<PAGE>   1
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, DC  20549
                                        
                                   FORM 10-Q



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

For the quarterly period ended March 31, 1998.


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

For the transition period from ______________ to _____________


Commission file number 0-19028

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

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

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

Issuer's telephone number, including area code:  (717) 784-4400


         Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the issuer was required to file such
reports), and (2) has been subject to such filing requirings for the past 90
days. Yes X  No 
         ---   ---

         Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date. 1,382,433 shares of
$1.25 (par) common stock were outstanding as of April 29, 1998.


<PAGE>   2
                       CCFNB BANCORP, INC. AND SUBSIDIARY
                                        
                                 MARCH 31, 1998
                                        
                                   INDEX 10-Q


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

PART I - FINANCIAL INFORMATION:


       - Consolidated Balance Sheets                                           1


       - Consolidated Statements of Income                                     2


       - Consolidated Statements of Cash Flows                                 3


       - Notes to Consolidated Financial Statements                          4 - 6


       - Management's Discussion and Analysis of Consolidated
         Financial Condition and Results of Operations                       7 - 15


PART II - OTHER INFORMATION                                                   16



        SIGNATURES                                                            17
</TABLE>
<PAGE>   3

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

<TABLE>
<CAPTION>
                                                                           MARCH    DECEMBER
                                                                         31, 1998   31, 1997
                                                                         --------   --------
<S>                                                                      <C>        <C>     
      ASSETS
      Cash and due from banks.........................................   $  3,989   $  4,735
      Interest-bearing deposits with other banks......................      5,076        582
      Investment securities:
        Securities to be held to maturity, estimated fair value of
          $726 and $726...............................................        720        720
        Securities available for sale carried at estimated fair value.     43,255     43,142
      Loans, net of unearned income...................................    116,054    119,045
      Allowance for loan losses.......................................        918        901
        Net loans.....................................................   $115,136   $118,144
                                                                         --------   --------
      Premises and equipment..........................................      5,610      5,146
      Other real estate owned.........................................         24          0
      Accrued interest receivable.....................................        924        938
      Other assets....................................................        655        459
                                                                         --------   --------
           TOTAL ASSETS...............................................   $175,389   $173,866
                                                                         ========   ========

      LIABILITIES AND STOCKHOLDERS' EQUITY

      LIABILITIES
      Deposits:
        Non-interest bearing..........................................   $ 11,118   $ 12,138
        Interest bearing..............................................    117,924    115,581
                                                                         --------   --------
           Total Deposits.............................................   $129,042   $127,719
      Short-term borrowings...........................................     20,496     22,362
      Long-term borrowings............................................      2,223        440
      Accrued interest and other expenses.............................      1,089      1,141
      Other liabilities...............................................         74         99
                                                                         --------   --------
           TOTAL LIABILITIES..........................................   $152,924   $151,761
                                                                         --------   --------

      STOCKHOLDERS' EQUITY
      Common stock, par value $1.25 per share; Authorized 5,000,000
        shares; issued 1,382,433 shares...............................   $  1,728   $  1,728
      Surplus.........................................................      5,857      5,854
      Retained earnings...............................................     14,672     14,407
      Unrealized gain on investment securities available for sale,
        net of tax....................................................        213        142
      Less treasury stock, at cost, 190 shares in 1998 and
        1183 shares in 1997...........................................         (5)       (26)
                                                                         --------   --------
           TOTAL STOCKHOLDERS' EQUITY.................................   $ 22,465   $ 22,105
                                                                         --------   --------
           TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY.................   $175,389   $173,866
                                                                         ========   ========
</TABLE>

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


                                      -1-
<PAGE>   4



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

<TABLE>
<CAPTION>
                                                                        FOR THE THREE
                                                                        MONTHS ENDING
                                                                          MARCH 31,
                                                                          ---------
                                                                        1998     1997
                                                                        ----     ----
<S>                                                                   <C>      <C>
INTEREST INCOME
Interest and fees on loans:
  Taxable...........................................................   $ 2,396  $ 2,372
  Tax exempt........................................................        29       35
Interest and dividends on investment securities:
  Taxable interest..................................................       468      389
  Tax exempt interest...............................................       140      128
  Dividends.........................................................         5       15
Interest on federal funds sold......................................         0       37
Interest on deposits in other banks.................................        65       55
                                                                       -------  -------
     TOTAL INTEREST INCOME..........................................   $ 3,103  $ 3,031
                                                                       -------  -------

INTEREST EXPENSE
Interest on deposits................................................   $ 1,204  $ 1,214
Interest on short-term borrowings...................................       287      218
Interest on long-term borrowings....................................         8        4
                                                                       -------  -------
     TOTAL INTEREST EXPENSE.........................................   $ 1,499  $ 1,436
                                                                       -------  -------

Net interest income.................................................   $ 1,604  $ 1,595
Provision for loan losses...........................................        20       15
                                                                       -------  -------
  NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES...............   $ 1,584  $ 1,580
                                                                       -------  -------

NON-INTEREST INCOME
Service charges and fees............................................   $   140  $   133
Trust department income.............................................        25       21
Other income........................................................        29       14
                                                                       -------  -------
     TOTAL NON-INTEREST INCOME......................................   $   194  $   168
                                                                       -------  -------

NON-INTEREST EXPENSES
Salaries and wages..................................................   $   455  $   423
Pensions and other employee benefits................................       162      152
Occupancy expense, net..............................................        89       94
Furniture and equipment expense.....................................       130      103
Other operating expenses............................................       377      314
                                                                       -------  -------
     TOTAL NON-INTEREST EXPENSES....................................   $ 1,213  $ 1,086
                                                                       -------  -------

Income before income taxes..........................................   $   565  $   662
Income tax expense..................................................       140      173
                                                                       -------  -------
    NET INCOME......................................................   $   425  $   489
                                                                       =======  =======

NET INCOME PER SHARE................................................   $   .31  $   .35
</TABLE>

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

                                        -2-
<PAGE>   5


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

<TABLE>
<CAPTION>
                                                                         FOR THE THREE MONTHS
                                                                           ENDING MARCH 31,
                                                                           ----------------
                                                                           1998       1997
                                                                           ----       ----
<S>                                                                      <C>       <C>     
OPERATING ACTIVITIES
Net income.............................................................  $    425  $    489
Adjustments to reconcile net income to net cash provided by
 operating activities:
   Provision for loan losses...........................................        20        15
   Provision for depreciation and amortization.........................       119        92
   Premium amortization on investment securities.......................        18         1
   Discount accretion on investment securities.........................        (9)       (7)
   Deferred income taxes (benefit).....................................        (9)        0
   (Gain) loss on sale of premises and equipment.......................         0        (2)
   Loss on impairment of bank premises.................................         0         3
   (Increase) decrease in accrued interest receivable and other assets.      (182)     (162)
   Increase (decrease) in accrued interest and other expenses
     and other liabilities.............................................        (5)       29
                                                                         --------  -------- 
     NET CASH PROVIDED BY OPERATING ACTIVITIES.........................  $    377  $    458
                                                                         --------  -------- 

INVESTING ACTIVITIES
Proceeds from sales, maturities and redemptions of investment
  securities available for sale........................................  $  8,162  $  5,319
Proceeds from maturities and redemptions of held to maturity
  investmet securities.................................................         0       250
Purchase of investment securities available for sale...................    (8,177)   (5,279)
Net (increase) decrease in loans.......................................     2,964      (885)
Purchases of premises and equipment....................................      (583)      (31)
Proceeds from sale of premises and equipment...........................         0        12
                                                                         --------  -------- 
     NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES...............  $  2,366  $   (614)
                                                                         --------  -------- 

FINANCING ACTIVITIES
Net increase (decrease) in deposits....................................  $  1,323  $ (2,418)
Net increase (decrease) in short-term borrowings.......................    (1,866)    1,396
Net increase (decrease) in long-term borrowings........................     1,783       (30)
Proceeds from issuance of common stock.................................        36        41
Acquisition of treasury stock..........................................       (21)      (28)
Proceeds from sale of treasury stock...................................        10         0
Cash dividends paid....................................................      (160)     (160)
                                                                         --------  -------- 
     NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES...............  $  1,105  $ (1,199)
                                                                         --------  -------- 
     INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS..................  $  3,848  $ (1,355)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR.........................     5,217    11,359
                                                                         --------  -------- 
      CASH AND CASH EQUIVALENTS AT END OF YEAR.........................  $  9,065  $ 10,004
                                                                         ========  ========

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the year for:
  Interest.............................................................  $  1,505  $  1,449
  Income taxes.........................................................  $      1  $     69
</TABLE>


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


                                       -3-
<PAGE>   6



CCFNB BANCORP, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1998
UNAUDITED


BASIS OF PRESENTATION


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



NOTE 2 - The accompanying consolidated interim financial statements are
         unaudited. In management's opinion, the consolidated interim financial
         statements reflect a fair presentation of the consolidated financial
         position of CCFNB Bancorp, Inc. and Subsidiary, the results of their
         operations and their cash flows for the interim periods presented.
         Further, the consolidated interim financial statements reflect all
         adjustments, which are in the opinion of management, necessary to
         present fairly the consolidated financial condition and consolidated
         results of operations and cash flows for the interim period presented
         and that all such adjustments to the consolidated financial statements
         are of a normal recurring nature.



NOTE 3 - The results of operations for the three month period ended March 31,
         1998 are not necessarily indicative of the results to be expected for
         the full year.



NOTE 4 - Net income per share of common stock for the interim periods is based
         on the weighted average number of shares for each period; 1998 -
         1,381,447 shares and 1997 - 1,381,751 shares.



NOTE 5 - LOANS

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




                                       -4-






<PAGE>   7
         NON-ACCRUAL LOANS - Generally, a loan (including a loan impaired under
         Statement of Financial Accounting Standards No. 114) is classified as
         non-accrual, and the accrual of interest on such a loan is discontinued
         when the contractual payment of principal or interest has become 90
         days past due or management has serious doubts about further
         collectibility of principal or interest, even though the loan currently
         is performing. A loan may remain on accrual status if it is in the
         process of collection and is either guaranteed or well secured. When a
         loan is placed on non-accrual status, unpaid interest credited to
         income in the current year is reversed, and unpaid interest accrued in
         prior years is charged against the allowance for credit losses.
         Potential problem loans are identified by management as a part of its
         loan review process.

         Income recognition is in accordance with Statement of Financial
         Accounting Standards No. 118. Certain non-accrual loans may continue to
         perform, that is, payments are still being received. Generally, the
         payments are applied to principal. These loans remain under constant
         scrutiny and if performance continues, interest income may be recorded
         on a cash basis based on management's judgement as to collectibility of
         principal.

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

         The Corporation adheres to principles provided by Statement of
         Financial Accounting Standards No. 114, "Accounting by Creditors for
         Impairment of a Loan", as amended by Statement of Financial Accounting
         Standards No. 118, "Accounting by Creditors for Impairment of a Loan -
         Income Recognition and Disclosure." Under these standards, the
         allowance for loan losses related to loans that are identified for
         evaluation in accordance with Statement No. 114 is based on discounted
         cash flows using the loan's initial effective interest rate or the fair
         value of the collateral for certain collateral dependent loans.
         Statement No. 118 allows the continued use of existing methods for
         income recognition on impaired loans and amends disclosure requirements
         to require information about the recorded investment in certain
         impaired loans and related income recognition on those loans. The
         allowance for loan losses is maintained at a level by management to be
         adequate to absorb estimated potential loan losses. Management's
         periodic evaluation of the adequacy of the allowance for loan losses is
         based on the Corporation's past loan loss experience, known and
         inherent risks in the portfolio, adverse situations that may affect the
         borrower's ability to repay (including the timing of future payments),
         the estimated value of any underlying collateral, composition of the
         loan portfolio, current economic conditions, and other relevant
         factors. This evaluation is inherently subjective as it requires
         material estimates, including the amounts and timing of future cash
         flows expected to be received on impaired loans that may be susceptible
         to significant change.






                                       -5-







<PAGE>   8
         The following table presents the changes in the allowance for credit
         losses: 

                                                                  IN THOUSANDS
                                                                  ------------

            Balance at January 1, 1998..........................     $901
            Provisions charged to operations....................       20
            Loans charged off...................................      (25)
            Recoveries..........................................       22
                                                                     ----
            Balance at March 31, 1998...........................     $918
                                                                     ====

         At March 31, 1998 no loans were considered impaired as defined by
         Statement No. 114. Accordingly, no additional charge to operations was
         required since the total allowance for loan losses was estimated by
         management to be adequate to provide for the loan loss allowance under
         Statement No. 114 as well as any other potential loan losses.



NOTE 6 - The consolidated interim financial statements have been prepared in
         accordance with requirements of Form 10-Q and therefore do not include
         all the disclosures normally required by generally accepted accounting
         principles, or those normally made in the Corporation's annual 10-K
         filing. The reader of these consolidated interim financial statements
         may wish to refer to the Corporation's annual report on Form 10-K for
         the period ended December 31, 1997, filed with the Securities and
         Exchange Commission.







                                       -6-
<PAGE>   9


                               CCFNB BANCORP, INC. AND SUBSIDIARY
                      MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED
                          FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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

<TABLE>
<CAPTION>
                                             AT AND FOR THE
                                              THREE MONTHS
                                             ENDED MARCH 31,    ----------AT AND FOR THE YEARS ENDED DECEMBER 31,----------
                                             ---------------              ---------------------------------------
                                             1998         1997       1997        1996        1995        1994        1993
                                             ----         ----       ----        ----        ----        ----        ----
<S>                                       <C>        <C>        <C>            <C>        <C>        <C>        <C> 
Income and Expense:
  Interest income.......................  $    3,103  $    3,031  $   12,498  $   11,844  $   11,466  $   10,459  $    9,914
  Interest expense......................       1,499       1,436       5,976       5,588       5,557       4,785       4,634
                                          ----------  ----------  ----------  ----------  ----------  ----------  ----------
  Net interest income...................       1,604       1,595       6,522       6,256       5,909       5,674       5,280
  Loan loss provision...................          20          15          60          80          42         160         105
                                          ----------  ----------  ----------  ----------  ----------  ----------  ----------
  Net interest income after loan loss
    provision...........................       1,584       1,580       6,462       6,176       5,867       5,514       5,175
  Non-interest income...................         194         168         804         762         693         569         568
  Non-interest expense..................       1,213       1,086       4,492       4,450       4,374       3,958       3,763
                                          ----------  ----------  ----------  ----------  ----------  ----------  ----------
  Income before income taxes............         565         662       2,774       2,488       2,186       2,125       1,980
  Income taxes..........................         140         173         749         664         561         560         497
  Change in accounting principle........           0           0           0           0           0           0         196
                                          ----------  ----------  ----------  ----------  ----------  ----------  ----------
  Net income............................         425         489       2,025       1,824       1,625       1,565       1,679
                                          ==========  ==========  ==========  ==========  ==========  ==========  ==========
Per Share: (1)
  Net income after change in accounting
    principle (2).......................  $      .31  $      .35  $     1.47  $     1.33  $     1.19  $     1.35  $     1.51
  Cash dividends paid...................        .116        .116         .46         .45         .45         .42         .40
  Average shares outstanding............   1,381,447   1,381,751   1,381,800   1,375,875   1,367,595   1,163,199   1,109,837

Average Balance Sheet:
  Loans.................................  $  117,407  $  116,078  $  116,771  $  112,341  $  111,980  $  100,628  $   88,347
  Investments...........................      42,752      35,932      40,307      39,248      37,063      41,410      42,083
  Other earning assets..................       4,734       4,297       5,053       3,739       1,727       2,696       3,659
  Total assets..........................     174,516     167,632     171,159     164,512     157,957     151,752     143,096
  Deposits..............................     116,841     117,525     117,086     117,414     116,495     115,071     117,105
  Other interest-bearing liabilities....      23,389      17,434      20,198      14,860      11,766      11,014      12,332
  Shareholders' equity..................      22,070      20,255      20,690      19,512      18,067      13,736      12,739

Balance Sheet Data:
  Loans.................................     116,054     116,462     119,045     115,590     111,831     109,800      96,423
  Investments...........................      43,975      36,820      43,862      37,407      40,384      39,323      44,542
  Other earning assets..................       5,076       6,289         582       6,856         385       4,174       3,491
  Total assets..........................     175,389     169,205     173,866     170,086     162,066     157,124     152,386
  Deposits..............................     129,042     128,982     127,719     131,400     128,985     126,864     124,023
  Other interest-bearing liabilities....      22,719      18,317      22,802      16,951      12,430      11,910      14,317
  Shareholders' equity..................      22,465      20,799      22,105      20,657      19,512      17,650      13,452

Ratios: (3)
  Return on average assets..............         .97%       1.17%       1.18%       1.11%       1.03%       1.03%       1.17%
  Return on average equity..............        7.70%       9.66%       9.79%       9.35%       8.99%      11.39%      13.18%
  Dividend payout ratio.................       37.65%      32.78%      31.65%      33.95%      34.35%      36.54%      26.44%
  Average equity to average assets ratio       12.65%      12.08%      12.71%      11.86%      11.44%       9.05%       8.90%

</TABLE>

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

(2)  Before cumulative effect of change in accounting principle.

(3)  The ratios for the three month period ending March 31 are annualized.


                                       -7-
<PAGE>   10




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

Overview

Total assets increased .9% to $175.4 million at March 31, from $173.9 million at
December 31, 1997. Net income decreased 13.1% through March 31, 1998 to
$425,000, or $.31 per share, compared to $489,000, or $.35 per share for the
same three month period ended March 31, 1997. Loans decreased in 1998 by 2.4% to
$116.1 million at March 31, from $119.0 million at December 31, 1997.

Results of Operations - For the Three Months Ended March 31, 1998 and March 31,
1997.

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

Net income for the three months ended March 31, 1998 was $425,000, or $.31 per
share, as compared to $489,000, or $.35 per share, for the comparable period in
1997. The principal factor for the decrease was due to a 7.3% increase in
salaries and benefit expense; a 26.2% increase in furniture and equipment
expense and a 20.1% increase in other expenses.

Return on average assets and return on average equity were .97% and 7.70%,
respectively, for the three months ended March 31, 1998, as compared to 1.18%
and 9.79%, respectively, for the comparable period in 1997.

Net Interest Income

For the three months ended March 31, net interest income was $1.6 million for
1998 and 1997. The net interest margin reflected a decrease to 4.10% for the
three months ended March 31, 1998 from 4.22% for the comparable period in 1997.
Average interest earning assets at March 31, 1998 increased by 3.51% over March
31, 1997.

Average loans outstanding increased from $116.1 million to $117.4 million or
1.12%, for the three months ended March 31, 1998, as compared to the three
months ended March 31, 1997. The outstanding balance of loans at March 31, 1998,
decreased from $119.0 million at December 31, 1997 to $116.1 million at March
31, 1998. A .75% increase in income on loans from $2,407 million at March 31,
1997 to $2,425 million at March 31, 1998 occurred even though the loans
decreased during that period.





                                       -8-
<PAGE>   11


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

<TABLE>
<CAPTION>
                                                           IN THOUSANDS OF DOLLARS
                                                           -----------------------
                                                               MARCH    DECEMBER
                                                             31, 1998   31, 1997
                                                             --------   --------
<S>                                                          <C>        <C>     
   Past due and non-accrual:
     Days 30 - 89.........................................   $  1,375   $  1,331
     Days 90 plus.........................................        866        628
     Non-accrual..........................................         69         69
                                                             --------   --------
                                                             $  2,310   $  2,028
                                                             ========   ========
</TABLE>


Past due and non-accrual loans increased 15.0% from $2.0 million at December 31,
1997 to $2.3 million at March 31, 1998. These real estate delinquencies mainly
fall into the 60 day and below category. Generally the increase was attributable
to past due loans in both the 30 - 89 day and plus 90 day categories. The
increase specifically was attributable entirely to real estate loans which
became past due during the quarter which are fully secured by adequate real
estate collateral.

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

The Corporation adheres to principles provided by Financial Accounting Standards
Board Statement No. 114, "Accounting by Creditors for Impairment of a Loan" -
Refer to Note 5 above for other details.

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

<TABLE>
<CAPTION>
                                                                       IN THOUSANDS
                                                                        OF DOLLARS
                                                                        ----------
           MATURITY AND REPRICING DATA FOR LOANS AND LEASES           MARCH 31, 1998
           ------------------------------------------------           --------------
<S> <C>                                                                   <C>
Closed-end loans secured by first liens on 1-4 family residential
 properties with a remaining maturity or repricing frequency of:
    (1) Three months or less...........................................   $  1,928
    (2) Over three months through 12 months............................     10,172
    (3) Over one year through three years..............................     30,772
    (4) Over three years through five years............................      1,905
    (5) Over five years through 15 years...............................     11,986
    (6) Over 15 years..................................................      2,635
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...........................................     16,563
    (2) Over three months through 12 months............................     11,917
    (3) Over one year through three years..............................     13,743
    (4) Over three years through five years............................      5,081
    (5) Over five years through 15 years...............................      8,346
    (6) Over 15 years..................................................      1,378
                                                                          --------
       Sub-total.......................................................   $116,426
Add:  non-accrual loans not included above.............................         69
Less:  unearned income.................................................        441
                                                                          --------
       Total Loans and Leases..........................................   $116,054
                                                                          ========
</TABLE>


                                       -9-

<PAGE>   12


Interest income from investment securities reflects a 15.2% increase comparing
$613,000 for the three months ended March 31, 1998, and the $532,000 for the
comparable period of 1997. The average balance of investment securities for the
three months ended March 31, 1998 increased 19.2% to $42.8 million, compared to
the $35.9 million for the same period of 1997.

Total interest expense increased $63,000 or 4.4% for the first three months of
1998, as compared to the first three months of 1997. This increase in interest
expense reflects an increase in interest cost for repurchase agreements
resulting from the 30.3% increase in the average balance of repurchase
agreements when comparing March 31, 1997 to March 31, 1998.

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


Average Balance Sheet and Rate Analysis
(Dollars in Thousands)

<TABLE>
<CAPTION>
                                                    -----------MARCH 1998---------   -----------MARCH 1997---------
                                                               ----------                       ----------
                                                                INTEREST   AVERAGE               INTEREST   AVERAGE
                                                     AVERAGE     INCOME/    YIELD/    AVERAGE     INCOME/    YIELD/
                                                    BALANCE(1)  EXPENSE(2)   RATE    BALANCE(1)  EXPENSE(2)   RATE
                                                    ----------  ----------   ----    ----------  ----------   ----
<S>                                                  <C>         <C>         <C>      <C>         <C>         <C>  
ASSETS:
Interest bearing deposits with other financial
  institutions....................................   $  4,734    $     65    5.49%    $  4,297    $     55    5.12%
Investment securities:
  U.S. government securities......................     29,917         450    6.00%      24,031         366    6.09%
  State and municipal obligations (3).............     11,085         140    7.65%       9,473         128    8.19%
  Other securities................................      1,750          23    5.26%       2,428          38    6.26%
                                                     --------    --------   -----     --------    --------   -----
Total Investment Securities.......................   $ 42,752    $    613    5.73%    $ 35,932    $    532    5.92%
Federal funds sold................................          0           0       0%       3,000          37    4.93%
Consumer..........................................      8,643         196    9.07%       8,787         204    9.29%
Dealer floor plan.................................      2,139          46    8.60%       1,648          35    8.50%
Mortgage..........................................     98,973       1,971    7.97%      96,846       1,943    8.03%
Commercial........................................      5,672         183   12.91%       6,498         190   11.70%
Tax free (3)......................................      1,980          29    8.88%       2,299          35    9.23%
                                                     --------    --------   -----     --------    --------   -----
Total loans.......................................   $117,407    $  2,425    8.27%    $116,078    $  2,407    8.29%
Total interest earning assets.....................    164,893       3,103    7.53%     159,307       3,031    7.61%
                                                     --------    --------   -----     --------    --------   -----
Reserve for loan losses...........................   $   (913)                        $   (914)
Cash and due from banks...........................      1,832                            1,108
Other assets......................................      8,704                            8,131
                                                     --------                         --------
Total assets......................................   $174,516                         $167,632
                                                     ========                         ========
</TABLE>






                                      -10-

<PAGE>   13


<TABLE>
<CAPTION>
                                                    -----------MARCH 1998---------   -----------MARCH 1997----------
                                                               ----------                       ----------
                                                                INTEREST   AVERAGE               INTEREST   AVERAGE
                                                     AVERAGE     INCOME/    YIELD/    AVERAGE     INCOME/    YIELD/
                                                    BALANCE(1)  EXPENSE(2)   RATE    BALANCE(1)  EXPENSE(2)   RATE
                                                    ----------  ----------   ----    ----------  ----------   ----
<S>                                                  <C>         <C>         <C>      <C>         <C>         <C>  
LIABILITIES AND CAPITAL:
SUPER NOW deposits................................   $ 19,958    $     92    1.84%    $ 19,216    $    100    2.08%
IRA...............................................      8,014         101    5.04%       8,080         100    4.95%
Money market deposits.............................     11,622          83    2.86%      12,901          94    2.91%
Savings deposits..................................     20,474         135    2.64%      21,875         144    2.63%
Time deposits over $100,000.......................     11,009         162    5.89%      12,083         175    5.79%
Other time deposits...............................     45,764         631    5.52%      43,370         601    5.54%
                                                     --------    --------   -----     --------    --------   -----
Total interest bearing deposits...................   $116,841    $  1,204    4.12%    $117,525    $  1,214    4.13%
                                                     --------    --------   -----     --------    --------   -----
Other borrowed funds..............................        501           8    6.39%         535           7    5.23%
Long-term borrowings..............................      1,244           8    2.57%         290           4    5.52%
Repurchase agreements.............................     21,644         279    5.16%      16,609         211    5.08%
                                                     --------    --------   -----     --------    --------   -----
Total interest bearing liabilities................   $140,230    $  1,499    4.28%    $134,959    $  1,436    4.26%
                                                     --------    --------   -----     --------    --------   -----
Demand deposits...................................   $ 10,986                         $ 11,197
Other liabilities.................................      1,230                            1,221
Stockholders' equity..............................     22,070                           20,255
                                                     --------                         --------
Total liabilities and capital.....................   $174,516                         $167,632
                                                     ========                         ========
NET INTEREST INCOME/NET INTEREST MARGIN (4)......                $  1,604    3.89%                $  1,595    4.00%
                                                                 ========   =====                 ========   =====
TAX EQUIVALENT NET INTEREST INCOME/
 NET INTEREST MARGIN (5)..........................               $  1,691    4.11%                $  1,679    4.22%
                                                                 ========   =====                 ========   =====
</TABLE>

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

(2)  Interest on loans includes fee income.

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

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

(5)  Interest and yield are presented on a tax equivalent basis using 34% for
     1998 and 1997.


Provision for Loan Losses

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

For the three month period ending March 31, 1998 and 1997, the provision for
loan losses was $20,000, compared to the $15,000 for the corresponding period in
1997.




                                      -11-
<PAGE>   14




Non-Interest Income

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

<TABLE>
<CAPTION>
                                                               THREE MONTHS ENDED
                                                                    MARCH 31,
                                                                    ---------
                                                                1998        1997
                                                                ----        ----
                                                             (Dollars in Thousands)
<S>                                                           <C>         <C>     
Service charges and fees..................................    $    140    $    133
Trust department income...................................          25          21
Investment securities gain (loss) - net...................           0           0
Other.....................................................          29          14
                                                              --------    --------
     Total................................................    $    194    $    168
                                                              ========    ========
</TABLE>


For the three months ended March 31, 1998, total non-interest income increased
$26,000, to $194,000 compared with $168,000 for the three months ended March 31,
1997. The increase is generally the result of increases in all areas.
Specifically, the more significant increases were attributable to a surcharge
fee on non-Bank customers using the Bank's ATM's which resulted in a $12,400
increase to non-interest income. Additionally, a new fee for customers wishing
to have cancelled checks returned was introduced reflecting an increase of
$3,000.


Non-Interest Expenses

Generally, non-interest expense accounts for the costs of maintaining
facilities, providing salaries and necessary benefits to employees, and general
operating costs such as insurance, supplies, advertising, data processing
services, taxes and other related expenses. Some of the costs and expenses are
variable while others are fixed. To the extent possible, the Company utilizes
budgets and related measures to control variable expenses. The following table
sets forth, for the periods indicated, the major components of non-interest
expenses:

<TABLE>
<CAPTION>
                                                               THREE MONTHS ENDED
                                                                    MARCH 31,
                                                                    ---------
                                                                1998        1997
                                                                ----        ----
                                                             (Dollars in Thousands)
<S>                                                           <C>         <C>     
Salaries and wages.......................................     $    455    $    423
Employee benefits........................................          162         152
Net occupancy expense....................................           89          94
Furniture and equipment expense..........................          130         103
FDIC insurance...........................................            4           5
State shares tax.........................................           40          36
Other expense............................................          333         273
                                                              --------    --------
     Total...............................................     $  1,213    $  1,086
                                                              ========    ========
</TABLE>





                                      -12-


<PAGE>   15

Salary and employee benefits expense increased 7.30% due primarily to employee
annual increases and promotions within the Bank as well as increased costs of
employee benefit plans. Similarly, furniture and equipment expense increased
26.21% over 1997 for service on equipment and depreciation on newly acquired
data processing equipment. This equipment acquisition is a result of a
conversion which occurred in the first quarter of 1998.

CCFNB data processing is now being done in-house rather than having a third
party processor. The data processing transition is also satisfying Year 2000
compliance issues that were necessary. Improved flexibility and efficiency are
positive by-products of this conversion.

Other expenses increased 21.98% from $273,000 at March 31, 1997 to $333,000 at
March 31, 1998 mainly due to costs associated with the data processing
conversion. Shown below is a comparison of other expenses for March 31, 1997 to
March 31, 1998:


<TABLE>
<CAPTION>
                                                MARCH 31,   MARCH 31,   AMOUNT OF
                                                  1997        1998      INCREASE
                                                  ----        ----      --------
<S>                                             <C>         <C>         <C>     
Off premise posting.........................    $ 41,000    $ 51,000    $ 10,000
Supplies....................................    $ 28,700    $ 36,700       8,000
Third party provider buyout.................    $      0    $ 22,500      22,500
Postage.....................................    $ 21,000    $ 25,500       4,500
Legal and professional......................    $ 22,900    $ 26,100       3,200
Debit and ATM card expense..................    $ 17,200    $ 23,800       6,600
                                                                        --------
                                                                        $ 54,800
                                                                        ========
</TABLE>


The data processing associated expenses include off premise posting which will
no longer be incurred beginning April 1998; supplies, third pary provider buyout
and legal and professional, which consists of back-up professional services in
the event of computer failure. Although the data processing conversion will
effect the profit for 1998 it is anticipated that the savings on not having a
third party provider will offset most of these increased expenses going forward.

Capital

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







                                      -13-

<PAGE>   16




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

<TABLE>
<CAPTION>
                                           MARCH 31, 1998       DECEMBER 31, 1997
                                           --------------       -----------------
                                                     MINIMUM               MINIMUM
                                         CALCULATED  STANDARD  CALCULATED  STANDARD
                                           RATIOS     RATIOS     RATIOS     RATIOS
                                           ------     ------     ------     ------
<S>                                        <C>         <C>       <C>         <C>  
Risk Based Ratios:
Tier I Capital to risk-weighted assets..   20.97%      4.00%     20.98%      4.00%
Total Qualifying Capital to
  risk-weighted assets..................   21.83%      8.00%     21.84%      8.00%
</TABLE>


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

<TABLE>
<CAPTION>
                                                                   MARCH   DECEMBER
                                                                 31, 1998  31, 1997
                                                                 --------  --------
<S>                                                               <C>       <C>   
Tier I Capital to total assets..............................      12.69%    13.15%
Tier II Capital to total assets.............................      13.21%    12.63%

</TABLE>

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

Year 2000

The Year 2000 Issue is the result of computer programs being written using two
digits rather than four to define the applicable year. Any of the Bank's
computer programs that have date-sensitive software may recognize a date using
"00" as the year 1900 rather than the year 2000. This could result in a system
failure or miscalculations causing disruptions of operations, including, among
other things, a temporary inability to process transactions, send invoices,
calculate correct accruals, or engage in similar normal business activities.

An assessment of the Bank's software and hardware has revealed those portions
which will be required to be modified or replaced in order to properly utilize
dates beyond December 31, 1999. The Bank presently believes that with
modifications to existing software and conversions to new software, the Year
2000 Issue can be mitigated. However, if such modifications and conversions are
not made, or are not completed timely, the Year 2000 Issue could have a material
impact on the operations of the Bank.

Another consideration is the fact that there can be no guarantee that the
systems of other companies on which the Bank's systems rely will be timely
converted, or that a failure to convert by another company, or a conversion that
is incompatible with the Bank's systems, would not have a material adverse
effect on the Bank. Bancorp management is engaging in due diligence to assure
that these possibilities will not occur. The Bank has determined it has no
exposure to contingencies related to the Year 2000 Issue for its products
offered to it's customers.

The Bank will utilize both internal and external resources to reprogram, or
replace, and test the software for Year 2000 modifications. The Bank plans to
complete the Year 2000 project no later than December 31, 1998. The Bank has
already spent $193,600 and anticipates it will spend $215,450 to complete the
Year 2000 project. These costs are considered manageable by the Bank and are
being funded through operating cash flows. The costs will not have a material
effect on the results of operations in 1998 or beyond.


                                      -14-

<PAGE>   17

The time-lines and costs are based on management's best estimates, which were
derived utilizing numerous assumptions of future events, including the continued
availability of certain resources, third party modification plans and other
factors. However, there can be no guarantee that these estimates will be
achieved and actual results could differ materially from those plans. Specific
factors that might cause such material difference include, but are not limited
to, the availability and cost of personnel trained in this area, the ability to
locate and correct all relevant computer codes and similar uncertainties.

The Corporation and the Bank are aggressively addressing the Year 2000 Issue.
This issue is far-reaching in that it encompasses computer systems, microchips,
anything with time elements, and forces the Bank to ask each vendor, customer,
and third party provider if they are also ready for the millennium, which is
fast approaching.

A Senior Vice President has been given the responsibility for Y2K compliance. A
committee has been selected consisting of Board Members and Officers who have
been meeting for several months addressing this issue.

Letters have been sent to vendors requesting, in writing, their effort to be in
compliance with Y2K. A select group of commercial customers have been sent
letters explaining the Y2K issues and asking them to be certain to address this
very important issue. The Bank has also offered to help with any questions.
Notices are being placed in each Bank lobby alerting the public to this issue.
Also, verbiage will be on each deposit statement concerning the Y2K issue.

A time-line has been created for this project. All letters were mailed by March
15, 1998 and all compliance letters will be in our files by June 30, 1998.
December 31, 1998 is the deadline for compliance on all levels. Testing will
continues until the Bank is assured all critical systems are confirmed to be Y2K
compliant.

Vendors and systems have been placed in priority order as to importance. Most of
the third party vendors that are most crucial have communicated with us stating
they are Y2K compliant and testing on their systems will continue.

Our insurance carrier has been contacted and we are working closely with it to
prudently assess the Bank's needs and take the appropriate steps to protect the
Bank.

Contingency plans have been discussed and will be written on any systems that do
not comply or are questionable as to their compliance.

The Bank will be diligent in its quest for assurance of compliance and will
change vendors, if necessary, to ensure a smooth change to the millennium and
continuity of banking operations and profit growth.

National bank examiners are reviewing all banks for their compliance with these
issues and the Corporation and the Bank welcome these reviews and any assistance
they will provide.




                                      -15-
<PAGE>   18
PART II - Other Information:



Item 1.  Legal Proceedings

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



Item 2.  Changes in Securities - Nothing to report.



Item 3.  Defaults Upon Senior Securities - Nothing to report.



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



Item 5.  Other Information - Nothing to report.



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








                                      -16-
<PAGE>   19





                                  SIGNATURES




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




                                      CCFNB BANCORP, INC.
                                         (Registrant)




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

                                      Date:  May 11, 1998




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

                                      Date: May 11, 1998























                                             -17-