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,  1999
                                    ---------------

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  2,  1999
                    -----                     ---------------------------------
             Common  stock,  $50.00  par                  159,073
















<PAGE>
This  quarterly  report contains certain "forward-looking statements" covered by
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, as well as discussion regarding the "Year 2000
issue,"  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.





























<PAGE>
                CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES

                               INDEX TO FORM 10-Q

                                  JUNE 30, 1999

PART  I -- FINANCIAL INFORMATION                                            Page
                                                                            ----

Item  1.  Financial  Statements  (Unaudited)

Condensed  consolidated  balance  sheets  at  June  30,  1999
  and  December 31, 1998.                                                      1

Condensed  consolidated  statements  of  income  for  the  three
  month  and six month periods ended June 30, 1999 and 1998.                   3

Condensed  consolidated  statements  of  stockholders'  equity
  for  the six month periods ended June 30, 1999 and 1998.                     4

Condensed  consolidated  statements  of  cash  flows
  for  the six month periods ended June 30, 1999 and 1998.                     5

Notes  to  condensed  consolidated  financial  statements
  at  June 30, 1999.                                                           6

Item  2.  Management's  Discussion  and  Analysis  of  Financial
  Condition  and Results of Operations                                         8

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                                                   17
Item  2.  Changes in Securities and Use of Proceeds                           17
Item  3.  Defaults Upon Senior Securities                                     17
Item  4.  Submission of Matters to a Vote of Security Holders                 17
Item  5.  Other Information                                                   17
Item  6.  Exhibits and Reports on Form 8-K                                    17

SIGNATURES                                                                   18

EXHIBITS                                                                     19















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

<CAPTION>

                   CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES
                         CONDENSED CONSOLIDATED BALANCE SHEETS
                    June 30, 1999 and December 31, 1998 (Unaudited)
                    (dollars in thousands, except per share amounts)


                                                               June 30,   December 31,

Assets                                                           1999         1998
------------------------------------------------------------  ----------  -------------
<S>                                                           <C>         <C>

Cash and due from banks                                       $  21,884         23,892
Interest-bearing deposits with other financial institutions         106            314
Securities:
  - Available for sale, at fair value                               547            437
  - Held-to-maturity (fair value of $73,629 in 1999 and
    $71,850 in 1998)                                             73,678         72,479
Loans:
  Commercial, financial & agricultural                           49,995         43,260
  Commercial mortgage                                           104,035         83,771
  Residential mortgage                                           68,991         76,130
  Consumer-indirect                                              94,141         84,370
  Consumer-other                                                 22,421         17,753
  Other                                                           1,562          3,516
  Loans held for sale                                             2,959          2,969
                                                              ----------  -------------
    Total loans                                                 344,104        311,769
  Less:  Allowance for loan losses                               (3,591)        (3,283)
                                                              ----------  -------------
    Loans - net                                                 340,513        308,486
Premises and equipment - net                                     12,771         11,468
Accrued interest receivable                                       2,265          2,244
Federal Home Loan Bank stock and Federal Reserve Bank stock       3,548          3,548
Other assets                                                      6,395          5,179
                                                              ----------  -------------
        Total Assets                                          $ 461,707        428,047
                                                              ==========  =============


<FN>

                                          (Continued)
</TABLE>












                                                                      Page  1
<PAGE>
<TABLE>

<CAPTION>

                  CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES
                        CONDENSED CONSOLIDATED BALANCE SHEETS
                   June 30, 1999 and December 31, 1998 (Unaudited)
                   (dollars in thousands, except per share amounts)


                                                             June 30,   December 31,
                                                            ----------
Liabilities and Stockholders' Equity                           1999         1998
----------------------------------------------------------  ----------  -------------
<S>                                                         <C>         <C>

Deposits:
  Demand
    Non-interest bearing                                    $  63,546         64,368
    Interest bearing                                           70,357         56,877
  Savings and money market                                    119,903        109,316
  Time deposits                                               140,287        145,946
                                                            ----------  -------------
        Total deposits                                        394,093        376,507
FHLB advances                                                  21,931          7,142
Accrued interest payable and other liabilities                  3,473          1,920
                                                            ----------  -------------
        Total Liabilities                                   $ 419,497        385,569
                                                            ----------  -------------


Stockholders' Equity:
  Common stock, $50 par value; 240,000 shares authorized;
    162,208 shares issued in 1999 and 1998                      8,110          8,110
  Additional paid in capital                                    8,489          8,489
  Retained earnings                                            26,576         26,569
  Treasury stock at cost (3,135 shares in 1999 and 2,479
    shares in 1998)                                            (1,095)          (835)
  Accumulated other comprehensive income                          130            145
                                                            ----------  -------------
        Total Stockholders' Equity                             42,210         42,478
                                                            ----------  -------------
        Total Liabilities and Stockholders' Equity          $ 461,707        428,047
                                                            ==========  =============
<FN>

See  notes  to  condensed  consolidated  financial  statements.
</TABLE>


















                                                                        Page  2
<PAGE>

<TABLE>

<CAPTION>

                CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES
                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME

      For the three month and six month periods ended June 30, 1999 and 1998
                                   (Unaudited)

                (dollars in thousands, except per share amounts)

                                      Three months     Six months
                                          ended          ended
                                        June  30,       June  30,
                                        1999   1998    1999     1998
                                       ------  -----  -------  ------
<S>                                    <C>     <C>    <C>      <C>
Interest income:
  Loans, including fees                $6,748  6,285  $13,164  13,116
  Securities                              940    995    1,887   1,989
  Federal funds sold and other             83      5      158      38
                                       ------  -----  -------  ------
        Total interest income           7,771  7,285   15,209  15,143
                                       ------  -----  -------  ------
Interest expense:
  Deposits                              3,033  2,587    5,962   5,024
  Borrowings                               95    465      175   1,138
                                       ------  -----  -------  ------
      Total interest expense            3,128  3,052    6,137   6,162
                                       ------  -----  -------  ------
      Net interest income               4,643  4,233    9,072   8,981
Provision for loan losses                 446    106      496     429
                                       ------  -----  -------  ------
      Net interest income after
        provision for loan losses       4,197  4,127    8,576   8,552
                                       ------  -----  -------  ------

Other income:
  Service charges on deposit accounts     602    466    1,102     777
  Trust income                            648    628    1,348   1,139
  Net gain (loss) on sale of
    mortgages                              33      7       76      22
  Other operating income                  444    462      820     856
                                       ------  -----  -------  ------
      Total other income                1,727  1,563    3,346   2,794
                                       ------  -----  -------  ------

Operating expenses:
  Salaries & employee benefits          3,146  2,297    6,139   4,679
  Occupancy expense                       935    783    1,771   1,523
  FDIC insurance                           11      -       21      20
  Marketing and public relations          291    112      544     187
  Office supplies, printing and
    postage                               256    196      488     355
  Professional                             86     14      208     111
  Other operating expenses                696    933    1,392   1,696
                                       ------  -----  -------  ------
      Total operating expenses          5,421  4,335   10,563   8,571
                                       ------  -----  -------  ------

      Income before income taxes          503  1,355    1,359   2,775
Income taxes                              159    566      434     975
                                       ------  -----  -------  ------
      Net income                       $  344    789  $   925   1,800
                                       ======  =====  =======  ======

Basic earnings per share               $ 2.16   4.92  $  5.80   11.21
                                       ======  =====  =======  ======
Diluted earnings per share             $ 2.15   4.92  $  5.79   11.21
                                       ======  =====  =======  ======
<FN>


See  notes  to  condensed  consolidated  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, 1999 and 1998 (Unaudited)

                        (dollars in thousands, except per share amounts)


                                                                         Accumulated
                                        Additional                          Other
                               Common     Paid in  Retained   Treasury   Comprehensive
                               Stock      Capital  Earnings     Stock        Income       Total
                            ------------  -------  ---------  ---------  --------------  -------
<S>                         <C>           <C>      <C>        <C>        <C>             <C>
Balance at January 1, 1999  $      8,110    8,489    26,569       (835)            145   42,478
  Comprehensive income:
    Change in unrealized
     gain on securities
     available for sale,
     net of taxes of $14               -        -         -          -             (15)     (15)
    Net income                         -        -       925          -               -      925
                                                                                         -------
  Total comprehensive
   income                            910
                            ------------
  Cash dividend - $5.75
   per share                           -        -      (918)         -               -     (918)
  Purchase of 672 shares
   of treasury stock                   -        -         -       (265)              -     (265)
  Sale of 16 shares
   of treasury stock                   -        -         -          5               -        5
                            ------------  -------  ---------  ---------  --------------  -------
Balance at June 30, 1999           8,110    8,489    26,576     (1,095)            130   42,210
                            ============  =======  =========  =========  ==============  =======



Balance at January 1, 1998  $      8,110    8,489    24,742       (528)            119   40,932
  Comprehensive income:
    Change in unrealized
     gain on securities
     available for sale,
     net of taxes of $15               -        -         -          -              23       23
    Net income                         -        -     1,800          -               -    1,800
                                                                                         -------
  Total comprehensive
   income                          1,823
                            ------------
  Cash dividend - $5.50
   per share                           -        -      (883)         -               -     (883)
Purchase of 95 shares
of treasury stock                      -        -         -        (34)              -      (34)
Sale of 10 shares
of treasury stock                      -        -         -          3               -        3
                            ------------  -------  ---------  ---------  --------------  -------
Balance at June 30, 1998           8,110    8,489    25,659       (559)            142   41,841
                            ------------  -------  ---------  ---------  --------------  -------

<FN>

See  notes  to  condensed  consolidated  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, 1999 and 1998 (Unaudited)

                             (dollars in thousands)



                                                            1999       1998
                                                          ---------  --------
<S>                                                       <C>        <C>
Cash flow from operating activities:
  Net income                                              $    925     1,800
  Adjustments to reconcile net income to
    net cash from operating activities:
    Depreciation and amortization                              972       937
    Provision for loan losses                                  496       429
    Deferred income taxes                                     (132)     (121)
    Originations of loans held for sale                    (62,481)  (46,437)
    Proceeds from sale of loans held for sale               62,491    46,426
    (Increase) decrease in accrued interest receivable
      and other assets                                        (690)     (441)
    Increase in accrued interest payable and
     other liabilities                                       1,553       159
                                                          ---------  --------
      Net cash provided by operating activities              3,134     2,752
                                                          ---------  --------

Cash flow from investing activities:
  Purchase of FHLB stock                                         -      (430)
  Securities held to maturity:
    Proceeds from maturities and calls of securities        17,380    16,130
    Purchases of securities                                (18,635)  (16,165)
  Loans (originated) repaid, net                           (33,248)    1,162
  Fixed asset purchases - net                               (2,264)     (801)
  Investment in minority owned subsidiary                     (158)     (495)
  Proceeds from sale of other real estate                      378       911
                                                          ---------  --------
      Net cash provided (used) by investing activities     (36,547)      312
                                                          ---------  --------

Cash flow from financing activities:
  Net increase in demand, savings and short-
    term deposits                                           23,245     4,046
  Net increase (decrease) in time deposits                  (5,659)    7,251
  Proceeds from FHLB advances                               15,800     7,900
  Principal repayments on FHLB advances                     (1,011)  (20,012)
  Proceeds from sale of treasury stock                           5         3
  Purchase of treasury stock                                  (265)      (34)
  Dividends paid                                              (918)     (883)
                                                          ---------  --------
      Net cash provided (used) by financing activities      31,197    (1,729)
                                                          ---------  --------

      Net increase (decrease) in cash & cash equivalents    (2,216)    1,335
  Cash & cash equivalents - beginning of period             24,206    19,647
                                                          ---------  --------
  Cash & cash equivalents - end of period                 $ 21,990    20,982
                                                          =========  ========

Supplemental disclosures of cash flow information:
  Cash paid during the period for:
    Interest                                              $  6,123     6,147
                                                          =========  ========
    Income taxes                                          $    126     1,009
                                                          =========  ========
Supplemental disclosure of non-cash investing
 Activity:
  Additions to other real estate acquired through
   foreclosure, net of loans to facilitate sales          $    715         -
                                                          =========  ========
<FN>

See  notes  to  condensed  consolidated  financial  statements.
</TABLE>





                                                 Page  5
<PAGE>


                CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES
        Notes to Condensed Consolidated 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, 1998 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-month and six-month periods
ended  June  30,  1999 are not necessarily indicative of the results that may be
expected  for the year ending December 31, 1999.  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, 1998.

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


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

On  July  14, 1999 the Board of Directors declared a semi-annual $5.75 per share
dividend  on common stock, payable August 2, 1999 to shareholders of record July
14,  1999.  The  Company  paid  a semi-annual $5.75 per share dividend on common
stock  on  January  13, 1999, payable February 1, 1999 to shareholders of record
January  13,  1999.

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

Basic  earnings  per  common  share  is calculated by dividing net income by the
weighted  average  number  of  shares  outstanding  during  the period.  Diluted
earnings  per  share  includes  the  maximum  dilutive  effect  of stock options
issueable  upon conversion of the options. The calculations of basic and diluted
earnings  per  share  follow  (income  in  thousands):
<TABLE>

<CAPTION>



                                                  Net    Average   Per
                                                Income   Shares   Share
                                                -------  -------  ------
For the three months ended June 30, 1999
<S>                                             <C>      <C>      <C>
Basic earnings per share:
  Net income applicable to common shareholders  $   344  159,245  $ 2.16
                                                                  ======
  Effect of assumed exercise of stock options         -      502
                                                -------  -------
Diluted earnings per share:
  Income available for common shareholders and
    assumed exercise of stock options           $   344  159,747  $ 2.15
                                                                  ======

For the three months ended June 30, 1998

Basic earnings per share:
  Net income applicable to common shareholders  $   789  160,493  $ 4.92
                                                                  ======
  Effect of assumed exercise of stock options         -        -
                                                -------  -------
Diluted earnings per share:
  Income available for common shareholders and
    assumed exercise of stock options           $   789  160,493  $ 4.92
                                                                  ======
</TABLE>




                                                 Page  6
<PAGE>
<TABLE>

<CAPTION>




                                                  Net    Average   Per
                                                Income   Shares   Share
                                                -------  -------  ------

For the six months ended June 30, 1999
<S>                                             <C>      <C>      <C>
Basic earnings per share:
  Net income applicable to common shareholders  $   925  159,401  $ 5.80
                                                                  ======
  Effect of assumed exercise of stock options         -      251
                                                -------  -------
Diluted earnings per share:
  Income available for common shareholders and
    assumed exercise of stock options           $   925  159,652  $ 5.79
                                                                  ======

For the six months ended June 30, 1998

Basic earnings per share:
  Net income applicable to common shareholders  $ 1,800  160,528  $11.21
                                                                  ======
  Effect of assumed exercise of stock options         -        -
                                                -------  -------
Diluted earnings per share:
  Income available for common shareholders and
    assumed exercise of stock options           $ 1,800  160,528  $11.21
                                                                  ======
</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.  At its March 1999
meeting,  the  Board  of  directors  granted,  effective  January 1, 1999, 4,571
non-qualified  options  to  certain  employees.  3,210  options  were granted in
replacement  of the future appreciation of previously granted Stock Appreciation
Rights  and  Phantom  Stock  Awards.  The  remaining  options  were  granted  to
management  under  the  Company's  incentive  compensation  plan  for  1998's
performance.  The options were granted at the estimated fair value of the common
stock  on  the  grant  date.  The options are exerciseable at times varying from
five  years  to  seventeen  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 stock options
in  the  condensed consolidated statement of income.  Had compensation cost been
determined  on  the fair value at the grant date for this award, consistent with
the  method of FASB Statement No. 123, the Company's net income and earnings per
share  for  the  six month period ended June 30, 1999 would have been reduced to
the  pro  forma  amounts  indicated  below  (net  income  in  thousands):


Net  income:
  As  reported                                      $     925
  Pro  forma                                        $     689
Basic  earnings  per  share
  As  reported                                      $    5.80
  Pro  forma                                        $    4.32



The  per  share weighted average fair value of stock options granted during 1999
of  $76.89, was determined using the Black-Scholes option-pricing model with the
following  weighted  average  assumptions:
<TABLE>

<CAPTION>



<S>                      <C>
Expected dividend yield        3.09%
Risk free interest rate        4.92%
Expected life            12.9 years
Volatility                    14.73%
</TABLE>



                                                Page  7
<PAGE>


(5)     New  Accounting  Pronouncement
        ------------------------------

In  June  1999  the  Financial Accounting Standards Board deferred the effective
date  of  FASB Statement No. 133 entitled "Accounting for Derivative Instruments
and  Hedging  Activities"  for  one  year.  Statement  No.  133  establishes
comprehensive  accounting  and reporting requirements for derivative instruments
and  hedging  activities.  The  statement  requires  companies  to recognize all
derivatives  as  either  assets or liabilities, with the instruments measured at
fair  value.  The accounting for gains and losses resulting from changes in fair
value of the derivative instrument depends on the intended use of the derivative
and  the type of risk being hedged.  The statement's effective date was deferred
in  June  1999  by FASB and is now effective for the Company for fiscal quarters
beginning  January  1,  2001.  Earlier  adoption is still permitted.  Management
anticipates adopting the provision of this statement in 2001, however its impact
has  not  yet  been  evaluated.



Item  2. Management's Discussion and Analysis of Financial Condition and Results
of  Operations June  30,  1999

The  following  is  management's  discussion and analysis of certain significant
factors  which  have  affected  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, 1998
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  -  President's  Letter  to  Shareholders
--------------------------------------------------

"August  2,  1999

To  Our  Shareholders:

     For  the  first  half of 1999 I report earnings per share of $5.79 compared
with $11.21 for the previous year.   Despite this performance being half of last
year's  for  the second quarter, year-over-year, it does reconcile to our budget
plan  for  1999  as  being  pretty  much  on  track.   In  my  interim letter to
Shareholders  of  June  7,  1999,  I detailed our progress regarding a number of
initiatives underway to take advantage of market opportunities.  Of course,  all
of these initiatives involve immediate expense with revenues planned to cycle in
six  to  nine  months  later as newly garnered business in the form of loans and
deposits  takes  hold.

     Our  Webster-Penfield location continues to grow in deposits at the rate of
$1  million  a month.   Our storefront in Chili opened on schedule in early June
which is a part of a plaza which will be our permanent home after we gain access
to  the  former  M&T  space in early December for the purposes of remodeling and
establishing  our permanent home in Chili Center.    Our office in Greece opened
in  June on time and is being flooded with new business housed in a splendid and
unique  facility  that we all can be proud of.   We move full speed ahead at our
Irondequoit  location  planning  for  a  mid-August  opening  date.   We  have
identified our temporary and final sites in Honeoye Falls by securing agreements
with  respect  to  both  in  mid-July.   Finally,  we  have  a  letter of intent
regarding  a  facility  in  Perinton  which  will come to fruition in early fall
provided  all  parties  follow  through  with  their  commitments.

     Our  dividend  of $5.75 per share, declared in July of 1999, brings us to a
total  of  $11.50  per  share for the entire year compared with $11.00 for 1998.
This  represents  yet  another  increase  in  our distributions to you, which is
reflective  of  our  strong  capital  position  and  growing  prospects.


                                       Page  8
<PAGE>

     As of last month our insurance unit was fully operational with five markets
to  draw  from allowing us to offer a full range of insurance coverages directly
entitling  us  to a full commission.   The labyrinth was far more extensive than
just  getting licensed.  Finding markets and underwriters that would do business
with  a  "brand  new  agency"  turned  out  to run against the traditions of the
insurance  industry  which  would  consider  dealing only with existing agencies
                                                               --------
rather  than  "de  novo"  agencies.   This  completes  the  fourth  leg  of  our
financial  stool  consisting of comprehensive financial services for individuals
whether  they  be  growing  families  or  businesses.

     It  is  absolutely  astonishing to me as I travel with our new and old loan
officers  throughout  our  broadening  marketplace,  how  welcomed we are as the
locally owned, full service financial institution which is, as well, a community
bank.   We  have just concluded a three day strategic planning session where all
our current initiatives were reviewed and a  number of new initiatives discussed
with over two dozen of our key staff and officers whose job it is to execute our
Strategic  Plan.   I  am  indeed  very  impressed with those recently new to our
company  in  their  enthusiasm and skill level which they bring to our expansion
plans.   Each  of  them identified us and committed to come with us because they
saw  something in our organization and reputation which they strongly identified
with  and continue to be committed to.    This is an endorsement of a sort which
we  take  pride  in  and  which  will  be  the  base  of  our  success.

     My  report  would not be complete without mentioning Congress which, at the
beginning  of  July,  passed  a  financial reform bill in both houses.   Now the
mischief  begins  as  the  two  bills  are  reconciled  in conference committees
throughout the summer.   We are fortunate that the major pieces of our financial
plan  have  been  placed  in  motion  and,  therefore,  by  definition  are
"grandfathered"  regardless  of  what  may transpire in the lobbies of Congress.

     We  are  in  the  9th  year  of  an  economic expansion.   The stock market
continues  to  out  perform  even  the  most  seasoned  expectations.   The
international  situation  seems  to have quieted as the Balkan crisis has passed
and the rest of the world goes through the usual adjustments required of any set
of economies adapting and adjusting to their new circumstances.   Our prospects,
however,  remain bright as our loan pipeline is filled to the top and, if booked
in  a  timely  fashion  during  the  next  quarter,  will  propel  our financial
projections  to  an  on-budget  performance  by  the end of the year as planned.
Even if there are time delays, our prospects remain bright for our expansion and
growth  into  the  next  century.

     Summer  greetings  to  all!

Very  truly  yours,

/s/  George  W.  Hamlin,  IV

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

Three  months  ended  June  30,  1999
-------------------------------------

Asset  growth  during  the second quarter of 1999 increased significantly as the
Company's  expansion  into  the Rochester market took hold. As of June 30, 1999,
total assets of the Company were $461.7 million, up from $432.8 million at March
31,  1999.  Cash  and  equivalents  increased  $2.7  million  to  $22.0 million.
Securities  showed  a  minor  increase  of  $1.1 million to $74.2 million.  Loan
growth  for the quarter exceeded deposit inflows resulting in the liquidation of
federal  funds  during the quarter.  Net loans increased $30.4 million to $340.5
million,  and  all  other  assets  rose  $.7  million  to  $25.0  million.

Total  deposits  at  June 30, 1999 were $394.1 million and were up $11.1 million
from  March 31, 1999.  Our newest community banking offices in Webster/Penfield,
Greece  and  Chili  accounted  for $6.7 million of the quarter's deposit growth.
Deposit  growth  is  coming  from a number of sources, including the Generations
Gold  suite  of accounts, Business Choice Sweep account, demand deposits and "CD
Specials".  Time deposit balances declined mostly due to reductions in municipal
accounts.  For  the  same  period  borrowings from FHLB were up $17.1 million to
$21.9  million  as  loan  growth  outpaced  deposit  growth.  Other  liabilities
increased  by  $.5  million  to  $3.5  million.
                                       Page  9
<PAGE>

The quality of the Company's assets continued to improve during the quarter with
non-performing  loans  less than 1% of total loans at June 30, 1999.  Other real
estate  owned  was  $.4  million higher than at March 31, 1999 due to the Bank's
foreclosure  on  a  commercial  real  estate  loan  formerly  classified  as
non-performing.  As  a  result  of the loan portfolio's growth the provision for
loan  loss  increased to $.4 million for the quarter versus $.05 million for the
first  quarter  of  1999.

Net  income  for  the three-month period ended June 30, 1999 was consistent with
management's  projections at $.3 million as compared to $.8 million for the same
period  in  1998.  Basic earnings per share decreased by $2.76 or 56.1% from the
same  period  and  fully diluted earnings per share decreased by $2.77 or 56.2%.
For  the  three  months  ended  June  30,  1999,  net  interest

income  increased  $.4  million or 9.7% from the same period in 1998, reflecting
the growth in the loan portfolio, offset by their reduced yields following heavy
repricing  activity  and  a  75  basis  point  prime  rate  drop  in  late 1998.

For  the  three  months  ending  June 30, 1999, average interest earning assets,
increased  $18.0  from  March  31,  1999  and  $34.3 million from June 30, 1998.
However,  the  yields on these assets were 7.56%, 7.57% and 7.73%, respectively,
the  decline  resulting  from loan refinancings due to 1998's declining interest
rate  environment.  For  the  same periods, average interest bearing liabilities
increased  $14.2  million  and  $36.3  million.  Rates paid on these liabilities
during  the  same three periods were 3.67%, 3.69% and 4.01%, respectively.  This
17 basis point increase in interest spread for the June 30, 1999 versus June 30,
1998  quarters  is  reflective of both asset and liability yield reductions.  In
the  second quarter of 1999 the Company's net interest margin rose to 4.52% from
4.51%  at March 31, 1999 and 4.49% at June 30, 1998.  The declining trend in net
interest  margin  seen  during  1997  and  most of 1998 seems to be showing some
leveling  off,  particularly  as  the  Company  reduces  its  higher  cost  FHLB
borrowings.  However,  interest spread and margin are not anticipated to rise to
pre-1998 levels as the Company expands into the highly competitive Monroe County
region.  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, 1999 increased $.1 million to $1.7
million  over  the  same quarter in 1998.  The increase was reflected in service
charges,  attributed  increased  transaction  volume  and changes in account fee
structures  and  trust  income,  due  to  growth  in  assets  under  management.

Operating expenses increased $1.1 million for the quarter to $5.4 million versus
$4.3  million  for  the 1998 second quarter.  These increases came in nearly all
expense  categories,  reflecting  growth  in  customers,  employees  and banking
offices.  Marketing  and public relations increased over 200% as a result of the
Company's  television  campaign  begun  in  February  1999.

The Company's effective tax rate for the quarter ended June 30, 1999 declined to
31.6% from 41.8% for the same period of 1998.  The second quarter of 1998 showed
a  higher  than  normal effective rate for the Company due to the recognition of
non-deductible  permanent  differences.


Six  months  ended  June  30,  1999
-----------------------------------

Total  assets  of  the  Company  were  $461.7 million, up from $428.0 million at
December 31, 1998. Cash and equivalents decreased $2.2 million to $22.0 million.
Securities  showed  a minor increase of $1.3 million to $74.2 million. Net loans
increased  $32.0  million  to  $340.5  million,  and  all other assets rose $2.5
million  to  $25.0  million.

Total  deposits  were  up  $17.6  million  from  December  31,  1998,  with
Webster/Penfield,  Greece  and  Chili accounting for $10.5 million of the year's
deposit  growth.  For  the first six months of 1999 borrowings from FHLB were up
$14.8  million  to  $21.9 million as loan growth outpaced deposit growth.  Other
liabilities  increased  by  $1.5  million  to  $3.5  million.


                                          Page  10
<PAGE>

Net  income  for  the  six-month  period ended June 30, 1999 was consistent with
management's projections at $.9 million as compared to $1.8 million for the same
period  in  1998.  Basic earnings per share decreased by $5.41 or 48.3% from the
same  period  and  fully diluted earnings per share decreased by $5.42 or 49.3%.
For  the  six  months  ended  June  30,  1999, net interest income increased $.1
million  or 1.0% from the same period in 1998, reflecting the growth in the loan
portfolio,  offset  by  their  reduced  yields.

For  the  six  months  ending  June  30,  1999, average interest earning assets,
increased  $25.1  million to $402.2 from $377.1 million for the six months ended
June  30,  1998.  However  the  yields  on  these  assets  were 7.56% and 8.03%,
respectively.  For  the six months ended June 30, 1999, average interest bearing
liabilities  increased  $27.1  million  as compared to the comparable prior year
period Rates paid on these liabilities were 3.68% and 4.02%, respectively.  This
13  basis  point  drop  in interest spread for the June 30, 1999 versus June 30,
1998  six-month periods had a $.7 million negative impact on net interest income
for  the six months and was made up by volume growth.  In the first half of 1999
the Company's net interest margin declined to 4.51% from 4.76% at June 30, 1998.
Other  income  for  the  six months ended June 30, 1999 increased $.5 million to
$3.3  million  over  the  same  period  in  1998.  The increase was reflected in
service  charges  and  trust  income.

Operating  expenses  increased  $2.0 million for the six months to $10.6 million
versus  $8.6  million  for the 1998.  These increases came primarily in salaries
and  benefits, occupancy, marketing and public relations, and supplies, printing
and  postage,  reflecting  growth  in  customers, employees and banking offices.

The Company's effective tax rate for the six-months ended June 30, 1999 declined
to  31.9% from 35.1% for the same period of 1998.  The first half of 1998 showed
a  higher  than  normal effective rate for the Company due to the recognition of
non-deductible  permanent  differences.


Liquidity
---------

Liquidity is defined 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, 1999 the Company used $2.2 million in cash and equivalents
versus  generating  $1.3  million  for  the  same  period  in  1998.

Net  cash from operating activities was $3.1 million in 1999 as compared to $2.8
million  in 1998.  Both the largest source and use of operating cash in 1999 and
1998  was  mortgage  banking  activity.

$36.5  million  in  cash was used in 1999 for investing activities (investments,
loans and fixed assets) as opposed to being a minor source in 1998, primarily as
a  result  of  loan  payoffs.

Financing activities provided cash of $31.2 million in 1999 versus using cash of
$1.7  million in 1998.  In both periods, net deposit growth provided the bulk of
the  cash,  yet  in 1999 this was used to fund loans, while in 1998 the cash was
used  to  repay  FHLB  advances.

FHLB  advances remain an important liquidity source for the Company.  With $21.9
million  outstanding  at  June  30,  1999  the  Company had additional borrowing
capacity  from  the  FHLB  of  $20.1  million. Secondarily, the Company opened a
liquidity  source  in 1998 through the sale of its CD's in the national brokered
market, which remains available in 1999.  Cash for growth for the remainder 1999
is  expected  to come from these two sources as well as customer deposits as the
Company  expands  into  Monroe  County.






                                     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 includes senior 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.

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.  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.

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 the Company's interest rate risk profile
since  December  31,  1998.  In  late  June 1999 the Federal Reserve Board (FRB)
raised  its  target  for  the  Federal  Funds  rate  1/4%, which was immediately
followed  by  a  1/4%  rise  in  Wall  Street Banks' prime rate.  Some financial
analysts  believe the FRB will raise rates again before year-end by another 1/4%
to  1/2%.  Management estimates that such increases would have minimal impact on
the  Company's  net  interest  margin.

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.

                                    Page  12
<PAGE>
As  of  June  30,  1999 all capital adequacy requirements were met.  Also, as of
June  30,  1999, 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. To be categorized as well-capitalized,
the  Bank must maintain certain minimum total risk-based, Tier I risk-based, and
Tier  I  leverage  ratios.  There  are  no  conditions  or  events  since  that
notification  that  management  believes  have  changed  the  Bank's  category.


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,  1999  and  1998  are  as  follows  (dollars  in  thousands):
<TABLE>

<CAPTION>



                                                           June 30,
                                                     -------------------
                                                        1999      1998
                                                     ----------  -------
<S>                                                  <C>         <C>
Balance at beginning of period                       $   3,283    3,153
Provision for loan losses                                  496      429
Loans charged off                                         (461)    (637)
Recoveries on loan previously charged off                  273      308
                                                     ----------  -------
Balance at end of period                             $   3,591   $3,253
                                                     ==========  =======

Allowance as a percentage of total period end loans       1.04%    1.06%
                                                     ==========  =======

Allowance as a percentage of non-performing loans        255.2%   100.9%
                                                     ==========  =======
</TABLE>



At  June 30, 1999, the recorded investment in loans that are considered impaired
totaled  $1.2  million as compared to $2.1 million at December 31, 1998 and $1.8
million  at  June  30,  1998.  The average recorded investment in impaired loans
during  the  six  month  periods ended June 30, 1999 and 1998 were approximately
$1.7  million  and  $3.0 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 $1.8
million to $1.4 million at June 30, 1999 as compared to $3.2 million at June 30,
1998.  The  decrease  has come from commercial loans.  Management attributes the
decrease  to  a combination of strict underwriting procedures, strong collection
efforts  and  a  relatively  stable  economic  cycle  in  the  Company's market.

Other  real  estate  owned consists of four parcels of property, all commercial,
for  $2.0  million. The increase in other real estate owned from the same period
in  1998 is a result of the addition of two properties in 1999, net liquidations
of  four  properties  in  1999.














                                            Page  13
<PAGE>

Non-Performing  Assets
----------------------
<TABLE>

<CAPTION>

                              Non-Performing Assets
                             (Dollars in thousands)


                                                     June 30,
                                                ------------------
                                                   1999      1998
                                                ----------  ------
<S>                                             <C>         <C>
Loans past due 90 days or more and accruing
Commercial, financial & agricultural            $      13     429
Real estate-commercial                                 86     135
Real estate-residential                                43      73
Consumer                                               86      29
                                                ----------  ------
Total past due 90 days or more and
  accruing                                            228     666
                                                ----------  ------

Loans in non-accrual status
Commercial, financial & agricultural                  625     611
Real estate-commercial                                180   1,519
Real estate-residential                               374     427
Consumer                                                -       -
                                                ----------  ------
Total non-accrual loans                             1,179   2,557
                                                ----------  ------
Total non-performing loans                          1,407   3,223
                                                ----------  ------

Other real estate owned
Commercial                                          2,008   1,601
Residential                                             -       -
                                                ----------  ------
Total other real estate owned                       2,008   1,601
                                                ----------  ------
Total non-performing assets                     $   3,415   4,824
                                                ==========  ======

Non performing loans to total loans period end       0.41%   1.05%
                                                ==========  ======

Non performing assets to total loans and
 other real estate at period end                     0.99%   1.56%
                                                ==========  ======

<FN>

The  Company  has  no  restructured  loans.
</TABLE>





Year  2000
----------

The  Company  began  reviewing  its  year  2000  conversion  needs  in  1995 and
established a Year 2000 Project Committee that meets to review the status of the
conversion. The committee continues to direct the Company's Year 2000 activities
under  the framework of the Federal Financial Institutions Examination Council's
(FFIEC)  Five  Step  Program,  which  includes  the  following:
     1.  Awareness  Phase
     2.  Assessment  Phase
     3.  Renovation  Phase
     4.  Validation  Phase
     5.  Implementation  Phase
The  Company  has  segregated  its systems into two main categories: (1) Mission
Critical  and  (2)  Other.  Mission Critical systems are those systems (hardware
and  software)  that  are vital to the successful continuance of the Canandaigua
National  Bank  and Trust's core banking and trust operations. Other systems are
those  used  by  the  Company  and  its  related  non-bank subsidiaries that are
considered  non-mission  critical.

                                     Page  14
<PAGE>


A  comprehensive  review to identify the systems affected by the year 2000 issue
was  completed  in 1997 and an implementation plan was compiled and is currently
being  executed.  As  a  result of the procedures already completed, the Company
expects  to  upgrade  existing  systems  or  replace  some  systems  altogether.

Significant  progress has been made, including the replacement/conversion of the
Bank's  core  operating  systems.  It is anticipated that all remaining projects
will  be  completed  by internal staff. The Company does not expect to spend any
significant  amounts with outside contractors. Therefore, costs do not represent
any  material  incremental  costs, but rather will represent the redeployment of
existing  technology  resources.  In  the opinion of management our "opportunity
cost"  from  1996  through  2000  approximates $3.0 million and is based upon an
estimate  of  the  time  for  internal staff to complete testing and remediation
efforts multiplied by an estimated hourly rate.  Out-of-pocket costs for testing
and other services are estimated at no more than $300,000, most of which will be
expended  in  1999.

As  of  June  30,  1999 the Company had substantially completed all of the above
phases of its year 2000 compliance plan. All material year 2000 compliance items
were  completed  by  June  30, 1999.  Substantially all mission-critical systems
were  validated  by  year-end  1998.  Validation  testing  on a few non-critical
systems  remains.  Following  validation,  these  systems  will  be implemented.

All  of  the  remaining  systems  to  be  validated  and  converted/replaced are
vendor-supplied,  and  most vendors have provided the Company with certification
or  a  delivery  commitment letter. The Company presently believes that with the
conversion  to new systems, and vendor delivery of millennium-compliant systems,
all  material  year  2000  compliance  issues  will  be  resolved.

While  deemed  remote  by  management,  if  the  Company's systems were to cease
processing  due  to  a  year  2000  failure,  any  interruption  would likely be
short-lived.  And  because  substantially  all  of  our  income and expenses are
earned  (paid)  on  an  accrual  basis,  any anticipated direct losses which may
result  from  a  year  2000  related  system failure would not be expected to be
material  over  the  long  term.  The  Company  can  continue  to earn (and pay)
interest in the event of an operating disruption. The Company assesses its worst
case Year 2000 scenarios to include: (1) material credit losses due to Year 2000
failures  adversely  affecting  its  commercial  banking  customer  base and (2)
liquidity  strain  resulting  from potential disruption of the financial markets
stemming  from  significant  Year  2000  failures.

Because  of these potential risks, the Company has developed and is implementing
the  following  plans:

The  Company  has prepared a business continuity plan for its Bank operations to
consider  the  impact  of  Year  2000.  The  plan  will  include,  at a minimum:

1.  Identification of responsible individual or team, and key personnel required
    for  business resumption.
2.  Development  of  a  recovery  plan  for  each  core  business  process.
3.  Creation of a master list of customer, clients, suppliers, institutions that
    share  data.
4.  An  inventory  of  machines,  documents,  electronic  files  required  for
    resumption.
5.  Identification  of  a  location  for  business  resumption.
6.  Creation  of  printouts  of  warehoused  (in-process)  transactions.
7.  Use  of  manual  processing  procedures  if  necessary.
8.  Training  of  key  personnel  to  implement  plan.

Testing  of  the  Business Resumption Contingency Plans was performed during the
second  quarter  of  1999.

The  Company  is  also  subject, either directly or indirectly, to the year 2000
issue  with  respect to external parties, particularly commercial loan customers
and  transaction processing parties.  The Bank is addressing its exposure to its
commercial  loan  customers  by  reviewing  customers'  plans and procedures for
remediating  their year 2000 risk.  This review is carried out in the context of
the  Bank's  annual  loan  review  process,  which  includes  a  Y2K  assessment
questionnaire


                                       Page  15
<PAGE>


for  completion  by  borrowers.   The  Bank  has  reviewed  a  majority  of  its
commercial  loan  customers  and  had  classified the entire loan portfolio in a
"high-medium-low  Y2K  risk"  rating  system.  Using  this  system,  management
assessed  the  Bank's  risk  of  loan loss.  Through this assessment process the
Company  has  concluded  that no special provision for loan loss is necessary to
address  the  Y2K  risk.

The Company's most important third party vendors are the Federal Reserve Bank of
New  York (Fedline), NYCE, and NYACH.  Each of these vendors plays a role in the
payment  exchange  system,  such  as  check  clearing,  ATM  processing  and ACH
postings.  A failure of any or all of these vendors to carry out their functions
would  result  in  a  delay  in  posting customer transactions.  The Company has
completed  testing  with  each  of  these  vendors.

Management  believes  the  Company's  Year  2000 efforts constitute an important
technology  project.  They view these efforts as opportunities for technological
advancement,  which  will  ultimately  increase  customer  value.













































                                     Page  16
<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

(b)       Reports  on  Form  8-K
None
























                                         Page  17
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                                   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 12, 1999          /s/ George W. Hamlin, IV
                ---------------          ------------------------
                  Date          George W. Hamlin, IV, President


                 August 12, 1999          /s/ Gregory S. MacKay
                 ---------------          ---------------------
                   Date          Gregory S. MacKay, Treasurer








































                                       Page  18
<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

















































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