>               <C>               <C>             <C>
U. S. Government and federal agencies ......................           $ 8,372           $ 8,373           $28,166         $28,207
Tax exempt securities ......................................                 -                 -               612             617
Other equity securities ....................................                 -                 -             1,981           1,981
                                                                       -------           -------           -------         -------
Total ......................................................           $ 8,372           $ 8,373           $30,759         $30,805
                                                                       =======           =======           =======         =======

Unrealized gain ............................................           $     1                             $    46
                                                                       =======                             =======
</TABLE>

<TABLE>
<CAPTION>
                                                                                             December 31, 2000
                                                                             Held to maturity                 Available for sale
                                                                             ----------------                 ------------------
                                                                  Amortized cost         Fair value    Amortized cost    Fair value
                                                                  --------------         ----------    --------------    ----------
                                                                                         (dollars in thousands)

<S>                                                                 <C>                <C>               <C>                <C>
U. S. Government and federal agencies ....................          $ 12,371           $ 12,217          $ 38,599           $ 38,404
Tax exempt securities ....................................                 -                  -               814                810
Other equity securities ..................................                 -                  -             1,981              1,981
                                                                    --------           --------          --------           --------
Total ....................................................          $ 12,371           $ 12,217          $ 41,394           $ 41,195
                                                                    ========           ========          ========           ========

Unrealized (loss) ........................................          $   (154)                            $   (199)
                                                                    ========                             ========
</TABLE>




                                       12
<PAGE>

Loan portfolio

         The loan portfolio is primarily  consumer and small business  oriented.
At March 31, 2001 the loan portfolio was  $201,644,000  compared to $195,077,000
at December  31,  2000,  a 3.7% or  $7,182,000  increase.  The  following  chart
summarizes the loan portfolio at March 31, 2001 and December 31, 2000.

                                           Mar. 31, 2001      Dec. 31, 2000
                                           -------------      -------------
                                                 (dollars in thousands)
Real estate ..............................     $117,975           $113,543
Commercial ...............................       53,475             52,264
Loans to individuals .....................       30,194             29,270
                                               --------           --------
Total ....................................     $201,644           $195,077
                                               ========           ========


Past Due and Non-Performing Assets

         CBI closely  monitors past due loans and loans that are in  non-accrual
status  and  other  real  estate  owned.  Below  is a  summary  of past  due and
non-performing assets at March 31, 2001 and December 31, 2000.

                                              Mar. 31, 2001       Dec. 31, 2000
                                              -------------       -------------
                                                     (dollars in thousands)
Past due 90 days + accruing loans ............   $582                   $ 93
Non-accrual loans ............................   $239                   $238
Impaired loans (included in nonaccrual) ......   $239                   $238
Other real estate owned ......................   $  -                   $  -

         Management  considers the past due and non-accrual amounts at March 31,
2001 to be reasonable in relation to the size of the portfolio and manageable in
the normal course of business.  The increase in accruing loans over 90 days past
due is  associated  with a small number of loans and is not  indicative,  in the
opinion of management, of any trend.

         CBI had no restructured loans during any of the above listed periods.

Allowance for Loan Losses

         The Corporation  operates three independent  community banks in central
South  Carolina.  Under the  provisions  of the National  Bank Act each board of
directors is responsible  for  determining  the adequacy of its bank's loan loss
allowance.  In addition,  each bank is supervised and regularly  examined by the
Office of the Comptroller of the Currency of the U. S. Treasury Department. As a
normal part of a safety and soundness examination, the OCC examiners will assess
and comment on the adequacy of a national bank's allowance for loan losses.  The
allowance presented in this discussion is on an aggregated basis.

         The nature of community  banking is such that the loan  portfolios will
be predominantly comprised of small and medium size business and consumer loans.
As community banks, there is a natural geographic  concentration of loans within
the Banks' respective city or county.  Management at each bank monitors the loan
concentrations and loan portfolio quality on an ongoing basis including, but not
limited to: quarterly analysis of loan concentrations, monthly reporting of past
dues, non-accruals, and watch loans, and quarterly reporting of loan charge-offs
and recoveries.  These efforts focus on historical  experience and are bolstered
by quarterly analysis of local and state economic  conditions,  which is part of
the Banks' assessment of the adequacy of their allowances for loan losses.

         Management  reviews  its  allowance  for loan  losses  in  three  broad
categories:  commercial,  real estate and installment loans. However, management
does not  believe it would be useful to maintain a separate  allowance  for each
category. Instead management assigns an estimated risk percentage factor to each
category in the computation of the overall allowance. In general terms, the real
estate  portfolio is subject to the least risk,  followed by the commercial loan
portfolio,  followed by the installment loan portfolio.  The Banks' internal and
external loan review  programs  will from time to time  identify  loans that are
subject to specific  weaknesses  and such loans will be reviewed  for a specific
loan loss allowance.



                                       13
<PAGE>
         Based on the current levels of non-performing  and other problem loans,
management  believes that loan charge-offs in 2001 will at least approximate the
2000 levels as such loans progress  through the collection  process.  Management
believes that the allowance for loan losses,  as of March 31, 2001 is sufficient
to absorb the  expected  charge-offs  and provide  adequately  for the  inherent
losses that remain in the loan  portfolio.  Management  will continue to closely
monitor the levels of non-performing and potential problem loans and address the
weaknesses  in these  credits to enhance  the amount of ultimate  collection  or
recovery  of these  assets.  Management  considers  the  levels  and  trends  in
non-performing  and past due loans in determining how historical loan loss rates
are adjusted.

         The aggregate  allowance for loan losses of the banks and the aggregate
activity with respect to those allowances are summarized in the following table.

<TABLE>
<CAPTION>
                                                                    Quarter ended March          Year ended           Quarter ended
                                                                      March 31, 2001            Dec. 31, 2000         March 31, 2000
                                                                      --------------            -------------         --------------
<S>                                                                        <C>                     <C>                     <C>
Allowance at beginning of period ...........................               $ 2,424                 $ 1,936                 $ 1,936
Provision expense ..........................................                   142                     688                     180
Net charge offs ............................................                   (10)                   (200)                    (29)
                                                                           -------                 -------                 -------
Allowance at end of period .................................               $ 2,556                 $ 2,424                 $ 2,087
                                                                           =======                 =======                 =======
Allowance / outstanding loans ..............................                  1.26%                   1.24%                   1.22%
</TABLE>

Deposits

         Deposits were  $228,222,000  at March 31, 2001 compared to $218,811,000
at December 31, 2000, an increase of 4.3% or $9,411,000.

         Time deposits  greater than $100,000 were $46,672,000 at March 31, 2001
compared  to  $38,702,000  at  December  31,  2000,  an  increase  of  20.6%  or
$7,970,000.

Liquidity

         Liquidity is the ability to meet current and future obligations through
liquidation  or maturity of existing  assets or the  acquisition  of  additional
liabilities.  Adequate  liquidity  is  necessary  to meet  the  requirements  of
customers for loans and deposit  withdrawals in a timely and economical  manner.
The most manageable  sources of liquidity are composed of liabilities,  with the
primary  focus of  liquidity  management  being the ability to attract  deposits
within the Orangeburg National Bank, Sumter National Bank, and Florence National
Bank service areas.  Core deposits (total deposits less  certificates of deposit
of $100,000 or more) provide a relatively  stable funding base.  Certificates of
deposit of $100,000 or more are generally more sensitive to changes in rates, so
they must be  monitored  carefully.  Asset  liquidity  is  provided  by  several
sources,  including amounts due from banks,  federal funds sold, and investments
available for sale.

         CBI and its banks maintain an available for sale  investment and a held
to maturity  investment  portfolio.  While all these  investment  securities are
purchased with the intent to be held to maturity, such securities are marketable
and  occasional  sales may occur  prior to  maturity  as part of the  process of
asset/liability and liquidity management.  Such sales will generally be from the
available for sale  portfolio.  Management  deliberately  maintains a short-term
maturity  schedule for its  investments so that there is a continuing  stream of
maturing investments.  CBI intends to maintain a short-term investment portfolio
in order to continue to be able to supply  liquidity to its loan  portfolio  and
for customer withdrawals.

         CBI has substantially more liabilities  (mostly deposits,  which may be
withdrawn) which mature in the next 12 months than it has assets maturing in the
same period.  However, based on its historical  experience,  and that of similar
financial  institutions,  CBI believes that it is unlikely that so many deposits
would be withdrawn,  without being replaced by other deposits, that CBI would be
unable to meet its liquidity needs with the proceeds of maturing assets.

         CBI through its banking subsidiaries also maintains federal funds lines
of credit with correspondent  banks, and is able to borrow from the Federal Home
Loan Bank and from the Federal Reserve's discount window.

         CBI through  its banking  subsidiaries  has a  demonstrated  ability to
attract deposits from its markets.  Deposits have grown from $30 million in 1989
to over $228  million  in 2001.  This base of  deposits  is the major  source of
operating liquidity.

                                       14
<PAGE>

         CBI's long term liquidity  needs are expected to be primarily  affected
by the maturing of long-term  certificates of deposit. At March 31, 2001 CBI had
approximately  $23 million and $12 million in  certificates of deposit and other
interest bearing liabilities  maturing in one to five years and over five years,
respectively.  CBI's assets  maturing or repricing in the same periods were $107
million  and $39  million,  respectively.  CBI  expects to be able to manage its
current  balance sheet structure  without  experiencing  any material  liquidity
problems.

         In the opinion of  management,  CBI's current and  projected  liquidity
position is adequate.

Capital resources

         As  summarized  in the table  below,  CBI  maintains  a strong  capital
position.

                                            March 31, 2001         Dec. 31, 2000
                                            --------------         -------------
Tier 1 capital to average total assets ..       8.73%                 8.20%
Tier 1 capital to risk weighted assets ..      12.42%                11.10%
Total capital to risk weighted assets ...      13.66%                12.30%

         In the opinion of  management,  the  Company's  current  and  projected
capital positions are adequate.  In each case the ratios exceed by a substantial
margin  the  minimum   regulatory   requirement  for  being   considered   "well
capitalized".

Dividends

         CBI  declared  and paid a  quarterly  cash  dividend of seven cents per
share  during the first  quarter of 2001.  The total cost of this  dividend  was
$224,000.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

         Market risk is the risk of loss from adverse  changes in market  prices
and rates. The Corporation's  market risk arises  principally from interest rate
risk  inherent in its  lending,  deposit and  borrowing  activities.  Management
actively  monitors and manages its  interest  rate risk  exposure.  Although the
Corporation  manages other risks,  such as credit  quality and liquidity risk in
the normal course of business, management considers interest rate risk to be its
most  significant  market risk and this risk could  potentially have the largest
material  effect  on  the  Corporation's  financial  condition  and  results  of
operations.  Other types of market risks such as foreign currency  exchange risk
and commodity price risk do not arise in the normal course of community  banking
activities.

         Achieving  consistent growth in net interest income is the primary goal
of the  Corporation's  asset/liability  function.  The  Corporation  attempts to
control the mix and maturities of assets and  liabilities to achieve  consistent
growth in net interest  income despite  changes in market  interest  rates.  The
Corporation seeks to accomplish this goal while maintaining  adequate  liquidity
and capital. The Corporation's  asset/liability mix is sufficiently  balanced so
that the effect of interest rates moving in either  direction is not expected to
be significant over time.

         The Corporation's  Asset/Liability Committee uses a simulation model to
assist in  achieving  consistent  growth in net interest  income while  managing
interest rate risk.  The model takes into account  interest rate changes as well
as changes in the mix and volume of assets and liabilities.  The model simulates
the  Corporation's  balance sheet and income  statement under several  different
rate  scenarios.  The model's inputs (such as interest rates and levels of loans
and  deposits)  are  updated  on a  quarterly  basis in order to obtain the most
accurate  projection  possible.  The  projection  presents  information  over  a
twelve-month  period. It reports a base case in which interest rates remain flat
and reports  variations  that occur when rates increase and decrease 100 and 200
basis  points.  According to the model as of March 31, 2001 the  Corporation  is
positioned  so that net interest  income will  increase  $817,000 and net income
will  increase  $502,000  in the next twelve  months if interest  rates rise 300
basis  points.  Conversely,  net interest  income will decline  $544,000 and net
income will decline $335,000 in the next twelve months if interest rates decline
200 basis points.  Computation of prospective  effects of hypothetical  interest
rate changes are based on numerous  assumptions,  including  relative  levels of
market  interest  rates and loan  prepayment,  and should not be relied  upon as
indicative of actual results.  Further,  the computations do not contemplate any
actions  the  Corporation  could  undertake  in  response to changes in interest
rates.

         As of March 31, 2001 there was no significant  change from the interest
rate  sensitivity  analysis for the various changes in interest rates calculated
as of December 31, 2000. The foregoing disclosures related to the market risk of
the  Company  should be read in  connection  with  Management's  Discussion  and
Analysis of Financial  Position and Results of  Operations  included in the 2000
Annual Report on Form 10-K.



                                       15
<PAGE>

         Part II--Other Information

Item 6.  Exhibits and Reports on Form 8-K

(a) Exhibits

None


b) Reports on Form 8-K.  None.



























                                       16
<PAGE>


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.

                                                            DATED: May 11, 2001

COMMUNITY BANKSHARES, INC.

By:  s/  E. J. Ayers, Jr.,
    ----------------------------------------------
         E. J. Ayers, Jr.,
         Chief Executive Officer

By:  s/  William W. Traynham
    ----------------------------------------------
         William W. Traynham
         President and Chief Financial Officer
         (Principal Accounting Officer)































                                       17