<PAGE>
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                    FORM 10-Q

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

For the quarterly period ended September 30, 2003


[ ]   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. 1,274,541 shares of $1.25
(par) common stock were outstanding as of October 20, 2003.
<PAGE>
                       CCFNB BANCORP, INC. AND SUBSIDIARY

                               SEPTEMBER 30, 2003

                                   INDEX 10-Q

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


        - Consolidated Balance Sheets                                       1


        - Consolidated Statements of Income                                 2


        - Consolidated Statements of Cash Flows                             3


        - Notes to Consolidated Financial Statements                      4 - 14


        - Report of Independent Certified Public Accountants               15


        - Management's Discussion and Analysis of Consolidated
          Financial Condition and Results of Operations                  16 - 22


        - Controls and Procedures                                          23



PART II - OTHER INFORMATION                                                24



SIGNATURES                                                               25 - 28
</TABLE>
<PAGE>
CCFNB BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                  SEPTEMBER   DECEMBER
                                                                  30, 2003    31, 2002
                                                                  UNAUDITED
                                                                  --------    --------
<S>                                                               <C>         <C>
ASSETS
Cash and due from banks.......................................    $  4,853    $  5,953
Interest-bearing deposits with other banks....................       1,479       8,010
Federal funds sold............................................       2,023       2,057
Investment securities:
  Securities Available-for-Sale...............................      64,969      53,527
Loans, net of unearned income.................................     149,783     151,338
Allowance for loan losses.....................................       1,444       1,298
                                                                  --------    --------
  Net loans...................................................    $148,339    $150,040
Premises and equipment........................................       4,299       4,415
Other real estate owned.......................................          43          68
Cash surrender value life insurance...........................       5,825       3,627
Accrued interest receivable...................................         780         894
Other assets..................................................         704         441
                                                                  --------    --------
     TOTAL ASSETS.............................................    $233,314    $229,032
                                                                  ========    ========

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
Deposits:
  Non-interest bearing........................................    $ 16,493    $ 15,238
  Interest bearing............................................     156,573     156,889
                                                                  --------    --------
     Total Deposits...........................................    $173,066    $172,127
Short-term borrowings.........................................      20,532      17,274
Long-term borrowings..........................................      11,338      11,347
Accrued interest and other expenses...........................       1,252       1,332
Other liabilities.............................................          20         112
                                                                  --------    --------
     TOTAL LIABILITIES........................................    $206,208    $202,192
                                                                  --------    --------

STOCKHOLDERS' EQUITY
Common stock, par value $1.25 per share; authorized
  5,000,000 shares; issued and outstanding 1,274,541 shares
  in 2003 and 1,292,724 shares in 2002........................    $  1,593    $  1,616
Surplus.......................................................       3,584       4,009
Retained earnings.............................................      21,613      20,679
Accumulated other comprehensive income (loss).................         316         536
                                                                  --------    --------
     TOTAL STOCKHOLDERS' EQUITY...............................    $ 27,106    $ 26,840
                                                                  --------    --------
     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY...............    $233,314    $229,032
                                                                  ========    ========
</TABLE>


See accompanying notes to Consolidated Financial Statements.


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

<TABLE>
<CAPTION>
                                                   FOR THE NINE          FOR THE THREE
                                                   MONTHS ENDING         MONTHS ENDING
                                                   SEPTEMBER 30,         SEPTEMBER 30,
                                                   -------------         -------------
                                                   2003      2002        2003      2002
                                                 --------  --------   --------  --------
<S>                                              <C>       <C>        <C>       <C>
INTEREST INCOME
Interest and fees on loans:
  Taxable......................................  $  6,839  $  7,514   $  2,215  $  2,507
  Tax-exempt...................................       153       108         60        43
Interest and dividends on investment securities:
  Taxable interest.............................       877     1,314        268       413
  Tax-exempt interest..........................       479       611        139       202
  Dividends....................................        45        44         17        14
Interest on federal funds sold.................        40        41         11        22
Interest on deposits in other banks............        41        52          8        19
                                                 --------  --------   --------  --------
     TOTAL INTEREST INCOME.....................  $  8,474  $  9,684   $  2,718  $  3,220
                                                 --------  --------   --------  --------

INTEREST EXPENSE
Interest on deposits...........................  $  2,690  $  3,557   $    782  $  1,205
Interest on short-term borrowings..............       209       258         65        88
Interest on long-term borrowings...............       508       509        171       172
                                                 --------  --------   --------  --------
     TOTAL INTEREST EXPENSE....................  $  3,407  $  4,324   $  1,018  $  1,465
                                                 --------  --------   --------  --------

Net interest income............................  $  5,067  $  5,360   $  1,700  $  1,755
Provision for loan losses......................       150       264         50       205
                                                 --------  --------   --------  --------
     NET INTEREST INCOME AFTER PROVISION FOR
     LOAN LOSSES...............................  $  4,917  $  5,096   $  1,650  $  1,550
                                                 --------  --------   --------  --------

NON-INTEREST INCOME
Service charges and fees.......................  $    507  $    487   $    166  $    161
Trust department income........................        95       151         32        48
Securities gains - net.........................         8       107          8       107
Bank-owned life insurance income...............       165        55         13         6
Other income...................................       359        88        198        52
                                                 --------  --------   --------  --------
     TOTAL NON-INTEREST INCOME.................  $  1,134  $    888   $    417  $    374
                                                 --------  --------   --------  --------

NON-INTEREST EXPENSES
Salaries and wages.............................  $  1,647  $  1,638   $    562  $    563
Pensions and other employee benefits...........       585       566        203       193
Occupancy expense, net.........................       290       268         98        88
Furniture and equipment expense................       357       442        124       141
Other operating expenses.......................     1,191     1,162        399       404
                                                 --------  --------   --------  --------
     TOTAL NON-INTEREST EXPENSES...............  $  4,070  $  4,076   $  1,386  $  1,389
                                                 --------  --------   --------  --------

Income before income taxes.....................  $  1,981  $  1,908   $    681  $    535
Income tax expense.............................       420       419        146       101
                                                 --------  --------   --------  --------
     NET INCOME................................  $  1,561  $  1,489   $    535  $    434
                                                 ========  ========   ========  ========
PER SHARE DATA
Net income.....................................  $   1.22  $   1.13   $    .42  $    .33
Cash dividends.................................  $    .49  $    .47   $    .17  $    .16
Weighted average shares outstanding............ 1,283,475 1,312,811  1,283,475 1,312,811
</TABLE>


See accompanying notes to Consolidated Financial Statements.


                                       -2-
<PAGE>
CCFNB BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
UNAUDITED
<TABLE>
<CAPTION>
                                                                         FOR THE NINE
                                                                         MONTHS ENDING
                                                                         SEPTEMBER 30,
                                                                         -------------
                                                                        2003      2002
                                                                     --------   --------
<S>                                                                  <C>        <C>
OPERATING ACTIVITIES
Net income........................................................   $  1,561   $  1,489
Adjustments to reconcile net income to net cash provided by
 operating activities:
   Provision for loan losses......................................        150        264
   Depreciation and amortization..................................        293        361
   Premium amortization on investment securities..................        448        149
   Discount accretion on investment securities....................        (24)       (17)
   Deferred income taxes (benefit)................................        (75)      (114)
   (Gain) on sale of mortgage loans...............................        (92)         0
   (Gain) on sales of investment securities.......................         (8)      (107)
   Proceeds from sale of mortgage loans...........................      8,178          0
   Originations of mortgage loans for resale......................     (8,086)         0
   (Gain) on sale of other real estate owned......................        (12)         0
   (Gain) loss from investment in insurance agency................         (4)         6
   (Increase) decrease in accrued interest receivable and
     other assets.................................................        (20)        96
   Net increase in cash surrender value of bank-owned life
     insurance....................................................       (198)       (62)
   Increase (decrease) in accrued interest, other expenses and
     other liabilities............................................       (116)       (15)
                                                                     --------   --------
     NET CASH PROVIDED BY OPERATING ACTIVITIES....................   $  1,995   $  2,050
                                                                     --------   --------

INVESTING ACTIVITIES
Purchase of investment securities Available-for-Sale..............   $(45,199)  $(26,130)
Proceeds from sales, maturities and redemptions of investment
  securities Available-for-Sale...................................     33,015     26,042
Net (increase) decrease in loans..................................      1,551     (7,736)
Purchases of premises and equipment...............................       (177)      (250)
Proceeds from sale of other real estate owned.....................         37          0
Purchase of bank owned life insurance policies....................     (2,000)         0
                                                                     --------   --------
     NET CASH (USED IN) INVESTING ACTIVITIES......................   $(12,773)  $ (8,074)
                                                                     --------   --------

FINANCING ACTIVITIES
Net increase (decrease) in deposits...............................   $    939   $ 12,870
Net increase (decrease) in short-term borrowings..................      3,258     (1,480)
Net increase (decrease) in long-term borrowings...................         (9)        (7)
Acquisition of treasury stock.....................................       (588)       135
Proceeds from issuance of common stock............................        140       (675)
Cash dividends paid...............................................       (627)      (615)
                                                                     --------   --------
     NET CASH PROVIDED BY FINANCING ACTIVITIES....................   $  3,113   $ 10,228
                                                                     --------   --------

     INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS.............   $ (7,665)  $  4,204

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD..................     16,020      8,518
                                                                     --------   --------
      CASH AND CASH EQUIVALENTS AT END OF PERIOD..................   $  8,355   $ 12,722
                                                                     ========   ========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the year for:
  Interest........................................................   $  3,543   $  4,353
  Income taxes....................................................   $    440   $    532
</TABLE>


See accompanying notes to Consolidated Financial Statements.


                                       -3-
<PAGE>
CCFNB BANCORP, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2003



NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

         PRINCIPLES OF CONSOLIDATION

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

         NATURE OF OPERATIONS & LINES OF BUSINESS

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

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

         On December 19, 2000 the Corporation became a Financial Holding Company
         by having filed an election to do so with the Federal Reserve Board.
         The Financial Holding Company status was required in order to acquire
         an interest in a local insurance agency that occurred during January
         2001.

         USE OF ESTIMATES

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


                                       -4-
<PAGE>
         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.

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

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

         LOANS

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

         Real estate mortgage loans originated for resale are sold with limited
         recourse to the Corporation.

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


                                       -5-
<PAGE>
         NON-ACCRUAL LOANS - Generally, a loan is classified as non-accrual,
         with the accrual of interest on such a loan discontinued when the
         contractual payment of principal or interest has become 90 days past
         due or management has serious doubts about further collectibility of
         principal or interest, even though the loan currently is performing. A
         loan may remain on accrual status if it is in the process of collection
         and is either guaranteed or well secured. When a loan is placed on
         non-accrual status, unpaid interest credited to income in the current
         year is reversed, and unpaid interest accrued in prior years is charged
         against the allowance for loan losses. Certain non-accrual loans may
         continue to perform, wherein, payments are still being received with
         those payments generally applied to principal. Non-accrual loans remain
         under constant scrutiny and if performance continues, interest income
         may be recorded on a cash basis based on management's judgement as to
         collectibility of principal.

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

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

         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.

         DERIVATIVES

         The Bank has outstanding loan commitments that relate to the
         origination of mortgage loans that will be held for resale. Pursuant to
         Statement of Financial Accounting Standards (SFAS) No. 133 "Accounting
         for Derivative Instruments and Hedging Activities" as amended by SFAS
         No. 138, "Accounting for Certain Derivative Instruments and Certain
         Hedging Activities", and SFAS No. 149 "Amendments to SFAS 133 on
         Derivative Instruments and Hedging Activities" and the guidance
         contained in the Derivatives Implementation Group Statement 133
         Implementation Issue No. C 13, the Bank has accounted for such loan
         commitments as derivative instruments. The effective date of the
         implementation guidance was the first day of the first fiscal quarter
         beginning after April 10, 2002. The outstanding loan commitments in
         this category did not give rise to any losses for the period ended
         September 30, 2003 and the year ended December 31, 2002, as the fair
         market value of each outstanding loan commitment exceeded the Bank's
         cost basis in each loan commitment.


                                       -6-
<PAGE>
         PREMISES AND EQUIPMENT

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

         MORTGAGE SERVICING RIGHTS

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

         OTHER REAL ESTATE OWNED

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

         BANK OWNED LIFE INSURANCE

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

         INVESTMENT IN INSURANCE AGENCY

         On January 2, 2001, the Corporation acquired a 50% interest in a local
         insurance agency, a corporation organized under the laws of the
         Commonwealth of Pennsylvania. The income or loss from this investment
         is accounted for under the equity method of accounting. The carrying
         value of this investment as of September 30, 2003 and December 31, 2002
         was $169,466 and $165,431, respectively, and is carried in other assets
         in the accompanying consolidated balance sheets.


                                       -7-
<PAGE>
         INCOME TAXES

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

         PER SHARE DATA

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

         CASH FLOW INFORMATION

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

         TRUST ASSETS AND INCOME

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

         SEGMENT REPORTING

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


                                       -8-
<PAGE>
         Management does not separately allocate expenses, including the cost of
         funding loan demand, between the commercial, retail, trust and
         investment center operations of the Corporation. As such, discrete
         financial information is not available and segment reporting would not
         be meaningful.

         RECENT ACCOUNTING PRONOUNCEMENTS

         Statement of Financial Accounting Standards (SFAS) No. 142, "Goodwill
         and Other Intangible Assets" is generally effective for fiscal years
         beginning after December 31, 2001, and addresses the financial
         accounting and reporting for acquired goodwill and other intangible
         assets and replaces APB Opinion No. 17 "Intangible Assets". The
         statement addresses how intangible assets that are acquired
         individually or with a group or other assets (but not those acquired in
         a business combination) should be accounted for in financial statements
         upon their acquisition. Goodwill and other intangible assets with an
         indefinite useful life should not be amortized but should be tested for
         impairment at least annually. Intangibles that are separable from
         goodwill and that have a determinable useful life should be amortized
         over the determinable useful life. The standard does not have any
         impact on the Corporation's consolidated financial condition or results
         of operations.

         Statement of Financial Accounting Standards (SFAS) No. 143 "Accounting
         for Asset Retirement Obligations" is generally effective for financial
         statements for fiscal years beginning after June 15, 2002. The
         statement addresses financial accounting and reporting for obligations
         associated with the retirement of tangible long-lived assets and the
         associated asset retirement costs. It applies to legal obligations
         associated with the retirement of long-lived assets that result from
         the acquisition, construction development and (or) the normal operation
         of a long-lived asset. The Statement requires that the fair value of a
         liability for an asset retirement obligation be recognized in the
         period in which it is incurred if a reasonable estimate of fair value
         can be made. The associated asset retirement costs are capitalized as
         part of the carrying amount of the long-lived asset. This standard is
         not expected to have any impact on the Corporation's consolidated
         financial condition or results of operations.

         Statement of Financial Accounting Standards (SFAS) No. 144, "Accounting
         for Impairment or Disposal of Long-Lived Assets" is generally effective
         for financial statements issued for fiscal years beginning after
         December 15, 2001, and for interim periods within those fiscal years.
         The statement addresses financial accounting and reporting for the
         impairment or disposal of long-lived assets. The statement replaces
         FASB Statement No. 121, "Accounting for the Impairment of Long-Lived
         Assets and for Long-Lived Assets to be Disposed Of", and the accounting
         and reporting provisions of APB Opinion No. 30, "Reporting the Results
         of Operations - Reporting the Effects of Disposal of a Segment of a
         Business, and Extraordinary, Unusual and Infrequently Occurring Events
         and Transactions", for the disposal of a "segment of a business" (as
         previously defined in that opinion). The statement also amends ARB No.
         51, "Consolidated Financial Statements", to eliminate the exception to
         consolidation for a subsidiary for which control is likely to be
         temporary. This standard does not have any impact on the Corporation's
         consolidated financial conditions or results of operations.


                                       -9-
<PAGE>
         Statement of Financial Accounting Standards (SFAS) No. 145, "Recession
         of FASB Statements No. 4, 44 and 64, Amendment of FASB Statement No. 13
         and Technical Corrections" is generally effective for financial
         statements issued on or after May 15, 2002. The statement rescinds FASB
         Statement No. 4, "Reporting Gains and Losses from Extinguishment of
         Debt", and an amendment of that statement, FASB Statement No. 64,
         "Extinguishments of Debt Made to Satisfy Sinking-Fund Requirements".
         The statement amends FASB Statement No. 13, "Accounting for Leases", to
         eliminate an inconsistency between the required accounting for
         sale-leaseback transactions and the required accounting for certain
         lease modifications that have economic effects that are similar to
         sale-leaseback transactions. The statement also amends other existing
         authoritative pronouncements to make various technical corrections,
         clarify meanings, or describe their applicability under changed
         conditions. This standard does not have any impact on the Corporation's
         consolidated financial condition or results of operations.

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

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

         Statement of Financial Accounting Standards (SFAS) No. 150 "Accounting
         for Certain Financial Instruments with Characteristics of Both
         Liabilities and Equity" is generally effective for financial
         instruments entered into or modified after May 31, 2003 and for
         contracts in existence at the start of the first interim period
         beginning after June 15, 2003. This Statement establishes new standards
         for classification, measurement and disclosure of certain types of
         financial instruments having characteristics of both liabilities and
         equity, including instruments that are mandatorily redeemable and that
         embody obligations requiring or permitting settlement by transferring
         assets or by issuing an entity's own shares. This standard does not
         have any impact on the Corporation's consolidated financial position or
         results of operations.


                                      -10-
<PAGE>
         ADVERTISING COSTS

         It is the Corporation's policy to expense advertising costs in the
         period in which they are incurred. Advertising expense for the periods
         ended September 30, 2003 and September 30, 2002, were approximately
         $54,238 and $54,194, respectively.

         RECLASSIFICATION

         Certain amounts in the consolidated financial statements of the prior
         years have been reclassified to conform with presentation used in the
         2003 consolidated financial statements. Such reclassifications had no
         effect on the Corporation's consolidated financial condition or net
         income.

NOTE 2 - ALLOWANCE FOR LOAN LOSSES

         Changes in the allowance for loan losses for the periods ended
         September 30, 2003 and September 30, 2002 were as follows:

<TABLE>
<CAPTION>
                                                              (Amounts in Thousands)
                                                              ----------------------
                                                                 2003        2002
                                                                 ----        ----
<S>                                                            <C>         <C>
         Balance, beginning of year.........................   $  1,298    $  1,028
         Provision charged to operations....................        150         264
         Loans charged-off..................................        (44)        (65)
         Recoveries.........................................         40          52
                                                               --------    --------
         Balance, September 30..............................   $  1,444    $  1,279
                                                               ========    ========
</TABLE>

         At September 30, 2003 the recorded investment in loans that are
         considered to be impaired as defined by SFAS No. 114 was $239,280. No
         additional charge to operations was required to provide for the
         impaired loans since the total allowance for loan losses is estimated
         by management to be adequate to provide for the loan loss allowance
         required by SFAS No. 114 along with any other potential losses.

         At September 30, 2003, there were no significant commitments to lend
         additional funds with respect to non-accrual and restructured loans.

         There were no real estate loans held for resale at September 30, 2003
         and December 31, 2002.

         Non-accrual loans at September 30, 2003 and December 31, 2002 were
         $2,142,000 and $2,122,000, respectively.

         Loans past due 90 days or more and still accruing interest amounted to
         $392,000 at September 30, 2003.

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.


                                      -11-
<PAGE>
NOTE 4 - LONG-TERM BORROWINGS

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

NOTE 5 - DEFERRED COMPENSATION PLANS

         In April 2003 the Bank entered into non-qualified deferred compensation
         agreements with three executive officers to provide supplemental
         retirement benefits commencing with the executive's retirement and
         ending 15 years thereafter. The aggregate commitment under these
         agreements is $2,400,000, and the expected charge to operations to fund
         such plans for the year ending December 31, 2003 is estimated to be
         approximately $48,775.

         There were no substantial changes in other plans as disclosed in the
         2002 Annual Report.

NOTE 6 - STOCKHOLDERS' EQUITY

         Changes in stockholders' equity for the period ended September 30, 2003
         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, 2003.........  1,292,724    $ 1,616    $ 4,009     $     0       $20,679      $   536       $    0    $26,840
Comprehensive Income:
 Net income........................          0          0          0       1,561         1,561            0            0      1,561
 Change in unrealized gain (loss)
  on investment securities
  available-for-sale net of
  reclassification adjustment
  and tax effects..................          0          0          0        (220)            0         (220)           0       (220)
                                                                         -------
  TOTAL COMPREHENSIVE INCOME (LOSS)                                      $ 1,341
                                                                         =======
Issuance of 5,805 shares of common
  stock under dividend reinvestment
  and stock purchase plans.........      5,805          7        133                         0            0            0        140
Purchase of 23,988 shares of
  treasury stock...................          0          0          0                         0            0         (588)      (588)
Retirement of 23,988 shares of
  treasury stock...................    (23,988)       (30)      (558)                        0            0          588          0
Cash dividends $.49 per share......          0          0          0                      (627)           0            0       (627)
                                     ---------    -------    -------                   -------      -------       ------    -------
Balance at September 30, 2003......  1,274,541    $ 1,593    $ 3,584                   $21,613      $   316       $    0    $27,106
                                     =========    =======    =======                   =======      =======       ======    =======
</TABLE>


                                      -12-
<PAGE>
NOTE 7 - FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK AND CONCENTRATIONS OF
         CREDIT RISK

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

         The Corporation may require collateral or other security to support
         financial instruments with off-balance sheet credit risk. The contract
         or notional amounts at September 30, 2003 and December 31, 2002 were as
         follows:

<TABLE>
<CAPTION>
                                                               (Amounts in Thousands)
                                                               ----------------------
                                                               SEPTEMBER     DECEMBER
                                                               30, 2003      31, 2002
                                                               --------      --------
<S>                                                           <C>          <C>
         FINANCIAL INSTRUMENTS WHOSE CONTRACT AMOUNTS
          REPRESENT CREDIT RISK:
           Commitments to extend credit.....................  $11,932,136  $11,768,038
           Financial standby letters of credit..............    1,841,212    1,842,578
           Performance standby letters of credit............      159,812       48,404
           Dealer floor plans...............................    1,928,097    1,393,763
</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.


                                      -13-
<PAGE>
         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.

         The Corporation granted commercial, consumer and residential loans to
         customers within Pennsylvania. Of the total loan portfolio at September
         30, 2003, 80.6% was for real estate loans, principally residential. It
         was the opinion of management that the high concentration did not pose
         an adverse credit risk. Further, it was management's opinion that the
         remainder of the loan portfolio was balanced and diversified to the
         extent necessary to avoid any significant concentration of credit.

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

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

         The results of operations for the nine-month period ended September 30,
         2003, are not necessarily indicative of the results to be expected for
         the full year.

         These consolidated interim financial statements have been prepared in
         accordance with requirements of Form 10Q and therefore do not include
         all disclosures normally required by accounting principles generally
         accepted in the United States of America applicable to financial
         institutions as included with consolidated financial statements
         included in the Corporation's annual Form 10K filing. The reader of
         these consolidated interim financial statements may wish to refer to
         the Corporation's annual report or Form 10K for the period ended
         December 31, 2002, filed with the Securities and Exchange Commission.


                                      -14-
<PAGE>
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 September 30, 2003, and the related consolidated
statements of income and cash flows for the three and nine month periods ended
September 30, 2003 and 2002. These consolidated interim financial statements are
the responsibility of the management of CCFNB Bancorp, Inc. and Subsidiary.

We conducted our reviews 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 and
making inquiries of persons responsible for financial and accounting matters. It
is substantially less in scope than an audit conducted in accordance with
auditing standards generally accepted in the United States of America, the
objective of which is the expression of an opinion regarding the financial
statements taken as a whole. Accordingly, we do not express such an opinion.

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

We have previously audited, in accordance with auditing standards generally
accepted in the United States of America, the consolidated balance sheet of
CCFNB Bancorp, Inc. and Subsidiary as of December 31, 2002, and the related
consolidated statements of income, stockholders' equity, and cash flows for the
year then ended (not presented herein); and in our report dated January 20,
2003, we expressed an unqualified opinion on those consolidated financial
statements. In our opinion, the information set forth in the accompanying
consolidated balance sheet as of December 31, 2002, is fairly stated, in all
material respects, in relation to the consolidated balance sheet from which it
has been derived.


/s/ J.H. Williams & Co., LLP

J.H. Williams & Co., LLP
Kingston, Pennsylvania
October 10, 2003


                                      -15-
<PAGE>
                               CCFNB BANCORP, INC.
                                    FORM 10-Q
                      FOR THE QUARTER ENDED SEPTEMBER 2003

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

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

<TABLE>
<CAPTION>
                                           At and For the Nine
                                                Months              At and For the Years
                                           Ended September 30,        Ended December 31,
                                           -------------------        ------------------
                                           2003          2002         2002         2001         2000         1999         1998
                                        ----------    ----------   ----------   ----------   ----------   ----------   ----------
<S>                                     <C>           <C>          <C>          <C>          <C>          <C>          <C>
Income and Expense:
    Interest income ..................  $    8,474    $    9,684   $   12,780   $   13,720   $   13,552   $   12,669   $   12,444
    Interest expense .................       3,407         4,324        5,741        6,924        6,859        6,099        6,072
                                        ----------    ----------   ----------   ----------   ----------   ----------   ----------
    Net interest income ..............       5,067         5,360        7,039        6,796        6,693        6,570        6,372
    Loan loss provision ..............         150           264          309          163           54           78           78
                                        ----------    ----------   ----------   ----------   ----------   ----------   ----------
    Net interest income after loan
      loss Provision .................       4,917         5,096        6,730        6,633        6,639        6,492        6,294
    Non-interest income ..............       1,134           888        1,210        1,149        1,053        1,050          981
    Non-interest expense .............       4,070         4,076        5,479        5,104        4,967        4,818        4,739
                                        ----------    ----------   ----------   ----------   ----------   ----------   ----------
    Income before income taxes .......       1,981         1,908        2,461        2,678        2,725        2,724        2,536
    Income taxes .....................         420           419          539          621          671          685          634
                                        ----------    ----------   ----------   ----------   ----------   ----------   ----------
    Net income .......................  $    1,561    $    1,489   $    1,922   $    2,057   $    2,054   $    2,039   $    1,902
                                        ==========    ==========   ==========   ==========   ==========   ==========   ==========
Per Share:(1)
    Net income .......................  $     1.22    $     1.13   $     1.47   $     1.54   $     1.51   $     1.48   $     1.38
    Cash dividends paid ..............         .49           .47          .63          .59          .56          .51          .46
    Average shares outstanding .......   1,283,475     1,312,811    1,309,084    1,338,007    1,355,624    1,375,572    1,378,339
Average Balance Sheet:
    Loans ............................  $  150,560    $  146,565   $  147,545   $  139,219   $  134,325   $  123,185   $  116,490
    Investments ......................      59,248        54,381       54,197       50,593       47,003       49,827       45,878
    Other earning assets .............       6,785         7,590        5,309        6,569          219        1,638        3,890
    Total assets .....................     231,173       219,015      223,476      208,630      196,727      186,597      177,643
    Deposits .........................     172,596       162,157      150,883      149,601      139,774      138,963      131,366
    Other interest-bearing liabilities      30,246        29,417       29,356       31,629       31,203       23,458       22,660
    Stockholders' equity .............      26,973        26,036       26,615       25,890       23,910       22,874       22,264
Balance Sheet Data:
    Loans ............................  $  149,339    $  150,624   $  151,338   $  142,990   $  137,360   $  134,423   $  118,558
    Investments ......................      64,969        58,015       53,528       57,121       47,311       49,104       48,151
    Other earning assets .............       3,502         6,735       10,068       63,312        4,814        1,343        5,133
    Total assets .....................     233,314       226,610      229,032      214,238      203,054      196,122      185,258
    Deposits .........................     173,066       168,536      172,127      142,990      143,169      138,606      137,679
    Other interest-bearing liabilities      31,870        29,651       28,621       31,384       33,477       33,224       22,709
    Stockholders' equity .............      27,106        26,922       26,840       26,042       25,050       23,047       23,480
Ratios:(2)
    Return on average assets .........         .96%          .95%         .86%         .99%        1.04%        1.09%        1.07%
    Return on average equity .........        7.72%         7.63%        7.22%        7.92%        8.59%        8.91%        8.54%
    Dividend payout ratio ............       40.17%        41.30%       42.86%       38.31%       36.89%       34.09%       33.59%
    Average equity to average
      assets ratio ...................       11.67%        11.89%       11.77%       12.16%       12.34%       11.75%       12.53%
</TABLE>

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

(2)      The ratios for the nine month period ending September 30, 2003 and 2002
         are annualized.

CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS

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


                                       16
<PAGE>
EARNINGS SUMMARY

Net income for the nine months ended September 30, 2003 was $1,561 thousand or
$1.22 per basic and diluted share. These results compare with net income of
$1,489 thousand, or $1.13 per basic and diluted share for the same period in
2002. Annualized return on average equity increased to 7.72 percent from 7.63
percent, while the annualized return on average assets increased to .96 percent
from .95 percent, for the nine months ended September 30, 2003 and 2002
respectively.

Net interest income continues to be the largest source of our operating income.
Net interest income on a tax equivalent basis decreased to $5.4 million at
September 30, 2003, compared with $5.7 million for the nine months ended
September 30, 2002. The decrease in net interest income is primarily due to the
decreased interest rates on loans and the securities that are called in this low
interest rate environment and replaced with lower yielding securities. The tax
equavilized interest margin decreased to 3.32 percent for the nine months ended
September 30, 2003, compared to 3.66 percent for the nine months ended September
30, 2002.

Average interest earning assets increased $8.1 million or 3.9 percent for the
nine months ended September 30, 2003 over the same period in 2002. Average loans
increased $4.0 million or 2.7 percent, average investments increased $4.8
million or 8.8 percent and average federal funds sold and interest-bearing
deposits with other financial institutions decreased .8 million or 10.6 percent
for this nine month period.

Average interest bearing liabilities for the nine months ended September 30,
2003 increased $9.8 million or 5.5 percent from the same period in 2002. Average
short-term borrowings were $18.9 million at September 30, 2003 and $18.1 million
at September 30, 2002. Long-term debt, which includes primarily FHLB advances,
remained at 11.3 million on September 30, 2003 and September 30, 2002. Average
demand deposits increased $1.5 million from 2002 balances.

The average interest rate on total interest earning assets was 5.22 percent for
the nine months ended September 30, 2003, compared with 6.19 percent for the
nine months ended September 30, 2002. The average interest rate for loans
decreased 72 basis points to 6.26 percent at September 30, 2003 compared to 6.98
percent September 30, 2002. Interest-bearing deposits with other Financial
Institutions interest rates decreased 42 basis points to 1.15 percent from 1.57
percent at September 30, 2003 and September 30, 2002 respectively. Average rates
on interest bearing deposits decreased by 92 basis points to 2.29 percent from
3.21 percent one year ago. Average interest rates also decreased on total
interest bearing liabilities by 82 basis points to 2.43 percent from 3.25
percent. The reason for these decreases on interest bearing liabilities was
primarily attributed to the decreasing rates on all deposit liabilities and the
tied-to-prime interest rates paid on repurchase agreements with large customers.

NET INTEREST INCOME

Net interest income decreased to $5.1 million for the nine months ended
September 30, 2003 compared to $5.4 million for the same period in 2002.

The following table reflects the components of net interest income for each of
the nine months ended September 30, 2003 and 2002.

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

AVERAGE BALANCE SHEET AND RATE ANALYSIS
(Dollars in Thousands)

<TABLE>
<CAPTION>
                                                        Nine Months Ended September 30, 2003 and 2002
                                                      Interest       Average                   Interest      Average
                                         Average      Income /       Yield /       Average      Income /     Yield /
                                         Balance       Expense        Rate         Balance      Expense       Rate
                                         -------       -------        ----         -------      -------       ----
                                           (1)           (2)                         (1)          (2)
<S>                                     <C>           <C>            <C>          <C>          <C>           <C>
ASSETS:
Interest-bearing deposits with other
financial institutions .............    $   4,745     $      41          1.15%    $   4,413    $      52         1.57%
Investment securities (3) ..........       59,248         1,401          3.71%       54,381        1,969         5.60%
Federal funds sold .................        2,040            40          2.61%        3,177           41         1.72%
Loans ..............................      150,560         6,992          6.26%      146,565        7,622         6.98%
                                        ---------     ---------                   ---------    ---------

Total interest earning assets ......    $ 216,593     $   8,474          5.22%    $ 208,536    $   9,684         6.19%
                                        ---------     ---------                   ---------    ---------

Reserve for loan losses ............       (1,371)                                   (1,053)
Cash and due from banks ............        5,403                                     2,266
Other assets .......................       10,548                                     9,266
                                        ---------                                 ---------

Total assets .......................    $ 231,173                                 $ 219,015
                                        ---------                                 ---------
</TABLE>


                                       17
<PAGE>
<TABLE>
<S>                                     <C>           <C>                <C>      <C>          <C>               <C>
LIABILITIES AND CAPITAL:
Interest bearing deposits............   $ 156,731     $   2,690          2.29%    $ 147,789    $   3,557         3.21%
Short-term borrowings................      18,903           209          1.49%       18,064          258         1.91%
Long-term borrowings.................      11,343           508          5.97%       11,353          509         5.98%
                                        ---------     ---------                   ---------    ---------

Total interest-bearing liabilities      $ 186,977     $   3,407          2.43%    $ 177,206    $   4,324         3.25%
                                        ---------     ---------                   ---------    ---------

Demand deposits......................     $15,865                                   $14,368
Other liabilities....................       1,358                                     1,405
Stockholders' equity.................      26,973                                    26,036
                                        ---------                                 ---------

Total liabilities and capital........   $ 231,173                                 $ 219,015
                                        ---------                                 ---------

NET INTEREST INCOME /
  NET INTEREST MARGIN (4)............                 $   5,067          3.12%                 $   5,360         3.43%

TAX EQUIVALENT NET INTEREST INCOME /
  NET INTEREST MARGIN (5)............                 $   5,393          3.32%                 $   5,730         3.66%

</TABLE>

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

(2)      Interest on loans includes fee income.

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

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

(5)      Interest and yield are presented on a tax-equivalent basis using 34
         percent for 2003 and 2002.

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

             CHANGE IN NET INTEREST INCOME ON A TAX EQUIVALENT BASIS

<TABLE>
<CAPTION>
                                                               Nine Months Ended September 30, 2003
                                                                        Compared with 2002
                                                                     Increase (Decrease) (2)
                                                                  Volume       Rate       Total
                                                                  ------       ----       -----
Interest income:                                                          (In thousands)
<S>                                                              <C>         <C>         <C>
         Loans (1) ..........................................    $   279     $(1,055)    $  (776)
         Investments ........................................        273      (1,028)       (755)
         Federal  funds sold and other short-term investments        (13)         (3)        (16)

Interest expense:
         Deposits ...........................................    $   287     $(1,360)    $(1,073)
         Short-term borrowings ..............................         16         (78)        (62)
         Long term debt .....................................         (1)         (1)         (2)

Net: ........................................................    $   237     $  (647)    $  (410)
</TABLE>

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

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

Average interest earning assets at September 30, 2003 increased by 3.9 percent
over September 30, 2002 to $216.6 million from $208.5 million.

Average loans outstanding increased from $146.6 million to $150.6 million or 2.7
percent for the nine months ended September 30, 2003, as compared to the nine
months ended September 30, 2002.

The outstanding balance of net loans at September 30, 2003 was $148.3 million
compared to $150.0 million at December 31, 2002.

Interest income from investment securities decreased 30.0% from $2.0 million for
the nine months ended September 30, 2002 to $1.4 million for the nine months
ended September 30, 2003. The average balance of investment securities for the
nine months ended September 30, 2003 increased 8.8 percent to $59.2 million,
compared to the $54.4 million for the same period of 2002.

Total interest expense decreased $.9 million or 20.9 percent for the first nine
months of 2003 as compared to the first nine months of 2002. The cost of
interest bearing liabilities decreased on an average yield basis from 3.25
percent through September 2002 compared to 2.43 percent through September 2003.
The average yield on interest earning assets decreased from 6.19 percent to 5.22
percent through September 2002 and 2003, respectively.

Average short-term borrowings increased $.8 million from $18.1 million at
September 30, 2002 to $18.9 million at September 30, 2003.

Long-term borrowings from Federal Home Loan Bank remained constant at an average
$11.3 million at September 30, 2003 and 2002.

NON-INTEREST INCOME

The following table presents the components of non-interest income for the nine
months ended September 30, 2003 and 2002.


                                       18
<PAGE>
<TABLE>
<CAPTION>
                                                              Nine Months Ended
                                                                September 30,
                                                                (In thousands)
                                                                --------------
                                                               2003        2002
                                                              ------      ------
<S>                                                           <C>         <C>
Service charges and fees ...............................      $  507      $  487
Trust Department income ................................          95         151
 Investment Securities Gain - net ......................           8         107
Gain on Sale of Loans ..................................          92           0
Gain on Sale of Other Real Estate Owned ................          12           0
Gain on Cash Surrender Value Life Insurance ............         165          13
Mortgage Servicing Rights, net of amortization .........          72           0
Third party brokerage income ...........................          74          71
Other ..................................................         109          59
                                                              ------      ------
         Total .........................................      $1,134      $  888
                                                              ------      ------
</TABLE>

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

For the nine months ended September 30, 2003, total non-interest income
increased $246 thousand to $1,134 thousand or 27.7 percent, compared to $888
thousand for the nine months period ended September 30, 2002.

Service charges and fees increased $20 thousand from $487 thousand at September
30, 2002 to $507 thousand or 4.1 percent at September 30, 2003. Trust Department
income decreased from $151 thousand at September 30, 2002 to $95 thousand or
37.1 percent at September 30 2003. Investment securities gains were $8 thousand
at September 30, 2003 and $107 thousand at September 30, 2002, a decrease of $99
thousand. Sale of Loans generated $92 thousand in income through September 30,
2003 compared to $0 for the same period of 2002. Gain on Sale of Other Real
Estate Owned realized income of $12 thousand at September 30, 2003 compared to
$0 for the nine months ended September 30, 2002. Bank Owned Life Insurance gain
in Cash Surrender Value was $165 thousand at September 30, 2003 compared to $13
thousand at September 30, 2002. Loan sales created net income of $72 thousand in
Net Mortgage Servicing Rights at September 30, 2003 compared to $0 at September
30, 2002. Third party brokerage income reflected a $3 thousand increase or 4.2
percent comparing September 30, 2003 to September 30, 2002.

Other non-interest income increased from $59 thousand at September 30, 2002 to
$109 thousand or 83.1 percent at September 30, 2003. This increase was
attributable to new fees of $28 thousand for preparation of loans for sale and
$6 thousand for Service and Credit Enhancement Fees for these loans sold.
Additional Merchant fees for Credit Card services amounted to $20 thousand for
the period ending September 30, 2003 compared to September 30, 2002.

NON-INTEREST EXPENSE

The following table presents the components of non-interest expense for the nine
months ended September 30, 2003 and 2002.

<TABLE>
<CAPTION>
                                                             Nine Months Ended
                                                              September 30,
                                                           2003            2002
                                                          ------          ------
                                                          (Dollars in Thousands)
<S>                                                       <C>             <C>
Salaries and  wages ............................          $1,647          $1,638
Employee benefits ..............................             585             566
Net occupancy expense ..........................             290             268
Furniture and equipment expense ................             357             442
State shares tax ...............................             206             192
Other expense ..................................             985             970
                                                          ------          ------
         Total .................................          $4,070          $4,076
                                                          ------          ------
</TABLE>

Non-interest expense remained constant at $4.1 million at September 30, 2002 and
September 30, 2003.

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

Salaries increased .05 percent at September 30, 2003 compared to September 30,
2002. A 3.36 percent increase was reflected in employee benefits from $566
thousand at September 30, 2002, to $585 thousand at September 30, 2004.
Increased cost of employee benefits, specifically health coverage, accounted for
the increase in employee benefits.

Occupancy expense and furniture and equipment expense reflects a $63 thousand or
8.9 percent decrease for the first nine months of 2003 compared to the first
nine months of 2002, principally attributable to reductions in depreciation
expense.

Pennsylvania Bank Shares Tax increased 7.3 percent from $192 thousand at
September 30, 2002 compared to $206 thousand at September 30, 2003.

Other expenses increased 1.5 percent from $970 thousand at September 30, 2002 to
$985 thousand at September 30, 2003.


                                       19
<PAGE>
INCOME TAXES

Income tax expense as a percentage of pre-tax income was 21.2 percent for the
nine months ended September 30, 2003 compared with 22.0 percent for the same
period in 2002. The effective tax rate for 2003 is expected to approximate 34
percent.

ASSET / LIABILITY MANAGEMENT

INTEREST RATE SENSITIVITY

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

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

LIQUIDITY

Liquidity measures the ability to satisfy current and future cash flow needs as
they become due. Maintaining a level of liquid funds through asset / liability
management seeks to ensure that these needs are met at a reasonable cost. On the
asset side, liquid funds are maintained in the form of cash and due from banks,
federal funds sold, investment securities maturing within one year, and security
and loan payments. Liquid assets amounted to $114.7 million and $202.3 million
at September 30, 2003 and December 31, 2002, respectively. This represents 53.0
percent and 96.1 percent of earning assets, and 49.6 percent and 88.3 percent of
total assets at September 30, 2003 and December 31, 2002, respectively.

On the liability side, the primary source of funds available to meet liquidity
needs is our core deposit base, which generally excludes certificates of deposit
over $100 thousand Core deposits averaged approximately $142.4 million for the
nine months ended September 30, 2003 and $137.0 million for the year ended
December 31, 2002, representing 65.7 percent and 65.1 percent of average earning
assets. Short-term and long-term borrowings through federal funds lines,
repurchase agreements, Federal Home Loan Bank advances and large dollar
certificates of deposit, generally those over $100 thousand, are used as
supplemental funding sources. Additional liquidity is derived from scheduled
loan and investment payments of principal and interest, as well as prepayments
received. For the nine months ended September 30, 2003, there were $33.0 million
of proceeds from the sales, maturities and redemptions of investment securities
available for sale. Purchases of investment securities for the nine months ended
September 30, 2003 were $45.2 million. Short-term borrowings and certificates of
deposit over $100 thousand amounted to $49.8 million and $48.5 million for the
nine months ended September 30, 2003 and the year ended December 31, 2002,
respectively.

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

As of September 30, 2003, we had $65.0 million of securities available for sale
recorded at their fair value, compared with $53.5 million at December 31, 2002.
As of September 30, 2003, the investment securities available for sale had an
unrealized gain of $316 thousand, net of deferred taxes, compared with an
unrealized gain of $536 thousand, net of deferred taxes, at December 31, 2002.
These securities are not considered trading account securities which may be sold
on a continuous basis, but rather are securities which may be sold to meet our
various liquidity and interest rate requirements.

NON-PERFORMING ASSETS

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

<TABLE>
<CAPTION>
                                                         (Dollars in thousands)
                                                        September        December
                                                           30,              31,
                                                          2003             2002
                                                         ------           ------
<S>                                                     <C>              <C>
Past due and non-accrual:
       Days 30 - 89 ..........................           $  914           $1,841
       Days 90 plus ..........................              392               50
      Non-accrual ............................            2,142            2,122
                                                         ------           ------
  Total ......................................           $3,448           $4,013
                                                         ------           ------
</TABLE>

Past due and non-accrual loans decreased $.6 million from $4.0 million at
December 31, 2002 to $3.4 million at September 30, 2003. The loan delinquency
expressed as a ratio to total loans was 2.3% at September 30, 2003 and 2.6% at
December 31, 2002.

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

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


                                       20
<PAGE>
The following analysis provides a schedule of loan maturities / interest rate
sensitivities. This schedule presents a repricing and maturity analysis as
required by the FFIEC:

<TABLE>
<CAPTION>
                                                                                       (Dollars in
                                                                                        Thousands)
                  MATURITY AND REPRICING DATA FOR LOANS AND LEASES                    September 30,
                                                                                          2003
<S>                                                                                   <C>
Closed-end loans secured by first liens and 1-4 family residential properties
  with a remaining maturity or repricing frequency of:
         (1) Three months or less ..................................................    $   2,406
         (2) Over three months through 12 months ...................................       12,412
         (3) Over one year through three years .....................................       28,193
         (4) Over three years through five years ...................................        2,424
         (5) Over five years through 15 years ......................................       22,232
         (6) Over 15 years .........................................................          380
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 ..................................................       26,697
         (2) Over three months through 12 months ...................................       14,988
         (3) Over one year through three years .....................................       17,295
         (4) Over three years through five years ...................................        7,632
         (5) Over five years through 15 years ......................................       12,622
         (6) Over 15 years .........................................................          433
                                                                                        ---------
                  Sub-total ........................................................    $ 147,714
Add:     non-accrual loans not included above ......................................        2,142
Less:    unearned income ...........................................................          (73)
                                                                                        ---------
                  Total Loans and Leases ...........................................    $ 149,783
</TABLE>

ALLOWANCE FOR LOAN LOSSES

The allowance for loan losses reflected a balance of $1.4 million or .93 percent
of total loans at September 30, 2003 and a balance of $1.3 million or.86 percent
of total loans at December 31, 2002. The allowance is believed adequate for
possible loan losses in the future.

The provision for loan losses was $150 thousand for the first nine months of
2003 compared to $264 thousand for the first nine months of 2002.

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

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

         -        Commercial (including investment property mortgages),

         -        Residential mortgages, and

         -        Consumer.

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

         -        Historical loss levels,

         -        Prevailing economic conditions,

         -        Delinquency trends,

         -        Changes in the nature and volume of the portfolio,

         -        Concentrations of credit risk, and

         -        Changes in loan policies or underwriting standards.

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

<TABLE>
<CAPTION>
                                                                             For the Three Months
                                                                             Ending September 30,
Amounts in thousands                                                          2003           2002
--------------------                                                       ---------      ---------
<S>                                                                        <C>            <C>
Average loans outstanding: ............................................    $ 150,560      $ 146,565
Total loans at end of period ..........................................      149,783        150,624

         Balance at beginning of period ...............................        1,298          1,028
         Total charge-offs ............................................          (44)           (65)
          Total recoveries ............................................           39             52
          Net charge-offs .............................................           (5)           (13)
          Provision for loan losses ...................................          150            264
 Balance at end of period .............................................    $   1,443      $   1,279
                                                                           ---------      ---------
</TABLE>


                                       21
<PAGE>
<TABLE>
<S>                                                                              <C>            <C>
Net charge-offs as a percent of average loans outstanding during period          .00%           .01%
Allowance for loan losses as a percent of total loans .................          .93%           .86%
</TABLE>

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

CAPITAL ADEQUACY

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

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

<TABLE>
<CAPTION>
                                                   September 30, 2003     December 31, 2002
                                                   ------------------     -----------------
                                                               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 .........     19.02%      4.00%     18.53%      4.00%
Total Qualifying Capital to risk-weighted assets     20.08%      8.00%     19.46%      8.00%
</TABLE>

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

<TABLE>
<CAPTION>
                                                            September   December
                                                               30,         31,
                                                              2003        2002
<S>                                                         <C>         <C>
Tier I Capital to average assets .......................      11.59%      11.77%
</TABLE>

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

Book value per share amounted to $21.27 at September 30, 2003, compared with
$20.76 per share at December 31, 2002.

Cash dividends declared amounted to $0.49 per share, for the nine months ended
September 30, 2003, equivalent to a dividend payout ratio of 40.2 percent,
compared with 41.3 percent for the same period in 2002. Our Board of Directors
continues to believe that cash dividends are an important component of
shareholder value and that, at the bank's current level of performance and
capital, we expect to continue our current dividend policy of a quarterly cash
distribution of earnings to our shareholders.

CONTROLS AND PROCEDURES

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

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

LIMITATIONS ON THE EFFECTIVENESS OF CONTROLS.

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


                                       22
<PAGE>
CHANGES IN INTERNAL CONTROLS. There were no changes in our internal control,
over financial reporting, identified in connection with the reevaluation of such
internal control over financial reporting that occurred during the period
covered by this quarterly report, that has materially affected, or is reasonably
likely to materially affect our internal control over financial reporting.


                                       23
<PAGE>
PART II - OTHER INFORMATION;


Item 1. Legal Proceedings

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

Item 2. Changes in Securities - Nothing to report.

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

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

Item 5. Other Information - None

Item 6. A - Exhibits and Reports on Form 8-K

         8 K filed August 14, 2003

         At the Registrant's Board meeting of August 14, 2003, the directors
authorized the purchase of up to 100,000 shares of its issued and outstanding
common stock, from time to time, in open market purchases, through a licensed
broker-dealer, in accordance with the terms, conditions and restriction
contained in Rule 10b-18.

         B - Exhibits 31.1, 31.2 and 32


                                       24
<PAGE>
                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                      CCFNB BANCORP, INC.
                                          (Registrant)



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

                                      Date: November 7, 2003



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

                                      Date: November 7, 2003


                                       25