8-K

================================================================================

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

                                    FORM 8-K

                                 CURRENT REPORT

     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

        Date of Report (Date of earliest event reported) January 17, 2007

                          COMMONWEALTH BANKSHARES, INC.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)

              Virginia                  01-17377             54-1460991
    ----------------------------      ------------      -------------------
    (State or other jurisdiction      (Commission        (I.R.S. Employer
          of incorporation)           File Number)      Identification No.)

         403 Boush Street, Norfolk, Virginia                   23510
      ----------------------------------------              ----------
      (Address of principal executive offices)              (Zip Code)

        Registrant's telephone number including area code: (757) 446-6900


         --------------------------------------------------------------
         (Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:

[ ]  Written communications pursuant to Rule 425 under the Securities
     Act (17 CFR 230.425)

[ ]  Soliciting material pursuant to Rule 14a-12 under the Exchange
     Act (17 CFR 240.14a-12)

[ ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the
     Exchange Act (17 CFR 240.14d-2(b))

[ ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the
     Exchange Act (17 CFR 240.13e-4(c))

================================================================================



SECTION 8 - OTHER EVENTS

Item 8.01 Other Events.

         On January 17, 2007, Commonwealth Bankshares, Inc. issued a press
release announcing the declaration of a quarterly dividend payable February 28,
2007 to shareholders of record as of February 19, 2007. A copy of the Company's
press release is attached as Exhibit 99.1 hereto and is herby incorporated
herein by reference.

SECTION 9 - FINANCIAL STATEMENTS AND EXHIBITS

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

          99.1   Press Release, dated January 17, 2007, entitled "Commonwealth
                 Bankshares, Inc., Norfolk, VA, Announces a 20% Increase in
                 their Quarterly Cash Dividend."



                                   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, hereunto duly authorized.

                                             Commonwealth Bankshares, Inc.


Date: January 17, 2007                       By:    /s/ Cynthia A. Sabol, CPA
                                                    ----------------------------
                                             Name:  Cynthia A. Sabol, CPA
                                             Title: Executive Vice President and
                                                    Chief Financial Officer

EX-99.1

                                                                    Exhibit 99.1

                     NEWS STORY FOR COMMONWEALTH BANKSHARES

                                January 17, 2007

  COMMONWEALTH BANKSHARES, INC., NORFOLK, VA, ANNOUNCES A 20% INCREASE IN THEIR
                             QUARTERLY CASH DIVIDEND

Norfolk, VA, January 17 / PRNewswire-FirstCall/ -- The directors of Commonwealth
Bankshares, Inc. (NASDAQ: CWBS) declared a quarterly cash dividend in the amount
of $0.06 per share on its common stock, payable February 28, 2007, to
shareholders of record as of February 19, 2007. This is the first quarterly
dividend declared in 2007 for an increase of 20.7% over the $0.05 per share
dividend declared in the previous quarter. Total dividends paid in 2006 were
$0.1991 per share up 14.6% from the total dividends of $0.1736 per share paid in
2005. All share and per share amounts have been restated for all periods
presented to reflect the eleven-for-ten stock split distributed on June 30, 2006
to shareholders of record on June 19, 2006 and the eleven-for-ten stock split
distributed on December 29, 2006 to shareholders of record on December 18, 2006.

Commonwealth Bankshares, Inc. offers its shareholders the convenience of a
Dividend Reinvestment and Stock Purchase Plan and the direct deposit of cash
dividends, without payment of any brokerage commission, fee or service charge.

Holders of stock may have their quarterly dividends automatically reinvested in
additional shares of the Company's common stock by utilizing the Dividend
Reinvestment Plan. Shares of common stock purchased through the Dividend
Reinvestment Plan with reinvested dividends will be 95% of the market price.

Shareholders participating in the Stock Purchase Plan may also make voluntary
cash contributions not to exceed $20,000 per quarter. These shares are issued at
market value, without incurring brokerage commissions. In addition, shareholders
also have the option of having their cash dividends deposited directly into an
account with Bank of the Commonwealth.

Shareholders may receive information on the Dividend Reinvestment and Stock
Purchase Plan or direct deposit of cash dividends by contacting the Stock
Transfer Department at Bank of the Commonwealth, P.O. Box 1177, Norfolk, VA
23501-1177.

About Commonwealth Bankshares

Commonwealth Bankshares, Inc. is the parent of Bank of the Commonwealth which
opened its first office in Norfolk, Virginia, in 1971, creating a community bank
that was attuned to local issues and could respond to the needs of local
citizens and businesses. Over the last three decades, the Company's growth has
mirrored that of the communities it serves. Today, Bank of the Commonwealth has
eleven bank branches strategically located throughout the Hampton Roads region
and an extensive ATM network for added convenience. The Company continues to
grow and develop new services, such as Online Banking and a Corporate Cash
Management program and at the same time, maintain the longstanding commitment to
personal service. Our slogan conveys our true corporate philosophy: "When you
bank with us, you bank with your neighbors." Bank of the Commonwealth offers
insurance services through its subsidiary BOC Insurance Agencies of Hampton
Roads, Inc., title services through its subsidiary Executive Title Center,
mortgage funding services through its subsidiary Bank of the Commonwealth
Mortgage and investment related services through its new subsidiary,
Commonwealth Financial Advisors, LLC.* Additional information about the company,
its products and services, can be found on the Web at
www.bankofthecommonwealth.com.

Contact: Edward J. Woodard, Jr., CLBB, Chairman of the Board, President and
Chief Executive Officer, P.O. Box 1177, Norfolk, Virginia 23501, Phone: (757)
446-6904 or ewoodard@bocmail.net Web Site: http://bankofthecommonwealth.com



*Securities and Insurance Products are: *not insured by FDIC or any Federal
Government Agency * May Lose Value * Not a Deposit of or Guaranteed by the Bank
or any Bank Affiliate. Securities and insurance offered through BI Investments,
LLC. member NASD and SIPC. BI Investments is associated with Bank of the
Commonwealth. Commonwealth Financial Advisors, LLC is a wholly-owned subsidiary
of Bank of the Commonwealth. This press release contains forward-looking
statements. Words such as "anticipates," " believes," "estimates," "expects,"
"intends," "should," "will," variations of such words and similar expressions
are intended to identify forward-looking statements. These statements reflect
management's current beliefs as to the expected outcomes of future events and
are not guarantees of future performance. These statements involve certain
risks, uncertainties and assumptions that are difficult to predict with regard
to timing, extent, likelihood and degree of occurrence. Therefore, actual
results and outcomes may materially differ from what may be expressed or
forecasted in such forward-looking statements. Factors that could cause a
difference include, among others: changes in the national and local economies or
market conditions; changes in interest rates, deposit flows, loan demand and
asset quality, including real estate and other collateral values; changes in
banking regulations and accounting principals, policies or guidelines; and the
impact of competition from traditional or new sources. These and other factors
that may emerge could cause decisions and actual results to differ materially
from current expectations. Commonwealth Bankshares, Inc. undertakes no
obligation to revise, update, or clarify forward-looking statements to reflect
events or conditions after the date of this release.