SECURITIES AND EXCHANGE COMMISSION

                             Washington, D. C. 20549

                                    FORM 10-Q

                QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                For the Quarterly Period Ended September 30, 1996

                           Commission File No. 2-89588

                        COMMUNITY BANKSHARES INCORPORATED
             (Exact name of registrant as specified in its charter)

                               Virginia 54-1290793
          (State of Incorporation) (I.R.S. Employer Identification No.)


                            200 North Sycamore Street
                                  P.O. Box 2166
                           Petersburg, Virginia 23804
                    (Address of principal executive offices)

                                 (804) 861-2320
                         (Registrant's telephone number)

Indicate by check mark whether the registrant (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,  and (2) has been subject to such filing  requirements
for the past 90 days. Yes X No


Indicate the number of shares outstanding of each of the registrant's classes of
common stock as of September 30, 1996: Common Stock, $3.00 par value,  1,901,080
shares.

<PAGE>
                        COMMUNITY BANKSHARES INCORPORATED
                                    FORM 10-Q

                               September 30, 1996


                                      INDEX

                                                                            Page

Part I.  Financial Information

               Consolidated Balance Sheets as of September 30, 1996
                      and December 31, 1995                                   3

               Consolidated Statements of Income for the three and
                       nine months ended September 30, 1996 and 1995          4

               Consolidated Statements of Cash Flows for the nine
                       months ended September 30, 1996 and 1995               5

                Management's Discussion and Analysis of the Financial
                        Condition and Results of Operations                   6


Part II.  Other Information                                                  12

<PAGE>
Part I.  Financial Information
<TABLE>


                                 COMMUNITY BANKSHARES INCORPORATED
                              Consolidated Balance Sheets (Unaudited)
<CAPTION>
<S> <C>
                                                          September 30,             December 31,
ASSETS                                                        1996                      1995
                                                         -------------              -------------
Cash and cash equivalents:
   Cash and due from banks                               $   7,867,916              $   7,608,418
   Federal funds sold                                    $   2,508,000              $   6,044,000
                                                         -------------              -------------
      Total cash and cash equivalents                    $  10,375,916              $  13,652,418
                                                         -------------              -------------

Securities available for sale, at fair value             $  15,685,455              $  10,975,301
Investment securities                                    $  17,795,219              $  23,282,101
                                                         -------------              -------------
      Total securities                                   $  33,480,674              $  34,257,402
                                                         -------------              -------------

Loans, net of unearned income                            $ 116,896,130              $ 108,640,775
   Less allowance for loan losses                        $   1,251,523              $   1,235,614
                                                         -------------              -------------
      Net loans                                          $ 115,644,607              $ 107,405,161

Bank premises and equipment, net                         $   2,717,962              $   2,847,981
Accrued interest receivable                              $   1,124,891              $     982,274
Other assets                                             $   2,036,331              $   1,931,882
                                                         -------------              -------------
      Total assets                                       $ 165,380,381              $ 161,077,118
                                                         =============              =============
LIABILITIES AND STOCKHOLDER'S EQUITY

Deposits:
   Demand deposits                                       $  23,973,592              $  23,532,250
   Interest-bearing demand deposits                      $  39,758,373              $  40,568,447
   Savings deposits                                      $  26,812,718              $  24,387,463
   Time Deposits, $100,000 and over                      $  10,269,908              $  10,979,834
   Other time deposits                                   $  44,940,649              $  44,103,097
                                                         -------------              -------------
      Total deposits                                     $ 145,755,240              $ 143,571,091
                                                         -------------              -------------

Accrued interest payable                                 $     469,660              $     489,824
Other liabilities                                        $   1,023,012              $     793,782
Guaranteed debt of Employee Stock
   Ownership Trust                                       $     305,000              $     330,000
                                                         -------------              -------------
      Total liabilities                                  $ 147,552,912              $ 145,184,697
                                                         -------------              -------------

Stockholder's equity
   Capital stock                                         $   5,703,240              $   5,561,925
   Surplus                                               $      32,500              $        --
   Retained earnings                                     $  12,602,941              $  10,574,298
   Unrealized gains (losses) on securities
    available for sale, net of taxes                     $    (206,212)             $      86,198
                                                         -------------              -------------
      Total stockholder's equity                         $  18,132,469              $  16,222,421
                                                         -------------              -------------
      Unearned ESOP shares                               $    (305,000)             $    (330,000)

      Total liabilities and
         stockholder's equity                            $ 165,380,381              $ 161,077,118
                                                         =============              =============
</TABLE>

                                      - 3 -
<PAGE>
<TABLE>
                                                 COMMUNITY BANKSHARES INCORPORATED
                                           Consolidated Statements of Income (Unaudited)
<CAPTION>
<S> <C>
                                                                             Quarter ended                    Nine months ended
                                                                              September 30,                     September 30,
                                                                      ----------------------------      ---------------------------
                                                                          1996             1995             1996            1995
                                                                      -----------      -----------      -----------     -----------
Interest  income:
       Interest and fees on loans                                     $ 2,923,479      $ 2,734,982      $ 8,490,475     $ 7,827,032
       Interest on securities:
         U.S. Treasury securities                                     $    31,755      $    89,185      $   149,488     $   299,340
         Obligations of U.S. Government
           agencies and corporations                                  $   502,881      $   316,519      $ 1,433,461     $   784,831
         Obligations of states and political subdivisions             $    22,497      $    16,283      $    51,081     $    50,556
         Other securities                                             $    12,600      $    32,630      $    64,073     $    95,957
       Interest on Federal funds sold                                 $    64,014      $   126,168      $   187,805     $   235,388
                                                                      -----------      -----------      -----------     -----------
             Total interest income                                    $ 3,557,226      $ 3,315,767      $10,376,383     $ 9,293,104

Interest expense:
       Interest on deposits                                           $ 1,334,002      $ 1,355,183      $ 3,993,843     $ 3,681,825
       Interest on Federal funds purchased                            $         -      $       461      $     4,693     $    16,625
                                                                      -----------      -----------      -----------     -----------
             Total interest expense                                   $ 1,334,002      $ 1,355,644      $ 3,998,536     $ 3,698,450
                                                                      -----------      -----------      -----------     -----------
             Net interest income                                      $ 2,223,224      $ 1,960,123      $ 6,377,847     $ 5,594,654
                                                                      -----------      -----------      -----------     -----------

Provision for loan losses                                             $    99,000      $    77,000      $   240,000     $   246,000
             Net interest income after provision
               for loan losses                                        $ 2,124,224      $ 1,883,123      $ 6,137,847     $ 5,348,654
                                                                      -----------      -----------      -----------     -----------

Other income:
       Service charges, commissions and fees                          $   267,719      $   234,284      $   774,736     $   764,599
       Security gains (losses)                                        $    (2,102)     $    (2,630)     $    27,132     $    (9,418)
       Gain on sale of bank premises and equipment                    $         -      $         -      $         -     $    15,132
       Gain on sale of other real estate                              $         -      $         -      $    60,140     $         -
       Other operating income                                         $    10,718      $    18,555      $    17,690     $    45,622
                                                                      -----------      -----------      -----------     -----------
             Total other income                                       $   276,335      $   250,209      $   879,698     $   815,935

Other expenses:
       Salaries and benefits                                          $   717,688      $   678,601      $ 2,091,923     $ 1,962,846
       Net occupancy expenses                                         $    90,076      $    92,347      $   290,102     $   273,281
       Furniture and equipment expenses                               $    98,130      $    82,483      $   285,368     $   246,957
       Other operating expenses                                       $   251,877      $   271,007      $   925,323     $   952,188
                                                                      -----------      -----------      -----------     -----------
             Total other expenses                                     $ 1,157,771      $ 1,124,438      $ 3,592,716     $ 3,435,272

Income before income taxes                                            $ 1,242,788      $ 1,008,894      $ 3,424,829     $ 2,729,317
Income tax expense                                                    $   416,118      $   379,975      $ 1,201,477     $   990,362
                                                                      -----------      -----------      -----------     -----------
             Net income                                               $   826,670      $   628,919      $ 2,223,352     $ 1,738,955
                                                                      -----------      -----------      -----------     -----------

Earnings per common and common equivalent
  shares (based on 1,992,446; 1,967,261
  1,939,101; 1,939,101 respectively)                                        $0.41            $0.32            $1.13           $0.90
Earnings per common share, assuming full                                    -----            -----            -----           -----
  dilution( based on 1,992,446; 1,967,261                                   $0.41            $0.32            $1.13           $0.90
  1,992,446; 1,939,101 respectively)                                         -----            -----            -----           -----
                                                               - 4 -
</TABLE>




<PAGE>
<TABLE>

                                     COMMUNITY BANKSHARES INCORPORATED
                             Consolidated Statements of Cash Flows (Unaudited)
                               Nine Months Ended September 30, 1996 and 1995
<CAPTION>
<S> <C>
                                                                        1996                      1995
                                                                    ------------              ------------
Cash Flows from Operating Activities
     Net income                                                     $  2,298,456              $  1,738,955
     Adjustments to reconcile net income to net cash and
       cash equivalents provided by operating activities:
         Depreciation of bank premises and equipment                $    261,344              $    225,221
         Provision for loan losses                                  $    240,000              $    246,000
         Amortization and accretion of investment securities        $      6,764              $     10,019
         Gain on sale of bank premises and equipment                $       --                $    (15,132)
         Gain on sale of other securities                           $     (1,228)             $       --
         Gain on sale of other real estate                          $    (60,140)             $       --
         Changes in operating assets and liabilities:
            Decrease in accrued interest receivable                 $   (142,617)             $   (211,597)
            Increase in prepaid expenses                            $    (25,158)             $     37,583
            Decrease in accrued interest payable                    $    (20,164)             $     74,331
       Net change in other operating assets and liabilities         $   (147,416)             $   (408,779)
                                                                    ------------              ------------
            Net cash and cash equivalents provided
              by operating activities                               $  2,409,841              $  1,696,601

Cash Flows from Investing Activities
     Proceeds from sale of investment securities                    $  5,805,936              $       --
     Proceeds from maturities of investment securities              $  3,893,145              $  8,684,642
     Purchase of investment securities                              $ (9,375,654)             $(14,776,171)
     Purchase of other real estate                                  $   (750,201)             $       --
     Net increase in loans                                          $ (8,046,946)             $ (6,511,327)
     Proceeds from sale of bank premises and equipment              $       --                $     71,610
     Proceeds from sale of other real estate                        $    510,396              $     17,742
     Capital expenditures                                           $   (131,009)             $   (341,751)
                                                                    ------------              ------------
            Net cash and cash equivalents used in
              investing activities                                  $ (8,094,333)             $(12,855,255)

Cash Flows from Financing Activities
     Net increase in deposits                                       $  2,453,107              $ 16,155,876
     Net increase (decrease) in federal funds purchased             $       --                $   (793,000)
     Issuance of common stock                                       $    186,883              $  1,113,308
     Dividends paid                                                 $   (232,000)             $   (201,250)
                                                                    ------------              ------------
            Net cash and cash equivalents provided
              by financing activities                               $  2,407,990              $ 16,274,934
                                                                    ------------              ------------

Increase (decrease) in cash and cash equivalents                    $ (3,276,502)             $  5,116,280

Cash and cash equivalents at beginning of period                    $ 13,652,418              $  9,708,716
                                                                    ------------              ------------

Cash and cash equivalents at end of period                          $ 10,375,916              $ 14,824,996
                                                                    ------------              ------------

Supplemental Disclosure of Cash Flow Information
     Cash payments for:
        Interest                                                    $  3,978,372              $  3,772,781
                                                                    ------------              ------------

        Income taxes                                                $    955,449              $    883,536
                                                                    ------------              ------------
</TABLE>

                                                        - 5 -
<PAGE>



               MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                      CONDITION AND RESULTS OF OPERATIONS



     On December 12, 1995,  the Board of  Directors  unanimously  voted to enter
into an Agreement and Plan for  Reorganization  (the plan) with Commerce Bank of
Virginia to combine  their  businesses.  Commerce Bank of Virginia is a Virginia
state  bank  with its  principal  office  located  in  Richmond,  Virginia.  The
combination of the two companies was consummated  through a Share Exchange under
Virginia law.  Under the terms of the Plan,  Commerce Bank of Virginia  became a
wholly-owned  subsidiary of Community  Bankshares  Incorporated.  For each share
owned,  the  shareholders of Commerce Bank of Virginia  received 1.4044 share of
stock of Community Bankshares Incorporated. The transaction was accounted for as
a pooling of interests.  CBI received an opinion from its independent accounting
firm that the  transaction  does  qualify  for such  accounting  treatment.  The
Stockholders of Community Bankshares  Incorporated and Commerce Bank of Virginia
voted to approve the Agreement at their Annual Meetings on June 18, 1996.

     All necessary legal and regulatory approvals for the plan were received and
the  transaction was consummated on July 1, 1996.  Therefore,  the  accompanying
financial  statements  have been restated to include the financial  position and
results of operations of Commerce Bank of Virginia

     Community  Bankshares  Incorporated (the "Company") is a multi-bank holding
company organized under Virginia law which provides  financial  services through
its wholly-owned subsidiaries, The Community Bank and Commerce Bank of Virginia.
Both subsidiary  banks are full service retail  commercial banks offering a wide
range of  banking  services,  including  demand  and time  deposits,  as well as
commercial,  industrial,  residential  construction,  residential  mortgage  and
consumer loans. The Company's  primary trade areas are the Petersburg,  Virginia
area and the Richmond, Virginia area. The Company operates nine branch locations
in these trade areas.

     The following discussion provides information about the major components of
the  results of  operations  and  financial  condition,  liquidity  and  capital
resources of Community  Bankshares  Incorporated.  This  discussion and analysis
should be read in conjunction with the Consolidated Financial Statements.




                                      - 6 -
<PAGE>
Overview.  Net  income for the first nine  months of 1996 of  $2,223,352  was an
increase of 27.86% over the first nine  months of 1995.  Earnings  per share for
the nine months ended September 30, 1996 was $1.13 compared to $.90 for the same
period last year.

     The  Company's  return on average  equity has  increased for the first nine
months of 1996 over 1995.  The return on average  equity was 17.20% for the nine
months  ended  September  30,  1996,  compared  to15.99% in 1995.  The return on
average assets  amounted to 1.82% and 1.55% for the nine months ended  September
30, 1996 and 1995.

Net Interest  Income.  Net interest  income  represents the principal  source of
earnings  for the  Company.  Net  interest  income  equals  the  amount by which
interest  income  exceeds  interest  expense.  Changes  in the volume and mix of
interest-earning  assets  and  interest-bearing  liabilities,  as well as  their
respective  yields  and  rates,  have a  significant  impact on the level of net
interest income.

     Net interest income  increased  14.00% to $6.378 million for the first nine
months of 1996.  This increase was  attributable  to the growth in the Company's
loan portfolio.  Total loans outstanding  increased 7.60%, or $8.255 million for
the first nine months of 1996. The Company has had a consistent increase in loan
demand.  It is management's  belief that the increase in the lending volume is a
result of competitive pricing and,  responsiveness to loan demands.  The ability
to make timely loan decisions is an operating  characteristic  that often allows
the  Company  the  opportunity  to meet the  needs  of  borrowers  before  their
competitors.  The Company is competitive with rates and origination fees charged
on loans. However,  since 70.83% of the entire loan portfolio may be repriced in
one year or less,  the  Company  has the  ability to  respond  quickly to market
changes in rate structures.

     Interest  expense for the nine months ended  September 30, 1996,  increased
8.11% to $3.999  million as compared  to $3.698  million for the same period one
year  earlier.   This  increase  was  due  to  an  increase  in  the  volume  of
interest-bearing liabilities.








                                      - 7 -

<PAGE>

Provision  for Possible  Loan Losses.  The  provision  for possible  loan losses
totaled  $240,000  for the first nine month of 1996 as compared to $246,000  for
the same period one year  earlier.  This  provision  is an estimate of an amount
deemed adequate to provide for potential  losses in the portfolio.  The level of
losses is affected by general  economic  trends as well as conditions  affecting
individual borrowers.  The allowance is also subject to regulatory  examinations
and  determination  as to adequacy,  which may take into account such factors as
the methodology used to calculate the allowance and comparison to peer groups.

     The allowance for loan losses  totaled $1.252 million at September 30, 1996
or 1.07% of total loans,  as compared to $1.236 or 1.14% at September  30, 1995.
Non-performing  assets totaled $2.175 million at September  30,1996  compared to
$1.570  million at December 31, 1995.  The  multiple of the  allowance  for loan
losses to  non-performing  assets was .58x at  September  30,  1996 and 1.27x at
December 31, 1995. Management constantly evaluates non-performing loans relative
to their collateral value and makes appropriate reductions in the carrying value
of those loans based on that review.

     The  allowance for loan losses  related to loans  identified as impaired is
primarily  based on the  excess  of the  loan's  current  outstanding  principal
balance over the estimated  fair market value of the related  collateral.  For a
loan that is not  collateral-dependent,  the allowance is recorded at the amount
by which the outstanding principal balance exceeds the current best estimate for
the future cash flows on the loan  discounted at the loan's  effective  interest
rate.

     Loans, including impaired loans, are generally placed in non-accrual status
when they are delinquent in principal and interest payments greater than 90 days
and the loan is not well  secured  and in process  of  collection.  Accruals  of
interest  are  discontinued  until it becomes  certain that both  principal  and
interest can be repaid.  The Company does have loans that are contractually past
due greater  than 90 days that are not in  non-accrual  status,  however,  those
loans are still  accruing  because  they are well  secured and in the process of
collection.  A loan  is well  secured  if  collateralized  by  liens  on real or
personal property, including securities, that have a realizable value sufficient
to discharge the debt in full or by the  guarantee of a financially  responsible
party.

     If foreclosure of property is required, the property is generally sold at a
public auction in which the Company may participate as a bidder.  If the Company
is the successful  bidder, the acquired real estate property is then included in
the Company's real estate owned account until it is sold.

                                      - 8 -


<PAGE>

Non-Interest Income. For the nine months ended September 30, 1996,  non-interest
income  increased  $63,763 or 7.81% to $879,698 as compared to $815,935 one year
earlier.  The increase was primarily due to a one time gain on the sale of other
real estate owned in the amount of $60,140.

Non-Interest Expense. Non-interest expense of $3.593 million for the nine months
ended  September 30, 1996,  was an increase of $157,444 or 4.58% over the $3.435
million for the same period  last year.  Salaries  and  employee  benefits,  the
largest component on non-interest  expense increased 6.58% to $2.092 million for
the first nine months of 1996.

Financial Condition

     Total assets as of September 30, 1996 were $165.380 million, an increase of
2.67% from $161.077  million at December 31, 1995.  Net loan volume for the nine
months ended September 30, 1996 stood at $115.645 million, an increase of $8.239
million or 7.67% over the $107.405 million recorded at December 31, 1995.

     Deposits  for the nine months  ended  September  30, 1996 stood at $145.755
million an increase of $2.184 million or 1.52% over the $143.571 at December 31,
1995.

     Total  securities for the nine months ended September 30, 1996 were $33.481
million a decrease of $776,728 or 2.27% from the $34.257 million at December 31,
1995. The securities  portfolio is maintained to manage excess funds in order to
provide  diversification  and liquidity in the overall asset management  policy.
The maturity of  securities  purchased are based on the needs of the Company and
current yields and other market conditions.

     Securities  are  classified as  held-to-maturity  when  management  has the
positive  intent and the Company has the ability at the time of purchase to hold
them  until  maturity.  These  securities  are  carried  at cost,  adjusted  for
amortization  of premium and  accretion of discount.  Securities  to be held for
indefinite  periods  of time and not  intended  to be  held-to-maturity  or on a
long-term basis are classified as  available-for-sale  and accounted for at fair
market value on an aggregate  basis.  Unrealized gains or losses are reported as
increases or decreases in stockholder's equity, net of the related tax effect.




                                      - 9 -

<PAGE>

Capital Resources

     Capital resources represent funds, earned or obtained, over which financial
institutions  can exercise greater or longer control in comparison with deposits
or  borrowed  funds.  The  adequacy  of the  Company's  capital is  reviewed  by
management  on an ongoing  basis with  reference to the size,  composition,  and
quality of the Company's resources and consistency with regulatory  requirements
and industry  standards.  Management seeks to maintain a capital  structure that
will assure an adequate level of capital to support anticipated asset growth and
absorb potential losses.

     The Federal  Reserve,  along with the  Comptroller  of the Currency and the
Federal  Deposit  Insurance  Corporation,  has  adopted  capital  guidelines  to
supplement the existing  definitions  of capital for regulatory  purposes and to
establish minimum capital  standards.  Specifically,  the guidelines  categorize
assets and  off-balance  sheet  items into four  risk-weighted  categories.  The
minimum ratio of qualifying  total capital to  risk-assets is 8.0% of which 4.0%
must be Tier 1 capital,  consisting of common  equity,  retained  earnings and a
limited amount of perpetual preferred stock, less certain goodwill items.

     At  September  30,  1996,   the   Company's   ratio  of  total  capital  to
risk-weighted assets was 16.70% and its ratio of Tier 1 capital to risk-weighted
assets  was  15.63%.   Both  ratios   exceeded  the  fully   phased-in   capital
requirements.  The following  summarizes  the Company's  regulatory  capital and
related ratios at September 30, 1996 (dollars in thousands):

                  Tier 1 Capital                                  $ 18.338
                  Tier 2 Capital                                  $  1.251
                  Total risk-based capital                        $ 19.589
                  Total risk-weighted assets                      $117.307

                    Capital Ratios:
                    Tier 1 risk-based  capital ratio                 15.63%
                    Total  risk-based capital  ratio                 16.70%
                    Tier 1 Capital to  average  total assets         11.05%






                                     - 10 -

<PAGE>

Liquidity

     Liquidity  represents an  institution's  ability to meet present and future
financial  obligations through either the sale or maturity of existing assets or
the acquisition of additional funds through liability management.  Liquid assets
include  cash,   interest-bearing  deposits  with  banks,  federal  funds  sold,
investments  and loans  maturing  within one year.  As a result of the Company's
management  of liquid  assets and the  ability  to  generate  liquidity  through
liability  funding,  management  believes  that the  Company  maintains  overall
liquidity  sufficient to satisfy its  depositors'  requirements  and to meet its
customer's credit needs.

    For the nine months ended  September  30, 1996 the Company  provided cash or
liquidity  from  operations  in the amount of $2.410  million.  This increase in
funds in  addition  to $2.408  million in net cash  provided  by an  increase in
deposits  and other  financing  activities  provided  a total of $4.818  million
available  for  investing  during the first nine months of 1996.  The  Company's
investing activities used $8.094 million in the same period,  composed mainly of
an  increase  in loans of $8.047  million,  which  produced  a net  decrease  in
liquidity of approximately $3.277 million.  Cash and cash equivalents on hand at
September 30, 1996 totaled  $10.376  million.  With 70.83% of the loan portfolio
repricing  or maturing in the next twelve  months,  the Company has enough asset
liquidity to meet the needs of maturing deposits.







                                     - 11 -

<PAGE>

Part II.   Other Information
Item:
     1       Legal proceedings                   None

     2       Changes in securities               None

     3       Defaults upon senior securities     None

     4       Results of votes of security holders
             (a)   Approved  the  Agreement  and Plan of  Reorganization,  dated
                   December 12, 1995,  between CBI and Commerce Bank of Virginia
                   ("CBOV") and a related plan of Share Exchange  (collectively,
                   the  "Reorganization  Agreement"),   providing  for  a  Share
                   Exchange between COB and CBI (the  "Reorganization") upon the
                   terms and  conditions  herein,  including  among other things
                   that each issued and outstanding  share of CBOV Stock will be
                   exchanged for 1.4044  shares of CBI Common  Stock,  with cash
                   being aid in lieu of issuing fractional shares.

             (b)   Amended Article 8 of the Articles of  Incorporation to permit
                   an  increase  in the size of the Board of  Directors  by more
                   than two in a twelve  month  period,  if the  increase  is in
                   connection  with a merger or share exchange to which CBI or a
                   wholly owned  subsidiary of CBI is a party,  provided the 85%
                   vote  requirement  of Article 9 does not apply to such merger
                   or share exchange.

     5       Other information                   None

     6       Exhibits and Reports on Form 8-K
             (a)   Exhibits - None

             (b)   Reports on Form 8-K - Form 8-K was filed on July 15, 1996, to
                   disclose  the  results  of the Share  Exchange  as  mentioned
                   above, which was effective on July 1, 1996.


                                     - 12 -

<PAGE>

SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereto duly authorized.



                          COMMUNITY BANKSHARES INCORPORATED




                          s/ Nathan S. Jones, 3rd.
                          -------------------------------------
                          Nathan S. Jones, 3rd.
                          President and Chief Executive Officer




                          s/Thomas H. Caffrey, Jr.
                          -------------------------------------
                          Thomas H. Caffrey, Jr.
                          Senior Vice President and Chief Financial Officer


Date:  November 8, 1996