<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 June 30, 2005

[ ]  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)

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

<TABLE>
<S>                                                       <C>
     232 East Street, Bloomsburg, PA                               17815
(Address of principal executive offices)                        (Zip Code)
</TABLE>

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. 1,261,870 shares of $1.25
(par) common stock were outstanding as of July 12, 2005.
<PAGE>
CCFNB BANCORP, INC. AND SUBSIDIARY
TABLE OF CONTENTS
JUNE 30, 2005

<TABLE>
<CAPTION>
                                                                      Page
                                                                    -------
<S>                                                                 <C>
PART 1  - FINANCIAL INFORMATION:

        - Consolidated Balance Sheets                                  2

        - Consolidated Statements of Income                            3

        - Consolidated Statements of Cash Flows                        4

        - Notes to Consolidated Financial Statements                 5 - 14

        - Report of Independent Registered Public Accounting Firm      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>
                                                        Unaudited
                                                           June     December
                                                         30, 2005   31, 2004
                                                        ---------   --------
<S>                                                     <C>         <C>
ASSETS
Cash and due from banks                                  $  4,513   $  5,018
Interest-bearing deposits with other banks                  3,041      1,821
Federal funds sold                                          6,013      5,994
Investment securities available-for-sale                   54,909     61,834
Loans, net of unearned income                             149,441    149,900
Allowance for loan losses                                   1,469      1,392
                                                         --------   --------
   Net loans                                              147,972    148,508
Premises and equipment, net                                 4,978      4,519
Cash surrender value of bank-owned life insurance           6,357      6,199
Accrued interest receivable                                   807        816
Other assets                                                  997        668
                                                         --------   --------
      TOTAL ASSETS                                       $229,587   $235,377
                                                         ========   ========

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
Deposits:
   Non-interest bearing                                  $ 16,734   $ 18,687
   Interest bearing                                       150,828    153,800
                                                         --------   --------
      Total Deposits                                      167,562    172,487
Short-term borrowings                                      20,608     21,757
Long-term borrowings                                       11,317     11,323
Accrued interest and other expenses                         1,264      1,269
Other liabilities                                              30         34
                                                         --------   --------
      TOTAL LIABILITIES                                   200,781    206,870
                                                         --------   --------

STOCKHOLDERS' EQUITY
Common stock, par value $1.25 per share; authorized
   5,000,000 shares; issued and outstanding 1,261,870
   shares in 2005 and 1,267,718 shares in 2004              1,577      1,585
Surplus                                                     3,226      3,385
Retained earnings                                          23,925     23,324
Accumulated other comprehensive income (loss)                  78        213
                                                         --------   --------
      TOTAL STOCKHOLDERS' EQUITY                           28,806     28,507
                                                         --------   --------
      TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY         $229,587   $235,377
                                                         ========   ========
</TABLE>

See accompanying notes to Consolidated Financial Statements.


                                       -2-
<PAGE>
CCFNB BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS EXCEPT PER SHARE DATA)
UNAUDITED

<TABLE>
<CAPTION>
                                                         For the Six              For the Three
                                                        Months Ending             Months Ending
                                                           June 30,                  June 30,
                                                   -----------------------   -----------------------
                                                      2005         2004         2005         2004
                                                   ----------   ----------   ----------   ----------
<S>                                                <C>          <C>          <C>          <C>
INTEREST INCOME
Interest and fees on loans:
   Taxable                                         $    4,260   $    4,156   $    2,170   $    2,045
   Tax-exempt                                             217          163          107           89
Interest and dividends on investment securities:
   Taxable interest                                       760          752          373          373
   Tax-exempt interest                                    186          240           90          113
   Dividends                                               41           26           21            8
Federal funds sold                                         64            4           38            3
Deposits in other banks                                    19           22           13           12
                                                   ----------   ----------   ----------   ----------
      TOTAL INTEREST INCOME                             5,547        5,363        2,812        2,643
                                                   ----------   ----------   ----------   ----------
INTEREST EXPENSE
Deposits                                                1,359        1,337          687          665
Short-term borrowings                                     245          130          131           61
Long-term borrowings                                      336          339          169          169
                                                   ----------   ----------   ----------   ----------
      TOTAL INTEREST EXPENSE                            1,940        1,806          987          895
                                                   ----------   ----------   ----------   ----------
Net interest income                                     3,607        3,557        1,825        1,748
Provision for loan losses                                  60           80           30           30
                                                   ----------   ----------   ----------   ----------
      NET INTEREST INCOME AFTER PROVISION
         FOR LOAN LOSSES                                3,547        3,477        1,795        1,718
                                                   ----------   ----------   ----------   ----------
NON-INTEREST INCOME
Service charges and fees                                  486          369          248          202
Gain on sale of loans                                      23            9            8            6
Bank-owned life insurance income                          131          128           64           57
Trust department                                           71           75           35           41
Other                                                     118          143           64           97
Investment securities gains, net                           --           --           --           --
                                                   ----------   ----------   ----------   ----------
      TOTAL NON-INTEREST INCOME                           829          724          419          403
                                                   ----------   ----------   ----------   ----------
NON-INTEREST EXPENSE
Salaries                                                1,132        1,139          580          568
Pensions and other employee benefits                      399          400          195          196
Occupancy, net                                            231          201          115           96
Equipment                                                 250          235          126          128
State shares tax                                          141          139           67           66
Professional services                                     157          118           71           53
Directors' fees                                            94           73           47           36
Stationery and supplies                                    76           70           44           38
Other                                                     559          528          292          277
                                                   ----------   ----------   ----------   ----------
      TOTAL NON-INTEREST EXPENSE                        3,039        2,903        1,537        1,458
                                                   ----------   ----------   ----------   ----------
Income before income taxes                              1,337        1,298          677          663
Income tax expense                                        281          267          145          141
                                                   ----------   ----------   ----------   ----------
      NET INCOME                                   $    1,056   $    1,031   $      532   $      522
                                                   ==========   ==========   ==========   ==========

PER SHARE DATA
Net income                                         $     0.84   $     0.81   $     0.42   $     0.41
Cash dividends                                     $     0.36   $     0.34   $     0.18   $     0.17
Weighted average shares outstanding                 1,264,235    1,277,196    1,264,235    1,277,196
</TABLE>

See accompanying notes to Consolidated Financial Statements.


                                       -3-
<PAGE>
CCFNB BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
UNAUDITED

<TABLE>
<CAPTION>
                                                                                       For the Six
                                                                                      Months Ending
                                                                                        June 30,
                                                                                   ------------------
                                                                                     2005      2004
                                                                                   -------   --------
<S>                                                                                <C>       <C>
OPERATING ACTIVITIES
Net income                                                                         $ 1,056   $  1,031
Adjustments to reconcile net income to net cash provided by operating
   activities:
   Provision for loan losses                                                            60         80
   Depreciation and amortization                                                       201        183
   Premium amortization on investment securities                                       137        150
   Discount accretion on investment securities                                          (6)       (18)
   Deferred income taxes (benefit)                                                     (54)        --
   (Gain) on sale of mortgage loans                                                    (23)        (9)
   Proceeds from sale of mortgage loans                                              1,281        925
   Originations of mortgage loans for resale                                          (989)      (916)
   (Gain) loss from investment in insurance agency                                      (9)        --
   (Increase) decrease in accrued interest receivable and other assets                (188)      (244)
   Net increase in cash surrender value of bank-owned life insurance                  (158)      (154)
   Increase (decrease) in accrued interest, other expenses and other liabilities        (9)         6
                                                                                   -------   --------
      NET CASH PROVIDED BY OPERATING ACTIVITIES                                      1,299      1,034
                                                                                   -------   --------
INVESTING ACTIVITIES
Purchase of investment securities Available-for-Sale                                    --    (16,063)
Proceeds from sales, maturities and redemptions of investment
   securities Available-for-Sale                                                     6,590     14,462
Net (increase) decrease in loans                                                       207       (666)
Purchases of premises and equipment                                                   (660)      (341)
                                                                                   -------   --------
      NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES                            6,137     (2,608)
                                                                                   -------   --------
FINANCING ACTIVITIES
Net increase (decrease) in deposits                                                 (4,925)     1,452
Net increase (decrease) in short-term borrowings                                    (1,149)    (4,565)
Net decrease in long-term borrowings                                                    (6)        (5)
Acquisition of treasury stock                                                         (279)      (114)
Proceeds from issuance of common stock                                                 112        107
Cash dividends paid                                                                   (455)      (434)
                                                                                   -------   --------
      NET CASH (USED IN) FINANCING ACTIVITIES                                       (6,702)    (3,559)
                                                                                   -------   --------
      INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                 734     (5,133)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                    12,833     12,362
                                                                                   -------   --------
      CASH AND CASH EQUIVALENTS AT END OF PERIOD                                   $13,567   $  7,229
                                                                                   =======   ========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the year for:
   Interest                                                                        $ 1,960   $  1,832
   Income taxes                                                                    $   254   $    236
</TABLE>

See accompanying notes to Consolidated Financial Statements.


                                       -4-
<PAGE>
CCFNB BANCORP, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2005

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 seven
offices covering an area of approximately 484 square miles in North Central
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.

SEGMENT REPORTING

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

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


                                       -5-
<PAGE>
USE OF ESTIMATES

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

INVESTMENT SECURITIES

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

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) (see Note 6). Management's
decision to sell Available-for-Sale securities is based on changes in economic
conditions controlling the sources and uses of funds, terms, availability of and
yield of alternative investments, interest rate risk, and the need for
liquidity.

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

LOANS

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

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

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


                                       -6-
<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.

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

DERIVATIVES

The Bank has outstanding loan commitments that relate to the origination of
mortgage loans that will be held for resale. Pursuant to Statement of Financial
Accounting Standards (SFAS) No. 133 "Accounting for Derivative Instruments and
Hedging Activities" as amended by SFAS No. 138, "Accounting for Certain
Derivative Instruments and Certain Hedging Activities", and SFAS No. 149
"Amendments to SFAS 133 on Derivative Instruments and Hedging Activities" and
the guidance contained in the Derivatives Implementation Group Statement 133
Implementation Issue No. C 13, the Bank has accounted for such loan commitments
as derivative instruments. The outstanding loan commitments in this category did
not give rise to any losses for the period ended June 30, 2005 and the year
ended December 31, 2004, as the fair market value of each outstanding loan
commitment exceeded the Bank's cost basis in each loan commitment.


                                       -7-
<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 some of 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 directors and employees with the
Corporation being owner and primary beneficiary of the policies.

INVESTMENT IN INSURANCE AGENCY

On January 2, 2001, the Corporation acquired a 50% interest in a local insurance
agency, a corporation organized under the laws of the Commonwealth of
Pennsylvania. The income or loss from this investment is accounted for under the
equity method of accounting. The carrying value of this investment as of June
30, 2005 and December 31, 2004 was $196,000 and $187,000, respectively, and is
carried in other assets in the accompanying consolidated balance sheets.


                                       -8-
<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.

RECENT ACCOUNTING PRONOUNCEMENTS

In January 2004, the Financial Accounting Standards Board (FASB) issued Staff
Position No. 106-1 "Accounting and Disclosure Requirements Related to the
Medicare Prescription Drug, Improvement and Modernization Act of 2003", which
allows companies to recognize or defer recognizing the effects of the Medicare
Prescription Drug Improvement and Modernization Act of 2003, or Medicare Act,
for annual financial statements of fiscal years ending after December 7, 2003.
The Medicare Act introduced both a Medicare prescription-drug benefit and a
federal subsidy to sponsors of retiree health-care plans that provide a benefit
at least "actuarially equivalent" to the Medicare benefit. These provisions of
the Medicare Act affect accounting measurements. This standard did not have any
material impact on the Corporation's consolidated financial condition or results
of operations.


                                       -9-
<PAGE>
In September 2004, the FASB issued Staff Position Emerging Issues Task Force
("EITF") Issue No. 03-01, "Effective Date of Paragraphs 10-20 of EITF Issue No.
03-01, The Meaning of Other-Than-Temporary Impairment and Its Application to
Certain Investments", which delays the effective date for the measurement and
recognition guidance contained in EITF Issue No. 03-01. EITF Issue No. 03-01
provides guidance for evaluating whether an investment is other-than-temporarily
impaired and was originally effective for other-than-temporarily impairment
evaluations made in reporting periods beginning after June 15, 2004. The delay
in the effective date for the measurement and recognition guidance contained in
paragraphs 10 through 20 of EITF Issue No. 03-01 does not suspend the
requirement to recognize other-than-temporary impairments as required by
existing authoritative literature. The disclosure guidance in paragraphs 21 and
22 of EITF Issue No. 03-01 remains effective. The delay will be superseded
concurrent with the final issuance of EITF Issue No. 03-01a, which is expected
to provide implementation guidance on matters such as impairment evaluations for
declines in value caused by increases in interest rates and/or sector spreads.

In December 2004, the FASB issued Statement of Financial Accounting Standards
("SFAS") No. 153, "Exchanges of Nonmonetary Assets", which amends APB Opinion
No. 29, "Accounting for Nonmonetary Transactions". SFAS No. 153 eliminates the
exception from fair value measurement for nonmonetary exchanges of similar
productive assets in Opinion No. 29 and replaces it with an exception for
exchanges that do not have commercial substance. SFAS No. 153 specifies that a
nonmonetary exchange has commercial substance if the future cash flows of the
entity are expected to change significantly as a result of the exchange. SFAS
No. 153 is effective for nonmonetary exchanges occurring in fiscal periods
beginning after June 15, 2005. The adoption of SFAS No. 153 is not expected to
have a material impact on the Corporation's consolidated financial condition or
results of operations.

In December 2004, the FASB issued SFAS No. 123 (revised 2004), "Share-Based
Payment". This Statement is a revision of SFAS No. 123, "Accounting for
Stock-Based Compensation", and supersedes APB Opinion No. 25, "Accounting for
Stock Issued to Employees", and its related guidance. SFAS No. 123 (revised
2004) established standards for the accounting for transactions in which an
entity exchanges its equity instruments for goods or services. This Statement
requires that the cost resulting from all share-based payment transactions be
recognized in the financial statements. This Statement established fair value as
the measurement objective in accounting for share-based payment arrangements and
requires all entities to apply a fair-value-based measurement method in
accounting for share-based payment transactions with employees, except for
equity instruments held by employee share ownership plans. This Statement is
effective for public entities that do not file as small business issuers as of
the beginning of the first interim or annual reporting period that begins after
June 15, 2005. The adoption of SFAS No. 123 (revised 2004) is not expected to
have a material impact on the Corporation's consolidated financial condition or
results of operations.

ADVERTISING COSTS

It is the Corporation's policy to expense advertising costs in the period in
which they are incurred. Advertising expense for the six month periods ended
June 30, 2005 and 2004 was approximately $41,000 and $37,000, respectively.

RECLASSIFICATION

Certain amounts in the consolidated financial statements of the prior years have
been reclassified to conform with presentation used in the 2005 consolidated
financial statements. Such reclassifications had no effect on the Corporation's
consolidated financial condition or net income.


                                      -10-
<PAGE>
NOTE 2 - ALLOWANCE FOR LOAN LOSSES

Changes in the allowance for loan losses for the periods ended June 30, 2005 and
June 30, 2004 were as follows:

<TABLE>
<CAPTION>
                                    (Amounts in
                                     Thousands)
                                  ---------------
                                   2005     2004
                                  ------   ------
<S>                               <C>      <C>
Balance, beginning of year        $1,392   $1,415
Provision charged to operations       60       80
Loans charged-off                    (22)    (118)
Recoveries                            39       20
                                  ------   ------
Balance, June 30                  $1,469   $1,397
                                  ======   ======
</TABLE>

At June 30, 2005, the total recorded investment in loans that are considered to
be impaired as defined by SFAS No. 114 was $942,000. These impaired loans had a
related allowance for loan losses of $159,000. No additional charge to
operations was required to provide for the impaired loans since the total
allowance for loan losses is estimated by management to be adequate to provide
for the loan loss allowance required by SFAS No. 114 along with any other
potential losses.

At June 30, 2005, there were no significant commitments to lend additional funds
with respect to non-accrual and restructured loans. Non-accrual loans at June
30, 2005 and December 31, 2004 were $942,000 and $1,241,000, respectively, all
of which were considered impaired.

Loans past due 90 days or more and still accruing interest amounted to $71,000
at June 30, 2005.

NOTE 3 - SHORT-TERM BORROWINGS

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

NOTE 4 - LONG-TERM BORROWINGS

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


                                      -11-
<PAGE>
NOTE 5 - DEFERRED COMPENSATION PLANS

The Bank has entered into certain non-qualified deferred compensation agreements
with certain executive officers and directors. Expense related to these
non-qualified deferred compensation plans amounted to $77,000 and $71,000 for
the six month periods ended June 30, 2005 and 2004, respectively.

There were no substantial changes in other plans as disclosed in the 2004 Annual
Report.

NOTE 6 - STOCKHOLDERS' EQUITY

Changes in stockholders' equity for the period ended June 30, 2005 were as
follows:

<TABLE>
<CAPTION>
                                                      (Amounts in Thousands, Except Common Share Data)
                               ---------------------------------------------------------------------------------------------
                                                                                           Accumulated
                                                                                              Other
                                                                                          Comprehensive
                                 Common     Common             Comprehensive   Retained       Income      Treasury
                                 Shares      Stock   Surplus       Income      Earnings       (Loss)        Stock     Total
                               ----------   ------   -------   -------------   --------   -------------   --------   -------
<S>                            <C>          <C>      <C>       <C>             <C>        <C>             <C>        <C>
Balance at January 1, 2005     $1,267,718   $1,585   $3,385                    $23,324        $ 213        $  --     $28,507
Comprehensive Income:
   Net income                                                     $1,056         1,056                                 1,056
   Change in unrealized gain
      (loss) on investment
      securities available-
      for-sale net of
      reclassification
      adjustment and
      tax effects                                                   (135)                      (135)                    (135)
      TOTAL COMPREHENSIVE                                         ------
         INCOME                                                   $  921
Issuance of 4,152 shares of                                       ======
   common stock under
   dividend reinvestment and
   stock purchase plans             4,152        5      107                         --           --           --         112
Purchase of 10,000 shares of
   treasury stock                      --       --       --                         --           --         (279)       (279)
Retirement of 10,000 shares
   of treasury stock              (10,000)     (13)    (266)                        --           --          279          --
Cash dividends $.36 per
   share                               --       --       --                       (455)          --           --        (455)
                               ----------   ------   ------                    -------        -----        -----     -------
Balance at June 30, 2005        1,261,870   $1,577   $3,226                    $23,925        $  78        $  --     $28,806
                               ==========   ======   ======                    =======        =====        =====     =======
</TABLE>

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.


                                      -12-
<PAGE>
The Corporation may require collateral or other security to support financial
instruments with off-balance sheet credit risk. The contract or notional amounts
at June 30, 2005 and December 31, 2004 were as follows:

<TABLE>
<CAPTION>
                                                          (Amounts in Thousands)
                                                         -----------------------
                                                         June 30,   December 31,
                                                           2005         2004
                                                         --------   ------------
<S>                                                      <C>        <C>
Financial instruments whose contract amounts represent
   credit risk:
   Commitments to extend credit                           $16,453      $13,829
   Financial standby letters of credit                      1,877        1,742
   Performance standby letters of credit                      571          846
   Dealer floor plans                                       2,195          852
</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 payment to a third party. The
credit risk involved in issuing letters of credit is essentially the same as
that involved in extending loan facilities to customers. The Corporation holds
collateral supporting those commitments for which collateral is deemed
necessary.

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

The Corporation granted commercial, consumer and residential loans to customers
within Pennsylvania. Of the total loan portfolio at June 30, 2005, 84.6% 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.


                                      -13-
<PAGE>
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 six-month period ended June 30, 2005, 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, 2004, filed with the Securities and Exchange Commission.


                                      -14-
<PAGE>
             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

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

We have reviewed the accompanying consolidated balance sheet of CCFNB Bancorp,
Inc. and Subsidiary as of June 30, 2005, and the related consolidated statements
of income for the three and six-month periods ended June 30, 2005 and 2004 and
the consolidated statements of cash flows for the six-month periods ended June
30, 2005 and 2004. These consolidated interim financial statements are the
responsibility of the management of CCFNB Bancorp, Inc. and Subsidiary.

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

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

We have previously audited, in accordance with the standards of the Public
Company Accounting Oversight Board (United States), the consolidated balance
sheet of CCFNB Bancorp, Inc. and Subsidiary as of December 31, 2004, and the
related consolidated statements of income, changes in stockholders' equity, and
cash flows for the year then ended (not presented herein); and in our report
dated January 14, 2005, 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, 2004, 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
July 15, 2005


                                      -15-
<PAGE>
                               CCFNB BANCORP, INC.
                                    FORM 10-Q
                         FOR THE QUARTER ENDED JUNE 2005

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 Six
                                                  Months
                                              Ended June 30,                   At and For the Years Ended December 31,
                                         -----------------------   --------------------------------------------------------------
                                            2005         2004         2004         2003         2002         2001         2000
                                         ----------   ----------   ----------   ----------   ----------   ----------   ---------
<S>                                      <C>          <C>          <C>          <C>          <C>          <C>          <C>
Income and Expense:
   Interest income                       $    5,547   $    5,363   $   10,843   $   11,221   $   12,780   $   13,720   $   13,552
   Interest expense                           1,940        1,806        3,669        4,366        5,741        6,924        6,859
                                         ----------   ----------   ----------   ----------   ----------   ----------   ----------
   Net interest income                        3,607        3,557        7,174        6,855        7,039        6,796        6,693
   Loan loss provision                           60           80          140          200          309          163           54
                                         ----------   ----------   ----------   ----------   ----------   ----------   ----------
   Net interest income after loan loss
      provision                               3,547        3,477        7,034        6,655        6,730        6,633        6,639
   Non-interest income                          829          724        1,530        1,508        1,210        1,149        1,053
   Non-interest expense                       3,039        2,903        5,746        5,409        5,479        5,104        4,967
                                         ----------   ----------   ----------   ----------   ----------   ----------   ----------
   Income before income taxes                 1,337        1,298        2,818        2,754        2,461        2,678        2,725
   Income taxes                                 281          267          601          591          539          621          671
                                         ----------   ----------   ----------   ----------   ----------   ----------   ----------
   Net income                            $    1,056   $    1,031   $    2,217   $    2,163   $    1,922   $    2,057   $    2,054
                                         ==========   ==========   ==========   ==========   ==========   ==========   ==========
Per Share: (1)
   Net income                            $      .84   $      .81   $     1.74   $     1.69   $     1.47   $     1.54   $     1.51
   Cash dividends paid                          .36          .34          .70          .66          .63          .59          .56
   Average shares outstanding             1,264,235    1,277,196    1,267,718    1,281,265    1,309,084    1,338,007    1,355,624
Average Balance Sheet:
   Loans                                 $  149,628   $  147,299   $  147,348   $  149,485   $  147,545   $  139,219   $  134,325
   Investments                               56,627       62,230       61,999       58,152       54,197       50,593       47,003
   Other earning assets                       6,939        3,100        5,705        8,036        5,309        6,569          219
   Total assets                             230,659      228,555      231,477      230,975      223,476      208,630      196,727
   Deposits                                 169,401      171,542      172,028      171,956      150,883      149,601      139,774
   Other interest-bearing liabilities        31,351       27,948       29,823       29,772       29,356       31,629       31,203
   Stockholders' equity                      28,605       27,840       28,136       27,223       26,615       25,890       23,910
Balance Sheet Data:
   Loans                                 $  149,441   $  148,198   $  149,900   $  147,631   $  151,338   $  142,990   $  137,360
   Investments                               54,909       63,367       61,834       62,775       53,528       57,121       47,311
   Other earning assets                       9,054        1,872       11,012        6,882       10,068        9,644        4,814
   Total assets                             229,587      229,817      235,377      232,914      229,032      214,238      203,054
   Deposits                                 167,562      173,238      172,487      171,786      172,127      155,666      143,169
   Other interest-bearing liabilities        31,925       27,755       33,080       32,325       28,621       31,384       33,477
   Stockholders' equity                      28,806       27,618       28,506       27,603       26,840       26,042       25,050
Ratios: (2)
   Return on average assets                     .92%         .90%         .96%         .94%         .86%         .99%        1.04%
   Return on average equity                    7.38%        7.41%        7.88%        7.95%        7.22%        7.90%        8.59%
   Dividend payout ratio                      43.09%       42.10%       40.19%       39.02%       42.86%       38.31%       37.09%
   Average equity to average assets
ratio                                         12.40%       12.18%       12.17%       11.79%       11.77%       12.16%       12.34%
</TABLE>

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

(2)  The ratios for the six month period ending June 31, 2005 and 2004 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.

EARNINGS SUMMARY

Net income for the six months ended June 30, 2005 was $1,056,000 or $.84 per
basic and diluted share. These results compare with net income of $1,031,000, or
$.81 per basic and diluted share for the same period in 2004. Annualized return
on average equity decreased to 7.38 percent from 7.41 percent, while the
annualized return on average assets increased to .92 percent from .90 percent,
for the six months ended June 30, 2005 and 2004 respectively.


                                       16
<PAGE>
Net interest income continues to be the largest source of our operating income.
Net interest income on a tax equivalent basis remained at $3.8 million at June
30, 2005 and June 30, 2004. Overall, interest earning assets yielded 5.20
percent for the six months ended June 30, 2005 compared to 5.04 percent yield
for the six months ended June 30, 2004. The tax equivalized interest margin
increased to 3.58 percent for the six months ended June 30, 2005 compared to
3.54 percent for the six months ended June 30, 2004.

Average interest earning assets increased $.6 million or .3 percent for the six
months ended June 30, 2005 over the same period in 2004 from $212.6 million at
June 30, 2004 to $213.2 million at June 30, 2005. Average loans increased $2.3
million or 1.6 percent, average investments decreased $5.6 million or 9.0
percent from $62.2 million at June 30, 2004 to $56.6 million at June 30, 2005
and average federal funds sold and interest-bearing deposits with other
financial institutions increased $3.8 million or 122.6 percent from $3.1 million
at June 30, 2004 to $6.9 million at June 30, 2005.

Average interest bearing liabilities for the six months ended June 30, 2005 were
$182.5 million and for the six month period ending June 30, 2004 they were
$183.0 million. Average short-term borrowings were $11.6 million at June 30,
2004 and 2005. Long-term debt, which includes primarily FHLB advances, was $11.3
million at June 30, 2004 and 2005. Average demand deposits decreased $1.7
million from 2004 balances.

The average interest rate for loans increased 15 basis points to 6.13 percent at
June 30, 2005 compared to 5.98 percent June 30, 2004. Interest-bearing deposits
with other Financial Institutions and Federal Funds Sold rates increased 71
basis points to 2.39 percent at June 30, 2005 from 1.68 percent at June 30, 2004
Average rates on interest bearing deposits increased by 8 basis points from 1.72
percent to 1.80 percent in one year. Average interest rates also increased on
total interest bearing liabilities by 16 basis points to 2.13 percent from 1.97
percent. The reason for these increases on interest bearing liabilities was
primarily attributed to the interest rates on all deposit liabilities and the
tied-to-prime interest rates paid on repurchase agreements rising slowly
throughout the year. The tax equivalized net interest margin increased to 3.58
percent for the six months ended June 30, 2005 from 3.54 percent for the six
months ended June 30, 2004. The cost of long-term debt averaged 5.96 percent for
the past several years which contributed to the declining net interest margin.
This high costing liability will remain due to the fact that the Federal Home
Loan Bank has the option to reprice these loans at their discretion. Until
interest rates would rise to make the current 5.96 percent average rate
unattractive, this in all probability will not occur. We will continue to price
conservatively.

NET INTEREST INCOME

Net interest income remained at $3.6 million for the six months ended June 30,
2005 and 2004.

The following table reflects the components of net interest income for each of
the six months ended June 30, 2005 and 2004.

           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>
                                                              Six Months Ended June 30, 2005 and 2004
                                                 -----------------------------------------------------------------
                                                            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                                  $  2,079    $   19      1.83%      $1,837    $   22     2.40%
Investment securities (3)                          56,627       987      3.82%      62,230     1,018     3.67%
Federal Funds Sold                                  4,860        64      2.63%       1,263         4      .63%
Loans                                             149,628     4,477      6.13%     147,299     4,319     5.98%
                                                 --------    ------               --------    ------     ----
Total interest earning assets                    $213,194    $5,547      5.20%    $212,629    $5,363     5.04%
                                                 ========    ======               ========    ======

Reserve for loan losses                            (1,456)                          (1,381)
Cash and due from banks                             6,000                            5,135
Other assets                                       12,921                           12,172
                                                 --------                         --------
Total assets                                     $230,659                         $228,555
                                                 ========                         ========

LIABILITIES AND CAPITAL:
Interest bearing deposits                        $151,185    $1,359      1.80%    $155,088    $1,337     1.72%
Short-term borrowings                              20,032       245      2.45%      16,616       130     1.56%
Long-term borrowings                               11,319       336      5.94%      11,332       339     5.98%
                                                                         ----     --------    ------
Total interest-bearing liabilities               $182,536    $1,940      2.13%    $183,036    $1,806     1.97%
                                                 ========    ======               ========    ======

Demand deposits                                  $ 18,216                         $ 16,454
Other liabilities                                   1,302                            1,225
Stockholders' equity                               28,605                           27,840
                                                 --------                         --------
Total liabilities and capital                    $230,659                         $228,555
                                                 ========                         ========
NET INTEREST INCOME /                                        $3,607      3.38%                $3,557     3.35%
   NET INTEREST MARGIN (4)

TAX EQUIVALENT NET INTEREST INCOME /                         $3,815      3.58%                $3,765     3.54%
   NET INTEREST MARGIN (5)
</TABLE>


                                       17
<PAGE>
(1)  Average volume information was computed using daily (or monthly) averages
     for interest earning and bearing accounts. Certain balance sheet items
     utilized quarter end balances for averages. Due to the availability of
     certain daily and monthly average balance information, certain
     reclassifications were made to prior period amounts.

(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 annualized net interest income
     by total interest earning assets.

(5)  Interest and yield are presented on a tax-equivalent basis using 34 percent
     for 2005 and 2004.

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>
                                              Six Months Ended June 30, 2005
                                                    Compared with 2004
                                                  Increase (Decrease)(2)
                                              ------------------------------
                                                   Volume   Rate   Total
                                                   ------   ----   -----
                                                       (In thousands)
<S>                                           <C>           <C>    <C>
Interest income:
   Loans (1)                                         139     220    359
   Investments (1)                                  (236)     93   (143)
   Federal funds sold and other short-term
      investments                                     68      18     86
                                                    ----    ----   ----
Total Interest Income:                               (29)    331    302

Interest expense:

   Deposits                                          (67)    124     57
   Short-term borrowings                              53     148    201
   Long term debt                                     (1)     (5)    (6)
                                                    ----    ----   ----
Total Interest expense:                              (15)    267    252

Net Interest Income:                                 (14)     64     50
</TABLE>

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

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

The outstanding balance of loans at June 30, 2005 was $149.4 million compared to
$149.9 million at December 31, 2004.

Income from investment securities declined $31 thousand at $987 thousand for the
six months ended June 30, 2005 compared to $1,018 thousand at June 30, 2004.

The average balance of investment securities for the six months ended June 30,
2005 was $56.6 million compared to $62.2 million at June 30, 2004.

Total interest expense increased $134 thousand or 7.4 percent for the first six
months of 2005 as compared to the first six months of 2004. The average yield on
interest earning assets increased from 5.04 percent to 5.20 percent through June
2004 and 2005, respectively.

NON-INTEREST INCOME

The following table presents the components of non-interest income for the six
months ended June 30, 2005 and 2004:

<TABLE>
<CAPTION>
                                       Six Months Ended
                                           June 30,
                                       ----------------
                                        (In thousands)
                                          2005   2004
                                          ----   ----
<S>                                    <C>       <C>
Service charges and fees                  $486   $369
Trust Department income                     71     75
Investment securities gain - net             0      0
Gain on sale of loans                       23      9
Gain on Cash Surrender Value of BOLI       131    128
Other                                      118    143
                                          ----   ----
   Total                                  $829   $724
                                          ----   ----
</TABLE>

Non-interest income continues to represent a considerable source of our income.
We are committed to increasing non-interest income. Increases will be from our
existing sources of non-interest income and any new opportunities that may
develop. For the six months ended June 30, 2005, total non-interest income
increased $105 thousand to $829 thousand or 14.5 percent, compared to $724
thousand for the six month period ended June 30 2004. Service charges and fees
increased $117 thousand from $369 thousand at June 30, 2004 to $486 thousand or
31.7 percent at June 30, 2005. This increase is mainly attributable to the
introduction of the "Overdraft Privilege" program in the second half of 2004.
Trust Department income decreased 5.3% from $75 thousand at June 30, 2004 to $71
thousand at June 30, 2005. By selling fixed rate mortgages through the MPF and
PHFA programs we increased our gain on sale of loans from $9 thousand through
June 2004 to $23 thousand through June 2005. The MPF loans are being serviced by
CCFNB and the bank retains some credit risk. Investment in Bank Owned Life
Insurance is reflected in the June 30, 2005 balance sheet and income statement.
Other non-interest income decreased $25 thousand from $143 thousand at June 30,
2004 to $118 thousand at June 30, 2005.


                                       18
<PAGE>
NON-INTEREST EXPENSE

The following table presents the components of non-interest expense for the six
months ended June 30, 2004 and 2005:

<TABLE>
<CAPTION>
                                     Six Months Ended
                                         June 30,
                                     ----------------
                                       2005     2004
                                      ------   ------
                                  (Dollars in Thousands)
<S>                                  <C>       <C>
Salaries and  wages                   $1,132   $1,139
Employee benefits                        399      400
Net occupancy expense                    231      201
Furniture and equipment expense          250      235
State shares tax                         141      139
Professional Services                    157      118
Director Fees                             94       73
Stationery and Supplies                   76       70
Other expense                            559      528
                                      ------   ------
   Total                              $3,039   $2,903
                                      ------   ------
</TABLE>

Non-interest expense increased from $2.9 million at June 30, 2004 to $3.0
million at June 30, 2005.

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 decreased .6 percent at June 30, 2005 compared to June 30, 2004.
Employee benefits remained at or near $400 thousand at June 30, 2004 and 2005.

Occupancy expense increased 14.9 percent. This increase is partly attributable
to additional landscaping and the hot temperatures of late spring and early
summer. Furniture and equipment expense reflects a $15 thousand or 6.4 percent
increase for the first six months of 2005 compared to the first six months of
2004. New optical hardware is replacing fully depreciated hardware and
recognition of depreciation on this new equipment will have the effect of
increased expense going forward.

Pennsylvania Bank Shares Tax increased 1.4 percent from $139 thousand at June
30, 2004 compared to $141 thousand at June 30, 2005.

Professional services increased 33.1 percent from $118 thousand at June 30, 2004
to $157 thousand at June 30, 2005. This is partly attributable to the Sarbanes
Oxley (Sox 404) required project that is ongoing throughout 2005 and 2006.

Director's fees increased 28.8 percent from $73 thousand through June 30, 2004
compared to $94 thousand through June 30, 2005. Beginning January 2005, the
Chairman of the Board fee increased from $21 thousand annually to $50 thousand
annually.

Stationery and Supplies increased 8.6 percent in comparing $70 thousand at June
30, 2004 to $76 thousand at June 30, 2005.

Other expenses increased $31 thousand or 5.9 percent from $528 thousand at June
30, 2004 to $559 thousand at June 30, 2005.

INCOME TAXES

Income tax expense as a percentage of pre-tax income was 21.0 percent for the
six months ended June 30, 2005 compared with 20.6 percent for the same period in
2004. The effective tax rate for 2005 remains at 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. We do not currently use derivatives to manage
market and interest rate risks. 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 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 As of
June 30, 2005, we had $54.9 million of securities available for sale recorded at
their fair value, compared with $61.8 million at December 31, 2004. As of June
30, 2005, the investment securities available for sale had an unrealized gain of
$78 thousand, net of deferred taxes, compared with an unrealized gain of $213
thousand, net of deferred taxes, at December 31, 2004. 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.


                                       19
<PAGE>
     In accordance with disclosures required by EITF NO. 03-1, the summary below
reflects the gross unrealized losses and fair value, aggregated by investment
category that individual securities have been in a continuous unrealized loss
position for less than or more than 12 months as of June 30, 2005:

<TABLE>
<CAPTION>
                                        Less than 12 months         12 months or more                Total
                                     ------------------------   ------------------------   ------------------------
                                                   Unrealized                 Unrealized                 Unrealized
Description of Security               Fair Value      Loss       Fair Value      Loss       Fair Value      Loss
----------------------------------   -----------   ----------   -----------   ----------   -----------   ----------
<S>                                  <C>           <C>          <C>           <C>          <C>           <C>
Obligations of U.S. Government
Corporations and Agencies:
   Mortgage backed                   $ 8,714,061    $ 59,847    $ 8,807,941    $148,038    $17,522,002    $207,885
   Other                              10,672,422      77,578      5,403,594      96,406     16,076,016     173,984
Obligations of state and political
Subdivisions                             356,570         823              0           0        356,570         823
Marketable Equity Securities             136,890       8,188         34,062      10,128        170,952      18,316

Total                                $19,879,943    $146,436    $14,245,597    $254,572    $34,125,540    $401,008
</TABLE>

Note: This schedule reflects only unrealized losses without the effect of
unrealized gains.

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

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

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

Non-Performing Assets

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

<TABLE>
<CAPTION>
                            (Dollars in thousands)
                            ----------------------
                                June     December
                              30, 2005   31, 2004
                              --------   --------
<S>                         <C>          <C>
Past due and non-accrual:
   Days 30 - 89                $  705     $  492
   Days 90 plus                    71         20
   Non-accrual                    942      1,241
Total                          $1,718     $1,753
</TABLE>

Past due and non-accrual loans decreased 5.6 percent from $1.8 million at
December 31, 2004 to $1.7 million at June 30, 2005. The loan delinquency
expressed as a ratio to total loans was 1.1 percent at June 30, 2005 and 1.2
percent at December 31, 2004.

The provision for loan losses for the first six months of 2005 was $60 thousand
compared to first six months of 2004 at $80 thousand. Management is diligent in
its efforts to reduce these delinquencies and has increased monitoring and
review of current loans to foresee future delinquency occurrences and react to
them quickly.

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:

                MATURITY AND REPRICING DATA FOR LOANS AND LEASES

<TABLE>
<CAPTION>
                                                                      (Dollars in
                                                                       Thousands)
                                                                     June 30, 2005
                                                                     -------------
<S>                                                                  <C>
Closed-end loans secured by first liens and 1-4 family residential
   properties with a remaining maturity or repricing frequency of:
   (1) Three months or less                                              $ 3,834
   (2) Over three months through 12 months                                13,428
   (3) Over one year through three years                                  25,218
   (4) Over three years through five years                                 8,132
   (5) Over five years through 15 years                                   17,169
   (6) Over 15 years                                                         333

All loans and leases other than closed-end loans secured by first
   liens on 1-4 family residential properties with a remaining
   maturity or repricing frequency of:
   (1) Three months or less                                               24,203
   (2) Over three months through 12 months                                 8,703
   (3) Over one year through three years                                  20,526
   (4) Over three years through five years                                14,899
   (5) Over five years through 15 years                                   10,997
   (6) Over 15 years                                                       1,102
                                                                        --------
      Sub-total                                                         $148,544
Add: Non-accrual loans not included above                                    942
Less: Unearned income                                                        (45)
                                                                        --------
      Total Loans and Leases                                            $149,441
</TABLE>

ALLOWANCE FOR LOAN LOSSES

Because our loan portfolio and delinquencies 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 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.

The following table presents a summary of CCFNB's loan loss experience as of the
dates indicated:

<TABLE>
<CAPTION>
                                                                           For the Six Months
                                                                             Ending June 30,
                                                                          Amounts in thousands
                                                                          --------------------
                                                                             2005       2004
                                                                           --------   --------
<S>                                                                       <C>         <C>
Average loans outstanding:                                                 $149,628   $147,299
                                                                           --------   --------
Total loans at end of period                                                149,441    149,900
                                                                           --------   --------
Balance at beginning of period                                                1,392      1,415
   Total charge-offs                                                            (22)      (118)
   Total recoveries                                                              39         20
                                                                           --------   --------
   Net charge-offs                                                               17        (98)
   Provision for loan losses                                                     60         80
                                                                           --------   --------
 Balance at end of period                                                  $  1,469   $  1,397
                                                                           --------   --------
Net charge-offs as a percent of average loans outstanding during period        (.01)%      .07%
Allowance for loan losses as a percent of total loans                           .98%       .93%
</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.


                                       21
<PAGE>
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>
                                                       June 30, 2005         December 31, 2004
                                                   ---------------------   ---------------------
                                                                 Minimum                 Minimum
                                                   Calculated   Standard   Calculated   Standard
                                                     Ratios      Ratios      Ratios      Ratios
                                                   ----------   --------   ----------   --------
<S>                                                <C>          <C>        <C>          <C>
Risk Based Ratios:
Tier I Capital to risk-weighted assets               18.97%       4.00%      19.27%       4.00%
Total Qualifying Capital to risk-weighted assets     19.95%       8.00%      20.31%       8.00%
</TABLE>

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

<TABLE>
<CAPTION>
                                   June 30,   December 31,
                                     2005         2004
                                   --------   ------------
<S>                                <C>        <C>
Tier I Capital to average assets    12.45%       12.17%
</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 $22.83 at June 30, 2005, compared with $22.49
per share at December 31, 2004.

Cash dividends declared amounted to $.36 per share, for the six months ended
June 30, 2005, equivalent to a dividend payout ratio of 43.09 percent, compared
with 42.10 percent for the same period in 2004. 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.

The following table presents information on the shares of our common stock that
we repurchased during the second quarter of 2005:

                           CCFNB BANCORP, INC.
                  ISSUER PURCHASES OF EQUITY SECURITIES

<TABLE>
<CAPTION>
                                                         NUMBER OF SHARES
                                                        PURCHASED AS PART
                                                           OF PUBLICLY      NUMBER OF SHARES THAT
                    NUMBER OF SHARES   PRICE PAID PER       ANNOUNCED        MAY YET BE PURCHASED
      MONTH             PURCHASED           SHARE          PROGRAM (1)        UNDER THE PROGRAM
      -----         ----------------   --------------   -----------------   ---------------------
<S>                 <C>                <C>              <C>                 <C>
4/14/05 - 4/14/05         2,000            $27.50             2,000                 76,000
5/16/05 - 5/16/05         2,000            $27.60             2,000                 74,000
6/20/05 - 6/20/05         2,000            $28.10             2,000                 72,000
                          -----                               -----
   TOTAL                  6,000                               6,000
</TABLE>

(1)  This program was announced in 2003 and represents the second buy-back
     program. The Board of Directors approved purchase of 100,000 shares. There
     is no expiration date associated with this program.


                                       22
<PAGE>
CONTROLS AND PROCEDURES

ITEM 4. CONTROLS AND PROCEDURES

     Our Chief Executive Officer (CEO) and Principal Financial Officer (PFO)
have concluded that our disclosure controls and procedures (as defined in Rules
13a - 15(e) and 15d - 15(e) under the Securities Exchange Act of 1934, as
amended), based on their evaluation of these controls and procedures as of the
end of the period covered by this Report, were effective as of such date at the
reasonable assurance level as discussed below to ensure that information
required to be disclosed by us in the reports we file under the Securities
Exchange Act of 1934, as amended, is recorded, processed, summarized and
reported within the time periods specified in the rules and forms of the
Securities and Exchange Commission and that such information is accumulated and
communicated to our management, including its principal executive officer and
principal financial officer, as appropriate to allow timely decisions regarding
required disclosure.

     Our management, including the CEO and PFO, does not expect that our
disclosure controls and internal controls will prevent all errors 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 system are met.
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 our 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. In addition, controls
can be circumvented by the individual acts of some persons, by collusion of two
or more people or by management override of the controls.

     The CEO and PFO have evaluated the changes to our internal controls over
financial reporting that occurred during our fiscal quarter ended June 30, 2005,
as required by paragraph (d) Rules 13a - 15 and 15d - 15 under the Securities
Exchange Act of 1934, as amended, and have concluded that there were no changes
that materially affected, or are reasonably likely to materially affect, our
internal controls 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 - 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.


                                       24
<PAGE>
                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this quarterly report on Form 10-Q for the period
ended June 30, 2005, 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: August 10, 2005


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

                                        Date: August 10, 2005


                                       25