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  March  31,  2000
                                    ----------------

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  May  5,  2000
                    -----                     ------------------------------
             Common  stock,  $50.00  par                  158,483















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, 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.













































                CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES

                               INDEX TO FORM 10-Q

                                 MARCH 31, 2000

PART  I -- FINANCIAL INFORMATION                                            Page
                                                                            ----

Item  1.  Financial  Statements  (Unaudited)

Condensed  consolidated  balance  sheets  at  March  31,  2000
  and  December 31, 1999.                                                      1

Condensed  consolidated  statements  of  income  for  the  three
  month  period ended March 31, 2000 and 1999.                                 3

Consolidated  statements  of  stockholders'  equity
  for  the three month period ended March 31, 2000 and 1999.                   4

Consolidated  statements  of  cash  flows  for  the  three
  month  period ended March 31, 2000 and 1999.                                 5

Notes  to  financial  statements
  at  March 31, 2000.                                                          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                                        10
    ----------------------------------


PART  II  --  OTHER  INFORMATION

Item  1.  Legal Proceedings                                                   13
Item  2.  Changes in Securities                                               13
Item  3.  Defaults Upon Senior Securities                                     13
Item  4.  Submission of Matters to a Vote of Security Holders                 13
Item  5.  Other Information                                                   13
Item  6.  Exhibits and Reports on Form 8-K                                    13

SIGNATURES                                                                   14

EXHIBITS                                                                     15
















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

<CAPTION>

                    CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES
                          CONDENSED CONSOLIDATED BALANCE SHEETS
                    March 31, 2000 and December 31, 1999 (unaudited)
                      (dollars in thousands, except per share data)


                                                               March 31,   December 31,
                                                              -----------  -------------
Assets                                                           2000          1999
------------------------------------------------------------  -----------  -------------
<S>                                                           <C>          <C>

Cash and due from banks                                       $   25,165         26,801
Interest-bearing deposits with other financial institutions           25             33
Securities:
  - Available for sale, at fair value                                699            528
  - Held-to-maturity (fair value of $88,476 in 2000 and
      $74,805 in 1999)                                            89,205         75,336
Loans:
  Commercial, financial & agricultural                            54,610         62,491
  Commercial mortgage                                            169,138        141,255
  Residential mortgage                                            69,644         69,862
  Consumer-auto indirect                                         104,723        103,605
  Consumer-other                                                  17,511         18,561
  Other                                                            1,804          2,097
  Loans held for sale                                              1,327            492
                                                              -----------  -------------
    Total loans                                                  418,757        398,363
  Less:  Allowance for loan losses                                (4,339)        (4,136)
                                                              -----------  -------------
    Loans - net                                                  414,418        394,227
Premises and equipment - net                                      14,342         13,438
Accrued interest receivable                                        3,060          2,682
Federal Home Loan Bank stock and Federal Reserve Bank stock        2,990          3,548
Other assets                                                       6,623          5,542
                                                              -----------  -------------
        Total Assets                                          $  556,527        522,135
                                                              ===========  =============


<FN>

                                          (Continued)
</TABLE>













                                                                      Page  1
<PAGE>
<TABLE>

<CAPTION>

                       CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES
                             CONDENSED CONSOLIDATED BALANCE SHEETS
                       March 31, 2000 and December 31, 1999 (unaudited)
                         (dollars in thousands, except per share data)



                                                            March 31,   December 31,
                                                           -----------  -------------
Liabilities and Stockholders' Equity                          2000          1999
---------------------------------------------------------  -----------  -------------
<S>                                                        <C>          <C>            <C>

Deposits:
  Demand
    Non-interest bearing                                   $   74,282         74,630
    Interest bearing                                           54,199         46,490
  Savings and money market                                    155,125        156,108
  Time deposits                                               197,367        177,062
                                                           -----------  -------------
        Total deposits                                        480,973        454,290
Borrowings                                                     29,779         22,218
Accrued interest payable and other liabilities                  3,644          3,150
                                                           -----------  -------------
        Total Liabilities                                  $  514,396        479,658
                                                           -----------  -------------


Stockholders' Equity:
  Common stock, $50 par value; 240,000 shares authorized;
    162,208 shares issued in 2000 and 1999                      8,110          8,110
  Additional paid-in capital                                    8,506          8,506
  Retained earnings                                            26,755         27,087
  Treasury stock at cost (3,725 shares in 2000 and
                                                                 1999)        (1,348)  (1,348)
  Accumulated other comprehensive income                          108            122
                                                           -----------  -------------
        Total Stockholders' Equity                             42,131         42,477
                                                           -----------  -------------
        Total Liabilities and Stockholders' Equity         $  556,527        522,135
                                                           ===========  =============
<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 month periods ended March 31, 2000 and 1999 (Unaudited)

                  (dollars in thousands, except per share data)


                                                            2000    1999
                                                           ------  ------
<S>                                                        <C>     <C>
Interest income:
  Loans, including fees                                    $8,390  $6,416
  Securities                                                1,025     947
  Other                                                         2      75
                                                           ------  ------
        Total interest income                               9,417   7,438
                                                           ------  ------
Interest expense:
  Deposits                                                  3,682   2,929
  Borrowings                                                  413      80
                                                           ------  ------
      Total interest expense                                4,095   3,009
                                                           ------  ------
      Net interest income                                   5,322   4,429
Provision for loan losses                                     250      50
                                                           ------  ------
      Net interest income after provision for loan losses   5,072   4,379
                                                           ------  ------

Other income:
  Service charges on deposit accounts                         728     500
  Trust income                                                831     700
  Net gain on sale of mortgage loans                            1      43
  Other operating income                                      302     376
                                                           ------  ------
      Total other income                                    1,862   1,619
                                                           ------  ------

Operating expenses:
  Salaries and employee benefits                            3,559   2,993
  Occupancy                                                 1,055     836
  Marketing and public relations                              248     253
  Office supplies, printing and postage                       282     232
  FDIC insurance                                               22      10
  Other operating expenses                                    926     818
                                                           ------  ------
      Total operating expenses                              6,092   5,142
                                                           ------  ------

      Income before income taxes                              842     856
Income taxes                                                  230     275
                                                           ------  ------
      Net income                                           $  612  $  581
                                                           ======  ======

Basic earnings per share                                   $ 3.86  $ 3.64
                                                           ======  ======
Diluted earnings per share                                 $ 3.84  $ 3.64
                                                           ======  ======
<FN>

See  notes  to  financial  statements
</TABLE>


                                                                        Page  3
<PAGE>
<TABLE>

<CAPTION>

                        CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES
                         CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

              For the three month periods ended March 31, 2000 and 1999 (Unaudited)

                          (dollars in thousands, except per share data)


                                                                          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, 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 $12               -        -         -          -             (14)     (14)
    Net income                         -        -       612          -               -      612
                                                                                         -------
  Total comprehensive
   income                            598
                            ------------
  Cash dividend - $5.95
   per share                           -        -      (944)         -               -     (944)
                            ------------  -------  ---------  ---------  --------------  -------
Balance at March 31, 2000          8,110    8,506    26,755     (1,348)            108   42,131
                            ============  =======  =========  =========  ==============  =======



Balance at January 1, 1999  $      8,110    8,495    26,563       (835)            145   42,478
  Comprehensive income:
    Change in unrealized
     gain on securities
     available for sale,
     net of taxes of $13               -        -         -          -             (18)     (18)
    Net income                         -        -       581          -               -      581
                                                                                         -------
  Total comprehensive
   income                            563
                            ------------
  Cash dividend - $5.75
   per share                           -        -      (918)         -               -     (918)
  Purchase of 298 shares
   of treasury stock                   -        -         -       (112)              -     (112)
                            ------------  -------  ---------  ---------  --------------  -------
Balance at March 31, 1999          8,110    8,495    26,226       (947)            127   42,011
                            ============  =======  =========  =========  ==============  =======

<FN>

See  notes  to  financial  statements
</TABLE>






















                                                                        Page  4
<PAGE>
<TABLE>

<CAPTION>

                CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS

      For the three month periods ended March 31, 2000 and 1999 (Unaudited)

                             (dollars in thousands)



                                                            2000       1999
                                                          ---------  ---------
<S>                                                       <C>        <C>
Cash flow from operating activities:
  Net income                                              $    612   $    581
  Adjustments to reconcile net income to
    net cash from operating activities:
    Depreciation, amortization and accretion                   472        472
    Provision for loan losses                                  250         50
    Deferred income taxes                                     (129)       (44)
    Originations of loans held for sale                    (11,068)   (24,711)
    Proceeds from sale of loans held for sale               10,361     24,510
    Increase in accrued interest receivable
      and other assets                                      (1,403)    (1,113)
    Increase in accrued interest payable and
     other liabilities                                         494        990
                                                          ---------  ---------
      Net cash provided (used) by operating activities        (411)       735
                                                          ---------  ---------

Cash flow from investing activities:
  Sale of FHLB stock                                           558          -
  Securities held to maturity:
    Proceeds from maturities and calls                       5,357     10,767
    Purchases                                              (19,285)   (11,000)
  Loans originated - net                                   (19,734)    (1,629)
  Fixed asset purchases - net                               (1,429)      (680)
  Proceeds from sale of other real estate                        -        198
                                                          ---------  ---------
      Net cash used by investing activities                (34,533)    (2,344)
                                                          ---------  ---------

Cash flow from financing activities:
  Net increase (decrease) in demand, savings and money
    market deposits                                          2,103       (702)
  Net increase in time deposits                             24,580      7,196
  Proceeds from borrowings                                   7,570         --
  Principal repayments on borrowings                            (9)    (2,305)
  Purchase of treasury stock                                     -       (112)
  Dividends paid                                              (944)      (918)
                                                          ---------  ---------
      Net cash provided by financing activities             33,300      3,159
                                                          ---------  ---------

      Net increase (decrease) in cash & cash equivalents    (1,644)     1,550
  Cash & cash equivalents - beginning of period             26,834     24,206
                                                          ---------  ---------
  Cash & cash equivalents - end of period                 $ 25,190   $ 25,756
                                                          =========  =========

Supplemental disclosures of cash flow information:
  Cash paid during the period for:
    Interest                                              $  4,051   $  2,934
                                                          =========  =========
    Income taxes                                          $     69   $     61
                                                          =========  =========
Supplemental disclosure of non-cash investing
 activity:
  Additions to other real estate acquired through
   foreclosure, net of loans to facilitate sales          $     --   $    119
                                                          =========  =========
<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, 1999 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 period ended March 31,
2000  is  not necessarily indicative of the results that may be expected for the
year  ending  December  31,  2000.  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, 1999.

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 $5.95 per share dividend on common stock on
January 12, 2000, payable February 1, 2000 to shareholders of record January 12,
2000.

(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  month periods ended March 31, 2000 and 1999 follow (dollars in thousands,
except  share  data):

<TABLE>

<CAPTION>




For the three months ended March 31,              2000     1999
                                                --------  -------
<S>                                             <C>       <C>
Basic Earnings Per Share:
  Net income applicable to common shareholders  $    612      581
  Weighted average common shares outstanding     158,483  159,559
                                                --------  -------
      Basic earnings per share:                 $   3.86     3.64
                                                ========  =======


Diluted Earnings Per Share:
  Net income applicable to common shareholders  $    612      581
  Weighted average common shares outstanding     158,483  159,559
  Effect of assumed exercise of stock options        963       17
                                                --------  -------
    Total                                        159,446  159,576
                                                --------  -------
      Diluted earnings per share:               $   3.84     3.64
                                                ========  =======
</TABLE>











                                                                        Page  6
<PAGE>

(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 2000
meeting,  the  Board  of  Directors  granted,  effective  January 1, 2000, 1,486
non-qualified  options  to management under the Company's incentive compensation
plan  for  1999'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 varying times up to sixteen years.  The options are
fully  vested  and  generally  expire  at  the  holder's  retirement.

The Company applies the intrinsic value-based method of accounting prescribed by
APB  Opinion  No.  25,  "Accounting  for  Stock  Issued  to  Employees"  for its
stock-based  compensation  plans.  Accordingly,  no  compensation  cost has been
recognized  for  its  stock  options  in the condensed consolidated statement of
income.  Had compensation cost been determined using the fair value at the grant
date  for  stock  option awards, consistent with the method of SFAS No. 123, the
Company's  net  income and earnings per share would have been reduced to the pro
forma  amounts  indicated  below  (dollars  in  thousands,  except  share data):

<TABLE>

<CAPTION>



For the three months ended March 31,  2000   1999
                                      -----  -----
<S>                                   <C>    <C>
Net income:
  As reported                         $ 612  $ 581
  Pro forma                             480    360

Earnings per share:
  As reported:
    Basic                             $3.86  $3.64
    Diluted                            3.84   3.64
  Pro forma:
    Basic                             $3.03  $2.19
    Diluted                            3.01   2.19
</TABLE>



The  weighted  average  fair  value  of options granted during 2000 and 1999 was
$122.56  and  $71.21,  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                  2000         1999
                         -----------  -----------
<S>                      <C>          <C>
Dividend yield                 2.72%        3.09%
Risk free interest rate        6.45%        4.65%
Life                     11.4 years   12.9 years
Volatility                    14.39%       14.73%
</TABLE>





















                                                                        Page  7
<PAGE>

Item  2. Management's Discussion and Analysis of Financial Condition and Results
of  Operations
     March  31,  2000

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, 1999
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  first  quarter  of  2000  marks  the  one year anniversary of the Company's
accelerated  expansion  into  the  Monroe County area, which includes these main
components  (1)  expansion  of retail customer service delivery, (2) increase in
the  number  commercial  services  staff,  (3) expansion of Trust and Investment
services  and  (4)  increasing  brand  awareness  in  the  marketplace.

The  results  of  this  expansion have been positive.  Comparing the three month
period  ended  March  31 2000 with the same period in 1999, the Company showed a
28.8%  increase  in  interest  earning assets, 25.6% increase in deposits, 18.8%
increase  in  operating  revenue  (net interest income plus other income), and a
5.3%  increase  in  net  income.  The  book  value  of  trust  assets  under
administration  grew  during  this  same  period  by  39.8%.

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

Assets grew in the first quarter, continuing the trend set in 1999.  As of March
31,  2000,  total  assets  of  the  Company  were $556.5 million, up from $522.1
million  at  year end 1999. Cash and equivalents decreased $1.6 million to $25.2
million,  resulting  from  the  Company's  reduced  holdings  following its cash
reserve  buildup  for  the  century date changeover.  Securities increased $14.0
million  to  $89.9 million to allow for collateralization of municipal deposits.
Net  loans  increased $20.2 million to $414.4 million, and all other assets rose
$1.8  million  to  $27.0 million, reflective of earning asset and branch network
growth.

Total  deposits  at March 31, 2000 were $481.0 million and were up $26.7 million
from  December  31, 1999. The newest six offices contributed $7.0 million of the
quarter's  deposit  growth.  In  addition,  the  Company  sold  $13.7 million of
nationally  marketed  time  deposits.  For the same period borrowings (primarily
from  the  FHLB)  were  up  $7.6  million  to  $29.8 million.  Other liabilities
increased  by  $0.5  million  to  $3.6  million.  The increase in borrowings and
nationally  marketed deposits was made to fund the quarter's loan and investment
growth.  Overall  deposit growth in 2000 is coming in interest-bearing accounts.
Consumers  tend  to  increase  balances  in interest bearing accounts as general
interest  rates  rise versus leaving excess funds in non-interest bearing demand
accounts.

For  the  three  months  ending March 31, 2000, average interest earning assets,
increased $95.1 million to $488.3 million from $393.2 million for the 1999 first
quarter.  The  yields  on  these  assets were 7.71% and 7.57%, respectively; the
increase resulting from an overall rise in general interest rates, following the
Federal  Reserve  Board's rate increases in the last half of 1999.  For the same
periods,  average interest bearing liabilities increased $88.5 million to $415.1
million  from  $326.6.  Rates  paid  on  these liabilities were 3.95% and 3.69%,
respectively,  also  reflecting  rate  increases.  This  12  basis point drop in
interest spread had a $.1 million negative impact on net interest income for the
quarter  ended  March  31,  2000.  The  growth  in  interest earnings assets and
interest  bearing liabilities had a $1.0 million positive impact on net interest
income.  In the first quarter of 2000 the Company's net interest margin declined
to  4.36%  from 4.51% for the same quarter in 1999.  This declining trend in net
interest  margin  is  expected  to continue through 2000 as market interest rate
increases  will  drive  up  the  Company's  funding  costs faster than its asset
yields.  Refer  to  Interest  Rate  Sensitivity and Asset / Liability Management
Review  section  for  a  further  discussion  of  interest rate risk management.
                                      Page  8
<PAGE>

Other  income for the quarter ended March 31, 2000 increased $.2 million to $1.9
million  over  the  same quarter in 1999.  The increase was reflected in service
charges--attributed  to  increased transaction volume and the number of customer
accounts  and trust income-attributed to growth in assets under management.  Net
gain  on the sale of mortgage loans and other operating income declined for 2000
as  a  result  of  a  reduction in mortgage banking operations due to the rising
interest rate environment compared to 1999.  Considering the increasing interest
rate  environment,  management anticipates lower mortgage banking income in 2000
than  in  1999.
Operating  expenses  increased $1.0 million for the quarter ended March 31, 2000
to  $6.1  million  versus $5.1 million for the 1999 first quarter.  The increase
came in nearly all expense categories, reflecting growth in customers, employees
and  banking  offices.
The  Company's  effective  tax rate was 27.3% in 2000 versus 32.1% in 1999.  The
reduction  in  the  tax rate is due to an increase in the non-taxable investment
income  from  a  larger  average portfolio balance ($45.9 million in 2000 versus
$38.2  million  in  1999)

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 quarter
ended  March  31, 2000 the Company used $1.6 million in net cash and equivalents
versus  generating  $1.6  million  for  the  same  quarter in 1999.  The overall
decrease  in  cash and equivalents in 2000 is related to a reduction in built-up
cash  reserves associated with the century date change.  The Company held excess
currency  for  the  benefit  of  its  customers.

Net  cash  used  in operating activities was $0.4 million in 2000.  In the first
quarter  of  1999  the Company generated $0.7 million from operating activities.
Both the largest source and use of operating cash in 1999 and 1998 were mortgage
banking  activity.  However,  activity  in  2000  was  less than half of 1999's,
reflecting  a  slow  down  in  the  mortgage  banking  business.

Cash  used  by  investing  activities  increased  substantially in 2000 to $34.5
million  from  $2.3  million in 1999.  The increase in investing activities came
from  a  combination  of  investment  and loan growth. The Company's fixed asset
investing  activities  continued  as  future  offices  are  under  renovation.

Cash  provided  by financing activities was $33.3 million in 2000 versus of $3.1
million  in  1999.  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  March  31,  2000  residential mortgage loans with a carrying value of
approximately  $42.3  million  were  pledged  as collateral for the Bank's $29.5
million advances from the Federal Home Loan Bank. Approximately $8.3 million was
available  for  additional borrowing.  Indirect automobile loans with a carrying
value  of  approximately  $40.1  million  were pledged as collateral for a $32.0
million  line  of  credit  from  the  Federal  Reserve  Bank  of  New  York.

Secondarily,  the Company has a liquidity source through the sale of its CD's 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 2000, financing for growth is expected to come from both
customer  and  wholesale sources.  Customer deposit growth is mainly expected to
come  from  Monroe  County  sources.



                                       Page  9
<PAGE>


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

The  Company realizes income principally from the differential or spread between
the interest earned on loans, investments and other interest-earnings assets and
the  interest  paid on deposits and borrowings. Loan volumes and yields, as well
as the volume of and rates on investments, deposits and borrowings, are affected
by  market  interest rates. Additionally, because of the terms and conditions of
many  of the Company's loan documents and deposit accounts, a change in interest
rates  could  also  affect the projected maturities of the loan portfolio and/or
the  deposit base, which could alter the Company's sensitivity to future changes
in  interest  rates.  Accordingly, management considers interest rate risk to be
the  Company's  most  significant  market  risk.
Interest  rate  risk  management focuses on maintaining consistent growth in net
interest  income  within  Board  approved  policy  limits  while  taking  into
consideration,  among  other  factors,  the  Company's overall credit, operating
income,  operating  cost,  and  capital  profile.  The Company's Asset/Liability
Committee  (ALCO), which is composed of members of 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  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.
There has been no significant change in the Company's interest rate risk profile
since  December  31,  1999.  Net interest earnings projections reflect a decline
when  applying  the  expected  rising  interest rate environment as of March 31,
2000.

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,  1999.

Capital  Resources

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

                                                                        Page  10
<PAGE>


As  of  March  31,  2000,  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 2000 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>

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

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

Changes in the allowance for loan losses for the three month periods ended March
31,  2000  and  1999  follow  (dollars  in  thousands):
<TABLE>

<CAPTION>



                                                      March 31,
                                                     -----------
                                                        2000       1999
                                                     -----------  ------
<S>                                                  <C>          <C>
Balance at beginning of period                       $    4,136   3,283
Provision for loan losses                                   250      50
Loans charged off                                          (186)   (204)
Recoveries on loan previously charged off                   139     169
                                                     -----------  ------
Balance at end of period                             $    4,339   3,298
                                                     ===========  ======

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

Allowance as a percentage of non performing loans         141.4%  149.6%
                                                     ===========  ======
</TABLE>



The  increase in the provision for loan losses from first quarter of 1999 to the
first  quarter  of  2000 is related to the growth in the loan portfolio.  During
the  first quarter of 1999, net loans increased $1.6 million, while in the first
quarter  of  2000,  net  loans  increased  $19.3  million.

At March 31, 2000, the recorded investment in loans that are considered impaired
totaled  $2.7  million as compared to $1.6 million at December 31, 1999 and $1.9
million  at  March  31, 1999.  The average recorded investment in impaired loans
during  the three month periods ended March 31, 2000 and 1999 were approximately
$2.4  million  and  $2.0 million, respectively.  For those same periods interest
income  recognized  on  impaired  loans  was  not  material.

Total  non-performing  loans  increased  over  the  twelve  month period by $0.9
million  to  $3.1 million at March 31, 2000 as compared to $2.2 million at March
31,  1999. The increase has come primarily from commercial real estate loans and
mainly attributable to one relationship.  The borrower's loans are fully secured
by  real  estate.  Management  expects these loans will be brought to performing
status.  Even  with  an  increase  in  non-accrual  loans,  non-performing loans
represent only .73% of the total loan portfolio at March 31, 2000 as compared to
 .70%  at  March  31,  1999.

At  March  31,  2000, other real estate owned consisted of three commercial real
estate  parcels,  totaling  $1.6  million.  This compares to six commercial real
estate  parcels  totaling  $1.6 million at March 31, 1999.  Management continues
efforts  to  liquidate  these  assets.










                                                                        Page  11
<PAGE>

Non-Performing  Assets
<TABLE>

<CAPTION>

                              Non-Performing Assets
                             (Dollars in thousands)


                                                       March 31,
                                                --------------------
                                                   2000       1999
                                                -----------  -------
<S>                                             <C>          <C>
Loans past due 90 days or more and accruing
Commercial, financial & agricultural            $       15   $   40
Real estate-commercial                                 193       93
Real estate-residential                                  -       23
Consumer                                               121      133
                                                -----------  -------
Total past due 90 days or more and
  accruing                                             329      289
                                                -----------  -------

Loans in non-accrual status
Commercial, financial & agricultural                   643    1,326
Real estate-commercial                               1,730      240
Real estate-residential                                366      350
Total non-accrual loans                              2,739    1,916
                                                -----------  -------
Total non-performing loans                           3,068    2,205
                                                -----------  -------

Other real estate owned - commercial                 1,651    1,563
                                                -----------  -------

Total non-performing assets                     $    4,719   $3,768
                                                ===========  =======

Non performing loans to total period-end loans        0.73%    0.70%
                                                ===========  =======

Non performing assets to total period-end
  loans and other real estate                         1.12%    1.17%
                                                ===========  =======

<FN>

The  Company  has  no  restructured  loans.
</TABLE>




























                                                                        Page  12
<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

(a)  The  annual  meeting  of  stockholders  of  Canandaigua  National
          Corporation  was  held  on  March  15, 2000 for the following purpose:

         Three  directors  were  elected  for  a  three-year  term  and
          votes  were  cast  as  follows:

                                         Votes
                                        -------
Name                          For     Withheld    Abstain   Against
-----                       -------   --------    -------   -------

George  W.  Hamlin,  IV       113,080        0         0         0

Caroline  C.  Shipley         113,080        0         0         0

David  Hamlin,  Jr.           113,080        0         0         0



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  13
<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)



                 May 12, 2000          /s/ George W. Hamlin, IV
                 ------------          ------------------------
                 Date           George W. Hamlin, IV, President


                 May 12, 2000          /s/ Gregory S. MacKay
                 ------------          ---------------------
                 Date           Gregory S. MacKay, Treasurer








































                                                                        Page  14
<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  15
<PAGE>