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,  2001
                                    ----------------

or

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

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



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


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


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


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


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


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

                    Class                     Outstanding  at  May  5,  2001
                    -----                     ------------------------------
             Common  stock,  $50.00  par                  158,732















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

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














































                CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES

                               INDEX TO FORM 10-Q

                                 MARCH 31, 2001

PART  I -- FINANCIAL INFORMATION                                            Page
                                                                            ----

Item  1.  Financial  Statements  (Unaudited)

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

Condensed  consolidated  statements  of  income  for  the  three-
  month  period ended March 31, 2001 and 2000.                                 3

Consolidated  statements  of  stockholders'  equity
  for  the three-month period ended March 31, 2001 and 2000.                   4

Consolidated  statements  of  cash  flows  for  the  three-
  month  period ended March 31, 2001 and 2000.                                 5

Notes  to  financial  statements
  at  March 31, 2001.                                                          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, 2001 and December 31, 2000 (unaudited)
                      (dollars in thousands, except per share data)


                                                               March 31,   December 31,
                                                              -----------  -------------
Assets                                                           2001          2000
------------------------------------------------------------  -----------  -------------
<S>                                                           <C>          <C>

Cash and due from banks                                       $   26,701         28,157
Interest-bearing deposits with other financial institutions           75             97
Securities:
  - Available for sale, at fair value                                474            450
  - Held-to-maturity (fair value of $101,344 in 2001 and
      $80,881 in 2000)                                           100,217         80,492
Loans:
  Commercial, financial & agricultural                            73,011         65,324
  Commercial mortgage                                            199,082        195,153
  Residential mortgage                                            81,278         81,475
  Consumer-auto indirect                                          91,352         93,746
  Consumer-other                                                  19,932         20,214
  Other                                                            1,598          1,833
  Loans held for sale                                              1,680          2,226
                                                              -----------  -------------
    Total loans                                                  467,933        459,971
  Less:  Allowance for loan losses                                (4,905)        (4,712)
                                                              -----------  -------------
    Loans - net                                                  463,028        455,259
Premises and equipment - net                                      15,764         15,949
Accrued interest receivable                                        3,599          3,371
Federal Home Loan Bank stock and Federal Reserve Bank stock        3,032          3,032
Other assets                                                       8,728          7,886
                                                              -----------  -------------
        Total Assets                                          $  621,618        594,693
                                                              ===========  =============


<FN>

                                          (Continued)
</TABLE>













                                                                      Page  1
<PAGE>
<TABLE>

<CAPTION>

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



                                                            March 31,   December 31,
                                                           -----------  -------------
Liabilities and Stockholders' Equity                            2001          2000
---------------------------------------------------------  -----------  -------------
<S>                                                        <C>          <C>

Deposits:
  Demand
    Non-interest bearing                                   $   92,592         87,497
    Interest bearing                                           55,733         53,665
  Savings and money market                                    176,706        162,975
  Time deposits                                               238,583        229,672
                                                           -----------  -------------
        Total deposits                                        563,614        533,809
Borrowings                                                      9,233         12,644
Accrued interest payable and other liabilities                  4,289          3,971
                                                           -----------  -------------
        Total Liabilities                                  $  577,136        550,424
                                                           -----------  -------------


Stockholders' Equity:
  Common stock, $50 par value; 240,000 shares authorized;
    162,208 shares issued in 2001 and 2000                      8,110          8,110
  Additional paid-in capital                                    8,532          8,532
  Retained earnings                                            28,886         28,687
  Treasury stock at cost (3,476 shares in 2001 and 2000)       (1,268)        (1,268)
  Accumulated other comprehensive income                          222            208
                                                           -----------  -------------
        Total Stockholders' Equity                             44,482         44,269
                                                           -----------  -------------
        Total Liabilities and Stockholders' Equity         $  621,618        594,693
                                                           ===========  =============
<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, 2001 and 2000 (Unaudited)

                  (dollars in thousands, except per share data)


                                                            2001     2000
                                                           -------  ------
<S>                                                        <C>      <C>
Interest income:
  Loans, including fees                                    $ 9,825  $8,390
  Securities                                                 1,155   1,025
  Other                                                         32       2
                                                           -------  ------
        Total interest income                               11,012   9,417
                                                           -------  ------
Interest expense:
  Deposits                                                   4,804   3,682
  Borrowings                                                    89     413
                                                           -------  ------
      Total interest expense                                 4,893   4,095
                                                           -------  ------
      Net interest income                                    6,119   5,322
Provision for loan losses                                      438     250
                                                           -------  ------
      Net interest income after provision for loan losses    5,681   5,072
                                                           -------  ------

Other income:
  Service charges on deposit accounts                          961     728
  Trust income                                               1,013     831
  Net gain on sale of mortgage loans                             8       1
  Other operating income                                       580     420
                                                           -------  ------
      Total other income                                     2,562   1,980
                                                           -------  ------

Operating expenses:
  Salaries and employee benefits                             3,713   3,559
  Occupancy                                                  1,210   1,055
  Marketing and public relations                               206     248
  Office supplies, printing and postage                        271     282
  FDIC insurance                                                49      22
  Other operating expenses                                   1,149   1,044
                                                           -------  ------
      Total operating expenses                               6,598   6,210
                                                           -------  ------

      Income before income taxes                             1,645     842
Income taxes                                                   486     230
                                                           -------  ------
      Net income                                           $ 1,159  $  612
                                                           =======  ======

Basic earnings per share                                   $  7.30  $ 3.86
                                                           =======  ======
Diluted earnings per share                                 $  7.26  $ 3.84
                                                           =======  ======
<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, 2001 and 2000 (Unaudited)

                          (dollars in thousands, except per share data)


                            Accumulated
                             Additional    Other
                               Common     Paid in  Retained   Treasury   Comprehensive
                               Stock      Capital  Earnings     Stock        Income       Total
                            ------------  -------  ---------  ---------  --------------  -------
<S>                         <C>           <C>      <C>        <C>        <C>             <C>
Balance at January 1, 2001  $      8,110    8,532    28,687     (1,268)            208   44,269
  Comprehensive income:
    Change in unrealized
     gain on securities
     available for sale,
     net of taxes of $10               -        -         -          -              14       14
    Net income                         -        -     1,159          -               -    1,159
                                                                                         -------
  Total comprehensive
   income                          1,173
                            ------------
  Cash dividend - $6.05
   per share                           -        -      (960)         -               -     (960)
                            ------------  -------  ---------  ---------  --------------  -------
Balance at March 31, 2001          8,110    8,532    28,886     (1,268)            222   44,482
                            ============  =======  =========  =========  ==============  =======



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
                            ============  =======  =========  =========  ==============  =======

<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, 2001 and 2000 (Unaudited)

                             (dollars in thousands)



                                                          2001       2000
                                                        ---------  ---------
<S>                                                     <C>        <C>
Cash flow from operating activities:
  Net income                                            $  1,159   $    612
  Adjustments to reconcile net income to
    net cash from operating activities:
    Depreciation, amortization and accretion                 344        472
    Provision for loan losses                                438        250
    Deferred income taxes                                   (100)      (129)
    Originations of loans held for sale                  (13,278)   (11,068)
    Proceeds from sale of loans held for sale             13,823     10,361
    Increase in accrued interest receivable
      and other assets                                      (399)    (1,403)
    Increase in accrued interest payable and
     other liabilities                                       318        494
                                                        ---------  ---------
      Net cash provided (used) by operating activities     2,305       (411)
                                                        ---------  ---------

Cash flow from investing activities:
  Sale of FHLB stock                                           -        558
  Securities held to maturity:
    Proceeds from maturities and calls                    39,949      5,357
    Purchases                                            (59,452)   (19,285)
  Loans originated - net                                  (8,752)   (19,734)
  Fixed asset purchases - net                               (338)    (1,429)
  Investment in minority owned entity                       (636)         -
  Cash received from sale of other real estate                12          -
                                                        ---------  ---------
      Net cash used by investing activities              (29,217)   (34,533)
                                                        ---------  ---------

Cash flow from financing activities:
  Net increase in demand, savings and money
    market deposits                                       20,894      2,103
  Net increase in time deposits                            8,911     24,580
  Proceeds from (repayments of) overnight borrowings      (3,400)     7,570
  Principal repayments on long-term borrowings               (11)        (9)
  Dividends paid                                            (960)      (944)
                                                        ---------  ---------
      Net cash provided by financing activities           25,434     33,300
                                                        ---------  ---------

      Net decrease in cash & cash equivalents             (1,478)    (1,644)
  Cash & cash equivalents - beginning of period           28,254     26,834
                                                        ---------  ---------
  Cash & cash equivalents - end of period               $ 26,776   $ 25,190
                                                        =========  =========

Supplemental disclosures of cash flow information:
  Cash paid during the period for:
    Interest                                            $  4,764   $  4,051
                                                        =========  =========
    Income taxes                                        $     82   $     69
                                                        =========  =========
<FN>

See  notes  to  financial  statements
</TABLE>










                                                                        Page  5
<PAGE>


                CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES
                    Notes to Financial Statements (unaudited)


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

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

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


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

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

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

Basic  earnings  per common share is calculated by dividing net income available
to  common  shareholders  by  the  weighted average number of shares outstanding
during  the  period.  Diluted  earnings  per share includes the maximum dilutive
effect of stock issueable upon conversion of stock options. Calculations for the
three-month  periods ended March 31, 2001 and 2000 follow (dollars in thousands,
except  share  data):

<TABLE>

<CAPTION>




For the three months ended March 31,              2001      2000
                                                --------  --------
<S>                                             <C>       <C>
Basic Earnings Per Share:
  Net income applicable to common shareholders  $  1,159  $    612
  Weighted average common shares outstanding     158,732   158,483
                                                --------  --------
      Basic earnings per share:                 $   7.30  $   3.86
                                                ========  ========


Diluted Earnings Per Share:
  Net income applicable to common shareholders  $  1,159  $    612
  Weighted average common shares outstanding     158,732   158,483
  Effect of assumed exercise of stock options        961       963
                                                --------  --------
    Total                                        159,693   159,446
                                                --------  --------
      Diluted earnings per share:               $   7.26  $   3.84
                                                ========  ========
</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.  In 2001, the Board of
Directors granted, 2,393 non-qualified options to management under the Company's
incentive  compensation  plan  for 2000's performance.  The options were granted
with  an exercise price equal to the estimated fair value of the common stock on
the  grant  date.  The options are exerciseable at times varying from five years
to fifteen years.  The options are fully vested and have no set expiration date.

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

<TABLE>

<CAPTION>



For the three months ended March 31,   2001   2000
                                      ------  -----
<S>                                   <C>     <C>
Net income:
  As reported                         $1,159  $ 612
  Pro forma                              994    480

Earnings per share:
  As reported:
    Basic                             $ 7.30  $3.86
    Diluted                             7.26   3.84
  Pro forma:
    Basic                             $ 6.26  $3.03
    Diluted                             6.22   3.01
</TABLE>



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

<CAPTION>



Grant year                  2001         2000
                         -----------  -----------
<S>                      <C>          <C>
Dividend yield                 2.61%        2.72%
Risk free interest rate        4.92%        6.45%
Life                     10.4 years   11.4 years
Volatility                    13.81%       14.39%
</TABLE>




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

During the quarter ended March 31, 2001, the Company paid $.03 million from the
contract termination liability accrued in the fourth quarter of 2000 related to
the  realignment of the  Company's credit  card activity.  The  balance  of the
liability at  March 31,  2001 was  $0.4 million  and is expected  to fully  pay
in 2001.


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

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




                                                                        Page  7
<PAGE>

Item  2. Management's Discussion and Analysis of Financial Condition and Results
of  Operations
        March  31,  2001

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, 2000
contained  in  the Company's Form 10-K and includes certain known trends, events
and  uncertainties that are reasonably expected to have a material effect on the
Company's  financial  position  or  operating  results.


Overview
--------

At  the  end of the first quarter of 2001 the Company achieved record asset size
of $622 million.  This represents a 4.5% increase over year-end 2000 and a 11.7%
increase  over  the  March 31, 2000 balance.  Net income roughly doubled to $1.2
million  for  the  first  quarter  of 2001 compared to $0.6 million for the same
period of 2000.  These results are on budget and are reflective of the growth in
earning  assets,  combined  with  a  modest  6.2%  growth  in operating expenses
year-on-year.

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

As  of  March 31, 2001, total assets of the Company were $621.6 million, up from
$594.7  million at year-end 2000. Cash and equivalents decreased $1.5 million to
$26.8  million,  resulting  from the Company's reduced holdings of year-end cash
reserves.  Securities  increased  $19.7  million  to $100.7 million to allow for
collateralization  of  municipal  deposits.  Net loans increased $7.8 million to
$463.0  million,  and  all  other  assets  rose  $0.9  million to $31.1 million,
reflective  of  earning  asset  and  branch  network  growth.

Total  deposits  at March 31, 2001 were $563.6 million and were up $29.8 million
from  December  31,  2000. A substantial portion of the deposit growth came from
municipalities.  The  Company  is  marketing  its  financial  services  to local
governments  in  its  newly  expanded  Monroe County market as well as expanding
existing  relationships  in  Ontario  County.  For  the  same  period borrowings
(primarily  from  the  FHLB)  were  down  $3.4  million  to $9.2 million.  Other
liabilities  increased  by  $0.3  million  to  $4.3  million.  The  decrease  in
borrowings  was  enabled by growth in retail deposits. Deposit growth in 2001 is
coming  from  all  account  types  -  interest bearing and non-interest bearing.

For  the  three  months  ended  March 31, 2001, average interest-earning assets,
increased $67.2 million to $555.5 million from $488.3 million for the 2000 first
quarter.  The  yields  on  these  assets were 7.93% and 7.71%, respectively; the
increase  resulting  from an overall rise in general interest rates during 2000.
For  the  same  periods,  average  interest-bearing  liabilities increased $54.1
million  to  $469.2  million  from $415.1.  Rates paid on these liabilities were
4.17%  and  3.95%,  respectively, also reflecting general market rate increases.
The  asset and liability yield changes were the same thus resulting in no change
interest  spread, reversing the declining spread experienced by the Company over
the  last  several  years.  The  growth  in interest-earning assets and interest
bearing  liabilities  had  a $0.7 million positive impact on net interest income
for  the  quarter  ended  March  31,  2001, while the change in rates had a $0.1
million  positive impact on net interest income as compared to the first quarter
of  2000.  In  the  first  quarter  of  2001  the  Company's net interest margin
increased  to  4.41%  from  4.36%  for  the same quarter in 2000.  This increase
reverses  previous  quarters'  trends,  and  is  likely  to stabilize or decline
slightly  over the year due to the impact of falling market interest rates.  The
Company's  liabilities  rates  have  been  falling faster than asset yields, but
liability  rates  are  nearing  historical  lows  with  further significant rate
reductions  unlikely.  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, 2001 increased $0.6 million to $2.6
million  over  the  same quarter in 2000.  The increase was reflected in service
charges--attributed  to increased transaction volume and fee increases and trust
income-attributed to growth in assets under management.  Net gain on the sale of
mortgage  loans  was  not  material  in  either quarter.  Other operating income
increased for 2001 as a result of an increase in mortgage banking operations due
to  the  falling  interest  rate  environment compared to 2000.  Considering the
continued  declining  interest  rate  environment, management anticipates higher
mortgage  banking  income  in  2001  than  in  2000.
Operating  expenses  increased $0.4 million for the quarter ended March 31, 2001
to  $6.6  million  versus $6.2 million for the 2000 first quarter.  The increase
came in nearly all expense categories, reflecting growth in customers, employees
and  banking  offices.  However,  the  growth rate of expenses is lower than the
growth  rate  in  income,  resulting  in  greater  profitability.  The Company's
successful  cost  containment  efforts  initiated  in  the last half of 2000 are
paying  off  in  2001.
The  Company's  effective  tax  rate  was  29.5%  in  2001 versus 27.3% in 2000.

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, 2001 the Company used $1.5 million in net cash and equivalents
versus  generating  $1.6  million  for  the  same  quarter in 2000.  The overall
decrease  in cash and equivalents in 2001 is primarily related to a reduction in
year-end  seasonal  cash  reserves.

Net  cash  provided  by  operating  activities was $2.3 million in 2001.  In the
first  quarter  of 2000 the Company used $0.4 million of cash and equivalents in
its  operating activities.  Both the largest source and use of operating cash in
2001  and  2000  were  mortgage-banking activity.  However, activity in 2001 was
slightly  higher  than  that  of  2000's,  reflective of the pick-up in mortgage
refinancings  due  to  market  interest  rate  reductions.

Cash  used by investing activities decreased in 2001 to $29.2 million from $34.5
million  in  2000.  The decrease in investing activities came from a combination
of  higher net investment growth, offset by lower net loan growth. The Company's
fixed  asset  investing activities continued, but at a slower pace than in 2001.
Fewer  banking  offices  were  under  renovation  in  2001  than  2000.

Cash  provided  by  financing  activities was $25.4 million in 2001 versus $33.3
million  in  2000.  Deposits  continue  to  be  the  Company's  main  source  of
financing,  with  borrowings  contributing  a  lesser  amount.

The  Company  has two primary sources of non-customer (wholesale) liquidity: the
Federal  Home  Loan  Bank of New York (FHLB) and the Federal Reserve Bank of New
York.  At  March  31,  2001  residential mortgage loans with a carrying value of
approximately  $13.8  million were pledged as collateral for the Bank's advances
from  the  Federal Home Loan Bank. Approximately $38.7 million was available for
additional  borrowing.  Indirect  automobile  loans  with  a  carrying  value of
approximately  $86.6 million were pledged as collateral for a $69.3 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 2001, financing for growth is expected to come from both
customer  and  wholesale sources.  Customer deposit growth is mainly expected to
come  from  Monroe  County  sources.


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

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

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

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

                                                                        Page  10
<PAGE>


As  of  March  31,  2001,  the  most  recent notification from the Office of the
Comptroller  of  the Currency categorized the Bank as well-capitalized under the
regulatory  framework  for  prompt corrective action.  However, the Bank's asset
growth in 2001 is anticipated to exceed its capital formation, which will result
in a continuing trend towards declining capital ratios.  Management will closely
monitor  capital  levels  at  the  Bank.
<PAGE>

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,  2001  and  2000  follow  (dollars  in  thousands):
<TABLE>

<CAPTION>



                                                      March 31,
                                                     -----------
                                                        2001       2000
                                                     -----------  -------
<S>                                                  <C>          <C>
Balance at beginning of period                       $    4,712   $4,136
Provision for loan losses                                   438      250
Loans charged off                                          (349)    (186)
Recoveries on loans previously charged off                  104      139
                                                     -----------  -------
Balance at end of period                             $    4,905   $4,339
                                                     ===========  =======

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

Allowance as a percentage of non performing loans         194.3%   141.4%
                                                     ===========  =======
</TABLE>



The  increase in the provision for loan losses from first quarter of 2000 to the
first quarter of 2001 is related to the increase in net-chargeoffs over 2000 (as
seen  in  the  table above).  The increase in the allowance for loan losses from
$4.3  million  at  March  31,  2000  to $4.9 million at March 31, 2001 is due to
overall  loan  portfolio  growth.

At March 31, 2001, the recorded investment in loans that are considered impaired
totaled  $2.3  million as compared to $3.2 million at December 31, 2000 and $2.7
million  at  March  31, 2000.  The average recorded investment in impaired loans
during  the three month periods ended March 31, 2001 and 2000 were approximately
$2.8  million  and  $2.4 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 $0.5
million  to  $2.5 million at March 31, 2001 as compared to $3.0 million at March
31,  2000.  The decrease came primarily from commercial real estate loans and is
mainly attributable to one relationship.  Non-performing loans represent .54% of
the  total  loan  portfolio  at  March 31, 2001 as compared to .73% at March 31,
2000.

At  March  31,  2001, other real estate owned consisted of three commercial real
estate  parcels,  totaling  $1.5 million.  These are the same three parcels that
were in other real estate owned at March 31, 2000.  The balance reduction is due
to  cash  proceeds  from  sales  of  a  portion of the properties and from lease
payments.  Management  continues  efforts  to  liquidate  these  assets.











                                                                        Page  11
<PAGE>

Non-Performing  Assets
<TABLE>

<CAPTION>

                              Non-Performing Assets
                             (Dollars in thousands)


                                                 March 31,
                                                -----------
                                                   2001       2000
                                                -----------  -------
<S>                                             <C>          <C>
Loans past due 90 days or more and accruing
Commercial, financial & agricultural            $      102   $   15
Real estate-commercial                                   -      193
Real estate-residential                                  -        -
Consumer                                               123      121
                                                -----------  -------
Total past due 90 days or more and
  accruing                                             225      329
                                                -----------  -------

Loans in non-accrual status
Commercial, financial & agricultural                   863      643
Real estate-commercial                               1,160    1,730
Real estate-residential                                276      366
                                                -----------  -------
Total non-accrual loans                              2,299    2,739
                                                -----------  -------
Total non-performing loans                           2,524    3,068
                                                -----------  -------

Other real estate owned - commercial                 1,454    1,651
                                                -----------  -------

Total non-performing assets                     $    3,978   $4,719
                                                ===========  =======

Non performing loans to total period-end loans        0.54%    0.73%
                                                ===========  =======

Non performing assets to total period-end
  loans and other real estate                         0.85%    1.12%
                                                ===========  =======

<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  14, 2001 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
-----                         -------   --------    -------   -------

Robert  G.  Sheridan          111,873         10        165         0

Patricia  A.  Boland          108,887      2,996        165         0

Alan  J.  Stone               111,778        105        165         0

Richard  P.  Miller,  Jr.     111,866         17        165         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, 2001          /s/ George W. Hamlin, IV
                 ------------          ------------------------
                    Date               George W. Hamlin, IV, President


                 May 12, 2001          /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>