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 March 31, 1998
     
     / /  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
May 1, 1998:  2,159,830
                              
                              
                 COMMUNITY BANKSHARES, INC.
                      AND SUBSIDIARIES
                            INDEX

                                    Page No.
PART I.   FINANCIAL INFORMATION

Item 1.   Financial Statements

     Consolidated Balance Sheet -
     March 31, 1998 and December 31, 1997              2

     Consolidated Statements of Operations
     and Comprehensive Income for Three
     Months Ended March 31, 1998 and 1997              3

     Consolidated Statements of Cash Flows -
     Three Months Ended March 31, 1998 and 1997        4

     Note 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 6.   Exhibits and Reports on Form 8 - K           7

     Signatures                                        8
<PAGE>
               PART I - FINANCIAL INFORMATION
                              
ITEM 1.   FINANCIAL STATEMENTS

<TABLE>
<CAPTION>
                     COMMUNITY BANKSHARES, INC.
                          AND SUBSIDIARIES
                                          
                    CONSOLIDATED BALANCE SHEETS
                MARCH 31, 1998 AND DECEMBER 31, 1997
                      (Dollars in thousands)
                            (Unaudited)
                                                                    
                    Assets                          1998        1997
<S>                                               <C>         <C>
Cash and due from banks                         $  20,561  $  23,957
Interest-bearing deposits in banks                    788        769
Federal funds sold                                  7,495      5,960
Securities available-for-sale                      45,448     53,282
Securities held-to-maturity (fair value                             
     $30,415 and $29,558)                          29,819     28,719
Loans held for sale                                 3,762      2,561
                                                                    
Loans                                             267,317    242,660
Less allowance for loan losses                      4,157      4,024
          Loans, net                              263,160    238,636
                                                                    
Premises and equipment                             12,904     12,115
Other assets                                       12,541     11,080
                                                                    
          Total assets                          $ 396,478  $ 377,079
                                                                    
     Liabilities and Stockholders' Equity                           
                                                                    
Deposits                                                            
    Noninterest-bearing demand                  $  52,946  $  50,768
    Interest-bearing demand                        77,464     72,854
    Savings                                        18,511     16,276
    Time, $100,000 and over                        61,213     55,849
    Other time                                    143,978    139,798
          Total deposits                          354,112    335,545
Other borrowings                                      424        462
Other liabilities                                   6,839      7,331
          Total liabilities                       361,375    343,338
                                                                    
Commitments and contingent liabilities                              
                                                                    
Redeemable common stock held by ESOP, 344,531                       
     shares outstanding, at fair value             10,622     10,622
                                                                    
Stockholders' equity                                                
    Common stock, par value $1; 5,000,000                           
        shares authorized; 2,159,830                                
        shares issued and outstanding               2,170      2,170
    Capital surplus                                 6,036      6,036
    Retained earnings                              16,121     14,783
    Accumulated other comprehensive income,                         
         net of tax                                   154        130
          Total stockholders' equity               24,481     23,119
                                                                    
 Total liabilities and stockholders' equity     $ 396,478  $ 377,079
<FN>                                                                
See Notes to Consolidated Financial Statements.                     
</FN>                                                               
</TABLE>                                                            
<PAGE>

<TABLE>
<CAPTION>
                          COMMUNITY BANKSHARES, INC.
                               AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                            AND COMPREHESIVE INCOME
                   THREE MONTHS ENDED MARCH 31, 1998 AND 1997
                 (Dollars in thousands, except per share amounts)
                                 (Unaudited)
                                               
                                                                     
                                                       Three Months
                                                      Ended March 31,
                                                      1998       1997
<S>                                               <C>          <C>
Interest income                                                      
    Loans                                       $    6,684   $  5,371
    Taxable securities                                 755        753
    Nontaxable securities                              390        285
    Deposits in banks                                   11          8
    Federal funds sold                                 122        204
          Total interest income                      7,962      6,621
                                                                     
Interest expense on deposits                                         
    Deposits                                         3,692      3,091
    Other borrowings                                     8         11
          Total interest expense                     3,700      3,102
                                                                     
          Net interest income                        4,262      3,519
Provision for loan losses                              190        190
          Net interest income after                                  
               provision for loan losses             4,072      3,329
                                                                     
Other income                                                         
    Service charges on deposit accounts                602        462
    Other service charges and fees                      83        166
    Gains on sale of loans                              61        158
    Trust Department fees                               27         17
    Net realized gains on sales of securities            9          0
    Nonbank subsidiary non-interest income           1,659      2,458
    Other operating income                             159         63
          Total other income                         2,600      3,324
                                                                     
Other expenses                                                       
    Salaries and employee benefits                   2,350      2,542
    Occupancy expense                                  303        247
    Equipment expense                                  445        336
    Other operating expenses                         1,509      1,286
          Total other expenses                       4,607      4,411
                                                                     
          Income before income taxes                 2,065      2,242
                                                                     
Income tax expense                                     646        730
                                                                     
          Net income                            $    1,419   $  1,512
                                                                     
Other comprehensive income (loss):                                   
     Unrealized gains (losses) on securities                         
          available-for-sale arising during                          
          the period                                    39       (350)
          Less:  reclassification adjustment                         
                    for gains included in net                        
                    income                               9          0
     Total other comprehensive income                   30       (350)
                                                                     
          Comprehensive income                  $    1,449   $  1,162
                                                                     
Basic earnings per common share                 $     0.65   $   0.75
Diluted earnings per common share                     0.65       0.70
Cash dividends per share of common stock        $   0.0367   $ 0.0350
<FN>                                                                 
See Notes to Consolidated Financial Statements.                      
</FN>                                                                
</TABLE>                                                             
<PAGE>
<TABLE>
<CAPTION>
                       COMMUNITY BANKSHARES, INC.
                           AND SUBSIDIARIES
                                           
                  CONSOLIDATED STATEMENTS OF CASH FLOWS
            FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997
                          (Dollars in thousands)
                               (Unaudited)
                                           
                                                       1998       1997
<S>                                                     <C>        <C>
OPERATING ACTIVITIES                                                  
    Net income                                    $   1,419   $  1,512
    Adjustments to reconcile net income to                            
        net cash provided by operating
        activities:
        Depreciation and amortization                   443        206
        Provision for loan losses                       190        190
        Provision for other real estate                  10         20
        Deferred income taxes                          (107)       (61)
        Increase in loans held for sale              (1,201)       (37)
        Net realized losses on securities                             
          available-for-sale                             (9)         -
        Net losses on sale of other real estate           -         26
        Increase in interest receivable                (292)      (192)
        Increase in interest payable                    427         76
        Increase (decrease) in taxes payable            753        446
        Increase (decrease) in accounts                               
          receivable of nonbank subsidiary             (905)      (321)
        Increase (decrease) in work in                                
          process of nonbank subsidiary                 128        770
        Increase (decrease) in accruals and                           
          payables of nonbank subsidiary             (1,215)      (841)
        Other operating activities                   (1,012)       (23)
                                                                      
              Net cash provided by                                    
                (used in) operating activities       (1,371)     1,771
                                                                      
INVESTING ACTIVITIES                                                  
    Purchases of securities available-for-sale       (3,677)    (6,859)
    Proceeds from sales of securities                                 
      available-for-sale                              1,875          -
    Proceeds from maturities of securities                            
      available-for-sale                              9,683      2,082
    Purchases of securities held-to-maturity         (1,265)    (4,705)
    Proceeds from maturities of securities                            
      held-to-maturity                                  165        492
    Net decrease in Federal funds sold               (1,535)      (785)
    Net increase in interest-bearing                                  
     deposits in banks                                  (19)       181
    Net increase in loans                           (24,714)    (2,917)
    Purchase of premises and equipment               (1,175)    (1,120)
    Net cash acquired in branch acquisition             171          -
    Proceeds from sales of other real estate             16         25
                                                                      
              Net cash used in                                        
                investing activities                (20,475)   (13,606)
                                                                      
FINANCING ACTIVITIES                                                  
    Net increase (decrease) in deposits              18,567     11,293
    Repayment of other borrowings                       (38)       (38)
    Dividends paid                                      (79)       (70)
                                                                      
              Net cash provided by                                    
                financing activities                 18,450     11,185
Net increase (decrease) in cash and                                   
   due from banks                                 $  (3,396)  $   (650)
                                                                      
Cash and due from banks at beginning of the Year     23,957     19,480
                                                                      
Cash and due from banks at end of the Year        $  20,561   $ 18,830
                                                                      
SUPPLEMENTAL DISCLOSURES                                              
    Cash paid for:                                                    
        Interest                                  $   3,273   $  3,253
                                                                      
        Income taxes                              $       -   $    345
                                                                      
NONCASH TRANSACTIONS                                                  
    Unrealized (gains) losses on                                      
      securities available-for sale               $     (38)  $    350
                                                                      
    Principal balances on loans and premises                          
      and equipment transferred to other                              
      real estate                                 $       -   $    148
                                                                      
BRANCH ACQUISITION                                                    
    Net cash acquired                             $     171   $      -
                                                                      
    Loans                                         $   2,981          -
    Premises and equipment                               10          -
    Other assets                                         14          -
    Core deposit intangible                             759          -
    Deposits                                         (5,838)         -
    Other liabilities                                   (25)         -
                                                                      
         Net liabilities assumed, net of                              
           cash and due from banks of $171        $  (2,099)  $      -
                                                                      
<FN>
See Notes to Consolidated Financial Statements
</FN>
</TABLE>
<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 opinion of management, necessary
for a fair statement of results for the interim periods.

The results of operations for the three month period ending
March 31, 1998 are not necessarily indicative of the
results to be expected for the full year.

NOTE 2.   CURRENT ACCOUNTING DEVELOPMENTS

The Financial Accounting Standards Board (FASB) has issued,
and the Company has adopted, Statement of Financial
Accounting Standards (SFAS) No. 125, "Accounting for
Transfers and Servicing of Financial Assets and
Extinguishments of Liabilities".  This statement provides
accounting and reporting standards for transfers and
servicing of financial assets and extinguishments of
liabilities based on consistent application of a financial-
components approach that focuses on control.  It
distinguishes transfers of financial assets that are sales
from transfers that are secured borrowings.  The adoption
of this statement did not have a material effect on the
company's financial statements.

The FASB has issued, and the Company has adopted, SFAS No.
128, "Earnings Per Share".  SFAS No. 128 supersedes
Accounting Principals Board Opinion No. 15 "Earnings Per
Share" and specifies the computation, presentation, and
disclosure requirements for earnings per share (EPS) for
entities with publicly held common stock or potential
issuable common stock.  SFAS No. 128 replaced the
presentation of primary EPS with a presentation of basic
EPS and fully diluted EPS with diluted EPS.  It also
requires dual presentation of basic and diluted EPS on the
face of the income statement for all entities with complex
capital structures and requires a reconciliation of the
numerator and denominator for the basic EPS computation to
the numerator and denominator of the diluted EPS
computation.  SFAS No. 128 is effective for financial
statements for both interim and annual periods ending after
December 15, 1997.  The adoption of this statement did not
have a material effect on the Company's financial
statements.

The FASB has issued, and the Company has adopted, SFAS No.
130, "Reporting Comprehensive Income".  This statement
establishes standards for reporting and display of
comprehensive income and its components in the financial
statements.  SFAS No. 130 requires all items that are
required to be recognized under accounting standards as
components of comprehensive income to be reported in a
financial statement that is displayed in equal prominence
with the other financial statements.  The term
"comprehensive income" is used in the SFAS to describe the
total of all components of comprehensive income including
net income.  "Other comprehensive income" refers to
revenues, expenses, gains and losses that are included in
comprehensive income but excluded from earnings under
current accounting standards.  Currently, "other
comprehensive income" for the Company consists of items
previously recorded directly in equity under SFAS No. 115,
"Accounting for Certain Investments in Debt and Equity
Securities".  SFAS No. 130 is effective for fiscal years
and interim periods beginning after December 15, 1997.
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>
                       Three Months Ended March 31, 1998   
                (Dollars in Thousands, except per share amounts)

                         Net       Weighted-        Per       
                       Income    Average Shares     Share
                     (Numerator)  (Denominator)     Amount
  <S>                 <C>        <C>             <C>       
  Basic EPS              $1,419           2,170      $0.65 
  Effect of Dilutive                                       
  Securities:           
       Stock options          0              26
                         .......         ......
  Diluted EPS            $1,419           2,196      $0.65 
                         ======          ======      =====
                                          
                       Three Months Ended March 31, 1997   
                (Dollars in Thousands, except per share amounts)
                                 
                         Net       Weighted-        Per       
                       Income    Average Shares     Share
                    (Numerator)   (Denominator)     Amount
                                                   
                                                           
  Basic EPS              $1,512           2,005      $0.75 
  Effect of Dilutive                                       
  Securities:    
       Stock options          0             161
                         ......          ......
  Diluted EPS            $1,512           2,166      $0.70 
                         ======          ======      =====                                                     
                                                           
</TABLE>
<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 March 31, 1998, the Company continues to experience
growth in total assets, total loans and total deposits as
compared to December 31, 1997.  Total assets, loans, and
deposits increased by 5.14%, 10.54% and 5.53% respectively.
The growth in deposits and loans is higher than prior 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 March 31, 1998, the Liquidity Ratio was 23.02% which
is slightly outside  the Company's target range of 25 -
30%.  This lower than normal level of liquidity is due to
the increased loan demand currently being experienced in
the Company's markets.  However, the Banks have available
lines of credit to meet  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 subjected to rising and falling
rates of 300 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 March 31, 1998,
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 March 31, 1998 were as follows:
<TABLE>
<CAPTION>

                                  Actual        Regulatory 
                                                   Minimum
  <S>                   <C>               <C>              
  Leverage                         8.01%             4.00% 
      Risked Based                                         
  Capital ratios:
      Core Capital                10.86%             4.00% 
      Total Capital               12.11%             8.00% 
                                                           
</TABLE>
Results of Operation

Net interest income for the three month period ended March
31, 1998 increased 12.11% to $4,262,000 over $3,519,000 for
the same period for 1997.  Interest income for the three
month period was up by 20.25% from $6,621,000 to
$7,962,000.  This increase in interest income is due to an
increase in earning assets of 21.28% or $62,229,000 at
March 31, 1998, compared to March 31, 1997.  For the first
three months of 1998, earning assets increased by
$20,678,000 or 6.19%.  The largest increase in earning
assets since March 31, 1997 was the increase in loans of
$62,548,000.  Investment securities increased by $550,000
while Federal Funds sold decreased by $1,635,000.  Interest
expense on interest bearing deposits was up by $598,000 or
19.28% for the first three months of 1998 over the same
period for 1997.  This increase in interest expense is due
to an increase in interest bearing deposits of 19.26% or
$48,636,000 at March 31, 1998, compared to March 31, 1997.
For the first three months of 1998, interest bearing
deposits increased by $16,389,000 or 5.76%.  The increase
in interest income, interest expense, and net interest
income were all consistent with budget projections made by
management and is on target to be consistent with annual
projections.  Included in the above are $7,339,000 and
$18,225,000 in loans and deposits, respectively, which were
assumed through the purchase of two bank branches during
the past year.

The provision for loan losses was $190,000 for the first
three months of 1998 and 1997.  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  $880,062 for its un-guaranteed
portion of SBA loans.

The following table furnishes information on the Loan Loss
Reserve for the current three month reporting period and
the same period for 1997.
<TABLE>
<CAPTION>
                                         1998      1997 
   <S>                              <C>       <C>       
   Beginning Balance                  $ 4,024   $ 3,592 
                                                        
   Less Charge Offs:                                    
        Real Estate Loans                   0      (24) 
        Commercial Loans                   19      (32) 
        Consumer Loans                     72      (21) 
        Credit Cards                        0       (1) 
                                                        
   Plus Recoveries                                      
        Real Estate Loans                   0         3 
        Commercial Loans                    5         6 
        Consumer Loans                     29         8 
        Credit Cards                        0         0 
                                                        
   Plus Provision                         190       190 
                                                        
   Ending Balance                     $ 4,157   $ 3,721 
                                                        

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 three month period
ended March 31, 1998 represented 209% of charge offs for the
same period, while the provision for the first three months
of 1997 represented 244% of the charge offs recorded in that
period.  The  reserve at the end of March 31, 1998
represented 536% of non-accrual loans while the reserve at
March 31, 1997 represented 371% of non-accrual loans.  The
Company is well within its policy limit of maintaining a
loan loss reserve of at least 200% of non-performing assets.
The Loan Loss Reserve balance to total loan ratio at March
31, 1998 was 1.53% as compared to 1.78% at March 31, 1997.
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>
<TABLE>
<CAPTION>
                       March 31, 1998
                              
                     Non-accrual  Past Due    Restructured  
                        Loans      90 days        Debt      
                                    still                   
                                  accruing
  <S>                <C>         <C>          <C>           
  Real Estate Loans            8          45             0  
  Commercial Loans           326         194           590  
  Consumer Loans             441         125             0  
                                                            
  Total                      775         364           590  
                                                            
                              
</TABLE>
                       March 31, 1997
<TABLE>
<CAPTION>
                     Non-accrual  Past Due    Restructured  
                        Loans      90 days        Debt      
                                    still                   
                                  accruing
  <S>                <C>         <C>          <C>           
  Real Estate Loans          427          15             0  
  Commercial Loans           262          33           752  
  Consumer Loans             314         538           752  
                                                            
  Total                    1,003         538           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 bank places 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 decreased by 21.78% or $724,000 during the
three month period ended March 31, 1998 as compared to the
same period for 1997.  The majority of this decrease,
$779,000,  is due to fewer installations of supermarket
bank units in the first quarter of 1998 compared to 1997.
Service charges on deposit accounts increased by $140,000
or 30.30% as compared to the same period for 1997.  The
major increase was the increase in non-sufficient funds
(NSF) charges of $133,000.  NSF charges increased primarily
as a result of the Company's continued growth in accounts
in the totally free checking program.  The gains on sale of
loans decreased by $97,000 or 61.39%  during the three
month period ended March 31, 1998 as compared to the same
period for 1997.  This  decrease is due to a smaller number
of  SBA loan originations during the first quarter.  Trust
department income for the first quarter 1998 increased to
$27,000 compared to $17,000 for the first quarter of 1997.

Other operating expenses increased by 4.44% or $196,000 for
the first three months of 1998 over the same period in
1997.  Salaries and benefits decreased by $192,000 or 7.55%
from the first quarter of 1997 to the first quarter of
1998.  Although full time equivalent employees increased
from 221 at the end of March 1997 to 260 at the end of
March 1998, the amount being accrued for incentive
compensation decreased resulting in an overall net decrease
in salaries and benefits.  Equipment and occupancy expenses
were up by $165,000 for the first quarter of 1998 over the
first quarter of 1997.  The increase in full time
equivalent employees  as well as equipment and occupancy
expenses was primarily due to the addition of three
supermarket banking centers during the past twelve months.

Net income for the three month period was $1,419,000 or a
decrease of 6.15% over the same period for 1997.  The net
income was more than budgeted numbers and is consistent
with management's expectations for this quarter.

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

The "year 2000 issue" arises from the widespread use of
computer programs that rely on two-digit codes to perform
computations or decision-making functions.  Many of these
programs may fail due to an inability to properly interpret
date codes beginning January 1, 2000.  For example, such
programs may misinterpret "00" as the year 1900 rather than
2000.  In addition, some equipment, being controlled by
microprocessor chips, may not deal appropriately with the
year "00".  The Bank is evaluating its computer systems to
determine which modifications and expenditures will be
necessary to make its systems compatible with year 2000
requirements.  The Company believes that their systems will
be year 2000-compliant upon implementation of such
modifications.

Prior to the emergence of the year 2000 issue, management
had made a decision to install a new data processing system
along with a wide area network.  Currently the installation
is under way with an estimated conversion date of November
1998.  This new data processing system along with a wide
area network are both certified year 2000 compliant.  In
addition to the $1,500,000 estimated cost of this
installation, the Company anticipates expenses of
approximately $500,000 will be necessary to modify other
data systems prior to the Year 2000.  However, there can be
no assurance that all necessary modifications will be
identified and corrected or that unforeseen difficulties or
costs will not arise.  In addition, there can be no
assurance that the systems of other companies on which the
Company depends will be modified on a timely basis, or that
the failure by another company to properly modify its
systems will not negatively impact the systems or operations
of the Banks.
<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>

                         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:  May 15, 1998           BY:  /s/  Harry L. Stephens
                                   Harry L. Stephens,
                                     Executive Vice President and
                                     Chief Financial Officer