UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON,  D.C.  20549
FORM 10-Q
(Mark One)
  X  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES AND
     EXCHANGE ACT OF 1934
          For the quarterly period ended September 30, 1997           

     TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

          For the transition period from __________  to  ___________

               Commission File Number:  33-81890
                                
                   Community Bankshares, Inc.
        ________________________________________________
(Exact name of registrant issuer as specified in its charter)           
          Georgia                                            58-1415887 
(State or other jurisdiction of                           (IRS Employer
incorporation or organization)                          Identification No.)

                 448 North Main Street, Cornelia, Georgia
                 (Address of principal executive offices)
                                30531
                              (Zip Code)
                            (706) 778-2265                           
            (Registrant's telephone number, including area code)
                                
                                  N/A                                        
(Former name, former address and former fiscal year, if changed since
 last report)
                                
Indicate by check mark whether the registrant (1) has filed all reports
 required to be filed by Section 13 or 15(d) of the 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         

              APPLICABLE ONLY TO CORPORATE ISSUERS
                                
Indicate the number of shares outstanding of each of the registrant's classes
of common stock, as of November 1, 1997: 2,169,830.

                                Page 1
<PAGE>
                        COMMUNITY BANKSHARES, INC.
                             AND SUBSIDIARIES

                                  INDEX

                                                                    Page No.
PART I.   FINANCIAL INFORMATION

Item 1.   Financial Statements         

          Consolidated Balance Sheets - September 30, 1997
          and December 31, 1996                                    3 and 4

          Consolidated Statements of Income - for Three Months
          Ended September 30, 1997 and 1996 and Nine Months Ended 
          September 30, 1997 and 1996                              5 and 6
        
          Consolidated Statements of Cash Flows - Nine Months
          Ended September 30, 1997 and 1996                        7 and 8

          Note to Consolidated Financial Statements                   9

Item 2.   Management's Discussion and Analysis of 
          Financial Condition and Results of Operations            10 - 14


PART II.  OTHER INFORMATION                                       


Item 6.   Exhibits and Reports on Form 8 - K                          15

          Signatures                                                  16


























                                  Page 2
                                 
<PAGE>
                     PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS
<TABLE>
                     COMMUNITY BANKSHARES, INC.
                         AND SUBSIDIARIES
 
                    CONSOLIDATED BALANCE SHEETS
              September  30, 1997 and December 31, 1996
                      (Dollars in thousands)
                           (Unaudited)
<CAPTION>
                                                     1997                1996 
<S>                                                 <C>             <C> 
Assets                                                                 

Cash and due from banks                               16,335          $19,480
Interest-bearing deposits in banks                       717              208
Investment securities:
    Held to maturity (fair value $25,670 and $18,826) 25,286           18,654
    Available for sale                                50,518           47,418
Federal Funds Sold                                     9,805            8,345
Loans held for sale                                    2,313            2,484

Loans                                                226,523          203,302
Less allowance for loan losses                         4,056            3,592
Loans, net                                           222,467          199,710

Premises and equipment                                 9,835            8,115
Other assets                                          10,258           11,165
  Total Assets                                       347,534         $315,579

Liabilities, Redeemable Common Stock and Shareholders' Equity

Deposits:
    Demand                                            42,494          $36,877
    Interest-bearing demand                           63,012           61,676
    Savings                                           16,438           13,949
    Certificates of deposits $100,000 and over        56,787           48,328
    Other time                                       128,411          117,879
        Total deposits                               307,142          278,709
Other borrowings                                         501              616
Other liabilities                                      7,841            8,994
        Total liabilities                            315,484          288,319

Commitments and contingent liabilities

Redeemable common stock held by ESOP, 308,870 
  shares outstanding, at fair value                    6,773            6,177








                                Page 3
<PAGE>
                         CONSOLIDATED BALANCE SHEET
                  September 30, 1997 and December 31, 1996
                           (Dollars in thousands)     
                                 (Unaudited)

                                                        1997             1996

Shareholders' equity
    Common stock, $1 par value , 5,000,000 shares
     authorized; 2,169,830 and 2,004,830 shares
     issued and outstanding                            2,170            2,005
    Surplus                                            5,962            5,276
    Retained earnings                                 17,861           13,876
    Unrealized (loss)gain on securities available 
     for sale, net of tax                                 66              (74)
    Treasury stock                                      (782)               0

         Total shareholders' equity                   25,277           21,083

  Total liabilities, redeemable common stock 
     and shareholders' equity                        347,534         $315,579
<FN>
See Accompanying Note to Consolidated Financial Statements
</TABLE>

































                             Page 4
<PAGE>




<TABLE>
 
                         COMMUNITY BANKSHARES, INC.
                              AND SUBSIDIARIES

                     CONSOLIDATED STATEMENTS OF INCOME 
              THREE MONTHS ENDED September 30, 1997 and 1996 and
                NINE MONTHS ENDED September 30, 1997 and 1996         
               (Dollars in Thousands, except per share amounts)
                                (Unaudited)                                
                                     Three Months Ended    Nine Months Ended
                                       September 30          September 30
<CAPTION>
                                     1997         1996        1997      1996
<S>                              <C>        <C>         <C>        <C>
Interest Income
  Interest and fees on loans        $6,475     $5,449      $17,537    $15,160
  Interest on Federal Funds sold       156        166          521        459
  Interest on interest-bearing
    deposits                            61          5           78          7
    Interest on investment
      securities:     
        Taxable                        717        628        2,279      1,787
        Nontaxable                     336        236          947        646
          Total Interest Income      7,745      6,484       21,362     18,059

Interest Expense
  Interest on deposits               3,308      2,868        9,652      8,209
  Interest on borrowed funds            10         18           32         46
      Total Interest Expense         3,318      2,886        9,684      8,255

Net Interest Income                  4,427      3,598       11,678      9,804
  Provision for loan losses            247        196          636        624
Net interest income after
  provision for loan losses          4,180      3,402       11,042      9,180

Other income
  Service charges on deposit
    accounts                           497        383        1,465      1,103  
  Other service charges, 
    commissions & fees                 191        150          477        418
  Security transactions, net            15        (20)           9       (12)
  Gain on sale of loans                261        108          539        302
  Nonbank subsidiary non-
    interest income                  1,170        957        6,120      3,133 
  Other income                          27         91          367        333
    Total other income               2,161      1,669        8,977      5,277






                                 Page 5

<PAGE>                                                                      
      
                       CONSOLIDATED STATEMENTS OF INCOME 
               THREE MONTHS ENDED September 30, 1997 and 1996 and 
                  NINE MONTHS ENDED September 30, 1997 and 1996  
                 (Dollars in Thousands, except per share amounts)
                                  (Unaudited)      
                 
                                    Three Months Ended     Nine Months Ended
                                        September 30          September 30
                                      1997       1996        1997       1996
Other expenses                     
  Salaries and other 
      employee benefits              2,350      1,931       7,317      5,608
  Occupancy expense                    264        217         765        598
  Equipment expense                    306        260         911        838
  Other expenses                     1,253      1,258       4,168      3,544
    Total other expenses             4,173      3,666      13,161     10,588
                                
     Income before income taxes      2,168      1,405       6,858      3,869
      Income taxes                     689        414       2,210      1,160
                                             
                  NET INCOME        $1,479       $991      $4,648     $2,709
                                

Per share of common stock and 
  common stock equivalents based
  on average number shares 
  outstanding during period,
            Net income               $ .71      $ .48       $2.26      $1.31 
                                
  Average shares outstanding     2,075,757  2,059,461   2,031,808  2,063,386    
  Cash dividends per share of
            common stock            $.034       $.033        $.11       $.10 

<FN>
See Accompanying Note to Consolidated Financial Statements
</TABLE>



















                                 Page 6
<PAGE>
<TABLE>
                         COMMUNITY BANKSHARES,INC.
                             AND SUBSIDIARIES

                   CONSOLIDATED STATEMENTS OF CASH FLOWS
               Nine Months Ended September 30, 1997 and 1996
                          (Dollars in Thousands)
                               (Unaudited)
<CAPTION>
                                                          1997        1996
<S>                                                  <C>           <C>
OPERATING ACTIVITIES
Net Income                                              $4,648        $2,709
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization                              772           635
Provision for other real estate                             50             0
Provision for loan losses                                  636           624
(Gain) loss on sale of investment securities 
    available for sale                                      (9)           12
Loss on sale of other real estate                           42             0
(Increase) decrease in loans held for sale                 171          (268)
Increase in interest receivable                           (463)         (339)
Increase in deferred taxes                                (147)          (47)
Increase in taxes payable                                 (438)          (45)
(Increase) decrease in interest payable                    508          (342)
Other operating activities                                 156         1,078
Total adjustments                                        1,278         1,308  

Net cash provided by operating activities                5,926         4,017

INVESTING ACTIVITIES
Proceeds from sale of other real estate                    341           124
Purchase of investment securities
  Available for sale                                   (16,355)      (17,581)
  Held to maturity                                      (7,463)       (4,984)
Proceeds from sales of investment securities 
  Available for sale                                     7,202         2,000
Proceeds from maturities of investment securities
  Available for sale                                     6,297        11,550
  Held to maturity                                         831           500
Net increase in interest bearing deposits 
  in banks                                                (509)         (279) 
Net (increase) decrease in Federal funds sold           (1,460)         1,020
Net increase in loans                                  (23,613)      (18,289)
Purchase of premises and equipment                      (2,591)       (2,636)

Net cash used in investing activities                  (37,320)      (28,575)

FINANCING ACTIVITIES

Net increase in deposits                                28,433        24,902
Net increase (decrease) in other borrowed funds              0         1,616
Repayment of notes payable                                (115)         (787)
Dividends paid                                            (212)         (195)
Proceeds from issuance of stock                            143             4

Net cash provided by financing activities               28,249        25,540
                                    Page 7
<PAGE>
Net (increase) decrease in cash and due from banks      (3,145)          982

Cash and due from banks, beginning of period            19,480        13,646  

Cash and due from banks, end of period                 $16,335       $14,628


SUPPLEMENTAL DISCLOSURES OF CASH FLOW            
 INFORMATION
 Cash paid during the period for:
  Interest                                               9,176         8,597

  Income Taxes                                           2,795         1,284


NONCASH TRANSACTIONS
  Unrealized (gains) losses on securities available
  for sale                                                (235)          165 

                                                             
  Principal balances of loans transferred to other                   
   real estate                                             220            25

<FN>
See Accompanying Note to Consolidated Financial Statements
</TABLE>
































                                   Page 8
             
<PAGE>
                                COMMUNITY BANKSHARES, INC
                                    AND SUBSIDIARIES
 

                        NOTE TO CONSOLIDATED FINANCIAL STATEMENTS   


 NOTE 1.   BASIS OF PRESENTATION

The consolidated financial information included herein is unaudited; 
however, such information reflects all adjustments (consisting solely 
of normal recurring adjustments) which are, in the opinion of management,
necessary for a fair statement of results for the interim periods.

The results of operations for the three month and nine month periods ending
September 30, 1997 are not necessarily indicative of the results to be
expected for the full year.








































                                    Page 9

<PAGE>
                          COMMUNITY  BANKSHARES, INC.
                              AND SUBSIDIARIES

                MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL
                      CONDITION AND RESULTS OF OPERATIONS         
           
The following is management's discussion and analysis of certain significant
factors which have affected the Company's financial position and operating
results during the periods included in the accompanying consolidated
financial statements.

Financial Condition

As of September 30, 1997, the Company continues to experience growth in total 
assets, total loans  and total deposits as compared to December 31, 1996.  
Total assets, loans and deposits increased by 10.13%, 11.20% and 10.20% 
respectively.  The growth in deposits and loans is consistent with prior 
year and management's expectations.  The growth in assets is attributable 
to growth in deposits and retention of earnings.  Management expects the 
growth to continue in the foreseeable future.

Liquidity

As of September 30, 1997, the Liquidity Ratio was 27.63% which is within the
Company's target range of 25 - 30%.  The Banks have available lines of credit
to meet any unexpected liquidity needs.  Liquidity is measured by the ratio 
of net cash, short term and marketable securities to net deposits and short 
term liabilities.

Interest Rate Risk

The Company's overall interest rate risk was less than 5% of net interest 
income when subjected to rising and falling rates of 200 basis points.  The 
company has positioned itself to be protected against any perceivable change 
in rates in either direction.

Capital

Banking regulation requires the Company to maintain capital levels in 
relation to Company assets. At September 30, 1997, the Company's capital
ratios were considered satisfactory based on regulatory minimum capital 
requirements. The minimum capital requirements and the actual capital ratios
for the Company at September 30, 1997  were as follows:

                                         Actual            Regulatory minimum

Leverage                                  9.27%                      4.00%
 Risk Based Capital ratios:        
 Core Capital                            13.90%                      4.00%
 Total Capital                           15.16%                      8.00%
 






                                 Page 10

<PAGE>

Results of Operation

Net interest income for the nine month period ended September 30, 1997  
increased 19.11% to $11,678,000 over $9,804,000 for the same period for 1996. 
Interest income for the nine month period was up by 18.29% from $18,059,000 to
$21,362,000.  Earning assets were up by $42,355,000 as of September 30, 1997
over September 30,1996 or an increase of 15.53%.  The largest increase in 
earning assets was the increase in loans of $23,050,000 for this period 
as loan demand continued to be strong in our market area.  Interest 
expense on deposits increased by 17.58% during the first nine months of 1997 
over the same period for 1996 as interest bearing deposits grew by 30,875,000
or 13.21%. Interest income for the three month period ending September 30, 
1997 was up 19.45% or $1,261,000 over the three month period ending 
September 30, 1996 while interest expense on deposits was up by 15.34% or 
$440,000 for the same period.  This resulted in an increase in net interest 
income of $432,000 or 14.97% for the third quarter of 1997 when compared to 
the third quarter of 1996.  The increases in interest income and interest 
expense and net interest income were consistent with the growth experienced 
in assets and liabilities and were consistent with budget projections made by
management.

The provision for loan losses was $636,000 for the first nine months of 1997
compared to $624,000 for the first nine months of 1996, an increase of 1.92%.
This provision will fluctuate based on Small Business Administration (SBA) 
loans closed, as we have a policy of reserving 5% of the unguaranteed portion
of any SBA loans. 





























                                 Page 11

<PAGE>
The following table furnishes information on the Loan Loss Reserve for the 
current nine month reporting period and the same period for 1996.

                                                 1997                 1996 

Beginning Balance                               3,592                3,061

Less Charge Offs
     Real Estate Loans                            (35)                  (0) 
     Commercial Loans                             (94)                (113)
     Consumer Loans                              (111)                (131)    
     Credit Cards                                  (4)                  (9)

Plus Recoveries
     Real Estate Loans                             27                    0
     Commercial Loans                               9                    5
     Consumer Loans                                36                   51
     Credit Cards                                   0                    0

Plus Provision                                    636                  624      

Ending Balance                                  4,056                3,488


The Loan Loss reserve for the company is evaluated monthly and adjusted to 
reflect the risk in the portfolio in the following manner.  We use four 
different methods of measuring risk in the portfolio: (a) Risk in our watch 
list of loans and past due ratios; (b) Historical charge offs; ( c)
Peer group comparisons; and (d) Percentage of classified loans.  We then 
compare results to reserve balances to assure any and all identified risk are 
covered.

The Provision for Loan Losses for the nine month period ended September 30,
1997 represented 261% of charge offs for the same period, while the provision
for the first nine months of 1996 represented 246% of the charge offs recorded 
in that period.  The reserve at the end of September 30, 1997 represented 715% 
of nonaccrual loans while the reserve at September 30, 1996  represented
360% of nonaccrual loans.  Nonaccrual loans have decreased from $998,000 at
September 30, 1996 to $567,000 as of September 30, 1997.  The Company is well
within its policy of maintaining a loan loss reserve of at least 200% of non-
performing assets.   The Loan Loss Reserve balance to total loan ratio at 
September 30, 1997 was 1.77% as compared to 1.75% at September 30, 1996. 
Management considered the Loan Loss Reserve to be adequate to absorb any 
losses that may be incurred.   













                                 Page 12

<PAGE>
The following table is a summary of Non Accrual, Past due and Restructured
Debt:
                                      September 30, 1997
                              
                        Non Accrual        Past Due           Restructured   
                           Loans            90 days               Debt       
                                        still accruing             
 
Real Estate Loans           10                16                    0
Commercial Loans           240               387                  139
Consumer Loans             317               276                    0   

     Total                 567               679                  139

                         
                                      September 30, 1996

                        Non Accrual        Past Due           Restructured   
                           Loans            90 days               Debt       
                                        still accruing  

Real Estate Loans          487               253                    0
Commercial Loans           168               321                  624    
Consumer Loans             343               157                    0
 
          Total            998               731                  624



Loans classified for regulatory purposes as loss, doubtful, substandard, or 
special mention that have not been included in the table above do not 
represent or result from trends or uncertainties which management reasonably 
expects will materially impact future operating results, liquidity or
capital resources.  These classified loans do not represent material credits 
about which management is aware of any information which causes management to 
have serious doubts as to the ability of such borrowers to comply with the 
loan repayment terms.

Restructured debt decreased $485,000 during the past twelve months.  Non-
accrual loans decreased $431,000 during the past twelve month period.  
Management does not consider these decreases to be a trend as nonaccrual
and restructured debt will periodically fluctuate.

The bank places loans on nonaccrual at such time it is apparent that the 
collection of all principal and interest is questionable and the loan is 
either past due 90 days or bankruptcy has been filed.











                                Page 13

<PAGE>
Other income increased by $3,700,000 or 70.12% during the nine month period 
ended September 30, 1997 as compared to the same period for 1996 and
increased by $462,000 or 27.19% for the three month period ended 
September 30,1997 as compared to the same period in 1996. The reason for the 
increase for both the nine month and three month periods was an increase in 
sales generated by the Supermarket Bank division.  These large increases were
a direct result of the contract with Nations Bank and Winn Dixie which 
benefitted our subsidiary, Financial Supermarkets, Inc., by installing 54 
supermarket banks in 1997 verses 29 installations for the same period in 
1996.  This trend, while it will have some benefit to the subsidiary in 
subsequent periods due to ongoing fees generated by these new installations, 
will not continue in 1998 and management expects earnings to be much lower 
accordingly.  Service charges on deposit accounts increased 362,000 or 32.82%
for the nine month period ended September 30, 1997 as compared to the same 
periods last year.  Most of this increase is due to an increase in 
nonsufficient funds (NSF) charges resulting from our policy of offering free 
checking accounts.

Other expenses increased by $2,573,000 or 24.30% for the first nine months of
1997 over the same period in 1996 and by $507,000 or 13.83% for the third 
quarter of 1997 over the third quarter of 1996.  Salaries and benefits 
accounted for $1,709,000 and $419,000 of these amounts respectively with the 
number of personnel rising from 207 full time equivalent employees at 
September 30, 1996 to 234 full time equivalent employees at September 30,
1997. This increase was due to the opening of four additional branches during
the last twelve months and the growth experienced during that period.

Occupancy and Equipment expenses were up $240,000 for the nine month period
ending September 30, 1997 over the same period ending September 30, 1996 due 
to the four new branches.

Net income for the nine month period ended September 30, 1997 was up 71.58% 
over the same period for 1996 and net income for the three month period
ending September 30, 1997 was up 49.24% over the same three month period for 
1996.  This increase was expected but will not continue in the future due to
the end of our installing units for Nations Bank in Winn Dixie stores in 
Florida. 

On June 20, 1997 and July 31, 1997 the Company entered into agreements to
purchase the assets and assume the liabilities of the Clarkesville, Georgia
and Cleveland, Georgia branches of Sun Trust Bank, respectively.  These
transactions are scheduled to close in the fourth quarter of 1997 and the
first quarter of 1998, respectively.  These purchases will increase the market
share in both the Habersham and White County, Georgia markets.  Management
anticipates these transactions to have an immaterial effect on the Company's
liquidity, capital resources, and operations.

The company is not aware of any other known trends, events or uncertainties, 
other than the effect of events as described above, that will have or that 
are reasonably likely to have a material effect on its liquidity, capital 
resources or operations.  The Company is also not aware of any current 
recommendations by the regulatory authorities which, if they were implemented, 
would have such an effect.





                               Page 14

<PAGE>

ITEM 6.   Exhibits and Reports on Form 8-K

                (a)  Exhibits.
                   
                     Exhibit 27. Financial Data Schedule

                (b)  Reports on Form 8-K

                       None.















































                                  Page 15

<PAGE>
                                SIGNATURES



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


                                          COMMUNITY BANKSHARES, INC.


DATE:_Noverber 13, 1997____         BY:______________________________
                                       /s/ Harry L. Stephens, Executive Vice
                                       President and Chief Financial Officer










































                                Page 16