SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D. C. 20549


                                   FORM 10-QSB


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



For the quarterly period ended September 30, 1996        File number:  000-22054



                           COMMUNITY BANKSHARES, INC.
              (Exact Name of Small Business Issuer in its Charter)

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

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


                                 (803) 535-1060
                           (Issuer's telephone number)



          Check  whether  the issuer (1) has filed all  reports  required  to be
filed by Section 13 or 15(d) of the  Securities  Exchange Act of 1934 during the
past 12 months (or for such shorter  period that the  Registrant was required to
file such reports), and (2) has been subject to such filing requirements for the
past 90 days.

                                  Yes [X] No [ ]
 
         State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practicable date:  1,313,238 shares of common
stock outstanding as of September 30, 1996.

         Transitional Small Business Disclosure Format (check one):

                                 Yes [ ] No [X]






<PAGE>








                                        10-QSB TABLE OF CONTENTS

                                      Part I-Financial Statements         Page

      Item 1       Financial Statements                                     2
      Item 2       Management's Discussion and Analysis                     9


                                       Part II-Other Information

      Item 6       Exhibits and Reports on Form 8-K                        20



<PAGE>
                    COMMUNITY BANKSHARES, INC. BALANCE SHEETS
<TABLE>
<CAPTION>

                                                                                September 30,
                                                                                     1996                 December 31,
        Assets                                                                    UNAUDITED                   1995
                                                                                  ---------                   ----
Cash and due from other financial institutions:
<S>                                                                              <C>                     <C>       
     Non-interest bearing                                                        $  4,662,000            $  3,025,000
     Federal funds sold                                                             4,005,000               1,510,000
                                                                                 ------------            ------------
         Total cash and cash equivalents                                            8,667,000               4,535,000
Interest bearing deposits in other banks                                              546,000                 320,000
Investment securities:
     Securities held to maturity                                                   17,865,000              15,610,000
     Securities available for sale                                                 11,316,000               9,059,000
     Loans held for resale                                                             60,000                       -

Loans                                                                              62,008,000              52,323,000
     Less, allowance for loan losses                                                 (800,000)               (706,000)
                                                                                 ------------            ------------
         Net loans                                                                 61,208,000              51,617,000
                                                                                 ------------            ------------

Premises and equipment                                                              2,694,000               1,708,000
Accrued interest  receivable                                                          884,000                 716,000
Deferred income taxes                                                                 203,000                 181,000
Other assets                                                                          199,000                 151,000
                                                                                 ------------            ------------
         Total assets                                                            $103,642,000            $ 83,897,000
                                                                                 ============            ============

         Liabilities And Shareholders' Equity
Deposits:
     Non-interest bearing                                                        $ 11,094,000            $  9,095,000
     Interest bearing                                                              76,299,000              63,455,000
                                                                                 ------------            ------------
         Total deposits                                                            87,393,000              72,550,000
  Federal funds purchased and securities
     sold under agreements to repurchase                                            2,815,000               2,570,000
Notes payable                                                                               -                 240,000
Federal Home Loan Bank advances                                                     1,130,000                 700,000
Other liabilities                                                                     507,000                 491,000
                                                                                 ------------            ------------
         Total liabilities                                                         91,845,000              76,551,000
                                                                                 ------------            ------------

    Shareholders' equity:
     Common stock                                                                   9,073,000               4,617,000
     Common stock subscribed                                                                -                  98,000
     Retained earnings                                                              2,794,000               2,607,000
     Unrealized gain (loss) on securities available for sale, net of tax              (70,000)                 24,000
                                                                                 ------------            ------------
         Total shareholders' equity                                                11,797,000               7,346,000
                                                                                 ------------            ------------
         Total liabilities and shareholders' equity                              $103,642,000            $ 83,897,000
                                                                                 ============            ============
</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS


                                       2
<PAGE>

                  COMMUNITY BANKSHARES, INC. INCOME STATEMENTS
<TABLE>
<CAPTION>

                                                                       For The Nine Month Period Ended September 30,
                                                                                 1996                      1995
                                                                               UNAUDITED                 UNAUDITED
                                                                               ---------                 ---------
<S>                                                                            <C>                       <C>       
Interest and dividend income:
    Interest and fees on loans                                                 $3,874,000                $3,582,000
                                                                               ----------                ----------
    Deposits with other financial institutions                                     25,000                     7,000
                                                                               ----------                ----------
    Interest - taxable securities                                               1,159,000                   949,000
    Interest - tax exempt                                                          13,000                     1,000
    Dividends                                                                      22,000                    19,000
                                                                               ----------                ----------
        Total investment securities                                             1,194,000                   969,000
                                                                               ----------                ----------
    Federal funds sold and securities
        purchased under agreements to resell                                      120,000                   154,000
                                                                               ----------                ----------
        Total interest and dividend income                                      5,213,000                 4,712,000
                                                                               ----------                ----------

Interest expense:
    Deposits:
    Certificates of deposit of $100,000 or more                                   580,000                   488,000
        Other                                                                   1,680,000                 1,551,000
                                                                               ----------                ----------
        Total deposits                                                          2,260,000                 2,039,000
    Federal funds purchased and securities
        sold under agreements to repurchase                                        65,000                   140,000
    Federal Home Loan Bank advances                                                57,000                     7,000
                                                                               ----------                ----------
        Total interest expense                                                  2,382,000                 2,186,000
                                                                               ----------                ----------
Net interest income                                                             2,831,000                 2,526,000
Provision for loan losses                                                         140,000                   130,000
                                                                               ----------                ----------
Net interest income after provision for loan losses                             2,691,000                 2,396,000
                                                                               ----------                ----------

Non-interest income:
    Service charges on deposit accounts                                           263,000                   239,000
    Other                                                                          92,000                    80,000
                                                                               ----------                ----------
        Total non-interest income                                                 355,000                   319,000
                                                                               ----------                ----------

Non-interest expense:
    Salaries and employee benefits                                              1,329,000                   886,000
    Premises and equipment                                                        270,000                   193,000
    Other                                                                         579,000                   492,000
                                                                               ----------                ----------
        Total non-interest expense                                              2,178,000                 1,571,000
                                                                               ----------                ----------
Net income before taxes                                                           868,000                 1,144,000
Provision for income taxes                                                        364,000                   408,000
                                                                               ----------                ----------

Net income after taxes                                                         $  504,000                $  736,000
                                                                               ==========                ==========
Per common share:
    Weighted average shares outstanding                                         1,198,610                   863,238
                                                                               ==========                ==========
    Net income per common share                                                     $0.42                     $0.85
                                                                               ==========                ==========
</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS

                                       3
<PAGE>


                  COMMUNITY BANKSHARES, INC. INCOME STATEMENTS
<TABLE>
<CAPTION>

                                                                           For The Quarter Ended September 30,
                                                                             1996                      1995
                                                                          UNAUDITED                  UNAUDITED
                                                                          ---------                  ---------
<S>                                                                        <C>                       <C>       
Interest and dividend income:
    Interest and fees on loans                                             $1,371,000                $1,210,000
                                                                           ----------                ----------
    Deposits with other financial institutions                                  5,000                     3,000
                                                                           ----------                ----------
    Interest - taxable securities                                             406,000                   326,000
    Interest - tax exempt                                                       4,000                     1,000
    Dividends                                                                   9,000                     6,000
                                                                           ----------                ----------
        Total investment securities                                           419,000                   333,000
                                                                           ----------                ----------
    Federal funds sold and securities
      purchased under agreements to resell                                     72,000                    75,000
                                                                           ----------                ----------
        Total interest and dividend income                                  1,867,000                 1,621,000
                                                                           ----------                ----------

Interest expense:
    Deposits:
      Certificates of deposit of $100,000 or more                             206,000                   169,000
      Other                                                                   606,000                   567,000
                                                                           ----------                ----------
        Total deposits                                                        812,000                   736,000
    Federal funds purchased and securities
      sold under agreements to repurchase                                      22,000                    55,000
    Federal Home Loan Bank advances                                            19,000                         -
                                                                           ----------                ----------
        Total interest expense                                                853,000                   791,000
                                                                           ----------                ----------
Net interest income                                                         1,014,000                   830,000
Provision for loan losses                                                      77,000                    50,000
                                                                           ----------                ----------
 Net interest income after provision for loan losses                          937,000                   780,000
                                                                           ----------                ----------

Non-interest income:
    Service charges on deposit accounts                                        91,000                    85,000
    Other                                                                      29,000                    27,000
                                                                           ----------                ----------
        Total non-interest income                                             120,000                   112,000
                                                                           ----------                ----------

Non-interest expense:
    Salaries and employee benefits                                            523,000                   312,000
    Premises and equipment                                                    115,000                    61,000
    Other                                                                     229,000                   130,000
                                                                           ----------                ----------
        Total non-interest expense                                            867,000                   503,000
                                                                           ----------                ----------
Net income before taxes                                                       190,000                   389,000
Provision for income taxes                                                     80,000                   139,000
                                                                           ----------                ----------

Net income after taxes                                                     $  110,000                $  250,000
                                                                           ==========                ==========

Per common share:
    Weighted average shares outstanding                                     1,168,984                   863,238
                                                                            =========                ==========
    Net income per common share                                                 $0.09                     $0.29
                                                                           ==========                ==========
</TABLE>

     THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS

                                       4
<PAGE>

                COMMUNITY BANKSHARES, INC. STATEMENT OF CASH FLOW
<TABLE>
<CAPTION>

                                                                            For The Nine Month Period Ended September 30,
                                                                                       1996                  1995
                                                                                    Unaudited              Unaudited
                                                                                    ---------              ---------
<S>                                                                              <C>                   <C>
Cash flows from operating activities:
Net income                                                                       $    504,000          $    736,000
Adjustments to reconcile net income
  to net cash used in operating activities:
        Depreciation                                                                  134,000                97,000
        Provision for loan losses                                                     140,000               130,000
        Accretion of discounts and
          amortization of premiums -
          investment securities - net                                                 (28,000)              (11,000)
Changes in assets and liabilities:
        Proceeds of sale of loans held for resale                                   2,877,000             1,743,000
        Origination of loans held for resale                                       (2,937,000)           (1,786,000)
        (Increase) in interest receivable                                            (168,000)             (129,000)
        (Increase) decrease in other assets                                           (70,000)               81,000
        Increase in interest payable                                                        -                55,000
        Increase in other liabilities                                                  16,000               205,000
                                                                                 ------------          ------------
Net cash provided by operating activities                                             468,000             1,121,000
                                                                                 ------------          ------------
Cash flows from investing activities:
        Net increase in interest bearing deposits                                    (226,000)                    -
        Proceeds from maturities and sales of
            investment securities - hold to maturity                                5,814,000             9,487,000
        Purchases of investment securities - hold to maturity                      (8,049,000)          (10,320,000)
        Proceeds from maturities and sales of
            investment securities - available for sale                              3,068,000             1,788,000
        Purchases of investment securities - available for sale                    (5,411,000)           (1,628,000)
        Net (increase) in loans to customers                                       (9,731,000)           (3,242,000)
        Purchase of premises and equipment                                         (1,120,000)             (432,000)
        Net decrease in other real estate                                                   -               100,000
                                                                                 ------------          ------------
            Net cash (used) in investing activities                               (15,655,000)           (4,247,000)
                                                                                 ------------          ------------
Cash flows from financing activities:
        Net increase in demand, savings, & time deposits                           14,843,000             4,050,000
        Net increase in federal funds purchased and
             securities sold under agreements to re-
             purchase                                                                 245,000             1,796,000
        Increase in Federal Home Loan Bank advances                                   430,000               701,000
        Increase (decease) in notes payable                                          (240,000)              240,000
        Sale of common stock                                                        4,402,000                     -
        Cost of stock sale                                                            (44,000)                    -
        Dividends                                                                    (317,000)             (242,000)
        Other                                                                              -                (20,000)
                                                                                 ------------          ------------
          Net cash provided by financing activities                                19,319,000             6,525,000
                                                                                 ------------          ------------
Net increase in cash and due from other financial institutions                      4,132,000             3,399,000
Cash  and  due  from  other  financial  institutions  -beginning  of                4,535,000             3,053,000
                                                                                 ------------          ------------
period
Cash and due from other financial institutions -end of period                    $  8,667,000          $  6,452,000
                                                                                 ============          ============
</TABLE>
     THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS



                                       5
<PAGE>



Summary of Significant Accounting Principles

     A summary of significant accounting policies is included in the 1995 Annual
Report of Community  Bankshares,  Inc. to the Shareholders,  which also contains
the Company's audited financial statements for 1995.

Principles of Consolidation

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

Management Opinion

     The 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 1995 Annual Report.



                                       6
<PAGE>

           COMMUNITY BANKSHARES, INC, - COMPARATIVE AVERAGE BALANCES,
                                YIELDS, AND RATES
<TABLE>
<CAPTION>

                                                         For The Nine Month Period Ended September 30,
                                                         ---------------------------------------------
Dollar amounts in thousands                            1996                                         1995
                                                       ----                                         ----
                                                     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                $  1,124   $     26       3.02%            $    313       $     13     5.53%
Investment securities--taxable             26,706      1,180       5.89%              22,566            962     5.68%
Investment securities--tax exempt(1)          417         13       6.25%                  33              1     6.14%
Federal funds sold                          3,074        120       5.20%               3,555            154     5.78%
Loans, net of unearned income              55,266      3,874       9.35%              50,340          3,582     9.49%
                                         --------   --------       ----             --------       --------     ----
Total interest earning assets              86,587      5,213       8.03%              76,807          4,712     8.18%
                                                                                    
Cash and due from banks                     3,613      3,099                        
Allowance for loan losses                    (733)      (651)                       
Premises and equipment                      2,205      1,363                        
Other assets                                1,230      1,061
                                         --------   --------

Total assets                             $ 92,902   $ 81,679                        
                                         ========   ========
                                                                                    
Liabilities and Shareholders'                                                       
Equity                                                                              
Interest bearing deposits                                                           
Savings                                  $ 12,600   $    218       2.30%            $ 14,938       $    344     3.07%
Interest bearing transaction                8,478        129       2.03%               6,022            105     2.32%
accounts                                                                            
Time deposits                              47,224      1,912       5.40%              39,997          1,590     5.30%
                                         --------   --------       ----             --------       --------     ----
                                                                                    
Total interest bearing deposits            68,302      2,259       4.41%              60,957          2,039     4.46%
Short term borrowing                        2,187         64       3.98%               3,929            140     4.75%
FHLB advances                               1,123         58       6.83%                 133              7     7.01%
                                         --------   --------       ----             --------       --------     ----
Total interest bearing liabilities         71,612      2,381       4.43%              65,020          2,186     4.48%
                                                                                    
Noninterest bearing demand                 10,068                                      9,382
deposits                                                                                    
Other liabilities                             591                                        576
Shareholders' equity                       10,631                                      6,702
                                         --------                                   --------
Total liabilities and shareholders'                                                         
equity                                   $ 92,902                                   $ 81,679          
                                         ========                                   ========
                                                                                     
Interest rate spread                                               3.59%                                        3.70%
                                                                                    
Net interest income and net                                                         
    yield on earning assets              $  2,831                  4.36%                           $  2,526     4.38%
                                         ========                  ====                            ========     ==== 
</TABLE>                                                                   
(1) Fully tax equivalent yield.

                                       7
<PAGE>

           COMMUNITY BANKSHARES, INC., - COMPARATIVE AVERAGE BALANCES,
                                YIELDS, AND RATES
<TABLE>
<CAPTION>

                                                                   For The Quarter Ended September 30,
                                                                   -----------------------------------
   Dollar amounts in thousands                               1996                                       1995
   ---------------------------                               ----                                       ----
                                                           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                  $   354      $    5        6.03%          $   609        $    9        5.91%
   Investment securities taxable               27,665         414        5.99%           22,927           333        5.81%
   Investment securities--tax exempt              417           4        6.24%                -             -        0.00%
   Federal funds sold                           5,392          72        5.37%            4,788            69        5.76%
   Loans, net of unearned income               58,539       1,372        9.37%           51,533         1,210        9.39%
                                               ------      ------        ----           -------        ------        ----
   Total interest earning assets               92,367       1,867        8.09%           79,857         1,621        8.12%

   Cash and due from banks                      4,198                                     3,114
   Allowance for loan losses                     (759)                                     (664)
   Premises and equipment                       2,729                                     1,444
   Other assets                                 1,355                                     1,098
                                              -------                                   -------

   Total assets                               $99,890                                   $84,849
                                              =======                                   =======

   Liabilities and Shareholders' Equity
   Interest bearing deposits
   Savings                                    $14,186         $98        2.76%          $14,504        $  110        3.03%
   Interest bearing transaction accounts        9,482          49        2.06%            6,412            39        2.43%
   Time deposits                               49,263         665        5.40%           41,923           573        5.47%
                                              -------      ------        ----           -------        ------        ---- 

   Total interest bearing deposits             72,931         812        4.45%           62,839           722        4.60%
   Short term borrowing                         2,353          22        3.79%            4,706            62        5.27%
   FHLB advances                                1,163          19        6.64%              399             7        7.01%
                                              -------      ------        ----           -------        ------        ---- 
   Total interest bearing liabilities          76,447         853        4.46%           67,944           791        4.66%

   Noninterest bearing demand deposits         10,949                                     9,322
   Other liabilities                              673                                       661
   Shareholders' equity                        11,821                                     6,922
                                              -------                                   -------

   Total liabilities and shareholders'        $99,890                                   $84,849
                                              =======                                   =======
   equity

   Interest rate spread                                                  3.62%                                       3.46%

   Net interest income and net yield
       on earning assets                                   $1,014        4.39%                        $   830        4.16%
                                                           ======        ====                         =======        ==== 
</TABLE>

(1) Fully tax equivalent yield.


                                       8
<PAGE>

                  Item 2. Management's Discussion and Analysis

Corporate Form

     Community Bankshares,  Inc. (CBI) is a bank holding company organized under
the laws of South  Carolina.  It  presently  conducts  business  through its two
banking subsidiaries.  On July 1, 1993, Orangeburg National Bank (the Orangeburg
bank) became a wholly owned subsidiary of CBI. On June 10, 1996, Sumter National
Bank  (the  Sumter  bank)  became a wholly  owned  subsidiary  of CBI.  (It also
commenced  banking  operations  on  that  date.)   Accordingly,   the  financial
statements  for the quarter and period ended  September  30,  1996,  are for the
consolidated   operations  of  the  holding  company  and  the  two  banks.  All
significant intercompany transactions have been eliminated.

Sumter National Bank

     On May 5, 1995,  CBI entered into an agreement to sponsor the  organization
of  Sumter  National  Bank,  a  national  bank  organized  by a group  of  local
businessmen in Sumter,  South  Carolina to become a  wholly-owned  subsidiary of
CBI. CBI also agreed to pay a portion of the expenses of the organization of the
bank and to furnish the funds  necessary to  capitalize  the bank.  The funds to
capitalize  Sumter National Bank and to pay certain  expenses of organization of
the bank were  provided by CBI from the proceeds of a stock  offering  conducted
early in 1996.  Completion  of the  organization  of  Sumter  National  Bank and
acquisition  of the bank by CBI were  subject to  approval  of the Office of the
Comptroller of the Currency  (OCC),  the Federal Deposit  Insurance  Corporation
(FDIC),  the Board of Governors of the Federal Reserve System (Federal Reserve),
and the South Carolina State Board of Financial  Institutions  (State Board). On
July 12,  1995,  an  application  for a national  bank  charter for the proposed
Sumter  National  Bank was filed  with the OCC and an  application  for  deposit
insurance was filed with the FDIC. During December 1995 preliminary approval was
obtained  from the OCC and the FDIC.  Federal  Reserve  approval was obtained in
March 1996 and State Board approval was obtained in May 1996.  The  construction
of the bank building  began in January 1996 and was  completed in May 1996.  The
new bank opened for  business on Monday,  June 10,  1996.  As further  explained
elsewhere herein, many of the significant changes in line items as compared with
earlier periods are  attributable to the completion of organization  and opening
of the Sumter bank.  The third  quarter 1996  reflects the first full quarter of
operation for the Sumter bank.


                              RESULTS OF OPERATIONS

Synopsis

     The  1996  third  quarter  statement  of  operations  reflects  substantial
expenses  related to commencement of operations by CBI's new subsidiary,  Sumter
National Bank.  Consolidated net income has been reduced by $238,000 as a result
of the first four months of  operations  by the Sumter bank and by $112,000 as a
result of expenses paid during 1996 by CBI directly associated with the start up
of the new bank.

     Management  views this  reduction in earnings as the  expected  result of a
major  investment in a new marketplace.  In many ways, the current  situation in
Sumter  parallels the 1987-1988  initial  operating  periods for the  Orangeburg
bank.

     Management  of CBI is,  nonetheless,  pleased with the Sumter bank's steady
progress.  At September 30, 1996,  the Sumter bank had a loan  portfolio of $4.7
million, deposits of $7.7 million, and total assets of $11 million.

                                       9
<PAGE>

Net Income

     For the nine months  ended  September  30,  1996,  CBI earned net income of
$504,000,  compared to $736,000 for the same period of 1995, a decrease of 31.5%
or $232,000.  Earnings per share were $.42 in the 1996 period,  compared to $.85
for the 1995 period, a $.43 decrease.  The decrease in consolidated earnings for
the 1996 period was  anticipated  and is  attributable  to start up expenses and
early operating losses incurred by the Sumter bank.

     For the nine months ended  September  30, 1996,  net interest  income after
provision for loan losses  increased to  $2,382,000,  compared to $2,186,000 for
the same period in 1995,  an increase of 8.9% or $196,000.  Non-interest  income
for the 1996 period  increased  to  $355,000,  compared to $319,000 for the 1995
period,  an 11.3% or  $36,000  improvement.  Non-interest  expense  for the 1996
period  increased to $2,178,000,  compared to $1,571,000 for the 1995 period,  a
38.6%  or  $607,000  increase.  This  increase  was  primarily  attributable  to
pre-opening expenses and early operating losses of the Sumter bank.

     For the three months ended  September  30, 1996,  net income was  $110,000,
compared to $250,000  for the  comparable  period in 1995,  a decrease of 56% or
$130,000. On a per share basis, net income declined to $.09 for the three months
ended  September  30,  1996,  from $.29 for the  comparable  period  in 1995,  a
decrease of $.20. These decreases are also primarily attributable to pre-opening
expenses and early operating losses of the Sumter bank.

     For the three months ended  September 30, 1996,  net interest  income after
provision for loan losses increased to $1,014,000,  compared to $830,000 for the
same quarter in 1995, an increase of 22.2% or $184,000.  Non-interest income for
the 1996  quarter  increased  to  $120,000,  compared to  $112,000  for the 1995
quarter,  a 7.1%  or  $8,000  improvement.  Non-interest  expense  increased  to
$867,000 from $503,000,  a 72.4% or $364,000 increase,  which was also primarily
attributable to pre-opening  expenses and early  operating  losses of the Sumter
bank.

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  annualized  divided by the average assets for the period.
Return on equity is the income for the period annualized  divided by the average
equity for the period.  Based on operating  results for the quarters and periods
ended September 30, 1996 and 1995, the following table is presented.
<TABLE>
<CAPTION>

                                    Nine months ended Sept. 30,                    Quarter ended Sept. 30,
                                    1996                  1995                   1996                   1995
                                    ----                  ----                   ----                   ----
                                                 (dollar amounts in thousands)
<S>                              <C>                 <C>                     <C>                     <C>       
Net income                       $   504              $    736               $    110                $   250
Average assets                    92,902                81,679                 99,890                 84,849
Average equity                    10,631                 6,702                 11,821                  6,922
ROA                                0.72%                 1.20%                  0.44%                  1.18%
ROE                                6.32%                14.64%                  3.72%                 14.45%
</TABLE>

     Declines in the ROA and ROE resulted from a decline in net income primarily
attributable  to start up expenses and early  operating  losses  incurred by the
Sumter bank and also a  substantial  increase in equity as a result of the stock
sale used to capitalize the Sumter bank.

                                       10
<PAGE>

Net interest income

     For the three months ended  September 30, 1996,  net interest  income after
provision  for loan losses  increased to $937,000,  compared to $780,000 for the
comparable  period of 1995, an increase of 20.1% or $157,000.  This  improvement
was the result of an increase in the volume of earning  assets.  Average earning
assets for the 1996 quarter were  $92,367,000  compared to  $79,857,000  for the
prior  year,  an  increase of 15.7% or  $12,510,000.  The yield on these  assets
decreased slightly to 8.09% from 8.12%. a decrease of .03. The cost of funds for
the quarter  ended  September  30,  1996,  was 4.46%,  compared to 4.66% for the
comparable  period of 1995, a .20%  decrease.  The  provision  for bad debts was
increased to $77,000  compared to $50,000 the prior year,  an increase of 54% or
$27,000.  The  increase  in the  provision  expense  for the  quarter was mostly
attributable to the first full quarter of lending by the Sumter bank.

     The small  decrease in the yield on earning  assets was more than offset by
the decreased cost of funds, causing the spread to improve. The spread (yield on
earning assets less cost of interest bearing  liabilities) for the third quarter
of 1996 was  3.62%,  up from  3.46% for the  comparable  period in 1995,  a .16%
increase. The net interest margin was 4.39% for the 1996 period,  increased from
4.16% for the 1995 period, a .23% increase.

     For the nine months ended  September  30, 1996,  net interest  income after
provision for loan losses  increased to  $2,691,000,  compared to $2,396,000 for
the nine months ended  September  30,  1995,  an increase of 12.3 % or $295,000.
This  improvement was the result of an increase in the volume of earning assets.
Average  earning  assets  for the 1996  period  were  $86,588,000,  compared  to
$76,808,000 for the prior year, an increase of 12.7% or $9,780,000. The yield on
these assets decreased to 8.03% from 8.18%, a decrease of .15% The cost of funds
for the period ended  September  30, 1996,  was 4.44%  compared to 4.48% for the
comparable  period of 1995,  a .04  decrease.  The  provision  for bad debts was
increased to $140,000  compared to $130,000 the prior year,  an increase of 7.7%
or $10,000.

     The decrease in the yield on earning  assets  caused the spread to decline.
The spread (yield on earning assets less cost of interest  bearing  liabilities)
for the period  ended  September  30, 1996,  was 3.59%,  down from 3.70% for the
comparable  period in 1995, a .11% decrease.  The net interest  margin was 4.36%
for the 1996 period, decreased from 4.38% for the 1995 period, a .02% decrease.

     Preceding  this  discussion  are tables  comparing  the  average  balances,
yields,  and rates for the interest  rate  sensitive  segments of CBI's  balance
sheet for the periods and quarters ended September 30, 1996 and 1995.

Interest Income for the quarter ended September 30

     Interest income for the 1996 quarter was $1,867,000, compared to $1,621,000
for the 1995 quarter, an increase of 15.2% or $246,000.

     The loan  portfolio  earned  $1,371,000  for the 1996 quarter,  compared to
$1,210,000 for the comparable  period in 1995, an increase of 13.3% or $161,000.
The third quarter yield  decreased to 9.37% from 9.39%, a .02% decrease.  During
the 1996 quarter,  loans averaged  $58,539,000,  compared to $51,533,000 for the
1995  quarter,  an increase of 13.6% or  $7,006,000.  (Average  loans during the
quarter for the Sumter bank were $2,291,000, or 32.7% of the increase.)

                                       11
<PAGE>

     The  investment  portfolio  earned  $414,000 for the 1996 quarter,  up from
$333,000 for the comparable period in 1995, an increase of 24.5% or $81,000. The
yield for the quarter increased to 5.99% from 5.81%, a .18% increase. During the
1996 quarter,  investments averaged $27,665,000,  compared to $22,927,000 in the
1995 quarter,  an increase of 20.7% or $4,738,000.  (Average  investments during
the quarter for the Sumter bank were $884,000, or 18.6% of the increase.)

     The tax exempt  investment  portfolio  earned  $4,000 for the 1996 quarter.
There were no exempt  investments  for the comparable  period in 1995. The yield
for the 1996  quarter  was  6.24%.  Average  tax exempt  investments  during the
quarter were $417,000.

     Interest  bearing  deposits  contributed a small amount to interest income,
$5,000 for the 1996  quarter,  compared to $9,000 the same  quarter in the prior
year,  a 44% or $4,000  increase.  During  the 1996  quarter,  interest  bearing
deposits  averaged  $354,000  compared to $609,000 the prior year, a decrease of
41.8% or $255,000. The yield on these amounts increased to 6.03% from 5.91%.

     Federal funds sold earned $72,000 for the 1996 quarter, compared to $75,000
for the 1995 quarter, a decrease of 4% or $3,000. Yields fell to 5.37% from 6.27
%, a .90%  decrease.  Federal  funds  averaged  $5,392,000  in the 1996 quarter,
compared  to  $4,788,000  the prior  year,  an  increase  of 12.6% or  $604,000.
(Average  federal funds during the quarter for the Sumter bank were  $3,710,000.
The  Orangeburg  bank had a significant  reduction in its federal funds position
due to the normal rotation of accounts by the municipally  owned utility company
among local banks.)

Interest Income for the nine months ended September 30

     Interest income for the 1996 period was $5,213,000,  compared to $4,712,000
for the 1995 period, an increase of 10.6% or $501,000.

     The  loan  portfolio  earned  $3,874,000  for  the  1996  period,  up  from
$3,582,000 for the  comparable  period in 1995, an increase of 8.2% or $292,000.
The  average  yield on loans for the  period  decreased  to 9.35% from the prior
year's  9.49%,  a  .14%  decrease.   During  the  1996,  period  loans  averaged
$55,266,000, compared to $50,340,000 for the 1995 period, an increase of 9.8% or
$4,936,000.

                                       12
<PAGE>

     The investment  portfolio  earned  $1,180,000 for the 1996 period,  up from
$962,000 in 1995,  an increase of 22.7% or $218,000.  During the same period the
yield  increased to 5.89% from 5.68%,  a .21%  increase.  During the 1996 period
investments averaged $26,706,000, compared to $22,566,000 in the 1995 period, an
increase of 18.3% or $4,140,000.

     The tax exempt investment  portfolio earned $13,000 for the 1996 period, up
from $1,000 in 1995, an increase of 1200% or $12,000.  For the 1996 period,  the
average tax exempt  investment  portfolio was $417,000,  compared to $33,000 for
the comparable  period of 1995, an 1163% or $384,000  increase.  During the same
period the yield increased to 6.25% from 6.14%, a .11% increase.

     For the 1996 period interest bearing deposits generated $26,000 in interest
income,  compared to $13,000 the prior year, a 100% or $13,000 increase.  During
the 1996 period,  interest  bearing  deposits  averaged  $1,124,000  compared to
$313,000 the prior year. This increase was primarily the result of the temporary
investment of the proceeds of the sale of stock referred to below.  The yield on
these amounts decreased to 3.02% from 5.53%.

     For the 1996 period, federal funds sold earned $120,000, down from $154,000
for the same period in 1995, a decrease of 22.1% or $34,000.  CBI  decreased its
average  volume in funds to  $3,074,000  from the  prior  year's  $3,555,000,  a
decrease of 13.5% or $481,000.  Yields  declined to 5.20% from 5.78%, a decrease
of .58%.

Interest expense

     For the quarter ended  September 30, 1996,  interest  expense  increased to
$853,000 from $791,000 for the comparable period in 1995, an increase of 7.8% or
$62,000.  The average rate paid for  interest  bearing  liabilities  in 1996 was
4.46%, down from 4.66% for the comparable period in 1995, a .20% decrease.

     For the period ended September 30, 1996,  interest  expense was $2,381,000,
compared  to  $2,186,000  for the same  period in 1995,  an  increase of 8.9% or
$195,000.  The average rate paid for interest  bearing  liabilities  during this
period in 1996 was 4.43%, down from the prior year's 4.48%, a .05% decrease.

Non-Interest Income

     Non-interest income for the quarter ended September 30, 1996, was $120,000,
compared to $112,000 for the  comparable  period in 1995, an increase of 7.1% or
$8,000..

     Non-interest  income for the period ended September 30, 1996, was $355,000,
compared to $319,000 for the comparable  period in 1995, an increase of 11.3% or
$36,000.

Non-Interest Expense, for the quarter ended September 30

     For the 1996  quarter,  non-interest  expense  was  $867,000,  compared  to
$503,000  for the  comparable  period  in 1995,  a 72.4% or  $364,000  increase.
Expenses  associated  with the first  full  quarter of  operation  of the Sumter
National Bank totaled $301,000, 82.6% of this increase.

     For the 1996 quarter,  personnel  costs were $523,000  compared to $312,000
for the 1995 quarter, an increase of 67.6% or $211,000. Salaries associated with
the first full quarter of operation of Sumter  National  Bank totaled  $157,000,
74% of the overall increase.

     For the 1996 quarter, premises and equipment expense were $115,000 compared
to  $61,000  for the 1995  quarter,  an  increase  of 88.5%  or  $54,000.  Costs
associated  with the first full  quarter of operation  of Sumter  National  Bank
totaled $28,000, 49% of the overall increase.

     For the 1996 quarter,  other costs were $229,000,  compared to $130,000 for
the 1995 quarter,  an increase of 76.2% or $99,000 Other costs  associated  with
the first  quarter  of  operation  of Sumter  National  Bank  totaled  $116,000.
However,  this increase was partially  offset by a reduction in the cost of FDIC
deposit insurance.

                                       13
<PAGE>

Non-Interest Expense, for the nine month period ended September 30

     For the 1996  period,  non-interest  expense  was  $2,178,000,  compared to
$1,571,000  for the  comparable  period in 1995,  a 38.6% or $607,000  increase.
Expenses  associated  with the  start up and  initial  operation  of the  Sumter
National Bank totaled $507,000, 83.5% of this increase.

     For the 1996 period,  personnel costs were $1,329,000  compared to $886,000
for the 1995 period,  an increase of 50% or $443,000.  Salaries  associated with
the pre-opening phase and first four months of operation of Sumter National Bank
totaled $280,000, 63% of the overall increase. The remainder of the increase was
the result of increases in staff and normal pay increases.

     For the 1996 period,  premises and equipment expense were $270,000 compared
to $193,000  for the 1995  period,  an  increase  of 39.9% or $77,000.  Expenses
associated  with the first four months of  operations  of Sumter  National  Bank
totaled $39,000, or 50.6% of the overall increase.

     For the 1996 period,  other costs were  $579,000,  compared to $492,000 for
the 1995 period, an increase of 17.7% or $87,000 Other costs associated with the
operation of Sumter National Bank totaled $147,000.  However,  this increase was
offset by a $69,000 reduction in the cost of FDIC deposit insurance.

Income Taxes

     CBI  provided  $80,000 for federal and state  income taxes during the third
quarter of 1996,  compared to $139,000  for the same period in 1995,  a 42.4% or
$59,000 decrease.

     CBI provided $364,000 for federal and state income taxes for the first nine
months of 1996,  compared  to $408,000  for the same period in 1995,  a 10.8% or
$44,000 decrease.


                          CHANGES IN FINANCIAL POSITION

Investment portfolio

     The  investment  portfolio  is  comprised  of a  hold  to  maturity  and an
available  for  sale  portion.  CBI  and its two  banking  subsidiaries  usually
purchase short term U. S. Treasury and U. S. government  agency  obligations for
investment  purposes.  At  September  30, 1996,  the hold to maturity  portfolio
totaled  $17,865,000,  compared to $15,610,000 at December 31, 1995, an increase
of 14.4% or $2,255,000.  At September 30, 1996, the available for sale portfolio
totaled $11,316,000, compared to $9,059,000 at December 31, 1995, an increase of
24.9% or $2,257,000. The following chart summarizes the investment portfolios at
September 30, 1996, and December 31, 1995.

                                       14
<PAGE>
<TABLE>
<CAPTION>


                              September 30,1996
                              -----------------
                                        Hold to maturity                        Available for sale
                                        ----------------                        ------------------
                                Amortized cost        Fair value         Amortized cost        Fair value
                                --------------        ----------         --------------        ----------
                                                          (dollars in thousands)
<S>                               <C>                 <C>                  <C>                 <C>     
U. S. Treasury securities         $  3,319            $  3,328             $  2,490            $  2,500
U. S. Government agencies           14,130              14,015                8,342               8,229
Tax exempt securities                  416                 417                    -                   -
Other equity securities                  -                   -                  587                 587
                                  --------            --------             --------            --------
Total                             $ 17,865            $ 17,760             $ 11,419            $ 11,316
                                  ========            ========             ========            ========

Unrealized gain or (loss)         $   (105)                                $   (103)
                                  ========                                 ======== 
                                      
</TABLE>


<TABLE>
<CAPTION>
                              December 31, 1995
                              -----------------
                                        Hold to maturity                        Available for sale
                                        ----------------                        ------------------
                                Amortized cost        Fair value         Amortized cost        Fair value
                                --------------        ----------         --------------        ----------
                                                          (dollars in thousands)
<S>                               <C>                 <C>                 <C>                 <C>
U. S. Treasury securities         $ 2,603             $ 2,633             $ 2,992             $ 3,019
U. S. Government agencies          12,684              12,663               5,659               5,669
Tax exempt securities
Other equity securities               323                 324                   -                   -

                                        -                   -                 371                 371
                                  -------             -------             -------             -------
Total                             $15,610             $15,620             $ 9,022             $ 9,059
                                  =======             =======             =======             =======
Unrealized gain or (loss)         $    10                                 $    37
                                  =======                                 =======

</TABLE>

Premises and Equipment

     Premises and  equipment  were  $2,694,000  at September  30, 1996,  up from
$1,708,000 at December 31, 1995, an increase of 57.7% or $986,000.  Most of this
increase was associated with the  construction  and equipping of Sumter National
Bank.  At September  30, 1996,  premises and  equipment at Sumter  National Bank
totaled $1,365,000 or 50.6% of the total for CBI.

Loan portfolio

     The loan portfolio is primarily  consumer and small business  oriented.  At
September 30, 1996, the loan portfolio was $62,068,000,  compared to $52,323,000
at December 31, 1995, an 18.6% or $9,745,000 increase.  The portfolio for Sumter
National Bank totaled $4,767,000 at September 30, 1996, or 49% of this increase.
The following  chart  summarizes  the loan  portfolio at September 30, 1996, and
December 31, 1995.

                                       15
<PAGE>

<TABLE>
<CAPTION>

                                     Sept. 30, 1996            Dec. 31, 1995
                                     --------------            -------------
                                             (dollars in thousands)
<S>                                       <C>                     <C>       
Real estate                               $  38,052               $   31,477
Commercial
                                             14,103                   12,485
Loans to individuals
                                              9,913                    8,360
                                          ---------               ----------
Total                                     $  62,068               $   52,323
                                          =========               ==========
</TABLE>

Past Due and Non-Performing Assets and the Allowance for Loan Losses

     CBI and its two banking  subsidiaries  closely  monitor  past due loans and
loans that are in  non-accrual  status and other real estate  owned.  Below is a
summary of CBI's  past due and  non-performing  assets at  September  30,  1996,
December 31, 1995, and September 30, 1995.
<TABLE>
<CAPTION>

                                                              Sept. 30, 1996     Dec 31, 1995     Sept. 30, 1995
                                                              --------------     ------------     --------------
                                                                             (dollars in thousands)
<S>                                                                  <C>               <C>               <C>   
Accruing loans past due 90 days or more                              $   38            $   76            $   15
Nonaccrual loans                                                        293               348               120
Impaired loans (included in nonaccrual)                                 108               108               108
Other real estate owned                                                   -                 -                 -
</TABLE>

     CBI  considers  these  levels  to be  manageable  in the  normal  course of
business.

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

     CBI's allowance for loan losses is summarized below.

<TABLE>
<CAPTION>
                                                         Sept. 30, 1996     Dec 31, 1995      Sept. 30, 1995
                                                         --------------     ------------      --------------
                                                                    (dollars in thousands)
<S>                                                           <C>               <C>                 <C>    
Allowance at beginning of year                                $    708          $    616            $   616
Provision expense                                                  140               160                130
Less net chargeoffs
                                                                   (48)              (68)               (66)
                                                              --------         ---------            ------- 
Balance at end of period                                      $    800         $     708            $   680
                                                              ========         =========            =======
Allowance as a percent of outstanding loans                      1.29%             1.35%              1.31%
</TABLE>



                                       16
<PAGE>

     CBI  provided  $140,000  for the  provision  for loan losses for the period
ended September 30, 1996,  compared to $130,000 for the 1995 period, an increase
of 7.7% or $10,000. For the first nine months of 1996 the loan portfolio grew to
$62,008,000,  compared to  $51,617,000 at year end 1995, an increase of 20.1% or
$10,391,000.

     In reviewing  the adequacy of the  allowance  for loan losses at the end of
each period,  CBI considers  historical loan loss  experience,  current economic
conditions,  loans  outstanding,  trends in non-performing and delinquent loans,
and the quality of collateral  securing  problem  loans.  After charging off all
known losses, management considers the reserve adequate to provide for estimated
future losses inherent in the loan portfolio at Sept.tember 30, 1996.

Deposits

     Deposits were $87,393,000 at September 30, 1996, compared to $72,550,000 at
December 31, 1995, an increase of 20.4% or $14,843,000. Approximately $7,740,000
or 51% of this increase was the result of first four months  operations  for the
new bank in Sumter.

     Time deposits greater than $100,000 were $15,277,000 at September 30, 1996,
compared to  $12,838,000 at December 31, 1995, an increase of 19% or $2,439,000.
Approximately  $1,555,000 or 63.7% of this increase was the result of first four
months  operations  for the new bank in  Sumter.  While  most of the large  time
deposits are acquired from customers with standing relationships with the Banks,
it is common  industry  practice not to consider these types of deposits as core
deposits because their retention can be expected to be heavily influenced by the
rates  offered,  and therefore  they have the  characteristics  of  shorter-term
purchased funds.

Note payable

     At December 31, 1995, CBI had $240,000 in notes  payable.  These prime rate
notes payable were issued in connection with the  construction  and equipping of
the Sumter bank.  The notes reached a maximum of $1,049,000 and were paid off on
June 11, 1996, from the proceeds of the stock sale.

Federal Home Loan Bank advances

     Orangeburg  National  Bank is a member of the Federal Home Loan Bank system
and, as such, is entitled to borrow from the system.  The Bank has $1,130,000 in
such loans  outstanding at September 30, 1996,  compared to $700,000 at December
31,  1995,  an increase of 61.4% or $430,000.  $120,000 of the advances  matures
within the next year,  the  remainder  matures  in  greater  than one year.  The
collateral  for these  loans is a blanket  lien on the Bank's one to four family
residential mortgage loan portfolio.

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 the most timely and  economical
manner.  Some liquidity is insured by  maintaining  assets that may be converted
immediately  into cash at  minimal  cost  (such as  amounts  due from  banks and
federal funds).  However,  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  bank's  service  area.  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.



                                       17
<PAGE>

     Asset liquidity is provided by several sources,  including amounts due from
banks, federal funds sold, and investments maturing within one year.

     While  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. CBI
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, if needed, to its loan portfolio and for other obligations.

     Although CBI has substantially more liabilities (including mostly deposits,
which may be  withdrawn)  which  mature in the next 12 months than it has assets
maturing in the same period, its historical  experience,  and that of most other
banks,  leads CBI to believe 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 also  maintains  two federal  funds lines of credit with  correspondent
banks and is able to borrow from the Federal Home Loan Bank, as well as from the
Federal Reserve's discount window.

     CBI has a  demonstrated  ability to attract  deposits.  Deposits have grown
from $30 million at year end 1989 to $87 million at September  1996. This stable
growing base of deposits is the major source of operating liquidity. CBI expects
that the rate of growth in deposits  may slow  somewhat  in future  years as its
market share  continues  to grow.  During this same period CBI's loan to deposit
ratio (net of public deposits),  another  indicator of liquidity,  has gone from
80% to 71%.

     CBI's long term  liquidity  needs are expected to be primarily  affected by
the maturing of long term  certificates  of deposit.  At September 30, 1996, CBI
had approximately  $8,191,000 in certificates of deposit maturing in one to five
years and no  certificates  of deposit  maturing  over five years.  CBI's assets
maturing in the same periods were $39,088,000 and $8,025,000,  respectively. CBI
expects  to be able to  manage  its  current  balance  sheet  structure  without
experiencing any unusual liquidity problems.

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



                                       18
<PAGE>

Capital Resources

     As summarized in the table below, CBI has a strong capital position,  which
has been  augmented  by the sale of $4.5  million of common  stock  earlier this
year:

<TABLE>
<CAPTION>
                                                Sept. 30, 1996        Dec. 31, 1995       Sept. 30, 1995
                                                --------------        -------------       --------------
<S>                                                     <C>                   <C>                  <C>  
Tier 1 / total assets                                   19.66%                8.34%                8.31%
Total capital / total assets                            11.97%                9.59%                9.11%
Risk weighted capital ratio                             21.00%               14.14%               14.16%
</TABLE>

     Banks are required to maintain a minimum risk weighted capital ratio of 8%.

     In the opinion of management,  current and projected  capital positions are
adequate.

Common Stock

     In  December  1995 CBI began  offering  up to 450,000  shares of its no par
common stock at $10 per share.  The primary  purpose of the offering was to fund
the  acquisition of all the stock of the Sumter  National Bank. By May 15, 1996,
CBI had received  subscriptions for 450,000 shares or $4.5 million,  compared to
9,800 shares or $98,000 at December 31, 1995. On June 10, 1996,  Sumter National
Bank began operations and the subscribers became common shareholders of CBI.

     The Common  Stock  account of CBI was  $9,073,000  at  September  30, 1996,
compared to $4,617,000  at December 31, 1995.  The Common Stock account has been
increased  by the $4.5  million in  proceeds  from the stock sale and reduced by
$44,000 in expenses directly  associated with the raising of capital,  including
legal and accounting fees, printing, postage, and advertising.

Subsequent Events

     CBI expects to have its common stock listed on the American  Stock Exchange
during the fourth quarter. The ticker symbol for the company will be SCB.




                                       19
<PAGE>




Part II--Other Information

Item 6.  Exhibits and Reports on Form 8-K

(a)  Exhibit Index

Exhibit No.(from item 601 of SB)                  Description
(27)                                              Financial Data Schedule

(b)  Reports on Form 8-K.  None.


                                       20
<PAGE>


Signatures

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



DATED: November 14, 1996

COMMUNITY BANKSHARES, INC.


By:  s/  Hugo S. Sims, Jr.,
         ------------------------
          Hugo S. Sims, Jr.,
          Chief Executive Officer


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