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                                                                    EXHIBIT 10.7




NORTH CAROLINA
WILKES COUNTY

                               LEASE AGREEMENT

THIS LEASE AGREEMENT, made and entered into on this 25th day of February, 1997,
by and between EDWARD F. GREENE and his wife, FRANCES C. GREENE, hereinafter
referred to as the "Landlord" and WILKES NATIONAL BANK, a corporation duly
organized and existing under the laws of the State of North Carolina,
hereinafter referred to as the "Tenant."

                                 WITNESSETH:

       THAT FOR and in consideration of the rental hereinafter reserved and the
covenants and agreements herein contained, Landlord has agreed to lease and
does hereby demise and lease unto Tenant, and Tenant has agreed to take and
lease and does hereby lease from Landlord, the premises known as 1600 Curtis
Bridge Road, Wilkesboro, North Carolina and being a building containing
approximately 1,800 square feet of interior space and including the parking
area adjacent to the said building all as more particularly described on the
attached Exhibit A:

                              1.  TERM OF LEASE:

       The term of this lease shall be for a period of 2 years commencing on
the first (lst.) day of March, 1997 and ending on the first day of March, 1999,
both dates inclusive.  The lease may be extended for an additional one (1) year
term at the option of the Tenant upon the Tenant giving the Landlord notice of
its desire to extend at least sixty (60) days prior to the expiration of the
initial term. Any such renewal term shall be upon the same terms and conditions
hereunder.

                                 2.  RENTAL:

       As rental for said premises Tenant shall pay Landlord in advance on or
before the first day of each month without notice or further demand the amount
of $4,000.00 + Consumer Price Index.

                                3.  UTILITIES

       The Tenant shall pay all charges for sewer, electricity, water, light,
heat, power, and telephone or other communications service used, rendered, or
supplied upon or in connection with the leased property, and shall indemnify
the Landlord against any liability or damages on such account.
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                                  4.  TAXES

       Tenant shall pay when due, all real property taxes and assessments of
any kind or nature which are now or may hereafter be imposed upon the demised
premises; and the Tenant shall pay when due all taxes of any kind or nature
imposed or assessed upon the merchandise, equipment, inventory, or other
property installed or brought onto the demised premises by or for the Tenant.
If the lease commences or terminates during a portion of a calendar year, the
parties shall prorate the taxes for the calendar year.

                               5.  ALTERATIONS:

       Upon written approval of the Landlord not to be unreasonably withheld,
Tenant may, at its sole cost and expense, from time to time during the term of
this lease, make alterations, additions or changes in and to the leases
premises.

                        6.  ASSIGNMENT AND SUBLETTING:

       Upon written approval of Landlord not to be unreasonably withheld,
Tenant or its successors may assign or sublet the leased premises in whole or
in part upon condition, however, that the Tenant herein shall continue to
remain liable notwithstanding such assignment or sublease for the future
performance of all of the terms, covenants, and conditions of this lease.

                                7.  PLATE GLASS:

       Tenant agrees that it shall replace any plate glass broken or damaged
upon the leased premises at its own cost and expense.

                                8.  INSURANCE

       Tenant agrees that it will at all times during the term hereof, at its
own expense, maintain, and keep in force public liability insurance against
claims for bodily injury, death or property damage occurring in or on or about
the demised premises in an amount of at least $1,000,000 coverage and will also
provide at its sole cost and expense full replacement cost fire and extended
coverage and vandalism and malicious mischief insurance covering the
improvements and building of the demised premises. Tenant shall provide
Landlord with a certificate of such insurance naming the Landlord as the
insured and providing that such insurance shall not be canceled without thirty
(30) days written notice to Landlord in advance of such cancellation.
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                         9.  DAMAGE AND DESTRUCTION:

       If the leased premises be damaged or destroyed in whole or in
substantial part at any time during the term of this lease by fire or other
casualty, Landlord will within thirty (30) days of the destruction or damage to
the property notify the Tenant in writing whether it elects to restore the
property or to terminate the lease. If the Landlord elects not to restore the
demised premises, then this lease shall thereupon terminate and become null and
void. However, should the Landlord elect to restore the premises to the
condition existing before the damage or destruction, then in that event rent
shall be abated according to the amount of square footage available to the
Tenant for use to conduct business in while the repair and/or restoration takes
place. Provided however, if the damage or destruction is such that Tenant is
unable to occupy and substantially use the demised premises for continuous
ninety (90) days, the Tenant may terminate the lease by written notice to
Landlord. Such notice is to be given after the ninety (90) days of Tenant being
dispossessed.

                              10.  CONDEMNATION:

       In the event that all of the leased premises shall be taken in
condemnation proceedings or by exercise of any right of eminent domain, this
lease shall terminate as of the date of such taking, and all unearned rent and
all other charges paid in advance shall be refunded to the Tenant and the
Tenant shall surrender possession of the leased premises to Landlord. The award
for such taking shall belong to Landlord. Tenant shall be entitled to make
claim in its name to the condemning authorities for the value of any furniture,
trade fixtures, trade equipment, merchandise or personal property of any kind
belonging to Tenant and not forming part of the real estate, or for the cost of
moving all of the same, and any such award made directly to Tenant shall belong
entirely to the Tenant.

       In the event that a portion of, but not all, of the leased premises
shall be taken in condemnation proceedings or by exercise of any right of
eminent domain and if as a result of such partial taking the ground floor area
of the building on the leased premises remaining after the taking is less than
eighty (80) percent of the ground floor area of said building prior to the
taking, or if the parking area, after the taking is less than 80% of the
parking area prior to the taking, then in such event, Tenant shall have the
right to terminate this lease provided the Tenant shall have given notice to
Landlord within (30) days after knowledge by Tenant of such taking of Tenant's
intention to cancel this lease.  Whereupon, Tenant shall be liable only for the
rent up to the time of such taking or the date when Tenant shall vacate the
leased premises, whichever date is later, and Tenant shall be entitled to
refund of any advanced rentals paid by it for the period subsequent to the
latter of such dates.
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       In the event that Tenant does not exercise its election to cancel this
lease, then and in the event:

               a.    This lease shall continue in full force and effect as to
       the portion of the leased premises not taken for the balance of the term
       of this lease; however, the annual rent for the unexpired term shall be
       reduced by that portion which the area so taken shall bear to the entire
       area of the demised premises immediately prior to such taking;

               b.    Landlord diligently shall make all necessary repairs or
       alterations to restore the building and/or parking lot to a complete
       architectural unit.

                        11.  MAINTENANCE AND REPAIRS:

       Landlord will keep the roof and the exterior walls of the demised
premises, and the parking lot in proper repair provided that in each case,
Tenant shall have given Landlord prior written notice of the necessity of such
repairs.  Tenant will keep the interior of the demised premises, which
includes, but is not limited to, all the electrical, plumbing, heating, air
conditioning and other mechanical installation therein and all plate glass
doors and windows in good order and repair including replacement. Tenant agrees
to surrender the demised premises at the expiration or earlier termination of
this lease agreement in as good a condition as when received, excepting only
deterioration caused by ordinary wear and tear and damage by fire or other
casualty of the kind insured against in standard policies of fire insurance and
extended coverage. If Landlord refuses or neglects to repair property as
required hereunder and to the reasonable satisfaction of the Tenant, as soon as
reasonably possible after written demand, Tenant may (but is not required to
do) make such repairs. Landlord shall pay Tenant's reasonable costs for making
such repairs or Tenant may credit the costs of the repairs against the monthly
rental payment or payments thereafter falling due.

                            12.  TRADE AGREEMENTS:

       All trade fixtures installed by Tenant in the demised premises shall
remain the property of Tenant and shall be removable at the expiration or
earlier termination of this lease agreement or any renewal or extension
thereof.

                             13.  QUIET ENJOYMENT

       Tenant, upon paying the rent, and subject to all of the terms and
covenants of this lease, on the Tenant's part to be kept, observed, and
performed, shall quietly have and enjoy the leased premises during the term of
this lease without hindrance or molestation by any person. Landlord for
himself, his heirs, successors and assigns, agrees that Tenant, its successors,
and assigns, shall have enjoyment of the entire premises during the term of
this lease in accordance with this lease. The Landlord covenants that at the
time of the execution of this lease, Landlord is in legal possession of the
demised premises, has full right to lease the same for the term aforesaid, and
will put Tenant in actual possess of the premises herein before provided.
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                                14.  NOTICES:

       Notices required under this lease agreement shall be given by the
parties to one another at the addresses set forth below by certified mail,
return receipt requested:

       Landlord:        Mr. & Mrs. Edward F. Greene
                        114 Fairway Lane
                        Wilkesboro, N.C. 28697

       Tenant:          Community Bancshares, Inc.
                        Attn: President
                        P.O. Box 2368
                        North Wilkesboro, N.C. 28659

                             15.  MISCELLANEOUS:

       Tenant agrees to comply with all applicable laws and regulations
governing its use of the demised premises. If the term of the lease commences
or terminates during any month, then rent shall be prorated for that portion of
a month that Tenant occupies the demised premises. Tenant agrees to indemnify
and hold Landlord harmless from any claim arising out of or related to Tenant's
occupation and use of the demised premises. However, there is excluded from
this indemnification obligation any claims made by any predecessor in title to
Landlord that the demised premises are not permitted for use as a bank. The
parties agree to execute and record a memo of this lease in the Register of
Deeds office of Wilkes County, North Carolina.

       IN WITNESS WHEREOF, the parties have hereunto set their hands and seal,
the day and year first above written.


Landlord:                                        Tenant:

                                                 WILKES NATIONAL BANK
/s/ Edward F. Greene          (Seal)
------------------------------
EDWARD F. GREENE
                                                 BY: /s/ Ronald S. Shoemaker
                                                     -----------------------
                                                     President
/s/ Frances C. Greene         (Seal)
------------------------------
FRANCES C. GREENE                                Attest:


                                                 /s/ Brent F. Eller
                                                 ---------------------------
                                                 Secretary


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                                  EXHIBIT A

A parcel of land lying in the Northern corner of the intersection of North
Carolina Secondary Road No. 1327, commonly known as Curtis Bridge Road and
North Carolina Secondary Road No. 1510, commonly known as Brick Yard Road, in
North Wilkesboro Township, Wilkes County, North Carolina; bounded on the North
by Sturdivant-Gambill (D. B. 563, Page 49, Wilkes County Registry); and the
Southeast by Jesse W. Cardwell (D.B. 276, Page 54, Wilkes County Registry), and
S.R. 1510; on the Southwest by S.R. 1327 and being more particularly
described from a survey on December 20, 1981, by R. H. Carpenter, R.L.S.
(L01385).

BEGINNING on a point in the center of the aforesaid S. R. 1510, said point
being the eastern edge of the right of way along the aforesaid S. R. 1327;
thence along the eastern edge of said right of way North 41 (degrees)  35' 05"
West 108.00 feet to a R/W Monument; thence continuing along said R/W North 28
(degrees) 34' 36" West 200.25 feet; thence continuing along said R/W North 31
(degrees)  27' 14" West 22.00 feet; thence a new line South 86 (degrees) 58'
18" East 327.55 feet to a point in the center of S. R. 1510, said point also
being in J. W. Cardwell's line; thence along the center of said road and
Cardwell's line South 28 (degrees) 32' 48" West 118.00 feet; thence leaving
Cardwell's line and  continuing along (degrees) the center of said road South
30 (degrees) 42' 51" West 179.65 feet to the point of BEGINNING containing
1.066 acres by D.M.D.
<PAGE>   7

NORTH CAROLINA
WILKES COUNTY

       I, _______________________, a Notary Public of the county and State
aforesaid, certify that EDWARD F. GREENE personally appeared before me this day
and acknowledged the due execution of the foregoing instrument.

       Witness, my hand and official seal, this the ___ day of____________,1997.


                                                 _______________________________
                                                           NOTARY PUBLIC
My commission expires____________________.

NORTH CAROLINA
WILKES COUNTY

       I, _______________ , a Notary Public of the County and State aforesaid
certify that FRANCES C. GREENE personally appeared before me this day and
acknowledged the due execution of the foregoing instrument.

       Witness my hand and official seal, this the ____ day of __________, 1997.


                                                 _______________________________
                                                          NOTARY PUBLIC
My commission expires____________________.

NORTH CAROLINA
WILKES COUNTY

       I, _____________________________, a Notary Public of the County and
State aforesaid certify that ____________________________ personally came
before me this day and acknowledged that he is secretary of COMMUNITY
BANCSHARES, INC., a corporation, and that by authority duly given and as the
act of the corporation, the foregoing instrument was signed in its name by its
president, sealed with its corporate seal, and attested by himself as its
secretary.

       Witness my hand and official seal, this the _______ day of _______, 1997.


                                                 _______________________________
                                                          NOTARY PUBLIC
My commission expires____________________.