<PAGE>   1

                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                   FORM 10-QSB



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

     For the quarterly period ended March 31, 1997


 [ ] 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:  (717) 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. 1,382,433 shares
    of $1.25 (par) common stock were outstanding as of May 6, 1997.









<PAGE>   2


                       CCFNB BANCORP, INC. AND SUBSIDIARY

                                 MARCH 31, 1997

                                  INDEX 10-QSB






EXHIBIT 27 - FINANCIAL DATA SCHEDULE                                    NO. PAGE
                                                                        --------
                                                                            #

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 - 6


        - Management's Discussion and Analysis of Financial Condition
          and Results of Operations                                       7 - 13



PART II - OTHER INFORMATION                                                14



SIGNATURES                                                                 15



<PAGE>   3

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

<TABLE>
<CAPTION>
                                                                          MARCH            DECEMBER
                                                                         31, 1997          31, 1996
                                                                        ---------         ---------
<S>                                                                     <C>               <C>      
ASSETS
Cash and due from banks ........................................        $   3,715         $   4,503
Interest-bearing deposits with other banks .....................            3,289             3,856
Federal funds sold .............................................            3,000             3,000
Investment securities:
  Securities to be held to maturity, estimated fair value of
    $728 and $981 ..............................................              720               970
  Securities available for sale carried at estimated fair value            36,100            36,437
Loans, net of unearned income ..................................          116,462           115,590
Allowance for loan losses ......................................              913               911
                                                                        ---------         ---------
  Net loans ....................................................        $ 115,549         $ 114,679
Premises and equipment .........................................            5,220             5,294
Accrued interest receivable ....................................              988               965
Other assets ...................................................              624               382
                                                                        ---------         ---------
     TOTAL ASSETS ..............................................        $ 169,205         $ 170,086
                                                                        =========         =========


LIABILITIES AND STOCKHOLDERS' EQUITY


LIABILITIES
Deposits:
  Non-interest bearing .........................................        $  11,734         $  12,280
  Interest bearing .............................................          117,248           119,120
                                                                        ---------         ---------
     Total Deposits ............................................        $ 128,982         $ 131,400
Short-term borrowings ..........................................           18,050            16,654
Long-term borrowings ...........................................              267               297
Accrued interest and other expenses ............................            1,066             1,058
Other liabilities ..............................................               41                20
                                                                        ---------         ---------
     TOTAL LIABILITIES .........................................        $ 148,406         $ 149,429
                                                                        =========         =========

STOCKHOLDERS' EQUITY
Common stock, par value $1.25 per share; Authorized 5,000,000
  shares; issued 1997 - 1,382,433, 1996 - 1,374,159 shares .....        $   1,728         $   1,727
Surplus ........................................................            5,851             5,838
Retained earnings ..............................................           13,352            13,023
Allowance for unrealized gain (loss) on available-for-sale
  investment securities, net of taxes ..........................             (132)               69
                                                                        ---------         ---------
     TOTAL STOCKHOLDERS' EQUITY ................................        $  20,799         $  20,657
                                                                        ---------         ---------
     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ................        $ 169,205         $ 170,086
                                                                        =========         =========
</TABLE>




The accompanying notes are an integral part of these 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 THREE
                                                                 MONTHS ENDING
                                                                   MARCH 31,
                                                             --------------------
                                                              1997          1996
                                                             ------        ------
<S>                                                          <C>           <C>   
INTEREST INCOME
Interest and fees on loans:
  Taxable ...........................................        $2,372        $2,256
  Tax exempt ........................................            35            25
Interest and dividends on investment securities:
  Taxable interest ..................................           389           443
  Tax exempt interest ...............................           128           118
  Dividends .........................................            15            15
Interest on federal funds sold ......................            37             8
Interest on deposits in other banks .................            55            37
                                                             ------        ------
     TOTAL INTEREST INCOME ..........................        $3,031        $2,902
                                                             ------        ------

INTEREST EXPENSE
Interest on deposits ................................        $1,214        $1,213
Interest on short-term borrowings ...................           218           165
Interest on long-term borrowings ....................             4             9
                                                             ------        ------
     TOTAL INTEREST EXPENSE .........................        $1,436        $1,387
                                                             ------        ------

Net interest income .................................        $1,595        $1,515
Provision for loan losses ...........................            15            15
                                                             ------        ------
  NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES        $1,580        $1,500
                                                             ------        ------

NON-INTEREST INCOME
Service charges and fees ............................        $  133        $  119
Trust department income .............................            21            18
Other income ........................................            14            15
                                                             ------        ------
     TOTAL NON-INTEREST INCOME ......................        $  168        $  152
                                                             ------        ------

NON-INTEREST EXPENSES
Salaries and wages ..................................        $  423        $  412
Pensions and other employee benefits ................           152           144
Occupancy expense, net ..............................            94            95
Furniture and equipment expense .....................           103            81
Other operating expenses ............................           314           360
                                                             ------        ------
     TOTAL NON-INTEREST EXPENSES ....................        $1,086        $1,092
                                                             ------        ------

Income before income taxes ..........................        $  662        $  560
Income tax expense ..................................           173           147
                                                             ------        ------
    NET INCOME ......................................        $  489        $  413
                                                             ======        ======


NET INCOME PER SHARE ................................        $  .35        $  .30
</TABLE>



The accompanying notes are an integral part of these consolidated financial 
statements.





                                       -2-

<PAGE>   5




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

<TABLE>
<CAPTION>
                                                                                FOR THE THREE MONTHS
                                                                                   ENDING MARCH 31,
                                                                               -------------------------
                                                                                 1997             1996
                                                                               --------         --------
<S>                                                                            <C>              <C>     
OPERATING ACTIVITIES
Net income ............................................................        $    489         $    413
Adjustments to reconcile net income to net cash provided by
 operating activities:
   Provision for loan losses ..........................................              15               15
   Provision for depreciation and amortization ........................              92               88
   Premium amortization on investment securities ......................               1                1
   Discount accretion on investment securities ........................              (7)              (2)
   Deferred income taxes (benefit) ....................................               0               12
   (Gain) loss on sale of premises and equipment ......................              (2)               0
   Loss on impairment of bank premise .................................               3                0
   (Increase) decrease in accrued interest receivable and other assets             (162)            (202)
   Increase (decrease) in accrued interest and other expenses
     and other liabilities ............................................              29             (106)
                                                                               --------         --------
     NET CASH PROVIDED BY OPERATING ACTIVITIES ........................        $    458         $    219
                                                                               --------         --------
INVESTING ACTIVITIES
Proceeds from sales, maturities and redemptions of investment
  securities available for sale .......................................        $  5,319         $  6,000
Proceeds from maturities and redemptions of investment securities
  held to maturity ....................................................             250                0
Purchase of investment securities available for sale ..................          (5,279)          (5,617)
Net (increase) decrease in loans ......................................            (885)           2,387
Purchases of premises and equipment ...................................             (31)            (170)
Proceeds from sale of premises and equipment ..........................              12                0
                                                                               --------         --------
     NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES ..............        $   (614)        $  2,600
                                                                               --------         --------

FINANCING ACTIVITIES
Net increase (decrease) in deposits ...................................        $ (2,418)        $    266
Net increase (decrease) in short-term borrowings ......................           1,396            1,801
Net increase (decrease) in long-term borrowings .......................             (30)             (14)
Proceeds from sale of stock - dividend reinvestment ...................              41               25
Treasury stock acquired and retired ...................................             (28)               0
Cash dividends paid ...................................................            (160)            (137)
                                                                               --------         --------
     NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES ..............        $ (1,199)        $  1,941
                                                                               --------         --------
     INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS .................        $ (1,355)        $  4,760
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR ........................          11,359            4,471
                                                                               --------         --------
     CASH AND CASH EQUIVALENTS AT END OF PERIOD .......................        $ 10,004         $  9,231
                                                                               ========         ========


SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the year for:
  Interest ............................................................        $  1,449         $  1,397
  Income taxes ........................................................        $     69         $      0
</TABLE>




The accompanying notes are an integral part of these consolidated financial
statements.


                                       -3-



<PAGE>   6

CCFNB BANCORP, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1997
UNAUDITED


BASIS OF PRESENTATION


NOTE 1 -    The accounting and reporting policies of CCFNB Bancorp and its
            subsidiary conform to generally accepted accounting principles and
            to general practices within the banking industry. These consolidated
            interim financial statements include the accounts of CCFNB Bancorp,
            Inc. and its wholly owned subsidiary, Columbia County Farmers
            National Bank. All significant inter-company balances have been
            eliminated.



NOTE 2 -    The accompanying consolidated interim financial statements are
            unaudited. 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.



NOTE 3 -    The results of operations for the three month period ended March 31,
            1997 are not necessarily indicative of the results to be expected
            for the full year.



NOTE 4 -    Net income per share of common stock for the interim periods is
            based on the weighted average number of shares for each period; 1997
            - 1,381,751 shares and 1996 - 1,372,724 shares.



NOTE 5 -    LOANS

            Loans are stated at their outstanding principal balances, net of any
            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.



                                       -4-

<PAGE>   7

            Non-Accrual Loans - Generally, a loan (including a loan impaired
            under Statement of Financial Accounting Standards No. 114) is
            classified as non-accrual, and the accrual of interest on such a
            loan is 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. Potential problem loans are
            identified by management as a part of its loan review process.

            Income recognition is in accordance with Statement of Financial
            Accounting Standards No. 118. Certain non-accrual loans may continue
            to perform, that is, payments are still being received. Generally,
            the payments are applied to principal. These 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.

            The Corporation adheres to principles provided by Statement of
            Financial Accounting Standards No. 114, "Accounting by Creditors for
            Impairment of a Loan", as amended by Statement of Financial
            Accounting Standards No. 118, "Accounting by Creditors for
            Impairment of a Loan - Income Recognition and Disclosure." Under
            these standards, the allowance for loan losses related to loans that
            are identified for evaluation in accordance with Statement No. 114
            is based on discounted cash flows using the loan's initial effective
            interest rate or the fair value of the collateral for certain
            collateral dependent loans. Statement No. 118 allows the continued
            use of existing methods for income recognition on impaired loans and
            amends disclosure requirements to require information about the
            recorded investment in certain impaired loans and related income
            recognition on those loans. The allowance for loan losses is
            maintained at a level 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.







                                       -5-



<PAGE>   8

         The following table presents the changes in the allowance for credit
         losses:


<TABLE>
                  <S>                                                                         <C>
                  Balance at January 1, 1997 ................................                 $911
                  Provisions charged to operations ..........................                   15
                  Loans charged off .........................................                   23
                  Recoveries ................................................                   10
                                                                                              ----
                  Balance at March 31, 1997 .................................                 $913
                                                                                              ====
</TABLE>
                 
                  
            At March 31, 1997 no loans were considered impaired as defined by
            Statement No. 114. Accordingly, no additional charge to operations
            was required since the total allowance for loan losses was estimated
            by management to be adequate to provide for the loan loss allowance
            under Statement No. 114 as well as any other potential loan losses.



NOTE 6 -    The consolidated interim financial statements have been prepared in
            accordance with requirements of Form 10-QSB and therefore do not
            include all the disclosures normally required by generally accepted
            accounting principles, or those normally made in the Corporation's
            annual 10-KSB filing. The reader of these consolidated interim
            financial statements may wish to refer to the Corporation's annual
            report on Form 10-KSB for the period ended December 31, 1996, filed
            with the Securities and Exchange Commission.















                                         -6-

<PAGE>   9
                       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 THREE MONTHS
                                          ---------------------------
                                                 ENDED MARCH 31,     ---------AT AND FOR THE YEARS ENDED DECEMBER 31,-------------
                                          ---------------------------         ---------------------------------------             
                                             1997         1996          1996        1995          1994         1993        1992
                                          ----------   ----------   ----------   ----------   ----------   ----------   ----------
<S>                                       <C>          <C>          <C>          <C>          <C>          <C>          <C>       
Income and Expense:
  Interest income ......................  $    3,031   $    2,902   $   11,856   $   11,481   $   10,459   $    9,914   $    9,768
  Interest expense .....................       1,436        1,387        5,588        5,557        4,785        4,634        5,053
                                          ----------   ----------   ----------   ----------   ----------   ----------   ----------
  Net interest income ..................       1,595        1,515        6,268        5,924        5,674        5,280        4,715
  Loan loss provision ..................          15           15           80           42          160          105          167
                                          ----------   ----------   ----------   ----------   ----------   ----------   ----------
  Net interest income after loan loss
    provision ..........................       1,580        1,500        6,188        5,882        5,514        5,175        4,548
  Non-interest income ..................         168          152          750          678          569          568          547
  Non-interest expense .................       1,086        1,092        4,450        4,374        3,958        3,763        3,468
                                          ----------   ----------   ----------   ----------   ----------   ----------   ----------
  Income before income taxes ...........         662          560        2,488        2,186        2,125        1,980        1,627
  Income taxes .........................         173          147          664          561          560          497          414
  Change in accounting principle .......           0            0            0            0            0          196            0
                                          ----------   ----------   ----------   ----------   ----------   ----------   ----------
  Net income ...........................         489          413        1,824        1,625        1,565        1,679        1,213
                                          ==========   ==========   ==========   ==========   ==========   ==========   ==========

Per Share: (1)
  Net income after change in accounting
    principle (2) ......................  $      .35   $      .30   $     1.33   $     1.19   $     1.35   $     1.51   $     1.09
  Cash dividends paid ..................         .12          .10          .45          .45          .42          .40          .33
  Average shares outstanding ...........   1,381,751    1,372,724    1,375,875    1,367,595    1,163,199    1,109,837    1,109,602

Average Balance Sheet:
  Loans ................................  $  116,078   $  110,978   $  112,341   $  111,980   $  100,628   $   88,347   $   77,354
  Investments ..........................      35,932       39,108       39,248       37,063       41,410       42,083       38,534
  Other earning assets .................       7,297        2,793        2,849        1,727        2,696        3,659        1,360
  Total assets .........................     167,632      162,025      164,512      157,957      151,752      143,096      129,045
  Deposits .............................     117,525      127,769      117,414      116,495      115,071      117,105      103,500
  Other interest-bearing liabilities ...      17,434       13,544       14,860       11,766       11,014       12,332       12,390
  Shareholders' equity .................      20,255       19,395       19,512       18,067       13,736       12,739       11,972

Balance Sheet Data:
  Loans ................................     116,462      109,416      115,590      111,831      109,800       96,423       82,055
  Investments ..........................      36,820       39,681       37,407       40,384       39,323       44,542       39,448
  Other earning assets .................       6,289        5,242        6,856          385        4,174        3,491        9,885
  Total assets .........................     169,205      164,005      170,086      162,066      157,124      152,386      139,273
  Deposits .............................     128,982      129,251      131,400      128,985      126,864      124,023      113,291
  Other interest-bearing liabilities ...      18,317       14,217       16,951       12,430       11,910       14,317       13,199
  Shareholders' equity .................      20,799       19,601       20,657       19,512       17,650       13,452       12,208

Ratios: (3)
  Return on average assets .............        1.17%        1.02%        1.11%        1.03%        1.03%        1.17%         .94%
  Return on average equity .............        9.66%        8.52%        9.35%        8.99%       11.39%       13.18%       10.13%
  Dividend payout ratio ................       32.78%       33.17%       33.95%       34.35%       36.54%       26.44%       30.17%
  Average equity to average assets ratio       12.08%       11.97%       11.86%       11.44%        9.05%        8.90%        9.28%
</TABLE>

(1) Per share data has been calculated on the weighted average number of shares
    outstanding.
(2) Before cumulative effect of change in accounting principle.
(3) The ratios for the three month period ending March 31 are annualized.





                                       -7-

<PAGE>   10

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 .5% to $169.2 million at March 31, from $170.1 million at
December 31, 1996. Net income increased 18.4% through March 31, 1997 to
$489,000, or $.35 per share, compared to $413,000, or $.30 per share for the
same three month period ended March 31, 1996. Loans increased in 1997 by .75% to
$116.5 million at March 31, from $115.6 million at December 31, 1996.


Results of Operations - For the Three Months Ended March 31, 1997 and March 31,
1996.

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 the three months ended March 31, 1997 was $489,000, or $.35 per
share, as compared to $413,000, or $.30 per share, for the comparable period in
1996. The principal factor for the increase was due to a general increase in net
interest income.

Return on average assets and return on average equity were 1.17% and 9.66%,
respectively, for the three months ended March 31, 1997, as compared to 1.11%
and 9.35%, respectively, for the comparable period in 1996.


Net Interest Income

For the three months ended March 31, 1997, net interest income was $1.6 million
as compared to $1.5 million for the comparable period of 1996. The net interest
margin reflected a favorable increase to 4.22% for the three months ended March
31, 1997 from 4.14% for the comparable period in 1996. Average interest earning
assets at March 31, 1997 increased by 3.79% over March 31, 1996.

Average loans outstanding increased from $111.0 million to $116.1 million or
4.59%, for the three months ended March 31, 1997, as compared to the three
months ended March 31, 1996. The outstanding balance of loans at March 31, 1997,
increased from $115.1 at December 31, 1996 to $116.5 at March 31, 1997. A 4.35%
increase in income on loans from $2.3 million at March 31, 1996 to $2.4 million
at March 31, 1997 was attributable to the benefit derived from adjustable rate
mortgage loans.



                                       -8-

<PAGE>   11


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

<TABLE>
<CAPTION>
                                                                 IN THOUSANDS OF DOLLARS
                                                                 -----------------------
                                                                 MARCH            DECEMBER
                                                                31, 1997          31, 1996
                                                                --------          --------
     <S>                                                         <C>              <C>   
     Past due and non-accrual:
          Days 30 - 89 .............................             $1,328             $  949
          Days 90 plus .............................                400                329
          Non-accrual ..............................                109                109
                                                               --------           --------
                                                                 $1,837             $1,387
                                                               ========           ========
</TABLE>



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 5 above for other details.

The following analysis provides a comparative schedule of loan
maturities/interest rate sensitivities including a schedule of all loans due
after one year by fixed and variable rate categories:

<TABLE>
<CAPTION>
                                                             IN THOUSANDS OF DOLLARS
                                                             -----------------------
       MATURITY AND REPRICING DATA FOR LOANS AND LEASES          MARCH    DECEMBER
           (EXCLUDING THOSE IN NON-ACCRUAL STATUS)             31, 1997   31, 1996
           ---------------------------------------             --------   --------
<S>                                                           <C>       <C>  
Fixed rate loans & leases with a remaining maturity of:
  Three months or less .....................................  $  3,179  $  2,694
  Over three months through 12 months ......................     7,262     7,327
  Over one year through five years .........................    15,345    25,474
  Over five years ..........................................    12,285     3,182
                                                              --------  --------
       Total Fixed Rate Loans and Leases ...................  $ 38,071  $ 38,677
                                                              --------  --------

Floating rate loans & leases with a repricing frequency of:
  Quarterly or more frequently .............................  $ 22,051  $ 16,061
  Annually or more frequently, but less frequently than
    quarterly ..............................................    15,342     3,741
  Every five years or more frequently, but less frequently
    than annually ..........................................    41,350    57,455
                                                              --------  --------
       Total Floating Rate Loans and Leases ................  $ 78,743  $ 77,257
                                                              --------  --------
       Total Loans and Leases ..............................  $116,814  $115,934
                                                              ========  ========
</TABLE>


Income from investment securities reflects a 7.64% decrease comparing $532,000
for the three months ended March 31, 1997, and $576,000 for the comparable
period of 1996. The average balance of investment securities for the three
months ended March 31, 1997 decreased 8.18% to $35.9 million, compared to the
$39.1 million for the same period of 1996.

Total interest expense increased $49,000 or 3.53% for the first three months of
1997, as compared to the three months of 1996. This increase in interest expense
reflects the shift from lower yielding money market deposits to higher yielding
certificates of deposit as reflected in the average balance sheet. In addition
short-term borrowings, consisting mostly of repurchase agreements, increased
8.34% from $16.7 million at March 31, 1996 to $18.1 million at March 31, 1997
resulting in the related interest expense increasing by $53,000 from $165,000 at
March 31, 1996 to $218,000 at March 31, 1997.






                                          -9-

<PAGE>   12

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>
                                                 ------------MARCH 1997-----------    -----------MARCH 1996------------
                                                               INTEREST    AVERAGE                 INTEREST     AVERAGE
                                                   AVERAGE      INCOME/     YIELD/     AVERAGE      INCOME/      YIELD/
   ASSETS:                                       BALANCE(1)   EXPENSE(2)     RATE     BALANCE(1)   EXPENSE(2)     RATE
                                                 ----------   ----------   -------    ----------   ----------   -------
<S>                                              <C>          <C>          <C>       <C>          <C>          <C>  
Interest bearing deposits with other financial
  institutions ...............................    $  4,297      $   55      5.12%     $  2,793      $   37       5.30%
Investment securities:                                                                 
  U.S. government securities .................      24,031         366      6.09%       26,765         399       5.96%
  State and municipal obligations (3) ........       9,473         128      8.19%        8,852         118       8.08%
  Other securities ...........................       2,428          38      6.26%        3,491          59       6.76%
                                                  --------      ------     -----      --------      ------      ------ 
Total Investment Securities ..................    $ 35,932      $  532      5.92%     $ 39,108      $  576       5.89%
Federal funds sold ...........................       3,000          37      4.93%          608           8       5.26%
Consumer .....................................       8,787         204      9.29%        8,305         203       9.78%
Dealer floor plan ............................       1,648          35      8.50%            0           0        .00%
Mortgage .....................................      96,846       1,943      8.03%       94,995       1,909       8.04%
Commercial ...................................       6,498         190     11.70%        6,021         144       9.57%
Tax free (3) .................................       2,299          35      9.23%        1,657          25       9.14%
                                                  --------      ------     -----      --------      ------      ------ 
Total loans ..................................    $116,078      $2,407      8.29%     $110,978      $2,281       8.22%
Total interest earning assets ................     159,307       3,031      7.61%      153,487       2,902       7.56%
                                                  --------      ------     -----      --------      ------      ------ 
Reserve for loan losses ......................    $   (914)                           $   (913)               
Cash and due from banks ......................       1,108                               1,603                
Other assets .................................       8,131                               7,848                
                                                  --------                            --------     
Total assets .................................    $167,632                            $162,025                
                                                  ========                            ========
                                                                                     
LIABILITIES AND CAPITAL:                                                             
SUPER NOW deposits ...........................    $ 19,216      $  100      2.08%     $ 19,267      $  107       2.22%
IRA ..........................................       8,080         100      4.95%        8,276         103       4.98%
Money market deposits ........................      12,901          94      2.91%       14,090         105       2.98%
Savings deposits .............................      21,875         144      2.63%       24,835         178       2.87%
Time deposits over $100,000 ..................      12,083         175      5.79%        9,972         152       6.10%
Other time deposits ..........................      43,370         601      5.54%       40,911         568       5.55%
                                                  --------      ------     -----      --------      ------      ------ 
Total interest bearing deposits ..............    $117,525      $1,214      4.13%     $117,351      $1,213       4.13%
                                                  --------      ------     -----      --------      ------      ------ 
Other borrowed funds .........................         535           7      5.23%          550           8       5.82%
Long-term borrowings .........................         290           4      5.52%          350           9      10.29%
Repurchase agreements ........................      16,609         211      5.08%       12,644         157       4.97%
                                                  --------      ------     -----      --------      ------      ------ 
Total interest bearing liabilities ...........    $134,959      $1,436      4.26%     $130,895      $1,387       4.24%
                                                  --------      ------     -----      --------      ------      ------ 
Demand deposits ..............................    $ 11,197                            $ 10,418                
Other liabilities ............................       1,221                               1,317                
Stockholders' equity .........................      20,255                              19,395                
                                                  --------                            --------
Total liabilities and capital ................    $167,632                            $162,025                
                                                  ========                            ========
                                                                                     
NET INTEREST INCOME/NET INTEREST MARGIN (4) ..                  $1,595      4.00%                   $1,515       3.95%
                                                                ======     =====                    ======      ====== 
TAX EQUIVALENT NET INTEREST INCOME/                                                  
 NET INTEREST MARGIN (5) .....................                  $1,679      4.22%                   $1,588       4.14%
                                                                ======     =====                    ======      ====== 
</TABLE>





                                      -10-

<PAGE>   13

(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
    1997 and 1996.



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 three month period ending March 31, 1997, the provision for loan losses
was $15,000, compared to the same amount for the corresponding period in 1996.


Non-Interest Income

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

<TABLE>
<CAPTION>
                                                               THREE MONTHS ENDED
                                                                    MARCH 31,
                                                               ------------------ 
                                                                1997        1996
                                                                ----        ----
                                                             (Dollars in Thousands)
<S>                                                            <C>          <C> 
Service charges and fees .............................         $133         $119
Trust department income ..............................           21           18
Investment securities gain (loss) - net ..............            0            0
Other ................................................           14           15
                                                               ----         ----
     Total ...........................................         $168         $152
                                                               ====         ====
</TABLE>

For the three months ended March 31, 1997, total non-interest income increased
$16,000, to $168,000, compared with $152,000 for the three months ended March
31, 1996. The reason for the improvement was due to a positive increase in
service charges and fees of $14,000 and trust income of $3,000.






                                      -11-

<PAGE>   14

Non-Interest Expenses

Generally, non-interest expense accounts for the costs 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>
                                                            THREE MONTHS ENDED
                                                                 MARCH 31,
                                                            ------------------    
                                                           1997            1996
                                                           ----            ----
                                                           (Dollars in Thousands)
<S>                                                       <C>             <C>   
Salaries and wages .............................          $  423          $  412
Employee benefits ..............................             152             156
Net occupancy expense ..........................              94              95
Furniture and equipment expense ................             103              81
FDIC insurance .................................               5               1
State shares tax ...............................              36              32
Other expense ..................................             273             315
                                                          ------          ------
     Total .....................................          $1,086          $1,092
                                                          ======          ======
</TABLE>


Non-interest expenses remained comparable at $1.1 million for the periods ending
March 31, 1997 and 1996. Items accounting for major increases were salaries and
wages of $412,000 in 1996 to $423,000 in 1997 and furniture and equipment
expenses of $81,000 in 1996 to $103,000 in 1997. Furniture and equipment expense
increased 27.16% over 1996 for service on equipment and depreciation on newly
acquired data processing equipment and furnishings for new offices.

Other expense, on the other hand, decreased at March 31, 1997 to $273,000 from
$315,000 at March 31, 1996. Major decreases in this category were postage
expense, which decreased $15,000 from $37,000 at March 31, 1996 to $22,000 at
March 31, 1997 and forms and supplies expense, which decreased $17,000 from
$48,000 at March 31, 1996 to $31,000 at March 31, 1997. Both of these decreases
are generally attributable to costs associated with the computer conversion.


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 shareholders, 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.



                                      -12-

<PAGE>   15



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

<TABLE>
<CAPTION>
                                                 MARCH 31, 1997           DECEMBER 31, 1996
                                                 --------------           -----------------
                                                             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           22.13%        4.00%        21.74%        4.00%
Total Qualifying Capital to
  risk-weighted assets ...............           23.40%        8.00%        22.70%        8.00%
</TABLE>


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


<TABLE>
<CAPTION>
                                                            MARCH           DECEMBER
                                                          31, 1997          31, 1996
                                                          --------          --------
<S>                                                        <C>               <C>   
Tier I Capital to total assets .............               11.49%            11.73%
Tier II Capital to total assets ............               11.98%            12.27%
</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.













                                        -13-




<PAGE>   16

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

Columbia County Farmers National Bank has entered into a three year agreement
with INVEST Financial Corporation to provide securities and insurance products
to customers.


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


















                                      -14-


<PAGE>   17


                                   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/ Paul E. Reichart
                                             -------------------------------   
                                             Paul E. Reichart
                                             President & CEO

                                          Date: May 7, 1997




                                          By /s/ Virginia D. Kocher
                                             -------------------------------
                                             Virginia D. Kocher
                                             Treasurer

                                             Date: May 7, 1997














                                      -15-