UNITED  STATES
                         SECURITIES  AND  EXCHANGE  COMMISSION
                               Washington,  D.C.  20549

                                       FORM  10-Q


[  X  ]  QUARTERLY  REPORT  PURSUANT  TO  SECTION 13 OR 15 (D) OF THE SECURITIES
EXCHANGE  ACT  OF  1934
For  the  quarterly  period  ended  September  30,  2001
                                    --------------------

or

[    ]  TRANSITION  REPORT  PURSUANT  TO  SECTION 13 OR 15 (D) OF THE SECURITIES
EXCHANGE  ACT  OF  1934
For  the  transition  period  from  ________________  to  ______________

Commission  File  Number:  2-94863
                           -------



                             CANANDAIGUA  NATIONAL  CORPORATION
                    (Exact  name  of  registrant  as  specified  in its charter)


                      New  York                            16-1234823
                      ---------                            ----------
            (State  or  other  jurisdiction  of            (I.R.S.  Employer
             incorporation  or  organization)         Identification  Number)


     72  South  Main  Street,  Canandaigua,  New  York             14424
     -------------------------------------------------             -----
      (Address  of  principal  executive  offices)             (Zip  Code)


                                 (716) 394-4260
                                 --------------
               Registrant's telephone number, including area code


  Indicate  by  check  mark  whether  the  registrant  (1) has 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
registrant  was required to file such reports), and (2) has been subject to such
filing  requirements  for  the  past  90  days.  [X]  Yes   [  ]  No






















SAFE  HARBOR  STATEMENT
-----------------------

"Safe  Harbor"  Statement  under the Private Securities Litigation Reform Act of
1995:  This  report  contains  certain  "forward-looking statements" intended to
qualify  for  the  "safe harbor" provisions of the Private Securities Litigation
Reform  Act  of  1995.  When  used or incorporated by reference in the Company's
disclosure  documents,  the words "anticipate," "estimate," "expect," "project,"
"target,"  "goal"  and  similar  expressions  are  intended  to  identify
forward-looking  statements  within the meaning of Section 27A of the Securities
Act. Such forward-looking statements are subject to certain risks, uncertainties
and assumptions, including, but not limited to (1) economic conditions, (2) real
estate  market,  and  (3)  interest  rates. Should one or more of these risks or
uncertainties  materialize,  or  should  underlying assumptions prove incorrect,
actual  results  may vary materially from those anticipated, estimated, expected
or  projected. These forward-looking statements speak only as of the date of the
document.  The  Company  expressly  disclaims  any  obligation or undertaking to
publicly  release  any  updates  or  revisions  to any forward-looking statement
contained  herein to reflect any change in the Company's expectation with regard
thereto  or  any change in events, conditions or circumstances on which any such
statement  is  based.














































                CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES

                               INDEX TO FORM 10-Q

                               SEPTEMBER 30, 2001

PART  I -- FINANCIAL INFORMATION                                            Page
                                                                            ----

Item  1.  Financial  Statements  (Unaudited)

Condensed  consolidated  balance  sheets  at  September  30,  2001
  and  December 31, 2000.                                                      1

Condensed  consolidated  statements  of  income  for  the  three  and  nine
  month  periods ended September 30, 2001 and 2000.                            3

Consolidated  statements  of  stockholders'  equity
  for  the nine-month periods ended September 30, 2001 and 2000.               4

Consolidated  statements  of  cash  flows  for  the  nine-
  month  periods ended September 30, 2001 and 2000.                            5

Notes  to financial statements                                                 6


Item  2.  Management's  Discussion  and  Analysis  of  Financial
  Condition  and Results of Operations                                         9

Item  3.  Quantitative  and  Qualitative  Disclosures  about
  Market  Risk
    This  information  is  incorporated  by  reference
    in  Part  I,  Item  2,  Interest  Rate  Sensitivity  and
                            --------------------------------
    Asset/Liability  Management Review                                        12
    ----------------------------------


PART  II  --  OTHER  INFORMATION

Item  1.  Legal Proceedings                                                   16
Item  2.  Changes in Securities and Use of Proceeds                           16
Item  3.  Defaults Upon Senior Securities                                     16
Item  4.  Submission of Matters to a Vote of Security Holders                 16
Item  5.  Other Information                                                   16
Item  6.  Exhibits and Reports on Form 8-K                                    16

SIGNATURES                                                                    17

EXHIBITS                                                                      18
















PART  I  FINANCIAL  INFORMATION
Item  1.  Financial  Statements
<TABLE>

<CAPTION>

                      CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES
                            CONDENSED CONSOLIDATED BALANCE SHEETS
                    September 30, 2001 and December 31, 2000 (unaudited)
                        (dollars in thousands, except per share data)


                                                               September 30,   December 31,
                                                              ---------------  -------------
Assets                                                             2001            2000
------------------------------------------------------------  ---------------  -------------

                                                           <c>              <c>

Cash and due from banks                                       $       33,330         28,157
Interest-bearing deposits with other financial institutions            3,774             97
Securities:
  - Available for sale, at fair value                                    528            450
  - Held-to-maturity (fair value of $100,692 in 2001 and
      $80,881 in 2000)                                                98,764         80,492
Loans:
  Commercial, financial & agricultural                                74,070         65,324
  Commercial mortgage                                                231,731        195,153
  Residential mortgage                                                85,844         81,413
  Consumer-auto indirect                                              92,704         93,746
  Consumer-other                                                      24,764         20,214
  Other                                                                  896          1,833
  Loans held for sale                                                  2,750          2,288
                                                              ---------------  -------------
    Total loans                                                      512,759        459,971
  Less:  Allowance for loan losses                                    (5,356)        (4,712)
                                                              ---------------  -------------
    Loans - net                                                      507,403        455,259
Premises and equipment - net                                          16,858         15,949
Accrued interest receivable                                            3,590          3,371
Federal Home Loan Bank stock and Federal Reserve Bank stock            2,013          3,032
Other assets                                                           9,255          7,930
                                                              ---------------  -------------
        Total Assets                                          $      675,515        594,737
                                                              ===============  =============


<FN>

                                          (Continued)
</TABLE>













                                                                      Page  1
<PAGE>
<TABLE>

<CAPTION>

                     CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES
                           CONDENSED CONSOLIDATED BALANCE SHEETS
                   September 30, 2001 and December 31, 2000 (unaudited)
                       (dollars in thousands, except per share data)



                                                             September 30,   December 31,
                                                            ---------------  -------------
Liabilities and Stockholders' Equity                             2001            2000
----------------------------------------------------------  ---------------  -------------

                                                         <c>              <c>

Deposits:
  Demand:
    Non-interest bearing                                    $       94,302         87,201
    Interest bearing                                                62,231         53,665
  Savings and money market                                         226,806        162,975
  Time deposits                                                    224,463        229,672
                                                            ---------------  -------------
        Total deposits                                             607,802        533,513
Borrowings                                                          16,109         12,644
Accrued interest payable and other liabilities                       4,717          4,311
                                                            ---------------  -------------
        Total Liabilities                                   $      628,628        550,468
                                                            ---------------  -------------


Stockholders' Equity:
  Common stock, $50 par value; 240,000 shares authorized;
    162,208 shares issued in 2001 and 2000                           8,110          8,110
  Additional paid-in capital                                         8,532          8,532
  Retained earnings                                                 31,257         28,687
  Treasury stock at cost (3,471 shares in 2001 and
    3,476 shares in 2000)                                           (1,267)        (1,268)
  Accumulated other comprehensive income                               255            208
                                                            ---------------  -------------
        Total Stockholders' Equity                                  46,887         44,269
                                                            ---------------  -------------
        Total Liabilities and Stockholders' Equity          $      675,515        594,737
                                                            ===============  =============
<FN>

See  notes  to  financial  statements.
</TABLE>

















                                                                        Page  2
<PAGE>

<TABLE>

<CAPTION>

                CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES
                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME

       For the three and nine month periods ended September 30, 2001 and 2000
                                   (Unaudited)

                  (dollars in thousands, except per share data)

                                           Three months ended  Nine months ended
                                               September  30,     September  30,
                                                2001     2000     2001     2000
                                               -------  -------  -------  -------

                                            <c>      <c>      <c>      <c>
Interest income:
  Loans, including fees                        $ 9,965  $ 9,856  $29,507  $27,382
  Securities                                     1,153    1,048    3,520    3,198
  Other                                             44       26       88       73
                                               -------  -------  -------  -------
        Total interest income                   11,162   10,930   33,115   30,653
                                               -------  -------  -------  -------
Interest expense:
  Deposits                                       4,239    4,548   13,541   12,491
  Borrowings                                       173      343      367    1,159
                                               -------  -------  -------  -------
      Total interest expense                     4,412    4,891   13,908   13,650
                                               -------  -------  -------  -------
      Net interest income                        6,750    6,039   19,207   17,003
Provision for loan losses                          379      270    1,177      828
                                               -------  -------  -------  -------
      Net interest income after provision for
        loan losses                              6,371    5,769   18,030   16,175
                                               -------  -------  -------  -------

Other income:
  Service charges on deposit accounts            1,119      984    3,355    2,694
  Trust income                                     832      806    2,743    2,428
  Net gain on sale of mortgage loans                99        8      130       11
  Other operating income                           572      606    1,834    1,656
                                               -------  -------  -------  -------
      Total other income                         2,622    2,404    8,062    6,789
                                               -------  -------  -------  -------

Operating expenses:
  Salaries and employee benefits                 3,609    3,620   11,023   10,698
  Occupancy                                      1,245    1,229    3,764    3,446
  Marketing and public relations                   206      132      647      593
  Office supplies, printing and postage            278      223      798      733
  FDIC insurance                                    26       12       76       57
  Other operating expenses                         977    1,196    3,414    3,502
                                               -------  -------  -------  -------
      Total operating expenses                   6,341    6,412   19,722   19,029
                                               -------  -------  -------  -------

      Income before income taxes                 2,652    1,761    6,370    3,935
Income taxes                                       775      347    1,879      837
                                               -------  -------  -------  -------
      Net income                               $ 1,877  $ 1,414  $ 4,491  $ 3,098
                                               =======  =======  =======  =======

Basic earnings per share                       $ 11.82  $  8.92  $ 28.29  $ 19.55
                                               =======  =======  =======  =======
Diluted earnings per share                     $ 11.74  $  8.87  $ 28.11  $ 19.43
                                               =======  =======  =======  =======
<FN>

See  notes  to  financial  statements
</TABLE>













                                                                        Page  3
<PAGE>
<TABLE>

<CAPTION>

                         CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES
                          CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

             For the nine month periods ended September 30, 2001 and 2000 (Unaudited)

                           (dollars in thousands, except per share data)


                                                                             Accumulated
                                           Additional                          Other
                                  Common     Paid in  Retained   Treasury   Comprehensive
                                  Stock      Capital  Earnings     Stock       Income       Total
                               ------------  -------  ---------  ---------  -------------  -------

                            <c>           <c>      <c>        <c>        <c>            <c>
Balance at January 1, 2001     $      8,110    8,532    28,687     (1,268)            208  44,269
  Comprehensive income:
    Change in unrealized
     gain on securities
     available for sale,
     net of taxes of $10                  -        -         -          -              47      47
    Net income                            -        -     4,491          -               -   4,491
                                                                                           -------
  Total comprehensive
   income                             4,538
                               ------------
  Cash dividend - $12.10
   per share                              -        -    (1,921)         -               -  (1,921)
  Sale of 5 shares
   of treasury stock                      -        -         -          1               -       1
                               ------------  -------  ---------  ---------  -------------  -------
Balance at September 30, 2001         8,110    8,532    31,257     (1,267)            255  46,887
                               ============  =======  =========  =========  =============  =======



Balance at January 1, 2000     $      8,110    8,506    27,087     (1,348)            122  42,477
  Comprehensive income:
    Change in unrealized
     gain on securities
     Available for sale,
     net of taxes of $22                  -        -         -          -              32      32
    Net income                            -        -     3,098          -               -   3,098
                                                                                           -------
  Total comprehensive
   Income                             3,130
                               ------------
  Cash dividend - $11.90
   per share                              -        -    (1,887)         -               -  (1,887)
  Sale of 14 shares
   of treasury stock                      -        2         -          5               -       7
                               ------------  -------  ---------  ---------  -------------  -------
Balance at September 30, 2000         8,110    8,508    28,298     (1,343)            154  43,727
                               ============  =======  =========  =========  =============  =======















<FN>

See  notes  to  financial  statements
</TABLE>








                                                                        Page  4
<PAGE>
<TABLE>

<CAPTION>

                CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS

    For the nine month periods ended September 30, 2001 and 2000 (Unaudited)

                             (dollars in thousands)



                                                         2001       2000
                                                      ----------  ---------

                                                   <c>         <c>
Cash flow from operating activities:
  Net income                                          $   4,491   $  3,098
  Adjustments to reconcile net income to
    net cash provided by operating activities:
    Depreciation, amortization and accretion              1,158      1,536
    Provision for loan losses                             1,177        828
    Deferred income taxes                                  (157)      (305)
    Income from minority owned entities                     (73)         -
    Originations of loans held for sale                 (77,970)   (45,700)
    Proceeds from sale of loans held for sale            77,508     44,076
    Increase in accrued interest receivable
      and other assets                                     (405)    (2,389)
    Increase in accrued interest payable and
     other liabilities                                      406        105
                                                      ----------  ---------
      Net cash provided by operating activities           6,135      1,249
                                                      ----------  ---------

Cash flow from investing activities:
  Sale of FHLB and FRB stock - net                        1,019        558
  Securities held to maturity:
    Proceeds from maturities and calls                  139,498     48,304
    Purchases                                          (157,075)   (51,488)
  Loans originated - net                                (53,025)   (57,293)
  Fixed asset purchases - net                            (2,662)    (3,925)
  Investment in minority owned entity and others           (884)         -
  Cash received from sale of other real estate               10         45
                                                      ----------  ---------
      Net cash used by investing activities             (73,119)   (63,799)
                                                      ----------  ---------

Cash flow from financing activities:
  Net increase in demand, savings and money
    market deposits                                      69,080     22,692
  Net increase in time deposits                           5,209     45,688
  Proceeds from (repayments of) overnight borrowings    (10,400)     8,270
  Proceeds from (repayments of) term borrowings          13,865    (10,032)
  Proceeds from sale of treasury stock                        1          7
  Dividends paid                                         (1,921)    (1,887)
                                                      ----------  ---------
      Net cash provided by financing activities          75,834     64,738
                                                      ----------  ---------

      Net increase in cash & cash equivalents             8,850      2,188
  Cash & cash equivalents - beginning of period          28,254     26,834
                                                      ----------  ---------
  Cash & cash equivalents - end of period             $  37,104   $ 29,022
                                                      ==========  =========

Supplemental disclosures of cash flow information:
  Cash paid during the period for:
    Interest                                          $  14,121   $ 13,320
                                                      ==========  =========
    Income taxes                                      $   1,990   $  1,175
                                                      ==========  =========

<FN>

See  notes  to  financial  statements
</TABLE>








                                                                        Page  5
<PAGE>
                CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES
                    Notes to Financial Statements (unaudited)


(1)     Basis  of  Presentation
        -----------------------

The accompanying unaudited condensed consolidated financial statements have been
prepared  in  accordance  with  the  instructions to Form 10-Q and Article 10 of
Regulation  S-X  and  with  generally accepted accounting principles for interim
financial  information.  Such  principles are applied on a basis consistent with
those  reflected  in the December 31, 2000 Form 10-K Report of the Company filed
with  the  Securities  and Exchange Commission. Accordingly, they do not include
all  of  the information and footnotes required by generally accepted accounting
principles  for  complete  financial  statements.  Management  has  prepared the
financial  information  included  herein  without audit by independent certified
public  accountants.  In  the opinion of management, all adjustments (consisting
of  normal recurring accruals) considered necessary for a fair presentation have
been  included.  Operating  results  for  the three and nine-month periods ended
September  30,  2001  are  not necessarily indicative of the results that may be
expected  for the year ending December 31, 2001.  For further information, refer
to  the  consolidated financial statements and footnotes thereto included in the
Company's  annual  report  on  Form  10-K  for the year ended December 31, 2000.

Amounts  in  prior  periods'  condensed  consolidated  financial  statements are
reclassified whenever necessary to conform with the current year's presentation.


(2)     Dividends  Per  Share
        ---------------------

The  Company  declared a semi-annual $6.05 per share dividend on common stock on
July  11,  2001, payable August 1, 2001 to shareholders of record July 11, 2001.
The Company also declared a semi-annual $6.05 per share dividend on common stock
on January 17, 2001, and paid February 1, 2001 to shareholders of record January
17,  2001.


(3)     Earnings  Per  Share
        --------------------

Basic  earnings  per common share is calculated by dividing net income available
to  common  shareholders  by  the  weighted average number of shares outstanding
during  the  period.  Diluted  earnings  per share includes the maximum dilutive
effect of stock issueable upon conversion of stock options. Calculations for the
three  and  nine-month periods ended September 30, 2001 and 2000 follow (dollars
in  thousands,  except  share  data):
<TABLE>

<CAPTION>



For the three months ended September 30,          2001      2000
                                                --------  --------

                                             <c>       <c>
Basic Earnings Per Share:
  Net income applicable to common shareholders  $  1,877  $  1,414
  Weighted average common shares outstanding     158,737   158,497
                                                --------  --------
      Basic earnings per share:                 $  11.82  $   8.92
                                                ========  ========


Diluted Earnings Per Share:
  Net income applicable to common shareholders  $  1,877  $  1,414
  Weighted average common shares outstanding     158,737   158,497
  Effect of assumed exercise of stock options      1,127       961
                                                --------  --------
    Total                                        159,864   159,458
                                                --------  --------
      Diluted earnings per share:               $  11.74  $   8.87
                                                ========  ========
</TABLE>










                                                                        Page  6
<PAGE>
(3)     Earnings  Per  Share  (continued)
        ---------------------------------
<TABLE>

<CAPTION>

For the nine months ended September 30,           2001     2000
                                                --------  -------

                                             <c>       <c>
Basic Earnings Per Share:
  Net income applicable to common shareholders  $  4,491    3,098
  Weighted average common shares outstanding     158,734  158,492
                                                --------  -------
      Basic earnings per share:                 $  28.29    19.55
                                                ========  =======


Diluted Earnings Per Share:
  Net income applicable to common shareholders  $  4,491    3,098
  Weighted average common shares outstanding     158,734  158,492
  Effect of assumed exercise of stock options      1,056      993
                                                --------  -------
    Total                                        159,790  159,485
                                                --------  -------
      Diluted earnings per share:               $  28.11    19.43
                                                ========  =======

</TABLE>




 (4)     Stock  Option  Plan
         -------------------

The  Company's incentive stock option program for employees authorizes grants of
options  to purchase up to 16,000 shares of common stock.  In 2001, the Board of
Directors granted, 2,393 non-qualified options to management under the Company's
incentive  compensation  plan  for 2000's performance.  The options were granted
with  an exercise price equal to the estimated fair value of the common stock on
the  grant  date.  The options are exerciseable at times varying from five years
to fifteen years.  The options are fully vested and have no set expiration date.

The  Company applies APB Opinion No. 25 in accounting for its stock option plan,
and  accordingly,  no  compensation cost has been recognized for its fixed-award
stock  options  in  the  condensed  consolidated  statement  of  income.  Had
compensation  cost  been determined based on the fair value at the grant date of
the  stock  options  using valuation models consistent with the approach of SFAS
No.  123,  the  Company's net income and earnings per share for the year-to-date
periods  in  2001  and  2000  would  have  been reduced to the pro forma amounts
indicated  below  (net  income  in  thousands):
<TABLE>

<CAPTION>



For the nine months ended September 30,   2001    2000
                                         ------  ------

                                      <c>     <c>
Net income:
  As reported                            $4,491  $3,098
  Pro forma                               4,326   2,966

Earnings per share:
  As reported:
    Basic                                $28.29  $19.55
    Diluted                               28.11   19.43
  Pro forma:
    Basic                                $27.25  $18.71
    Diluted                               27.07   18.60
</TABLE>



The  weighted  average  fair  value  of options granted during 2001 and 2000 was
$97.52  and  $122.56,  respectively.  The  fair  value  of  each option grant is
estimated on the date of grant using the Black-Scholes option-pricing model with
the  following  weighted  average  assumptions:
<TABLE>

<CAPTION>



Grant year                  2001         2000
                         -----------  -----------

                      <c>          <c>
Dividend yield                 2.61%        2.72%
Risk free interest rate        4.92%        6.45%
Life                     10.4 years   11.4 years
Volatility                    13.81%       14.39%
</TABLE>






                                                                        Page  7
<PAGE>

(5)     Contract  Termination  Costs
        ----------------------------

Since  the  Company's  credit card portfolios sales will occur approximately one
year  later  than  originally  estimated  by  management, the estimated contract
termination costs will be lower.  As a result, the Company reversed $0.2 million
of  the  contract  termination  reserve  to  "Other  operating  expenses" on the
September  30,  2001  Condensed Consolidated Statement of Income.  For the three
and  nine  months  ended  September 30, 2001, the Company paid $0.03 million and
$0.06  million,  respectively,  from the accrued contract termination liability.
The  balance  of  the  liability  at  September 30, 2001 was $0.1 million and is
expected  to  be  fully  paid  in  2002. The expected portfolios sales dates are
fourth  quarter  of 2001 for the business portfolio (approximately $0.5 million)
and  first  quarter  of  2002  for  the  consumer  portfolio (approximately $2.0
million).


(6)      Impact  of  Accounting  Standard  Adoption
         ------------------------------------------

The Company implemented the provisions of FASB Statement No. 133 "Accounting for
Derivative  Instruments and Hedging Activities", as amended, on January 1, 2001.
This  Statement  establishes comprehensive accounting and reporting requirements
for  derivative  instruments  and  hedging  activities.  The  Company  holds  no
freestanding  derivative instruments; therefore the adoption of the new standard
had  no  effect  on  the Company's financial condition or results of operations.








































                                                                        Page  8
<PAGE>


Item  2. Management's Discussion and Analysis of Financial Condition and Results
of  Operations
        September  30,  2001

The following is management's discussion and analysis of the Company's financial
position  and  operating results during the periods included in the accompanying
condensed  consolidated  financial  statements.  Management's  discussion  and
analysis  supplements  management's  discussion  and analysis for the year ended
December  31,  2000  contained  in  the Company's Form 10-K and includes certain
known  trends,  events  and uncertainties that are reasonably expected to have a
material  effect  on  the  Company's  financial  position  or operating results.


Overview
--------

The  Company's  assets  grew  to  $675.5  million  at  September 30, 2001.  This
represents  a  13.6%  increase  over year-end 2000 and a 14.5% increase over the
September 30, 2000 balance.  Net income grew 45.0% to $4.5 million for the first
nine months of 2001 compared to $3.1 million for the same period of 2000.  These
results are slightly ahead of budget and are reflective of the growth in earning
assets,  offset  by  a  modest  3.6%  growth in operating expenses year-on-year.

Financial  Condition  and  Results  of  Operations
--------------------------------------------------

Three  months  ended  September  30,  2001
------------------------------------------

As  of  September  30, 2001, total assets of the Company were $675.5 million, up
from  $656.1  million  at  June  30,  2001.  Cash and equivalents increased $7.8
million  to $37.1 million, due to increased cash reserve requirements associated
with  deposit  growth  and  cash  in  interest  bearing  bank  accounts awaiting
reinvestment.  During  the  quarter,  municipal deposits increased, however, the
Company's  total  security portfolio, including securities used to collateralize
these  deposits,  decreased  as  excess  collateral  was  not  replaced upon its
maturity.  Securities  decreased  $6.5  million  to  $99.3  million.  Net  loans
increased  $18.5  million  to $507.4 million, and all other assets declined $0.4
million  to  $31.7  million.

Total  deposits  at  September  30,  2001  were $607.8 million and were up $31.4
million from June 30, 2001. The newest eight offices contributed $7.7 million of
the quarter's deposit growth, while the remaining offices showed a $14.6 million
increase.  Municipal  deposits  increased  $5.0  million and nationally marketed
time  deposits  increased $4.1 million.  From time to time, management may issue
nationally  marketed  time deposits depending upon the interest rate environment
and/or  the need for balance sheet liquidity. The growth in deposits was used to
fund  the  quarter's  loan  portfolio  growth. Overall deposit growth during the
quarter  came  almost  entirely  from  interest-bearing  accounts.  Also,
municipalities  continued  shifting  balances from time deposits to money market
accounts  following  the  Company's  introduction  of  its new municipal deposit
account.  For  the quarter, borrowings (primarily from the FHLB) were down $13.2
million  to $16.1 million, liquidated through deposit growth.  Other liabilities
increased  by  $0.3 million to $4.7 million, largely due to bonus and retirement
accruals.

Net interest income, accounting for over 70% of the Company's revenue, increased
$0.7  million  or  11.8% for the quarter over the same quarter in 2000.  For the
quarter  ended  September  30,  2001,  average interest earning assets increased
$74.7  million  to $607.9 million from $533.2 million for the 2000 quarter.  The
yields  on  these  assets  were  7.34%  and  8.20%,  respectively,  the decrease
resulting  from  an  overall  decline  in  general interest rates, following the
Federal  Reserve  Board's  350 basis point rate reduction since the beginning of
2001.  For  the  same  periods,  average  interest bearing liabilities increased
$65.9  million  to  $515.7  million  from  $449.8  million.  Rates paid on these
liabilities  were 3.42% and 4.35%, respectively, also reflecting rate decreases.
While  the  interest  spread  increased  7  basis  points,  net  interest margin
(portfolio  profit  margin)  decreased  9  basis  points,  having a $0.2 million
negative impact on net interest income for the quarter ended September 30, 2001.
The  growth  in  interest earnings assets and interest bearing liabilities had a
$0.9  million positive impact on net interest income. The declining trend in net
interest  margin  is  expected  to  continue  through  2001  as declining market
interest  rates  are  expected  to  impact  earning  assets  greater

                                                                        Page  9
<PAGE>

than  interest-bearing liabilities. Refer to Interest Rate Sensitivity and Asset
/  Liability Management Review section for a further discussion of interest rate
risk  management.
Other income for the quarter ended September 30, 2001 increased $ 0.2 million to
$2.6  million  over  the  same  quarter  in 2000.  The increase was reflected in
nearly all major categories: service charges-attributed to increased transaction
volume,  fees  and  the  number of customer accounts; trust income-attributed to
growth in assets under management; net gain on the sale of mortgage loans. Other
operating  income  was  down.
Operating  expenses  decreased  $0.1  million  or  1.1%  for  the  quarter ended
September  30,  2001  to  $6.3  million  versus $6.4 million for the 2000 second
quarter.  Included  in the decrease is the $0.2 million reversal of a portion of
the contract termination reserve established at year end (see Note 5). Excluding
this  reserve, operating expenses would have increased only $0.2 million or 2.5%
for  the quarter.  This modest increase compares favorably to year-on-year asset
growth  of  14.5%.  Increases  came  in  nearly  all  expense categories, except
salaries  and  employee  benefits.  The  results  of  2000's  efforts to control
expense  growth  are  being realized in 2001.  Management believes expenses will
continue  to  increase  throughout  the  year, but at a slower rate than balance
sheet  growth.
The  Company's  quarterly  effective  tax rate was 29.2% in 2001 versus 19.7% in
2000.  The  increase  in  the  effective  tax  rate  is  due  to  a  decrease in
non-taxable  income  as a percent of total pre-tax income.  In 2001, non-taxable
income  accounted for 18.6% of pre-tax income, while in 2000, non-taxable income
accounted  for 50.7% of pre-tax income. Management anticipates the effective tax
rate  will  remain  near  30%  for  the  rest  of  2001.
Nine  months  ended  September  30,  2001
-----------------------------------------

Total  assets  of  the Company grew $80.8 million or 13.6% through September 30,
2001.  Cash and equivalents increased $8.9 million to $37.1 million.  Securities
increased  $18.4  million  to  $99.3  million  to allow for collateralization of
municipal  deposits.  Net  loans  increased  $52.1  million to $507.4 million on
strong commercial and mortgage demand, and all other assets rose $1.4 million to
$31.7  million.

Total  deposits  at  September  30,  2001  were $607.8 million and were up $74.3
million  from  December  31,  2000. A substantial portion (22.7%) of the deposit
growth  came  from  municipalities.  The  Company  is  marketing  its  financial
services to local governments in its newly expanded Monroe County market as well
as  expanding  existing  relationships  in  Ontario County. For the same period,
borrowings  (primarily  from  the  FHLB)  were up $3.5 million to $16.1 million.
Other  liabilities  increased  by  $0.4 million to $4.7 million. The increase in
borrowings  partially  funded  securities  and  loan  growth, with the remaining
funding  coming  from  deposit  growth.

For  the  nine months ended September 30, 2001, average interest-earning assets,
increased  $66.2  million to $582.2 million from $516.0 million at September 30,
2000.  The  yields  on  these  assets  were  7.58%  and 7.92%, respectively, the
decline  resulting from overall market rate reductions in 2001 versus 2000.  For
the  same  periods, average interest-bearing liabilities increased $56.0 million
to  $493.6  million  from  $437.6 million.  Rates paid on these liabilities were
3.76%  and  4.16%,  respectively, also reflecting general market rate decreases.
While  the  interest  spread  increased  6  basis  points,  net  interest margin
(portfolio  profit  margin)  increased  only 1 basis point, having an immaterial
impact  on  net  interest  income  for  the  year to date 2001.    The growth in
interest  earnings  assets  and  interest bearing liabilities had a $2.2 million
positive  impact  on  net interest income.  During the first nine months of 2001
the  Company's  net  interest  margin increased to 4.40% from 4.39% for the same
period  in  2000.  Margin is likely to decline, though, for the remainder of the
year  due to the impact of falling market interest rates. Refer to Interest Rate
Sensitivity  and  Asset  /  Liability  Management  Review  section for a further
discussion  of  interest  rate  risk  management.



                                                                        Page  10
<PAGE>

Other income for the nine months ended September 30, 2001 increased $1.3 million
to  $8.1  million  over  the  same  period  in  2000.  The  increase came in all
categories.  Refer  to  three-month  discussion  above.
Operating  expenses  increased  $0.7  million  for  the  nine-month period ended
September  30,  2001  to  $19.7  million versus $19.0 million for the 2000 first
half.  Refer  to  three-month  discussion  above.

The  Company's  effective tax rate was 29.5% in 2001 versus 21.3% in 2000. Refer
to  three-month  discussion  above.

Liquidity
---------

The  Board of Directors has set general liquidity standards for the Bank to meet
which  can be summarized as: the ability to generate adequate amounts of cash to
meet  the  demand  from  depositors  who  wish  to withdraw funds, borrowers who
require  funds, and capital expansion.  Liquidity is produced by cash flows from
operating,  investing,  and  financing  activities  of  the  Company.  For  the
nine-months  ended  September 30, 2001 the Company generated $8.9 million in net
cash  and  equivalents  versus  $2.2  million  for the same period in 2000.  The
overall  increase  in  cash  and  equivalents  in  2001  is primarily related to
increases  in  net  income  and  customer  deposits.

Net  cash provided by operating activities was $6.1 million for the year to date
2001.  For  the same period in 2000 operations provided $1.2 million of cash and
equivalents.  Both the largest source and use of operating cash in 2001 and 2000
were  mortgage-banking  activity.  However, activity in 2001 was 70% higher than
that of 2000's, reflective of the pick-up in mortgage refinancings due to market
interest  rate  reductions.  Because all non-portfolio mortgages are pre-sold to
investors,  the  Company  limits its credit, liquidity and interest rate risk on
these  assets.

Cash  used by investing activities increased in 2001 to $73.1 million from $63.8
million  in  2000.  The increase came from higher net security purchases, offset
somewhat  by  lower  loan growth. The Company's fixed asset investing activities
continued,  but at a slower pace than in 2000.  Fewer banking offices were under
renovation  in  2001  than 2000, although the Company did purchase its Pittsford
banking  office  during 2001 for approximately $1.0 million and opened its newly
constructed Honeoye Falls office.  Renovations were also completed at the Victor
office.

Cash  provided  by  financing  activities was $75.8 million in 2001 versus $64.7
million  in  2000.  Deposits  continue  to  be  the  Company's  main  source  of
financing,  with  borrowings  contributing  a  lesser  amount.

The  Company  has two primary sources of non-customer (wholesale) liquidity: the
Federal  Home  Loan  Bank of New York (FHLB) and the Federal Reserve Bank of New
York.  At September 30, 2001 residential mortgage loans with a carrying value of
approximately  $22.0  million were pledged as collateral for the Bank's advances
from  the  Federal Home Loan Bank. Approximately $22.0 million was available for
additional  borrowing.  Indirect  automobile  loans  with  a  carrying  value of
approximately  $88.9 million were pledged as collateral for a $71.1 million line
of  credit  from  the  Federal  Reserve  Bank  of  New  York.

Secondarily,  the  Company  has  a liquidity source through the sale of its time
deposits in the national brokered market.  This source is used from time to time
to  manage  both  liquidity  and  interest  rate risk as conditions may require.

For  the  remainder  of 2001, financing for growth is expected to come from both
customer  and  wholesale sources.  Customer deposit growth is mainly expected to
come  from  Monroe  County  sources.




                                                                        Page  11
<PAGE>
Interest  Rate  Sensitivity  and  Asset  /  Liability  Management  Review
-------------------------------------------------------------------------
(Item  3  Quantitative  and  Qualitative  Disclosures  about  Market  Risk)

The  Company realizes income principally from the differential or spread between
the interest earned on loans, investments and other interest-earnings assets and
the  interest  paid on deposits and borrowings. Loan volumes and yields, as well
as the volume of and rates on investments, deposits and borrowings, are affected
by  market  interest rates. Additionally, because of the terms and conditions of
many  of the Company's loan documents and deposit accounts, a change in interest
rates  could  also  affect the projected maturities of the loan portfolio and/or
the  deposit base, which could alter the Company's sensitivity to future changes
in  interest  rates.  Accordingly, management considers interest rate risk to be
the  Company's  most  significant  market  risk.

Interest  rate  risk  management focuses on maintaining consistent growth in net
interest  income  within  Board  approved  policy  limits  while  taking  into
consideration,  among  other  factors,  the  Company's overall credit, operating
income,  operating  cost,  and  capital  profile.  The Company's Asset/Liability
Committee  (ALCO), which is composed of select members of management and reports
to  the  Board of Directors, monitors and manages interest rate risk to maintain
an  acceptable  level of change to net interest income as a result of changes in
interest  rates.
Management  of  the  Company's  interest  rate  risk,  requires the selection of
appropriate  techniques  and  instruments  to  be utilized after considering the
benefits,  costs  and  risk  associated  with available alternatives.  Since the
Company does not utilize derivative instruments, management's techniques usually
consider  one  or more of the following: (1) interest rates offered on products,
(2)  maturity  terms offered on products, (3) types of products offered, and (4)
products  available to the Company in the wholesale market such as advances from
the  FHLB  and  brokered  time  deposits.
The  Company  uses an interest margin simulation model as one method to identify
and  manage  its interest rate risk profile. The model is based on expected cash
flows  and  repricing  characteristics  for  all  financial  instruments  and
incorporates  market-based assumptions regarding the impact of changing interest
rates  on  these  financial  instruments over a twelve month period. Assumptions
based  on  the  historical behavior of deposit rates and balances in relation to
changes  in  interest  rates  are  also  incorporated  into  the  model.  These
assumptions  are  inherently  uncertain  and,  as  a  result,  the  model cannot
precisely  measure  net  interest  income  or  precisely  predict  the impact of
fluctuations  in  interest  rates  on  net  interest income. Actual results will
differ  from  simulated  results  due  to  timing,  magnitude,  and frequency of
interest  rate  changes  as  well as changes in market conditions and management
strategies.
The  Company's  interest rate risk profile has changed little since December 31,
2000  with  net  interest  earnings projections reflecting a minor decrease when
applying  an expected falling interest rate environment through the remainder of
2001.

Management  also  uses  the  static  gap  analysis  to  identify  and manage the
Company's  interest  rate  risk  profile.   Interest  sensitivity  gap  ("gap")
analysis measures the difference between the assets and liabilities repricing or
maturing  within  specific time periods. There has been no significant change in
this  measurement  since  December  31,  2000.

Capital  Resources
------------------

The  Company  and  Bank  are  subject to various regulatory capital requirements
administered  by  the  federal banking agencies. Failure to meet minimum capital
requirements  can  initiate  certain  mandatory  -  and  possibly  additional
discretionary  -  actions by regulators that, if undertaken, could have a direct
material  effect on the Company's and Bank's financial statements. Under capital
adequacy  guidelines  and the regulatory framework for prompt corrective action,
the  Company  and  Bank  must  meet  specific  capital  guidelines  that involve
quantitative  measures  of  the  Company's  and  Bank's assets, liabilities, and
certain  off-balance-sheet  items  calculated  under  regulatory  accounting
practices. The Company's and Bank's capital amounts and classifications are also
subject  to  qualitative  judgments  by  regulators  about  components,  risk
weightings,  and  other factors. Quantitative measures established by regulation
to  ensure  capital  adequacy  require  the Company and Bank to maintain minimum
amounts  and  ratios.

                                                                        Page  12
<PAGE>

As  of  September  30, 2001, the most recent notification from the Office of the
Comptroller  of  the  Currency  categorized the Bank as "adequately" capitalized
under  the  regulatory  framework  for  prompt  corrective  action.  This
classification  is lower than "well" capitalized, the categorization of the Bank
last  quarter.  As  previously  reported,  the  Bank's  asset growth in 2001 was
anticipated  to exceed its capital formation, which would result in a continuing
trend  towards  declining  capital  ratios.  The  decline  from  well-  to
adequately-capitalized  primarily  has  two impacts on the Bank and Company: (1)
FDIC  insurance is expected to increase on an annual basis by approximately $0.1
million.  (2)  For  the Bank to renew or reissue brokered time deposits, it will
be  required  to  obtain  approval  from  the FDIC.  Management does not believe
either  of  these  items  will materially impact the Company or Bank's financial
condition,  operations  or  liquidity.

Allowance  for  Loan  Losses  and  Non-Performing  Assets
---------------------------------------------------------

Allowance  for  Loan  Losses
----------------------------

The  allowance  for  loan  losses  is  a  valuation reserve available for losses
incurred  or  inherent  in  the  loan  portfolio and other extensions of credit.
Credit  losses  arise primarily from the loan portfolio, but may also be derived
from  other credit-related sources including commitments and other extensions of
credit,  guarantees  and  standby  letters  of credit. Additions are made to the
allowance  through periodic provisions, which are charged to expense. All losses
of  principal are charged to the allowance when incurred or when a determination
is  made that a loss is expected. Subsequent recoveries, if any, are credited to
the  allowance.

A  process has been established to assess the adequacy of the allowance for loan
losses  and  to  identify the risks inherent in the loan portfolio. This process
consists of the identification of specific reserves for identified problem loans
and  the  calculation of general reserves, which is a formula-driven allocation.
Specific reserves are determined through assessment of the borrower's ability to
repay  and the fair value of the underlying collateral, for collateral dependent
loans, for each non-performing loan. If the carrying value of a loan exceeds the
discounted  expected  cash  flows or the value of the underlying collateral, the
excess  is  specifically reserved or charged off. The level of specific reserves
is  generally  the  smallest  component  of  the  allowance  for  loan  losses.

The  calculation  of  the  general reserve involves several steps. An historical
loss  factor  is  applied to each loan and unused commitment by business segment
and  loan  classification.  The  historical  loss factors are calculated using a
loan-by-loan,  trailing  eight  quarter  loss  migration analysis for commercial
loans.  For  all  other  loans  a  portfolio-wide,  trailing  eight quarter loss
migration  analysis  is  used.  Adjustments are then made to the historical loss
factors  based  on  quantitative objective elements (delinquency, non-performing
assets, classified/criticized loan trends, charge-offs, concentrations of credit
and  recoveries,  etc.)  and subjective elements (economic conditions, portfolio
growth,  portfolio  management,  credit policy, and others). This methodology is
applied  to  the  commercial,  residential  mortgage,  and  consumer portfolios.

Changes  in  the  allowance  for  loan  losses  for the nine-month periods ended
September  30,  2001  and  2000  follow  (dollars  in  thousands):
<TABLE>

<CAPTION>



                                                           September 30,
                                                     ------------------------
                                                          2001         2000
                                                     ---------------  -------

                                                  <c>              <c>
Balance at beginning of period                       $        4,712   $4,136
Provision for loan losses                                     1,177      828
Loans charged off                                              (797)    (596)
Recoveries on loans previously charged off                      264      416
                                                     ---------------  -------
Balance at end of period                             $        5,356   $4,784
                                                     ===============  =======

Allowance as a percentage of total period end loans            1.04%    1.05%
                                                     ===============  =======

Allowance as a percentage of non performing loans             122.2%   128.6%
                                                     ===============  =======
</TABLE>



                                                                        Page  13
<PAGE>

The increase in the provision for loan losses for the year to date 2001 from the
year  to date 2000 is related to a combination of an increase in net-charge-offs
over  2000 (as seen in the table above) and loan portfolio growth.  The increase
in the allowance for loan losses from $4.8 million at September 30, 2000 to $5.4
million  at  September  30,  2001  is  due  to  overall  loan  portfolio growth.

At  September  30,  2001,  the  recorded investment in loans that are considered
impaired  totaled  $2.3 million as compared to $3.2 million at December 31, 2000
and  $3.1  million  at  September  30, 2000.  The average recorded investment in
impaired  loans  during the nine-month periods ended September 30, 2001 and 2000
were  approximately $2.6 million and $2.7 million, respectively.  For those same
periods  interest  income  recognized  on  impaired  loans  was  not  material.

Total  non-performing  loans  increased  over  the  twelve-month  period by $0.7
million  to  $4.4  million  at September 30, 2001 as compared to $3.7 million at
September  30,  2000. The increase came primarily from commercial related assets
in  the  "past  due  90  days and more and accruing" category and a reduction in
"loans  in non-accrual status" category.  Non-performing loans represent .85% of
the  total loan portfolio at September 30, 2001 as compared to .81% at September
30,  2000.

At September 30, 2001, other real estate owned consisted of four commercial real
estate  parcels, totaling $1.6 million.  Three are the same parcels that were in
other  real  estate  owned at September 30, 2000 and one was added in July 2001.
Management  continues  efforts  to  liquidate  these  assets.

Non-Performing  Assets
<TABLE>

<CAPTION>

                              Non-Performing Assets
                             (Dollars in thousands)


                                                       September 30,
                                                ------------------------
                                                     2001         2000
                                                ---------------  -------

                                             <c>              <c>
Loans past due 90 days or more and accruing
Commercial, financial & agricultural            $        1,046   $  266
Real estate-commercial                                     830       40
Real estate-residential                                     59      114
Consumer                                                   149      176
                                                ---------------  -------
Total past due 90 days or more and
  accruing                                               2,084      596
                                                ---------------  -------

Loans in non-accrual status
Commercial, financial & agricultural                     1,218      963
Real estate-commercial                                     898    1,897
Real estate-residential                                    183      262
                                                ---------------  -------
Total non-accrual loans                                  2,299    3,122
                                                ---------------  -------
Total non-performing loans                               4,383    3,718
                                                ---------------  -------

Other real estate owned - commercial                     1,621    1,606
                                                ---------------  -------

Total non-performing assets                     $        6,004   $5,324
                                                ===============  =======

Non performing loans to total period-end loans            0.85%    0.81%
                                                ===============  =======

Non performing assets to total period-end
  loans and other real estate                             1.17%    1.16%
                                                ===============  =======

<FN>

The  Company  has  no  restructured  loans.
</TABLE>



                                                                        Page  14
<PAGE>

New  Accounting  Pronouncements
-------------------------------

In August, 2001 the Financial Accounting Standards Board (FASB) issued Statement
144,  "Accounting  for  the  Impairment or Disposal of Long-Lived Assets," which
replaced  FASB  Statement  No. 121, "Accounting for the Impairment of Long-Lived
Assets  and  for  Long-Lived  Assets to be Disposed Of."  Statement 144 requires
long-lived  assets  for sale or disposal to be measured at the lower of carrying
amount  or  fair  value  less  costs  to  sell,  whether  reported in continuing
operations  or  in  discontinued operations.  Therefore, discontinued operations
will  no  longer  be  measured  at  net  realizable value or include amounts for
operating  losses  that  have not yet occurred.  The Statement also broadens the
reporting  of  discontinued  operations.  The  provisions  of  statement 144 are
effective  for  the  Company  in  2002.  Its  impact  on  the  Company cannot be
determined,  and  will  be  dependent  upon any future asset disposal decisions.


In  June,  2001 the Financial Accounting Standards Board issued three accounting
standards:

     Statement  141,  "Business Combinations," requires that the purchase method
of  accounting  be  used  for all business combinations initiated after June 30,
2001.  Use of the pooling-of-interests method will be prohibited. Because of its
prospective  adoption,  the  standard  had  no impact on the Company's financial
condition  or  results  of  operations through June 30, 2001.  Its impact on the
Company  will  be  dependent  upon  future  business  combinations,  if  any.

     Statement  142,  "Goodwill  and  Other  Intangible  Assets,"  changes  the
accounting  for  goodwill  from  an  amortization  method  to an impairment-only
approach.  Thus,  amortization  of goodwill, including goodwill recorded in past
business  combinations,  will cease upon adoption of this standard on January 1,
2002.  At  June  30, 2001, the Company had less than $0.1 million in unamortized
goodwill,  most  of  which  will  be  amortized  by  December  31,  2001.

     Statement  143,  "Accounting  for  Asset  Retirement Obligations," requires
entities  to  record  the  fair  value  of  a  liability for an asset retirement
obligation  in the period in which it is incurred and accrete the liability over
time.  Upon settlement of the liability, an entity either settles the obligation
for its recorded amount or incurs a gain or loss upon settlement.  The standard,
effective  for  the  Company's  2003  fiscal year, is not expected to impact the
Company's  financial  position  or  results  of  operations.


























                                                                        Page  15
<PAGE>

PART  II  --  OTHER  INFORMATION

                CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES


Item  1.  Legal  proceedings

None

Item  2.  Changes  in  securities  and  use  of  proceeds

None

Item  3.  Defaults  upon  senior  securities

None

Item  4.  Submission  of  matters  to  a  vote  of  security  holders

      None

Item  5.  Other  information

None

Item  6.  Exhibits  and  reports  on  Form  8-K

      (a)Exhibits

  (3.i.)  Certificate  of  Incorporation,  of  the  Registrant,  as  amended

 (3.ii.)  By-laws  of  the  Registrant,  as  amended

    (27)  Financial  Data  Schedule

    (a)  Reports  on  Form  8-K
None
























                                                                       Page  16
<PAGE>

                                   SIGNATURES

                CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES


      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.



          CANANDAIGUA  NATIONAL  CORPORATION
          ----------------------------------
                                       (Registrant)



               November 13, 2001          /s/ George W. Hamlin, IV
               -----------------          ------------------------
                  Date          George W. Hamlin, IV, President


                November 13, 2001          /s/ Gregory S. MacKay
                -----------------          ---------------------
                   Date          Gregory S. MacKay, Treasurer






































                                                                        Page  17
<PAGE>





INDEX  OF  EXHIBITS

Exhibit

(3.i.)    Certificate  of  Incorporation,  of the        Exhibit A on Form 10-K
            Registrant,  as  amended                     for  the  year  ended
                                                         December 31, 1994

(3.ii.)   By-laws  of  the Registrant,                   Exhibits B on Form 10-K
            as  amended                                  for  the  year  ended
                                                         December 31, 1994

 (27)     Financial  Data  Schedule















































                                                                        Page  18
<PAGE>