--------------------------------------------------------------------------------




                       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 June 30, 2003   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 [ ]

         Indicate by check mark whether the registrant is an  accelerated  filer
(as defined in Rule 12b-2 of the Act). Yes [ ] No [X]

         State the number of shares  outstanding of each of the issuer's classes
of common equity, as of the latest practicable date:  4,310,646 shares of common
stock outstanding as of August 1, 2003.

--------------------------------------------------------------------------------



 <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 ...  10
              Results of Operations
Item 3   Quantitative and Qualitative Disclosure About Market Risk .........  22
Item 4   Controls and Procedures ...........................................  22
                            Part II-Other Information
Item 4   Submission of Matters to a Vote of the Security Holders ...........  23
Item 6   Exhibits and Reports on Form 8-K ..................................  24




                                       2
<PAGE>

Part I. Item 1. Financial Statements

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

<TABLE>
<CAPTION>
                                                                                                   UNAUDITED
                                                                                                    June 30,            December 31,
          ASSETS                                                                                      2003                  2002
                                                                                                      ----                  ----

Cash and due from other financial institutions:
<S>                                                                                                <C>                    <C>
      Non-interest bearing ...........................................................             $  15,336              $  14,738
      Federal funds sold .............................................................                32,024                 23,831
                                                                                                   ---------              ---------
          Total cash and cash equivalents ............................................                47,360                 38,569
Interest bearing deposits in other banks .............................................                 1,261                    511
Securities available for sale, at fair value .........................................                52,791                 53,066
Loans held for resale ................................................................                26,657                 24,664
Loans receivable .....................................................................               318,217                306,484
      Less, allowance for loan losses ................................................                (3,922)                (3,573)
                                                                                                   ---------              ---------
          Net loans ..................................................................               314,295                302,911

Accrued interest  receivable .........................................................                 2,014                  2,131
Premises and equipment ...............................................................                 6,780                  6,376
Net deferred tax asset ...............................................................                   424                    584
Intangible assets ....................................................................                 7,773                  7,896
Other assets .........................................................................                   691                    612
                                                                                                   ---------              ---------

          Total assets ...............................................................             $ 460,046              $ 437,320
                                                                                                   =========              =========

          LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
      Non-interest bearing ...........................................................             $  54,974              $  47,128
      Interest bearing ...............................................................               300,838                289,934
                                                                                                   ---------              ---------
          Total deposits .............................................................               355,812                337,062
Federal funds purchased and securities
      sold under agreements to repurchase ............................................                13,344                 16,302
Federal Home Loan Bank advances ......................................................                20,210                 20,210
Lines of credit payable ..............................................................                22,833                 18,249
Other liabilities ....................................................................                 1,755                  1,780
                                                                                                   ---------              ---------
          Total liabilities ..........................................................               413,954                393,603
                                                                                                   ---------              ---------
Shareholders' equity:
      Common stock ...................................................................                29,159                 29,090
          No par, authorized shares 12,000,000, issued and
          outstanding 4,310,646 in 2003 and 4,304,384 in 2002
      Retained earnings ..............................................................                16,520                 14,529
      Accumulated other comprehensive income .........................................                   413                     98
                                                                                                   ---------              ---------
          Total shareholders' equity .................................................                46,092                 43,717
                                                                                                   ---------              ---------

          Total liabilities and shareholders' equity .................................             $ 460,046              $ 437,320
                                                                                                   =========              =========
</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 six months ended June 30, 2003 and 2002 (Unaudited)
                    (Amounts in thousands, except share data)

<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, 2001 ..........................      3,299,674      $   17,208      $   10,346      $       (7)     $   27,547
Comprehensive income:
     Net income ....................................                                          2,336                           2,336
     Other comprehensive income net of tax:
         Unrealized gain on securities .............                                                            172             172
Shares issued under stock options ..................          4,710              40                                              40
Expenses related to merger .........................                            (98)                                            (98)
Dividends paid .....................................              -               -            (529)              -            (529)
                                                         ----------      ----------      ----------      ----------      ----------
Balances at June 30, 2002 ..........................      3,304,384      $   17,150      $   12,153      $      165      $   29,468
                                                         ==========      ==========      ==========      ==========      ==========

Balances at Dec. 31, 2002 ..........................      4,304,384      $   29,090      $   14,529      $       98      $   43,717
Comprehensive income:
     Net income ....................................                                          2,766                           2,766
     Other comprehensive income  net of tax:
         Unrealized gain on securities .............                                                            315             315
Shares issued under stock options ..................          6,262              69                                              69
Dividends paid .....................................              -               -            (775)              -            (775)
                                                         ----------      ----------      ----------      ----------      ----------
Balances at June 30, 2003 ..........................      4,310,646      $   29,159      $   16,520      $      413      $   46,092
                                                         ==========      ==========      ==========      ==========      ==========
</TABLE>


THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS

                                       4
<PAGE>

        COMMUNITY BANKSHARES, INC. - CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>

                                                                           Six months ended June 30,     Three months ended June 30,
                                                                            2003              2002           2003           2002
          (In thousands, except per share data)                           UNAUDITED         UNAUDITED      UNAUDITED      UNAUDITED
                                                                          ---------         ---------      ---------      ---------
Interest and dividend income:
<S>                                                                       <C>              <C>             <C>              <C>
     Loans, including fees .......................................        $ 11,091         $  8,942        $  5,816         $  4,618
     Deposits with other financial institutions ..................               9               10               5                4
     Debt securities .............................................             845              858             352              483
     Dividends ...................................................              40               63              20               32
     Federal funds sold ..........................................             149              167              92               80
                                                                          --------         --------        --------         --------
          Total interest and dividend income .....................          12,134           10,040           6,285            5,217
                                                                          --------         --------        --------         --------

Interest expense:
     Deposits:
       Certificates of deposit of $100,000 or more ...............             839              914             412              446
       Other .....................................................           2,198            2,206           1,079            1,054
                                                                          --------         --------        --------         --------
          Total deposits .........................................           3,037            3,120           1,491            1,500
     Federal funds purchased and securities
       sold under agreements to repurchase .......................              75               44              37               22
     Warehouse lines of credit ...................................             296              150             153               64
     FHLB advances ...............................................             553              556             279              278
                                                                          --------         --------        --------         --------
          Total interest expense .................................           3,961            3,870           1,960            1,864
                                                                          --------         --------        --------         --------
Net interest income ..............................................           8,173            6,170           4,325            3,353
Provision for loan losses ........................................             543              358             279              189
                                                                          --------         --------        --------         --------
Net interest income after provision for loan losses ..............           7,630            5,812           4,046            3,164
                                                                          --------         --------        --------         --------

Non-interest income:
     Service charges on deposit accounts .........................           1,621            1,082             838              538
     Securities gains (losses) ...................................            (252)             104            (298)              62
     Mortgage banking income .....................................           2,825            1,672           1,314              716
     Other .......................................................             437              303             222              158
                                                                          --------         --------        --------         --------
          Total non-interest income ..............................           4,631            3,161           2,076            1,474
                                                                          --------         --------        --------         --------

Non-interest expense:
     Salaries and employee benefits ..............................           5,031            3,383           2,680            1,728
     Premises and equipment ......................................             806              605             403              308
     Other .......................................................           2,116            1,335           1,135              709
                                                                          --------         --------        --------         --------
          Total non-interest expense .............................           7,953            5,323           4,218            2,745
                                                                          --------         --------        --------         --------

Income before income taxes .......................................           4,308            3,650           1,904            1,893
Income tax expense ...............................................           1,542            1,314             719              682
                                                                          --------         --------        --------         --------
Net income .......................................................        $  2,766         $  2,336        $  1,185         $  1,211
                                                                          ========         ========        ========         ========
</TABLE>


                                       5
<PAGE>

<TABLE>
<CAPTION>
                                                                Six months ended June 30,                Three months ended June 30,
                                                                  2003             2002                   2003                2002
                                                               UNAUDITED         UNAUDITED              UNAUDITED          UNAUDITED
                                                               ---------         ---------              ---------          ---------
Basic earnings per common share:
<S>                                                           <C>                 <C>                 <C>                 <C>
     Weighted average shares outstanding ...........           4,306,742           3,299,834           4,308,263           3,299,754
     Net income per common share ...................          $     0.64          $     0.71          $     0.28          $     0.37
Diluted earnings per common share:
     Weighted average shares outstanding ...........           4,420,316           3,404,733           4,421,836           3,382,921
     Net income per common share ...................          $     0.63          $     0.69          $     0.27          $     0.36
</TABLE>


THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS


                                       6
<PAGE>

    COMMUNITY BANKSHARES, INC. - CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
                                                                                                          Six months ended June 30,
         (Dollar amounts in thousands)                                                                   2003                2002
                                                                                                       UNAUDITED           UNAUDITED
                                                                                                       ---------           ---------
Cash flows from operating activities:
<S>                                                                                                    <C>                <C>
Net income ...................................................................................         $   2,766          $   2,336
Adjustments to reconcile net income
  to net cash provided (used) by operating activities:
         Depreciation and amortization .......................................................               465                160
         Net amortization (accretion) of investment securities ...............................               133                 (1)
         Provision for loan losses ...........................................................               543                358
         Net realized (losses) on sale of securities available for sale ......................               (72)              (104)
         Proceeds from sales of real estate loans held for sale ..............................           155,668             74,766
         Originations of real estate loans held for sale .....................................          (157,661)           (74,361)
         Deferred income taxes ...............................................................               160                  -
Changes in operating assets and liabilities:
         Accrued interest receivable .........................................................               117                (87)
         Other assets ........................................................................               (79)               458
         Other liabilities ...................................................................               (25)               (77)
                                                                                                       ---------          ---------
         Net cash provided by operating activities ...........................................             2,015              3,448
                                                                                                       ---------          ---------
Cash flows from investing activities:
         Net (increase) decrease in interest bearing deposits in banks .......................              (750)             1,567
         Purchases of investment securities available-for-sale ...............................           (43,825)           (30,591)
         Proceeds from maturities of investment securities available-for-sale ................            42,286             15,096
         Proceeds from sales of investment securities available-for-sale .....................             2,068             18,529
         Loan originations and principal collections, net ....................................           (11,927)           (15,683)
         Proceeds from sale of other real estate owned .......................................                 -                267
         Purchases of premises and equipment .................................................              (746)              (444)
                                                                                                       ---------          ---------
         Net cash (used) in investing activities .............................................           (12,894)           (11,259)
                                                                                                       ---------          ---------
Cash flows from financing activities:
         Net increase in deposits ............................................................            18,750              5,375
         Net increase (decrease) in federal funds purchased
              and securities sold under agreements to repurchase .............................            (2,958)               549
         Net increase (decrease) under line of credit arrangement ............................             4,584               (502)
         Proceeds from issuance of common stock ..............................................                69                 40
         Costs incurred in business combination ..............................................                 -                (98)
         Dividends paid ......................................................................              (775)              (529)
                                                                                                       ---------          ---------
         Net cash provided by financing activities ...........................................            19,670              4,835
                                                                                                       ---------          ---------
Net increase (decrease) in cash and cash equivalents .........................................             8,791             (2,976)
Cash and cash equivalents - beginning of period ..............................................            38,569             25,649
                                                                                                       ---------          ---------
Cash and cash equivalents - end of period ....................................................         $  47,360          $  22,673
                                                                                                       =========          =========
</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS



                                       7
<PAGE>

<TABLE>
<CAPTION>
                                                                                                          Six months ended June 30,
         (Dollar amounts in thousands)                                                                   2003                 2002
                                                                                                       UNAUDITED           UNAUDITED
                                                                                                       ---------           ---------
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
<S>                                                                                                      <C>                  <C>
Cash payments for interest ...............................................................               $3,898               $3,933
                                                                                                         ------               ------
Cash payments for income tax .............................................................               $1,470               $1,379
                                                                                                         ======               ======

NON-CASH INVESTING ACTIVITIES
Transfer of loans receivable to other real estate owned ..................................               $  131               $    -
                                                                                                         ======               ======
</TABLE>






                                       8
<PAGE>

Summary of Significant Accounting Principles

         A summary of significant  accounting policies and the audited financial
statements for 2002 are included in Company's Annual Report on Form 10-K for the
year ended December 31, 2002.

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, Florence National Bank, Community Resource Mortgage Inc., and the
Bank of Ridgeway,  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 2002 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:

                                                       Six months ended June 30,
                                                         2003              2002
                                                         ----              ----
                                                         (Dollars in thousands)
Unrealized holding gains on
  available for sale securities ....................        $ 729         $ 373

Less: Reclassification adjustment for
 (losses) realized in  income ......................         (252)         (104)
                                                            -----         -----
Net unrealized gains ...............................          477           269
Tax effect .........................................         (162)          (97)
                                                            -----         -----

Net-of-tax amount ..................................        $ 315         $ 172
                                                            =====         =====





                                       9
<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 words "estimate,"  "project,"  "intend,",
"expect,"  "believe,"  "anticipate,"  "plan," and similar  expressions  identify
forward-looking  statements. The Corporation (CBI) cautions readers that forward
looking statements,  including without  limitation,  those relating to the CBI's
future   business   prospects,   ability  to   successfully   integrate   recent
acquisitions,  revenues,  adequacy of the  allowance  for loan  losses,  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  CBI's  reports  filed  with  the
Securities and Exchange Commission.

Critical Accounting Policies

         CBI  has  adopted  various  accounting   policies,   which  govern  the
application of accounting  principles generally accepted in the United States of
America  in the  preparation  of CBI's  financial  statements.  The  significant
accounting policies of CBI are described in detail in the notes to CBI's audited
consolidated financial statements included in CBI's Annual Report on Form 10-K.

         Certain accounting policies involve significant judgments and estimates
by  management,  which have a material  impact on the carrying  value of certain
assets and  liabilities.  Management  considers such  accounting  policies to be
critical accounting policies. The judgments and estimates used by management are
based on  historical  experience  and other  factors,  which are  believed to be
reasonable under the  circumstances.  Because of the nature of the judgments and
assumptions made by management, actual results could differ from these judgments
and  estimates,  which could have a material  impact on the  carrying  values of
assets and liabilities and the results of operations of CBI.

         CBI is a holding  company for  community  banks and a mortgage  company
and, as a financial  institution,  believes the  allowance  for loan losses is a
critical  accounting  policy that  requires the most  significant  judgments and
estimates used in preparation of its consolidated financial statements. Refer to
the sections  "Allowance for Loan Losses" and "Provision for Loan Losses" in the
Annual  Report  on Form  10-K  for  2002  for a  detailed  description  of CBI's
estimation process and methodology related to the allowance for loan losses.







                                       10
<PAGE>


RESULTS OF OPERATIONS:  SIX MONTHS ENDED JUNE 30, 2003 COMPARED TO JUNE 30, 2002
(all  comparisons  in this  section  are  period  to  period,  unless  specified
otherwise)

     COMMUNITY BANKSHARES, INC. - AVERAGE BALANCE SHEETS, YIELDS, AND RATES
<TABLE>
<CAPTION>
Six months ended June 30,                                                   2003                                  2002
                                                                            ----                                  ----
                                                                          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 in banks ........................   $    625    $     9      2.88%        $  1,311    $    10        1.53%
Investment securities taxable .............................     42,526        709      3.33%          40,229        916        4.55%
Investment securities--tax exempt .........................      9,317        176      3.78%             269          5        3.72%
Federal funds sold ........................................     26,001        149      1.15%          19,884        167        1.68%
Loans receivable ..........................................    336,889     11,091      6.58%         247,983      8,942        7.21%
                                                              --------     ------                   --------    -------
  Total interest earning assets ...........................    415,358     12,134      5.84%         309,676     10,040        6.48%
Cash and due from banks ...................................     14,098                                11,952
Allowance for loan losses .................................     (3,706)                               (2,947)
Premises and equipment ....................................      6,742                                 5,539
Goodwill ..................................................      7,834                                   921
Other assets ..............................................      3,224                                 3,022
                                                              --------                              --------
  Total assets ............................................   $443,550                              $328,163
                                                              ========                              ========

    Liabilities and Shareholders' Equity
Interest bearing deposits
Savings ...................................................   $ 67,394    $   416      1.23%        $ 46,577    $   403        1.73%
Interest bearing transaction accounts .....................     42,252        105      0.50%          42,158        171        0.81%
Time deposits .............................................    185,852      2,515      2.71%         142,278      2,546        3.58%
                                                              --------    -------                   --------    -------
  Total interest bearing deposits .........................    295,498      3,036      2.05%         231,013      3,120        2.70%
Short term borrowing ......................................     13,873         75      1.08%           4,603         44        1.91%
Warehouse lines payable ...................................     17,725        296      3.34%           7,232        150        4.15%
Other borrowings ..........................................     20,298        554      5.46%          20,280        556        5.48%
                                                              --------    -------                   --------    -------
  Total interest bearing liabilities ......................    347,394      3,961      2.28%         263,128      3,870        2.94%
Noninterest bearing demand deposits .......................     49,071                                34,344
Other liabilities .........................................      1,837                                 2,025
Shareholders' equity ......................................     45,248                                28,666
                                                              --------                              --------
  Total liabilities & shareholders' equity ................   $443,550                              $328,163
                                                              ========                              ========

Interest rate spread ......................................                            3.56%                                   3.54%
Net interest income and net yield on
earning assets ............................................               $ 8,173      3.93%                    $ 6,170        3.98%
 </TABLE>


Notes:
Yields and rates are annualized.




                                       11
<PAGE>


Earnings Performance, Six months ended June 30, 2003 compared to June 30, 2002

         The 2003 period was influenced by three major  factors:  interest rates
held  stable at  historically  low  levels,  higher  demand for  mortgage  loans
generated by continuing low interest rates, and the July 2002 acquisition of the
Bank of Ridgeway.  The prime  lending rate for the first half of 2003 was 4.25%,
compared to 4.75% for the same period in 2002. At the end of June the prime rate
declined further,  to 4.0%. Low interest rates put continuing  pressure on CBI's
net interest margin, which declined slightly to 3.93% from 3.98%. The margin was
somewhat  protected by relatively high interest  income at the mortgage  company
and the  acquisition  of the Bank of Ridgeway  with its large  dollar  volume of
relatively low cost deposits.

         Immediately  prior to its  acquisition  by CBI in July 2002 the Bank of
Ridgeway's  investment  portfolio had a fair market value  $675,000 in excess of
its amortized  cost. In connection  with the  acquisition  CBI established a new
amortized  cost basis for those  investments  that equaled  their market  value.
Because interest rates declined to historically low levels, many securities with
call  provisions  have been called  prior to  maturity.  Furthermore,  since the
Ridgeway  investments  were  recorded  at amounts in excess of their  redemption
values the proceeds of the redemptions (at par) were significantly less than the
recorded  amounts,  resulting in a $322,000  write-down of the Ridgeway purchase
premium in the second quarter of 2003. Management expects that the future effect
of this  amortization  will be modest in view of the fact  that  almost  all the
callable securities in the Bank of Ridgeway's portfolio have been called.

         The  substantial  dollar  and  percentage  changes  that are  discussed
throughout this report are due in large measure to the above factors.

         CBI's  net  income  was  $2,766,000  or $.64  per  basic  share in 2003
compared to  $2,336,000 or $.71 per basic share in 2002, an increase of $430,000
or 18.4%.  Diluted earnings were $.63 per share, down from $.69. The decrease in
earnings  per basic share and  earnings  per  diluted  share was the result of a
greater  number of shares  being  outstanding  in the 2003  period.  Most of the
additional  outstanding  shares  were  issued in  connection  with the  Ridgeway
acquisition.

         The  increase  in  net  income  resulted  from  the  operations  of the
subsidiaries,   which  are  summarized  in  the  following   chart  (dollars  in
thousands):

                                   Net Income
<TABLE>
<CAPTION>

For the periods ended June 30,                                             2003             2002            $ change        % change
                                                                           ----             ----            --------        --------
<S>                                                                     <C>               <C>               <C>               <C>
Orangeburg National Bank (ONB) ...............................          $ 1,376           $ 1,410           ($   34)          -2.41%
Sumter National Bank (SNB) ...................................              681               630                51            8.10%
Florence National Bank (FNB) .................................              266               155               111           71.61%
Community Resource Mortgage, Inc.(CRM) .......................              377               207               170           82.13%
Bank of Ridgeway (RW) ........................................              182                 0               182               na
Holding company costs and eliminations, net ..................             (116)              (66)              (50)         -81.25%
                                                                        =======           =======           =======          ======
Consolidated totals for CBI ..................................          $ 2,766           $ 2,336           $   430           18.31%
                                                                        =======           =======           =======          ======
</TABLE>



                                       12
<PAGE>

Net Income

         As noted above,  consolidated  net income for 2003,  increased from the
prior year by 18.4% or $430,000. The major components of this increase are shown
in the following table and discussed below.

          Summary Income Statement for Six Month Periods ended June 30,

                                      2003        2002       $ change   % change
                                      ----        ----       --------   --------
(Dollar amounts in thousands)
Interest income ...............    $ 12,134     $ 10,040     $  2,094     20.86%
Interest expense ..............      (3,961)      (3,870)         (91)     2.35%
                                   --------     --------     --------
Net interest income ...........       8,173        6,170        2,003     32.46%
Provision for loan losses .....        (543)        (358)        (185)    51.68%
Noninterest income ............       4,631        3,161        1,470     46.50%
Noninterest expense ...........      (7,953)      (5,323)      (2,630)    49.41%
Income tax expense ............      (1,542)      (1,314)        (228)    17.35%
                                   --------     --------     --------
Net income ....................    $  2,766     $  2,336     $    430     18.41%
                                   ========     ========     ========

Interest Income

         Total average interest  earning assets for 2003 increased  $105,682,000
or 34.1% over 2002.  The Bank of Ridgeway  acquisition  accounted  for about $89
million  or  84.7% of the  increase.  The  acquisition  also  accounted  for the
majority  of the  increases  in the volumes of specific  earning  assets.  Thus,
although the average yield on interest earning assets declined,  interest income
rose based on increased volumes.

Interest Expense

         Total  average   interest   bearing   liabilities  for  2003  increased
$84,266,000  or 32% over 2002. The Bank of Ridgeway  contributed  $65 million or
77.4% of the increase.  The  acquisition  also accounted for the majority of the
increases in the volumes of specific interest bearing  liabilities.  Even though
the volumes increased,  rates declined enough to produce a 0.66% decrease in the
average rate paid for interest bearing liabilities.

Net interest income

         Net  interest  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. For 2003 net interest income was up $2,003,000
or 32.5% over 2002, primarily as a result of the Bank of Ridgeway acquisition.

         CBI's net  interest  margin  was 3.93% for 2003  compared  to 3.98% for
2002. The low interest rate  environment  has put pressure on the margins of the
individual  banks.  This pressure has been mitigated  somewhat by the relatively


                                       13
<PAGE>

low cost deposits at the Bank of Ridgeway and increased  interest  income at the
mortgage company.


Provision for loan losses

         The  increase  in the  provision  for loan losses was mostly due to the
Bank  of  Ridgeway  acquisition  after  the  second  quarter  of  2002  and  the
establishment of a loan loss reserve by Community Resource Mortgage,  also after
the second quarter of 2002.


Non-Interest Income

         Non-interest  income for 2003 increased  $1,470,000  over 2002. Most of
the increase was due to mortgage banking income which increased $1,153,000,  the
vast majority of which was  generated by Community  Resource  Mortgage.  Service
charges and other income from Bank of Ridgeway provided  approximately  $395,000
of the non-interest income.

         Gains (losses) on sales of securities  reflected a net loss of $252,000
in 2003. This is the result of a $322,000 pretax charge to income  recognized in
connection with the write-down on called securities of the investment  portfolio
for the Bank of Ridgeway,  discussed above. In the first year of the merger with
the  Bank  of  Ridgeway,  CBI has  expensed  approximately  47% of the  acquired
investment premiums in the Ridgeway portfolio, due mostly to the large number of
securities  being called prior to maturity.  Management  does not expect  future
amortization  of the  remaining  premiums  will  have a  significant  impact  on
earnings, because there are very few remaining securities subject to early call.


Non-Interest Expense

         Approximately   $1,157,000  or  44%  of  the  $2,630,000   increase  in
non-interest expense was accounted for by the Bank of Ridgeway acquisition.  The
remaining  increase was due to volume increases at Community  Resource Mortgage,
which has a commission  based  compensation  system  based on loan  volume,  and
normal increases at the other banks.


Income Taxes

         Income tax expense for 2003 increased  $228,000 or 17.5% over 2002. The
average tax rate for 2003 was 35.8%,  slightly  decreased  from 2002 when it was
36%.

Profitability

         A common way to review  earnings  is through the ROA (return on average
assets) and the ROE (return on average equity).  Based on operating  results for
the six months ended June 30, 2003 and 2002, the following table is presented.




                                       14
<PAGE>


                                        Period ended June 30,
                                       2003               2002
                                       ----               ----
                                        (dollars in thousands)
Average assets ...................   $443,550           $328,163
ROA ..............................      1.25%              1.42%
Average equity ...................    $45,248            $28,666
ROE ..............................     12.23%             16.30%
Net income .......................     $2,766             $2,336

The decline in ROA and ROE is primarily related to the increase in shareholders'
equity resulting from the Bank of Ridgeway acquisition in July.

RESULTS  OF  OPERATIONS  FOR THE  QUARTERS  ENDED  JUNE 30,  2003 AND 2002  (all
comparisons in this section are quarter to quarter, unless otherwise specified)

         For the quarter ended June 30, 2003, CBI earned a  consolidated  profit
of  $1,185,000,  compared to  $1,211,000  for the  comparable  period of 2002, a
decrease  of 2.1% or  $26,000.  Basic  earnings  per share were $.28 in the 2003
quarter  compared  to $.37  for the  2002  quarter.  The  changes  in the  items
comprising net income, which are discussed below,  resulted from essentially the
same factors  discussed  above  regarding  the results of operation  for the six
months ended June 30, 2003.

              Summary Income Statement for Quarters ended June 30,

                                        2003       2002      $ change   % change
                                        ----       ----      --------   -------
(Dollar amounts in thousands)
Interest income .................      6,285       5,217       1,068      20.47%
Interest expense ................     (1,960)     (1,864)        (96)      5.15%
                                      ------      ------      ------
Net interest income .............      4,325       3,353         972      28.99%
Provision for loan losses .......       (279)       (189)        (90)     47.62%
Noninterest income ..............      2,076       1,474         602      40.84%
Noninterest expense .............     (4,218)     (2,745)     (1,473)     53.66%
Income tax expense ..............       (719)       (682)        (37)      5.43%
                                      ------      ------      ------
Net income ......................      1,185       1,211         (26)     -2.15%
                                      ======      ======      ======

Interest Income

         Interest  income  increased  by over $1  million,  or 20%,  in the 2003
quarter compared to the 2002 quarter.  The largest part of this increase was the
interest income generated by the Bank of Ridgeway acquisition.

Interest expense

         Interest  expense  increased only slightly in the 2003 quarter compared
to the 2002 quarter.  Even though the  acquisition of the Bank of Ridgeway added
significantly  to interest  bearing  liabilities,  the overall decline in market
interest rates offset most of that change.


                                       15
<PAGE>

Provision for loan losses

         The  increase in the  provision  for loan losses was due to the Bank of
Ridgeway acquisition after the second quarter of 2002 and the establishment of a
loan loss reserve by CRM, also after the second quarter of 2002.


Non-Interest Income

         Non-interest  income for the 2003 quarter  increased  $602,000 over the
2002  quarter.  Most of the  increase was due to mortgage  banking  income which
increased $598,000, the vast majority of which was generated by CRM.

         Gains (losses) on sales of securities  reflected a net loss of $298,000
in 2003. This is the result of the $322,000  pretax charge to income  recognized
in  connection  with the  write-down  of  called  securities  in the  investment
portfolio for the Bank of Ridgeway, discussed above.


Non-Interest Expense

         Approximately   $574,000   or  39%  of  the   $1,473,000   increase  in
non-interest expense was accounted for by the Bank of Ridgeway acquisition.  The
remaining  increase was due to volume increases at Community  Resource Mortgage,
which has a commission based  compensation  system,  and normal increases at the
other banks.


Income Taxes

         Income tax expense for the 2003 quarter  increased $37,000 or 5.4% over
the 2002 quarter.


CHANGES IN FINANCIAL POSITION

Investment portfolio

         The investment portfolio is comprised of available for sale securities.
CBI and its banks usually purchase short-term issues (ten years or less) of U. S
Treasury and U. S. Government agency securities for investment purposes. At June
30,  2003 the  available  for sale  portfolio  totaled  $52,791,000  compared to
$53,066,000 at December 31, 2002, a decrease of 0.5% or $275,000.  The following
chart  summarizes  the  aggregate  investment  portfolios  at June 30,  2003 and
December 31, 2002.






                                       16
<PAGE>


                                                            June 30, 2003
                                                            -------------
                                                     Amortized            Fair
Available for sale                                     Cost               Value
                                                       ----               -----
(Dollar amounts in thousands)
U.S. Government and federal agencies .............    $39,421           $39,648
State and local governments ......................      8,106             8,828
Mortgage backed securities .......................      2,610             2,619
Other equity securities ..........................      1,696             1,696
                                                      -------           -------
Total ............................................    $51,833           $52,791
                                                      =======           =======

                                                          December 31, 2002
                                                          -----------------
                                                     Amortized            Fair
Available for sale                                     Cost               Value
                                                       ----               -----
(Dollar amounts in thousands)
U.S. Government and federal agencies .............    $41,488           $41,531
State and local governments ......................      9,514             9,625
Other equity securities ..........................      1,910             1,910
                                                      -------           -------
Total ............................................    $52,912           $53,066
                                                      =======           =======



Loan portfolio

         The loan  portfolio  is primarily  consumer,  and small and medium size
business oriented. At June 30, 2003 the loan portfolio was $318,217,000 compared
to  $306,484,000  at December  31, 2002, a 3.8% or  $11,733,000  increase.  This
increase was  attributable  to normal growth of the banks in a low interest rate
environment.  The following chart summarizes the loan portfolio at June 30, 2003
and December 31, 2002.

                                             June 30, 2003     Dec. 31, 2002
                                             -------------     -------------
                                            (Dollar amounts in thousands)
Commercial ................................     $80,045           $78,210
Real estate ...............................     200,570           191,844
Loans to individuals ......................      37,602            36,430
                                               --------          --------
Total .....................................    $318,217          $306,484
                                               ========          ========


Loans held for sale

         The above loan  portfolio  table does not include  loans held for sale.
Loans held for sale are loans  originated by CBI's banks or mortgage company for
sale to others and are held pending completion of the sale. The vast majority of
such loans are  originated by Community  Resource  Mortgage and are  one-to-four
family residential  mortgage loans. At June 30, 2003 loans held for sale totaled
$26,657,000  compared to $24,664,000 at December 31, 2002, an 8.1% or $1,993,000
increase.  The  amount  of  loans  held  for  sale  is  subject  to  significant
fluctuation depending on current conditions.


                                       17
<PAGE>

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 June 30, 2003 and December 31, 2002.

                                                  June 30, 2003    Dec. 31, 2002
                                                  -------------    -------------
                                                   (Dollar amounts in thousands)
Past due 90 days + and still accruing loans ....... $  548             $1,740
Non-accrual loans ................................. $2,300             $  796
Impaired loans (included in nonaccrual) ........... $2,300             $  796
Other real estate owned ........................... $  236             $  219

         The  amount  of   non-accruing   loans  at  June  30,  2003  is  mostly
attributable  to one loan, in the approximate  amount of $1.3 million.  The loan
involves principals who are having a legal dispute with one another.  Management
believes  that  CBI's  collateral  position  is  sufficient  so  that no loss is
expected.

         Management  considers the past due and non-accrual  amounts at June 30,
2003 to be reasonable in relation to the size of the portfolio and manageable in
the normal course of business.

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


Allowance for Loan Losses

         The  allowance  for loan losses is increased by the  provision for loan
losses,  which is a direct  charge  to  expense.  Losses on  specific  loans are
charged against the allowance in the period in which management  determines that
such loans become uncollectible.  Recoveries of previously charged-off loans are
credited to the allowance.

         Management  reviews  its  allowance  for loan  losses  in  three  broad
categories: commercial, real estate and loans to individuals. The combination of
a relatively short operating history and relatively high asset quality precludes
management from establishing a meaningful  specific loan loss percentage for the
computation of the allowance for each category.  Instead  management  assigns an
estimated percentage factor to each in the computation of the overall allowance.
These estimates are not, however,  intended to restrict CBI's ability to respond
to  losses.  CBI  charges  losses  from  any  segment  of the  portfolio  to the
allowance,  regardless  of the  allocation.  In general  terms,  the real estate
portfolio  is  subject  to the  least  risk,  followed  by the  commercial  loan
portfolio,  followed by the loans to individuals portfolio.  The banks' internal
and external  loan review  programs  from time to time  identify  loans that are
subject to specific  weaknesses  and such loans are reviewed for a specific loan
loss allowance.

         Based on the current levels of non-performing  and other problem loans,
management  believes  that loan  charge-offs  in 2003 will be less than the 2002
levels  as  such  loans  progress  through  the  collection,   foreclosure,  and
repossession process. Management believes that the allowance for loan losses, as


                                       18
<PAGE>

of June 30, 2003, is sufficient to absorb 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 the provision for loan losses is adjusted.

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

<TABLE>
<CAPTION>
                                                                       Six months ended          Year ended         Six months ended
(Dollar amounts in thousands)                                            June 30, 2003          Dec. 31, 2002        June 30, 2002
                                                                         -------------          -------------        -------------
<S>                                                                        <C>                     <C>                     <C>
Allowance at beginning of period ...........................               $ 3,572                 $ 3,274                 $ 2,830
Provision expense ..........................................                   543                   1,033                     358
Net charge offs ............................................                  (193)                   (734)                   (328)
                                                                           -------                 -------                 -------
Allowance at end of period .................................               $ 3,922                 $ 3,573                 $ 2,860
                                                                           =======                 =======                 =======
Allowance / outstanding loans ..............................                  1.23%                   1.17%                   1.17%
</TABLE>


Intangible assets

         CBI adopted FASB No. 142,  Goodwill and Other Intangible  Assets, as of
January 1, 2002.  As of June 30,  2003  intangible  assets  totaled  $7,773,000,
compared to  $7,896,000  at December  31,  2002,  a decrease  of  $123,000.  The
decrease  represented  amortization of the core deposit  intangible  acquired in
conjunction with the Bank of Ridgeway acquisition.

Deposits

         Deposits  at June 30,  2003 were  $18,750,000  or 5.6%,  higher than at
December 31, 2002.  This increase was the result of normal  business  growth for
the banks.

         Time deposits greater than $100,000 at June 30, 2003 were $1,256,000 or
1.8% greater than December 31, 2002.

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 Banks' 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.

         As of June 30,  2003 the loan to deposit  ratio was 89.4%  compared  to
90.9% at December 31, 2002 and 93.9% at June 30, 2002. The Ridgeway  acquisition
in July 2002  provided  a  significant  amount of  additional  liquidity  to the


                                       19
<PAGE>

company as a whole,  which has been used in meeting the overall demand for loans
since the acquisition.

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

Capital resources

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

<TABLE>
<CAPTION>
                                                                                                                    Minimum required
                                                                                                                       for capital
                                                                                    June 30, 2003    Dec. 31, 2002      adequacy
                                                                                    -------------    -------------      --------
<S>                                                                                   <C>                <C>              <C>
Tier 1 capital to average total assets ...............................                 8.67%              8.29%           4.00%
Tier 1 capital to risk weighted assets ...............................                11.85%             11.56%           4.00%
Total capital to risk weighted assets ................................                13.00%             12.70%           8.00%
</TABLE>

         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 regulatory requirement for being considered well capitalized.

Dividends

         CBI declared and paid a quarterly cash dividend of nine cents per share
during the second quarter of 2003 bringing the total dividends paid for the year
to eighteen cents per share. The total amount of these dividends was $775,000.

Accounting and Reporting Changes

         In April 2003, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial  Accounting  Standards  ("SFAS") No. 149,  "Amendment  of
Statement 133 on Derivative  Instruments and Hedging  Activities."  SFAS No. 149
amends and clarifies  accounting for derivative  instruments,  including certain
derivative  contracts  embedded in other  contracts  and loan  commitments  that
relate to the  origination  of  mortgage  loans held for sale,  and for  hedging
activities under SFAS No. 133. SFAS No. 149 is generally effective for contracts
entered into or modified  after June 30,  2003.  The adoption of SFAS No. 149 is
not  expected to have a material  effect on  financial  condition  or  operating
results of the Company.

         In May 2003,  the FASB  issued SFAS No.  150,  "Accounting  for Certain
Financial Instruments with Characteristics of both Liabilities and Equity." SFAS
No. 150 establishes  standards for how an issuer classifies and measures certain
financial  instruments with  characteristics  of both liabilities and equity. It
requires that an issuer classify a financial instrument that is within its scope
as a liability (or as an asset in some circumstances). Many of those instruments
were previously  classified as equity.  SFAS No. 150 is generally  effective for
financial instruments entered into or modified after May 31, 2003, and otherwise
is effective at the beginning of the first interim period  beginning  after June
15,  2003.  The  adoption of SFAS No. 150 did not have a material  effect on the
financial condition or operating results of the Company.


                                       20
<PAGE>

Off-Balance-Sheet Activities:

         The Banks are  parties to credit  related  financial  instruments  with
off-balance-sheet  risk in the normal  course of business to meet the  financing
needs of their customers.  These financial  instruments  include  commitments to
extend  credit and  standby  letters of credit.  Such  commitments  involve,  to
varying  degrees,  elements  of credit and  interest  rate risk in excess of the
amount recognized in the consolidated balance sheets.

         The Banks'  exposure to credit loss is represented  by the  contractual
amount of these  commitments.  The Banks use the same credit  policies in making
commitments as they do for on-balance-sheet instruments.

         At June 30, 2003, the following financial  instruments were outstanding
whose contract amounts represent credit risk:
                                                                     Contract
                                                                      Amounts
                                                                      -------
                                                                   June 30, 2003
                                                                   -------------


Commitments to grant loans .........................................  $19,979
Unfunded commitments under lines of credit .........................   17,113
Standby letters of credit ..........................................    4,176

         Commitments  to extend  credit are  agreements to lend to a customer as
long as there is no  violation of any  condition  established  in the  contract.
Commitments  generally have fixed expiration dates or other termination  clauses
and may require  payment of a fee. Since many of the commitments are expected to
expire without being drawn upon, the total commitment amounts do not necessarily
represent future cash requirements. The amount of collateral obtained, if deemed
necessary by the Banks upon extension of credit, is based on management's credit
evaluation of the counter-party. Collateral held varies but may include personal
residences, accounts receivable,  inventory, property, plant, and equipment, and
income-producing commercial properties.

         Standby  letters of credit are  conditional  commitments  issued by the
Banks to guarantee the performance of a customer to a third party. Those letters
of credit are primarily issued to support private  borrowing  arrangements.  All
letters of credit are short-term guarantees. The credit risk involved in issuing
letters of credit is  essentially  the same as that  involved in extending  loan
facilities to customers.  The Banks generally hold collateral  supporting  those
commitments if deemed necessary. Since many of the standby letters of credit are
expected to expire  without being drawn upon, the total letter of credit amounts
do not necessarily represent future cash requirements.

         To reduce  credit risk related to the use of  credit-related  financial
instruments,  the Bank might deem it necessary to obtain collateral.  The amount
and nature of the collateral  obtained is based on the Banks' credit  evaluation
of the  customer.  Collateral  held  varies but may  include  cash,  securities,
accounts receivable, inventory, property, plant and equipment and real estate.




                                       21
<PAGE>


Item 3. Quantitative and Qualitative Disclosures about Market Risk

         Market risk is the risk of loss from adverse  changes in market  prices
and rates. CBI'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 CBI 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 CBI'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.

         CBI's  Asset/Liability  Committee uses a simulation  model to assist in
achieving  consistent growth in net interest income while managing interest rate
risk.  According to the model as of June 30, 2003, CBI is positioned so that net
interest income would increase  $441,000 and net income would increase  $293,000
in the next twelve months if interest  rates rose 100 basis points.  Conversely,
net interest income would decline $441,000 and net income would decline $293,000
in the next twelve months if interest  rates  declined 100 basis points.  In the
current interest rate  environment,  it is unlikely that there will be any large
rate decreases in the immediate  future.  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 CBI and its  customers  could  undertake in response to
changes in interest rates.

         As of June 30,  2003 there was no  significant  change in the  interest
rate  sensitivity  analysis for the various changes in interest rates calculated
as of December 31, 2002. The foregoing disclosures related to the market risk of
CBI should be read in connection  with  Management's  Discussion and Analysis of
Financial Position and Results of Operations  included in the 2002 Annual Report
on Form 10-K.



Item 4. Controls and Procedures

(a) Based on their evaluation of the issuer's disclosure controls and procedures
(as defined in 17 C.F.R. Sections  240.13a-14(c) and 240.15d-14(c)) as of a date
within 90 days prior to the filing of this quarterly report,  the issuer's chief
executive  officer and chief financial  officer concluded that the effectiveness
of such controls and procedures was adequate.

(b) There were no significant  changes in the issuer's  internal  controls or in
other factors that could  significantly  affect these controls subsequent to the
date of their  evaluation,  including  any  corrective  actions  with  regard to
significant deficiencies and material weaknesses.






                                       22
<PAGE>


Part II--Other Information

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

CBI held an Annual Meeting of Shareholders on May 19, 2003.

The following persons were elected to the Board for terms of three years:

E. J Ayers,  Jr.,  Alvis J. Bynum,  J. Otto  Warren,  Jesse A. Nance,  and J. V.
Nicholson.  The  following  person  was  elected  to the Board for a term of two
years:  Thomas B. Edmunds.  The following  person was elected to the Board for a
term of one year: William A. Harwell.

The vote tally was as follows:
<TABLE>
<CAPTION>
                                  Total number    Voting for        Voting       Abstaining     Present at
                                   of shares      ----------    against or to    ----------    meeting and
                                  eligible to                      withhold                     not voting
                                      vote                        authority                    -----------
                                      ----                        ---------
Election of directors
<S>                              <C>             <C>                <C>                <C>            <C>
     E. J Ayers, Jr.,            4,305,614       3,054,590          2,880              0              0
     Alvis J. Bynum              4,305,614       3,056,690            780              0              0
     J. Otto Warren              4,305,614       3,054,590          2,880              0              0
     Jesse A. Nance              4,305,614       3,054,590          2,880              0              0
     J. V. Nicholson             4,305,614       3,056,690            780              0              0
     Thomas B. Edmunds           4,305,614       3,056,340          1,130              0              0
     William A. Harwell          4,305,614       3,054,590          2,880              0              0
</TABLE>








                                       23
<PAGE>


Item 6.  Exhibits and Reports on Form 8-K

(a) Exhibits

None


b) Reports on Form 8-K.  Form 8-K filed  April 28,  2003,  pursuant to Item 9 of
that Form with respect to the information  provided  pursuant to Item 12 of that
Form.


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: August 13, 2003

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)




                                       24
<PAGE>

                                 CERTIFICATIONS

         I, E. J. Ayers, Jr., certify that:

         1. I have  reviewed  this  quarterly  report on Form 10-Q of  Community
Bankshares Inc.;

         2. Based on my knowledge,  this  quarterly  report does not contain any
untrue  statement of a material fact or omit to state a material fact  necessary
to make the  statements  made,  in light of the  circumstances  under which such
statements  were made, not misleading with respect to the period covered by this
quarterly report;

         3. Based on my knowledge, the financial statements, and other financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

         4. The registrant's other certifying officers and I are responsible for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

         a) designed  such  disclosure  controls and  procedures  to ensure that
material  information  relating to the  registrant,  including its  consolidated
subsidiaries, is made known to us by others within those entities,  particularly
during the period in which this quarterly report is being prepared;

         b) evaluated the effectiveness of the registrant's  disclosure controls
and  procedures  as of a date  within 90 days prior to the  filing  date of this
quarterly report (the "Evaluation Date"); and

         c)  presented  in this  quarterly  report  our  conclusions  about  the
effectiveness of the disclosure  controls and procedures based on our evaluation
as of the Evaluation Date;

         5. The  registrant's  other  certifying  officers and I have disclosed,
based on our most recent evaluation,  to the registrant's auditors and the audit
committee  of  registrant's  board  of  directors  (or  persons  performing  the
equivalent functions):

         a) all significant  deficiencies in the design or operation of internal
controls  which  could  adversely  affect  the  registrant's  ability to record,
process,  summarize  and  report  financial  data  and have  identified  for the
registrant's auditors any material weaknesses in internal controls; and

         b) any fraud,  whether or not  material,  that  involves  management or
other  employees  who  have a  significant  role  in the  registrant's  internal
controls; and

         6. The registrant's  other certifying  officers and I have indicated in
this quarterly report whether or not there were significant  changes in internal
controls or in other factors that could  significantly  affect internal controls
subsequent to the date of our most recent  evaluation,  including any corrective
actions with regard to significant deficiencies and material weaknesses.



Date: August 13, 2003                  s/E. J. Ayers, Jr.
                                       -----------------------------------
                                       E. J. Ayers, Jr.

                                       Chairman and CEO



                                       25
<PAGE>

                                 CERTIFICATIONS

         I, William W. Traynham, certify that:

         1. I have  reviewed  this  quarterly  report on Form 10-Q of  Community
Bankshares Inc.;

         2. Based on my knowledge,  this  quarterly  report does not contain any
untrue  statement of a material fact or omit to state a material fact  necessary
to make the  statements  made,  in light of the  circumstances  under which such
statements  were made, not misleading with respect to the period covered by this
quarterly report;

         3. Based on my knowledge, the financial statements, and other financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

         4. The registrant's other certifying officers and I are responsible for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

         a) designed  such  disclosure  controls and  procedures  to ensure that
material  information  relating to the  registrant,  including its  consolidated
subsidiaries, is made known to us by others within those entities,  particularly
during the period in which this quarterly report is being prepared;

         b) evaluated the effectiveness of the registrant's  disclosure controls
and  procedures  as of a date  within 90 days prior to the  filing  date of this
quarterly report (the "Evaluation Date"); and

         c)  presented  in this  quarterly  report  our  conclusions  about  the
effectiveness of the disclosure  controls and procedures based on our evaluation
as of the Evaluation Date;

         5. The  registrant's  other  certifying  officers and I have disclosed,
based on our most recent evaluation,  to the registrant's auditors and the audit
committee  of  registrant's  board  of  directors  (or  persons  performing  the
equivalent functions):

         a) all significant  deficiencies in the design or operation of internal
controls  which  could  adversely  affect  the  registrant's  ability to record,
process,  summarize  and  report  financial  data  and have  identified  for the
registrant's auditors any material weaknesses in internal controls; and

         b) any fraud,  whether or not  material,  that  involves  management or
other  employees  who  have a  significant  role  in the  registrant's  internal
controls; and

         6. The registrant's  other certifying  officers and I have indicated in
this quarterly report whether or not there were significant  changes in internal
controls or in other factors that could  significantly  affect internal controls
subsequent to the date of our most recent  evaluation,  including any corrective
actions with regard to significant deficiencies and material weaknesses.



Date: August 13, 2003                       s/William W. Traynham
                                            -----------------------------------
                                            William W. Traynham
                                            President and CFO




                                       26