<PAGE>   1
                       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 June 30, 2000


        [ ]  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.
        1,351,554 shares of $1.25 (par) common stock were outstanding as of July
        25, 2000.
<PAGE>   2
                       CCFNB BANCORP, INC. AND SUBSIDIARY

                                  JUNE 30, 2000

                                   INDEX 10-Q

<TABLE>
<CAPTION>
        EXHIBIT 27 - FINANCIAL DATA SCHEDULE                                     NO PAGE
                                                                                    #
<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 - 10


                - Report of Independent Certified Public Accountants               11


                - Management's Discussion and Analysis of Consolidated
                  Financial Condition and Results of Operations                  12 - 18


        PART II - OTHER INFORMATION                                                19


        SIGNATURES                                                                 20
</TABLE>
<PAGE>   3
      CCFNB BANCORP, INC. AND SUBSIDIARY
      CONSOLIDATED BALANCE SHEETS
      (IN THOUSANDS)
      UNAUDITED

<TABLE>
<CAPTION>
                                                                          JUNE      DECEMBER
                                                                        30, 2000    31, 1999
                                                                        --------    --------
<S>                                                                     <C>         <C>
      ASSETS
      Cash and due from banks.......................................    $  4,872    $  5,855
      Interest-bearing deposits with other banks....................         229         217
      Investment securities:
        Securities Available-for-Sale...............................      46,788      48,904
        Securities to be Held-to-Maturity (estimated
          fair value 1999, $200)....................................           0         200
      Loans, net of unearned income.................................     133,603     134,423
      Allowance for loan losses.....................................       1,031         985
                                                                        --------    --------
        Net loans...................................................    $132,572    $133,438
      Premises and equipment........................................       5,096       5,274
      Accrued interest receivable...................................       1,002       1,002
      Other assets..................................................       1,501       1,232
                                                                        --------    --------
           TOTAL ASSETS.............................................    $192,060    $196,122
                                                                        ========    ========


      LIABILITIES AND STOCKHOLDERS' EQUITY


      LIABILITIES
      Deposits:

        Non-interest bearing........................................    $ 14,943    $ 13,672
        Interest bearing............................................     125,293     124,934
                                                                        --------    --------
           Total Deposits...........................................    $140,236    $138,606
      Short-term borrowings.........................................      18,080      30,881
      Long-term borrowings..........................................       9,339       2,343
      Accrued interest and other expenses...........................       1,103       1,231
      Other liabilities.............................................          16          14
                                                                        --------    --------
           TOTAL LIABILITIES........................................    $168,774    $173,075
                                                                        --------    --------

      STOCKHOLDERS' EQUITY
      Common stock, par value $1.25 per share; authorized 5,000,000
        shares; issued 1,355,454 shares in 2000 and
        1,367,651 shares in 1999....................................    $  1,694    $  1,710
      Surplus.......................................................       5,289       5,483
      Retained earnings.............................................      17,594      17,014
      Accumulated other comprehensive income (loss).................      (1,291)     (1,160)
                                                                        --------    --------
           TOTAL STOCKHOLDERS' EQUITY...............................    $ 23,286    $ 23,047
                                                                        --------    --------
           TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY...............    $192,060    $196,122
                                                                        ========    ========
</TABLE>

See accompanying notes to Consolidated Financial Statements.


                                       -1-
<PAGE>   4
      CCFNB BANCORP, INC. AND SUBSIDIARY
      CONSOLIDATED STATEMENTS OF INCOME
      (IN THOUSANDS EXCEPT PER SHARE DATA)
      UNAUDITED

<TABLE>
<CAPTION>
                                                                   FOR THE SIX                     FOR THE THREE
                                                                  MONTHS ENDING                    MONTHS ENDING
                                                                     JUNE 30,                         JUNE 30,
                                                                     --------                         --------
                                                               2000            1999            2000             1999
                                                               ----            ----            ----             ----
<S>                                                         <C>             <C>             <C>             <C>
      INTEREST INCOME
      Interest and fees on loans:
        Taxable ......................................      $    5,174      $    4,638      $    2,615      $    2,343
        Tax-exempt ...................................              63              60              32              30
      Interest and dividends on investment securities:

        Taxable interest .............................             991             981             489             506
        Tax-exempt interest ..........................             363             334             181             162
        Dividends ....................................              42              39              21              19
      Interest on federal funds sold .................               0              30               0              16
      Interest on deposits in other banks ............               8             113               5              58
                                                            ----------      ----------      ----------      ----------
           TOTAL INTEREST INCOME .....................      $    6,641      $    6,195      $    3,343      $    3,134
                                                            ----------      ----------      ----------      ----------

      INTEREST EXPENSE
      Interest on deposits ...........................      $    2,517      $    2,466      $    1,271      $    1,242
      Interest on short-term borrowings ..............             577             465             266             229
      Interest on long-term borrowings ...............             205              64             121              32
                                                            ----------      ----------      ----------      ----------
           TOTAL INTEREST EXPENSE ....................      $    3,299      $    2,995      $    1,658      $    1,503
                                                            ----------      ----------      ----------      ----------

      Net interest income ............................      $    3,342      $    3,200      $    1,685      $    1,631
      Provision for loan losses ......................              39              39              19              19
                                                            ----------      ----------      ----------      ----------
        NET INTEREST INCOME AFTER PROVISION FOR
        LOAN LOSSES ..................................      $    3,303      $    3,161      $    1,666      $    1,612
                                                            ----------      ----------      ----------      ----------

      NON-INTEREST INCOME
      Service charges and fees .......................      $      295      $      298      $      147      $      164
      Trust department income ........................              82              85              49              52
      Securities gains - net .........................               0              31               0               0
      Other income ...................................             123             109              79              58
                                                            ----------      ----------      ----------      ----------
           TOTAL NON-INTEREST INCOME .................      $      500      $      523      $      275      $      274
                                                            ----------      ----------      ----------      ----------

      NON-INTEREST EXPENSES
      Salaries and wages .............................      $    1,012      $      937      $      514      $      474
      Pensions and other employee benefits ...........             330             316             163             156
      Occupancy expense, net .........................             170             169              83              81
      Furniture and equipment expense ................             312             293             156             153
      Other operating expenses .......................             712             690             373             335
                                                            ----------      ----------      ----------      ----------
           TOTAL NON-INTEREST EXPENSES ...............      $    2,536      $    2,405      $    1,289      $    1,199
                                                            ----------      ----------      ----------      ----------

      Income before income taxes .....................      $    1,267      $    1,279      $      652      $      687
      Income tax expense .............................             306             320             156             179
                                                            ----------      ----------      ----------      ----------
          NET INCOME .................................      $      961      $      959      $      496      $      508
                                                            ==========      ==========      ==========      ==========


      PER SHARE DATA
      Net income .....................................      $      .71      $      .70      $      .36      $      .37
      Cash dividends .................................             .28            .246             .14             .13
      Weighted average shares outstanding ............       1,362,569       1,376,395       1,362,569       1,376,395
</TABLE>

See accompanying notes to Consolidated Financial Statements.

                                       -2-
<PAGE>   5
   CCFNB BANCORP, INC. AND SUBSIDIARY
   CONSOLIDATED STATEMENTS OF CASH FLOWS
   (IN THOUSANDS)
   UNAUDITED

<TABLE>
<CAPTION>
                                                                               FOR THE SIX MONTHS
                                                                                 ENDING JUNE 30,
                                                                                 ---------------
                                                                               2000         1999
                                                                               ----         ----
<S>                                                                         <C>         <C>
   OPERATING ACTIVITIES
   Net income.............................................................  $    961    $    959
   Adjustments to reconcile net income to net cash provided by
    operating activities:
      Provision for loan losses...........................................        39          39
      Provision for depreciation and amortization.........................       270         266
      Premium amortization on investment securities.......................        18          46
      Discount accretion on investment securities.........................        (8)        (13)
      (Gain) on sales of investment securities Available-for-Sale.........         0         (31)
      Deferred income taxes (benefit).....................................       (17)          5
      (Gain) on sale of other real estate.................................         0          (2)
      (Increase) in accrued interest receivable and other assets..........      (181)       (352)
      (Decrease) in accrued interest, other expenses and other
        liabilities.......................................................      (126)        (26)
                                                                            --------    --------
        NET CASH PROVIDED BY OPERATING ACTIVITIES.........................  $    956    $    891
                                                                            --------    --------

   INVESTING ACTIVITIES
   Proceeds from sales, maturities and redemptions of investment
     securities Available-for-Sale........................................  $  1,904    $  9,109
   Proceeds from maturities and redemptions of Held-to-Maturity
     investment securities................................................       200         365
   Purchase of investment securities Available-for-Sale...................         0     (14,343)
   Net (increase) decrease in loans.......................................       827      (2,620)
   Purchases of premises and equipment....................................       (92)        (75)
   Proceeds from sale of other real estate................................         0          26
                                                                            --------    --------
        NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES...............  $  2,839    $ (7,538)
                                                                            --------    --------

   FINANCING ACTIVITIES
   Net increase in deposits...............................................  $  1,630    $  1,877
   Net (decrease) in short-term borrowings................................   (12,801)       (696)
   Net increase in long-term borrowings...................................     6,996          24
   Proceeds from issuance of common stock.................................        82          75
   Acquisition of treasury stock..........................................      (292)        (25)
   Proceeds from sale of treasury stock...................................         0          13
   Cash dividends paid....................................................      (381)       (338)
                                                                            --------    --------
        NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES...............  $ (4,766)   $    930
                                                                            --------    --------
        (DECREASE) IN CASH AND CASH EQUIVALENTS...........................  $   (971)   $ (5,717)
   CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD.......................     6,072      12,486
                                                                            --------    --------
         CASH AND CASH EQUIVALENTS AT END OF PERIOD.......................  $  5,101    $  6,769
                                                                            ========    ========

   SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
   Cash paid during the year for:

     Interest.............................................................  $  3,350    $  2,994
     Income taxes.........................................................  $    333    $    317
</TABLE>

See accompanying notes to Consolidated Financial Statements.

                                       -3-
<PAGE>   6
     CCFNB BANCORP, INC. AND SUBSIDIARY
     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
     JUNE 30, 2000


     NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

              The accounting and reporting policies of CCFNB Bancorp, Inc. and
              Subsidiary (the "Corporation") are in accordance with generally
              accepted accounting principles 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.

              Gathering 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,
              Invest, is also resident in the main branch, namely Bloomsburg.
              This Invest Financial Service 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 generally accepted accounting principles 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>   7
              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 a
              component 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.

              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 credit losses. Certain non-accrual loans may
              continue to perform, that is, 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>   8
              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.

              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.

              OTHER REAL ESTATE OWNED

              Other real estate owned is comprised of property acquired through
              a foreclosure proceeding or acceptance of a deed-in-lieu of
              foreclosure and loans classified as in-substance foreclosure. In
              accordance with Statement of Financial Accounting Standards (SFAS)
              No. 114, a loan is classified as in-substance foreclosure when the
              Corporation has taken possession of the collateral regardless of
              whether formal foreclosure proceedings take place. Other real
              estate owned is recorded at fair value at 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 (1) cost or (2) fair value minus estimated
              costs to sell. Income and expenses from operations of other real
              estate owned and changes in the valuation allowance are included
              in loss on other real estate owned.

              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 is
              the same.

                                       -6-
<PAGE>   9
              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 recognized on a cash basis
              and is not materially different than if it was reported on an
              accrual basis.

              RECENT ACCOUNTING PRONOUNCEMENTS

              Statement of Financial Accounting Standards (SFAS) No. 133 (as
              amended by SFAS No. 137), "Accounting for Derivative Instruments
              and Hedging Activities", becomes effective for financial reporting
              periods beginning after June 15, 2000. SFAS No. 133 requires fair
              value accounting for all stand-alone derivatives and many
              derivatives embedded in other instruments and contracts. Since the
              Corporation does not enter into transactions involving derivatives
              described in the standard and does not engage in hedging
              activities, the standard is not expected to have a significant
              impact on the Corporation's consolidated financial condition or
              results of operations.

     NOTE 2 - ALLOWANCE FOR LOAN LOSSES

              Changes in the allowance for loan losses for the periods ended
              June 30, 2000 and June 30, 1999 were as follows:

<TABLE>
<CAPTION>
                                                                     (Amounts in Thousands)
                                                                     ----------------------
                                                                        2000        1999
                                                                        ----        ----
<S>                                                                 <C>         <C>
              Balance, beginning of year.........................   $    985    $    954
              Provision charged to operations....................         39          39
              Loans charged-off..................................        (20)        (17)
              Recoveries.........................................         27          23
                                                                    --------    --------
              Balance, June 30...................................   $  1,031    $    999
                                                                    ========    ========
</TABLE>

              At June 30, 2000 the recorded investment in loans that are
              considered to be impaired as defined by SFAS No. 114 was $15,633.
              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 June 30, 2000, there were no significant commitments to lend
              additional funds with respect to non-accrual and restructured
              loans.

                                       -7-
<PAGE>   10
     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.

     NOTE 4 - LONG-TERM BORROWINGS

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

     NOTE 5 - STOCKHOLDERS' EQUITY

              Changes in stockholders' equity for the period ended June 30, 2000
              were as follows:

<TABLE>
<CAPTION>
                                                             (AMOUNTS IN THOUSANDS, EXCEPT COMMON SHARE DATA)
                                                             ------------------------------------------------
                                                                                                 ACCUMULATED
                                                                                                    OTHER
                                                                      COMPREHENSIVE             COMPREHENSIVE
                                       COMMON     COMMON                  INCOME      RETAINED      INCOME       TREASURY
                                       SHARES      STOCK   SURPLUS       (LOSS)       EARNINGS      (LOSS)         STOCK    TOTAL
                                       ------      -----   -------       ------       --------      ------         -----    -----
<S>                                  <C>         <C>       <C>        <C>             <C>        <C>            <C>        <C>
Balance at January 1, 2000.........  1,367,651   $ 1,710   $ 5,483      $     0       $17,014     $(1,160)      $    0     $23,047
Comprehensive Income:
 Net income........................          0         0         0          961           961           0            0         961
 Change in unrealized gain (loss)
  on investment securities
  available-for-sale net of
  reclassification adjustment
  and tax effects..................          0         0         0         (131)            0        (131)           0        (131)
                                                                        -------
         TOTAL COMPREHENSIVE INCOME                                     $   830
                                                                        =======
Issuance of 4,803 shares of common
  stock under dividend reinvestment
  and stock purchase plans.........      4,803         5        77                          0           0            0          82
Purchase of 17,000 shares of
  treasury stock...................          0         0         0                          0           0         (292)       (292)
Retirement of 17,000 shares of
  treasury stock...................    (17,000)      (21)     (271)                         0           0          292           0
Cash dividends $.28 per share......          0         0         0                       (381)          0            0        (381)
                                     ---------   -------   -------                    -------     -------       ------     -------
Balance at June 30, 2000...........  1,355,454   $ 1,694   $ 5,289                    $17,594     $(1,291)      $    0     $23,286
                                     =========   =======   =======                    =======     =======       ======     =======
</TABLE>

                                       -8-
<PAGE>   11
     NOTE 6 - 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 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 June 30, 2000 and December 31,
              1999 were as follows:

<TABLE>
<CAPTION>
                                                                              (Amounts in Thousands)
                                                                                JUNE     DECEMBER
                                                                              30, 2000   31, 1999
                                                                              --------   --------
<S>                                                                           <C>        <C>
Financial instruments whose contract amounts represent credit
 risk:
  Commitments to extend credit........................                        $ 10,886   $ 10,342
  Financial standby letters of credit.................                             615        639
  Performance standby letters of credit...............                              18         11
  Dealer floor plans..................................                           1,589        991
</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.

                                       -9-
<PAGE>   12
              The Corporation granted commercial, consumer and residential loans
              to customers within Pennsylvania. Of the total loan portfolio at
              June 30, 2000 77.8% 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 7 - MANAGEMENT'S ASSERTIONS AND COMMENTS REQUIRED TO BE PROVIDED WITH
              FORM 10Q FILING

              In management's opinion, the consolidated interim financial
              statements reflect a 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 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 period presented and that all such adjustments to
              the consolidated financial statements are of a normal recurring
              nature.

              The results of operations for the six-month period ended June 30,
              2000 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 generally accepted
              accounting principles 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, 1999, filed with the Securities and Exchange
              Commission.

     NOTE 8 - AMENDMENT OF RULE 10-01 OF REGULATION S-X REQUIRING REVIEWED
              QUARTERLY FINANCIAL STATEMENTS

              In accordance with the new amendment effective for the period
              ended June 30, 2000 the accompanying consolidated financial
              statements have been reviewed by Independent Certified Public
              Accountants whose report is being submitted as an integral part of
              this Form 10Q filing.

                                      -10-
<PAGE>   13
      REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS



      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 June 30, 2000, and the related
      consolidated statements of income and cash flows for the three and
      six-month periods then ended. These consolidated financial statements are
      the responsibility of the management of CCFNB Bancorp, Inc. and
      Subsidiary.

      We conducted our review in accordance with standards established by the
      American Institute of Certified Public Accountants. A review of interim
      financial information consists principally of applying analytical
      procedures to financial data and making inquiries of persons responsible
      for financial and accounting matters. It is substantially less in scope
      than an audit conducted in accordance with generally accepted auditing
      standards, 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 review, we are not aware of any material modifications that
      should be made to the June 30, 2000 financial statements for them to be in
      conformity with generally accepted accounting principles.

      The accompanying balance sheet of CCFNB Bancorp, Inc. and Subsidiary for
      the year ended December 31, 1999, was audited by us as part of our audit
      of the financial statements for the year ended December 31, 1999 taken as
      a whole and we expressed an unqualified opinion on them in our report
      dated January 18, 2000, but we have not performed any auditing procedures
      since that date.

      The accompanying statements of income and cash flows of CCFNB Bancorp,
      Inc. and Subsidiary for the three and six-month periods ended June 30,
      1999 were not audited by us and, accordingly, we do not express an opinion
      on them.

      J.H. Williams & Co., LLP
      Kingston, Pennsylvania
      July 14, 2000

                                      -11-
<PAGE>   14
                       CCFNB BANCORP, INC. AND SUBSIDIARY
              MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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

<TABLE>
<CAPTION>
                                            AT AND FOR THE SIX MONTHS
                                            -------------------------
                                                  ENDED JUNE 30,                 AT AND FOR THE YEARS ENDED DECEMBER 31,
                                                  --------------                 ---------------------------------------
                                                 2000        1999          1999        1998        1997        1996        1995
                                                 ----        ----          ----        ----        ----        ----        ----
<S>                                         <C>           <C>           <C>         <C>         <C>         <C>         <C<
Income and Expense:
  Interest income.......................      $    6,641  $    6,195    $   12,669  $   12,444  $   12,498  $   11,844  $   11,466
  Interest expense......................           3,299       2,995         6,099       6,072       5,976       5,588       5,557
                                              ----------  ----------    ----------  ----------  ----------  ----------  ----------
  Net interest income...................           3,342       3,200    $    6,570  $    6,372       6,522       6,256       5,909
  Loan loss provision...................              39          39            78          78          60          80          42
                                              ----------  ----------    ----------  ----------  ----------  ----------  ----------
  Net interest income after loan loss
    provision...........................           3,303       3,161         6,492       6,294       6,462       6,176       5,867
  Non-interest income...................             500         523         1,050         981         804         762         693
  Non-interest expense..................           2,536       2,405         4,818       4,739       4,492       4,450       4,374
                                              ----------  ----------    ----------  ----------  ----------  ----------  ----------
  Income before income taxes............           1,267       1,279         2,724       2,536       2,774       2,488       2,186
  Income taxes..........................             306         320           685         634         749         664         561
                                              ----------  ----------    ----------  ----------  ----------  ----------  ----------
  Net income............................             961         959         2,039       1,902       2,025       1,824       1,625
                                              ==========  ==========    ==========  ==========  ==========  ==========  ==========

Per Share: (1)
  Net income............................      $      .71  $      .70    $     1.48  $     1.38  $     1.47  $     1.33  $     1.19
  Cash dividends paid...................             .28         .26           .51         .46         .46         .45         .45
  Average shares outstanding............       1,362,569   1,376,395     1,375,572   1,378,339   1,381,800   1,375,875   1,367,595

Average Balance Sheet:
  Loans.................................      $  133,183  $  119,745    $  123,185  $  116,490  $  116,771  $  112,341  $  111,980
  Investments...........................          47,780      49,558        49,827      45,878      40,307      39,248      37,063
  Other earning assets..................             263       6,090         2,739       4,952       5,053       3,739       1,727
  Total assets..........................         191,586     185,054       186,597     177,643     171,159     164,512     157,957
  Deposits..............................         139,080     138,051       138,963     131,366     117,086     117,414     116,495
  Other interest-bearing liabilities....          28,464      22,402        22,874      22,660      20,198      14,860      11,766
  Stockholders' equity..................          22,837      23,272        22,874      22,264      20,690      19,512      18,067

Balance Sheet Data:
  Loans.................................         133,603     121,184       134,423     118,558     119,045     115,590     111,831
  Investments...........................          46,788      51,430        49,104      48,151      43,862      37,407      40,384
  Other earning assets..................             229       1,713           217       6,105         582       6,856         385
  Total assets..........................         192,600     185,894       196,122     185,258     173,866     170,086     162,066
  Deposits..............................         140,236     139,556       138,606     137,679     127,719     131,400     128,985
  Other interest-bearing liabilities....          27,419       2,203        23,458      22,709      22,802      16,951      12,430
  Stockholders' equity..................          23,286      23,192        23,047      23,480      22,105      20,657      19,512

Ratios: (2)
  Return on average assets..............           1.00%       1.04%         1.09%       1.07%       1.18%       1.11%       1.03%
  Return on average equity..............           8.42%       8.24%         8.91%       8.54%       9.79%       9.35%       8.99%
  Dividend payout ratio.................          39.65%      35.25%        34.09%      33.59%      31.65%      33.95%      34.35%
  Average equity to average assets ratio          11.92%      12.58%        11.75%      12.53%      12.71%      11.86%      11.44%
</TABLE>

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

(2) The ratios for the six month period ending June 30, 2000 are annualized.

                                      -12-
<PAGE>   15
      The following discussion and analysis of the financial condition and
      results of operations of the Corporation should be read in conjunction
      with the consolidated financial statements of the Corporation. The
      consolidated financial condition and results of operations of the
      Corporation are essentially those of the Bank. Therefore, the discussion
      and analysis that follows is directed primarily at the performance of the
      Bank.

      Overview

      Total assets decreased 2.0% to $192.1 million at June 30, 2000 from $196.1
      million at December 31, 1999. Net income increased .2% through June 30,
      2000 to $961,000 or 71 cents per share, compared to $959,000 or 70 cents
      per share for the same six month period ended June 30, 2000. Loans
      decreased in 2000 by .6% to $133.6 million at June 30, 2000 from $134.4
      million at December 31, 1999.

      Results of Operations - For the Six Months Ended June 30, 2000 and June
      30, 1999.

      Net income is affected by five major components: net interest income or
      the difference between interest income earned on loans and investments and
      interest expense paid on deposits and borrowed funds; the provision for
      loan losses, which is the amount charged against net interest income and
      added to the allowance for loan losses to provide a reserve for potential
      future loan losses; other non-interest income, which is made up of certain
      fees, gains and losses from the sale of investment securities, trust
      department income and other items; and other non-interest expenses, which
      consist primarily of salaries and benefits, general overhead expenses,
      other operational expenses and income taxes. Each of these major
      components is reviewed in more detail in the following discussion.

      Net income for six months ended June 30, 2000 was $961,000 or 71 cents per
      share, as compared to $959,000 or 70 cents per share, for the comparable
      period in 1999. Interest income increased 6.5% from $6.2 million at June
      30, 1999 to $6.6 million at June 30, 2000. Interest expense increased
      10.0% from $3.0 million at June 30, 1999 to $3.3 million at June 30, 2000.
      Non-interest income decreased 4.4% from $523,000 at June 30, 1999 to
      $500,000 at June 30, 2000. During 1999 this category included securities
      gains of $31,000 with $0 in 2000. Non-interest expense increased 4.2% from
      $2.4 million at June 30, 1999 to $2.5 million at June 30, 2000.

      Return on average assets and return on average equity were 1.00% and
      8.42%, respectively, for the six months ended June 30, 2000, as compared
      to 1.04% and 8.24% for the six months ended June 30, 2000.

      Net Interest Income

      For the six months ended June 30, 1999 and 2000, net interest income was
      $3.2 and $3.3 million, respectively. The net interest margin reflected an
      increase to 3.93% for the six months ended June 30, 2000 from 3.88% for
      the six months ended June 30, 1999. Average interest earning assets at
      June 30, 2000 increased by 3.3% over June 30, 1999 to $181.2 million from
      $175.4 million.

      Average loans outstanding increased from $119.7 million to $133.2 million
      or 11.3% for the six months ended June 30, 2000, as compared to the six
      months ended June 30, 1999.

      The outstanding balance of loans at June 30, 2000 decreased from $133.4
      million at December 31, 1999 to $132.6 million at June 30, 2000.

                                      -13-
<PAGE>   16
      Shown below is a summary of past due and non-accrual loans:

<TABLE>
<CAPTION>
                                                                   IN THOUSANDS OF DOLLARS
                                                                   -----------------------
                                                                       JUNE     DECEMBER
                                                                     30, 2000   31, 1999
                                                                     --------   --------
<S>                                                                <C>          <C>
           Past due and non-accrual:
             Days 30 - 89.........................................   $  2,149   $    665
             Days 90 plus.........................................        588        173
             Non-accrual..........................................        233        199
                                                                     --------   --------
                                                                     $  2,970   $  1,037
                                                                     ========   ========
</TABLE>

      Past due and non-accrual loans increased to $3.0 million at June 30, 2000
      from $1.0 million at December 31, 1999. This large increase is, in part,
      due to one commercial loan of $624,000 which is now current. An additional
      $450,000 represented by two secured loans are expected to become current
      within the next two months. The remaining increase specifically was
      attributable to real estate loans which became past due during the three
      months which are fully secured by adequate real estate collateral.

      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 management reasonably expects will materially impact
      future operating results, liquidity, or capital resources, or (ii)
      represent material credits about which management is aware of any
      information which causes management to have serious doubts as to the
      ability of such borrowers to comply with the loan repayment terms.

      The Corporation adheres 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>
                                                                                       IN THOUSANDS
                                                                                        OF DOLLARS
                                                                                        ----------
                                                                                           JUNE
                 MATURITY AND REPRICING DATA FOR LOANS AND LEASES                        30, 2000
                                                                                         --------
<S>                                                                                    <C>
      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...........................................            $  2,723
          (2) Over three months through 12 months............................              10,512
          (3) Over one year through three years..............................              32,684
          (4) Over three years through five years............................               3,723
          (5) Over five years through 15 years...............................               8,290
          (6) Over 15 years..................................................               1,968
      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...........................................              14,727
          (2) Over three months through 12 months............................              14,811
          (3) Over one year through three years..............................              16,564
          (4) Over three years through five years............................               9,702
          (5) Over five years through 15 years...............................              13,841
          (6) Over 15 years..................................................               4,394
                                                                                         --------
             Sub-total.......................................................            $133,939
      Add:  non-accrual loans not included above.............................                 233
      Less:  unearned income.................................................                (569)
                                                                                         --------
             Total Loans and Leases..........................................            $133,603
                                                                                         ========
</TABLE>


                                      -14-
<PAGE>   17
      Interest income from investment securities remained constant at $1.4
      million for the six months ended June 30, 1999 and 2000. The average
      balance of investment securities for the six months ended June 30, 2000
      decreased 3.6% to $47.8 million, compared to the $49.6 million for the
      same period of 1999.

      Total interest expense increased 10.0% to $3.3 million at June 30, 2000
      compared to $3.0 million at June 30, 1999.

      Average short-term borrowings increased from $.4 million at June 30, 1999
      to $6.4 million at June 30, 2000. One day borrowings from the Federal home
      Loan Bank accounts for the principal increase in this area. With the
      reduction of depositor repurchase agreements, averaging $19.7 million from
      June 30, 1999 to $15.2 million at June 30, 2000, Federal Home Loan Bank
      average short term borrowings increased from $0 at June 30, 1999 to $5.9
      million at June 30, 2000.

      Average long-term borrowings also increased from $2.3 million at June 30,
      1999 to $6.9 million at June 30, 2000. This also was a result of the
      decrease in repurchase agreements and also the increased loan demand
      during these periods. Average total loans increased 11.3% from $119.7
      million at June 30, 1999 to $133.2 million at June 30, 2000.

      The following table sets forth, for the periods indicated, information
      regarding: (1) the total dollar amount of interest income from
      interest-earning assets and the resultant average yields; (2) the total
      dollar amount of interest expense on interest-bearing liabilities and the
      resultant average cost; (3) net interest income; (4) net interest margin;
      (5) tax equivalent net interest income; and (6) tax equivalent net
      interest margin. Information is based on average daily balances during the
      indicated periods.

      Average Balance Sheet and Rate Analysis
      (Dollars in Thousands)

<TABLE>
<CAPTION>
                                                                         JUNE 2000                          JUNE 1999
                                                             --------------------------------   -------------------------------
                                                                         INTEREST     AVERAGE               INTEREST    AVERAGE
                                                              AVERAGE     INCOME/      YIELD/    AVERAGE     INCOME/     YIELD/
                                                             BALANCE(1)  EXPENSE(2)     RATE    BALANCE(1)  EXPENSE(2)    RATE
                                                             ----------  ----------     ----    ----------  ----------    ----
<S>                                                          <C>         <C>          <C>       <C>         <C>         <C>
         ASSETS:
         Interest-bearing deposits with other financial
           institutions....................................   $    263    $      8      6.08%    $  4,776    $    113    4.73%
         Investment securities:
           U.S. government securities......................     32,114         991      6.17%      34,092         981    5.76%
           State and municipal obligations (3).............     14,526         363      7.57%      14,092         334    7.18%
           Other securities................................      1,140          42      7.37%       1,374          39    5.68%
                                                              --------    --------      ----     --------    --------    ----
         Total Investment Securities.......................   $ 47,780    $  1,396      5.84%    $ 49,558    $  1,354    5.46%
         Federal funds sold................................          0           0      0.00%       1,314          30    4.57%
         Consumer..........................................     12,484         501      8.03%       9,814         410    8.36%
         Dealer floor plan.................................      5,913         252      8.52%       2,613         103    7.88%
         Mortgage..........................................    102,957       3,981      7.73%      97,767       3,806    7.79%
         Commercial........................................      9,409         440      9.35%       7,244         319    8.81%
         Tax free (3)......................................      2,420          63      7.89%       2,307          60    7.88%
                                                              --------    --------      ----     --------    --------    ----
         Total loans.......................................   $133,183    $  5,237      7.86%    $119,745    $  4,698    7.85%
         Total interest earning assets.....................    181,226       6,641      7.33%     175,393       6,195    7.06%
                                                              --------    --------      ----     --------    --------    ----
         Reserve for loan losses...........................   $ (1,011)                          $   (975)
         Cash and due from banks...........................      2,012                              1,717
         Other assets......................................      9,359                              8,919
                                                              --------                           --------
         Total assets......................................   $191,586                           $185,054
                                                              ========                           ========
</TABLE>

                                      -15-
<PAGE>   18
<TABLE>
<CAPTION>
                                                                         JUNE 2000                        JUNE 1999
                                                             -------------------------------  -------------------------------
                                                                         INTEREST    AVERAGE               INTEREST   AVERAGE
                                                              AVERAGE     INCOME/     YIELD/   AVERAGE     INCOME/    YIELD/
                                                             BALANCE(1)  EXPENSE(2)   RATE    BALANCE(1)  EXPENSE(2)   RATE
                                                             ----------  ----------   ----    ----------  ----------   ----
<S>                                                          <C>         <C>         <C>      <C>         <C>         <C>
         LIABILITIES AND CAPITAL:
         SUPER NOW deposits................................   $ 21,643    $    138    1.28%    $ 21,788    $    150    1.38%
         IRA's under $100,000..............................      8,315         213    5.12%       8,304         204    4.91%
         Money market deposits.............................      9,883         135    2.73%      11,204         153    2.73%
         Savings deposits..................................     21,844         279    2.55%      21,722         275    2.53%
         Time deposits including IRA's over $100,000.......     16,458         488    5.93%      13,021         375    5.76%
         Other time deposits under $100,000................     47,742       1,264    5.30%      49,167       1,309    5.32%
                                                              --------    --------    ----     --------    --------    ----
         Total interest-bearing deposits...................   $125,885    $  2,517    4.00%    $125,206    $  2,466    3.94%
                                                              --------    --------    ----     --------    --------    ----
         U.S. treasury short-term borrowings...............        526          14    5.32%         422           9    4.27%
         Short-term borrowings - other.....................      5,860         176    6.01%           0           0    0.00%
         Long-term borrowings..............................      6,913         205    5.93%       2,309          64    5.54%
         Repurchase agreements.............................     15,165         387    5.10%      19,671         456    4.64%
                                                              --------    --------    ----     --------    --------    ----
         Total interest-bearing liabilities................   $154,349    $  3,299    4.27%    $147,608    $  2,995    4.06%
                                                              --------    --------    ----     --------    --------    ----
         Demand deposits...................................   $ 13,195                         $ 12,845
         Other liabilities.................................      1,205                            1,329
         Stockholders' equity..............................     22,837                           23,272
                                                              --------                         --------
         Total liabilities and capital.....................   $191,586                         $185,054
                                                              ========                         ========

         NET INTEREST INCOME/NET INTEREST MARGIN (4)......                $  3,342    3.69%                $  3,200    3.65%
                                                                          ========    ====                 ========    ====

         TAX EQUIVALENT NET INTEREST INCOME/
          NET INTEREST MARGIN (5)..........................               $  3,561    3.93%                $  3,403    3.88%
                                                                          ========    ====                 ========    ====
</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%
          for 2000 and 1999.

      Provision for Loan Losses

      The provision for loan losses is based on management's 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 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.

      For the six month period ending June 30, 2000 and 1999, the provision for
      loan losses was $39,000.

                                      -16-
<PAGE>   19
      Non-Interest Income

      The following table sets forth, for the periods indicated, the major
      components of non-interest income:

<TABLE>
<CAPTION>
                                                                       SIX MONTHS ENDED
                                                                            JUNE 30,
                                                                            --------
                                                                        2000        1999
                                                                        ----        ----
                                                                   (Dollars in Thousands)

<S>                                                                 <C>         <C>
      Service charges and fees..................................    $    295    $    298
      Trust department income...................................          82          85
      Investment securities gain - net..........................           0          31
      Invest income.............................................          52          48
      Other.....................................................          71          61
                                                                    --------    --------
           Total................................................    $    500    $    523
                                                                    ========    ========
</TABLE>

      For the six months ended June 30, 2000, total non-interest income
      decreased $23,000 to $500,000 compared with $523,000 for the six month
      period ended June 30, 1999. The decrease is the result of a gain on sale
      of securities in 1999 of $31,000 compared to $0 in 2000, a decrease in
      service charges and fees from $298,000 at June 30, 1999 to $295,000 at
      June 30, 2000, a decrease in trust department income from $85,000 at June
      30, 1999 to $82,000 at June 30, 2000. The additional increases were:
      Invest Income, a $4,000 increase and other non-interest income expense, a
      $10,000 increase.

      Non-Interest Expenses

      Generally, non-interest expense accounts for the cost of maintaining
      facilities, providing salaries and necessary benefits to employees, and
      general operating costs such as 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,
      the Company utilizes budgets and related measures to control variable
      expenses. The following table sets forth, for the periods indicated, the
      major components of non-interest expenses:

<TABLE>
<CAPTION>
                                                                        SIX MONTHS ENDED
                                                                            JUNE 30,
                                                                            --------
                                                                        2000        1999
                                                                        ----        ----
                                                                   (Dollars in Thousands)
<S>                                                                 <C>         <C>
      Salaries and wages.......................................     $  1,012    $    937
      Employee benefits........................................          330         316
      Net occupancy expense....................................          170         169
      Furniture and equipment expense..........................          312         293
      State shares tax.........................................          109          96
      Other expense............................................          603         594
                                                                    --------    --------
           Total...............................................     $  2,536    $  2,405
                                                                    ========    ========
</TABLE>

      An increase of 5.4% or $131,000 occurred overall in the non-interest
      expense area. Salaries and wages increased 8% from $937,000 at June 30,
      1999 to $1,012,000 at June 30, 2000. The wage increase is the result of
      normal merit and cost of living increases plus higher starting wages for
      new employees. This is necessary as presently it is difficult to recruit
      new employees. Employee benefits increased 4.4% from $316,000 at June 30,
      1999 to $330,000 at June 30, 2000. This is mainly due to increased health
      insurance costs.

                                      -17-
<PAGE>   20
      Furniture and equipment expense increased 6.5% during the past twelve
      months. The addition of the telebank system and additional computer
      stations have increased the cost on the hardware, software, maintenance,
      and depreciation components of this expense category.

      The Pennsylvania Shares Tax increased 13.5% from $96,000 at June 30, 1999
      to $109,000 at June 30, 2000. A 1.5% increase in other non-interest
      expense occurred from June 30, 1999 at $594,000 to June 30, 2000 at
      $603,000. The differences include: increases in Deferred Officer
      Retirement expense of $10,000; FDIC Insurance expense of $6,000; and
      Postage expense of $5,000. Offsetting these increases was a $12,000
      decrease in Y2K expense from $12,000 at June 30, 1999 to $0 at June 30,
      2000.

      Capital

      A major strength of a financial institution is a strong capital position.
      This capital is very critical as it must provide growth, payment to
      stockholders, and absorption of unforeseen losses. The 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 Tier I
      Capital and Total Qualifying Capital. Tier I Capital is common
      stockholders' equity and Tier II Capital includes the allowance for loan
      losses. Allowance for loan losses must be lower than or equal to common
      stockholders' equity to be eligible for Total Qualifying Capital.

      The Company exceeds all minimum capital requirements as reflected in the
      following table:

<TABLE>
<CAPTION>
                                                   JUNE 30, 2000      DECEMBER 31, 1999
                                                   -------------      -----------------
                                                           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     20.09%     4.00%      17.94%     4.00%
      Total Qualifying Capital to
        risk-weighted assets................     20.94%     8.00%      18.68%     8.00%
</TABLE>

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

<TABLE>
<CAPTION>
                                                                        JUNE    DECEMBER
                                                                      30, 2000  31, 1999
                                                                      --------  --------
<S>                                                                   <C>       <C>
      Tier I Capital to average assets...........................      12.77%    12.94%
</TABLE>

      Management believes that the Bank's current capital position and liquidity
      positions are strong and that its capital position is adequate to support
      its operations.

                                      -18-
<PAGE>   21
        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 - Nothing to report.

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

        Item 5.  Other Information

        On May 11, 2000 the Board of Directors voted to appoint Willard H. Kile,
        Jr. as a member of the Board of Directors to fill the vacancy created
        by the retirement of Willard H. Kile, Sr.

        Item 6. Exhibits and Reports on Form 8-K - Nothing to report.

                                      -19-
<PAGE>   22
                                   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 Paul E. Reichart
                                                ----------------
                                                Paul E. Reichart
                                                President & CEO

                                             Date: July 28, 2000

                                             By Virginia D. Kocher
                                                ------------------
                                                Virginia D. Kocher
                                                Treasurer

                                             Date: July 28, 2000

                                      -20-