UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D. C. 20549
                                   FORM 10-Q
Mark One

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

                 For the quarter period ended September 30, 2000

         //       TRANSITION REPORT PURSANT TO SECTION 13 OR 15 (d) OF
                  THE SECURITIES 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 September 30, 2000: 2,178,830

<PAGE>



                           COMMUNITY BANKSHARES, INC.
                                AND SUBSIDIARIES
                                      INDEX

                                                         Page No.
PART I.   FINANCIAL INFORMATION

Item 1.  Financial Statements

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

         Consolidated Statements of Operations
         and Comprehensive Income for Three
         Months Ended September 30, 2000 and 1999
         and Nine Months Ended September 30, 2000
         and 1999                                             3

         Consolidated Statements of Cash Flows -
         Nine Months Ended September 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 6.  Exhibits and Reports on Form 8 - K                   7

         Signatures                                           8
<PAGE>


<PAGE>


                         PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

<TABLE>
<CAPTION>

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


                                                                                     2000         1999
                                                                                  ---------    ---------

                                       Assets
                                       ------
<S>                                                                               <C>          <C>
Cash and due from banks                                                           $  26,323    $  31,834
Interest-bearing deposits in banks                                                      375          161
Federal funds sold                                                                   14,070        2,940
Securities available-for-sale                                                        61,548       49,143
Securities held-to-maturity (fair value
     $32,058 and $31,349)                                                            31,916       31,939
Loans held for sale                                                                     230        1,275

Loans                                                                               402,037      375,593
Less allowance for loan losses                                                        6,135        5,682
                                                                                  ---------    ---------
          Loans, net                                                                395,902      369,911
                                                                                  ---------    ---------

Premises and equipment                                                               13,894       13,444
Other assets                                                                         17,209       15,502
                                                                                  ---------    ---------

          Total assets                                                            $ 561,467    $ 516,149
                                                                                  =========    =========

                        Liabilities and Shareholders' Equity
                        -------------------------------------
Deposits
    Non-interest-bearing demand                                                   $  69,989    $  65,815
    Interest-bearing demand                                                          97,915       99,185
    Savings                                                                          22,937       20,863
    Time, $100,000 and over                                                          93,568       79,925
    Other time                                                                      199,870      178,268
                                                                                  ---------    ---------
          Total deposits                                                            484,279      444,056
Federal Home Loan Bank advances                                                      10,000       15,000
Other borrowings                                                                        939        1,054
Other liabilities                                                                    16,160       11,237
                                                                                  ---------    ---------
          Total liabilities                                                         511,378      471,347
                                                                                  ---------    ---------

Commitments and contingent liabilities

Redeemable common stock held by ESOP, 382,580
     and 380,780 shares outstanding at September 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 at December 31, 2000
        Shares issued and outstanding                                                 2,179        2,179
    Capital surplus                                                                   6,115        6,115
    Retained earnings                                                                28,578       23,853
    Accumulated other comprehensive loss,
         Net of tax                                                                    (831)      (1,327)
                                                                                  ---------    ---------
          Total shareholders' equity                                                 36,041       30,820
                                                                                  ---------    ---------

 Total liabilities and shareholders' equity                                       $ 561,467    $ 516,149
                                                                                  =========    =========

See Notes to Consolidated Financial Statements.

</TABLE>
<PAGE>


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

                                                   Three Months Ended           Nine Months Ended
                                                      September 30,             September 30,
                                                  2000          1999           2000            1999
                                                -------        -------        -------        --------
<S>                                             <C>            <C>            <C>            <C>
Interest income
    Loans                                       $10,479        $ 8,895        $30,134        $ 25,674
    Taxable securities                              745            591          2,137           1,747
    Nontaxable securities                           557            500          1,598           1,478
    Deposits in banks                                 4              3             11              14
    Federal funds sold                              199            244            646             681
                                                -------        -------        -------        --------
          Total interest income                  11,984         10,233         34,526          29,594
                                                -------        -------        -------        --------

Interest expense on deposits
    Deposits                                      5,514          4,341         15,509          12,654
    Other borrowings                                232            158            691             319
                                                -------        -------        -------        --------
          Total interest expense                  5,746          4,499         16,200          12,973
                                                -------        -------        -------        --------

          Net interest income                     6,238          5,734         18,326          16,621
Provision for loan losses                           382            370          1,076           1,027
                                                -------        -------        -------        --------
          Net interest income after
               provision for
               loan losses                        5,856          5,364         17,250          15,594
                                                -------        -------        -------        --------

Other income
    Service charges on
       Deposit accounts                             958            744          2,571           2,105
    Other service charges and fees                  231            202            632             466
    Gains on sale of loans                           88             83            263             239


    Nonbank subsidiary
        non-interest income                       1,742          1,584          5,747           4,583
    Other operating income                          184            214            541             661
                                                -------        -------        -------        --------
          Total other income                      3,203          2,827          9,754           8,054
                                                -------        -------        -------        --------

Other expenses
    Salaries and employee benefits                3,523          2,978         10,551           9,177
    Occupancy expense                               415            364          1,158           1,033
    Equipment expense                               684            697          1,958           1,958
    Other operating expenses                      1,892          1,780          5,963           5,336
                                                -------        -------        -------        --------
          Total other expenses                    6,514          5,819         19,630          17,504
                                                -------        -------        -------        --------

          Income before income taxes              2,545          2,372          7,374           6,144

Income tax expense                                  766            765          2,299           1,809
                                                -------        -------        -------        --------

          Net income                            $ 1,779        $ 1,607        $ 5,075        $  4,335
                                                -------        -------        -------        --------

Other comprehensive income (loss):
   Unrealized gains (losses) on
   Securities available-for-sale
   arising during the period                        403             99            496            (782)

                                                -------        -------        -------        --------
     Total other comprehensive
           Income (loss)                            403             99            496            (782)
                                                -------        -------        -------        --------

          Comprehensive income                  $ 2,182        $ 1,706        $ 5,571        $  3,553
                                                =======        =======        =======        ========

Basic earnings per common share                 $  0.82        $  0.74        $  2.33        $   2.00
                                                =======        =======        =======        ========
Diluted earnings per common share                  0.81           0.73           2.31            1.97
                                                =======        =======        =======        ========
Cash dividends per share of common stock        $ .0435        $  .039        $ .1305        $  0.118
                                                =======        =======        =======        ========

See Notes to Consolidated Financial Statements.

</TABLE>
<PAGE>

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

                                                                  2000           1999
                                                               --------         --------
<S>                                                            <C>              <C>
OPERATING ACTIVITIES
   Net income                                                  $  5,075         $  4,335

    Adjustments  to  reconcile  net  income to
        net cash  provided  by  operating activities:
        Depreciation and amortization                             2,012            1,758
        Provision for loan losses                                 1,076            1,027
        Provision for other real estate                               5             --
        Deferred income taxes                                      (201)            (259)
        Decrease in loans held for sale                           1,045               72
        Net (gains) losses on sale of other real estate             (35)             (56)
        Increase  in interest receivable                         (1,094)             298
        Decrease in interest payable                              1,760             (545)
        Increase in taxes payable                                   211              345
        Increase (decrease) in accounts
          Receivable of nonbank subsidiary                          184             (181)
        Increase (decrease) in work in
          process of nonbank subsidiary                          (1,045)             219
        Increase (decrease) in accruals and
          Payables of nonbank subsidiary                          3,922           (1,253)
        Other operating activities                               (1,265)            (666)
                                                               --------         --------

              Net cash provided by Operating activities          11,650            5,094
                                                               --------         --------

INVESTING ACTIVITIES
    Purchases of securities available-for-sale                  (13,826)         (17,771)
    Proceeds from maturities of securities
      available-for-sale                                          2,248           10,731
    Purchases of securities held-to-maturity                     (1,737)            (448)
    Proceeds from maturities of securities
      held-to-maturity                                            1,760              596
    Net (increase) decrease in Federal funds sold               (11,130)          10,535
    Net (increase) decrease in interest-bearing
     deposits in banks                                             (214)              54
    Net increase in loans                                       (28,168)         (49,703)
    Purchase of premises and equipment                           (2,160)          (1,729)
    Proceeds from sales of other real estate                      1,242              607
                                                               --------         --------

              Net cash used in Investing activities             (51,985)         (47,128)
                                                               --------         --------

FINANCING ACTIVITIES
    Net increase in deposits                                     40,223           36,725
    Increase (decrease) in FHLB advances                         (5,000)          10,000
    Increase in other borrowings                                   --                400
    Repayment of other borrowings                                  (115)            (114)
    Proceeds from issuance of Common
      Stock                                                        --                 30
    Dividends paid                                                 (284)            (258)
                                                               --------         --------
              Net cash provided by financing activities          34,824           46,783

Net increase (decrease) in cash and due from banks             $ (5,511)        $  4,749

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

Cash and due from banks at end of the Period                   $ 26,323         $ 31,545
                                                               ========         ========

SUPPLEMENTAL DISCLOSURES Cash paid for:
        Interest                                               $ 17,960         $ 13,518

        Income taxes                                           $  2,289         $  1,729

NONCASH TRANSACTIONS
    Unrealized (gains) losses on
      securities available-for sale                            $   (827)        $  1,302

    Principal balances on loans and premises
      And equipment transferred to other
      real estate                                              $  1,101         $    743


  See Notes to Consolidated Financial Statements

</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 nine  month  periods  ending
  September  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.



<PAGE>



  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 September 30, 2000
                                                  (Dollars in Thousands, except per share amounts)

                                                   Net          Weighted-Average
                                                  Income            Shares            Per Share
                                               (Numerator)         (Denominator)       Amount
                                               -----------         -------------        ------
      <S>                                    <C>               <C>                      <C>
      Basic EPS                                     $ 1,779             2,179            $ 0.82
      Effect of Dilutive Securities
           Stock options                                  0                20
                                                   --------          --------          --------
      Diluted EPS                                   $ 1,779             2,199            $ 0.81
                                                   ========          ========          ========


                                                       Three Months Ended September 30, 1999
                                                  (Dollars in Thousands, except per share amounts)


                                                   Net          Weighted-Average
                                                  Income            Shares            Per Share
                                               (Numerator)         (Denominator)       Amount
                                               -----------         -------------        ------


      Basic EPS                                     $ 1,607              2,172           $ 0.74
      Effect of Dilutive Securities                       0                27
           Stock options                           --------           --------         --------
      Diluted EPS                                   $ 1,607              2,199           $ 0.73
                                                   ========           ========         ========

                                                        Nine Months Ended September 30, 2000
                                                 ( Dollars in Thousands, except per share amounts)

                                                   Net          Weighted-Average
                                                  Income            Shares            Per Share
                                               (Numerator)         (Denominator)       Amount
                                               -----------         -------------        ------


      Basic EPS                                     $ 5,075             2,179            $ 2.33
      Effect of Dilutive Securities
           Stock options                                  0                20
                                                   --------          --------          --------
      Diluted EPS                                   $ 5,075             2,199            $ 2.31
                                                   ========          ========          ========

                                                        Nine Months Ended September 30, 1999
                                                  (Dollars in Thousands, except per share amounts)

                                                   Net          Weighted-Average
                                                  Income            Shares            Per Share
                                               (Numerator)         (Denominator)       Amount
                                               -----------         -------------        ------


      Basic EPS                                     $ 4,335              2,172            $ 2.00
      Effect of Dilutive Securities
           Stock options                                  0                 27
                                                   --------           --------          --------
      Diluted EPS                                   $ 4,335              2,199            $ 1.97
                                                   ========           ========          ========


  </TABLE>
  NOTE 4 SEGMENT INFORMATION

  Selected segment  information by industry segment for the three and nine month
  periods ended September 30, 2000 and 1999 is as follows:
<TABLE>
<CAPTION>

                                                                           Reportable Segments
                                                                          (Dollars in thousands)
                                                    -------------------------------------------------------------------
                                                                         Financial           All
    For the three month period ended September 30,       Banking       Supermarkets         Other           Total
    2000
    ------------------------------------------------  ---------------  --------------   --------------  ---------------

   <S>                                                     <C>                <C>               <C>          <C>
    Revenue from external customers                        $  13,482           1,736               66        $  15,284
    Intersegment revenues (expenses)                            (211)            309              581              679
    Segment profit (loss)                                      1,426             581             (191)           1,816
    Segment assets                                         $ 563,034          23,703            3,045        $ 589,782
</TABLE>


<TABLE>
<CAPTION>

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

    <S>                                                    <C>                <C>               <C>          <C>
    Revenue from external customers                        $  11,563           1,646               57        $  13,266
    Intersegment revenues (expenses)                            (125)            162              395              432
    Segment profit (loss)                                      1,418             589             (347)           1,660


</TABLE>
<TABLE>
<CAPTION>

                                                                           Reportable Segments
                                                                          (Dollars in thousands)
                                                    -------------------------------------------------------------------
                                                                          Financial          All
    For the nine month period ended September 30,        Banking        Supermarkets        Other           Total
    2000
    ------------------------------------------------  ---------------  ---------------  --------------  ---------------

    <S>                                                     <C>                <C>              <C>           <C>
    Revenue from external customers                         $ 38,731            5,902             194         $ 44,827
    Intersegment revenues                                       (578)             857           1,744            2,023
    Segment profit                                          $  4,042            1,959            (657)        $  5,344

</TABLE>

<TABLE>
<CAPTION>
                                                                           Reportable Segments
                                                                          (Dollars in thousands)
                                                    -------------------------------------------------------------------
                                                                          Financial          All
    For the nine month period ended September 30,        Banking        Supermarkets        Other           Total
    1999
    ------------------------------------------------  ---------------  ---------------  --------------  ---------------
   <S>                                                      <C>                 <C>             <C>          <C>
    Revenue from external customers                         $ 33,392            4,708             142         $ 38,242
    Intersegment revenues                                       (368)             469           1,185            1,286
    Segment profit                                          $  3,906            1,406            (878)        $  4,434

</TABLE>

<TABLE>
<CAPTION>

                                                           For the three months              For the nine months
                                                            Ended September, 30              Ended September, 30
                                                      --------------------------------  -------------------------------
                                                         2000             1999             2000            1999
                                                         ----             ----             ----            ----
    <S>                                                      <C>              <C>             <C>              <C>
    Net Income
    Total profit for reportable segments                     $ 2,007          $ 2,007         $ 6,001          $ 5,312
    Non-reportable segment loss                                 (191)            (347)           (657)            (878)
    Elimination of intersegment (gains) losses                   (37)             (53)           (269)             (99)
                                                            --------         --------        --------         --------
       Total consolidated other income                       $ 1,779          $ 1,607         $ 5,075          $ 4,335
                                                             =======          =======          ======          =======
</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 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 September 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 8.78%, 6.74% and 9.06% 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 September 30, 2000,  the Liquidity  Ratio was 22.48% which is consistent
  with 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 4% 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.


<PAGE>



  Capital

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


                                                    Actual       Regulatory Minimum
                                                    ------       ------------------
      <S>                                           <C>                  <C>
      Leverage                                       8.67%               3.00%
          Risked Based Capital ratios:
          Core Capital                              11.22%               4.00%
          Total Capital                             12.47%               8.00%

  </TABLE>

  Results of Operation


  Net interest  income for the nine month period ended  September 30, 2000 is up
  10.26% over the same period for 1999, from $16,621,000 to $18,326,000,  and is
  up 8.79% for the three month period ending  September 30, 2000 from $5,734,000
  to $6,238,000  for 2000.  Interest  income was up by 16.67% for the nine month
  period ending September 30, 2000 from $29,594,000 to $34,526,000 and up 17.11%
  for the three month  period  ending  September  30, 2000 from  $10,233,000  to
  $11,984,000.  Interest  expense was up 24.87% or $3,227,000 for the nine month
  period ended September 30, 2000, over the same period in 1999 and up 27.72% or
  $1,247,000  for the three month period ending  September 30, 2000, as compared
  to 1999.  The  increase in interest  income is due to an increase of 40.74% or
  $147,675,000  in earning assets from September 30, 1999 to September 30, 2000.
  Investment  securities  increased by  $14,434,000 or 18.26% during the period.
  Total  loans  increased  during the last year by  $39,766,000  or 10.97%.  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  $1,076,000  for the first nine 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
  $1,050,337 for its un-guaranteed portion of SBA loans.

  The following  table  furnishes  information  on the Loan Loss Reserve for the
  current nine 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            (346)           (279)
     Consumer Loans              (428)           (427)
     Credit Cards                  (7)            (24)
                              -------         -------
                                 (781)           (753)
                              -------         -------

Plus Recoveries
     Real Estate Loans              0               4
     Commercial Loans              50              44
     Consumer Loans               106             179
     Credit Cards                   2               2
                              -------         -------
                                  158             229
                              -------         -------
Net Charge-offs                  (623)           (524)
                              -------         -------
Plus Provision                  1,076           1,027
                              -------         -------

Ending Balance                $ 6,135         $ 5,366
                              =======         =======
</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 nine month period ended September 30, 2000
represented 138% of charge offs for the same period, while the provision for the
first nine months of 1999  represented  136% of the charge offs recorded in that
period.  The reserve at the end of September  30, 2000  represented  462% of non
accrual  loans while the reserve at September 30, 1999  represented  230% of non
accrual loans. Non accrual loans have decreased from $2,469,000 at September 30,
1999 to $1,327,000 as of September 30, 2000. Past due loans greater than 90 days
and accruing  interest have increased  from  $1,464,000 in 1999 to $2,418,000 in
2000. The total of past due loans greater than 90 days and non accrual loans has
decreased  from  $3,933,000  in  September  1999,   which  represents  1.04%  of
outstanding  loans to $3,745,000 as of September 30, 2000, which represents .93%
of outstanding loans. Of the $3,745,000 of non performing loans on September 30,
2000,  $710,000 is guaranteed by the U. S.  Government.  Our reserve  represents
202% 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  September  30,  2000 was
1.52% as compared to 1.51% at September 30, 1999. Management considers 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>
                                                  September 30, 2000
                                                  ------------------

                                                           Past Due
                                   Non-accrual             90 days              Restructured
                                      Loans             Still accruing              Debt
                                   -----------          --------------          -------------
<S>                                  <C>                      <C>                      <C>
Real Estate Loans                        0                        0                      0
Commercial Loans                       855                    1,848                    758
Consumer Loans                         472                      570                      0
                                     -----                    -----                    ---
Total                                1,327                    2,418                    758
                                     =====                    =====                    ===
</TABLE>

                                                          September 30, 1999
                                                          ------------------
<TABLE>
<CAPTION>

                                                           Past Due
                                   Non-accrual             90 days              Restructured
                                      Loans             Still accruing              Debt
                                   -----------          --------------          -------------
<S>                                  <C>                      <C>                      <C>
Real Estate Loans                        0                        0                      0
Commercial Loans                     1,770                      917                    747
Consumer Loans                         699                      547                      0
                                     -----                    -----                    ---
Total                                2,469                    1,464                    747
                                     =====                    =====                    ===
</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 21.11% or  $1,700,000  during the nine month period
ended  September  30, 2000 as compared to the same period for 1999 and the three
month period ending September 30, 2000 showed a 13.30% or $376,000 increase over
the same  three  month  period of 1999.  Service  charges  on  deposit  accounts
increased by $466,000 or 22.14% for the nine month period  ended  September  30,
2000,  and  $214,000 or 28.76% for the three month period  ended  September  30,
2000,  as  compared  to the same  periods in 1999.  The major  increase  was the
increase in non-sufficient  funds (NSF) charges of $415,000 and $185,000 for the
nine  month  period  and the  three  month  period  ended  September  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  service  charges and fees  increased by
$166,000 or 35.62% for the nine month  period  ended  September  30,  2000,  and
$29,000 or 14.36% for the three  month  period  ended  September  30,  2000,  as
compared to the same  periods in 1999.  The major  increase  was fees from check
cashing, Honor and Mastermoney of $140,000 and $66,000 for the nine month period
and the three month period ended September 30, 2000,  respectively,  compared to
the same period in 1999.  During these same periods other items earned less such
as credit insurance earned less. The gains on sale of loans increased by $24,000
or 10.04%  during the nine month period ended  September 30, 2000 as compared to
the same period for 1999.  Nonbank subsidiary  non-interest  income increased by
25.40% or  $1,164,000  for the nine month  period ended  September  30, 2000 and
9.97% or  $158,000  for the three  month  period  ending  September  30, 2000 as
compared  to the same  periods  in 1999.  The  increase  in income is due to the
increased  sale  of  in-store  units  associated  with  Financial  Supermarket's
Consulting  Agreement  with the Canadian  Imperial Bank of Commerce.  Management
anticipates  the  income  resulting  from this  relationship  will  continue  to
increase for the next six to twelve months.

Other  operating  expenses  increased by 12.15% or $2,126,000 for the nine month
period  ended  September  30,  2000,  and 11.94% or $695,000 for the three month
period  ending  September  30,  2000 as  compared  to the same  periods in 1999.
Salaries and benefits  increased by  $1,374,000  or 14.97% during the nine month
period ended  September 30, 2000 compared to the same period in 1999.  Full time
equivalent  employees  increased from 309 at the end of September 1999 to 345 at
the end of September 2000.  Equipment and occupancy expenses were up by 4.18% or
$125,000  for the nine month  period  ended  September  30,  2000,  and 3.58% or
$38,000 for the three month period ending September 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.

The  Company  incurred  income tax  expenses  of $766,000  which  represents  an
effective  rate of 30% for the three month  period ended  September  30, 2000 as
compared to $765,000 which  represents an effective tax rate of 32% for the same
period in 1999.  In  addition,  the  Company  incurred  income tax  expenses  of
$2,299,000  which  represents an effective rate of 31% for the nine month period
ended September 30, 2000 as compared to $1,809,000 which represents an effective
tax rate of 29% 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 include non-taxable income as do the Community Banking Subsidiaries.

Net income for the nine month period ended September 30, 2000, was $5,075,000 or
an increase of 17.07% and for the three month period ended  September  30, 2000,
was  $1,779,000  or an increase of 10.70%  over the same  periods for 1999.  The
company is not aware of any other known trends,  events or uncertainties,  other
than the  effect  of  events  as  described  above,  that  will have or that are
reasonably likely to have a material effect on its liquidity,  capital resources
or operations.  The Company is also not aware of any current  recommendations by
the regulatory  authorities which, if they were implemented,  would have such an
effect.


<PAGE>



                           PART II - OTHER INFORMATION

  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:  November 13, 2000               BY:  /s/  Harry L. Stephens
                                                Harry L. Stephens,
                                                Executive Vice President and
                                                Chief Financial Officer