UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549

FORM 10-Q



|/X/ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
|--- | ----------------------------------------------------------------------------------------

For the quarter period ended
September 30, 2001

|/_/ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
|--- | -----------------------------------------------------------------------------------------

For the transition period from _______ to _______

Commission File Number: 33-81890

Community Bankshares, Inc.

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|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

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N/A

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APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the
issuers classes of common stock, as of
November 30, 2001:   2,186,330



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|COMMUNITY BANKSHARES, INC.
AND SUBSIDIARIES
INDEX
|-------------------------------------------------
|                                                 
|                                                 
|                                                 
|PART I.                                          
|                                                 
|Item 1.                                          
|                                                 
|                                                 
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|                                                 
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|                                                 
|                                                 
|                                                 
|Item 2.                                          
|                                                 
|                                                 
|PART II                                          
|                                                 
|Item 6.                                          
|                                                 
|                                                 



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PART I - FINANCIAL INFORMATION

Item 1.      Financial Statements

COMMUNITY BANKSHARES, INC.
AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2001 AND DECEMBER 31, 2000
(Dollars in thousands)

(Unaudited)2001


2000AssetsCash and due from banks
$
31,257

$
38,410Interest-bearing deposits in banks

496


454Federal funds sold

23,545


12,125Securities available-for-sale

71,749


61,069Securities held-to-maturity (fair value $32,058 and $31,983)

29,614


31,193Loans held for sale

308


1,012Loans

447,333


417,909Less allowance for loan losses

6,649


6,307Loans, net

440,684


411,602Premises and equipment

15,940


14,845Other assets

19,012


19,613Total assets
$
632,605

$
590,323Liabilities and Shareholders EquityDepositsNon-interest-bearing demand
$
78,158

$
77,960Interest-bearing demand

113,600


101,486Savings

26,236


21,913Time, $100,000 and over

114,002


102,842Other time

213,584


203,294Total deposits

545,580


507,495Federal Home Loan Bank advances

10,000


10,000Other borrowings

1,876


844Other liabilities

17,715


18,646Total liabilities

575,171


536,985Redeemable common stock held by ESOP, 403,342
       and 370,539 shares outstanding  at September 30, 2001
       and December 31, 2000

16,424


15,088Shareholders equityCommon stock, par value $1; 5,000,000 shares authorized; 2,184,830 and
     2,181,830 shares issued and outstanding at September 30, 2001 and
     December 31, 2000, respectively

2,185


2,182Capital surplus

6,169


6,142Retained earnings

33,253


29,976Accumulated other comprehensive income (
loss), net of tax

773


(50)Less unearned ESOP Shares

(1,370)


-Total shareholders equity

41,010


38,250Total liabilities and shareholders equity
$
632,605

$
590,323See Notes to Consolidated Financial Statements.


2

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COMMUNITY BANKSHARES, INC.
AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME

Three Months Ended September 30, 2001 and 2000 and
Nine Months Ended September 30, 2001 and 2000

(Dollars in thousands, except per share amounts)
(Unaudited)

Three Months Ended


Nine Months EndedSeptember 30,


September 30,2001


2000


2001


2000Interest incomeLoans
$
10,621

$
10,479

$
32,432

$
30,134Taxable securities

645


745


2,030


2,137Nontaxable securities

615


557


1,836


1,598Deposits in banks

9


4


23


11Federal funds sold

185


199


633


646Total interest income

12,075


11,984


36,954


34,526Interest expense on depositsDeposits

5,642


5,514


17,606


15,509Other borrowings

170


232


497


691Total interest expense

5,812


5,746


18,103


16,200Net interest income

6,263


6,238


18,851


18,326Provision for loan losses

401


382


1,201


1,076Net interest income after provision for loan
       losses

5,862


5,856


17,650


17,250Other incomeService charges on deposit accounts

1,155


958


3,220


2,571Other service charges and fees

328


231


900


632Gains on sale of loans

32


88


95


263Trust Department fees

31


24


101


74Nonbank subsidiary non-interest income

1,648


1,742


7,658


5,747Other operating income

201


184


635


541Total other income

3,395


3,203


12,609


9,754Other expensesSalaries and employee benefits

3,998


3,523


12,510


10,551Occupancy expense

436


415


1,308


1,158Equipment expense

606


684


2,248


1,958Other operating expenses

2,382


1,892


7,185


5,963Total other expenses

7,422


6,514


23,251


19,630Income before income taxes

1,835


2,545


7,008


7,374Income tax expense

516


766


2,067


2,299Net income
$
1,319

$
1,779

$
4,941

$
5,075Other comprehensive income:Unrealized gains on ecurities
       available-for-sale arising during the
       period

466


403


823


496Total other comprehensive income

466


403


823


496Comprehensive income
$
1,785

$
2,182

$
5,764

$
5,571Basic earnings per common share
$
0.60

$
0.82

$
2.26

$
2.33Diluted earnings per common share

0.60


0.81


2.24


2.31Cash dividends per share of common stock
$
.05

$
.0435

$
.10

$
.087See Notes to Consolidated Financial Statements.


3

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COMMUNITY BANKSHARES, INC.
AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

For The Nine Months Ended September 30, 2001 and 2000

(Dollars in thousands)
(Unaudited)

2001


2000OPERATING ACTIVITIESNet income
$
4,941

$
5,075Adjustments to reconcile net income to net cash provided
     by operating  activities:Depreciation and amortization

1,927


2,012Provision for loan losses

1,201


1,076Provision for other real estate

0


5Deferred income taxes

(340)


(201)Decrease in loans held for sale

704


1,045Net (gains) losses on sale of other real estate

14


(35)(Increase) decrease in interest receivable

167


(1,094)Increase in interest payable

4,474


1,760Increase (decrease) in taxes payable

(1,012)


211Increase (decrease) in accounts receivable of nonbank subsidiary

959


184Decrease in work in process of nonbank subsidiary

595


(1,045)(Increase) decrease in accruals and payables of nonbank subsidiary

(4,657)


3,922Other operating activities

(1,074)


(1,265)Net cash provided by Operating activities

7,899


11,650INVESTING ACTIVITIESPurchases of securities available-for-sale

(31,978)


(13,826)Proceeds from sale of securities available-for-sale

5,719


0Proceeds from maturities of securities available-for-sale

16,961


2,248Purchases of securities held-to-maturity

0


(1,737)Proceeds from maturities of securities held-to-maturity

1,579


1,760Net increase in Federal funds sold

(11,420)


(11,130)Net increase in interest-bearing deposits in banks

(42)


(214)Net increase in loans

(32,974)


(28,168)Purchase of premises and equipment

(2,695)


(2,160)Proceeds from sales of other real estate

978


1,242Net cash used in Investing activities

(53,872)


(51,985)FINANCING ACTIVITIESNet increase in deposits

38,085


40,223Decrease in FHLB advances

0


(5,000)Increase in other borrowings

1,032


-Repayment of other borrowings

0


(115)Proceeds for the exercise of stock options

30


-Dividends paid

(327)


(284)Net cash provided by financing activities

38,820


34,824Net decrease in cash and due from banks
$
(7,153)

$
(5,511)Cash and due from banks at beginning of the period

38,410


31,834Cash and due from banks at end of the period
$
31,257

$
26,323SUPPLEMENTAL DISCLOSURESCash paid for:Interest
$
13,629

$
17,960Income taxes
$
3,419

$
2,289NONCASH TRANSACTIONSUnrealized gains on securities available-for sale
$
(1,372)

$
(827)Principal balances on loans and premises 
 and equipment transferred to other  real estate
$
2,691

$
1,101


See Notes to Consolidated Financial Statements

4

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

The results of operations for the three and nine month periods ending September 30, 2001 are not necessarily indicative of the results to be expected for the full year.

NOTE 2.            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).

Three Months Ended September 30, 2001
(Dollars in Thousands, except per share amounts)Net Income
Weighted-Average Shares
Per Share AmountBasic EPS
$
1,319
2,185
$ 0.60Effect of Dilutive Securities Stock options
0
19Diluted EPS
$
1,319
2,204
$ 0.60




Three Months Ended September 30, 2000
(Dollars in Thousands, except per share amounts)Net Income
Weighted-Average Shares
Per Share AmountBasic EPS
$ 1,779
2,179
$ 0.82Effect of Dilutive Securities Stock options
0
20Diluted EPS
$ 1,779
2,199
$ 0.81




Nine Months Ended September 30, 2001
(Dollars in Thousands, except per share amounts)Net Income
Weighted-Average Shares
Per Share AmountBasic EPS
$ 4,941
2,183
$ 2.26Effect of Dilutive Securities Stock options
0
19Diluted EPS
$ 4,941
2,202
$ 2.24




Nine Months Ended September 30, 2000
(Dollars in Thousands, except per share amounts)Net Income
Weighted-Average Shares
Per Share AmountBasic EPS
$ 5,075
2,179
$ 2.33Effect of Dilutive Securities Stock options
0
20Diluted EPS
$ 5,075
2,199
$ 2.31


5

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NOTE 3.            SEGMENT INFORMATION

Selected segment information by industry segment for the three and nine month periods ended September 30, 2001 and 2000 is as follows:

|                                                    | Reportable Segments
(Dollars in thousands)
|--------------------------------------------------- | ------------------------------------------
|                                                    |                                           
|For the three month period ended September 30, 2001 | Banking                                   
|                                                    |                                           
|                                                    |                                           
|Revenue from external customers                     | $                                         
|Intersegment revenues (expenses)                    |                                           
|Segment profit (loss)                               |                                           
|Segment assets                                      | $                                         
|                                                    |                                           
|                                                    |                                           
|                                                    | Reportable Segments
(Dollars in thousands)
|                                                    |                                           
|For the three month period ended September 30, 2001 | Banking                                   
|                                                    |                                           
|                                                    |                                           
|Revenue from external customers                     | $                                         
|Intersegment revenues (expenses)                    |                                           
|Segment profit (loss)                               |                                           
|Segment assets                                      | $                                         
|                                                    |                                           
|                                                    |                                           
|                                                    | Reportable Segments
(Dollars in thousands)
|                                                    |                                           
|For the nine month period ended September 30, 2001  | Banking                                   
|                                                    |                                           
|                                                    |                                           
|Revenue from external customers                     | $                                         
|Intersegment revenues                               |                                           
|Segment profit                                      | $                                         
|Segment assets                                      | $                                         
|                                                    |                                           
|                                                    |                                           

6

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|                                                   | Reportable Segments
(Dollars in thousands)
|-------------------------------------------------- | ------------------------------------------
|                                                   |                                           
|For the nine month period ended September 30, 2001 | Banking                                   
|                                                   |                                           
|                                                   |                                           
|Revenue from external customers                    | $                                         
|Intersegment revenues                              |                                           
|Segment profit                                     | $                                         
|Segment assets                                     | $                                         
|                                                   |                                           
|                                                   |                                           
|                                                   | For the three months Ended September, 30  
|                                                   |                                           
|                                                   | 2001                                      
|                                                   |                                           
|                                                   |                                           
|Net Income                                         |                                           
|Total profit for reportable segments               | $                                         
|Non-reportable segment loss                        |                                           
|Elimination of intersegment (gain)loss             |                                           
|                                                   |                                           
|Total consolidated other income                    | $                                         
|                                                   |                                           

7

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COMMUNITY BANKSHARES, INC.
AND SUBSIDIARIES

ITEM 2.  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 discussion and analysis 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, and competition in the geographic business areas in which we conduct operations.

The terrorist attacks that occurred in New York City and Washington D.C. on
September 11, 2001, and the United States subsequent response to these events
have resulted in a general economic slowdown that may adversely effect our
banking business. Economic slowdowns or recessions in our primary market areas
may be accompanied by reduced demand for credit, decreasing interest margins and
declining real estate values, which may in turn result in a decrease in net
earnings and an increased possibility of potential loan losses in the event of
default. Any sustained period of decreased economic activity, increased
delinquencies, foreclosures or losses could limit our growth and negatively
affect our results of operations. We cannot predict the extent, duration of
these events or effect upon our business and operations. We will, however,
closely monitor the effect of these events upon our business, and make
adjustments to our business strategy as deemed necessary.

Management Discussion and Analysis

The following is managements discussion and analysis of certain significant factors which have affected our financial position and operating results during the periods included in the accompanying consolidated financial statements.

Financial Condition

As of September 30, 2001, we continue to experience growth in total assets, total loans and total deposits as compared to December 31, 2000.  Total assets, loans, and deposits increased by 7.16%, 6.88% and 7.50% respectively.  The growth in total assets and deposits 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 September 30, 2001, the liquidity ratio was 22.13% which is within our target range of 20 - 25%.  The banks have available lines of credit to meet 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

Our overall interest rate risk was less than 6.00% of net interest income subjected to rising and falling rates of 200 basis points.  Our
guideline is to allow no more than 8.00% change in net interest income for these scenarios; therefore, we are within policy guidelines.  We have positioned ourselves to be protected against any further changes in rates in either direction.

8

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Capital

Banking regulation requires the Company and the Banks to maintain capital levels in relation to our assets.  At September 30, 2001, the Companys and  the 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 September 30, 2001 were as follows:



|                             | Actual | Regulatory Minimum
|---------------------------- | ------ | ------------------
|                             |        |                   
|Leverage                     | 8.95%  | 4.00%             
|Risked Based Capital ratios: |        |                   
|Core Capital                 | 11.70% | 4.00%             
|Total Capital                | 12.95% | 8.00%             

During the third quarter of 2001, the company has entered into an internally
leveraged employee stock option plan.  Future lending will be provided on
an as needed basis.

Results of Operation

Net interest income for the nine month period ended September 30, 2001 is up 2.86% over the same period for 2000, from $18,326,000 to $18,851,000, and is up 0.40% for the three month period ending September 30, 2001 from $6,238,000 to $6,263,000 for 2001.  Interest income was up by 7.03% for the nine month period ending September 30, 2001 from $34,526,000 to $36,954,000 and up 0.75% for the three month period ending September 30, 2001 from $11,984,000 to $12,075,000. The increase in interest income is due to an increase of 12.69% or $67,289,000 in earning assets from September 30, 2000 to September 30, 2001.  Investment securities increased by $7,899,000 or 8.45% during the period.  Total loans increased during the last year by $44,782,000 or 11.31%.  Interest expense was up 11.75% or $1,903,000 for the nine month period ended September 30, 2001, over the same period in 2000 and up 1.15% or $66,000 for the three month period ending September 30, 2001, as compared to 2000.  This increase in interest expense is due to an increase in interest bearing deposits of $53,132,000 or 12.82% from September 30, 2000 to September 30, 2001.  Due to our short-term asset sensitive position, interest expense has increased at a faster rate than interest income.  Net interest margins
during the third quarter have narrowed significantly and fallen beyond managements projections.  Management anticipates
some recovery in the margin over the next twelve months due to the repricing of
liabilities.

The loan loss reserve is evaluated monthly and adjusted to reflect the risk in the portfolio in the following manner.  We use two different methods of measuring risk in the portfolio: (a) Risk in our watch list of loans and past due ratios and (b) 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 was $1,201,000 and $1,076,000 for the first nine months of 2001 and 2000 respectively. This provision can fluctuate due to many factors as mentioned above and the volume Small Business Administration (SBA) loans closed, as we have a policy of reserving 5% of the unguaranteed portion of any SBA loans.  We currently have reserves totaling  $1,022,000 for our unguaranteed portion of SBA loans.

9

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The following table furnishes information on the loan loss reserve for the current nine month reporting period and the same period for 2000.

|                  |   | 2001    |   | 2000 
|----------------- | - | ------- | - | -----
|                  |   |         |   |      
|Beginning Balance | $ | 6,307   | $ | 5,682
|                  |   |         |   |      
|Less Charge Offs: |   |         |   |      
|Real Estate Loans |   | (151)   |   | 0    
|Commercial Loans  |   | (117)   |   | (346)
|Consumer Loans    |   | (726)   |   | (428)
|Credit Cards      |   | (11)    |   | (7)  
|                  |   |         |   |      
|                  |   | (1,005) |   | (781)
|Plus Recoveries   |   |         |   |      
|Real Estate Loans |   | 11      |   | 0    
|Commercial Loans  |   | 14      |   | 50   
|Consumer Loans    |   | 119     |   | 106  
|Credit Cards      |   | 2       |   | 2    
|                  |   |         |   |      
|                  |   | 146     |   | 158  
|                  |   |         |   |      
|Net Charge-offs   |   | (859)   |   | (623)
|                  |   |         |   |      
|Plus Provision    |   | 1,201   |   | 1,076
|                  |   |         |   |      
|Ending Balance    | $ | 6,649   | $ | 6,135
|                  |   |         |   |      

The provision for loan losses was $1,201,000 and $1,076,000
for the first nine months of 2001 and 2000 respectively. The provision for loan
losses for the nine month period ended September 30, 2001 represented 120% of
charge-offs for the same period, while the provision for the first nine months
of 2000 represented 138% of the charge offs recorded in that period. The most
significant charge-offs are consumer loans, which are typically unsecured or
secured by consumer products. The reserve at the end of September 30, 2001
represented 184% of non-accrual loans while the reserve at September 30, 2000
represented 462% of non-accrual loans. Non-accrual loans have increased from
$1,327,000 at September 30, 2000 to $3,613,000 as of September 30, 2001. Past
due loans greater than 90 days and accruing interest have decreased from
$2,418,000 in 2000 to $2,121,000 in 2001. The increase in non-accrual loans is
indicative of the overall state of the economy. Management is aware of a
deterioration in loan quality believed to be related to the continuing decline
in the overall economy. We are currently outside our guideline of maintaining a
loan loss reserve of 200% of non-performing assets. As of September 30, 2001,
non-accrual loans and other real estate owned included three loans
totaling approximately $3,800,000, which greatly contributes to our being
outside our guideline of non-performing assets compared to the loan loss
reserve. The loan loss reserve balance to total loan ratio at September 30, 2001
was 1.49% as compared to 1.51% at September 30, 2000. During the fourth quarter
we anticipate additional charge-offs. Depending on the level of those
charge-offs, management may have to increase its provision for loan losses in
order to maintain an adequate reserve. As of September 30, 2001, management
considered our allowance for loan losses adequate to cover any known losses.

10

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The following table is a summary of Non-accrual, Past Due and Restructured Debt:

September 30, 2001Non-accrual
Loans
Past Due 90 days
Still accruing
Restructured
DebtReal Estate Loans
3,064
1,515
0Commercial Loans
137
302
1,274Consumer Loans
412
304
0Total
3,613
2,121
1,274September 30, 2001Non-accrual Loans
Past Due 90 days
Still accruing
Restructured DebtReal Estate Loans
0
0
0Commercial Loans
855
1,848
758Consumer Loans
472
570
0Total
1,327
2,418
758


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 29.27% or $2,855,000 during the nine month period ended September 30, 2001 as compared to the same period for 2000 and the three month period ending September 30, 2001 showed a 5.99% or $192,000 increase over the same three month period of 2000. This increase is primarily due to the increase in activity associated with an agreement between Financial Supermarkets, Inc.
(FSI), a nonbank subsidiary, and the Canadian Imperial Bank of Commerce ("CIBC") to establish banking pavilions in.  Management anticipates the level of activity associated with pavilion installations for CIBC to continue for the foreseeable future. Service charges on deposit accounts increased by $649,000 or 25.24% for the nine month period ended September 30, 2001, and $197,000 or 20.56% for the three month period ended September 30, 2001, as compared to the same periods in 2000. Non-sufficient funds (NSF) charges increased $507,000 and $97,000 for the nine month period and the three month period ended September 30, 2001, respectively, compared to the same period in 2000.  NSF charges increased primarily as a result of the Companys continued growth in accounts in the totally free checking program.

11

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Other expenses increased by 18.45% or $3,621,000 for the nine month period ended September 30, 2001, and 13.94% or $908,000 for the three month period ending September 30, 2001 as compared to the same periods in 2000.  Salaries and benefits increased by $1,959,000 or 18.57% during the nine month period ended September 30, 2001 compared to the same period in 2000.  Full time equivalent employees increased from 345 at the end of September 2000 to 383 at the end of September 2001.  Equipment and occupancy expenses were up by 14.12% or $440,000 for the nine month period ended September 30, 2001 as compared to the same period in 2000. 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 during the past twelve months as well as the overall growth of the Companys banking operations.  In other operating expenses, travel expenses increased $552,000 or
104.62% due to required travel in a non-bank subsidiary, sundry losses increased $168,000 or 164.09% and data processing expenses increased $41,000 or 11.65% for the nine month period ending September 30, 2001 as compared to the same period in 2000.

We incurred income tax expenses of $516,000 which represents an effective rate of 28% for the three month period ended September 30, 2001 as compared to $766,000 which represents an effective tax rate of 30% for the same period in 2000.  In addition, we incurred income tax expenses of $2,067,000 which represents an effective rate of 29% for the nine month period ended September 30, 2001 as compared to $2,299,000 which represents an effective tax rate of 31% for the same period in 2000.

Net income for the nine month period ended September 30, 2001, was $4,941,000 or a decrease of 2.64% and for the three month period ended September 30, 2001, was $1,319,000 or a decrease of 25.86% over the same periods for 2000. Due to scheduling delays in supermarket bank installations,
the variation in the number of supermarket bank installations from year to year,
as well as the current narrowing of the Bank's net interest margin and the
increase in loan loss provision; management does not anticipate meeting its original budgeted projections and management cannot guarantee an overall increase in earnings in 2001 compared to 2000.

We are 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.  We are also not aware of any current recommendations by the regulatory authorities which, if they were implemented, would have such an effect.

12

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PART II - OTHER INFORMATION

ITEM 6.         Exhibits and Reports on Form 8-K

> (a) Exhibits
>     None
> 
> (b)	Reports on Form 8-K
> 
> None





13

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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:  November 13, 2001 | By:                       
|                         |                           



14