<PAGE>   1
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                    FORM 10-Q



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

        For the quarterly period ended June 30, 2001


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

         For the transition period from --------------- to ---------------


Commission file number 0-19028

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

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

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


Issuer's telephone number, including area code:  (570) 784-4400


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


          Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable date.
1,336,536 shares of $1.25 (par) common stock were outstanding as of July
25, 2001.
<PAGE>   2
                       CCFNB BANCORP, INC. AND SUBSIDIARY

                                  JUNE 30, 2001

                                   INDEX 10-Q



EXHIBIT 27 - FINANCIAL DATA SCHEDULE                                     NO PAGE
                                                                            #

PART I  - FINANCIAL INFORMATION:


        - Consolidated Balance Sheets                                       1


        - Consolidated Statements of Income                                 2


        - Consolidated Statements of Cash Flows                             3


        - Notes to Consolidated Financial Statements                      4 - 11


        - Report of Independent Certified Public Accountants               12


        - Management's Discussion and Analysis of Consolidated
          Financial Condition and Results of Operations                  13 - 19


PART II - OTHER INFORMATION                                                20


SIGNATURES                                                                 21
<PAGE>   3
CCFNB BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
UNAUDITED

<TABLE>
<CAPTION>
                                                                             JUNE         DECEMBER
                                                                           30, 2001       31, 2000
                                                                           ---------      ---------
<S>                                                                        <C>            <C>
ASSETS
Cash and due from banks .............................................      $   5,153      $   6,722
Interest-bearing deposits with other banks ..........................          6,518          5,441
Federal funds sold ..................................................          2,000            500
Investment securities:
  Securities Available-for-Sale .....................................         49,692         46,185
Loans, net of unearned income .......................................        137,452        137,360
Allowance for loan losses ...........................................            981          1,008
                                                                           ---------      ---------
  Net loans .........................................................      $ 136,471      $ 136,352
Premises and equipment ..............................................          4,754          4,922
Accrued interest receivable .........................................            991          1,038
Other assets ........................................................          2,184          1,894
                                                                           ---------      ---------
     TOTAL ASSETS ...................................................      $ 207,763      $ 203,054
                                                                           =========      =========

LIABILITIES AND STOCKHOLDERS' EQUITY


LIABILITIES
Deposits:
  Non-interest bearing ..............................................      $  14,323      $  14,593
  Interest bearing ..................................................        135,381        128,576
                                                                           ---------      ---------
     Total Deposits .................................................      $ 149,704      $ 143,169
Short-term borrowings ...............................................         19,596         20,109
Long-term borrowings ................................................         11,363         13,367
Accrued interest and other expenses .................................          1,218          1,326
Other liabilities ...................................................             82             33
                                                                           ---------      ---------
     TOTAL LIABILITIES ..............................................      $ 181,963      $ 178,004
                                                                           ---------      ---------


STOCKHOLDERS' EQUITY
Common stock, par value $1.25 per share; authorized 5,000,000 shares;
  issued 1,342,944 shares in 2001 and
  1,346,328 shares in 2000 ..........................................      $   1,674      $   1,683
Surplus .............................................................          5,017          5,146
Retained earnings ...................................................         18,886         18,310
Accumulated other comprehensive income (loss) .......................            223            (89)
                                                                           ---------      ---------
     TOTAL STOCKHOLDERS' EQUITY .....................................      $  25,800      $  25,050
                                                                           ---------      ---------
     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY .....................      $ 207,763      $ 203,054
                                                                           =========      =========
</TABLE>


          See accompanying notes to Consolidated Financial Statements.


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

<TABLE>
<CAPTION>
                                                                 FOR THE SIX                        FOR THE THREE
                                                                MONTHS ENDING                       MONTHS ENDING
                                                                   JUNE 30,                           JUNE 30,
                                                                   --------                           --------
                                                           2001              2000              2001              2000
                                                        ----------        ----------        ----------        ----------
<S>                                                     <C>               <C>               <C>               <C>
INTEREST INCOME
Interest and fees on loans:
  Taxable ......................................        $    5,259        $    5,174        $    2,609        $    2,615
  Tax-exempt ...................................                80                63                41                32
Interest and dividends on investment securities:
  Taxable interest .............................               890               991               451               489
  Tax-exempt interest ..........................               396               363               202               181
  Dividends ....................................                 4                 4                 2                 2
Interest on federal funds sold .................                40                 0                21                 0
Interest on deposits in other banks ............               198                 8                87                 5
Other interest income ..........................                37                38                18                19
                                                        ----------        ----------        ----------        ----------
     TOTAL INTEREST INCOME .....................        $    6,904        $    6,641        $    3,431        $    3,343
                                                        ----------        ----------        ----------        ----------

INTEREST EXPENSE
Interest on deposits ...........................        $    2,817        $    2,517        $    1,398        $    1,271
Interest on short-term borrowings ..............               440               577               186               266
Interest on long-term borrowings ...............               388               205               188               121
                                                        ----------        ----------        ----------        ----------
     TOTAL INTEREST EXPENSE ....................        $    3,645        $    3,299        $    1,772        $    1,658
                                                        ----------        ----------        ----------        ----------

Net interest income ............................        $    3,259        $    3,342        $    1,659        $    1,685
Provision for loan losses ......................                23                39                15                19
                                                        ----------        ----------        ----------        ----------
     NET INTEREST INCOME AFTER PROVISION FOR
     LOAN LOSSES ...............................        $    3,236        $    3,303        $    1,644        $    1,666
                                                        ----------        ----------        ----------        ----------

NON-INTEREST INCOME
Service charges and fees .......................        $      302        $      295        $      158        $      147
Trust department income ........................               112                82                63                49
Securities gains - net .........................                37                 0                37                 0
Other income ...................................                96               123                53                79
                                                        ----------        ----------        ----------        ----------
     TOTAL NON-INTEREST INCOME .................        $      547        $      500        $      311        $      275
                                                        ----------        ----------        ----------        ----------

NON-INTEREST EXPENSES
Salaries and wages .............................        $    1,007        $    1,012        $      490        $      514
Pensions and other employee benefits ...........               340               330               170               163
Occupancy expense, net .........................               194               170                98                83
Furniture and equipment expense ................               267               312               135               156
Other operating expenses .......................               728               712               365               373
                                                        ----------        ----------        ----------        ----------
     TOTAL NON-INTEREST EXPENSES ...............        $    2,536        $    2,536        $    1,258        $    1,289
                                                        ----------        ----------        ----------        ----------

Income before income taxes .....................        $    1,247        $    1,267        $      697        $      652
Income tax expense .............................               283               306               164               156
                                                        ----------        ----------        ----------        ----------
     NET INCOME ................................        $      964        $      961        $      533        $      496
                                                        ==========        ==========        ==========        ==========
PER SHARE DATA
Net income .....................................        $      .72        $      .71        $      .40        $      .36
Cash dividends .................................               .29               .28               .15               .14
Weighted average shares outstanding ............         1,342,944         1,362,569         1,342,944         1,362,569
</TABLE>


          See accompanying notes to Consolidated Financial Statements.


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

<TABLE>
<CAPTION>
                                                                             FOR THE SIX
                                                                            MONTHS ENDING
                                                                               JUNE 30,
                                                                        2001             2000
                                                                      --------         --------
<S>                                                                   <C>              <C>
OPERATING ACTIVITIES
Net income ...................................................        $    964         $    961
Adjustments to reconcile net income to net cash provided by
 operating activities:
    Provision for loan losses ................................              23               39
    Provision for depreciation and amortization ..............             221              270
    Premium amortization on investment securities ............              29               18
    Discount accretion on investment securities ..............              (9)              (8)
    Gain (loss) on sales of investment securities ............             (37)               0
    Deferred income taxes (benefit) ..........................             (13)             (17)
    (Increase) in accrued interest receivable and other assets            (336)            (181)
    (Decrease) in accrued interest, other expenses and other
      liabilities ............................................            (116)            (126)
                                                                      --------         --------
      NET CASH PROVIDED BY OPERATING ACTIVITIES ..............        $    726         $    956
                                                                      --------         --------

 INVESTING ACTIVITIES
 Proceeds from sales, maturities and redemptions of investment
   securities Available-for-Sale .............................        $ 16,665         $  1,904
 Proceeds from maturities and redemptions of Held-to-Maturity
   investment securities .....................................               0              200
 Purchase of investment securities Available-for-Sale ........         (19,680)               0
 Net increase (decrease) in loans ............................            (142)             827
 Purchases of premises and equipment .........................             (53)             (92)
                                                                      --------         --------
      NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES ....        $ (3,210)        $  2,839
                                                                      --------         --------

 FINANCING ACTIVITIES
 Net increase (decrease) in deposits .........................        $  6,535         $  1,630
 Net increase (decrease) in short-term borrowings ............            (513)         (12,801)
 Net increase (decrease) in long-term borrowings .............          (2,004)           6,996
 Proceeds from issuance of common stock ......................              81               82
 Acquisition of treasury stock ...............................            (219)            (292)
 Cash dividends paid .........................................            (388)            (381)
                                                                      --------         --------
      NET CASH PROVIDED BY FINANCING ACTIVITIES ..............        $  3,492         $ (4,766)
                                                                      --------         --------
      INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS .......        $  1,008         $   (971)

 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD ............          12,663            6,072
                                                                      --------         --------
       CASH AND CASH EQUIVALENTS AT END OF PERIOD ............        $ 13,671         $  5,101
                                                                      ========         ========

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the year for:
   Interest ..................................................        $  3,678         $  3,350
   Income taxes ..............................................        $    284         $    333
</TABLE>


          See accompanying notes to Consolidated Financial Statements.


                                       -3-
<PAGE>   6
CCFNB BANCORP, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2001



NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         The accounting and reporting policies of CCFNB Bancorp, Inc. and
         Subsidiary (the "Corporation") are in accordance with 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") and all other equity interests. All
         significant inter-company balances and transactions have been
         eliminated in consolidation.

         NATURE OF OPERATIONS & LINES OF BUSINESS

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

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

         On December 19, 2000, the Corporation became a Financial Holding
         Company by having filed an election to do so with the Federal Reserve
         Board. The Bancorp acquired a 50% interest in a local insurance agency
         during January 2001.

         USE OF ESTIMATES

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



                                       -4-
<PAGE>   7
         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 a component of
         Stockholders' Equity. Management's decision to sell Available-for-Sale
         securities is based on changes in economic conditions controlling the
         sources and uses of funds, terms, availability of and yield of
         alternative investments, interest rate risk, and the need for
         liquidity.

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

         Equity securities that do not have readily determinable fair values
         such as Federal Reserve Bank Stock, Federal Home Loan Bank Stock and
         Atlantic Central Banker's Bank Stock are carried at cost and are
         included in other assets.

         LOANS

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

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


                                       -5-
<PAGE>   8
         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.

         PREMISES AND EQUIPMENT

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

         OTHER REAL ESTATE OWNED

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



                                       -6-
<PAGE>   9
         INCOME TAXES

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

         PER SHARE DATA

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

         CASH FLOW INFORMATION

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

         TRUST ASSETS AND INCOME

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

         SEGMENT REPORTING

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



                                       -7-
<PAGE>   10
         Management does not separately allocate expenses, including the cost of
         funding loan demand, between the commercial, retail, trust and
         investment center operations of the Corporation. As such, discrete
         financial information is not available and segment reporting would not
         be meaningful.

         RECENT ACCOUNTING PRONOUNCEMENTS

         Statement of Financial Accounting Standards (SFAS) No. 133 (as amended
         by SFAS No. 138), "Accounting for Derivative Instruments and Hedging
         Activities", becomes effective for financial reporting periods
         beginning after June 15, 2000. SFAS No. 133 requires the recognition of
         the fair value of all derivative instruments on the consolidated
         balance sheets. Since the Corporation does not enter into transactions
         involving derivatives described in the standard and does not engage in
         hedging activities, the standard is not expected to have a significant
         impact on the Corporation's consolidated financial condition or results
         of operations.

         Statement of Financial Accounting Standards (SFAS) No. 140, "Accounting
         for Transfers and Servicing of Financial Assets and Extinguishment of
         Liabilities", is generally effective for transactions occurring after
         March 31, 2001. For recognition and reclassification of collateral and
         for disclosure related to securitization transactions and collateral,
         the effective date is for fiscal years ending after December 15, 2000.
         SFAS No. 140 replaces SFAS No. 125 and provides revisions to the
         standards for accounting and requirements for certain disclosures
         relating to securitizations and other transfers of financial assets.
         The standard is not expected to have a significant impact on the
         Corporation's consolidated financial condition or results of
         operations.

         RECLASSIFICATION

         Certain amounts in the consolidated financial statements of the prior
         years have been reclassified to conform with presentation used in the
         2001 consolidated financial statements. Such reclassifications had no
         effect on the Corporation's consolidated financial condition or net
         income.


NOTE 2 - ALLOWANCE FOR LOAN LOSSES

         Changes in the allowance for loan losses for the periods ended June 30,
         2001, and June 30, 2000 were as follows:

<TABLE>
<CAPTION>
                                                         (AMOUNTS IN THOUSANDS)
                                                         2001             2000
                                                       -------          -------
<S>                                                    <C>              <C>
Balance, beginning of year ...................         $ 1,008          $   985
Provision charged to operations ..............              23               39
Loans charged-off ............................             (64)             (20)
Recoveries ...................................              14               27
                                                       -------          -------
Balance, June 30 .............................         $   981          $ 1,031
                                                       =======          =======
</TABLE>



                                       -8-
<PAGE>   11
         At June 30, 2001 the recorded investment in loans that are considered
         to be impaired as defined by SFAS No. 114 was $37,755. 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, 2001, there were no significant commitments to lend
         additional funds with respect to non-accrual and restructured loans.


NOTE 3 - SHORT-TERM BORROWINGS

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


NOTE 4 - LONG-TERM BORROWINGS

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


NOTE 5 - STOCKHOLDERS' EQUITY

         Changes in stockholders' equity for the period ended June 30, 2001 were
         as follows:


<TABLE>
<CAPTION>
                                                                (AMOUNTS IN THOUSANDS, EXCEPT COMMON SHARE DATA)
                                                                                                   ACCUMULATED
                                                                                                      OTHER
                                                                        COMPREHENSIVE             COMPREHENSIVE
                                          COMMON    COMMON                 INCOME       RETAINED      INCOME      TREASURY
                                          SHARES     STOCK    SURPLUS      (LOSS)       EARNINGS      (LOSS)       STOCK     TOTAL
                                          ------     -----    -------      ------       --------      ------       -----     -----
<S>                <C>                  <C>         <C>       <C>       <C>             <C>       <C>             <C>       <C>
Balance at January 1, 2001.........     1,346,328   $ 1,683   $ 5,146     $     0       $18,310       $ (89)       $   0    $25,050
Comprehensive Income:
 Net income........................             0         0         0         964           964           0            0        964
 Change in unrealized gain (loss)
  on investment securities
  available-for-sale net of
  reclassification adjustment
  and tax effects..................             0         0         0         312             0         312            0        312
                                                                          -------
         TOTAL COMPREHENSIVE INCOME                                       $ 1,276
                                                                          =======
Issuance of 4,482 shares of common
  stock under dividend reinvestment
  and stock purchase plans.........         4,482         5        76                         0           0            0         81
Purchase of 11,653 shares of
  treasury stock...................             0         0         0                         0           0         (219)      (219)
Retirement of 11,653 shares of
  treasury stock...................       (11,653)      (14)     (205)                        0           0          219          0
Cash dividends $.29 per share......             0         0         0                      (388)          0            0       (388)
                                        ---------   -------   -------                   -------       -----        -----    -------
Balance at June 30, 2001...........     1,339,157   $ 1,674   $ 5,017                   $18,886       $ 223        $   0    $25,800
                                        =========   =======   =======                   =======       =====        =====    =======
</TABLE>


                                       -9-
<PAGE>   12
NOTE 6 - FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK AND CONCENTRATIONS OF
         CREDIT RISK

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

         The Corporation may require collateral or other security to support
         financial instruments with off-balance sheet credit risk. The contract
         or notional amounts at June 30, 2001 and December 31, 2000 were as
         follows:

<TABLE>
<CAPTION>
                                                                  (AMOUNTS IN THOUSANDS)
                                                                    JUNE      DECEMBER
                                                                  30, 2001    31, 2000
                                                                  --------    --------
<S>                                                               <C>         <C>
FINANCIAL INSTRUMENTS WHOSE CONTRACT AMOUNTS REPRESENT CREDIT
 RISK:
  Commitments to extend credit ..............................     $11,973     $ 9,685
  Financial standby letters of credit .......................       2,280       1,990
  Performance standby letters of credit .....................          14          18
  Dealer floor plans ........................................       1,849       1,098
</TABLE>

         Commitments to extend credit are agreements to lend to a customer as
         long as there is no violation of any condition established in the
         contract. Commitments generally have fixed expiration dates or other
         termination clauses and may require payment of a fee. Because many of
         the commitments are expected to expire without being drawn upon, the
         total commitment amounts do not necessarily represent future cash
         requirements. The Corporation evaluates each customer's
         creditworthiness on a case-by-case basis. The amount of collateral
         obtained, if deemed necessary by the Corporation upon extension of
         credit, is based on management's credit evaluation of the
         counter-party. Collateral held varies but may include accounts
         receivable, inventory, property, plant, equipment and income-producing
         commercial properties.

         Standby letters of credit and commercial letters of credit are
         conditional commitments issued by the Corporation to guarantee the
         performance of a customer to a third party. The credit risk involved in
         issuing letters of credit is essentially the same as that involved in
         extending loan facilities to customers. The Corporation holds
         collateral supporting those commitments for which collateral is deemed
         necessary.

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



                                      -10-
<PAGE>   13
         The Corporation granted commercial, consumer and residential loans to
         customers within Pennsylvania. Of the total loan portfolio at June 30,
         2001, 79.0% was for real estate loans, principally residential. It was
         the opinion of management that the high concentration did not pose an
         adverse credit risk. Further, it was management's opinion that the
         remainder of the loan portfolio was balanced and diversified to the
         extent necessary to avoid any significant concentration of credit.



NOTE 7 - MANAGEMENT'S ASSERTIONS AND COMMENTS REQUIRED TO BE PROVIDED WITH FORM
         10Q FILING

         In management's opinion, the consolidated interim financial statements
         reflect 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, 2001,
         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, 2000, filed with the Securities and Exchange Commission.


                                      -11-
<PAGE>   14
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS



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


We have reviewed the accompanying consolidated balance sheet of CCFNB
Bancorp, Inc. and Subsidiary as of June 30, 2001, and the related
consolidated statements of income and cash flows for the three and
six-month periods ended June 30, 2001 and 2000. These consolidated
financial statements are the responsibility of the management of CCFNB
Bancorp, Inc. and Subsidiary.

We conducted our reviews in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical
procedures to financial data and making inquiries of persons responsible
for financial and accounting matters. It is substantially less in scope
than an audit conducted in accordance with auditing standards generally
accepted in the United States of America, the objective of which is the
expression of an opinion regarding the financial statements taken as a
whole. Accordingly, we do not express such an opinion.

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

We have previously audited, in accordance with auditing standards
generally accepted in the United States of America, the consolidated
balance sheet of CCFNB Bancorp, Inc. and Subsidiary as of December 31,
2000, and the related consolidated statements of income, stockholders'
equity, and cash flows for the year then ended (not presented herein); and
in our report dated January 19, 2001, 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, 2000, 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 20, 2001



                                      -12-
<PAGE>   15
                       CCFNB BANCORP, INC. AND SUBSIDIARY
              MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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

<TABLE>
<CAPTION>
                                        AT AND FOR THE SIX MONTHS
                                        -------------------------
                                              ENDED JUNE 30,                   AT AND FOR THE YEARS ENDED DECEMBER 31,
                                              --------------                   ---------------------------------------
                                            2001         2000           2000         1999         1998         1997         1996
                                         ----------   ----------     ----------   ----------   ----------   ----------   ----------
<S>                                     <C>           <C>            <C>          <C>          <C>          <C>          <C>
Income and Expense:
  Interest income ....................   $    6,904   $    6,641     $   13,552   $   12,669   $   12,444   $   12,498   $   11,844
  Interest expense ...................        3,645        3,299          6,859        6,099        6,072        5,976        5,588
                                         ----------   ----------     ----------   ----------   ----------   ----------   ----------
  Net interest income ................        3,259        3,342          6,693        6,570        6,372        6,522        6,256
  Loan loss provision ................           23           39             54           78           78           60           80
                                         ----------   ----------     ----------   ----------   ----------   ----------   ----------
  Net interest income after loan loss
    provision ........................        3,236        3,303          6,639        6,492        6,294        6,462        6,176
  Non-interest income ................          547          500          1,053        1,050          981          804          762
  Non-interest expense ...............        2,536        2,536          4,967        4,818        4,739        4,492        4,450
                                         ----------   ----------     ----------   ----------   ----------   ----------   ----------
  Income before income taxes .........        1,247        1,267          2,725        2,724        2,536        2,774        2,488
  Income taxes .......................          283          306            671          685          634          749          664
                                         ----------   ----------     ----------   ----------   ----------   ----------   ----------
  Net income .........................   $      964   $      961     $    2,054   $    2,039   $    1,902   $    2,025   $    1,824
                                         ==========   ==========     ==========   ==========   ==========   ==========   ==========
Per Share: (1)
  Net income .........................   $      .72   $      .71     $     1.51   $     1.48   $     1.38   $     1.47   $     1.33
  Cash dividends paid ................          .29          .28            .56          .51          .46          .46          .45
  Average shares outstanding .........    1,342,944    1,362,569      1,355,624    1,375,572    1,378,339    1,381,800    1,375,875

Average Balance Sheet:
  Loans ..............................   $  137,423   $  133,183     $  134,325   $  123,185   $  116,490   $  116,771   $  112,341
  Investments ........................       47,589       46,654         45,877       48,726       44,906       39,335       38,299
  Other earning assets ...............       10,348        1,389          1,345        2,739        4,952        5,053        3,739
  Total assets .......................      206,097      191,586        196,727      186,597      177,643      171,159      164,512
  Deposits ...........................      147,738      139,080        139,774      138,963      131,366      117,086      117,414
  Other interest-bearing liabilities .       31,299       28,464         31,203       22,874       22,660       20,198       14,860
  Stockholders' equity ...............       25,710       22,837         23,910       22,874       22,264       20,690       19,512

Balance Sheet Data:
  Loans ................................ $  137,452   $  133,603     $  137,360   $  134,423   $  118,558   $  119,045   $  115,590
  Investments ..........................     49,692       46,788         46,185       48,003       47,179       42,671       36,458
  Other earning assets .................      9,644          229          5,940          217        6,105          582        6,856
  Total assets .........................    207,763      192,600        203,054      196,122      185,258      173,866      170,086
  Deposits .............................    149,704      140,236        143,169      138,606      137,679      127,719      131,400
  Other interest-bearing liabilities ...     36,959       27,419         33,477       33,224       22,709       22,802       16,951
  Stockholders' equity .................     25,800       23,286         25,050       23,047       23,480       22,105       20,657

Ratios: (2)
  Return on average assets .............        .94%        1.00%          1.04%        1.09%        1.07%        1.18%        1.11%
  Return on average equity .............       7.50%        8.42%          8.59%        8.91%        8.54%        9.79%        9.35%
  Dividend payout ratio ................      40.25%       39.65%         36.89%       33.59%       33.59%       31.65%       33.95%
  Average equity to average assets ratio      12.47%       11.92%         12.34%       11.75%       12.53%       12.71%       11.86%
</TABLE>


(1)   Per share data has been calculated on the weighted average number of
      shares outstanding.
(2)   The ratios for the six month period ending June 30, 2001 and 2000
      are annualized.


                                      -13-
<PAGE>   16
The following discussion and analysis of the financial condition and
results of operations of the Corporation should be read in conjunction
with the consolidated financial statements of the Corporation. The
consolidated financial condition and results of operations of the
Corporation are essentially those of the Bank. Therefore, the discussion
and analysis that follows is directed primarily at the performance of the
Bank.


Overview

Total assets increased 2.3% to $207.8 million at June 30, 2001 from $203.1
million at December 31, 2000. Net income increased through June 30, 2001
to $964,000 or 72 cents per share, compared to $961,000 or 71 cents per
share for the same six month period ended June 30, 2000. Loans remained at
$137.4 for June 30, 2001 and December 31, 2000.


Results of Operations - For the Six Months Ended June 30, 2001 and
June 30, 2000.

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

Net income for the six months ended June 30, 2001 was $964,000 or 72 cents
per share, as compared to $961,000 or 71 cents per share, for the
comparable period in 2000. Interest income increased $263,000 and interest
expense increased $346,000 contributing to a $83,000 decrease in net
interest income when comparing June 30, 2001 to June 30, 2000.
Non-interest income increased $47,000 and non-interest expense remained
constant at $2.5 million.

Return on average assets and return on average equity were .94% and 7.50%,
respectively, for the six months ended June 30, 2001, as compared to 1.00%
and 8.42% for the comparable period in 2000.


Net Interest Income

For the six months ended June 30, 2001 and 2000, net interest income was
$3.2 million and $3.3 million, respectively. The net interest margin was
3.59% for the six months ended June 30, 2001 and 3.93% for June 30, 2000.
Average interest earning assets at June 30, 2001 increased by 7.6% over
June 30, 2000 to $206.1 million from $191.6 million.

Average loans outstanding increased from $133.2 million to $137.4 million
or 3.2% for the six months ended June 30, 2001, as compared to the six
months ended June 30, 2000.

The outstanding balance of loans at June 30, 2001 was $137.5 million
compared to $137.4 million at December 31, 2000.


                                      -14-
<PAGE>   17
Shown below is a summary of past due and non-accrual loans:

<TABLE>
<CAPTION>
                                                        IN THOUSANDS OF DOLLARS
                                                        -----------------------
                                                            JUNE    DECEMBER
                                                          30, 2001   31, 2000
                                                          --------   --------
<S>                                                     <C>         <C>
Past due and non-accrual:
  Days 30 - 89.........................................   $  2,002   $  1,340
  Days 90 plus.........................................        646        344
  Non-accrual..........................................        457        312
                                                          --------   --------
                                                          $  3,105   $  1,996
                                                          ========   ========
</TABLE>

Past due and non-accrual loans increased to $3.1 million at June 30, 2001 from
$2.0 million at December 31, 2000. The major portion of the increase was
attributable to increases in commercial and mortgage loans, particularly
commercial mortgages. The loan delinquency expressed as a ratio to total loans
was 2.3% and 1.4% at June 30, 2001 and December 31, 2000, respectively.

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

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

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

<TABLE>
<CAPTION>
                                                                             IN THOUSANDS
                                                                              OF DOLLARS
                                                                              ----------
                                                                                 JUNE
           MATURITY AND REPRICING DATA FOR LOANS AND LEASES                    30, 2001
                                                                              ----------
<S>                                                                          <C>
Closed-end loans secured by first liens on 1-4 family residential
 properties with a remaining maturity or repricing frequency of:
    (1) Three months or less .............................................    $   3,784
    (2) Over three months through 12 months ..............................       14,066
    (3) Over one year through three years ................................       31,523
    (4) Over three years through five years ..............................        2,117
    (5) Over five years through 15 years .................................        9,304
    (6) Over 15 years ....................................................        1,868
All loans and leases other than closed-end loans secured by first liens on
 1-4 family residential properties with a remaining maturity or repricing
 frequency of:
    (1) Three months or less .............................................       16,846
    (2) Over three months through 12 months ..............................       12,832
    (3) Over one year through three years ................................        7,198
    (4) Over three years through five years ..............................       16,035
    (5) Over five years through 15 years .................................       15,992
    (6) Over 15 years ....................................................        5,815
                                                                              ---------
       Sub-total .........................................................    $ 137,380
Add:  non-accrual loans not included above ...............................          457
Less:  unearned income ...................................................         (385)
                                                                              ---------
       Total Loans and Leases ............................................    $ 137,452
                                                                              =========
</TABLE>

                                      -15-
<PAGE>   18
Interest income from investment securities reflects a 7.1% decrease comparing
$1.3 million for the six months ended June 30, 2001 and the $1.4 million for the
six months ended June 30, 2000. The average balance of investment securities for
the six months ended June 30, 2001 increased 1.9% to $47.6 million, compared to
the $46.7 million for the same period of 2000.

Total interest expense increased $346,000 or 10.5% for the first six months of
2001 as compared to the first six months of 2000. The cost of interest bearing
liabilities increased on an average yield basis from 4.27% through June 2000
compared to 4.41% through June 2001. On the contrary, the average yield on
interest earning assets decreased from 7.33% to 7.07% through June 2000 and
2001, respectively.

Average short-term borrowings decreased from $21.6 million at June 30, 2000 to
$18.9 million at June 30, 2001. This 12.5% decrease reflects an increase in
depositor repurchase agreements from an average $15.2 million at June 30, 2000
to $18.7 million at June 30, 2001. Conversely, short-term borrowing from Federal
Home Loan Bank averaged $5.9 million at June 30, 2000 and $0 million at June 30,
2001.

Long-term borrowings from Federal Home Loan Bank increased from an average $6.9
million at June 30, 2000 to $12.4 million at June 30, 2001. $2,000,000 of
long-term debt was repaid during the second quarter of 2001.

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


Average Balance Sheet and Rate Analysis
(Dollars in Thousands)

<TABLE>
<CAPTION>
                                                                  JUNE 2001                        JUNE 2000
                                                                  ---------                        ---------
                                                                  INTEREST   AVERAGE               INTEREST   AVERAGE
                                                      AVERAGE      INCOME/    YIELD/   AVERAGE      INCOME/    YIELD/
                                                     BALANCE(1)   EXPENSE(2)   RATE   BALANCE(1)   EXPENSE(2)   RATE
                                                     ----------   ----------   ----   ----------   ----------   ----
<S>                                                  <C>          <C>        <C>      <C>          <C>        <C>
 ASSETS:
 Interest-bearing deposits with other financial
   institutions....................................   $  7,472    $    198    5.30%    $    263    $      8    6.08%
 Investment securities.............................     47,589       1,290    6.28%      46,654       1,358    6.62%
 Federal funds sold................................      1,750          40    4.57%           0           0     .00%
 Loans.............................................    137,423       5,339    7.83%     133,183       5,237    7.91%
 Other assets/equity securities....................      1,126          37    6.57%       1,126          38    6.75%
                                                      --------    --------             --------    --------
 Total interest earning assets.....................   $195,360    $  6,904    7.32%    $181,226    $  6,641    7.57%
                                                                  ========                         ========
 Reserve for loan losses...........................       (995)                          (1,011)
 Cash and due from banks...........................      4,875                            2,012
 Other assets......................................      6,857                            9,359
                                                      --------                            -----
 Total assets......................................   $206,097                         $191,586
                                                      ========                         ========
</TABLE>


                                      -16-
<PAGE>   19
<TABLE>
<CAPTION>
                                                                JUNE 2001                        JUNE 2000
                                                                ---------                        ---------
                                                                INTEREST   AVERAGE               INTEREST   AVERAGE
                                                     AVERAGE     INCOME/    YIELD/    AVERAGE     INCOME/    YIELD/
                                                    BALANCE(1)  EXPENSE(2)   RATE    BALANCE(1)  EXPENSE(2)   RATE
                                                    ----------  ----------   ----    ----------  ----------   ----
<S>                                                 <C>         <C>        <C>       <C>         <C>        <C>
LIABILITIES AND CAPITAL:
Interest bearing deposits.........................   $134,105    $  2,817    4.20%    $125,885    $  2,517    4.00%
Short-term borrowings.............................     18,935         440    4.65%      21,551         577    5.35%
Long-term borrowings..............................     12,364         388    6.28%       6,913         205    5.93%
                                                     --------    --------             --------    --------
Total interest-bearing liabilities................   $165,404    $  3,645    4.41%    $154,349    $  3,299    4.27%
                                                     --------    --------             --------    --------
Demand deposits...................................   $ 13,633                         $ 13,195
Other liabilities.................................      1,350                            1,205
Stockholders' equity..............................     25,710                           22,837
                                                     --------                           ------
Total liabilities and capital.....................   $206,097                         $191,586
                                                     ========                         ========
NET INTEREST INCOME/NET INTEREST MARGIN (4)......                $  3,259    3.34%                $  3,342    3.69%
                                                                 ========    ====                 ========    ====
TAX EQUIVALENT NET INTEREST INCOME/
 NET INTEREST MARGIN (5)..........................               $  3,505    3.59%                $  3,561    3.93%
                                                                 ========    ====                 ========    ====
</TABLE>



(1) Average volume information was computed using daily averages.
(2) Interest on loans includes fee income.
(3) Yield on tax-exempt obligations has been computed on a tax-equivalent basis.
(4) Net interest margin is computed by dividing net interest income by total
      interest earning assets.
(5) Interest and yield are presented on a tax-equivalent basis using 34% for
      2001 and 2000.



Provision for Loan Losses

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

For the six month periods ending June 30, 2001 and 2000, the provision for loan
losses was $23,000 and $39,000 respectively.


                                      -17-
<PAGE>   20
Non-Interest Income

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

<TABLE>
<CAPTION>
                                                                SIX MONTHS ENDED
                                                                    JUNE 30,
                                                                    --------
                                                                2001        2000
                                                              --------    --------
                                                             (Dollars in Thousands)

<S>                                                           <C>         <C>
Service charges and fees..................................    $    302    $    295
Trust department income...................................         112          82
Investment securities gain - net..........................          37           0
Third party brokerage income..............................          32          52
Other.....................................................          64          71
                                                              --------    --------
     Total................................................    $    547    $    500
                                                              ========    ========
</TABLE>

For the six months ended June 30, 2001, total non-interest income increased
$47,000 to $547,000 compared to $500,000 for the six months period ended June
30, 2000. Service charges and fees increased $7,000 from $295,000 at June 30,
2000 to $302,000 at June 30, 2001. Trust Department income increased from
$82,000 at June 30, 2000 to $112,000 at June 30, 2001. Third party brokerage
income reflected a $20,000 decrease comparing June 30, 2000 to June 30, 2001.
Income from this source is dependent upon the investment climate.

Other non-interest income decreased from $71,000 at June 30, 2000 to $64,000 at
June 30, 2001. This decrease was comprised mostly of penalties received on early
withdrawals of Certificates of Deposit due to declining interest rates during
2001 resulting in fewer certificates redeemed early.


Non-Interest Expenses

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

<TABLE>
<CAPTION>
                                                                SIX MONTHS ENDED
                                                                    JUNE 30,
                                                                    --------
                                                                2001        2000
                                                              --------    ---------
                                                             (Dollars in Thousands)
<S>                                                           <C>         <C>
Salaries and wages.......................................     $  1,007    $  1,012
Employee benefits........................................          340         330
Net occupancy expense....................................          194         170
Furniture and equipment expense..........................          267         312
State shares tax.........................................          119         109
Other expense............................................          609         603
                                                              --------    ---------
     Total...............................................     $  2,536    $  2,536
                                                              ========    ========
</TABLE>


                                      -18-
<PAGE>   21
Non-interest expenses remained constant at $2.5 million at June 30, 2000 and
2001.

Salaries remained at $1 million at June 30, 2001 and 2000. A 3% increase was
reflected in employee benefits from $330,000 at June 30, 2000 to $340,000 at
June 30, 2001. Increased cost of employee benefits, specifically health
coverage, accounts for the increase in employee benefits.

Occupancy expense and furniture and equipment expense reflects a $21,000
decrease for the first six months of 2001 compared to the first six months of
2000. Less depreciation on furniture and fixtures is the reason for the decline.

Shares tax increased 9.2% from $109,000 at June 30, 2000 to $119,000 at June 30,
2001.

Other expenses increased 1% from $603,000 at June 30, 2000 to $609,000 at June
30, 2001.


Capital

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

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

<TABLE>
<CAPTION>
                                               JUNE 30, 2001          DECEMBER 31, 2000
                                               -------------          -----------------
                                                         MINIMUM                 MINIMUM
                                           CALCULATED    STANDARD   CALCULATED   STANDARD
                                             RATIOS       RATIOS      RATIOS      RATIOS
                                             ------       ------      ------      ------
<S>                                        <C>           <C>        <C>          <C>
Risk Based Ratios:
Tier I Capital to risk-weighted assets .      19.60%       4.00%      19.59%       4.00%
Total Qualifying Capital to
  risk-weighted assets .................      20.36%       8.00%      20.38%       8.00%
</TABLE>


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

<TABLE>
<CAPTION>
                                                                  JUNE      DECEMBER
                                                                30, 2001    31, 2000
                                                                --------    --------
<S>                                                             <C>         <C>
Tier I Capital to average assets...........................      12.37%      12.45%
</TABLE>


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


                                      -19-
<PAGE>   22
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.





                                      -20-
<PAGE>   23
                                   SIGNATURES




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




                                             CCFNB BANCORP, INC.
                                                (Registrant)




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

                                             Date:



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

                                             Date:








                                             -21-