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 Sept.30, 2000              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)



         Indicate by checkmark  whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
Registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. Yes [X]  No [ ]

         State the number of shares  outstanding of each of the issuer's classes
of common stock, as of the latest  practicable date:  3,193,845 shares of common
stock outstanding as of October 25, 2000.


<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 .....   9
          and Results of Operations
Item 3    Quantitative and Qualitative Disclosures about Market Risk ......  17


                      Part II-Other Information
Item 6    Exhibits and Reports on Form 8-K ................................  18




















                                       2
<PAGE>


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

<TABLE>
<CAPTION>
                                                                                                    UNAUDITED
                                                                                                     Sept. 30,        December 31,
         ASSETS                                                                                        2000                1999
                                                                                                       ----                ----
Cash and due from other financial institutions:
<S>                                                                                                <C>                    <C>
     Non-interest bearing ............................................................             $  11,959              $  12,275
     Federal funds sold ..............................................................                 6,328                  8,040
                                                                                                   ---------              ---------
         Total cash and cash equivalents .............................................                18,287                 20,315
Interest bearing deposits in other banks .............................................                 1,569                    788
Investment securities:
     Securities held to maturity .....................................................                12,371                 13,369
     Securities available for sale ...................................................                35,577                 30,566

Loans ................................................................................               186,407                157,358
     Less, allowance for loan losses .................................................                (2,270)                (1,936)
                                                                                                   ---------              ---------
         Net loans ...................................................................               184,137                155,422

Premises and equipment ...............................................................                 4,471                  4,619
Accrued interest  receivable .........................................................                 2,243                  1,700
Deferred income taxes ................................................................                   898                    858
Other assets .........................................................................                   291                    393
                                                                                                   ---------              ---------

         Total assets ................................................................             $ 259,844              $ 228,030
                                                                                                   =========              =========

         LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits:
     Non-interest bearing ............................................................             $  29,566              $  26,878
     Interest bearing ................................................................               181,725                157,486
                                                                                                   ---------              ---------
         Total deposits ..............................................................               211,291                184,364
Federal funds purchased and securities
     sold under agreements to repurchase .............................................                 5,757                  2,782
Federal Home Loan Bank advances ......................................................                19,050                 19,420
Other liabilities ....................................................................                 1,514                  1,219
                                                                                                   ---------              ---------
         Total liabilities ...........................................................               237,612                207,785
                                                                                                   ---------              ---------

Shareholders' equity:
     Common stock
         No par, authorized shares 12,000,000, issued and
         outstanding 3,193,845 in 2000 and 3,191,462 in 1999 .........................                15,925                 14,207
     Retained earnings ...............................................................                 6,730                  6,549
     Accumulated other comprehensive (loss) ..........................................                  (423)                  (511)
                                                                                                   ---------              ---------
         Total shareholders' equity ..................................................                22,232                 20,245
                                                                                                   ---------              ---------

         Total liabilities and shareholders' equity ..................................             $ 259,844              $ 228,030
                                                                                                   =========              =========
</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS


                                       3
<PAGE>

             COMMUNITY BANKSHARES, INC. - CONSOLIDATED STATEMENT OF
                         CHANGES IN SHAREHOLDERS' EQUITY
        for the nine months ended September 30, 2000 and 1999 (Unaudited)

<TABLE>
<CAPTION>
                                                                                                        Accumulated
                                                                     Common Stock                          Other          Total
                                                                      ------------           Retained   Comprehensive  Shareholders'
                                                                   Shares        Amount      Earnings   Income (Loss)     Equity
                                                                   ------        ------      --------   -------------     ------
                                                                                    (dollar amounts in thousands)
<S>                                                              <C>           <C>            <C>            <C>         <C>
Balances at Dec. 31, 1998 ....................................   3,047,686     $   14,648     $    4,975     $  36       $   19,659
Comprehensive income:
     Net income ..............................................                                     1,586                      1,586
     Other comprehensive income (loss) net of tax:
     Unrealized gain (loss) on securities ....................                                                (526)            (526)
Issuance of common stock .....................................      38,715            187                                       187
Redemption of common stock ...................................     (47,100)          (630)                                     (630)
Dividends paid ...............................................           -              -           (607)        -             (607)
                                                                ----------     ----------     ----------     -----       ----------
Balances at September 30, 1999 ...............................   3,039,301     $   14,205     $    5,954     $(490)      $   19,669
                                                                ==========     ==========     ==========     =====       ==========

Balances at Dec. 31, 1999 ....................................   3,191,462     $   14,207     $    6,549     $(511)      $   20,245
Comprehensive income:
     Net income ..............................................                                     2,342                      2,342
     Other comprehensive income (loss) net of tax:
     Unrealized gain (loss) on securities ....................                                                  88               88
Cash-in-lieu of shares in connection .........................        (137)
     with Jan. 31, 2000 stock dividend
Market value of shares issued in five ........................           -          1,708         (1,708)                         -
     percent stock dividend
Shares issued under option agreement .........................       2,520             20                                        19
Costs of stock dividend ......................................                        (10)                                      (10)
Dividends paid ...............................................           -              -           (453)        -             (452)
                                                                ----------     ----------     ----------     -----       ----------
Balances at Sept. 30, 2000 ...................................   3,193,845     $   15,925     $    6,730     $(423)      $   22,232
                                                                ==========     ==========     ==========     =====       ==========
</TABLE>



THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS


                                       4
<PAGE>

         COMMUNITY BANKSHARES, INC. - CONSOLIDATED STATEMENTS OF INCOME

<TABLE>
<CAPTION>
                                                                           Nine months ended Sept. 30,  Three months ended Sept. 30,
                                                                               2000            1999          2000           1999
                                                                            UNAUDITED       UNAUDITED     UNAUDITED       UNAUDITED
                                                                            ---------       ---------     ---------       ---------
Interest and dividend income:                                                               $ amounts in thousands
<S>                                                                        <C>              <C>            <C>              <C>
    Interest and fees on loans .....................................       $  12,184        $  8,886       $   4,421       $   3,254
    Deposits with other financial institutions .....................              53              90              25              11
    Investment securities:
      Interest - U. S. Treasury and
        U. S. Government Agencies ..................................           2,159           1,727             727             646
      Dividends ....................................................              96              80              36              24
                                                                           ---------        ---------      ---------       ---------
         Total investment securities ...............................           2,255           1,807             763             670
    Federal funds sold and securities
      purchased under agreements to resell .........................             252             454              64             157
                                                                           ---------        ---------      ---------       ---------
         Total interest and dividend income ........................          14,744          11,237           5,273           4,092
                                                                           ---------        ---------      ---------       ---------

Interest expense:
    Deposits:
      Certificates of deposit of $100,000 or more ..................           1,666           1,069             593             406
      Other ........................................................           4,473           3,369           1,642           1,201
                                                                           ---------        ---------      ---------       ---------
         Total deposits ............................................           6,139           4,438           2,235           1,607
    Federal funds purchased and securities
      sold under agreements to repurchase ..........................             117             137              53              62
    Federal Home Loan Bank advances ................................             863             441             337             158
                                                                           ---------        ---------      ---------       ---------
         Total interest expense ....................................           7,119           5,016           2,625           1,827
                                                                           ---------        ---------      ---------       ---------
Net interest income ................................................           7,625           6,221           2,648           2,265
Provision for loan losses ..........................................             490             439             152             166
                                                                           ---------        ---------      ---------       ---------
Net interest income after provision for loan losses ................           7,135           5,782           2,496           2,099
                                                                           ---------        ---------      ---------       ---------

Non-interest income:
    Service charges on deposit accounts ............................           1,059             723             363             268
    Other ..........................................................             290             271             101              76
                                                                           ---------        ---------      ---------       ---------
         Total non-interest income .................................           1,349             994             464             344
                                                                           ---------        ---------      ---------       ---------
Non-interest expense:
    Salaries and employee benefits .................................           2,831           2,569             939             886
    Premises and equipment .........................................             690             670             234             233
    Other ..........................................................           1,331           1,188             452             411
                                                                           ---------        ---------      ---------       ---------
         Total non-interest expense ................................           4,852           4,427           1,625           1,530
                                                                           ---------        ---------      ---------       ---------
Net income before taxes ............................................           3,632           2,349           1,335             913
Provision for income taxes .........................................           1,290             763             470             299
                                                                           ---------        ---------      ---------       ---------
         Net income ................................................       $   2,342        $  1,586       $     865       $     614
                                                                           =========        =========      =========       =========
Basic earnings per common share:*
    Weighted average shares outstanding ............................       3,195,245        3,189,288      3,194,965       3,189,288
    Net income per common share ....................................           $0.73            $0.50          $0.27           $0.19
    Diluted earnings per common share*:
    Weighted average shares outstanding ............................       3,216,733        3,216,194      3,216,470       3,216,194
    Net income per common share ....................................           $0.73            $0.49          $0.27           $0.19
</TABLE>
*Per share  information  has been  retroactively  adjusted to reflect a 5% stock
dividend paid on Jan. 31, 2000.


THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS

                                       5
<PAGE>

        COMMUNITY BANKSHARES, INC. - CONSOLIDATED STATEMENTS OF CASH FLOW

<TABLE>
<CAPTION>
                                                                                                     Nine months ended Sept. 30,
                                                                                                     2000                   1999
                                                                                                   UNAUDITED             UNAUDITED
                                                                                                   ---------             ---------
                                                                                                    (dollar amounts in thousands)
Cash flows from operating activities:
<S>                                                                                                 <C>                    <C>
Net income ...........................................................................              $  2,342               $  1,586
Adjustments to reconcile net income
  to net cash used in operating
  activities:
    Depreciation .....................................................................                   360                    350
    Provision for loan losses ........................................................                   490                    439
    Accretion of discounts and
      amortization of premiums -
      investment securities - net ....................................................                    (7)                   (14)
Changes in assets and liabilities:
    Proceeds of sale of loans held for resale ........................................                 4,861                  8,446
    Origination of loans held for resale .............................................                (4,861)                (7,992)
    (Increase) in interest receivable ................................................                  (543)                  (471)
    (Increase) decrease in other assets ..............................................                    62                    (11)
    (Decrease) increase in other liabilities .........................................                   295                   (105)
                                                                                                    --------               --------
    Net cash provided by operating activities ........................................                 2,999                  2,228
                                                                                                    --------               --------

Cash flows from investing activities:
    Net decrease (increase) in interest bearing deposits .............................                  (781)                 1,482
    Proceeds from maturities of
      Investment securities - held to maturity .......................................                 1,500                  5,919
    Purchases of investment securities - held to maturity ............................                  (501)                (4,101)
    Proceeds from maturities of
      Investment securities - available for sale .....................................                 3,551                  6,636
    Purchases of investment securities - available for sale ..........................                (8,468)               (19,046)
    Net (increase) in loans to customers .............................................               (29,205)               (33,752)
    Purchase of premises and equipment ...............................................                  (212)                (1,144)
                                                                                                    --------               --------
      Net cash (used) in investing activities ........................................               (34,116)               (44,006)
                                                                                                    --------               --------

Cash flows from financing activities:
    Net increase in demand, savings, and time deposits ...............................                26,927                 29,928
    Net increase in federal funds purchased and
      securities sold under agreements to repurchase .................................                 2,975                    351
    Increase (decrease) in Federal Home Loan Bank advances ...........................                  (370)                 1,930
    Sale of common stock .............................................................                    10                    187
    Redemption of common stock .......................................................                     -                   (630)
    Dividends paid in cash ...........................................................                  (453)                  (607)
                                                                                                    --------               --------
      Net cash provided by financing activities ......................................                29,089                 31,159
                                                                                                    --------               --------

Net (decrease) in cash and due from other
    financial institutions ...........................................................                (2,028)               (10,619)

Cash and cash equivalents - beginning of period ......................................                20,315                 23,296
                                                                                                    --------               --------

Cash and cash equivalents - end of period ............................................              $ 18,287               $ 12,677
                                                                                                    ========               ========
</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS



                                       6
<PAGE>

Notes to Unaudited Consolidated Financial Statements

Summary of Significant Accounting Policies

         A summary of significant  accounting policies and the audited financial
statements for 1999 are included in Corporation's Annual Report on Form 10-K for
the year ended December 31, 1999.

Principles of Consolidation

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

Management Opinion

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

         The results of operations  for any interim  period are not  necessarily
indicative  of the  results to be expected  for an entire  year.  These  interim
financial  statements  should be read in conjunction  with the annual  financial
statements and notes thereto contained in the 1999 Annual Report on Form 10-K.

Changes in Comprehensive Income Components

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

<TABLE>
<CAPTION>
                                                                                Before-Tax               Tax              Net-of-Tax
                                                                                  Amount               Benefit             Amount
                                                                                  ------               -------             ------

Unrealized (losses) on securities:
<S>                                                                              <C>                  <C>                 <C>
Unrealized holding (losses) arising during period ....................           $(742,000)           $ 252,000           $(490,000)
                                                                                 ---------            ---------           ---------
Other comprehensive income, September 30, 1999 .......................           $(742,000)           $ 252,000           $(490,000)
                                                                                 =========            =========           =========

Unrealized (losses) on securities:
Unrealized holding (losses) arising during period ....................           $(640,000)           $ 217,000           $(423,000)
                                                                                 ---------            ---------           ---------
Other comprehensive income, September 30, 2000 .......................           $(640,000)           $ 217,000           $(423,000)
                                                                                 =========            =========           =========
</TABLE>

Stock Dividend

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

Recently issued accounting standards

         In June 1998 the FASB issued SFAS No. 133,  "Accounting  for Derivative
Instruments and Hedging  Activities." All derivatives are to be measured at fair
value and  recognized  in the  balance  sheet as  assets  and  liabilities.  The
statement's  effective  date was delayed and is  effective  for fiscal years and
quarters  beginning  after  June 15,  2000.  Because  the  Company  does not use
derivative  instruments or transactions at this time, management does not expect
that this standard will have a significant effect on the financial statements of
the Company.




                                       7
<PAGE>

      COMMUNITY BANKSHARES, INC. - AVERAGE BALANCE SHEETS, YIELDS AND RATES


<TABLE>
<CAPTION>
    Nine months ended September 30,                             2000                                     1999
                                                 -----------------------------------       ----------------------------------
    (unaudited)                                               Interest                                  Interest
                                                 Average       Income/       Yields/       Average       Income/      Yields/
Assets                                           Balance      Expense        Rates         Balance      Expense       Rates
                                                 -------      --------       ------        -------      --------      -----
                                                                        (Dollar amounts in thousands)
<S>                                              <C>          <C>             <C>         <C>          <C>             <C>
    Interest bearing deposits ..............     $  1,159     $    53         6.10%       $  2,285     $    90         5.25%
    Investment securities taxable ..........       46,646       2,230         6.37%         38,775       1,785         6.14%
    Investment securities--tax exempt (1) ..          806          25         6.27%            749          22         5.93%
    Federal funds sold .....................        5,324         252         6.31%         12,225         454         4.95%
    Loans receivable .......................      175,774      12,184         9.24%        134,149       8,886         8.83%
                                                 --------     -------         ----        --------     -------         ----

    Total interest earning assets ..........      229,709      14,744         8.56%        188,183      11,237         7.96%

    Cash and due from banks ................        8,365                                    8,187
    Allowance for loan losses ..............       (2,130)                                  (1,632)
    Premises and equipment .................        4,582                                    4,510
    Other assets ...........................        3,171                                    2,174
                                                 --------                                 --------

Total assets ...............................     $243,697                                 $201,422
                                                 ========                                 ========


Liabilities and Shareholders' Equity

    Interest bearing deposits
    Savings ................................     $ 32,650     $   955         3.90%       $ 28,804     $   706         3.27%
    Interest bearing transaction accounts ..       20,519         241         1.57%         16,946         196         1.54%
    Time deposits ..........................      117,735       4,943         5.60%         93,186       3,536         5.06%
                                                 --------     -------         ----        --------     -------         ----

    Total interest bearing deposits ........      170,904       6,139         4.79%        138,936       4,438         4.26%
    Short term borrowing ...................        3,553         117         4.39%          5,572         137         3.28%
    FHLB advances ..........................       19,342         863         5.95%         10,949         441         5.37%
                                                 --------     -------         ----        --------     -------         ----
    Total interest bearing liabilities .....      193,799       7,119         4.90%        155,457       5,016         4.30%

    Noninterest bearing demand deposits ....       27,568                                   25,457
    Other liabilities ......................        1,283                                    1,025
    Shareholders' equity ...................       21,047                                   19,483
                                                 --------                                 --------

Total liabilities and shareholders' equity .     $243,697                                 $201,422
                                                 ========                                 ========


    Interest rate spread ...................                                  3.66%                                    3.66%

    Net interest income and net yield on earning assets       $ 7,625         4.43%                    $ 6,221         4.41%
                                                               ======         ====                     =======         ====
</TABLE>

(1) Yield is shown on a fully taxable equivalent basis.



                                       8
<PAGE>

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

Forward Looking Statements

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


RESULTS OF OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999

Net Income

         For the nine months ended  September  30, 2000 (the "2000  period") CBI
earned a  consolidated  profit of  $2,342,000  compared  to  $1,586,000  for the
comparable period of 1999, an increase of 47.7% or $756,000.  Basic earnings per
share were $.73 in the 2000 period compared to $.50 for the 1999 period.

         Orangeburg National Bank reported net income of $1,687,000 for the 2000
period.  This compares to $1,547,000 for the same period in 1999, an increase of
$140,000 or 9%. At September  30, 2000 the  Orangeburg  bank had $100 million in
loans, $147 million in assets, and $123 million in deposits.

         Sumter  National  Bank  reported  net income of  $634,000  for the 2000
period.  This  compares to $377,000 for the same period in 1999,  an increase of
$257,000  or 68.2%.  At  September  30,  2000 the Sumter bank had $60 million in
loans, $73 million in assets, and $55 million in deposits. The Sumter bank began
operation in June 1996.

         Florence  National  Bank  reported  net income of $39,000  for the 2000
period. This compares to a net after tax loss of $283,000 for the same period in
1999, for an  improvement  of $322,000.  At September 30, 2000 the Florence bank
had $27 million in loans,  $39 million in assets,  and $34 million in  deposits.
The Florence bank began operation in July 1998.

         As noted above,  consolidated  net income for the 2000 period increased
from the prior year by 47.7% or $756,000.  The major components of this increase
are discussed  below.  Net interest income before  provision for loan losses for
the 2000 period  increased to  $7,625,000,  compared to $6,221,000  for the same
period in 1999,  an  increase  of 22.6% or  $1,404,000.  For the 2000 period the
provision for loan losses was $490,000 compared to $439,000 for the 1999 period,
an  increase  of 11.6%  or  $51,000.  Non-interest  income  for the 2000  period
increased to $1,349,000  from $994,000 for the 1999 period,  a 35.7% or $355,000
increase.  Non-interest expense increased to $4,852,000 from $4,427,000,  a 9.6%
or $425,000 increase.

Profitability

         One of the best ways to review  earnings  is through the ROA (return on
average assets) and the ROE (return on average equity).  Return on assets is the
income for the period divided by the average assets for the period,  annualized.
Return on equity is the income for the period  divided by the average equity for


                                       9
<PAGE>

the  period,  annualized.  Based  on  operating  results  for the  2000 and 1999
periods, the following table is presented.

                                  Nine months ended Sept. 30,
                                     2000             1999
                                     ----             ----
                                    (dollars in thousands)
Average assets ...............   $  243,697       $  201,422
ROA ..........................         1.28%            1.05%
Average equity ...............   $   21,047       $   19,483
ROE ..........................        14.84%           10.85%
Net income ...................    $   2,342       $    1,586


Net interest income

         Net interest income, the major component of CBI's income, is the amount
by which  interest and fees on interest  earning assets exceed the interest paid
on interest bearing  deposits and other interest bearing funds.  During the 2000
period  net  interest  income  after  provision  for loan  losses  increased  to
$7,135,000 from $5,782,000,  a 23.4% or $1,353,000  increase over the comparable
1999 period.  This  improvement  was  primarily the result of an increase in the
volume of earning assets at all three banks.

Interest Income

         Elsewhere  in this report is a table  comparing  the average  balances,
yields,  and rates for the interest  rate  sensitive  segments of the  company's
balance sheet for the  nine-month  periods ended  September 30, 2000 and 1999. A
discussion of that table follows.

         Total interest income for the 2000 period was $14,745,000 compared with
$11,237,000  for the same period in 1999, a 31.2% or  $3,508,000  increase.  The
yield on  earning  assets for the 2000  period was 8.56%,  up from 7.96% for the
1999 period.  Total  average  interest  earning  assets for the 2000 period were
$229,709,000,  up from  $188,183,000 for the same period in 1999, an increase of
22.1% or $41,526,000.

         The loan  portfolio  earned  $12,184,000  for the 2000 period,  up from
$8,886,000 for the same period of 1999, a 37.1% or $3,298,000 increase. The 2000
yield  increased to 9.24% from 8.83% for the 1999 period.  The increase in yield
followed the increase in the prime lending rate, which rose to 9.50% in May 2000
from 8.00% in July 1999. The average size of the loan portfolio was $175,774,000
for the 2000  period,  up from  $134,149,000  for the same  period  of 1999,  an
increase of 31% or $41,625,000.


                                       10
<PAGE>

         The taxable investment  portfolio earned $2,230,000 for the 2000 period
up from $1,785,000 for the 1999 period, a 24.9% or $445,000 increase.  The yield
increased to 6.37% in the 2000 period from 6.14% in the 1999 period. The average
size  of the  portfolio  increased  to  $46,646,000  in  the  2000  period  from
$38,775,000 in the 1999 period, an increase of 20.3% or $7,871,000.

         The tax exempt investment  portfolio continues to be a relatively small
part of the portfolio. It earned $25,000 for the 2000 period compared to $22,000
for the 1999 period, an increase of 13.6% or $3,000.  The yield on the portfolio
was 6.27% (on a fully taxable equivalent basis), increased from the prior year's
5.93%.  The average  size of the  portfolio  increased  to $806,000 for the 2000
period from $749,000 in the 1999 period, an increase of 33.5% or $57,000.

         Interest  bearing deposits in other banks  contributed  $53,000 for the
2000 period compared to $90,000 during 1999, a decrease of 41.1% or $37,000. The
yield on these deposits  increased to 6.10% from 5.25%. CBI averaged  $1,159,000
in interest  bearing  balances in the 2000 period  compared to $2,285,000 in the
1999 period, a decrease of 49.3% or $1,126,000.

         Federal  funds sold earned  $252,000  for the 2000  period  compared to
$454,000 the prior year, a decrease of 44.5% or  $202,000.  Yields  increased to
6.55% from  4.95%.  For the 2000  period CBI  decreased  its  average  volume in
federal funds sold to $5,130,000 from  $12,225,000 for the 1999 period, a 58% or
$7,095,000 decrease. This decline was directly related to the strong loan demand
in each of the three banks' markets.

Interest expense

         Interest  expense  increased  for the 2000  period to  $7,119,000  from
$5,016,000 for the 1999 period,  a 41.9% or $2,103,000  increase.  The volume of
interest bearing liabilities  increased to $193,799,000 for the 2000 period from
$155,457,000 for the 1999 period, a 24.7% or $38,342,000  increase.  The average
rate CBI paid for interest bearing liabilities during the 2000 period was 4.90%,
up from 4.30% for the 1999 period.

         The cost of savings accounts  increased to $955,000 for the 2000 period
from $706,000 in the 1999 period, a 35.3% or $249,000 increase.  Average savings
deposit  balances  increased to $32,650,000 for the 2000 period from $28,804,000
for the 1999 period,  an increase of 13.4% or $3,846,000.  The average rate paid
on these funds increased to 3.90% from 3.27%.

         Interest  bearing  transaction  accounts  increased to $241,000 for the
2000 period from $196,000 for the 1999 period,  a 23% or $45,000  increase.  The
volume of these  deposits  increased  to  $20,519,000  for the 2000  period from
$16,946,000  for the 1999 period,  a 21.1% or $3,573,000  increase.  The average
rate paid on these funds increased to 1.57% from 1.54%.

         Time deposits cost $4,943,000 for the 2000 period up from $3,536,000 in
the 1999 period,  an increase of 39.8% or  $1,407,000.  The volume  increased to
$117,735,000  for the 2000 period from  $93,186,000 for the 1999 period, a 26.3%
or $24,549,000 increase. The average rate paid on these funds increased to 5.60%
for the 2000 period from 5.06% for the 1999 period.

         Short-term borrowing consists of federal funds purchased and securities
sold under agreements to repurchase.  It cost $117,000 for the 2000 period, down


                                       11
<PAGE>

from $137,000 for the 1999 period,  a 14.6% or $20,000  decrease.  The volume of
these funds  decreased to $3,553,000  in the 2000 period from  $5,572,000 in the
1999 period,  a decline of 36.2% or  $2,019,000.  The average rate paid on these
funds increased to 4.39% from 3.28%.

         Borrowings  from the Federal Home Loan Bank cost  $863,000 for the 2000
period compared to $441,000 for the 1999 period,  a 95.7% or $422,000  increase.
The advances averaged $19,342,000 during the 2000 period compared to $10,949,000
for the prior year period, a 76.7% or $8,393,000 increase. The average rate paid
on these funds  increased  to 5.95% from 5.37%.  The banks all  increased  their
borrowings  from the FHLB as an  alternative  funding  source  over  higher cost
consumer deposits.

Non-Interest Income

         Non-interest  income  for  the  2000  period  grew to  $1,349,000  from
$994,000 in the 1999 period,  a 35.7% or $355,0000  increase.  This increase was
mostly  generated by  substantial  increases in service charge fee income at the
Florence bank resulting from increased volumes of accounts.

Non-Interest Expense

         For the 2000 period non-interest  expenses increased to $4,852,000 from
$4,427,000 for the 1999 period, a 9.6% or $425,000 increase.

         Personnel  costs  were  $2,831,000  for the  2000  period  compared  to
$2,569,000 for the 1999 period, a 10.2% or $262,000 increase.

         Premises  and  equipment  expense  for the 2000  period  were  $690,000
compared to $670,000 for the 1999 period, an increase of 3% or $20,000.

         Other costs were  $1,331,000 for the 2000 period compared to $1,188,000
for the 1999 period, an increase of 12% or $143,000.

Income Taxes

         CBI provided  $1,290,000  for federal and state income taxes during the
2000  period  compared  to  $763,000  for the same  period  in 1999,  a 69.1% or
$527,000  increase.  The average tax rate for the 2000 period was  approximately
35.5%  and for the 1999  period  it was  approximately  32.4%.  The  Corporation
benefited in the 1999 period from the exercise of  non-qualified  stock options,
which reduced the average tax rate.



RESULTS OF OPERATIONS FOR THE QUARTERS ENDED SEPTEMBER 30, 2000 AND 1999

Net Income

         For the quarter  ended  September  30, 2000 (the "2000  quarter"),  CBI
earned a consolidated profit of $865,000 compared to $614,000 for the comparable


                                       12
<PAGE>

period of 1999, an increase of 40.9% or $251,000.  Basic earnings per share were
$.27 in the 2000 period compared to $.19 for the 1999 period.

         The other changes in the items  comprising net interest  income,  which
are discussed below resulted from  essentially the same factors  discussed above
regarding  the results of  operations  for the nine months ended  September  30,
2000.



Net interest income

         Net  interest  income  before  provision  for loan  losses for the 2000
quarter increased to $2,648,000, compared to $2,265,000 for the 1999 quarter, an
increase  of 16.9% or  $383,000.  For the 2000  quarter the  provision  for loan
losses was  $152,000  compared to $166,000 for the 1999  quarter,  a decrease of
8.4% or $14,000.

Interest Income

         Total  interest  income  for the  third  quarter  2000  was  $5,273,000
compared  with  $4,092,000  for the same period in 1999,  a 28.9% or  $1,181,000
increase.

         The loan portfolio earned  $4,421,000 for the third quarter in 2000, up
from $3,254,000 for the same period of 1999, a 35.9% or $1,167,000 increase.

         The investment portfolio earned $763,000 for the third quarter in 2000,
up from $670,000 for the 1999 period, a 13.9% or $93,000 increase.

         Interest  bearing deposits in other banks  contributed  $25,000 for the
third  quarter 2000,  compared to $11,000  during the prior year, an increase of
127% or $14,000.

         Federal funds sold earned $64,000 the third quarter of 2000 compared to
$157,000 the prior year, a decrease of 59.2% or $93,000.


Interest expense

         Interest expense  increased for the third quarter of 2000 to $2,625,000
from the prior year's $1,827,000, a 43.7% or $798,000 increase.

Non-interest income and expense

         Non-interest  income for the 2000 quarter  increased  to $464,000  from
$344,000  for the  1999-quarter,  a 34.9%  or  $120,000  increase.  Non-interest
expense increased to $1,625,000 from $1,530,000, a 6.2% or $95,000 increase.




                                       13
<PAGE>

CHANGES IN FINANCIAL POSITION

Investment portfolio

         The  investment  portfolio is comprised  of a  held-to-maturity  and an
available-for-sale  portion. CBI and its three banks usually purchase short-term
issues of U. S. Treasury and U. S. Government  agency  securities for investment
purposes.   At  September  30,  2000  the  held-to-maturity   portfolio  totaled
$12,371,000  compared to $13,369,000 at December 31, 1999, a decrease of 7.5% or
$998,000.  At  September  30,  2000  the  available-for-sale  portfolio  totaled
$35,577,000  compared to  $30,566,000 at December 31, 1999, an increase of 16.4%
or $5,011,000.  The following  chart  summarizes  the  investment  portfolios at
September 30, 2000 and December 31, 1999.
<TABLE>
<CAPTION>
                                                                                          September 30, 2000
                                                                       Held-to-maturity                       Available-for-sale
                                                                   Amortized cost    Fair value        Amortized cost     Fair value
                                                                   --------------    ----------        --------------     ----------
                                                                                          (dollars in thousands)
<S>                                                                 <C>                <C>               <C>                <C>
U. S. Government and federal agencies ....................          $ 12,371           $ 11,972          $ 33,460           $ 32,816
Tax exempt securities ....................................                 -                  -               817                809
Other equity securities ..................................                 -                  -             1,952              1,952
                                                                    --------           --------          --------           --------
Total ....................................................          $ 12,371           $ 11,972          $ 36,229           $ 35,577
                                                                    ========           ========          ========           ========

Unrealized (loss) ........................................          $   (399)                            $   (652)
                                                                    ========                             ========
</TABLE>

<TABLE>
<CAPTION>
                                                                                            December 31, 1999
                                                                         Held-to-maturity                  Available-for-sale
                                                                  Amortized cost    Fair value        Amortized cost     Fair value
                                                                  --------------    ----------        --------------     ----------
                                                                                            (dollars in thousands)
<S>                                                                 <C>                <C>               <C>                <C>
U. S. Government and federal agencies ....................          $ 13,369           $ 12,919          $ 28,931           $ 28,151
Tax exempt securities ....................................                 -                  -               825                814
Other equity securities ..................................                 -                  -             1,601              1,601
                                                                    --------           --------          --------           --------
Total ....................................................          $ 13,369           $ 12,919          $ 31,357           $ 30,566
                                                                    ========           ========          ========           ========

Unrealized (loss) ........................................          $   (450)                            $   (791)
                                                                    ========                             ========
</TABLE>

Loan portfolio

         The loan portfolio is primarily  consumer and small business  oriented.
At  September  30,  2000  the  loan  portfolio  was  $186,407,000   compared  to
$157,358,000  at  December  31,  1999,  an 18.5% or  $29,049,000  increase.  The
following chart summarizes the loan portfolio at September 30, 2000 and December
31, 1999.

                                             Sep. 30, 2000     Dec. 31, 1999
                                             -------------     -------------
                                               (dollars in thousands)
Real estate ................................   $109,900          $ 94,105
Commercial .................................     49,904            40,220
Loans to individuals .......................     26,603            23,033
                                               --------          --------
Total ......................................   $186,407          $157,358
                                               ========          ========


                                       14
<PAGE>

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

         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 September 30, 2000 and December 31, 1999.





 .
                                                Sept. 30, 2000     Dec. 31, 1999
                                                --------------     -------------
                                                      (dollars in thousands)
Past due 90 days + accruing loans ...........        $  4                $ -
Non-accrual loans ...........................        $571                $90
Impaired loans (included in nonaccrual) .....        $571                $90
Other real estate owned .....................        $124                $ -

         The  increase in  non-accrual  loans is related to a limited  number of
accounts and is not indicative of any trends.  Management considers the past due
and non-accrual amounts at September 30, 2000 to be reasonable and manageable in
the normal course of business.

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

         CBI's activity with its allowance for loan losses reserve is summarized
below.

<TABLE>
<CAPTION>
                                                                           Sept. 30, 2000      Dec. 31, 1999       Sept. 30, 1999
                                                                           --------------      -------------       --------------
<S>                                                                           <C>                  <C>                  <C>
Allowance at beginning of period ....................................         $ 1,936              $ 1,459              $ 1,459
Provision expense ...................................................             490                  612                  439
Net charge offs .....................................................            (156)                (135)                 (93)
                                                                              -------              -------              -------
Allowance at end of period ..........................................         $ 2,270              $ 1,936              $ 1,805
                                                                              =======              =======              =======
Allowance as a percent of outstanding loans .........................               1.22%                1.23%                1.19%
</TABLE>

         In reviewing  the adequacy of the  allowance for loan losses at the end
of each period,  management of each of the banks considers  historical loan loss
experience,   current  economic   condition,   loans   outstanding,   trends  in
non-performing  and  delinquent  loans,  and the quality of collateral  securing
problem loans. After charging off all known losses,  management of each of banks
considers the allowance adequate to provide for estimated future losses inherent
in the loan portfolio at September 30, 2000.

Deposits

         Deposits   were   $211,291,000   at  September  30,  2000  compared  to
$184,364,000 at December 31, 1999, an increase of 14.6% or $26,927,000.

         Time deposits  greater than $100,000 were  $41,118,000 at September 30,
2000  compared to  $36,163,000  at December  31,  1999,  an increase of 13.7% or
$4,955,000.



                                       15
<PAGE>

Liquidity

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

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

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

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

         CBI through  its banking  subsidiaries  has a  demonstrated  ability to
attract deposits from its markets.  Deposits have grown from $30 million in 1989
to over $211  million  in 2000.  This base of  deposits  is the major  source of
operating liquidity.

         CBI's long term liquidity  needs are expected to be primarily  affected
by the maturing of long-term  certificates of deposit. At September 30, 2000 CBI
had  approximately  $24.7 million in  certificates of deposit and other interest
bearing liabilities maturing in one to five years. CBI had $10.2 million in such
liabilities  maturing in over 5 years. CBI's assets maturing or repricing in the
same periods were $107.7 million and $39.9 million, respectively. CBI expects to
be able to manage its current balance sheet structure  without  experiencing any
material liquidity problems.

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



                                       16
<PAGE>

Capital resources

         As shown by the  capital  ratios in the table  below,  CBI  maintains a
strong capital position.

                                               Sept. 30, 2000     Dec. 31, 1999
                                               --------------     -------------
Tier 1 capital to average total assets .....       8.93%                 9.40%
Tier 1 capital to risk weighted assets .....      12.35%                13.00%
Total capital to risk weighted assets ......      13.58%                14.20%

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

         The decline in the capital  ratios is related to balance  sheet  growth
during the period.  Banks are required to maintain a minimum total risk weighted
capital ratio of at least 8%, and CBI  currently  has 13.58%.  In the opinion of
management,  the  Corporation's  current and  projected  capital  positions  are
adequate.


Dividends

         CBI declared and paid a quarterly cash dividend of five cents per share
during the first and second  quarters of 2000 and six cents per share during the
third  quarter  of 2000.  The total cost of these  dividends  was  $453,000.  In
previous years the Corporation  paid dividends on a semi-annual  basis. CBI also
declared  and paid a five percent  stock  dividend  during the first  quarter of
2000.


Item 3. Quantitative and Qualitative Disclosures about Market Risk

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

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

         The Corporation's  Asset/Liability Committee uses a simulation model to
assist in  achieving  consistent  growth in net interest  income while  managing
interest rate risk.  The model takes into account  interest rate changes as well
as changes in the mix and volume of assets and liabilities.  The model simulates


                                       17
<PAGE>

the  Corporation's  balance sheet and income  statement under several  different
rate  scenarios.  The model's inputs (such as interest rates and levels of loans
and  deposits)  are  updated  on a  quarterly  basis in order to obtain the most
accurate  projection  possible.  The  projection  presents  information  over  a
twelve-month  period. It reports a base case in which interest rates remain flat
and reports  variations  that occur when rates increase and decrease 100 and 200
basis points. According to the model as of September 30, 2000 the Corporation is
positioned so that net interest income is estimated to increase $319,000 and net
income is estimated to increase  $196,000 in the next twelve  months if interest
rates rise 200 basis  points.  Conversely,  net interest  income is estimated to
decline  $319,000 and net income is  estimated  to decline  $196,000 in the next
twelve  months if  interest  rates  decline  200 basis  points.  Computation  of
prospective effects of hypothetical  interest rate changes are based on numerous
assumptions,  including  relative  levels  of  market  interest  rates  and loan
prepayment,  and  should not be relied  upon as  indicative  of actual  results.
Further,  the computations do not contemplate any actions the Corporation  could
undertake in response to changes in interest rates.

         As of  September  30,  2000 there was no  significant  change  from the
interest rate  sensitivity  analysis for the various  changes in interest  rates
calculated  as of December 31, 1999.  The foregoing  disclosures  related to the
market risk of the Corporation  should be read in connection  with  Management's
Discussion and Analysis of Financial Position and Results of Operations included
in the 1999 Annual Report on Form 10-K.


Part II--Other Information


Item 6.  Exhibits and Reports on Form 8-K

(a)  Exhibits

See Exhibit Index.

b)  None.


                                       18
<PAGE>

Signatures

         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                                               DATED: November 13, 2000
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)










                                       19
<PAGE>

                                  EXHBIT INDEX


Exhibit No.(from item             Description
601 of S-B)                       -----------

     (27)                         Financial Data Schedule