Community Bankshares Inc. -SC- Announces First Quarter 2005 Earnings.

ORANGEBURG, S.C. -- Community Bankshares Inc., (AMEX: SCB), announced consolidated net income of $1,360,000 or $.30 per diluted share for the quarter ended March 31, 2005 compared to $1,385,000 or $.31 per diluted share for the quarter ended March 31, 2004, a decrease of $25,000 or 1.7%.

Consolidated assets for Community Bankshares totaled $523.1 million at March 31, 2005 compared to $512.4 million at December 31, 2004, an increase of $10.7 million or 2.1%. For the same periods, gross loans totaled $406 million compared to $393.6 million, an increase of $12.4 million or 3.2%. For the same periods, deposits totaled $430.1 million compared to $423.5 million, an increase of $6.6 million or 1.6%.

CEO Samuel L. Erwin stated, "We are pleased that our first quarter net interest income was more than 15% higher than the first quarter of 2004. However, that improvement was offset by increases in the provision for loan losses and noninterest expenses, which included substantial compliance expenses related to Sarbanes Oxley requirements that were not incurred in 2004. Earnings were down slightly, less than 2%, from the same quarter one year ago. While earnings were lower than we would have liked, the results were also a significant improvement over the third and fourth quarters of 2004."

Erwin continued, "Our Company is growing in size and complexity. This is the first quarter our average assets have exceeded $500 million. As we grow, we are constantly evaluating ways to improve our operations, with particular emphasis on risk management and internal controls. One major step in this process was the recent addition of Greg Burke as our Chief Credit Officer. Greg brings to our management team 16 years of commercial banking and credit administration experience. He will work with our banks in major commercial loan relationships and other areas of loan operations and administration. We are very fortunate to have someone of his caliber join us."

Community Bankshares, Inc.'s common stock is traded on the American Stock Exchange under the ticker symbol SCB. Community Bankshares Inc., based in Orangeburg, South Carolina, is the holding company for the Bank of Ridgeway, Florence National Bank, Sumter National Bank, Orangeburg National Bank and Community Resource Mortgage, Inc.

This press release contains forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainties, and several factors could cause actual results to differ materially from those in the forward-looking statements. Forward-looking statements relate to anticipated revenues, gross margins, earnings, expansion of mortgage services marketing, improvement of mortgage services efficiency, and growth of the market for our services and products. The following factors, among others, could cause actual results to differ from those indicated in the forward-looking statements: uncertainties associated with market acceptance of and demand for the company's services and products, impact of competitive products and pricing, dependence on third party suppliers, and uncertainties associated with the development of technology. Investors are directed to the company's 2004 annual report, which is available from the company without charge or from its website, www.communitybanksharesinc.com, for a more complete description of the company's business.

CONSOLIDATED FINANCIAL HIGHLIGHTS
                              (unaudited)
             (Amounts in thousands, except per share data)

 For the quarter ended March 31,      2005         2004
---------------------------------------------------------
Net interest income                  $4,935       $4,268
Provision for loan losses              $450         $233
Non-interest income                  $1,767       $1,846
Non-interest expense                 $4,119       $3,733
Income tax provision                   $773         $763
Net income after taxes               $1,360       $1,385
Basic earnings per common
 share:
  Average shares                      4,394        4,334
  Earnings per share                  $0.31        $0.32
Diluted earnings per common
 share:
  Average shares                      4,497        4,476
  Earnings per share                  $0.30        $0.31
Cash dividends per share              $0.10        $0.10

                               At March 31,  At Dec. 31,  At March 31,
                                    2005         2004         2004
                              ----------------------------------------
Gross loans, excluding held
 for sale                          $406,049     $393,649     $338,945
Total assets                       $523,062     $512,377     $462,473
Total deposits                     $430,066     $423,458     $367,605
Shareholders' equity                $50,734      $50,027      $49,374
Common shares outstanding             4,403        4,391        4,336
Book value per share                 $11.52       $11.39       $11.39