<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, 2003

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

For the transition period from ______________ to _____________

Commission file number 0-19028

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

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

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

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

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

                  Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable date. 1,278,804
shares of $1.25 (par) common stock were outstanding as of July 24, 2003.

<PAGE>

                       CCFNB BANCORP, INC. AND SUBSIDIARY

                                  JUNE 30, 2003

                                   INDEX 10-Q

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

        - Consolidated Balance Sheets                                          1

        - Consolidated Statements of Income                                    2

        - Consolidated Statements of Cash Flows                                3

        - Notes to Consolidated Financial Statements                      4 - 14

        - Report of Independent Certified Public Accountants                  15

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

        - Controls and Procedures                                             23

PART II - OTHER INFORMATION                                                   24

SIGNATURES                                                               25 - 28
</TABLE>

<PAGE>

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

<TABLE>
<CAPTION>
                                                                          JUNE
                                                                        30, 2003   DECEMBER
                                                                        UNAUDITED  31, 2002
                                                                        ---------  --------
<S>                                                                     <C>        <C>
ASSETS
Cash and due from banks .............................................   $  6,260   $  5,953
Interest-bearing deposits with other banks ..........................      1,132      8,010
Federal funds sold ..................................................      7,477      2,057
Investment securities:
  Securities Available-for-Sale .....................................     57,415     53,527
Loans, net of unearned income .......................................    148,280    151,338
Allowance for loan losses ...........................................      1,394      1,298
                                                                        --------   --------
  Net loans .........................................................   $146,886   $150,040
Premises and equipment ..............................................      4,377      4,415
Other real estate owned .............................................         43         68
Cash surrender value life insurance .................................      5,751      3,627
Accrued interest receivable .........................................        786        894
Other assets ........................................................        677        441
                                                                        --------   --------
     TOTAL ASSETS ...................................................   $230,804   $229,032
                                                                        ========   ========

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
Deposits:
  Non-interest bearing ..............................................   $ 16,985   $ 15,238
  Interest bearing ..................................................    158,526    156,889
                                                                        --------   --------
     Total Deposits .................................................   $175,511   $172,127
Short-term borrowings ...............................................     15,676     17,274
Long-term borrowings ................................................     11,341     11,347
Accrued interest and other expenses .................................      1,169      1,332
Other liabilities ...................................................          3        112
                                                                        --------   --------
     TOTAL LIABILITIES ..............................................   $203,700   $202,192
                                                                        --------   --------

STOCKHOLDERS' EQUITY
Common stock, par value $1.25 per share; authorized 5,000,000 shares;
  issued and outstanding 1,280,804 shares
  in 2003 and 1,292,724 shares in 2002 ..............................   $  1,601   $  1,616
Surplus .............................................................      3,732      4,009
Retained earnings ...................................................     21,294     20,679
Accumulated other comprehensive income (loss) .......................        477        536
                                                                        --------   --------
     TOTAL STOCKHOLDERS' EQUITY .....................................   $ 27,104   $ 26,840
                                                                        --------   --------
     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY .....................   $230,804   $229,032
                                                                        ========   ========
</TABLE>

See accompanying notes to Consolidated Financial Statements.

                                 -1-

<PAGE>

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

<TABLE>
<CAPTION>
                                                          FOR THE SIX             FOR THE THREE
                                                         MONTHS ENDING            MONTHS ENDING
                                                            JUNE 30,                 JUNE 30,
                                                            --------                 --------
                                                       2003         2002        2003          2002
                                                       ----         ----        ----          ----
<S>                                                <C>          <C>          <C>          <C>
INTEREST INCOME
Interest and fees on loans:
  Taxable ......................................   $    4,624   $    5,007   $    2,291   $    2,535
  Tax-exempt ...................................           93           65           48           33
Interest and dividends on investment securities:
  Taxable interest .............................          609          901          269          445
  Tax-exempt interest ..........................          340          409          156          203
  Dividends ....................................           28           30           12           14
Interest on federal funds sold .................           29           19           17           16
Interest on deposits in other banks ............           33           33           19           16
                                                   ----------   ----------   ----------   ----------
     TOTAL INTEREST INCOME .....................   $    5,756   $    6,464   $    2,812   $    3,262
                                                   ----------   ----------   ----------   ----------
INTEREST EXPENSE
Interest on deposits ...........................   $    1,908   $    2,352   $      891   $    1,183
Interest on short-term borrowings ..............          144          170           64           87
Interest on long-term borrowings ...............          337          337          169          169
                                                   ----------   ----------   ----------   ----------
     TOTAL INTEREST EXPENSE ....................   $    2,389   $    2,859   $    1,124   $    1,439
                                                   ----------   ----------   ----------   ----------

Net interest income ............................   $    3,367   $    3,605   $    1,688   $    1,823
Provision for loan losses ......................          100           59           50           35
                                                   ----------   ----------   ----------   ----------
     NET INTEREST INCOME AFTER PROVISION FOR
     LOAN LOSSES ...............................   $    3,267   $    3,546   $    1,638   $    1,788
                                                   ----------   ----------   ----------   ----------
NON-INTEREST INCOME
Service charges and fees .......................   $      341   $      326   $      158   $      164
Trust department income ........................           63          103           27           55
Other income ...................................          313           85          206           52
                                                   ----------   ----------   ----------   ----------
     TOTAL NON-INTEREST INCOME .................   $      717   $      514   $      391   $      271
                                                   ----------   ----------   ----------   ----------
NON-INTEREST EXPENSES
Salaries and wages .............................   $    1,085   $    1,075   $      560   $      541
Pensions and other employee benefits ...........          382          373          196          189
Occupancy expense, net .........................          192          180           89           91
Furniture and equipment expense ................          233          301          115          147
Other operating expenses .......................          792          758          408          409
                                                   ----------   ----------   ----------   ----------
     TOTAL NON-INTEREST EXPENSES ...............   $    2,684   $    2,687   $    1,368   $    1,377
                                                   ----------   ----------   ----------   ----------

Income before income taxes .....................   $    1,300   $    1,373   $      661   $      682
Income tax expense .............................          274          318          142          159
                                                   ----------   ----------   ----------   ----------
     NET INCOME ................................   $    1,026   $    1,055   $      519   $      523
                                                   ==========   ==========   ==========   ==========
PER SHARE DATA
Net income .....................................   $      .80   $      .80   $      .40   $      .40
Cash dividends .................................          .32          .31          .16          .16
Weighted average shares outstanding ............    1,287,214    1,316,630    1,287,214    1,316,630
</TABLE>

See accompanying notes to Consolidated Financial Statements.

                                 -2-

<PAGE>

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

<TABLE>
<CAPTION>
                                                                     FOR THE SIX
                                                                    MONTHS ENDING
                                                                       JUNE 30,
                                                                   2003        2002
                                                                 --------    --------
<S>                                                              <C>         <C>
OPERATING ACTIVITIES
Net income ...................................................   $  1,026    $  1,055
Adjustments to reconcile net income to net cash provided by
 operating activities:
   Provision for loan losses .................................        100          59
   Depreciation and amortization .............................        194         244
   Premium amortization on investment securities .............        267         100
   Discount accretion on investment securities ...............        (18)        (12)
   Deferred income taxes (benefit) ...........................        (41)        (31)
   (Gain) on sale of mortgage loans ..........................       (106)          0
   Proceeds from sale of mortgage loans ......................      3,867           0
   Originations of mortgage loans for resale .................     (3,761)          0
   (Gain) on sale of other real estate owned .................        (12)          0
   (Gain) loss from investment in insurance agency ...........          1           6
   (Increase) decrease in accrued interest receivable and
     other assets ............................................       (112)       (170)
   Net increase in cash surrender value of bank owned life
     insurance ...............................................       (124)        (49)
   Increase (decrease) in accrued interest, other expenses and
     other liabilities .......................................       (216)       (193)
                                                                 --------    --------
     NET CASH PROVIDED BY OPERATING ACTIVITIES ...............   $  1,065    $  1,009
                                                                 --------    --------

INVESTING ACTIVITIES
Purchase of investment securities Available-for-Sale .........   $(29,129)   $(11,906)
Proceeds from sales, maturities and redemptions of investment
  securities Available-for-Sale ..............................     24,902      17,263
Net (increase) decrease in loans .............................      3,054      (5,540)
Purchases of premises and equipment ..........................       (157)       (198)
Proceeds from sale of other real estate owned ................         37           0
Purchase of bank owned life insurance policies ...............     (2,000)          0
                                                                 --------    --------
     NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES .....   $ (3,293)   $   (381)
                                                                 --------    --------

FINANCING ACTIVITIES
Net increase (decrease) in deposits ..........................   $  3,384    $  8,744
Net increase (decrease) in short-term borrowings .............     (1,598)     (2,935)
Net increase (decrease) in long-term borrowings ..............         (6)         (5)
Acquisition of treasury stock ................................       (388)       (461)
Proceeds from issuance of common stock .......................         96          97
Cash dividends paid ..........................................       (411)       (407)
                                                                 --------    --------
     NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES .....   $  1,077    $  5,033
                                                                 --------    --------
     INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS ........   $ (1,151)   $  5,661

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD .............     16,020       8,518
                                                                 --------    --------
      CASH AND CASH EQUIVALENTS AT END OF PERIOD .............   $ 14,869    $ 14,179
                                                                 ========    ========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the year for:
  Interest ...................................................   $  2,490    $  2,892
  Income taxes ...............................................   $    282    $    402
</TABLE>

See accompanying notes to Consolidated Financial Statements.

                                       -3-

<PAGE>

CCFNB BANCORP, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2003

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

         PRINCIPLES OF CONSOLIDATION

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

         NATURE OF OPERATIONS & LINES OF BUSINESS

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

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

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

         USE OF ESTIMATES

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

                                       -4-

<PAGE>

         INVESTMENT SECURITIES

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

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

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

         LOANS

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

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

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

                                       -5-

<PAGE>

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

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

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

         The allowance for loan losses is maintained at a level established by
         management to be adequate to absorb estimated potential loan losses.
         Management's periodic evaluation of the adequacy of the allowance for
         loan losses is based on the Corporation's past loan loss experience,
         known and inherent risks in the portfolio, adverse situations that may
         affect the borrower's ability to repay (including the timing of future
         payments), the estimated value of any underlying collateral,
         composition of the loan portfolio, current economic conditions, and
         other relevant factors. This evaluation is inherently subjective as it
         requires material estimates, including the amounts and timing of future
         cash flows expected to be received on impaired loans that may be
         susceptible to significant change.

         DERIVATIVES

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

                                       -6-

<PAGE>

         PREMISES AND EQUIPMENT

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

         MORTGAGE SERVICING RIGHTS

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

         OTHER REAL ESTATE OWNED

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

         BANK OWNED LIFE INSURANCE

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

         INVESTMENT IN INSURANCE AGENCY

         On January 2, 2001, the Corporation acquired a 50% interest in a local
         insurance agency, a corporation organized under the laws of the
         Commonwealth of Pennsylvania. The income or loss from this investment
         is accounted for under the equity method of accounting. The carrying
         value of this investment as of June 30, 2003 and December 31, 2002 was
         $164,749 and $165,431, respectively, and is carried in other assets in
         the accompanying consolidated balance sheets.

                                       -7-

<PAGE>

         INCOME TAXES

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

         PER SHARE DATA

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

         CASH FLOW INFORMATION

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

         TRUST ASSETS AND INCOME

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

         SEGMENT REPORTING

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

                                       -8-

<PAGE>

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

         RECENT ACCOUNTING PRONOUNCEMENTS

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

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

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

                                       -9-

<PAGE>

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

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

         ADVERTISING COSTS

         It is the Corporation's policy to expense advertising costs in the
         period in which they are incurred. Advertising expense for the periods
         ended June 30, 2003 and June 30, 2002, were approximately $34,746 and
         $31,226, respectively.

         RECLASSIFICATION

         Certain amounts in the consolidated financial statements of the prior
         years have been reclassified to conform with presentation used in the
         2002 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,
         2003 and June 30, 2002 were as follows:

<TABLE>
<CAPTION>
                                                      (AMOUNTS IN THOUSANDS)
                                                      ----------------------
                                                         2003        2002
                                                         ----        ----
<S>                                                   <C>         <C>
Balance, beginning of year.........................   $  1,298    $  1,028
Provision charged to operations....................        100          59
Loans charged-off..................................        (36)        (55)
Recoveries.........................................         32          42
                                                      --------    --------
Balance, June 30...................................   $  1,394    $  1,074
                                                      ========    ========
</TABLE>

         At June 30, 2003 the recorded investment in loans that are considered
         to be impaired as defined by SFAS No. 114 was $298,352. 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, 2003, there were no significant commitments to lend
         additional funds with respect to non-accrual and restructured loans.

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

         Non-accrual loans at June 30, 2003 and December 31, 2002 were
         $2,281,000 and $2,122,000, respectively.

         Loans past due 90 days or more and still accruing interest amounted to
         $161,000 at June 30, 2003.

NOTE 3 - SHORT-TERM BORROWINGS

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

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

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

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

NOTE 6 - STOCKHOLDERS' EQUITY

         Changes in stockholders' equity for the period ended June 30, 2003 were
         as follows:

<TABLE>
<CAPTION>
                                                          (AMOUNTS IN THOUSANDS, EXCEPT COMMON SHARE DATA)
                                                          ------------------------------------------------
                                                                                                  ACCUMULATED
                                                                                                     OTHER
                                                                        COMPREHENSIVE            COMPREHENSIVE
                                        COMMON      COMMON                 INCOME      RETAINED      INCOME     TREASURY
                                        SHARES      STOCK     SURPLUS      (LOSS)      EARNINGS      (LOSS)       STOCK     TOTAL
                                        ------      -----     -------      ------      --------      ------       -----     -----
<S>                                   <C>         <C>        <C>        <C>            <C>       <C>            <C>       <C>
Balance at January 1, 2003 ........   1,292,724   $  1,616   $  4,009     $      0     $20,679       $ 536      $     0   $ 26,840
Comprehensive Income:
 Net income .......................           0          0          0        1,026       1,026           0            0      1,026
 Change in unrealized gain (loss)
  on investment securities
  available-for-sale net of
  reclassification adjustment
  and tax effects .................           0          0          0          (59)          0         (59)           0        (59)
                                                                          --------
  TOTAL COMPREHENSIVE INCOME (LOSS)                                       $    967
                                                                          ========
Issuance of 4,080 shares of common
  stock under dividend reinvestment
  and stock purchase plans ........       4,080          5         91                        0           0            0         96
Purchase of 16,000 shares of
  treasury stock ..................           0          0          0                        0           0         (388)      (388)
Retirement of 16,000 shares of
  treasury stock ..................     (16,000)       (20)      (368)                       0           0          388          0
Cash dividends $.32 per share .....           0          0          0                     (411)          0            0       (411)
                                      ---------   --------   --------                  -------       -----      -------   --------
Balance at June 30, 2003 ..........   1,280,804   $  1,601   $  3,732                  $21,294       $ 477      $     0   $ 27,104
                                      =========   ========   ========                  =======       =====      =======   ========
</TABLE>

                                      -12-

<PAGE>

NOTE 7 - FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK AND CONCENTRATIONS OF
         CREDIT RISK

         The Corporation is a party to financial instruments with off-balance
         sheet risk in the normal course of business to meet the financing needs
         of its customers. These 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, 2003 and December 31, 2002 were as
         follows:

<TABLE>
<CAPTION>
                                                       (AMOUNTS IN THOUSANDS)
                                                     ------------------------
                                                         JUNE        DECEMBER
                                                       30, 2003      31, 2002
                                                     -----------  -----------
<S>                                                  <C>          <C>
FINANCIAL INSTRUMENTS WHOSE CONTRACT AMOUNTS
 REPRESENT CREDIT RISK:
  Commitments to extend credit.....................  $12,098,613  $11,768,038
  Financial standby letters of credit..............    1,840,578    1,842,578
  Performance standby letters of credit............       48,404       48,404
  Dealer floor plans...............................      962,237    1,393,763
</TABLE>

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

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

                                      -13-

<PAGE>

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

         The Corporation granted commercial, consumer and residential loans to
         customers within Pennsylvania. Of the total loan portfolio at June 30,
         2003, 81.2% was for real estate loans, principally residential. It was
         the opinion of management that the high concentration did not pose an
         adverse credit risk. Further, it was management's opinion that the
         remainder of the loan portfolio was balanced and diversified to the
         extent necessary to avoid any significant concentration of credit.

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

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

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

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

                                      -14-

<PAGE>

REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS

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

We have reviewed the accompanying consolidated balance sheet of CCFNB Bancorp,
Inc. and Subsidiary as of June 30, 2003, and the related consolidated statements
of income and cash flows for the three and six month periods ended June 30, 2003
and 2002. These consolidated interim financial statements are the responsibility
of the management of CCFNB Bancorp, Inc. and Subsidiary.

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

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

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

/s/ J.H. Williams & Co., LLP
----------------------------
J.H. Williams & Co., LLP
Kingston, Pennsylvania
July 18, 2003

                                      -15-

<PAGE>

                               CCFNB BANCORP, INC.
                                    FORM 10-Q
                         FOR THE QUARTER ENDED JUNE 2003

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

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

<TABLE>
<CAPTION>
                                             At and For the Six Months
                                                  Ended June 30,                  At and For the Years Ended December 31,
                                                  --------------                  ---------------------------------------
                                                   2003        2002        2002        2001        2000        1999        1998
                                                   ----        ----        ----        ----        ----        ----        ----
<S>                                          <C>           <C>          <C>         <C>         <C>         <C>         <C>
Income and Expense:
    Interest income ......................   $     5,756   $     6,464  $   12,780  $   13,720  $   13,552  $   12,669  $   12,444
    Interest expense .....................         2,389         2,859       5,741       6,924       6,859       6,099       6,072
                                             -----------   -----------  ----------  ----------  ----------  ----------  ----------
    Net interest income ..................         3,367         3,605       7,039       6,796       6,693       6,570       6,372
    Loan loss provision ..................           100            59         309         163          54          78          78
                                             -----------   -----------  ----------  ----------  ----------  ----------  ----------
    Net interest income after loan loss
      Provision ..........................         3,267         3,546       6,730       6,633       6,639       6,492       6,294
    Non-interest income ..................           717           514       1,210       1,149       1,053       1,050         981
    Non-interest expense .................         2,684         2,687       5,479       5,104       4,967       4,818       4,739
                                             -----------   -----------  ----------  ----------  ----------  ----------  ----------
    Income before income taxes ...........         1,300         1,373       2,461       2,678       2,725       2,724       2,536
    Income taxes .........................           274           318         539         621         671         685         634
                                             -----------   -----------  ----------  ----------  ----------  ----------  ----------
    Net income ...........................   $     1,026   $     1,055  $    1,922  $    2,057  $    2,054  $    2,039  $    1,902
                                             ===========   ===========  ==========  ==========  ==========  ==========  ==========
Per Share: (1) ...........................
    Net income ...........................   $       .80   $       .80  $     1.47  $     1.54  $     1.51  $     1.48  $     1.38
    Cash dividends paid ..................           .32           .31         .63         .59         .56         .51         .46
    Average shares outstanding ...........     1,287,214     1,316,630   1,309,084   1,338,007   1,355,624   1,375,572   1,378,339
Average Balance Sheet:
    Loans ................................   $   149,809   $   145,268  $  147,545  $  139,219  $  134,325  $  123,185  $  116,490
    Investments ..........................        55,471        54,642      54,197      50,593      47,003      49,827      45,878
    Other interest earning assets ........         9,338         6,452       5,309       6,569         219       1,638       3,890
    Total assets .........................       229,919       219,127     223,476     208,630     196,727     186,597     177,643
    Deposits .............................       173,820       161,443     150,883     149,601     139,774     138,963     131,366
    Other interest-bearing liabilities ...        27,819        30,013      29,356      31,629      31,203      23,458      22,660
    Stockholders' equity .................        26,919        26,349      26,615      25,890      23,910      22,874      22,264
Balance Sheet Data:
    Loans ................................   $   148,280   $   148,517  $  151,338  $  142,990  $  137,360  $  134,423  $  118,558
    Investments ..........................        57,415        52,233      53,528      57,121      47,311      49,104      48,151
    Other interest earning assets ........         8,609         8,010      10,068        3,32       4,814       1,343       5,133
    Total assets .........................       230,804       220,613     229,032     214,238     203,054     196,122     185,258
    Deposits .............................       175,511       164,410     172,127     155,666     143,169     138,606     137,679
    Other interest-bearing liabilities ...        27,017        28,198      28,621      31,384      33,477      33,224      22,709
    Stockholders' equity .................        27,104        26,691      26,840      26,042      25,050      23,047      23,480
Ratios: (2)
    Return on average assets .............           .96%          .96%        .86%        .99%       1.04%     1.0911%       1.07%
    Return on average equity .............          7.62%         8.00%       7.22%       7.90%       8.59%       8.91%       8.54%
    Dividend payout ratio ................         40.06%        38.58%      42.86%      38.31%      37.09%      34.09%      33.59%
    Average equity to average assets
      ratio ..............................         11.71%        12.02%      11.77%      12.16%      12.34%      11.75%      12.53%
</TABLE>

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

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

CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS

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

EARNINGS SUMMARY

Net income for the six months ended June 30, 2003 was $1,026 thousand or $.80
per basic and diluted share. These results compare with net income of $1,055
thousand, or $.80 per basic and diluted share for the same period in 2002.
Annualized return on average equity decreased to 7.62 percent from 8.00 percent,
while the annualized return on average assets remained at .96 percent for the
six months ended June 30, 2003 and 2002. Net interest income continues to be the
largest source of our operating income. Net interest income on a tax equivalent
basis decreased to $3.6 million at June 30, 2003, compared with $3.9 million for
the six months ended June 30, 2002. The decrease in net interest income is
primarily due to the decreased interest rates on investment securities, loans
and deposits. Overall, interest earning assets yielded 5.36 percent for the
quarter ended June 30, 2003 compared to 6.26 percent yield for the quarter ended
June 30, 2002. The tax equivalized interest margin decreased to 3.35 percent for
the six months ended June 30, 2003

                                       16
<PAGE>

compared to 3.73 percent for the six months ended June 30, 2002. Part of the
decrease is attributable to the investment in Bank Owned Life Insurance which
commenced in December 2002. The effect of this BOLI created $97,000 tax free non
interest income and such income is not included it the Net Interest Margin since
it is reflected in other income. Had it been included in the Net Interest Margin
the Net Interest Margin would be 13 basis points higher or 3.48%.

Average interest earning assets increased $8.2 million or 4.0 percent for the
six months ended June 30, 2003 over the same period in 2002. Average loans
increased $4.5 million or 3.1 percent, average investments increased .9 million
or 1.6 percent and average federal funds sold and interest-bearing deposits with
other financial institutions increased 2.8 million or 43.1 percent for this six
month period, from $6.5 million at June 30, 2002 to $9.3 million at June 30,
2003.

Average interest bearing liabilities for the six months ended June 30, 2003
increased $8.8 million or 5.0 percent from the same period in 2002. Average
short-term borrowings were $18.7 million at June 30, 2002 and $16.5 million at
June 30, 2003, a decrease of 11.8 percent. Long-term debt, which includes
primarily FHLB advances, was 11.4 million and 11.3 million at June 30, 2002 and
2003. Average demand deposits increased $1.3 million from 2002 balances.

The average interest rate for loans decreased 62 basis points to 6.36 percent at
June 30, 2003 compared to 6.98 percent June 30, 2002. Interest-bearing deposits
with other Financial Institutions interest rates decreased 14 basis points to
1.44 percent from 1.58 percent at June 30, 2003 and June 30, 2002 respectively.
Average rates on interest bearing deposits decreased by 79 basis points from
3.21 percent to 2.42 percent in one year. Average interest rates also decreased
on total interest bearing liabilities by 66 basis points to 2.58 percent from
3.24 percent. The reason for these decreases on interest bearing liabilities was
primarily attributed to the decreasing rates on all deposit liabilities and the
tied-to-prime interest rates paid on repurchase agreements. The net interest
margin decreased to 3.35 percent for the six months ended June 30, 2003 from
3.73 percent for the six months ended June 30, 2002. The decrease in the overall
net interest margin is a result of interest rate changes with adjustable loan
rates repricing downward throughout 2002 and 2003 in this continuing downward
interest rate environment. Income received on one-day investments fell. This
"squeeze" caused by interest rates is keeping the net interest spread in a
declining mode; however, the change in net interest margin is gradual and
slight. Our "asset" sensitive position places us in a position to have an
increase in our net interest margin when rates rise. The cost of long-term debt
averaged 5.94% for the past several years which contributed to the declining net
interest margin. This long-term debt will remain a deterrent to us in a
declining interest rate environment. This is 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 5.94% average rate unattractive,
this in all probability will not occur. We will continue to use the following
strategies to mitigate this decline in our net interest margin: pricing of
deposits will continue to be monitored and lowered, if necessary, to meet
current market conditions; large deposits over $100,000 will continue to be
priced conservatively; and in this low interest rate environment the majority of
new investments will be kept short term in anticipation of rising rates.

NET INTEREST INCOME

Net interest income decreased to $3.3 million for the six months ended June 30,
2003 compared to $3.5 million for the same period in 2002.

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

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

AVERAGE BALANCE SHEET AND RATE ANALYSIS
(Dollars in Thousands)

<TABLE>
<CAPTION>
                                                                            Six Months Ended June 30, 2003 and 2002
                                                                          Interest   Average               Interest    Average
                                                               Average    Income /    Yield /    Average    Income /    Yield /
                                                               Balance    Expense      Rate      Balance    Expense      Rate
                                                               -------    -------      ----      -------    -------      ----
                                                                 (1)        (2)                    (1)        (2)
<S>                                                            <C>        <C>        <C>        <C>        <C>         <C>
ASSETS:
Interest-bearing deposits with other financial institutions.   $  4,571   $    33      1.44%    $  4,178     $   33      1.58%
Investment securities (3)...................................     55,471       977      4.15%      54,642      1,340      4.90%
Federal funds sold..........................................      4,767        29      1.22%       2,274         19      1.67%
Loans.......................................................    149,809     4,717      6.36%     145,268      5,072      6.98%
                                                               --------   -------               --------     ------
Total interest earning assets...............................   $214,618   $ 5,756      5.36%    $206,362     $6,464      6.26%
                                                               --------   -------               --------     ------
Reserve for loan losses.....................................     (1,346)                          (1,032)
Cash and due from banks.....................................      6,107                            2,298
Other assets................................................     10,540                           11,499
                                                               --------                         --------

Total assets................................................   $229,919                         $219,127
                                                               --------                         --------
</TABLE>

                                       17

<PAGE>

<TABLE>
<S>                                                           <C>         <C>         <C>      <C>         <C>         <C>
LIABILITIES AND CAPITAL:
Interest bearing deposits ..................................  $  157,708  $    1,908  2.42%    $  146,654  $    2,352  3.21%
Short-term borrowings ......................................      16,475         144  1.75%        18,660         170  1.82%
Long-term borrowings .......................................      11,344         337  5.94%        11,353         337  5.94%
                                                              ----------  ----------           ----------  ----------

Total interest-bearing liabilities .........................  $  185,527  $    2,389  2.58%    $  176,667  $    2,859  3.24%
                                                              ----------                       ----------  ----------

Demand deposits ............................................  $   16,112                       $   14,789
Other liabilities ..........................................       1,308                            1,311
Stockholders' equity .......................................      26,919                           26,349
                                                              ----------                       ----------

Total liabilities and capital ..............................  $  229,919                       $  219,127
                                                              ----------                       ----------

NET INTEREST INCOME / ......................................              $    3,367  3.14%                $    3,605  3.49%
  NET INTEREST MARGIN (4)

TAX EQUIVALENT NET INTEREST INCOME / .......................              $    3,590  3.35%                $    3,850  3.73%
  NET INTEREST MARGIN (5)
</TABLE>

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

(2)      Interest on loans includes fee income.

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

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

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

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

             CHANGE IN NET INTEREST INCOME ON A TAX EQUIVALENT BASIS

<TABLE>
<CAPTION>
                                                                         Six Months Ended June 30, 2003
                                                                              Compared with 2002
                                                                             Increase (Decrease) (2)
                                                                       Volume         Rate         Total
                                                                      --------      --------      --------
<S>                                                                   <C>           <C>           <C>
Interest income:                                                                 (In thousands)
           Loans (1)                                                  $    317      $   (901)     $   (584)
                                                                      --------
           Investments                                                      41          (410)         (369)
                                                                      --------
            Federal funds sold and other short-term investments             46           (18)           28
                                                                      --------
Interest expense:
            Deposits                                                  $    355      $ (1,159)     $   (804)
            Short-term borrowings                                          (40)          (13)          (53)
            Long term debt                                                  (1)            0            (1)

Net:                                                                  $     90      $   (157)     $    (67)
</TABLE>

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

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

Average interest earning assets at June 30, 2003 increased by 4.0 percent over
June 30, 2002 to $214.6 million from $206.4 million.

Average loans outstanding increased from $145.3 million to $149.8 million or 3.1
percent for the six months ended June 30, 2003 as compared with the six months
ended June 30, 2002.

The outstanding balance of loans at June 30, 2003 was $148.3 million compared to
$151.3 million at December 31, 2002.

Interest income from investment securities declined $363 thousand at $977
thousand for the six months ended June 30, 2003 compared to $1,340 thousand at
June 30, 2002. The average balance of investment securities for the six months
ended June 30, 2003 increased 1.6 percent to $55.5 million, compared to the
$54.6 million for the same period of 2002.

Total interest expense decreased $470 thousand or 16.4 percent for the first six
months of 2003 as compared to the first six months of 2002. The cost of interest
bearing liabilities decreased on an average yield basis from 3.24 percent
through June 2002 compared to 2.58 percent through June 2003. The average yield
on interest earning assets decreased from 6.26 percent to 5.36 percent through
June 2003 and 2002 respectively.

Average short-term borrowings decreased $2.2 million from $18.7 million at June
30, 2002 to $16.5 million at June 30, 2003.

Average long-term borrowings from Federal Home Loan Bank decreased slightly from
11.4 million at June 30, 2002 to 11.3 million at June 30, 2003 respectively.

                                       18

<PAGE>

NON-INTEREST INCOME

The following table presents the components of non-interest income for the six
months ended June 30, 2003 and 2002:

<TABLE>
<CAPTION>
                                                                                Six Months Ended
                                                                                     June 30,
                                                                                 (In thousands)
                                                                                -----------------
                                                                                 2003        2002
                                                                                 ----        ----
<S>                                                                             <C>          <C>
Service charges and fees..............................................           $341        $326
Trust Department income...............................................             63         103
Investment securities gain - net......................................              0           0
Gain on sale of loans.................................................            106           0
Gain on sale of Other Real Estate Owned...............................             12           0
Gain on Cash Surrender Value of BOLI..................................             97           7
Third party brokerage income..........................................             36          36
Other.................................................................             62          42
                                                                                 ----        ----
         Total........................................................           $717        $514
                                                                                 ----        ----
</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, 2003, total non-interest income
increased $203 thousand to $717 thousand or 39.5 percent, compared to $514
thousand for the six months period ended June 30, 2002. Service charges and fees
increased $15 thousand from $326 thousand at June 30, 2002 to $341 thousand or
4.6 percent at June 30, 2003. Trust Department income decreased from $103
thousand at June 30, 2002 to $63 thousand or 38.8 percent decrease at June 30,
2003. Third party brokerage income remained at $36 thousand for June 30, 2002
and June 30, 2003. We began selling fixed rate mortgages during 2003 and the
gains derived from these sales was $106 thousand through June 30, 2003 compared
to 0 through June 30, 2002. The 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, 2003 balance sheet and income statement. Other non-interest
income increased $20 thousand from $42 thousand at June 30, 2002 to $62 thousand
at June 30, 2003.

NON-INTEREST EXPENSE

The following table presents the components of non-interest expense for the six
months ended June 30, 2002 and 2003:

<TABLE>
<CAPTION>
                                                                                  Six Months Ended
                                                                                      June 30,
                                                                                 2003          2002
                                                                                 ----          ----
                                                                               (Dollars in Thousands)
<S>                                                                            <C>            <C>
Salaries and wages....................................................          $1,085        $1,075
Employee benefits.....................................................             382           373
Net occupancy expense.................................................             192           180
Furniture and equipment expense.......................................             233           301
State shares tax......................................................             138           127
Other expense.........................................................             654           631
                                                                                ------        ------

         Total........................................................          $2,684        $2,687
                                                                                ------        ------
</TABLE>

Non-interest expense remained at $2.7 million at June 30, 2002 and 2003.

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

Salaries increased .1 percent at June 30, 2003 compared to June 30, 2002. A 2.4
percent increase was reflected in employee benefits from $373 thousand at June
30, 2002 to $382 thousand at June 30, 2003. This was mainly attributable to the
increased cost of health insurance.

Occupancy expense increased $12 thousand comparing $180 thousand at June 30,
2002 to $192 thousand at June 30, 2003. This increase was mainly due to snow and
ice removal and heating costs Furniture and equipment expense reflects a $68
thousand or 22.6 percent decrease for the first six months of 2003 compared to
the first six months of 2002. The decrease was attributable to the fact that a
significant portion of the bank's EDP equipment became fully depreciated.

Pennsylvania Bank Shares Tax increased 8.7 percent from $127 thousand at June
30, 2002 compared to $138 thousand at June 30, 2003.

Other expenses increased $23 thousand or 3.6 percent from $631 thousand at June
30, 2002 to $654 thousand at June 30, 2003. This increase occurred from the
addition of deferred compensation and deferred health plans of $20,000,
additional loan costs of $9,000, additional other professional expense of
$3,000, additional Other Real Estate expense of $2,000 and, conversely, ATM
expense decreased $11,000 primarily due to changing vendors.

INCOME TAXES

Income tax expense as a percentage of pre-tax income was 21.1 percent for the
six months ended June 30, 2003 compared with 23.2 percent for the same period in
2002. The effective tax rate for 2003 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

                                       19

<PAGE>

responsibility of the Asset / Liability Management Committee ("ALCO"), which
reports to the Board of Directors. ALCO establishes policies that monitor and
coordinate our sources, uses and pricing of funds as well as interest-earning
asset pricing and volume.

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

LIQUIDITY

Liquidity measures the ability to satisfy current and future cash flow needs as
they become due. Maintaining a level of liquid funds through asset/liability
management seeks to ensure that these needs are met at a reasonable cost. On the
asset side, liquid funds are maintained in the form of cash and due from banks,
federal funds sold, investment securities maturing within one year, and security
and loan payments. Liquid assets amounted to $ 204.1 million and $202.3 million
at June 30, 2003 and December 31, 2002, respectively. This represents 95.2
percent and 94.1 percent of earning assets, and 88.4 percent and 88.3 percent of
total assets at June 30, 2003 and December 31, 2002, respectively.

On the liability side, the primary source of funds available to meet liquidity
needs is our core deposit base, which generally excludes certificates of deposit
over $100 thousand. Core deposits averaged approximately $143.7 million for the
six months ended June 30, 2003 and $140.9 million for the year ended December
31, 2002, representing 67.0 percent and 68.3 percent of average earning assets.
Short-term and long-term borrowings through repurchase agreements, Federal Home
Loan Bank advances and large dollar certificates of deposit, generally those
over $100 thousand, are used as supplemental funding sources. Additional
liquidity is derived from scheduled loan and investment payments of principal
and interest, as well as prepayments received. For the six months ended June 30,
2003 there were $24.9 million of proceeds from the sales, maturities and
redemptions of investment securities available for sale. Purchases of investment
securities for the six months ended June 30, 2002 were $29.1. Short-term
borrowings and certificates of deposit over $100 thousand amounted to $47.5
million and $48.5 million for the six months ended June 30, 2003 and the year
ended December 31, 2002, respectively. This strategy of lowering short-term
borrowings and certificates of deposit interest rates has positively impacted
the interest expense of the bank.

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

As of June 30, 2003, we had $57.4 million of securities available for sale
recorded at their fair value, compared with $53.5 million at December 31, 2002.
As of June 30, 2003, the investment securities available for sale had an
unrealized gain of $477 thousand, net of deferred taxes, compared with an
unrealized gain of $536 thousand, net of deferred taxes, at December 31, 2002.
These securities are not considered trading account securities which may be sold
on a continuous basis, but rather are securities which may be sold to meet our
various liquidity and interest rate requirements.

NON-PERFORMING ASSETS

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

<TABLE>
<CAPTION>
                                 (Dollars in thousands)
                                 June 30,  December 31,
                                  2003          2002
                                  ----          ----
<S>                              <C>           <C>
Past due and non-accrual:
           Days 30 - 89          $  499        $1,841
           Days 90 plus             161            50
           Non-accrual            2,281         2,122
                                 ------        ------
Total                            $2,941        $4,013
                                 ------        ------
</TABLE>

Past due and non-accrual loans decreased 27.5 Percent from 4.0 million at
December 31, 2002 to 2.9 million at June 30, 2003. The loan delinquency
expressed as a ratio to total loans was 2.0 percent at June 30, 2003 and 2.6
percent at December 31, 2002.

The amount of loan delinquencies is attributed to the current economic
conditions, which result in less profitability for many local companies. This
further impacts the local job market and the associated wages. The provision for
loan losses for 2003 increased from $59 thousand at June 30, 2002 to $100
thousand at June 30, 2003. 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. During the
second quarter a Chief Lending Officer was hired.

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

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

                                       20

<PAGE>

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

<TABLE>
<CAPTION>
                                                                                                           (Dollars in
                                                                                                            Thousands)
                                                                                                          June 30, 2003
<S>                                                                                                       <C>
                                MATURITY AND REPRICING DATA FOR LOANS AND LEASES

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.....................................................................      $  3,474
         (2) Over three months through 12 months......................................................        10,865
         (3) Over one year through three years........................................................        29,483
         (4) Over three years through five years......................................................         2,035
         (5) Over five years through 15 years.........................................................        24,275
         (6) Over 15 years............................................................................           381
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.....................................................................        28,071
         (2) Over three months through 12 months......................................................        10,746
         (3) Over one year through three years........................................................        17,208
         (4) Over three years through five years .....................................................         6,919
         (5) Over five years through 15 years.........................................................        12,111
         (6) Over 15 years............................................................................           435
                                                                                                            --------
                  Sub-total...........................................................................      $146,003
Add:     non-accrual loans not included above.........................................................         2,281
Less:    unearned income..............................................................................             4
                                                                                                            --------
                  Total Loans and Leases                                                                    $148,280
</TABLE>

ALLOWANCE FOR LOAN LOSSES

The allowance for loan losses reflected a balance of $1.4 million or .94 percent
of total loans at June 30, 2003 and a balance of $1.3 million or .86 percent of
total loans at December 31, 2002. The allowance is believed adequate for
possible loan losses in the future.

The provision for loan losses was $100 thousand for the first six months of 2003
compared to $59 thousand for the first six months of 2002.

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, o Concentrations
             of credit risk, and

         -   Changes in loan policies or underwriting standards.

                                       21

<PAGE>

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

<TABLE>
<CAPTION>
                                                                             For the Six Months
                                                                              Ending June 30,
Amounts in thousands                                                         2003         2002
--------------------                                                         ----         ----
<S>                                                                        <C>          <C>
Average loans outstanding:                                                 $149,809     $145,268
                                                                           --------     --------
Total loans at end of period                                                148,280      148,517
                                                                           --------     --------
Balance at beginning of period                                                1,298        1,028
           Total charge-offs                                                    (36)         (55)
           Total recoveries                                                      32           42
           Net charge-offs                                                       (4)         (13)
           Provision for loan losses                                            100           59
                                                                           --------     --------
 Balance at end of period                                                  $  1,394     $  1,074
                                                                           --------     --------
Net charge-offs as a percent of average loans outstanding during period         .01%         .01%
Allowance for loan losses as a percent of total loans                           .94%         .72%
</TABLE>

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

CAPITAL ADEQUACY

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

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

<TABLE>
<CAPTION>
                                                                                 June 30, 2003            December 31, 2002
                                                                                 -------------            -----------------
                                                                                           Minimum                    Minimum
                                                                           Calculated      Standard  Calculated       Standard
                                                                             Ratios         Ratios     Ratios          Ratios
                                                                             ------         ------     ------          ------
<S>                                                                        <C>             <C>       <C>              <C>
Risk Based Ratios:
Tier I Capital to risk-weighted assets..................................     19.34%         4.00%      18.53%           4.00%
Total Qualifying Capital to risk-weighted assets........................     20.36%         8.00%      19.46%           8.00%
</TABLE>

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

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

Book value per share amounted to $21.16 at June 30, 2003, compared with $20.76
per share at December 31, 2002.

Cash dividends declared amounted to $0.80 per share, for the six months ended
June 30, 2003, equivalent to a dividend payout ratio of 40.06 percent, compared
with 38.58 percent for the same period in 2002. Our Board of Directors continues
to believe that cash dividends are an important component of shareholder
Additionally, certain other ratios also provide capital analysis as follows:
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.

                                       22

<PAGE>

CONTROLS AND PROCEDURES

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

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

LIMITATIONS ON THE EFFECTIVENESS OF CONTROLS.

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

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

                                       23

<PAGE>

PART II - OTHER INFORMATION;

Item 1. Legal Proceedings

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

Item 2. Changes in Securities - Nothing to report.

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

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

Item 5. Other Information - None

Item 6. Exhibits and Reports on Form 8-K - Exhibits 31.1, 31,2 and 32

                                       24

<PAGE>

                                   SIGNATURES

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

                               CCFNB BANCOPR, INC.
                                  (Registrant)

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

                               Date: August 8, 2003

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

                               Date:  August 8, 2003

                                       25