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  June  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


  Indicate  the  number of shares outstanding of each of the issuer's classes of
common  stock,  as  of  the  latest  practical  date.

                    Class                     Outstanding  at  August  1,  2001
                    -----                     ---------------------------------
             Common  stock,  $50.00  par                  158,737















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

                                  JUNE 30, 2001

PART  I -- FINANCIAL INFORMATION                                            Page
                                                                            ----

Item  1.  Financial  Statements  (Unaudited)

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

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

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

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

Notes  to  financial  statements
  at  June 30, 2001.                                                           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                                        11
    ----------------------------------


PART  II  --  OTHER  INFORMATION

Item  1.  Legal Proceedings                                                   15
Item  2.  Changes in Securities                                               15
Item  3.  Defaults Upon Senior Securities                                     15
Item  4.  Submission of Matters to a Vote of Security Holders                 15
Item  5.  Other Information                                                   15
Item  6.  Exhibits and Reports on Form 8-K                                    15

SIGNATURES                                                                    16

EXHIBITS                                                                      17
















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

<CAPTION>

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


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

                                                           <c>         <c>

Cash and due from banks                                       $  29,253         28,157
Interest-bearing deposits with other financial institutions          14             97
Securities:
  - Available for sale, at fair value                               474            450
  - Held-to-maturity (fair value of $106,530 in 2001 and
      $80,881 in 2000)                                          105,302         80,492
Loans:
  Commercial, financial & agricultural                           74,441         65,324
  Commercial mortgage                                           213,285        195,153
  Residential mortgage                                           84,826         81,413
  Consumer-auto indirect                                         91,380         93,746
  Consumer-other                                                 22,294         20,214
  Other                                                             952          1,833
  Loans held for sale                                             6,788          2,288
                                                              ----------  -------------
    Total loans                                                 493,966        459,971
  Less:  Allowance for loan losses                               (5,075)        (4,712)
                                                              ----------  -------------
    Loans - net                                                 488,891        455,259
Premises and equipment - net                                     16,713         15,949
Accrued interest receivable                                       3,165          3,371
Federal Home Loan Bank stock and Federal Reserve Bank stock       3,032          3,032
Other assets                                                      9,219          7,930
                                                              ----------  -------------
        Total Assets                                          $ 656,063        594,737
                                                              ==========  =============


<FN>

                                          (Continued)
</TABLE>













                                                                      Page  1
<PAGE>
<TABLE>

<CAPTION>

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



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

                                                         <c>         <c>

Deposits:
  Demand:
    Non-interest bearing                                    $  91,900         87,201
    Interest bearing                                           61,200         53,665
  Savings and money market                                    206,229        162,975
  Time deposits                                               217,096        229,672
                                                            ----------  -------------
        Total deposits                                        576,425        533,513
Borrowings                                                     29,321         12,644
Accrued interest payable and other liabilities                  4,380          4,311
                                                            ----------  -------------
        Total Liabilities                                   $ 610,126        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                                            30,341         28,687
  Treasury stock at cost (3,471 share in 2001 and
    3,476 shares in 2000)                                      (1,268)        (1,268)
  Accumulated other comprehensive income                          222            208
                                                            ----------  -------------
        Total Stockholders' Equity                             45,937         44,269
                                                            ----------  -------------
        Total Liabilities and Stockholders' Equity          $ 656,063        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 six month periods ended June 30, 2001 and 2000 (Unaudited)
                  (dollars in thousands, except per share data)

                                          Three  months  ended  Six  months  ended
                                                   June  30,         June  30,
                                                2001     2000     2001     2000
                                               -------  -------  -------  -------

                                            <c>      <c>      <c>      <c>
Interest income:
  Loans, including fees                        $ 9,532  $ 9,194  $19,281  $17,526
  Securities                                     1,212    1,125    2,367    2,150
  Other                                             12       45       44       47
                                               -------  -------  -------  -------
        Total interest income                   10,756   10,364   21,692   19,723
                                               -------  -------  -------  -------
Interest expense:
  Deposits                                       4,498    4,261    9,302    7,943
  Borrowings                                       105      400      194      816
                                               -------  -------  -------  -------
      Total interest expense                     4,603    4,661    9,496    8,759
                                               -------  -------  -------  -------
      Net interest income                        6,153    5,703   12,196   10,964
Provision for loan losses                          360      308      798      558
                                               -------  -------  -------  -------
      Net interest income after provision for
        loan losses                              5,793    5,395   11,398   10,406
                                               -------  -------  -------  -------

Other income:
  Service charges on deposit accounts            1,158      916    2,236    1,710
  Trust income                                     898      790    1,911    1,622
  Net gain on sale of mortgage loans                23        2       31        3
  Other operating income                           910      601    1,523    1,050
                                               -------  -------  -------  -------
      Total other income                         2,989    2,309    5,701    4,385
                                               -------  -------  -------  -------

Operating expenses:
  Salaries and employee benefits                 3,701    3,519    7,414    7,078
  Occupancy                                      1,309    1,162    2,519    2,217
  Marketing and public relations                   266      229      441      461
  Office supplies, printing and postage            249      228      520      510
  FDIC insurance                                     1       23       50       45
  Other operating expenses                       1,183    1,211    2,437    2,306
                                               -------  -------  -------  -------
      Total operating expenses                   6,709    6,372   13,381   12,617
                                               -------  -------  -------  -------

      Income before income taxes                 2,073    1,332    3,718    2,174
Income taxes                                       618      260    1,104      490
                                               -------  -------  -------  -------
      Net income                               $ 1,455  $ 1,072  $ 2,614  $ 1,684
                                               =======  =======  =======  =======

Basic earnings per share                       $  9.17  $  6.76  $ 16.47  $ 10.63
                                               =======  =======  =======  =======
Diluted earnings per share                     $  9.10  $  6.72  $ 16.36  $ 10.56
                                               =======  =======  =======  =======
<FN>

See  notes  to  financial  statements
</TABLE>













                                                                        Page  3
<PAGE>
<TABLE>

<CAPTION>

                        CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES
                         CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

               For the six month periods ended June 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               -        -         -          -              14       14
    Net income                         -        -     2,614          -               -    2,614
                                                                                         -------
  Total comprehensive
   income                          2,628
                            ------------
  Cash dividend - $6.05
   per share                           -        -      (960)         -               -     (960)
  Sale of 5 shares
   of treasury stock                   -        -         -          -               -        -
                            ------------  -------  ---------  ---------  --------------  -------
Balance at June 30, 2001           8,110    8,532    30,341     (1,268)            222   45,937
                            ============  =======  =========  =========  ==============  =======



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 $4                -        -         -          -              (3)      (3)
    Net income                         -        -     1,684          -               -    1,684
                                                                                         -------
  Total comprehensive
   income                          1,681
                            ------------
  Cash dividend - $5.95
   per share                           -        -      (944)         -               -     (944)
  Sale of 14 shares
   of treasury stock                   -        2         -          5               -        7
                            ------------  -------  ---------  ---------  --------------  -------
Balance at June 30, 2000           8,110    8,508    27,827     (1,343)            119   43,221
                            ============  =======  =========  =========  ==============  =======

<FN>

See  notes  to  financial  statements
</TABLE>




















                                                                        Page  4
<PAGE>
<TABLE>

<CAPTION>

                CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS

       For the six month periods ended June 30, 2001 and 2000 (Unaudited)

                             (dollars in thousands)



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

                                                       <c>         <c>
Cash flow from operating activities:
  Net income                                              $   2,614   $  1,684
  Adjustments to reconcile net income to
    net cash used by operating activities:
    Depreciation, amortization and accretion                    728        945
    Provision for loan losses                                   798        558
    Deferred income taxes                                      (106)      (193)
    Income from minority owned entities                         (33)         -
    Originations of loans held for sale                     (44,749)   (30,220)
    Proceeds from sale of loans held for sale                40,249     27,544
    Increase in accrued interest receivable
      and other assets                                         (218)      (964)
    Increase (decrease) in accrued interest payable and
     other liabilities                                           69       (216)
                                                          ----------  ---------
      Net cash used by operating activities                    (648)      (862)
                                                          ----------  ---------

Cash flow from investing activities:
  Sale of FHLB stock                                              -        550
  Securities held to maturity:
    Proceeds from maturities and calls                       86,138     34,337
    Purchases                                              (110,438)   (40,706)
  Loans originated - net                                    (29,930)   (41,677)
  Fixed asset purchases - net                                (1,927)    (2,459)
  Investment in minority owned entity and others               (817)      (216)
  Cash received from sale of other real estate                    6         13
                                                          ----------  ---------
      Net cash used by investing activities                 (56,968)   (50,158)
                                                          ----------  ---------

Cash flow from financing activities:
  Net increase in demand, savings and money
    market deposits                                          55,488     27,934
  Net increase (decrease) in time deposits                  (12,576)    25,092
  Proceeds from (repayments of) overnight borrowings         17,800        270
  Principal repayments on long-term borrowings               (1,123)    (2,721)
  Proceeds from sale of treasury stock                            -          7
  Dividends paid                                               (960)      (944)
                                                          ----------  ---------
      Net cash provided by financing activities              58,629     49,638
                                                          ----------  ---------

      Net increase (decrease) in cash & cash equivalents      1,013     (1,382)
  Cash & cash equivalents - beginning of period              28,254     26,834
                                                          ----------  ---------
  Cash & cash equivalents - end of period                 $  29,267   $ 25,452
                                                          ==========  =========

Supplemental disclosures of cash flow information:
  Cash paid during the period for:
    Interest                                              $   9,378   $  8,260
                                                          ==========  =========
    Income taxes                                          $   1,174   $    719
                                                          ==========  =========

<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 six-month periods ended June
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  six-month  periods  ended  June 30, 2001 and 2000 follow (dollars in
thousands,  except  share  data):
<TABLE>

<CAPTION>



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

                                             <c>       <c>
Basic Earnings Per Share:
  Net income applicable to common shareholders  $  1,455  $  1,072
  Weighted average common shares outstanding     158,734   158,495
                                                --------  --------
      Basic earnings per share:                 $   9.17  $   6.76
                                                ========  ========


Diluted Earnings Per Share:
  Net income applicable to common shareholders  $  1,455  $  1,072
  Weighted average common shares outstanding     158,734   158,495
  Effect of assumed exercise of stock options      1,076     1,056
                                                --------  --------
    Total                                        159,810   159,551
                                                --------  --------
      Diluted earnings per share:               $   9.10  $   6.72
                                                ========  ========
</TABLE>










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

<CAPTION>



For the six months ended June 30,                 2001     2000
                                                --------  -------

                                             <c>       <c>
Basic Earnings Per Share:
  Net income applicable to common shareholders  $  2,614    1,684
  Weighted average common shares outstanding     158,733  158,489
                                                --------  -------
      Basic earnings per share:                 $  16.47    10.63
                                                ========  =======


Diluted Earnings Per Share:
  Net income applicable to common shareholders  $  2,614    1,684
  Weighted average common shares outstanding     158,733  158,489
  Effect of assumed exercise of stock options      1,019    1,010
                                                --------  -------
    Total                                        159,752  159,499
                                                --------  -------
      Diluted earnings per share:               $  16.36    10.56
                                                ========  =======

</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 six months ended June 30,   2001    2000
                                   ------  ------

                                <c>     <c>
Net income:
  As reported                      $2,614  $1,684
  Pro forma                         2,449   1,552

Earnings per share:
  As reported:
    Basic                          $16.47  $10.63
    Diluted                         16.36   10.56
  Pro forma:
    Basic                          $15.43  $ 9.79
    Diluted                         15.33    9.72
</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
        ----------------------------

During  the  three  and  six  months ended June 30, 2001, the Company paid $0.03
million and $0.06 million, respectively, from the contract termination liability
accrued  in  the  fourth  quarter  of  2000  related  to  the realignment of the
Company's  credit  card activity.  The balance of the liability at June 30, 2001
was  $0.4  million  and  is  expected  to  be  fully  paid  in  2001.


(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
        June  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  $656.1 million at the end of the first half of
2001.  This  represents a 10.3% increase over year-end 2000 and a 14.5% increase
over  the  June 30, 2000 balance.  Net income grew 55.2% to $2.6 million for the
first  six  months of 2001 compared to $1.7 million for the same period of 2000.
These  results are on budget and are reflective of the growth in earning assets,
offset  by  a  only  a  6.1%  growth  in  operating  expenses  year-on-year.

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

Three  months  ended  June  30,  2001
-------------------------------------

As  of  June  30, 2001, total assets of the Company were $656.1 million, up from
$621.7 million at March 31, 2001. Cash and equivalents increased $2.5 million to
$29.3  million,  due  to  increased  cash  reserve  requirements associated with
deposit  growth.  During the quarter, municipalities continued to increase their
deposits,  resulting  in  a  corresponding  increase  in  the Company's security
portfolio  used  to  collateralize  these  deposits.  Securities  increased $5.1
million to $105.8 million.  Net loans increased $25.9 million to $488.9 million,
and  all  other assets rose $0.1 million to $32.1 million, reflective of earning
asset  and  branch  network  growth.

Total  deposits  at  June 30, 2001 were $576.4 million and were up $12.8 million
from  March  31, 2001. The newest eight offices contributed $14.9 million of the
quarter's  deposit  growth,  while  the  remaining  offices showed a modest $0.9
million  increase.  Additionally,  $3.0  million  of  nationally  marketed  time
deposits  matured  during  the  quarter.  Due  to  the  local  deposit  growth,
management  did  not  renew  these time deposits, but management does anticipate
selling some nationally marketed time deposits in the third quarter of 2001. 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.  Many  municipalities  shifted  balances  from  time deposits to money
market  accounts  following the Company's introduction of a new deposit account.
For  the  quarter, borrowings (primarily from the FHLB) were up $20.1 million to
$29.3  million;  used  to fund loan growth.  Other liabilities increased by $0.1
million  to  $4.4  million,  largely  due  to  bonus  and  retirement  accruals.

Net interest income, accounting for 67% of the Company's revenue, increased $0.5
million  or 7.9% for the quarter over the same quarter in 2000.  For the quarter
ended  June 30, 2001, average interest earning assets increased $56.6 million to
$583.2  million  from  $526.6 million for the 2000 quarter.  The yields on these
assets  were  7.38%  and  7.87%,  respectively;  the  decrease resulting from an
overall decline in general interest rates, following the Federal Reserve Board's
275  basis  point  rate  reduction  since  the  beginning of 2001.  For the same
periods,  average interest bearing liabilities increased $48.1 million to $495.9
million  from  $447.8  million.  Rates  paid on these liabilities were 3.71% and
4.16%,  respectively,  also  reflecting  rate  decreases.  The resulting 4 basis
point  drop in interest spread had a $.1 million negative impact on net interest
income  for  the  quarter  ended June 30, 2001.  The growth in interest earnings
assets  and  interest  bearing liabilities had a $0.6 million positive impact on
net  interest  income.  In the second quarter of 2001 the Company's net interest
margin  declined


                                                                        Page  9
<PAGE>
to  4.22%  from 4.33% for the same quarter in 2000.  This declining trend in net
interest  margin  is  expected  to  continue  through  2001  as declining market
interest  rates are expected to impact earning assets more 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 June 30, 2001 increased $ 0.7 million to $3.0
million  over the same quarter in 2000.  The increase was reflected in 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 and other operating
income-attributed  to  increased  mortgage  banking  originations, reflective of
higher  mortgage  refinancing  activity  due  to  the  lower  rate  environment.
Operating expenses increased $0.3 million or 5.3% for the quarter ended June 30,
2001  to  $6.7  million  versus  $6.4 million for the 2000 second quarter.  This
modest increase compares favorably to year-on-year asset growth of 14.5%.  While
increases  came  in nearly all expense categories, the results of 2000's efforts
to  control  expense growth are now being realized in 2001.  Management believes
expenses  will  continue  to  increase throughout the year, but at a slower rate
than  asset  growth.
The  Company's  quarterly  effective  tax rate was 29.8% in 2001 versus 19.6% 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 20.3% of pre-tax income, while in 2000, non-taxable income
accounted  for 37.1% of pre-tax income. Management anticipates the effective tax
rate  will  remain  near  30%  for  the  rest  of  2001.
Six  months  ended  June  30,  2001
-----------------------------------

Total  assets  of  the Company grew $61.3 million or 10.3% for the first half of
2001.  Cash and equivalents decreased $1.0 million to $29.3 million.  Securities
increased  $24.8  million  to  $105.8  million to allow for collateralization of
municipal  deposits.  Net  loans  increased  $33.6  million to $488.9 million on
strong commercial and mortgage demand, and all other assets rose $1.8 million to
$32.1  million.

Total  deposits  at  June 30, 2001 were $576.4 million and were up $42.9 million
from  December  31,  2000. A substantial portion 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  $16.7  million  to $29.3 million.  Other
liabilities  increased  by  $0.1  million  to  $4.4  million.  The  increase  in
borrowings  partially  funded  securities  and  loan  growth, with the remaining
funding  coming  from  deposit  growth.

For  the  six  months  ended  June  30,  2001,  average interest-earning assets,
increased $62.0 million to $569.4 million from $507.4 million for the 2000 first
half.  The  yields  on  these  assets  were  7.62%  and 7.77%, respectively; the
decline  resulting from overall market rate reductions in 2001 versus 2000.  For
the  same  periods, average interest-bearing liabilities increased $51.0 million
to  $482.5  million from $431.5.  Rates paid on these liabilities were 3.94% and
4.06%,  respectively,  also  reflecting  general  market  rate  decreases.  The
resulting  3  basis  point  drop  in interest spread had a $0.1 million negative
impact  on  net  interest  income  for  the six-months ended June 30, 2001.  The
growth  in  interest earnings assets and interest bearing liabilities had a $1.3
million  positive  impact on net interest income.  In the first half of 2001 the
Company's  net  interest margin declined to 4.28% from 4.32% for the same period
in 2000.  Margin is likely to continue declining over 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.

Other  income  for  the six months ended June 30, 2001 increased $1.3 million to
$5.7 million over the same period in 2000.  The increase came in all categories.
Refer  to  three-month  discussion  above.
Operating  expenses  increased  $0.8 million for the six-month period ended June
30, 2001 to $13.4 million versus $12.6 million for the 2000 first half. Refer to
three-month  discussion  above.

                                                                        Page  10
<PAGE>

The  Company's  effective tax rate was 29.7% in 2001 versus 22.5% 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
six-months  ended  June  30, 2001 the Company generated $1.0 million in net cash
and  equivalents  versus  using  $1.4  million for the same period in 2000.  The
overall  increase  in  cash  and  equivalents  in  2001  is primarily related to
increases  in  customer  deposit  balances.

Net  cash  used  by operating activities was $.06 million in 2001.  In the first
half  of  2000  the  Company  used  $0.9  million of cash and equivalents in its
operating activities.  Both the largest source and use of operating cash in 2001
and  2000  were mortgage-banking activity.  However, activity in 2001 was nearly
50%  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.

Cash  used by investing activities increased in 2001 to $57.0 million from $50.2
million  in  2000.  The  increase  came  from  higher 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.

Cash  provided  by  financing  activities was $58.6 million in 2001 versus $49.6
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  June  30,  2001  residential  mortgage loans with a carrying value of
approximately  $36.5  million were pledged as collateral for the Bank's advances
from  the  Federal  Home Loan Bank. Approximately $8.4 million was available for
additional  borrowing.  Indirect  automobile  loans  with  a  carrying  value of
approximately  $87.1 million were pledged as collateral for a $69.7 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.

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.

                                                                        Page  11
<PAGE>

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  CD's.
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. Continuing 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.


As  of  June  30,  2001,  the  most  recent  notification from the Office of the
Comptroller  of  the Currency categorized the Bank as well-capitalized under the
regulatory  framework  for  prompt corrective action.  However, the Bank's asset
growth in 2001 is anticipated to exceed its capital formation, which will result
in a continuing trend towards declining capital ratios.  Management will closely
monitor  capital  levels  at  the  Bank.







                                                                        Page  12
<PAGE>

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

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

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

<CAPTION>



                                                            June 30,
                                                     -------------------
                                                        2001      2000
                                                     ----------  -------

                                                  <c>         <c>
Balance at beginning of period                       $   4,712   $4,136
Provision for loan losses                                  798      558
Loans charged off                                         (611)    (420)
Recoveries on loans previously charged off                 176      312
                                                     ----------  -------
Balance at end of period                             $   5,075   $4,586
                                                     ==========  =======

Allowance as a percentage of total period end loans       1.03%    1.04%
                                                     ==========  =======

Allowance as a percentage of non performing loans        194.5%   111.3%
                                                     ==========  =======
</TABLE>



The  increase  in  the  provision for loan losses from first half of 2000 to the
first  half  of  2001 is related to the increase in net-chargeoffs over 2000 (as
seen  in  the  table above).  The increase in the allowance for loan losses from
$4.6 million at June 30, 2000 to $5.1 million at June 30, 2001 is due to overall
loan  portfolio  growth.

At  June 30, 2001, the recorded investment in loans that are considered impaired
totaled  $2.4  million as compared to $3.2 million at December 31, 2000 and $3.2
million  at  June  30,  2000.  The average recorded investment in impaired loans
during  the  six-month  periods  ended June 30, 2001 and 2000 were approximately
$2.6  million  and  $2.5 million, respectively.  For those same periods interest
income  recognized  on  impaired  loans  was  not  material.

Total  non-performing  loans  decreased  over  the  twelve-month  period by $1.5
million to $2.6 million at June 30, 2001 as compared to $4.1 million at June 30,
2000.  The  decrease  came  primarily  from  commercial real estate loans and is
mainly  attributable  to two relationships.  Non-performing loans represent .53%
of  the  total  loan  portfolio at June 30, 2001 as compared to .93% at June 30,
2000.

At  June  30,  2001,  other real estate owned consisted of three commercial real
estate  parcels,  totaling  $1.5 million.  These are the same three parcels that
were  in other real estate owned at June 30, 2000.  The balance reduction is due
to  cash  proceeds  from  sales  of  a  portion of the properties and from lease
payments.  Management  continues  efforts  to  liquidate  these  assets.

















                                                                        Page  13
<PAGE>

Non-Performing  Assets
<TABLE>

<CAPTION>

                              Non-Performing Assets
                             (Dollars in thousands)


                                                      June 30,
                                                -------------------
                                                   2001      2000
                                                ----------  -------

                                             <c>         <c>
Loans past due 90 days or more and accruing
Commercial, financial & agricultural            $      58   $    -
Real estate-commercial                                  -      786
Real estate-residential                                 -        -
Consumer                                               97      116
                                                ----------  -------
Total past due 90 days or more and
  accruing                                            155      902
                                                ----------  -------

Loans in non-accrual status
Commercial, financial & agricultural                1,023      935
Real estate-commercial                              1,156    1,919
Real estate-residential                               275      365
                                                ----------  -------
Total non-accrual loans                             2,454    3,219
                                                ----------  -------
Total non-performing loans                          2,609    4,121
                                                ----------  -------

Other real estate owned - commercial                1,460    1,638
                                                ----------  -------

Total non-performing assets                     $   4,069   $5,759
                                                ==========  =======

Non performing loans to total period-end loans       0.53%    0.93%
                                                ==========  =======

Non performing assets to total period-end
  loans and other real estate                        0.82%    1.28%
                                                ==========  =======

<FN>

The  Company  has  no  restructured  loans.
</TABLE>



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

     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  14
<PAGE>

PART  II  --  OTHER  INFORMATION

                CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES


Item  1.  Legal  proceedings

None

Item  2.  Changes  in  securities

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  15
<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)



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


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






































                                                                        Page  16
<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
                                                       December  31,  1994
 (27)     Financial  Data  Schedule















































                                                                        Page  17
<PAGE>