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 quarter period ended June 30, 2000

      //   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 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 30531
                   (Address of principal executive offices)
                                  (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 has (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

                     APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of
August 1, 2000:  2,178,830<PAGE>


                          COMMUNITY BANKSHARES, INC.
                               AND SUBSIDIARIES
                                     INDEX

                                     Page No.
PART I.   FINANCIAL INFORMATION

Item 1.    Financial Statements

      Consolidated Balance Sheet -
      June 30, 2000 and December 31, 1999                2

      Consolidated Statements of Income
      and Comprehensive Income for Three
      Months Ended June 30, 2000 and 1999
      and Six Months Ended June 30, 2000
      and 1999                                           3

      Consolidated Statements of Cash Flows -
      Six Months Ended June 30, 2000 and 1999            4

      Notes to Consolidated Financial Statements         5

Item 2.    Management's Discussion and Analysis of
      Financial Condition and Results of Operations      6

PART II.   OTHER INFORMATION

Item 4.    Submission of Matters to a Vote of Security Holders7

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

      Signatures                                         9
<PAGE>

                       PART I - FINANCIAL INFORMATION

ITEM 1.    FINANCIAL STATEMENTS

<TABLE>
<CAPTION>

                          COMMUNITY BANKSHARES, INC.
                               AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS
                      JUNE 30, 2000 AND DECEMBER 31, 1999
                             (Dollars in thousands)
                                  (Unaudited)

                      Assets                          2000         1999
                                                   ----------  ----------
<S>                                                  <C>         <C>
Cash and due from banks                            $  32,545   $  31,834
Interest-bearing deposits in banks                       399         161
Federal funds sold                                     5,610       2,940
Securities available-for-sale                         60,303      49,143
Securities held-to-maturity (fair value
     $32,300 and $31,349)                             32,569      31,939
Loans held for sale                                      342       1,275

Loans                                                397,231     375,593
Less allowance for loan losses                         5,957       5,682
                                                   ----------  ----------
          Loans, net                                 391,274     369,911
                                                   ----------  ----------

Premises and equipment                                13,754      13,444
Other assets                                          16,883      15,502
                                                   ----------  ----------

          Total assets                             $ 553,679   $ 516,149
                                                   ----------  ----------

       Liabilities and Shareholders' Equity

Deposits
    Non-interest-bearing demand                    $  73,340   $  65,815
    Interest-bearing demand                          105,579      99,185
    Savings                                           23,973      20,863
    Time, $100,000 and over                           89,576      79,925
    Other time                                       186,516     178,268
                                                   ----------  ----------
          Total deposits                             478,984     444,056

Federal Home Loan Advances                            15,000      15,000
Other borrowings                                         977       1,054
Other liabilities                                     10,716      11,237
                                                   ----------  ----------
          Total liabilities                          505,677     471,347
                                                   ----------  ----------

Commitments and contingent liabilities

Redeemable common stock held by ESOP, 382,580
       and 380,780 shares outstanding at
       June 30,2000 and December 31, 1999             14,048      13,982
                                                     --------    --------

Shareholders' equity
    Common stock, par value $1; 5,000,000
        Shares authorized; 2,178,830
        Shares issued and outstanding                  2,179       2,179
    Capital surplus                                    6,115       6,115
    Retained earnings                                 26,894      23,853
    Accumulated other comprehensive income,
         Net of tax                                   (1,234)     (1,327)
                                                   ----------  ----------
          Total shareholders' equity                  33,954      30,820
                                                   ----------  ----------

 Total liabilities and shareholders' equity        $ 553,679   $ 516,149
                                                   ----------  ----------
<FN>
See Notes to Consolidated Financial Statements.
</FN>
</TABLE>
<PAGE>


<TABLE>
<CAPTION>
                          COMMUNITY BANKSHARES, INC.
                               AND SUBSIDIARIES
                       CONSOLIDATED STATEMENTS OF INCOME
                            AND COMPREHESIVE INCOME
                 THREE MONTHS ENDED JUNE 30, 2000 AND 1999 AND
                    SIX MONTHS ENDED JUNE 30, 2000 AND 1999
               (Dollars in thousands, except per share amounts)
                                  (Unaudited)

                                      Three Months         Six Months
                                         Ended               Ended
                                        June 30,            June 30,
                                     2000     1999        2000     1999
                                   -----------------  --------- --------
<S>                                 <C>      <C>        <C>      <C>
Interest income
    Loans                          $ 10,154 $ 8,642   $  19,654 $ 16,778
    Taxable securities                 737      603       1,391    1,156
    Nontaxable securities              532      494       1,041      978
    Deposits in banks                    -        5           8       11
    Federal funds sold                 192      176         448      437
                                   -------- --------  --------- --------
          Total interest income     11,615    9,920      22,542   19,360
                                   -------- --------  --------- --------

Interest expense
    Deposits                         5,154    4,188       9,996    8,312
    Other borrowings                   234       82         458      161
                                   -------- --------  --------- --------
          Total interest expense     5,388    4,270      10,454    8,473
                                   -------- --------  --------- --------

          Net interest income        6,227    5,650      12,088   10,887
Provision for loan losses              352      388         694      657
                                   -------- --------  --------- --------
          Net interest income
          after provision
          for loan losses            5,875    5,262      11,394   10,230
                                   -------- --------  --------- --------

Other income
    Service charges on deposit
      accounts                         864      700      1,613    1,361
    Other service charges and fees     206      124        401      264
    Gains on sale of loans              51       99        175      156
    Trust Department fees               22       22         50       68
    Nonbank subsidiary
      non-interest income            1,933    1,564      4,006    2,999
    Other operating income             185      201        306      379
                                   -------- --------  --------- --------
          Total other income         3,261    2,710      6,551    5,227
                                   -------- --------  --------- --------

Other expenses
    Salaries and employee benefits   3,541    3,246      7,028    6,199
    Occupancy expense                  379      346        743      669
    Equipment expense                  657      655      1,274    1,262
    Other operating expenses         2,053    1,801      4,071    3,555
                                   -------- --------  --------- --------
          Total other expenses       6,630    6,048     13,116   11,685
                                   -------- --------  --------- --------

          Income before income
            taxes                    2,506    1,924      4,829    3,772

Income tax expense                     811      528      1,533    1,044
                                   -------- --------  --------- --------

          Net income               $ 1,695  $ 1,396   $  3,296  $ 2,728
                                   -------- --------  --------- --------

Other comprehensive income (loss):
     Unrealized gains (losses) on
       securities available-
       for-sale arising during
          the period                    45     (609)        94     (881)
                                   -------- --------  --------- --------
     Total other comprehensive
        income (loss)                   45     (609)        94     (881)
                                   -------- --------  --------- --------

          Comprehensive income     $ 1,740  $   787   $  3,390  $ 1,847
                                   ======== ========  ========= ========

Basic earnings per common share    $  0.78  $  0.64   $   1.51  $  1.26
                                   -------- --------  --------- --------
Diluted earnings per common share     0.77     0.63       1.50     1.24
                                   -------- --------  --------  ---------
Cash dividends per share of        $ .0435  $  .039   $   .087  $  .079
common stock                       -------- --------  --------- --------
<FN>
See Notes to Consolidated
Financial Statements.
</FN>
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                          COMMUNITY BANKSHARES, INC.
                               AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
                            (Dollars in thousands)
                                  (Unaudited)

                                                       2000        1999
                                                    --------    --------
<S>                                                 <C>         <C>
OPERATING ACTIVITIES
    Net income                                    $   3,296   $   2,728
    Adjustments to reconcile net income to
        net cash provided by operating
        activities:
        Depreciation and amortization                 1,305       1,131
        Provision for loan losses                       694         657
        Provision for other real estate                   5           -
        Deferred income taxes                          (121)       (319)
        Increase (decrease) in loans held for
          sale                                          933        (458)
        Net (gains) losses on sale of other real
          estate                                        (33)        (39)
        Increase in interest receivable                (654)       (428)
        Increase (decrease) in interest payable       2,216        (983)
        Increase in taxes payable                       168         287
        Increase (decrease) in accounts
          receivable of nonbank subsidiary              141         245
        Increase (decrease) in work in
          process of nonbank subsidiary                (312)        (18)
        Increase (decrease) in accruals and
          payables of nonbank subsidiary             (2,841)     (1,148)
        Other operating activities                     (551)         39
                                                  ----------  ----------

              Net cash provided by
                 operating activities                 4,246       1,694
                                                  ----------  ----------

INVESTING ACTIVITIES
    Purchases of securities available-for-sale      (12,499)    (16,488)
    Proceeds from maturities of securities
      available-for-sale                              1,493      10,203
    Purchases of securities held-to-maturity         (1,737)       (448)
    Proceeds from maturities of securities
      held-to-maturity                                1,107         488
    Net decrease in Federal funds sold               (2,670)     10,730
    Net increase in interest-bearing
     deposits in banks                                 (238)        (29)
    Net increase in loans                           (22,852)    (36,532)
    Purchase of premises and equipment               (1,416)     (1,115)
    Proceeds from sales of other real estate            615         276
                                                  ----------  ----------

              Net cash used in
                investing activities                (38,197)    (32,915)
                                                  ----------  ----------

FINANCING ACTIVITIES
    Net increase (decrease) in deposits              34,928      30,069
    Increase in other borrowings                          -         400
    Repayment of other borrowings                       (77)        (77)
    Proceeds from issuance of Common
      Stock                                               -          30
    Dividends paid                                     (189)       (171)
                                                  ----------  ----------
              Net cash provided by
                financing activities                 34,662      30,251
Net increase (decrease) in cash and
   due from banks                                 $     711   $    (970)

Cash and due from banks at beginning of the
     Period                                          31,834      26,796
                                                  ----------  ----------

Cash and due from banks at end of the Period      $  32,545   $  25,826
                                                  ----------  ----------

SUPPLEMENTAL DISCLOSURES
    Cash paid for:
        Interest                                  $   9,456   $   9,456

        Income taxes                              $   1,486   $   1,076

NONCASH TRANSACTIONS
    Unrealized (gains) losses on
      securities available-for sale               $   (154)   $   1,468

    Principal balances on loans and premises
      and equipment transferred to other
      real estate                                 $     795   $      67

 <FN>
 See Notes to Consolidated Financial Statements
 </FN>
 </TABLE>
 <PAGE>


                           COMMUNITY BANKSHARES, INC.
                                AND SUBSIDIARIES

                   NOTES 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 opinion of management, necessary for a
 fair statement of results for the interim periods.

 The results of operations for the three and six month periods ending June 30,
 2000 are not necessarily indicative of the results to be expected for the
 full year.

 NOTE 2.   CURRENT ACCOUNTING DEVELOPMENTS

 In June 1998, the Financial Accounting Standards Board issued SFAS No. 133,
 "Accounting for Derivative Instruments and Hedging Activities".  The
 effective date of this statement has been deferred by SFAS No. 137 until
 fiscal years beginning after June 15, 2000.  However, the statement permits
 early adoption as of the beginning of any fiscal quarter after its issuance.
 The Company expects to adopt this statement effective January 1, 2001.  SFAS
 No. 133 requires the Company to recognize all derivatives as either assets or
 liabilities in the balance sheet at fair value.  For derivatives that are not
 designated as hedges, the gain or loss must be recognized in earnings in the
 period of change.  For derivatives that are designated as hedges, changes in
 the fair value of the hedged assets, liabilities, or firm commitments must be
 recognized in earnings or recognized in other comprehensive income until the
 hedged item is recognized in earnings, depending on the nature of the hedge.
 The ineffective portion of a derivative's change in fair value must be
 recognized in earnings immediately.  Management has not yet determined what
 effect the adoption of SFAS No. 133 will have on the Company's earnings or
 financial position.


 NOTE 3    EARNINGS PER COMMON SHARE

 The following is a reconciliation of net income (the numerator) and
 weighted-average shares outstanding (the denominator) used in determining
 basic and diluted earnings per common share (EPS).
 <TABLE>
 <CAPTION>
                          Six Months Ended June 30, 2000
                         (Dollars and shares in Thousands,
                             except per share amounts)

                          Net     Weighted-Average
                         Income       Shares      Per Share
                       (Numerator) (Denominator)    Amount
<S>                        <C>             <C>         <C>
Basic EPS                  $1,695           2,179      $0.78
Effect of Dilutive
  Securities
  Stock options                 0              20
                       ----------      ---------- ----------
Diluted EPS                $1,695           2,199      $0.77
                       ==========      ========== ==========
 </TABLE>
 <TABLE>
 <CAPTION>

                          Three Months Ended June 30,2000
                         (Dollars and shares in Thousands,
                             except per share amounts)
                          Net     Weighted-Average
                         Income       Shares      Per Share
                       (Numerator) (Denominator)    Amount

<S>                        <C>             <C>         <C>
Basic EPS                  $1,396           2,172      $0.64
Effect of Dilutive
  Securities
  Stock options                 0              27
                       ----------      ---------- ----------
Diluted EPS                $1,396           2,199      $0.63
                       ==========      ========== ==========

                          Six Months Ended June 30, 2000
                        (Dollars and shares in Thousands,
                             except per share amounts)
                          Net     Weighted-Average
                         Income       Shares      Per Share
                       (Numerator) (Denominator)    Amount
<S>                        <C>             <C>         <C>
Basic EPS                  $3,296           2,179      $1.51
Effect of Dilutive
  Securities
  Stock options                 0              20
                       ----------      ---------- ----------
Diluted EPS                $3,296           2,199      $1.50
                       ==========      ========== ==========
 </TABLE>
 <TABLE>
 <CAPTION>

                          Six Months Ended June 30, 1999
                         (Dollars and shares in Thousands,
                             except per share amounts)
                          Net     Weighted-Average
                         Income       Shares      Per Share
                       (Numerator) (Denominator)    Amount

<S>                        <C>             <C>         <C>
Basic EPS                  $2,728           2,171      $1.26
Effect of Dilutive
  Securities
  Stock options                 0              27
                       ----------      ---------- ----------
Diluted EPS                $2,728           2,198      $1.24
                       ==========      ========== ==========


 </TABLE>
 NOTE 4    SEGMENT INFORMATION

 Selected  segment  information by industry segment for the three and six month
 periods ended June 30, 2000 and 1999 is as follows:
   <TABLE>
   <CAPTION>
                                        Reportable Segments
                                       (Dollars in thousands)
                               ---------------------------------------
    For the three month period             Financial      All
   ended June 30, 2000          Banking   Supermarkets  Other    Total
   ---------------------------- --------- ---------    -------- ---------
   <S>                          <C>        <C>          <C>     <C>
   Revenue from external          12,980     1,781          91    14,852
   customers
   Intersegment revenues           (192)       383         581       772
   (expenses)
   Segment profit (loss)           1,357       675        (198)    1,834
   Segment assets                555,166    16,825       3,011   575,002
   </TABLE>

   <TABLE>
   <CAPTION>

                                        Reportable Segments
                                       (Dollars in thousands)
                               ---------------------------------------
    For the three month period             Financial      All
   ended June 30, 1999          Banking   Supermarkets  Other    Total
   ---------------------------- --------- ---------    -------- ---------

   <S>                          <C>        <C>          <C>      <C>
   Revenue from external         $11,181    $1,568         $43    $12,792
   customers
   Intersegment revenues           (121)       154         395        428
   (expenses)
   Segment profit (loss)           1,319       358        (284)     1,393
   Segment assets                499,619    13,429       2,684    515,732
   </TABLE>
   <TABLE>
   <CAPTION>

                                        Reportable Segments
                                       (Dollars in thousands)
                               ---------------------------------------
   For the six month period               Financial      Allr     Total
   ended June 30, 2000          Banking   Supermarkets  Other     Total
   ---------------------------- --------- ---------    --------  --------

   <S>                           <C>        <C>         <C>       <C>
   Revenue from external         $25,250    $4,014        $128    $29,392
   customers
   Intersegment revenues           (367)       699       1,163      1,495
   Segment profit                  2,616     1,378        (466)     3,528
   </TABLE>
   <TABLE>
   <CAPTION>

                                        Reportable Segments
                                       (Dollars in thousands)
                               ---------------------------------------

   For the six month period               Financial     Other     Total
   ended June 30, 1999          Banking   Supermarkets  Other     Total
   ---------------------------- --------- ---------    --------  --------

   <S>                           <C>        <C>          <C>      <C>
   Revenue from external         $21,828    $3,062         $85    $24,975
   customers
   Intersegment revenues           (244)       307         789        852
   Segment profit                  2,489       817        (531)     2,775
   </TABLE>

   <TABLE>
   <CAPTION>

                                  For the three        For the six
                                      months             months
                                  Ended June, 30     Ended June, 30
                                ------------------- ------------------

                                 2000      1999      2000      1999
   <S>                            <C>       <C>      <C>       <C>
   Net Income
   Total profit for               $2,032    $1,677   $3,994    $3,306
   reportable segments
   Non-reportable segment loss      (198)     (284)    (466)     (531)
   Elimination of                   (139)        3     (232)      (47)
   intersegment (gains) losses
      Total consolidated          $1,695    $1,396   $3,296    $2,728
   other income
  </TABLE>

 <PAGE>


                           COMMUNITY BANKSHARES, INC.
                                AND SUBSIDIARIES

                MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL
                      CONDITION AND RESULTS OF OPERATIONS

 Forward Looking Statements
 ----------------------------------------------
 The following appears in accordance with the Securities Litigation Reform
 Act.  These financial statements and financial review include forward looking
 statements that involve inherent risks and uncertainties.  A number of
 important factors could cause actual results to differ materially from those
 in the forward looking statements.  Those factors include fluctuations in
 interest rates, inflation, government regulations, economic conditions, Year
 2000 issues and competition in the geographic business areas in which the
 Company conducts its operations.

 Management's Discussion and Analysis
 ----------------------------------------------
 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 June 30, 2000, the Company continues to experience growth in total
 assets, total loans and total deposits as compared to December 31, 1999.
 Total assets, loans, and deposits increased by 7.27%, 5.49% and 7.87%
 respectively.  The growth in all areas is slightly less than the same period
 last year but consistent with 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 future.

 Liquidity

 As of June 30, 2000, the Liquidity Ratio was 20.16% which is within the
 Company's target range of 20 - 25%.  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 uses a simulation model to monitor changes in net interest income
 due to changes in market rates.  The model of rising, falling and stable
 interest rate scenarios allows management to monitor and adjust interest rate
 sensitivity to minimize the impact of market rate swings.  The analysis of
 impact on net interest margins as well as market value of equity over a
 twelve month period is subjected to a 200 basis point increase and decrease
 in rate. The Company's overall interest rate risk was less than 3% of net
 interest income subjected to rising and falling rates of 200 basis points.
 The Company's policy is to allow no more than +- 8% change in net interest
 income for these scenarios.  Therefore, the Company is within its policy
 guidelines and is protected from any significant impact due to market rate
 changes.

 Capital

 Banking regulation requires the Company and banks to maintain capital levels
 in relation to Company and bank assets.  At June 30, 2000, the Company's and
 banks' capital ratios were considered satisfactory based on regulatory
 minimum capital requirements.  The minimum capital requirements and the
 actual capital ratios for the Company at June 30, 2000 were as follows:
 <TABLE>
 <CAPTION>

                                      Actual        Regulatory
                                                       Minimum
    <S>                              <C>                <C>
    Leverage                           8.44%             4.00%
        Risked Based
    Capital ratios:
        Core Capital                  10.98%             4.00%
        Total Capital                 12.23%             8.00%

 </TABLE>
 Results of Operation

 Net interest income for the six month period ended June 30, 2000 is up 11.03%
 over the same period for 1999, from $10,887,000 to $12,088,000, and is up
 10.21% for the three month period ending June 30, 2000 from $5,650,000 to
 $6,227,000 for 2000.  Interest income was up by 16.44% for the six month
 period ending June 30, 2000 from $19,360,000 to $22,542,000 and up 17.09% for
 the three month period ending June 30, 2000 from $9,920,000 to $11,615,000.
 The increase in interest income is due to an increase of 12.39% or
 $54,728,000 in earning assets from June 30, 1999 to June 30, 2000.
 Investment securities increased by $14,655,000 or 18.74% during the same
 period primarily due to slightly less loan growth compared to prior year.
 Total loans increased during the last year by $46,681,000 or 13.30%. Interest
 expense was up 23.38% or $1,981,000 for the six month period ended June 30,
 2000, over the same period in 1999 and up 26.18% or $1,118,000 for the three
 month period ending June 30, 2000, as compared to 1999. The increase in
 interest expense is due to an increase in interest bearing liabilities of
 $53,602,000 or 14.60% from June 30, 1999 to June 30, 2000 as well as an
 increase in the Prime rate during the last twelve months which has resulted
 in interest bearing deposits repricing at higher rates.  Interest bearing
 deposits increased by 12.04% or $43,602,000 from June 30, 1999 to June 30,
 2000.  Federal Home Loan Advances increased by $10,000,000 or 200% from June
 30, 1999 to June 30, 2000 to fund growth.  The increase in interest income,
 interest expense, and net interest income were consistent with the budget
 projections made by management and are on target to be consistent with annual
 projections.

 The provision for loan losses was $694,000 for the first six months of 2000.
 This provision will fluctuate based on Small Business Administration (SBA)
 loans closed, as we have a policy of reserving 5% of the un-guaranteed
 portion of any SBA loans.  The Company currently has reserves totaling
 $1,052,318 for its un-guaranteed portion of SBA loans.

 The following table furnishes information on the Loan Loss Reserve for the
 six month reporting period and the same period for 1999.
 <TABLE>
 <CAPTION>
                                             2000      1999
     <S>                                   <C>       <C>
     Beginning Balance                    $ 5,682   $ 4,863

     Less Charge Offs:
          Real Estate Loans                    (0)      (23)
          Commercial Loans                   (238)     (169)
          Consumer Loans                     (303)     (186)
          Credit Cards                         (5)        0
                                         --------  --------
                                             (546)     (378)
                                         --------  --------
     Plus Recoveries
          Real Estate Loans                     0         4
          Commercial Loans                     45        33
          Consumer Loans                       82       141
                                         --------  --------
                                              127       178
                                         --------  --------
     Net Charge-offs                         (419)     (200)
                                         --------  --------
     Plus Provision                           694       657
                                         --------  --------
     Ending Balance                       $ 5,957   $ 5,320
                                         ========  ========
 </TABLE>

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 six month period ended June 30, 2000
represented 128% of total charge offs for the same period, while the
provision for the first six months of 1999 represented 174% of the charge
offs recorded in that period.  The reserve at the end of June 30, 2000
represented 309% of non accrual loans while the reserve at June 30, 1999
represented 414% of non accrual loans.  Non accrual loans have increased from
$1,284,000 at June 30, 1999 to $1,918,000 as of June 30, 2000.  The total of
past due loans greater than 90 days and non accrual loans has decreased from
$3,462,000 in June 1999, which represents .98% of outstanding loans to
$3,172,000 as of June 30, 2000, which represents .80% of outstanding loans.
Of the $3,172 of non performing loans on June 30, 2000, $795,000 is
guaranteed by the U. S. Government.  Our reserve represents 250% of the
remaining portion of non performing loans which is within our guideline of
maintaining a reserve of at least 200% of non performing assets.  The Loan
Loss Reserve balance to total loan ratio at June 30, 2000 was 1.49% as
compared to 1.52% at June 30, 1999.  Management considered the Loan Loss
Reserve to be adequate to absorb any losses that may be incurred.

The following table is a summary of Non Accrual, Past due and Restructured
Debt
<TABLE>
<CAPTION>
                                 June 30, 2000

                       Non-accrual    Past Due   Restructured
                          Loans       90 days        Debt
                                       still
                                      accruing
    <S>                      <C>          <C>             <C>
    Real Estate Loans            $0           $0            $0
    Commercial Loans          1,272          853           765
    Consumer Loans              646          401             0
                           --------     --------      --------
    Total                    $1,918       $1,254          $765
                           ========     ========      ========

 </TABLE>

 <TABLE>
 <CAPTION>
                                 June 30, 1999

                       Non-accrual    Past Due   Restructured
                          Loans       90 days        Debt
                                       still
                                      accruing
    <S>                      <C>          <C>             <C>
    Real Estate Loans            $0           $0            $0
    Commercial Loans            665        1,256           752
    Consumer Loans              619          922             0
                           --------     --------      --------
    Total                    $1,284       $2,178          $752
                           ========     ========      ========
 </TABLE>
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 borrows to comply with the loan
payment terms.

The banks place loans on non-accrual at such a 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.

Other income increased by 25.33% or $1,324,000 during the six month period
ended June 30, 2000 as compared to the same period for 1999 and the three
month period ending June 30, 2000 showed a 20.33% or $551,000 increase over
the same three month period of 1999.  The majority of these increases,
$1,007,000 and $369,000, respectively, are due to installations of
supermarket bank units associated with the Canadian Imperial Bank of Commerce
agreement which is included in nonbank subsidiary non-interest income.  In
addition to the 40 units installed in the fourth quarter of 1999 and the
first half of 2000, on June 30, 2000, CIBC became obligated to purchase 210
supermarket banking units from our subsidiary Financial Supermarkets, Inc.
over the next three years.  Service charges on deposit accounts increased by
$252,000 or 18.52% for the six month period ended June 30, 2000, and $164,000
or 23.43% for the three month period ended June 30, 2000, as compared to the
same periods in 1999.  The major change was the increase in non-sufficient
funds (NSF) charges of $230,000 and $138,000 for the six month period and the
three month period ended June 30, 2000, respectively, compared to the same
period in 1999.  NSF charges increased primarily as a result of the Company's
continued growth in accounts in the totally free checking program.
Other operating expenses increased by 14.51% or $516,000 for the six month
period ended June 30, 2000, and 13.99% or $252,000 for the three month period
ending June 30, 2000 as compared to the same periods in 1999.  Salaries and
benefits increased by $829,000 or 13.37% during the six month period ended
June 30, 2000 compared to the same period in 1999.  Full time equivalent
employees increased from 303 at the end of June 1999 to 347 at the end of
June 2000.  Equipment and occupancy expenses were up by 4.45% or $86,000 for
the six month period ended June 30, 2000, and 3.50% or $35,000 for the three
month period ending June 30, 2000, as compared to the same period in 1999.
The increase in full time equivalent employees as well as equipment and
occupancy expenses was influenced by the addition of three new supermarket
banking centers and two expansions of existing supermarket banking centers
during the past twelve months as well as the overall growth of the Company's
banking operations.  In addition, the increase in the equipment and occupancy
expense is a direct result of the depreciation and operating expense
associated with the Company's new data processing system which  became fully
operational during the first six months of 2000.

The Company incurred income tax expenses of $811,000 which represents
aneffective rate of 32% for the three month period ended June 30, 2000 as
compared to $528,000 which represents an effective tax rate of 27% for the
same period in 1999.  In addition, the Company incurred income tax expenses
of $1,533,000 which represents an effective rate of 32% for the six month
period ended June 30, 2000 as compared to $1,044,000 which represents an
effective tax rate of 28% for the same period in 1999.  The increase in the
effective tax rate is related to the increased income of Financial
Supermarkets, which does not have a portion of its income tax-free as do the
Community Banking Subsidiaries.

Net income for the six month period ended June 30, 2000, was $3,296,000 or an
increase of 20.82% and for the three month period ended June 30, 2000, was
$1,695,000 or an increase of 21.42% over the same periods for 1999.
Management anticipates income to be in excess of prior years levels due to
the increased sales of supermarket bank units associated with the first phase
of an agreement with Canadian Imperial Bank of Commerce.

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.

YEAR 2000 COMPLIANCE

Based on a review of the Bank's and the Company's business since January 1,
2000, the Company has not experienced any material effects of the Year 2000
problem. Although the Company has not been informed of any material risks
associated with the Year 2000 problem from third parties, there can be no
assurance that the Company will not be impacted in the future. The Company
will continuously monitor its business applications and maintain contact with
its third party vendors and key business partners to resolve any Year 2000
problems that may arise in the future.


<PAGE>

                          PART II - OTHER INFORMATION

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

 The Annual Meeting of the Shareholders of the Company was held on April 12,
 2000.  Total shares outstanding amounted to 2,178,830.  A total of 1,899,964
 shares (87.20%) were represented by shareholders in attendance or by proxy.
 The following directors were re-elected to serve for a one-year term.  The
 results of the election were as follows:

 <TABLE>
 <CAPTION>
                                        Shares Voted:
                                   For      Against   Abstain
                               ---------------------------------
    <S>                         <C>              <C>         <C>
    Steven C. Adams              1,899,904        60          0
    Edwin B. Burr                1,899,904        60          0
    Harry H. Purvis              1,899,904        60          0
    H. Calvin Stovall            1,899,904        60          0
    Dean C. Swanson              1,899,904        60          0
    George D. Telford            1,899,904        60          0
    J. Alton Wingate             1,899,904        60          0
    Lois M. Wood-Schroyer        1,899,904        60          0

 </TABLE>

 ITEM 6.   Exhibits and Reports on Form 8-K

(a)   Exhibits

           Exhibit 10.1  Consulting Agreement between Canadian Imperial Bank
                         of Commerce and Financial Supermarkets, Inc., dated
                         March 2, 1999*

           Exhibit 27.   Financial Data Schedule
---------------------
*     Portions of this exhibit have been omitted pursuant to a Confidential
      Treatment Request filed with the Securities and Exchange Commission.


(b)   Reports on Form 8-K

                None
<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:  August 14, 2000              BY:  /s/  Harry L. Stephens
                                              Harry L. Stephens,
                                              Executive Vice President and
                                              Chief Financial Officer
<PAGE>