<PAGE>

                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                    FORM 10-Q


[X]      QUARTERLY REPORT UNDER SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE
         ACT OF 1934

For the quarterly period ended September 30, 2004


[]       TRANSITION REPORT UNDER SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE
         ACT OF 1934

For the transition period from ______________ to _____________


Commission file number 0-19028


                               CCFNB BANCORP, INC.
                 (Name of small business Issuer in its charter)


PENNSYLVANIA                                          23-2254643
(State or other jurisdiction of                       (I.R.S. Employer
incorporation or organization)                        Identification Number)

232 East Street, Bloomsburg, PA                       17815
(Address of principal executive offices)              (Zip Code)

Issuer's telephone number, including area code:       (570) 784-4400


         Check whether the issuer (1) 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 issuer was required to file such
reports), and (2) has been subject to such filing requirings for the past 90
days. Yes [X] No [ ]


         Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date. 1,271,993 shares of
$1.25 (par) common stock were outstanding as of October 19, 2004.






<PAGE>

CCFNB BANCORP, INC. AND SUBSIDIARY
INDEX 10-Q
SEPTEMBER 30, 2004

<TABLE>
<S>                                                                              <C>
PART I   - FINANCIAL INFORMATION:

         - Consolidated Balance Sheets                                              1

         - Consolidated Statements of Income                                        2

         - Consolidated Statements of Cash Flows                                    3

         - Notes to Consolidated Financial Statements                             4 - 13

         - Report of Independent Registered Public Accounting Firm                  14

         - Management's Discussion and Analysis of Consolidated Financial
           Condition and Results of Operations                                   15 - 21

         - Controls and Procedures                                                  21

PART II  - OTHER INFORMATION                                                        23

SIGNATURES                                                                          24
</TABLE>



<PAGE>

CCFNB BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                                   Unaudited
                                                                                   September    December
                                                                                   30, 2004     31, 2003
                                                                                   --------     --------
<S>                                                                                <C>          <C>
ASSETS
Cash and due from banks                                                            $   5,016    $  6,359
Interest-bearing deposits with other banks                                             3,517       5,480
Federal funds sold                                                                       535         523
Investment securities available-for-sale                                              64,490      62,775
Loans, net of unearned income                                                        149,103     147,630
Allowance for loan losses                                                              1,425       1,415
                                                                                   ---------    --------
       Net loans                                                                     147,678     146,215
Premises and equipment, net                                                            4,467       4,282
Other real estate owned                                                                   36          36
Cash surrender value of bank-owned life insurance                                      6,133       5,908
Accrued interest receivable                                                              812         811
Other assets                                                                             618         525
                                                                                   ---------    --------
             TOTAL ASSETS                                                          $ 233,302    $232,914
                                                                                   =========    ========

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
Deposits:
       Non-interest bearing                                                        $  17,290    $ 17,313
       Interest bearing                                                              154,238     154,473
                                                                                   ---------    --------
             Total Deposits                                                          171,528     171,786
Short-term borrowings                                                                 20,734      20,990
Long-term borrowings                                                                  11,327      11,335
Accrued interest and other expenses                                                    1,269       1,187
Other liabilities                                                                         87          13
                                                                                   ---------    --------
             TOTAL LIABILITIES                                                       204,945     205,311
                                                                                   ---------    --------

STOCKHOLDERS' EQUITY
Common stock, par value $1.25 per share; authorized 5,000,000 shares; issued and
       outstanding 1,271,993 shares in 2004 and 1,276,445 shares in 2003               1,590       1,595
Surplus                                                                                3,512       3,635
Retained earnings                                                                     22,931      21,997
Accumulated other comprehensive income (loss)                                            324         376
                                                                                   ---------    --------
             TOTAL STOCKHOLDERS' EQUITY                                               28,357      27,603
                                                                                   ---------    --------
             TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                            $ 233,302    $232,914
                                                                                   =========    ========
</TABLE>

See accompanying notes to Consolidated Financial Statements.



                                      -1-
<PAGE>

CCFNB BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS EXCEPT PER SHARE DATA)
UNAUDITED

<TABLE>
<CAPTION>
                                                          For the Nine            For the Three
                                                         Months Ending            Months Ending
                                                         September 30,            September 30,
                                                   -----------------------   -----------------------
                                                      2004         2003         2004         2003
                                                   ----------   ----------   ----------   ----------
<S>                                                <C>          <C>          <C>          <C>
INTEREST INCOME
Interest and fees on loans:
       Taxable                                     $    6,211   $    6,839   $    2,055   $    2,215
       Tax-exempt                                         271          153          108           60
Interest and dividends on investment securities:
       Taxable interest                                 1,126          877          374          268
       Tax-exempt interest                                345          479          105          139
       Dividends                                           52           45           26           17
Federal funds sold                                          7           40            3           11
Deposits in other banks                                    37           41           15            8
                                                   ----------   ----------   ----------   ----------
             TOTAL INTEREST INCOME                      8,049        8,474        2,686        2,718
                                                   ----------   ----------   ----------   ----------

INTEREST EXPENSE
Deposits                                                2,008        2,690          671          782
Short-term borrowings                                     206          209           76           65
Long-term borrowings                                      510          508          171          171
                                                   ----------   ----------   ----------   ----------
             TOTAL INTEREST EXPENSE                     2,724        3,407          918        1,018
                                                   ----------   ----------   ----------   ----------

Net interest income                                     5,325        5,067        1,768        1,700
Provision for loan losses                                 110          150           30           50
                                                   ----------   ----------   ----------   ----------
             NET INTEREST INCOME AFTER PROVISION
             FOR LOAN LOSSES                            5,215        4,917        1,738        1,650
                                                   ----------   ----------   ----------   ----------
NON-INTEREST INCOME
Service charges and fees                                  582          507          213          166
Trust department income                                   109           95           34           32
Securities gains - net                                      3            8            3            8
Bank-owned life insurance income                          191          165           63           13
Other income                                              233          359           81          198
                                                   ----------   ----------   ----------   ----------
             TOTAL NON-INTEREST INCOME                  1,118        1,134          394          417
                                                   ----------   ----------   ----------   ----------
NON-INTEREST EXPENSES
Salaries and wages                                      1,712        1,647          573          562
Pensions and other employee benefits                      598          585          198          203
Occupancy expense, net                                    294          290           93           98
Furniture and equipment expense                           351          357          116          124
Other operating expenses                                1,357        1,191          429          399
                                                   ----------   ----------   ----------   ----------
             TOTAL NON-INTEREST EXPENSES                4,312        4,070        1,409        1,388
                                                   ----------   ----------   ----------   ----------

Income before income taxes                              2,021        1,981          723          681
Income tax expense                                        424          420          157          146
                                                   ----------   ----------   ----------   ----------
             NET INCOME                            $    1,597   $    1,561   $      566   $      535
                                                   ==========   ==========   ==========   ==========

PER SHARE DATA
Net income                                         $     1.25   $     1.22   $     0.44   $     0.42
Cash dividends                                     $     0.52   $     0.49   $     0.18   $     0.17
Weighted average shares outstanding                 1,275,743    1,283,475    1,275,743    1,283,475
</TABLE>

See accompanying notes to Consolidated Financial Statements.



                                      -2-
<PAGE>

CCFNB BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
UNAUDITED

<TABLE>
<CAPTION>
                                                                                                      For the Nine
                                                                                                     Months Ending
                                                                                                     September 30,
                                                                                             ------------------------------
                                                                                                 2004              2003
                                                                                             ------------      ------------
<S>                                                                                          <C>               <C>
OPERATING ACTIVITIES
Net income                                                                                   $      1,597      $      1,561
Adjustments to reconcile net income to net cash provided by operating
   activities:
        Provision for loan losses                                                                     110               150
        Depreciation and amortization                                                                 282               293
        Premium amortization on investment securities                                                 242               448
        Discount accretion on investment securities                                                   (21)              (24)
        Deferred income taxes (benefit)                                                               (11)              (75)
        (Gain) on sale of mortgage loans                                                              (12)              (92)
        (Gain) on sales of investment securities                                                       (3)               (8)
        Proceeds from sale of mortgage loans                                                        1,328             8,178
        Originations of mortgage loans for resale                                                  (1,316)           (8,086)
        (Gain) on sale of other real estate owned                                                      --               (12)
        (Gain) loss from investment in insurance agency                                               (10)               (4)
        (Increase) decrease in accrued interest receivable and other assets                           (40)              (20)
        Net increase in cash surrender value of bank-owned life insurance                            (225)             (198)
        Increase (decrease) in accrued interest, other expenses and other liabilities                 156              (116)
                                                                                             ------------      ------------
                 NET CASH PROVIDED BY OPERATING ACTIVITIES                                          2,077             1,995
                                                                                             ------------      ------------

INVESTING ACTIVITIES
Purchase of investment securities Available-for-Sale                                              (24,026)          (45,199)
Proceeds from sales, maturities and redemptions of investment
   securities Available-for-Sale                                                                   22,027            33,015
Net (increase) decrease in loans                                                                   (1,572)            1,551
Purchases of premises and equipment                                                                  (467)             (177)
Proceeds from sale of other real estate owned                                                          --                37
Purchase of bank-owned life insurance policies                                                         --            (2,000)
                                                                                             ------------      ------------
                 NET CASH (USED IN) INVESTING ACTIVITIES                                           (4,058)          (12,773)
                                                                                             ------------      ------------

FINANCING ACTIVITIES
Net increase in deposits                                                                             (258)              939
Net increase (decrease) in short-term borrowings                                                     (256)            3,258
Net increase (decrease) in long-term borrowings                                                        (8)               (9)
Acquisition of treasury stock                                                                        (288)             (588)
Proceeds from issuance of common stock                                                                160               140
Cash dividends paid                                                                                  (663)             (627)
                                                                                             ------------      ------------
                 NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES                               (1,313)            3,113
                                                                                             ------------      ------------

                 (DECREASE) IN CASH AND CASH EQUIVALENTS                                           (3,294)           (7,665)

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                                   12,362            16,020
                                                                                             ------------      ------------
                 CASH AND CASH EQUIVALENTS AT END OF PERIOD                                  $      9,068      $      8,355
                                                                                             ============      ============

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash paid during the year for:
        Interest                                                                             $      2,726      $      3,543
        Income taxes                                                                         $        391      $        440
</TABLE>

See accompanying notes to Consolidated Financial Statements.


                                      -3-
<PAGE>

CCFNB BANCORP, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2004

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting and reporting policies of CCFNB Bancorp, Inc. and Subsidiary (the
"Corporation") are in accordance with the accounting principles generally
accepted in the United States of America and conform to common practices within
the banking industry. The more significant policies follow:

PRINCIPLES OF CONSOLIDATION

The consolidated financial statements include the accounts of CCFNB Bancorp,
Inc. and its wholly owned subsidiary, Columbia County Farmers National Bank (the
"Bank"). All significant inter-company balances and transactions have been
eliminated in consolidation.

NATURE OF OPERATIONS & LINES OF BUSINESS

The Corporation provides full banking services, including trust services,
through the Bank, to individuals and corporate customers. The Bank has six
offices covering an area of approximately 484 square miles in Northeastern
Pennsylvania. The Corporation and its banking subsidiary are subject to
regulation of the Office of the Comptroller of the Currency, The Federal Deposit
Insurance Corporation and the Federal Reserve Bank of Philadelphia.

Procuring deposits and making loans are the major lines of business. The
deposits are mainly deposits of individuals and small businesses and the loans
are mainly real estate loans covering primary residences and small business
enterprises. The trust services, under the name of CCFNB and Co., include
administration of various estates, pension plans, self-directed IRA's and other
services. A third-party brokerage arrangement is also resident in the
Lightstreet location. This investment center offers a full line of stocks, bonds
and other non-insured financial services.

USE OF ESTIMATES

The preparation of these consolidated financial statements in conformity with
accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of these consolidated financial statements and the
reported amounts of income and expenses during the reporting periods. Actual
results could differ from those estimates.

INVESTMENT SECURITIES

The Corporation classifies its investment securities as either
"Held-to-Maturity" or "Available-for-Sale" at the time of purchase. Debt
securities are classified as Held-to-Maturity when the Corporation has the
ability and positive intent to hold the securities to maturity. Investment
securities Held-to-Maturity are carried at cost adjusted for amortization of
premiums and accretion of discounts to maturity.


                                      -4-
<PAGE>

Debt securities not classified as Held-to-Maturity and equity securities
included in the Available-for-Sale category, are carried at fair value, and the
amount of any unrealized gain or loss net of the effect of deferred income taxes
is reported as other comprehensive income (loss) in the consolidated Statement
of Stockholders' Equity. Management's decision to sell Available-for-Sale
securities is based on changes in economic conditions controlling the sources
and uses of funds, terms, availability of and yield of alternative investments,
interest rate risk, and the need for liquidity.

The cost of debt securities classified as Held-to-Maturity or Available-for-Sale
is adjusted for amortization of premiums and accretion of discounts to maturity.
Such amortization and accretion, as well as interest and dividends, is included
in interest income from investments. Realized gains and losses are included in
net investment securities gains. The cost of investment securities sold,
redeemed or matured is based on the specific identification method.

LOANS

Loans are stated at their outstanding principal balances, net of deferred fees
or costs, unearned income, and the allowance for loan losses. Interest on loans
is accrued on the principal amount outstanding, primarily on an actual day
basis. Non-refundable loan fees and certain direct costs are deferred and
amortized over the life of the loans using the interest method. The amortization
is reflected as an interest yield adjustment, and the deferred portion of the
net fees and costs is reflected as a part of the loan balance.

Real estate mortgage loans held for resale are carried at the lower of cost or
market on an aggregate basis. These loans are sold with limited recourse to the
Corporation.

PAST DUE LOANS - Generally, a loan is considered past due when a payment is in
arrears for a period of 10 or 15 days, depending on the type of loan. Delinquent
notices are issued at this point and collection efforts will continue on loans
past due beyond 60 days which have not been satisfied. Past due loans are
continually evaluated with determination for charge-off being made when no
reasonable chance remains that the status of the loan can be improved.

NON-ACCRUAL LOANS - Generally, a loan is classified as non-accrual, with the
accrual of interest on such a loan discontinued when the contractual payment of
principal or interest has become 90 days past due or management has serious
doubts about further collectibility of principal or interest, even though the
loan currently is performing. A loan may remain on accrual status if it is in
the process of collection and is either guaranteed or well secured. When a loan
is placed on non-accrual status, unpaid interest credited to income in the
current year is reversed, and unpaid interest accrued in prior years is charged
against the allowance for loan losses. Certain non-accrual loans may continue to
perform, wherein, payments are still being received with those payments
generally applied to principal. Non-accrual loans remain under constant scrutiny
and if performance continues, interest income may be recorded on a cash basis
based on management's judgement as to collectibility of principal.

ALLOWANCE FOR LOAN LOSSES - The allowance for loan losses is established through
provisions for loan losses charged against income. Loans deemed to be
uncollectible are charged against the allowance for loan losses, and subsequent
recoveries, if any, are credited to the allowance.

A factor in estimating the allowance for loan losses is the measurement of
impaired loans. A loan is considered impaired when, based on current information
and events, it is probable that the Corporation will be unable to collect all
amounts due according to the contractual terms of the loan agreement. Under
current accounting standards, the allowance for loan losses related to impaired
loans is based on discounted cash flows using the loan's effective interest rate
or the fair value of the collateral for certain collateral dependent loans.



                                      -5-
<PAGE>

The allowance for loan losses is maintained at a level established by management
to be adequate to absorb estimated potential loan losses. Management's periodic
evaluation of the adequacy of the allowance for loan losses is based on the
Corporation's past loan loss experience, known and inherent risks in the
portfolio, adverse situations that may affect the borrower's ability to repay
(including the timing of future payments), the estimated value of any underlying
collateral, composition of the loan portfolio, current economic conditions, and
other relevant factors. This evaluation is inherently subjective as it requires
material estimates, including the amounts and timing of future cash flows
expected to be received on impaired loans that may be susceptible to significant
change.

In addition, an allowance is provided for possible credit losses on off-balance
sheet credit exposures. The allowance is estimated by management and is
classified in other liabilities.

DERIVATIVES

The Bank has outstanding loan commitments that relate to the origination of
mortgage loans that will be held for resale. Pursuant to Statement of Financial
Accounting Standards (SFAS) No. 133 "Accounting for Derivative Instruments and
Hedging Activities" as amended by SFAS No. 138, "Accounting for Certain
Derivative Instruments and Certain Hedging Activities", and SFAS No. 149
"Amendments to SFAS 133 on Derivative Instruments and Hedging Activities" and
the guidance contained in the Derivatives Implementation Group Statement 133
Implementation Issue No. C 13, the Bank has accounted for such loan commitments
as derivative instruments. The outstanding loan commitments in this category did
not give rise to any losses for the period ended September 30, 2004 and the year
ended December 31, 2003, as the fair market value of each outstanding loan
commitment exceeded the Bank's cost basis in each loan commitment.

PREMISES AND EQUIPMENT

Premises and equipment are stated at cost less accumulated depreciation computed
principally on the straight-line method over the estimated useful lives of the
assets. Maintenance and minor repairs are charged to operations as incurred. The
cost and accumulated depreciation of the premises and equipment retired or sold
are eliminated from the property accounts at the time of retirement or sale, and
the resulting gain or loss is reflected in current operations.

MORTGAGE SERVICING RIGHTS

The Corporation originates and sells real estate loans to investors in the
secondary mortgage market. After the sale, the Corporation retains the right to
service these loans. When originated mortgage loans are sold and servicing is
retained, a servicing asset is capitalized based on relative fair value at the
date of sale. Servicing assets are amortized as an offset to other fees in
proportion to, and over the period of, estimated net servicing income. The
unamortized cost is included in other assets in the accompanying consolidated
balance sheet. The servicing rights are periodically evaluated for impairment
based on their relative fair value.

OTHER REAL ESTATE OWNED

Real estate properties acquired through, or in lieu of, loan foreclosure are
held for sale and are initially recorded at fair value on the date of
foreclosure establishing a new cost basis. After foreclosure, valuations are
periodically performed by management and the real estate is carried at the lower
of carrying amount or fair value less cost to sell and is included in other
assets. Revenues derived from and costs to maintain the assets and subsequent
gains and losses on sales are included in other non-interest income and expense.



                                      -6-
<PAGE>

BANK OWNED LIFE INSURANCE

The Corporation invests in Bank Owned Life Insurance (BOLI). Purchase of BOLI
provides life insurance coverage on certain employees with the Corporation being
owner and primary beneficiary of the policies.

INVESTMENT IN INSURANCE AGENCY

On January 2, 2001, the Corporation acquired a 50% interest in a local insurance
agency, a corporation organized under the laws of the Commonwealth of
Pennsylvania. The income or loss from this investment is accounted for under the
equity method of accounting. The carrying value of this investment as of
September 30, 2004 and December 31, 2003 was $180,498 and $170,296,
respectively, and is carried in other assets in the accompanying consolidated
balance sheets.

INCOME TAXES

The provision for income taxes is based on the results of operations, adjusted
primarily for tax-exempt income. Certain items of income and expense are
reported in different periods for financial reporting and tax return purposes.
Deferred tax assets and liabilities are determined based on the differences
between the consolidated financial statement and income tax bases of assets and
liabilities measured by using the enacted tax rates and laws expected to be in
effect when the timing differences are expected to reverse. Deferred tax expense
or benefit is based on the difference between deferred tax asset or liability
from period to period.

PER SHARE DATA

Statement of Financial Accounting Standards (SFAS) No. 128, "Earnings Per
Share", requires dual presentation of basic and diluted earnings per share.
Basic earnings per share is calculated by dividing net income by the weighted
average number of shares of common stock outstanding at the end of each period.
Diluted earnings per share is calculated by increasing the denominator for the
assumed conversion of all potentially dilutive securities. The Corporation does
not have any securities which have or will have a dilutive effect, accordingly,
basic and diluted per share data are the same.

CASH FLOW INFORMATION

For purposes of reporting consolidated cash flows, cash and cash equivalents
include cash on hand and due from banks, interest-bearing deposits in other
banks and federal funds sold. The Corporation considers cash classified as
interest-bearing deposits with other banks as a cash equivalent because they are
represented by cash accounts essentially on a demand basis. Federal funds are
also included as a cash equivalent because they are generally purchased and sold
for one-day periods.

TRUST ASSETS AND INCOME

Property held by the Corporation in a fiduciary or agency capacity for its
customers is not included in the accompanying consolidated financial statements
because such items are not assets of the Corporation. Trust Department income is
generally recognized on a cash basis and is not materially different than if it
was reported on an accrual basis.



                                      -7-
<PAGE>

SEGMENT REPORTING

The Corporation's banking subsidiary acts as an independent community financial
services provider, and offers traditional banking and related financial services
to individual, business and government customers. Through its branch, internet
banking, telephone and automated teller machine network, the Bank offers a full
array of commercial and retail financial services, including the taking of time,
savings and demand deposits; the making of commercial, consumer and mortgage
loans; and the providing of other financial services. The Bank also performs
personal, corporate, pension and fiduciary services through its Trust Department
as well as offering diverse investment products through its investment center.

Management does not separately allocate expenses, including the cost of funding
loan demand, between the commercial, retail, trust and investment center
operations of the Corporation. As such, discrete financial information is not
available and segment reporting would not be meaningful.

RECENT ACCOUNTING PRONOUNCEMENTS

In November 2002, the Financial Accounting Standards Board (FASB) issued
Interpretation No. 45 (FIN 45), "Guarantor's Accounting and Disclosure
Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of
Others". This Interpretation expands the disclosures to be made by a guarantor
about its obligations under certain guarantees and requires the guarantor to
recognize a liability in its financial statements for the obligation assumed
under a guarantee. In general, FIN 45 applies to contracts of indemnification
agreements that contingently require the guarantor to make payments to the
guaranteed party based on changes in an underlying agreement that is related to
an asset, liability, or equity security of the guaranteed party. Certain
guarantee contracts are excluded from both the disclosure and recognition
requirements of this Interpretation, while other guarantees are subject to just
the disclosure requirements of FIN 45 but not to the recognition provisions. The
disclosure requirements of FIN 45 were effective for the Corporation as of
December 31, 2002 and require disclosure of the nature of the guarantee, the
maximum potential amount of future payments the guarantor could be required to
make under the guarantee, and the current amount of the liability, if any, for
the guarantor's obligations under the guarantee. The recognition requirements of
FIN 45 are applied prospectively to guarantees issued or modified after December
31, 2002. This standard did not have any impact on the Corporation's
consolidated financial condition or results of operations.

In December 2002, the FASB issued Statement of Financial Accounting Standards
(SFAS) No. 148, "Accounting for Stock-Based Compensation - Transition and
Disclosure - an amendment of SFAS No. 123," is generally effective for financial
statements for fiscal years and interim periods beginning after December 31,
2002. The statement amends SFAS No. 123, "Accounting for Stock-Based
Compensation" to provide alternative methods of transition for a voluntary
change to the fair value based method of accounting for stock-based employee
compensation. The statement also amends the disclosure requirements of SFAS No.
123 to require prominent disclosures in both annual and interim financial
statements about the method of accounting for stock-based compensation and the
effect of the method used on reported results. The Corporation does not have any
stock-based compensation, therefore the standard has no impact on the
Corporation's consolidated financial condition or results of operations.



                                      -8-
<PAGE>

In December 2002, the FASB issued Statement of Financial Accounting Standard
(SFAS) No. 149, "Amendments to SFAS 133 on Derivative Instruments and Hedging
Activities" is generally effective for contracts entered into after June 30,
2003. This statement amends and clarifies financial accounting and reporting for
derivative instruments, including certain derivative instruments embedded in
other contracts (collectively referred to as derivatives) and for hedging
activities under SFAS No. 133 "Accounting for Derivative Instruments and Hedging
Activities." The changes in this statement improve financial reporting by
requiring that contracts with comparable characteristics be accounted for
similarly. The changes will result in more consistent reporting of contracts as
either derivatives or hybrid instruments. This standard does not have any impact
on the Corporation's consolidated financial position or results of operations.

In January 2003, the FASB issued FIN 46, which provides guidance on how to
identify a variable interest entity (VIE) and determine when the assets,
liabilities, noncontrolling interests, and results of operations of a VIE are to
be included in an entity's consolidated financial statements. A VIE exists when
either the total equity investment at risk is not sufficient to permit the
entity to finance its activities by itself, or the equity investors lack one of
three characteristics associated with owning a controlling financial interest.
Those characteristics include the direct or indirect ability to make decisions
about an entity's activities through voting rights or similar rights, the
obligations to absorb the expected losses of an entity if they occur, or the
right to receive the expected residual returns of the entity if they occur. This
standard did not have any impact on the Corporation's consolidated financial
positions or results of operations.

In May 2003, the FASB issued Statement of Financial Accounting Standards (SFAS)
No. 150, "Accounting for Certain Financial Instruments with Characteristics of
Both Liabilities and Equity" is generally effective for financial instruments
entered into or modified after May 31, 2003 and for contracts in existence at
the start of the first interim period beginning after June 15, 2003. This
statement establishes new standards for classification, measurement and
disclosure of certain types of financial instruments having characteristics of
both liabilities and equity, including instruments that are mandatory redeemable
and that embody obligations requiring or permitting settlement by transferring
assets or by issuing an entity's own shares. In December 2003, the FASB deferred
for an indefinite period the application of the guidance in SFAS 150 to
noncontrolling interests that are classified as equity in the financial
statements of a subsidiary but would be classified as a liability in the
parent's financial statements under SFAS 150. The deferral is limited to
mandatory redeemable noncontrolling interests associated with finite-lived
subsidiaries. This standard does not have any impact on the Corporation's
consolidated financial position or results of operations.

In December 2003, the Emerging Issues Task Force (EITF) issued No. 03-01 "The
Meaning of Other-Than-Temporary Impairment and its Application to Certain
Investments" is generally effective for fiscal years ending after December 15,
2003, and addresses how to define an "other-than-temporary impairment" as well
as its application to investments classified as either "Available-for-Sale" and
"Held-to-Maturity" under SFAS 115. The EITF requires disclosure of securities in
a continuous unrealized loss position to be stratified based on length of time
those securities were carried in such a position (less than 12 months, and 12
months or more). Additional information is required to be disclosed annually to
include the nature of the investment, the cause of the decline in value and the
evidence considered in reaching the conclusion that the investment is not other
than temporarily impaired. The disclosure was initially required for fiscal
years ending after December 15, 2003, however, in September 2004 the effective
date has been delayed by the FASB. Comparative information for earlier periods
is not required.

ADVERTISING COSTS

It is the Corporation's policy to expense advertising costs in the period in
which they are incurred. Advertising expense for the periods ended September 30,
2004 and September 30, 2003, were approximately $57,388 and $54,238,
respectively.



                                      -9-
<PAGE>

RECLASSIFICATION

Certain amounts in the consolidated financial statements of the prior years have
been reclassified to conform with presentation used in the 2004 consolidated
financial statements. Such reclassifications had no effect on the Corporation's
consolidated financial condition or net income.

NOTE 2 - ALLOWANCE FOR LOAN LOSSES

Changes in the allowance for loan losses for the periods ended September 30,
2004 and September 30, 2003 were as follows:

<Table>
<Caption>
                                                                           (Amounts in thousands)
                                                                       ------------------------------
                                                                           2004              2003
                                                                       ------------      ------------
<S>                                                                    <C>               <C>

Balance, beginning of year                                             $      1,415      $      1,298
Provision charged to operations                                                 110               150
Loans charged-off                                                              (124)              (44)
Recoveries                                                                       24                40
                                                                       ------------      ------------
Balance, September 30                                                  $      1,425      $      1,444
                                                                       ============      ============
</Table>

At September 30, 2004, the recorded investment in loans that are considered to
be impaired as defined by SFAS No. 114 was $77,706. No additional charge to
operations was required to provide for the impaired loans since the total
allowance for loan losses is estimated by management to be adequate to provide
for the loan loss allowance required by SFAS No. 114 along with any other
potential losses.

At September 30, 2004, there were no significant commitments to lend additional
funds with respect to non-accrual and restructured loans.

Non-accrual loans at September 30, 2004 and December 31, 2003 were $1,110,522
and $1,851,686, respectively.

Loans past due 90 days or more and still accruing interest amounted to $273,000
at September 30, 2004.

NOTE 3 - SHORT-TERM BORROWINGS

Federal funds purchased, securities sold under agreements to repurchase, and
Federal Home Loan Bank advances generally represented overnight or less than
30-day borrowings. U.S. Treasury tax and loan notes for collections made by the
Bank were payable on demand.



                                      -10-
<PAGE>

NOTE 4 - LONG-TERM BORROWINGS

Long-term borrowings are comprised of advances from the Federal Home Loan Bank.

NOTE 5 - DEFERRED COMPENSATION PLANS

The Bank has entered into certain non-qualified deferred compensation agreements
with certain executive officers and directors. Expenses related to these
non-qualified deferred compensation plans amounted to $92,419 and $53,072 for
September 30, 2004 and September 30, 2003, respectively.

There were no substantial changes in other plans as disclosed in the 2003 Annual
Report.

NOTE 6 - STOCKHOLDERS' EQUITY

Changes in stockholders' equity for the period ended September 30, 2004 were as
follows:

<TABLE>
<CAPTION>
                                                           (Amounts in Thousands, Except Common Share Data)
                                                            ----------------------------------------------
                                                                                                Accumulated
                                                                                                   Other
                                                                                               Comprehensive
                                     Common      Common               Comprehensive  Retained      Income    Treasury
                                     Shares       Stock      Surplus      Income     Earnings      (Loss)      Stock        Total
                                   ----------   ---------   --------- ------------- ---------- ------------- ----------   ---------
<S>                                <C>          <C>         <C>         <C>         <C>        <C>           <C>          <C>
Balance at January 1, 2004          1,276,445   $   1,595   $   3,635               $   21,997   $      376  $       --   $  27,603
Comprehensive Income:
  Net income                                                            $    1,597       1,597                                1,597

  Change in unrealized gain (loss)
      on investment securities
      available-for-sale net of
      reclassification adjustment
      and tax effects                                                          (52)                     (52)                    (52)
                                                                        ----------
               TOTAL COMPREHENSIVE
                            INCOME                                      $    1,545
                                                                        ==========

Issuance of 5,548 shares of
 common stock under dividend
 reinvestment and stock
 purchase plans                         5,548           7         153                       --           --          --         160
Purchase of 10,000 shares of
 treasury stock                            --          --          --                       --           --        (288)       (288)
Retirement of 10,000 shares of
 treasury stock                       (10,000)        (12)       (276)                      --           --         288          --
Cash dividends $.52 per share              --          --          --                     (663)          --          --        (663)
                                   ----------   ---------   ---------               ----------   ----------  ----------   ---------
Balance at September 30, 2004       1,271,993   $   1,590   $   3,512               $   22,931   $      324  $       --   $  28,357
                                   ----------   ---------   ---------               ----------   ----------  ----------   ---------
</TABLE>

                                      -11-
<PAGE>

NOTE 7 - FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK AND CONCENTRATIONS OF
CREDIT RISK

The Corporation is a party to financial instruments with off-balance sheet risk
in the normal course of business to meet the financing needs of its customers.
These consolidated financial instruments include commitments to extend credit,
standby letters of credit and commercial letters of credit. Those instruments
involve, to varying degrees, elements of credit and interest rate risk in excess
of the amount recognized in the consolidated balance sheets. The contract or
notional amounts of those instruments reflect the extent of involvement the
Corporation has in particular classes of financial instruments. The Corporation
does not engage in trading activities with respect to any of its financial
instruments with off-balance sheet risk.

The Corporation may require collateral or other security to support financial
instruments with off-balance sheet credit risk. The contract or notional amounts
at September 30, 2004 and December 31, 2003 were as follows:

<TABLE>
<CAPTION>
                                                                           (Amounts in Thousands)
                                                                       ------------------------------
                                                                        September          December
                                                                         30, 2004          31, 2003
                                                                       ------------      ------------
<S>                                                                    <C>               <C>
Financial instruments whose contract amounts represent credit risk:
       Commitments to extend credit                                    $     15,682      $     13,106
       Financial standby letters of credit                                    1,669             1,813
       Performance standby letters of credit                                    829               843
       Dealer floor plans                                                     2,165             1,412
</TABLE>

Commitments to extend credit are agreements to lend to a customer as long as
there is no violation of any condition established in the contract. Commitments
generally have fixed expiration dates or other termination clauses and may
require payment of a fee. Because many of the commitments are expected to expire
without being drawn upon, the total commitment amounts do not necessarily
represent future cash requirements. The Corporation evaluates each customer's
creditworthiness on a case-by-case basis. The amount of collateral obtained, if
deemed necessary by the Corporation upon extension of credit, is based on
management's credit evaluation of the counter-party. Collateral held varies but
may include accounts receivable, inventory, property, plant, equipment and
income-producing commercial properties.

Standby letters of credit and commercial letters of credit are conditional
commitments issued by the Corporation to guarantee the performance of a customer
to a third party. The credit risk involved in issuing letters of credit is
essentially the same as that involved in extending loan facilities to customers.
The Corporation holds collateral supporting those commitments for which
collateral is deemed necessary.

The Corporation's exposure to credit loss in the event of nonperformance by the
other party to the financial instrument for commitments to extend credit and
letters of credit is represented by the contractual notional amount of those
instruments. The Corporation uses the same credit policies in making commitments
and conditional obligations, as it does for on-balance sheet instruments.



                                      -12-
<PAGE>

The Corporation granted commercial, consumer and residential loans to customers
within Pennsylvania. Of the total loan portfolio at September 30, 2004, 80.1%
was for real estate loans, principally residential. It was the opinion of
management that the high concentration did not pose an adverse credit risk.
Further, it was management's opinion that the remainder of the loan portfolio
was balanced and diversified to the extent necessary to avoid any significant
concentration of credit.

NOTE 8 - MANAGEMENT'S ASSERTIONS AND COMMENTS REQUIRED TO BE PROVIDED WITH FORM
         10Q FILING

In management's opinion, the consolidated interim financial statements reflect
fair presentation of the consolidated financial position of CCFNB Bancorp, Inc.
and Subsidiary, and the results of their operations and their cash flows for the
interim periods presented. Further, the consolidated interim financial
statements are unaudited, however they reflect all adjustments, which are in the
opinion of management, necessary to present fairly the consolidated financial
condition and consolidated results of operations and cash flows for the interim
periods presented and that all such adjustments to the consolidated financial
statements are of a normal recurring nature.

The results of operations for the nine-month period ended September 30, 2004,
are not necessarily indicative of the results to be expected for the full year.

These consolidated interim financial statements have been prepared in accordance
with requirements of Form 10Q and therefore do not include all disclosures
normally required by accounting principles generally accepted in the United
States of America applicable to financial institutions as included with
consolidated financial statements included in the Corporation's annual Form 10K
filing. The reader of these consolidated interim financial statements may wish
to refer to the Corporation's annual report or Form 10K for the period ended
December 31, 2003, filed with the Securities and Exchange Commission.



                                      -13-
<PAGE>

             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


Board of Directors and Stockholders of CCFNB Bancorp, Inc.:


We have reviewed the accompanying consolidated balance sheet of CCFNB Bancorp,
Inc. and Subsidiary as of September 30, 2004, and the related consolidated
statements of income and cash flows for the three and nine-month periods ended
September 30, 2004 and 2003. These consolidated interim financial statements are
the responsibility of the management of CCFNB Bancorp, Inc. and Subsidiary.

We conducted our reviews in accordance with the standards of the Public Company
Accounting Oversight Board (United States). A review of interim financial
information consists principally of applying analytical procedures and making
inquiries of persons responsible for financial and accounting matters. It is
substantially less in scope than an audit conducted in accordance with the
standards of the Public Company Accounting Oversight Board (United States), the
objective of which is the expression of an opinion regarding the financial
statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our reviews, we are not aware of any material modifications that should
be made to the consolidated interim financial statements referred to above for
them to be in conformity with accounting principles generally accepted in the
United States of America.

We have previously audited, in accordance with the standards of the Public
Company Accounting Oversight Board (United States), the consolidated balance
sheet of CCFNB Bancorp, Inc. and Subsidiary as of December 31, 2003, and the
related consolidated statements of income, stockholders' equity, and cash flows
for the year then ended (not presented herein); and in our report dated January
13, 2004, we expressed an unqualified opinion on those consolidated financial
statements. In our opinion, the information set forth in the accompanying
consolidated balance sheet as of December 31, 2003, is fairly stated, in all
material respects, in relation to the consolidated balance sheet from which it
has been derived.



/s/ J.H. WILLIAMS & CO., LLP


J.H. Williams & Co., LLP
Kingston, Pennsylvania
October 19, 2004





                                      -14-
<PAGE>

                               CCFNB BANCORP, INC.
                                    FORM 10-Q
                      FOR THE QUARTER ENDED SEPTEMBER 2004


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

Consolidated Summary of Operations
(Dollars in Thousands, except for per share data)

<Table>
<Caption>
                                    At and For the Nine
                                           Months                                   At and For the Years
                                    Ended September 30,                              Ended December 31,
                                 ------------------------    ------------------------------------------------------------------
                                    2004          2003          2003          2002          2001          2000          1999
                                 ----------    ----------    ----------    ----------    ----------    ----------    ----------
<S>                              <C>           <C>           <C>           <C>           <C>           <C>           <C>
Income and Expense:
    Interest income              $    8,049    $    8,474    $   11,221    $   12,780    $   13,720    $   13,552    $   12,669
    Interest expense                  2,724         3,407         4,366         5,741         6,924         6,859         6,099
                                 ----------    ----------    ----------    ----------    ----------    ----------    ----------
    Net interest income               5,325         5,067         6,855         7,039         6,796         6,693         6,570
    Loan loss provision                 110           150           200           309           163            54            78
                                 ----------    ----------    ----------    ----------    ----------    ----------    ----------
    Net interest income after
      loan loss Provision             5,215         4,917         6,655         6,730         6,633         6,639         6,492
    Non-interest income               1,118         1,134         1,508         1,210         1,149         1,053         1,050
    Non-interest expense              4,312         4,070         5,409         5,479         5,104         4,967         4,818
                                 ----------    ----------    ----------    ----------    ----------    ----------    ----------
    Income before income taxes        2,021         1,981         2,754         2,461         2,678         2,725         2,724
    Income taxes                        424           420           591           539           621           671           685
                                 ----------    ----------    ----------    ----------    ----------    ----------    ----------
    Net income                   $    1.597    $    1.561    $    2,163    $    1,922    $    2,057    $    2,054    $    2,039
                                 ==========    ==========    ==========    ==========    ==========    ==========    ==========
Per Share: (1)
    Net income                   $     1.25    $     1.22    $     1.69    $     1.47    $     1.54    $     1.51    $     1.48
    Cash dividends paid                 .52           .49           .66           .63           .59           .56           .51
    Average shares outstanding    1,275,743     1,283,475     1,281,265     1,309,084     1,338,007     1,355,624     1,375,572
Average Balance Sheet:
    Loans                        $  148,367    $  150,560    $  149,485    $  147,545    $  139,219    $  134,325    $  123,185
    Investments                      63,633        59,248        58,152        54,197        50,593        47,003        49,827
    Other earning assets             17,501         6,785         8,036         5,309         6,569           219         1,638
    Total assets                    233,108       231,173       230,975       223,476       208,630       196,727       186,597
    Deposits                        171,657       172,596       171,956       150,883       149,601       139,774       138,963
    Other interest-bearing
      liabilities                    32,193        30,246        30,473        29,356        31.629        31,203        23,458
    Stockholders' equity             27,980        26,973        27,223        26,615        25,890        23,910        22,874
Balance Sheet Data:
    Loans                        $  149,103    $  149,339    $  147,631    $  151,338    $  142,990    $  137,360    $  134,423
    Investments                      64,490        64,969        62,775        53,528        57,121        47,311        49,104
    Other earning assets              4,052         3,502         6,003        10,068        63,312         4,814         1,343
    Total assets                    233,302       233,314       232,914       229,032       214,238       203,054       196,122
    Deposits                        171,528       173,066       171,786       172,127       142,990       143,169       138,606
    Other interest-bearing
      liabilities                    32,061        31,870        32,325        28,621        31,384        33,477        33,224
    Stockholders' equity             28,357        27,106        27,603        26,840        26,042        25,050        23,047
Ratios: (2)
    Return on average assets            .98%          .96%          .94%          .86%          .99%         1.04%         1.09%
    Return on average equity           7.61%         7.72%         7.95%         7.22%         7.92%         8.59%         8.91%
    Dividend payout ratio             41.52%        40.17%        39.02%        42.86%        38.31%        36.89%        34.09%
    Average equity to average
      assets ratio                    12.00%        11.67%        11.79%        11.77%        12.16%        12.34%        11.75%
</Table>

(1)      Per share data has been calculated on the weighted average number of
         shares outstanding.

(2)      The ratios for the nine month period ending September 30, 2004 and 2003
         are annualized.

CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS

This Form 10-Q, both in the MD & A and elsewhere, contains forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995. Such statements are not historical facts and include expressions about our
confidence and strategies and our expectations about new and existing programs
and products, relationships, opportunities, technology and market conditions.
These statements may be identified by such forward-looking terminology as
"expect," "look," "believe," "anticipate," "may," "will," or similar statements
or variations of such terms. Such forward-looking statements involve certain
risks and uncertainties. These include, but are not limited to, the direction of
interest rates, continued levels of loan quality and origination volume,
continued relationships with major customers, and sources for loans, as well as
the effects of economic conditions and legal and regulatory barriers and
structure. Actual results may differ materially from such forward-looking
statements. We assume no obligation for updating any such forward-looking
statement at any time. Our consolidated financial condition and results of
operations are essentially those of our wholly-owned subsidiary bank, Columbia
County Farmers National Bank. Therefore, our discussion and analysis that
follows is primarily centered on the performance of this bank.



                                       15
<PAGE>

EARNINGS SUMMARY

Net income for the nine months ended September 30, 2004 was $1,597 thousand or
$1.25 per basic and diluted share. These results compare with net income of
$1,561 thousand, or $1.22 per basic and diluted share for the same period in
2003. Annualized return on average equity decreased to 7.61 percent from 7.72
percent, while the annualized return on average assets increased to .98 percent
from .96 percent, for the nine months ended September 30, 2004 and 2003,
respectively.

Net interest income continues to be the largest source of our operating income.
Net interest income on a tax equivalent basis increased to $5.6 million at
September 30, 2004, compared with $5.4 million for the nine months ended
September 30, 2003. The increase in net interest income is primarily due to the
decreased interest rates on deposits and short term borrowings. The tax
equalivized interest margin increased to 3.41 percent for the nine months ended
September 30, 2004, compared to 3.32 percent for the nine months ended September
30, 2003.

Average interest earning assets increased $.4 million for the nine months ended
September 30, 2004 over the same period in 2003. Average loans decreased $2.2
million, average investments increased $4.4 million or 7.4 percent and average
federal funds sold and interest-bearing deposits with other financial
institutions decreased 1.8 million for this nine month period.

Average interest bearing liabilities for the nine months ended September 30,
2004 decreased $.4 million from the same period in 2003. Average short-term
borrowings were $20.9 million at September 30, 2004 and $18.9 million at
September 30, 2003. Long-term debt, which includes primarily FHLB advances,
remained at $11.3 million on September 30, 2004 and September 30, 2003. Average
demand deposits increased $1.4 million from 2003 balances.

The average interest rate on total interest earning assets was 5.32 percent for
the nine months ended September 30, 2004, compared with 5.22 percent for the
nine months ended September 30, 2003. The average interest rate for loans
decreased 19 basis points to 6.07 percent at September 30, 2004 compared to 6.26
percent September 30, 2003. Interest-bearing deposits with other Financial
Institutions interest rates decreased 5 basis points to 1.10 percent from 1.15
percent at September 30, 2004 and September 30, 2003, respectively. Average
rates on interest bearing deposits decreased by 56 basis points to 1.73 percent
from 2.29 percent one year ago. Average interest rates also decreased on total
interest bearing liabilities by 48 basis points to 1.95 percent from 2.43
percent. The reason for these decreases on interest bearing liabilities was
primarily attributed to the decreasing rates on all deposit liabilities.

NET INTEREST INCOME

Net interest income increased to $5.3 million for the nine months ended
September 30, 2004 compared to $5.1 million for the same period in 2003.

The following table reflects the components of net interest income for each of
the nine months ended September 30, 2004 and 2003.

           ANALYSIS OF AVERAGE ASSETS, LIABILITIES AND CAPITAL EQUITY
                                       AND
                  NET INTEREST INCOME ON A TAX EQUIVALENT BASIS

AVERAGE BALANCE SHEET AND RATE ANALYSIS
(Dollars in Thousands)

<Table>
<Caption>
                                                           Nine Months Ended September 30, 2004 and 2003
                                                        Interest        Average                       Interest        Average
                                          Average       Income /        Yield /         Average       Income /        Yield /
                                          Balance        Expense         Rate           Balance        Expense         Rate
                                        -----------    -----------    -----------     -----------    -----------    -----------
                                            (1)            (2)                             (1)           (2)
<S>                                     <C>            <C>            <C>             <C>            <C>            <C>
ASSETS:
Interest-bearing deposits with
  other financial institutions          $     4,498    $        37           1.10%    $     4,745    $        41           1.15%
Investment securities (3)                    63,633          1,523           3.91%         59,248          1,401           3.71%
Federal funds sold                              529              7           1.76%          2,040             40           2.61%
Loans                                       148,367          6,482           6.07%        150,560          6,992           6.26%
                                        -----------    -----------                    -----------    -----------

Total interest earning assets           $   217,027    $     8,049           5.32%    $   216,593    $     8,474           5.22%
                                        -----------    -----------                    -----------    -----------

Reserve for loan losses                      (1,420)                                       (1,371)
Cash and due from banks                       5,687                                         5,403
Other assets                                 11,814                                        10,548
                                        -----------                                   -----------

Total assets                            $   233,108                                   $   231,173
                                        -----------                                   -----------

</Table>

                                       16
<PAGE>


<Table>
<S>                                    <C>           <C>            <C>            <C>            <C>            <C>
LIABILITIES AND CAPITAL:
Interest bearing deposits              $   154,356   $     2,008           1.73%   $   156,731    $     2,690          2.29%
Short-term borrowings                       20,862           206           1.32%        18,903            209          1.49%
Long-term borrowings                        11,331           510           6.00%        11,343            508          5.97%
                                       -----------   -----------                   -----------    -----------

Total interest-bearing liabilities     $   186,549   $     2,724           1.95%   $   186,977    $     3,407          2.43%
                                       -----------                                 -----------    -----------

Demand deposits                        $    17,301                                 $    15,865
Other liabilities                            1,278                                       1,358
Stockholders' equity                        27,980                                      26,973
                                       -----------                                 -----------

Total liabilities and capital          $   233,108                                 $   231,173
                                       -----------                                 -----------

NET INTEREST INCOME /                                $     5,328           3.27%                  $     5,067          3.12%
  NET INTEREST MARGIN (4)

TAX EQUIVALENT NET INTEREST INCOME /                 $     5,642           3.41%                  $     5,393          3.32%
  NET INTEREST MARGIN (5)
</Table>

(1)      Average volume information was computed using daily averages.

(2)      Interest on loans includes fee income.

(3)      Yield on tax-exempt obligations has been computed on a tax-equivalent
         basis.

(4)      Net interest margin is computed by dividing net interest income by
         total interest earning assets.

(5)      Interest and yield are presented on a tax-equivalent basis using 34
         percent for 2004 and 2003.

The following table demonstrates the relative impact on net interest income of
changes in volume of interest earnings assets and interest bearing liabilities
and changes in rates earned and paid by us on such assets and liabilities.

             CHANGE IN NET INTEREST INCOME ON A TAX EQUIVALENT BASIS

<Table>
<Caption>
                                                                             Nine Months Ended September 30, 2004
                                                                                      Compared with 2003
                                                                                    Increase (Decrease)(2)
                                                                          Volume             Rate              Total
                                                                       ------------      ------------      ------------
                                                                                        (In thousands)
<S>                                                                   <C>               <C>               <C>
Interest income:
         Loans (1)                                                     $       (137)     $       (286)     $       (423)
         Investments                                                            163               118               281
         Federal funds sold and other short-term investments                    (28)              (28)              (56)

Interest expense:
         Deposits                                                               (54)             (878)             (932)
         Short-term borrowings                                                   29               (32)               (3)
         Long term debt                                                          (1)                3                 2

Net:                                                                   $         24             $ 711             $ 735
</Table>

(1)      Interest income is adjusted to a tax equivalent basis using a 34
         percent tax rate.

(2)      Variances resulting from a combination of changes in volume and rates
         are allocated to the categories in proportion to the absolute dollar
         amounts of the change in each category.

The outstanding balance of net loans at September 30, 2004 was $147.7 million
compared to $146.2 million at December 31, 2003.

Interest income from investment securities increased 7.1 percent from $1.4
million for the nine months ended September 30, 2003 to $1.5 million for the
nine months ended September 30, 2004. The average balance of investment
securities for the nine months ended September 30, 2004 increased 7.4 percent to
$63.6 million, compared to the $59.2 million for the same period of 2003.

Total interest expense decreased $.7 million or 20.6 percent for the first nine
months of 2004 as compared to the first nine months of 2003. The cost of
interest bearing liabilities decreased on an average yield basis from 2.43
percent through September 2003 compared to 1.95 percent through September 2004.
The average yield on interest earning assets increased from 5.22 percent to 5.32
percent through September 2003 and 2004, respectively.

Average short-term borrowings increased $2 million from $18.9 million at
September 30, 2003 to $20.9 million at September 30, 2004.

Long-term borrowings from Federal Home Loan Bank remained constant at an average
$11.3 million at September 30, 2004 and 2003.



                                       17
<PAGE>

NON-INTEREST INCOME

The following table presents the components of non-interest income for the nine
months ended September 30, 2004 and 2003.

<Table>
<Caption>
                                                                              Nine Months Ended
                                                                                September 30,
                                                                               (In thousands)
                                                                       ------------------------------
                                                                           2004              2003
                                                                       ------------      ------------
<S>                                                                    <C>               <C>
Service charges and fees                                               $        582      $        507
Trust Department income                                                         109                95
 Investment Securities Gain -net                                                  3                 8
Gain on Sale of Loans                                                            12                92
Gain on Sale of Other Real Estate Owned                                           0                12
Gain on Cash Surrender Value Life Insurance                                     191               165

Mortgage Servicing Rights, net of amortization                                  (12)               72
Third party brokerage income                                                     90                74
Other                                                                           143               109
                                                                       ------------      ------------
         Total                                                         $      1,118      $      1,134
                                                                       ------------      ------------
</Table>

Non-interest income continues to represent a considerable source of our income.
We are committed to increasing non-interest income. Increases will be derived
from our existing sources of non-interest income and any new opportunities that
may develop.

For the nine months ended September 30, 2004, total non-interest income
decreased $16 thousand to $1,118 thousand or 1.4 percent, compared to $1,134
thousand for the nine months period ended September 30, 2003.

Service charges and fees increased $75 thousand from $507 thousand at September
30, 2003 to $582 thousand or 14.8 percent at September 30, 2004. Some of this
increase can be attributed to a new overdraft privilege product that was
introduced in May 2004. Trust Department income increased from $95 thousand at
September 30, 2003 to $109 thousand or 14.7 percent at September 30 2004.
Investment securities gains were $3 thousand at September 30, 2004 and $8
thousand at September 30, 2003, a decrease of $5 thousand. Sale of Loans
generated $12 thousand in income through September 30, 2004 compared to $92
thousand for the same period of 2003. Gain on Sale of Other Real Estate Owned
realized income of $0 at September 30, 2004 compared to $12 thousand for the
nine months ended September 30, 2003. Bank Owned Life Insurance gain in Cash
Surrender Value was $191 thousand at September 30, 2004 compared to $165
thousand at September 30, 2003. Third party brokerage income reflected a $16
thousand increase or 21.6 percent comparing September 30, 2004 to September 30,
2003.

Other non-interest income increased from $109 thousand at September 30, 2003 to
$143 thousand or 31.2 percent at September 30, 2004.

NON-INTEREST EXPENSE

The following table presents the components of non-interest expense for the nine
months ended September 30, 2004 and 2003.

<Table>
<Caption>
                                                                              Nine Months Ended
                                                                                September 30,

                                                                           2004              2003
                                                                       ------------      ------------
                                                                           (Dollars in Thousands)
<S>                                                                    <C>               <C>
Salaries and  wages                                                    $      1,712      $      1,647
Employee benefits                                                               598               585
Net occupancy expense                                                           294               290
Furniture and equipment expense                                                 351               357
State shares tax                                                                212               206
Other expense                                                                 1,145               985
                                                                       ------------      ------------

         Total                                                         $      4,312      $      4,070
                                                                       ------------      ------------
</Table>

Non-interest expense increased to $4.3 million at September 30, 2004 compared to
$4.1 million at September 30, 2003.

Generally, non-interest expense accounts for the cost of maintaining facilities;
providing salaries and benefits to employees; and paying for insurance,
supplies, advertising, data processing services, taxes and other related
expenses. Some of the costs and expenses are variable while others are fixed. To
the extent possible, we utilize budgets and related measures to control variable
expenses.

Salaries increased 3.9 percent at September 30, 2004 compared to September 30,
2003. A 2.2 percent increase was reflected in employee benefits from $585
thousand at September 30, 2003, to $598 thousand at September 30, 2004.
Increased cost of health coverage accounted for a significant part of the
overall increase in employee benefits.

Pennsylvania Bank Shares Tax increased 2.9 percent from $206 thousand at
September 30, 2003 compared to $212 thousand at September 30, 2004.

Other expenses increased 16.2 percent, or $160 thousand, from $985 thousand at
September 30, 2003 to $1,145 thousand at September 30, 2004. The largest
increases were in Officers Deferred Compensation with a $27 thousand increase;
Donations with a $39 thousand increase, the result of a State enacted tax credit
available against Pennsylvania Shares Tax in 2005 and 2006; and telephone and
data processing expenses associated with the installation of high speed data
lines to all offices at $19 thousand.



                                       18
<PAGE>

INCOME TAXES

Income tax expense as a percentage of pre-tax income was 21.0 percent for the
nine months ended September 30, 2004 compared with 21.2 percent for the same
period in 2003. The effective tax rate for 2004 is expected to approximate 34
percent.

ASSET / LIABILITY MANAGEMENT

INTEREST RATE SENSITIVITY

Our success is largely dependent upon our ability to manage interest rate risk.
Interest rate risk can be defined as the exposure of our net interest income to
the movement in interest rates. Our interest rate risk management is the
responsibility of the Asset / Liability Management Committee ("ALCO"), which
reports to the Board of Directors. ALCO establishes policies that monitor and
coordinate our sources, uses and pricing of funds as well as interest-earning
asset pricing and volume.

We use a simulation model to analyze net interest income sensitivity to
movements in interest rates. The simulation model projects net interest income
based on various interest rate scenarios over a 12 and 24 month period. The
model is based on the actual maturity and repricing characteristics of rate
sensitive assets and liabilities. The model incorporates assumptions regarding
the impact of changing interest rates on the prepayment rates of certain assets
and liabilities. In the current stagnant interest rate environment, our net
interest income is not expected to change materially.

LIQUIDITY

Our cash requirements consist primarily of dividends to shareholders. This cash
need is routinely satisfied by dividends collected from the bank along with cash
and investments owned. Projected cash flows from this source are expected to be
adequate to pay dividends, given the current capital levels and current
profitable operations of the bank. In addition, we may repurchase shares of our
outstanding common stock for benefit plans and other corporate purposes. The
cash required for a purchase of shares can be met by using our own funds,
dividends received from the bank, and borrowed funds.

As of September 30, 2004, we had $64.5 million of securities available for sale
recorded at their fair value, compared with $62.8 million at December 31, 2003.
As of September 30, 2004, the investment securities available for sale had an
unrealized gain of $324 thousand, net of deferred taxes, compared with an
unrealized gain of 376 thousand, net of deferred taxes, at December 31, 2003.
These securities are not considered trading account securities which may be sold
on a continuous basis, but rather are securities which may be sold to meet our
various liquidity and interest rate requirements.

In accordance with disclosures required by EITF NO. 03-1, the summary below
shows the gross unrealized losses and fair value, aggregated by investment
category that individual securities have been in a continuous unrealized loss
position for less than or more than 12 months as of September 30, 2004.

<Table>
<Caption>
                                                    12 months                        Or more                          Total
                                    Less than      Unrealized       12 months      Unrealized                      Unrealized
Description of Security            Fair Value          Loss        Fair Value          Loss        Fair Value          Loss
-----------------------            -----------     -----------     -----------     -----------     -----------     -----------
<S>                                <C>             <C>             <C>             <C>             <C>             <C>

Obligations of U. S.
Government Corporations and
  Agencies
Mortgage Backed                    $12,930,088     $    89,647     $ 6,378,459     $    88,991     $19,308,547     $   178,638
Other                                7,209,063          40,938               0               0       7,209,063          40,938
Obligations of state and
  political
Subdivisions                           323,040             204               0               0         323,040             204
Marketable Equity Securities            80,320             151          88,262          10,202         168,582          10,353
                                   -----------     -----------     -----------     -----------     -----------     -----------
Total                              $20,542,511     $   130,940     $ 6,466,721     $    99,193     $27,009,232     $   230,133
                                   -----------     -----------     -----------     -----------     -----------     -----------
</Table>

The Corporation invests in various forms of agency debt including mortgage
backed securities and callable agency debt. The fair market value of these
securities is influenced by market interest rates, prepayment speeds on mortgage
securities, bid to offer spreads in the market place and credit premiums for
various types of agency debt. These factors change continuously and therefore
the market value of these securities may be higher or lower than the
Corporations carrying value at any measurement date.

The Corporation's marketable equity securities represent common stock positions
in various financial institutions. The fair market value of these equities tends
to fluctuate with the overall equity markets as well as the trends specific to
each institution.

The Corporation has both the intent and ability to hold the securities contained
in the previous table for a time necessary to recover the cost.

NON-PERFORMING ASSETS

Shown below is a summary of past due and non-accrual loans:

<Table>
<Caption>
                                                                           (Dollars in thousands)
                                                                       September 30,     December 31,
                                                                           2004              2003
                                                                       ------------      ------------
<S>                                                                    <C>               <C>
Past due and non-accrual:
         Days 30 - 89                                                  $        809      $        585
         Days 90 plus                                                           273               269
         Non-accrual                                                          1,111             1,852
                                                                       ------------      ------------
  Total                                                                $      2,193      $      2,706
                                                                       ------------      ------------
</Table>



                                       19
<PAGE>

Past due and non-accrual loans decreased $.5 million from $2.7 million at
December 31, 2003 to $2.2 million at September 30, 2004. The loan delinquency
expressed as a ratio to total loans was 1.4% at September 30, 2004 and 1.8% at
December 31, 2003. Subsequently, one non-accrual loan was paid off in October
2004 totaling $360 thousand, leaving a balance of $751 thousand in non-accrual
loans at October 31, 2004.

Any loans classified for regulatory purposes as loss, doubtful, substandard, or
special mention that have not been disclosed under Industry Guide 3 do not (i)
represent or result from trends or uncertainties which we reasonably expect will
materially impact future operating results, liquidity, or capital resources, or
(ii) represent material credits about which we are aware of any information
which causes us to have serious doubts as to the ability of such borrowers to
comply with the loan repayment terms.

We adhere to principles provided by Financial Accounting Standards Board
Statement No. 114, "Accounting by Creditors for Impairment of a Loan" - Refer to
Note 2 above for other details.


The following analysis provides a schedule of loan maturities / interest rate
sensitivities. This schedule presents a repricing and maturity analysis as
required by the FFIEC:

<Table>
<Caption>
                                                                                          (Dollars in
                                                                                           Thousands)
               MATURITY AND REPRICING DATA FOR LOANS AND LEASES                       September 30, 2004

<S>                                                                                   <C>
Closed-end loans secured by first liens and 1-4 family residential properties
  with a remaining maturity or repricing frequency of:
         (1) Three months or less                                                        $       3,313
         (2) Over three months through 12 months                                                12,232
         (3) Over one year through three years                                                  25,453
         (4) Over three years through five years                                                 7,432
         (5) Over five years through 15 years                                                   18,230
         (6) Over 15 years                                                                         339
All loans and leases other than closed-end loans secured by first liens on 1-4
  family residential properties with a remaining maturity or repricing frequency
  of:
         (1) Three months or less                                                               24,617
         (2) Over three months through 12 months                                                13,285
         (3) Over one year through three years                                                  17,356
         (4) Over three years through five years                                                14,611
         (5) Over five years through 15 years                                                   10,677
         (6) Over 15 years                                                                         494
                                                                                         -------------
                  Sub-total                                                              $     148,039
Add: non-accrual loans not included above                                                        1,111
Less: unearned income                                                                              (47)
                                                                                         -------------

                  Total Loans and Leases                                                 $     149,103
</Table>

ALLOWANCE FOR LOAN LOSSES

The allowance for loan losses reflected a balance of $1.4 million at September
30, 2004 and December 31, 2003. The allowance is believed adequate for possible
loan losses in the future.

The provision for loan losses was $110 thousand for the first nine months of
2004 compared to $150 thousand for the first nine months of 2003.

Because our loan portfolio contains a significant number of commercial loans
with relatively large balances the deterioration of one or several of these
loans may result in a possible significant increase in non-performing loans. An
increase in non-performing loans could result in a loss of interest income,
higher carrying costs, and an increase in the provision for loan losses and loan
charge-offs.

We maintain an allowance for loan losses to absorb any loan losses based on our
historical experience, an evaluation of economic conditions, and regular reviews
of delinquencies and loan portfolio quality. In evaluating our allowance for
loan losses, we segment our loans into the following categories:

         o        Commercial (including investment property mortgages),

         o        Residential mortgages, and

         o        Consumer.

We evaluate some loans as a homogeneous group and others on an individual basis.
Commercial loans with balances exceeding $250 thousand are reviewed
individually. After our evaluation of these loans, we determine the required
allowance for loan losses based upon the following considerations:

         o        Historical loss levels,

         o        Prevailing economic conditions,

         o        Delinquency trends,

         o        Changes in the nature and volume of the portfolio,

         o        Concentrations of credit risk, and

         o        Changes in loan policies or underwriting standards.

Management and the Board of Directors review the adequacy of the reserve on a
quarterly basis and adjustments, if needed, are made accordingly.


                                       20
<PAGE>

<Table>
<Caption>
                                                                                        For the Three Months
                                                                                        Ending September 30,
Amounts in thousands                                                                  2004               2003
--------------------                                                              ------------       ------------
<S>                                                                               <C>                <C>
Average loans outstanding:                                                        $    148,367       $    150,560
Total loans at end of period                                                           149,103            149,783

         Balance at beginning of period                                                  1,415              1,298
         Total charge-offs                                                         (124)               (44)
          Total recoveries                                                                  24                 39
          Net charge-offs                                                                 (100)                (5)
          Provision for loan losses                                                        110                150
 Balance at end of period                                                         $      1,425       $      1,443
                                                                                  ------------       ------------

Net charge-offs as a percent of average loans outstanding during period                    .07%               .00%
Allowance for loan losses as a percent of total loans                                      .96%               .96%
</Table>

The allowance for loan losses is based on our evaluation of the allowance for
loan losses in relation to the credit risk inherent in the loan portfolio. In
establishing the amount of the provision required, management considers a
variety of factors, including but not limited to, general economic conditions,
volumes of various types of loans, collateral adequacy and potential losses from
significant borrowers. On a monthly basis, the Board of Directors and the bank's
Credit Administration Committee review information regarding specific loans and
the total loan portfolio in general in order to determine the amount to be
charged to the provision for loan losses.

CAPITAL ADEQUACY

A major strength of any financial institution is a strong capital position. This
capital is very critical as it must provide growth, dividend payments to
shareholders, and absorption of unforeseen losses. Our federal regulators
provide standards that must be met. These standards measure "risk-adjusted"
assets against different categories of capital. The "risk-adjusted" assets
reflect off balance sheet items, such as commitments to make loans, and also
place balance sheet assets on a "risk" basis for collectibility. The adjusted
assets are measured against the standards of Tier I Capital and Total Qualifying
Capital. Tier I Capital is common shareholders' equity. Total Qualifying Capital
includes so-called Tier II Capital which is common shareholders' equity and the
allowance for loan and lease losses. The allowance for loan and lease losses
must be lower than or equal to common shareholders' equity to be eligible for
Total Qualifying Capital.

We exceed all minimum capital requirements as reflected in the following table:

<Table>
<Caption>
                                                            September 30, 2004                   December 31, 2003
                                                       -----------------------------       ------------------------------
                                                                           Minimum                             Minimum
                                                        Calculated         Standard         Calculated         Standard
                                                          Ratios            Ratios            Ratios            Ratios
                                                       ------------      ------------      ------------      ------------
<S>                                                    <C>               <C>               <C>               <C>
Risk Based Ratios:
Tier I Capital to risk-weighted assets                        18.37%             4.00%            19.02%             4.00%
Total Qualifying Capital to risk-weighted assets              19.37%             8.00%            20.08%             8.00%
</Table>

Additionally, certain other ratios also provide capital analysis as follows:

<Table>
<Caption>
                                                                       September 30,     December 31,
                                                                           2004              2003
<S>                                                                    <C>               <C>

Tier I Capital to average assets                                              12.03%            11.59%
</Table>

We believe that the bank's current capital position and liquidity positions are
strong and that its capital position is adequate to support its operations.

Book value per share amounted to $21.71 at September 30, 2004, compared with
$21.63 per share at December 31, 2003.

Cash dividends declared amounted to $.52 per share, for the nine months ended
September 30, 2004, equivalent to a dividend payout ratio of 41.52 percent,
compared with 40.17 percent for the same period in 2003. Our Board of Directors
continues to believe that cash dividends are an important component of
shareholder value and that, at the bank's current level of performance and
capital, we expect to continue our current dividend policy of a quarterly cash
distribution of earnings to our shareholders.

CONTROLS AND PROCEDURES

EVALUATION OF OUR DISCLOSURE CONTROLS AND PROCEDURES. The Securities and
Exchange Commission requires that as of the end of the period covered by this
report the CEO and the Principal Financial Officer evaluate the effectiveness of
the design and operation of our disclosure controls and procedures (as defined
in Rule 13 (a)-15(e) and Rule 15 (d)-15(e) under the Securities Exchange Act of
1934), and report on the effectiveness of the design and operation of our
disclosure controls and procedures. Accordingly, under the supervision and with
the participation of our management, including our CEO and Principal Accounting
Officer, we evaluated the effectiveness of the design and operation of our
disclosure controls and procedures as of the end of the period.

CEO/PRINCIPAL ACCOUNTING OFFICER CONCLUSIONS ABOUT THE EFFECTIVENESS OF THE
DISCLOSURE CONTROLS AND PROCEDURES. Based upon their evaluation of the
disclosure controls and procedures, our CEO and Principal Accounting Officer
have; concluded that, subject to the limitations noted below, our disclosure
controls and procedures are effective to provide reasonable assurance that
material information relating to the Company and its consolidated subsidiaries
is made known to management, including the CEO and Principal Financial Officer,
on a timely basis and particularly during the period in which this Quarterly
Report on Form 10-Q was being prepared.



                                       21
<PAGE>

LIMITATIONS ON THE EFFECTIVENESS OF CONTROLS.

Our management, including the CEO and Principal Financial Officer, does not
expect that our disclosure controls and procedures or our internal control, will
prevent all error and all fraud. A control system, no matter how well conceived
and operated, can provide only reasonable, not absolute, assurance that the
objectives of the control system are met. Further, the design of a control
system must reflect the fact that there are resource constraints, and the
benefits of controls must be considered relative to their costs. Because of the
inherent limitations in all control systems, no evaluation of controls can
provide absolute assurance that all control issues and instances of fraud, if
any, within the company have been detected. These inherent limitations include
the realities that judgments in decision-making can be faulty, and that
breakdowns can occur because of simple error or mistake. Additionally, controls
can be circumvented by the individual acts of some persons, by collusion of two
or more people, or by management override of the control. The design of any
system of controls also is based; in part upon certain assumptions about the
likelihood of future events, that there can be no assurance that any design will
succeed in achieving its stated goals under all potential future conditions;
over time, control may become inadequate because of changes in conditions, or
the degree of compliance with the policies or procedures may deteriorate.
Because of the inherent limitations in a cost-effective control system,
misstatements due to error or fraud may occur and not be detected. While we
believe that our disclosure controls and procedures have been effective, in
light of the foregoing we intend to continue to examine and refine our
disclosure controls and procedures and to monitor ongoing developments in this
area.

CHANGES IN INTERNAL CONTROLS. There were no changes in our internal control,
over financial reporting, identified in connection with the reevaluation of such
internal control over financial reporting that occurred during the period
covered by this quarterly report, that has materially affected, or is reasonably
likely to materially affect our internal control over financial reporting.



                                       22
<PAGE>

PART II - OTHER INFORMATION;

Item 1. Legal Proceedings

Management and the Corporation's legal counsel are not aware of any litigation
that would have a material adverse effect on the consolidated financial position
of the Corporation. There are no proceedings pending other than the ordinary
routine litigation incident to the business of the Corporation and its
subsidiary, Columbia County Farmers National Bank. In addition, no material
proceedings are pending or are known to be threatened or contemplated against
the Corporation and the Bank by government authorities.

Item 2. Changes in Securities - Nothing to report.

Item 3. Defaults Upon Senior Securities - Northing to report.

Item 4. Submission of matters to a Vote of Security Holders - Nothing to report.

Item 5. Other Information - On October 27, 2004 Columbia County Farmers National
                            Bank opened a branch in the Wal Mart Supercenter at
                            Buckhorn, 100 Lunger Drive, Bloomsburg, PA 17815

Item 6. A - Exhibits and Reports on Form 8-K - None

        B - Exhibits 31.1, 31.2 and 32



                                       23
<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 thereunto duly authorized.


                                    CCFNB BANCORP, INC.
                                       (Registrant)


                                    By /s/ LANCE O. DIEHL
                                       ---------------------------------
                                       Lance O. Diehl
                                       President and CEO

                                    Date: November 8, 2004



                                    By /s/ VIRGINIA D. KOCHER
                                       ---------------------------------
                                       Virginia D. Kocher
                                       Principal Financial Officer

                                    Date: November 8, 2004



                                       24