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

or

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

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



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


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


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


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


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


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

                    Class                     Outstanding  at  May  4,  1999
                    -----                     ------------------------------
             Common  stock,  $50.00  par                  159,314

















This  quarterly  report contains certain "forward-looking statements" covered by
the  "safe harbor" provisions of the Private Securities Litigation Reform Act of
1995.  When  used  or  incorporated  by  reference  in  the Company's disclosure
documents,  the  words  "anticipate," "estimate," "expect," "project," "target,"
"goal"  and  similar expressions, as well as discussion regarding the "Year 2000
issue,"  are  intended to identify forward-looking statements within the meaning
of  Section  27A  of  the  Securities  Act.  Such forward-looking statements are
subject  to  certain  risks,  uncertainties  and assumptions, including, but not
limited  to  (1)  economic  conditions, (2) real estate market, and (3) interest
rates. Should one or more of these risks or uncertainties materialize, or should
underlying  assumptions prove incorrect, actual results may vary materially from
those  anticipated,  estimated,  expected  or  projected.  These forward looking
statements  speak  only  as  of  the date of the document. The Company expressly
disclaims  any  obligation  or  undertaking  to  publicly release any updates or
revisions  to  any  forward-looking  statement  contained  herein to reflect any
change in the Company's expectation with regard thereto or any change in events,
conditions  or  circumstances  on  which  any  such  statement  is  based.














































                CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES

                               INDEX TO FORM 10-Q

                                 MARCH 31, 1999

PART  I -- FINANCIAL INFORMATION                                            Page
                                                                            ----

Item  1.  Financial  Statements  (Unaudited)

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

Condensed  consolidated  statements  of  income  for  the  three
  month  period ended March 31, 1999 and 1998.                                 3

Condensed  consolidated  statements  of  stockholders'  equity
  for  the three month period ended March 31, 1999 and 1998.                   4

Condensed  consolidated  statements  of  cash  flows  for  the  three
  month  period ended March 31, 1999 and 1998.                                 5

Notes  to  condensed  consolidated  financial  statements
  at  March 31, 1999.                                                          6

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

Item  3.  Quantitative  and  Qualitative  Disclosures  about
  Market  Risk
    This  information  is  incorporated  by  reference
    in  Part  I,  Item  2,  Interest  Rate  Sensitivity  and
                            --------------------------------
    Asset/Liability  Management Review                                        10
    ----------------------------------


PART  II  --  OTHER  INFORMATION

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

SIGNATURES                                                                    16

EXHIBITS                                                                      17
















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

<CAPTION>

                    CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES
                          CONDENSED CONSOLIDATED BALANCE SHEETS
                    March 31, 1998 and December 31, 1998 (unaudited)
                    (dollars in thousands, except per share amounts)


                                                               March 31,   December 31,
                                                              -----------  -------------
Assets                                                           1999          1998
------------------------------------------------------------  -----------  -------------
<S>                                                           <C>          <C>

Cash and due from banks                                       $   18,947         23,892 
Interest-bearing deposits with other financial institutions          341            314 
Federal funds sold                                                 6,500             -- 
Securities:
  - Available for sale, at fair value                                406            437 
  - Held-to-maturity (fair value of $73,540 in 1999 and
    $73,688 in 1998)                                              72,718         72,479 
Loans:
  Commercial, financial & agricultural                            42,871         43,260 
  Commercial mortgage                                             89,497         83,771 
  Residential mortgage                                            72,186         76,130 
  Consumer-indirect                                               85,224         84,370 
  Consumer-other                                                  17,904         17,753 
  Other                                                            2,594          3,516 
  Loans held for sale                                              3,169          2,969 
                                                              -----------  -------------
    Total loans                                                  313,445        311,769 
  Less:  Allowance for loan losses                                (3,298)        (3,283)
                                                              -----------  -------------
    Loans - net                                                  310,147        308,486 
Premises and equipment - net                                      11,674         11,468 
Accrued interest receivable                                        2,416          2,244 
Federal Home Loan Bank stock and Federal Reserve Bank stock        3,548          3,548 
Other assets                                                       6,602          5,179 
                                                              -----------  -------------
        Total Assets                                          $  432,759        428,047 
                                                              ===========  =============


<FN>

                                          (Continued)
</TABLE>











                                                                      Page  1
<PAGE>
<TABLE>

<CAPTION>

                   CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES
                         CONDENSED CONSOLIDATED BALANCE SHEETS
                   March 31, 1998 and December 31, 1998 (unaudited)
                   (dollars in thousands, except per share amounts)


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

Deposits:
  Demand
    Non-interest bearing                                    $   57,265         64,368 
    Interest bearing                                            64,984         56,877 
  Savings and money market                                     107,610        109,316 
  Time deposits                                                153,142        145,946 
                                                            -----------  -------------
        Total deposits                                         383,001        376,507 
FHLB advances                                                    4,837          7,142 
Accrued interest payable and other liabilities                   2,910          1,920 
                                                            -----------  -------------
        Total Liabilities                                   $  390,748        385,569 
                                                            -----------  -------------


Stockholders' Equity:
  Common stock, $50 par value; 240,000 shares authorized;
    162,208 shares issued in 1999 and 1998                       8,110          8,110 
  Additional paid in capital                                     8,489          8,489 
  Retained earnings                                             26,232         26,569 
  Treasury stock at cost (2,777 shares in 1999 and 1,713
    shares in 1998)                                               (947)          (835)
  Accumulated other comprehensive income                           127            145 
                                                            -----------  -------------
        Total Stockholders' Equity                              42,011         42,478 
                                                            -----------  -------------
        Total Liabilities and Stockholders' Equity          $  432,759        428,047 
                                                            ===========  =============
<FN>

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

















                                                                        Page  2
<PAGE>

<TABLE>

<CAPTION>

                CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES
                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME

      For the three month periods ended March 31, 1999 and 1998 (Unaudited)

                (dollars in thousands, except per share amounts)


                                                            1999   1998
                                                           ------  -----
<S>                                                        <C>     <C>
Interest income:
  Loans, including fees                                    $6,416  6,831
  Securities                                                  947    994
  Other                                                        75     33
                                                           ------  -----
        Total interest income                               7,438  7,680
                                                           ------  -----
Interest expense:
  Deposits                                                  2,929  2,437
  Borrowings                                                   80    673
                                                           ------  -----
      Total interest expense                                3,009  3,110
                                                           ------  -----
      Net interest income                                   4,429  4,748
Provision for loan losses                                      50    323
                                                           ------  -----
      Net interest income after provision for loan losses   4,379  4,425
                                                           ------  -----

Other income:
  Service charges on deposit accounts                         500    311
  Trust income                                                700    511
  Net gain (loss) on sale of mortgages                         43     15
  Other operating income                                      376    394
                                                           ------  -----
      Total other income                                    1,619  1,231
                                                           ------  -----

Operating expenses:
  Salaries & employee benefits                              2,993  2,382
  Occupancy expense                                           836    740
  FDIC insurance                                               10     20
  Marketing and public relations                              253     75
  Office supplies, printing and postage                       232    159
  Professional                                                122     97
  Other operating expenses                                    696    763
                                                           ------  -----
      Total operating expenses                              5,142  4,236
                                                           ------  -----

      Income before income taxes                              856  1,420
Income taxes                                                  275    409
                                                           ------  -----
      Net income                                           $  581  1,011
                                                           ======  =====

Basic earnings per share                                   $ 3.64   6.30
                                                           ======  =====
Diluted earnings per share                                 $ 3.54   6.30
                                                           ======  =====
<FN>

See  notes  to  condensed  consolidated  financial  statements
</TABLE>


                                                                        Page  3
<PAGE>
<TABLE>

<CAPTION>

                        CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES
                         CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

              For the three month periods ended March 31, 1999 and 1998 (Unaudited)

                        (dollars in thousands, except per share amounts)


                                                                         Accumulated
                                        Additional                          Other
                               Common     Paid in  Retained   Treasury   Comprehensive
                               Stock      Capital  Earnings     Stock        Income       Total
                            ------------  -------  ---------  ---------  --------------  -------
<S>                         <C>           <C>      <C>        <C>        <C>             <C>
Balance at January 1, 1999  $      8,110    8,489    26,569       (835)            145   42,478 
  Comprehensive income:
    Change in unrealized
     gain on securities
     available for sale,
     net of taxes of $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    8,489    26,232       (947)            127   42,011 
                            ============  =======  =========  =========  ==============  =======



Balance at January 1, 1998  $      8,110    8,489    24,742       (528)            119   40,932 
  Comprehensive income:
    Net income                         -        -     1,011          -               -    1,011 
                                                                                         -------
  Total comprehensive
   Income                                                                                 1,011
                                                                                         -------
  Cash dividend - $5.50
   per share                           -        -      (883)         -               -     (883)
Purchase of 71 shares
of treasury stock                      -        -         -        (25)              -      (25)
                            ------------  -------  ---------  ---------  --------------  -------
Balance at March 31, 1998          8,110    8,489    24,870       (553)            119   41,035 
                            ------------  -------  ---------  ---------  --------------  -------

<FN>

See  notes  to  condensed  consolidated  financial  statements
</TABLE>






















                                                                        Page  4
<PAGE>
<TABLE>

<CAPTION>

                CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS

      For the three month periods ended March 31, 1999 and 1998 (Unaudited)

                             (dollars in thousands)



                                                            1999      1998
                                                          ---------  -------
<S>                                                       <C>        <C>
Cash flow from operating activities:
  Net income                                              $    581    1,011 
  Adjustments to reconcile net income to
    net cash from operating activities:
    Depreciation and amortization                              472      404 
    Provision for loan losses                                   50      323 
    Deferred income taxes                                      (44)       - 
    Originations of loans held for sale                    (24,711)  (8,023)
    Proceeds from sale of loans held for sale               24,510    8,092 
    (Increase) decrease in accrued interest receivable
      and other assets                                      (1,113)  (1,288)
    Increase (decrease) in accrued interest payable and
     other liabilities                                         990     (185)
                                                          ---------  -------
      Net cash provided by operating activities                735      334 
                                                          ---------  -------

Cash flow from investing activities:
  Purchase of FHLB stock                                         -     (430)
  Securities held to maturity:
    Proceeds from maturities and calls of securities        10,767   10,522 
    Purchases of securities                                (11,000)  (9,991)
  Loans (originated) repaid, net                            (1,629)  10,079 
  Fixed asset purchases - net                                 (680)    (385)
  Investment in minority owned subsidiary                        -      (75)
  Proceeds from sale of other real estate                      198      853 
                                                          ---------  -------
      Net cash provided (used) by investing activities      (2,344)  10,573 
                                                          ---------  -------

Cash flow from financing activities:
  Net increase (decrease) in demand, savings and short-
    term deposits                                             (702)  (8,860)
  Proceeds from time of deposit net
    of payments on maturing deposits                         7,196    8,638 
  Principal repayments on FHLB advances                     (2,305)  (5,606)
  Purchase of treasury stock                                  (112)     (25)
  Dividends paid                                              (918)    (883)
                                                          ---------  -------
      Net cash provided (used) by financing activities       3,159   (6,736)
                                                          ---------  -------

      Net increase (decrease) in cash & cash equivalents     1,550   (4,171)
  Cash & cash equivalents - beginning of period             24,206   19,647 
                                                          ---------  -------
  Cash & cash equivalents - end of period                 $ 25,756   23,818 
                                                          =========  =======

Supplemental disclosures of cash flow information:
  Cash paid during the period for:
    Interest                                              $  2,934    4,780 
                                                          =========  =======
    Income taxes                                          $     61      631 
                                                          =========  =======
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  condensed  consolidated  financial  statements
</TABLE>






                                                                        Page  5
<PAGE>


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


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

The accompanying unaudited condensed consolidated financial statements have been
prepared  in  accordance  with  the  instructions to Form 10-Q and Article 10 of
Regulation  S-X  and  with  generally accepted accounting principles for interim
financial  information.  Such  principles are applied on a basis consistent with
those  reflected  in the December 31, 1998 Form 10-K Report of the Company filed
with  the  Securities  and Exchange Commission. Accordingly, they do not include
all  of  the information and footnotes required by generally accepted accounting
principles  for  complete  financial  statements.  Management  has  prepared the
financial  information  included  herein  without audit by independent certified
public  accountants.  In  the opinion of management, all adjustments (consisting
of  normal recurring accruals) considered necessary for a fair presentation have
been  included.  Operating  results  for  the three-month period ended March 31,
1999  is  not necessarily indicative of the results that may be expected for the
year  ending  December  31,  1999.  For  further  information,  refer  to  the
consolidated  financial  statements  and  footnotes  thereto  included  in  the
Company's  annual  report  on  Form  10-K  for the year ended December 31, 1998.

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


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

The  Company  declared a semi-annual $5.75 per share dividend on common stock on
January 13, 1999, payable February 1, 1999 to shareholders of record January 13,
1999.

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

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

<TABLE>

<CAPTION>



                                                  Net    Average   Per
                                                Income   Shares   Share
                                                -------  -------  ------
For the three months ended March 31, 1999
<S>                                             <C>      <C>      <C>
Basic earnings per share:
  Net income applicable to common shareholders  $   581  159,559  $ 3.64
  Effect of assumed exercise of stock options         -    4,571       -
Diluted earnings per share:
  Income available for common shareholders and
    assumed exercise of stock options           $   581  164,130  $ 3.54


For the three months ended March 31, 1998
Basic earnings per share:
  Net income applicable to common shareholders  $ 1,011  160,565  $ 6.30
  Effect of assumed exercise of stock options         -        -       -
Diluted earnings per share:
  Income available for common shareholders and
    assumed exercise of stock options           $ 1,011  160,565  $ 6.30
</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 meeting,
the  Board  of directors granted, effective January 1, 1999, 4,571 non-qualified
options  to certain employees.  3,210 options were granted in replacement of the
future  appreciation of previously granted Stock Appreciation Rights and Phantom
Stock  Awards.  The  remaining  options  were  granted  to  management under the
Company's  incentive compensation plan for 1998's performance.  The options were
granted  at the estimated fair value of the common stock on the grant date.  The
options  are  exerciseable  at times varying from five years to seventeen years.
The  options  are  fully  vested  and  have  no  set  expiration  date.

The  Company applies APB Opinion No. 25 in accounting for its stock option plan,
and  accordingly, no compensation cost has been recognized for its stock options
in  the  condensed consolidated statement of income.  Had compensation cost been
determined  on  the fair value at the grant date for this award, consistent with
the  method of FASB Statement No. 123, the Company's net income and earnings per
share  at  March  31,  1999  would  have  been  reduced to the pro forma amounts
indicated  below:

<TABLE>

<CAPTION>



(net income in thousands)
<S>                        <C>
Net income:
  As reported              $ 581
  Pro forma                $ 360
Basic earnings per share
  As reported              $3.64
  Pro forma                $2.19
</TABLE>



The  per  share weighted average fair value of stock options granted during 1999
of  $71.21, was determined using the Black-Scholes option-pricing model with the
following  weighted  average  assumptions:
<TABLE>

<CAPTION>



<S>                      <C>
Expected dividend yield        3.09%
Risk free interest rate        4.65%
Expected life            12.9 years 
Volatility                    14.73%
</TABLE>

























                                                                        Page  7
<PAGE>

Item  2. Management's Discussion and Analysis of Financial Condition and Results
of  Operations
     March  31,  1999

The  following  is  management's  discussion and analysis of certain significant
factors  which  have  affected  the  Company's  financial position and operating
results  during  the periods included in the accompanying condensed consolidated
financial  statements.  Management's  discussion  and  analysis  supplements
management's  discussion  and  analysis  for  the  year  ended December 31, 1998
contained  in  the Company's Form 10-K and includes certain known trends, events
and  uncertainties that are reasonably expected to have a material effect on the
Company's  financial  position  or  operating  results.


Overview
--------

During  the first quarter of 1999 the Company began implementing its accelerated
expansion into the Monroe County area following the announced acquisition of one
of  its  most  significant market competitors.  The Company's 1999 plan includes
three  main  components  (1) expand retail customer service delivery, (2) expand
commercial  service  staff, and (3) increase brand awareness in the marketplace.

Throughout  the  quarter the Company also began hiring and training to staff the
new offices in Greece, Irondequoit and Chili, expected to open in the second and
third  quarters.  This  follows  on  the opening of the Webster office in 1998's
fourth  quarter.  In February the Company hired four commercial lending officers
and  expanded  its credit administration staff.  Also in that month, the Company
began  its brand awareness campaign with a series of television commercials that
are  expected  to  continue  throughout  the  year.

These  plans  come  as a result of the Company's strategic planning process that
began  in  1995  with  Vision  2010 - Convenience, Technology, Superior Service,
Community  Focus,  Shareholder  Return,  and  New  Products.

As  discussed  at  the Company's March shareholders' meeting, the costs for this
expansion precede the income generated.  Through detailed planning and analysis,
management  estimates  these  initiatives  will reduce 1999's earnings per share
more  than  15%  from  projections  excluding  these  plans.  However,  these
initiatives  are  also  expected  to breakeven by their third year, and, by year
five,  increase  earnings  per share 20% from projections excluding these plans.

At  March  31,  1999 the Company's assets grew further to a record $433 million.
Total assets increased $4.7 million or 1.1% in the first quarter of 1999.  Loans
increased  $1.7  million or 0.5% while securities increased $.2 million or 0.3%.
During  the  same period, deposits increased $6.5 million or 1.9% and borrowings
(from the FHLB) decreased $2.3 million or 32.3%. Funds generated through deposit
inflows were used to increase loan originations, reduce FHLB borrowings and sell
federal  funds.

Net  income  for the three-month period ended March 31, 1999 was consistent with
management's projections at $.6 million as compared to $1.0 million for the same
period  in  1998.  Basic earnings per share decreased by $2.66 or 42.2% from the
same  period  and  fully diluted earnings per share decreased by $2.76 or 43.8%.
For  the  three  months  ended March 31, 1999, net interest income decreased $.3
million  or  6.7%  from the same period in 1998 and is reflective of the reduced
yields on earning assets following heavy repricing activity and a 75 basis point
prime  rate  drop  in  1998.

The  quality  of  the  Company's assets continued to improve with non-performing
loans  less  than  1%  of total loans at March 31, 1999.  The allowance for loan
losses exceeds the balance of nonperforming loans at the period end.  Other real
estate owned was $.1 million lower than the same period in 1998.  As a result of
these  trends  the  provision  for loan loss declined to $.05 million versus $.3
million for the three-month periods ended March 31, 1999 and 1998, respectively.



                                                                        Page  8
<PAGE>
Financial  Condition  and  Results  of  Operations
--------------------------------------------------

Asset  growth  during  the first quarter of 1999 was slow and is consistent with
1998's  trend.  As  of  March  31, 1999, total assets of the Company were $432.8
million, up from $428.0 million at year end 1998. Cash and equivalents decreased
$4.9  million  to  $18.9  million.  Securities  showed  a  minor increase of $.2
million to $73.1 million.  Excess liquidity of $6.5 million was sold in the form
of  federal  funds.  Net loans increased $1.7 million to $310.1 million, and all
other  assets rose $1.3 million to $23.7 million.  As was the case in 1998, most
of  the  growth  in  the loan portfolio is anticipated to come in the second and
third  quarters  of  1999.

Total  deposits  at  March 31, 1999 were $383.0 million and were up $6.5 million
from  December  31,  1998.  The  Webster  office  contributed  over  half of the
quarter's  deposit growth with $3.8 million in new balances. For the same period
borrowings  from FHLB were down $2.3 million to $4.8 million.  Other liabilities
increased by $1.0 million to $2.9 million. The decline in borrowings is a direct
result  of  deposit  growth. Deposit growth in 1999 has come in interest-bearing
demand - up $8.1 million and time deposits - up $7.2 million.  Deposit growth is
coming  from  a  number  of  sources,  including  the  Generations Gold suite of
accounts,  Business  Choice  Sweep  account,  and  "CD  Specials".  Non-interest
bearing  demand  and  savings  balances  declined  mostly  due  to the timing of
customer's  tax  payments  at  year  end.

For  the  three  months  ending March 31, 1999, average interest earning assets,
increased  $9.6 million to $393.1 million from $383.8 million for the year ended
December  31,  1998.  The  yields  on  these  assets  were  7.57%  and  8.04%,
respectively;  the  decline  resulting  from  loan  refinancings  due  to 1998's
declining  interest  rate  environment.  For  the same periods, average interest
bearing  liabilities  increased  $15.7 million to $326.6 million from $310.9 for
the  year  ended  December 31, 1998.  Rates paid on these liabilities were 3.69%
and  4.00%, respectively.  This 16 basis point drop in interest spread had a $.3
million  negative  impact on net interest income for the quarter ended March 31,
1999.  In  the  first quarter of 1999 the Company's net interest margin declined
to  4.51% from 4.80% for the year ended December 31, 1998.  This declining trend
in  net  interest  margin and spread showed some leveling off following the last
prime  rate  drop  in  November  1998.  However,  interest spread and margin are
anticipated  to  drop further as the Company expands into the highly competitive
Monroe  County  region. Refer to Interest Rate Sensitivity and Asset / Liability
Management  Review  section  for  a  further  discussion  of  interest rate risk
management.

Other  income for the quarter ended March 31, 1999 increased $.4 million to $1.6
million  over  the  same quarter in 1998.  The increase was reflected in service
charges,  attributed  increased  transaction  volume  and changes in account fee
structures  and  trust  income,  due  to  growth  in  assets  under  management.

Operating expenses increased $.9 million for the quarter ended March 31, 1999 to
$5.1  million  versus  $4.2 million for the 1998 first quarter.  These increases
came in nearly all expense categories, reflecting growth in customers, employees
and  banking  offices.  Marketing  and public relations increased over 200% as a
result  of  the  Company's  television  campaign  begun  in  February.

Liquidity
---------

Liquidity is defined as the ability to generate adequate amounts of cash to meet
the  demand  from  depositors  who wish to withdraw funds, borrowers who require
funds,  and  capital  expansion.  Liquidity  is  produced  by  cash  flows  from
operating,  investing,  and  financing activities of the Company.  For the three
months  ended  December  31, 1999 the Company generated $1.6 million in cash and
equivalents  versus  using  $4.2  million  for  the  same  period  in  1998.

Net  cash  from  operating activities was $.7 million in 1999 as compared to $.4
million  in 1998.  Both the largest source and use of operating cash in 1999 and
1998  was  mortgage banking activity.  However, activity in 1999 was three times
that  in  1998.



                                                                        Page  9
<PAGE>

Cash  was  used  in  1999 for investing activities (investments, loans and fixed
assets)  as  opposed  to  being  a  source  in 1998 as a result of loan payoffs.

Financing  activities provided cash of $3.2 million in 1999 versus using cash of
$6.7  million  in  1998.  In  both periods, net time deposit growth provided the
bulk  of  the  cash,  yet  in  1999 this was used to fund loans and sell federal
funds,  while  in  1998  the cash was used to pay demand deposits and repay FHLB
advances.

FHLB  advances  remain an important liquidity source for the Company.  With $4.8
million  outstanding  at  March  31,  1999  the Company had additional borrowing
capacity  from  the  FHLB  of  $37.2  million. Secondarily, the Company opened a
liquidity  source  in 1998 through the sale of its CD's in the national brokered
market.  Cash  for  growth in 1999 is expected to come from these two sources as
well  as  customer  deposits  as  the  Company  expands  into  Monroe  County.


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

The  Company realizes income principally from the differential or spread between
the interest earned on loans, investments and other interest-earnings assets and
the  interest  paid on deposits and borrowings. Loan volumes and yields, as well
as the volume of and rates on investments, deposits and borrowings, are affected
by  market  interest rates. Additionally, because of the terms and conditions of
many  of the Company's loan documents and deposit accounts, a change in interest
rates  could  also  affect the projected maturities of the loan portfolio and/or
the  deposit base, which could alter the Company's sensitivity to future changes
in  interest  rates.  Accordingly, management considers interest rate risk to be
the  Company's  most  significant  market  risk.
Interest  rate  risk  management focuses on maintaining consistent growth in net
interest  income  within  Board  approved  policy  limits  while  taking  into
consideration,  among  other  factors,  the  Company's overall credit, operating
income,  operating  cost,  and  capital  profile.  The Company's Asset/Liability
Committee  (ALCO),  which includes senior management and reports to the Board of
Directors,  monitors  and  manages  interest rate risk to maintain an acceptable
level of change to net interest income as a result of changes in interest rates.
Management  of  the  Company's  interest  rate  risk,  requires the selection of
appropriate  techniques  and  instruments  to  be utilized after considering the
benefits,  costs  and  risk  associated  with available alternatives.  Since the
Company does not utilize derivative instruments, management's techniques usually
consider  one  or more of the following: (1) interest rates offered on products,
(2)  maturity  terms offered on products, (3) types of products offered, and (4)
products  available to the Company in the wholesale market such as advances from
the  FHLB.
The  Company  uses an interest margin simulation model as one method to identify
and  manage  its interest rate risk profile. The model is based on expected cash
flows  and  repricing  characteristics  for  all  financial  instruments  and
incorporates  market-based assumptions regarding the impact of changing interest
rates  on  these  financial  instruments.  Assumptions  based  on the historical
behavior  of deposit rates and balances in relation to changes in interest rates
are also incorporated into the model. These assumptions are inherently uncertain
and,  as  a  result,  the  model cannot precisely measure net interest income or
precisely  predict  the impact of fluctuations in interest rates on net interest
income.  Actual  results  will  differ  from  simulated  results  due to timing,
magnitude,  and  frequency of interest rate changes as well as changes in market
conditions  and  management  strategies.

Management  also  uses  the  static  gap  analysis  to  identify  and manage the
Company's  interest  rate  risk  profile.   Interest  sensitivity  gap  ("gap")
analysis measures the difference between the assets and liabilities repricing or
maturing  within  specific  time  periods.

There has been no significant change in the Company's interest rate risk profile
since  December  31,  1998.

                                                                        Page  10
<PAGE>

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.

As  of  March  31, 1999 all capital adequacy requirements were met.  Also, as of
March  31, 1999, the most recent notification from the Office of the Comptroller
of  the  Currency  categorized the Bank as well-capitalized under the regulatory
framework  for  prompt corrective action. To be categorized as well-capitalized,
the  Bank must maintain certain minimum total risk-based, Tier I risk-based, and
Tier  I  leverage  ratios.  There  are  no  conditions  or  events  since  that
notification  that  management  believes  have  changed  the  Bank's  category.

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

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

Changes in the allowance for loan losses for the three month periods ended March
31,  1999  and  1998  are  as  follows  (dollars  in  thousands):
<TABLE>

<CAPTION>



                                                           March 31,
                                                     --------------------
                                                        1999       1998
                                                     -----------  -------
<S>                                                  <C>          <C>
Balance at beginning of period                       $    3,283    3,153 
Provision for loan losses                                    50      323 
Loans charged off                                          (204)    (419)
Recoveries on loan previously charged off                   169      111 
                                                     -----------  -------
Balance at end of period                             $    3,298   $3,168 
                                                     ===========  =======

Allowance as a percentage of total period end loans        1.05%    1.06%
                                                     ===========  =======

Allowance as a percentage of non performing loans         149.6%    83.9%
                                                     ===========  =======
</TABLE>



At March 31, 1999, the recorded investment in loans that are considered impaired
totaled  $1.9  million as compared to $2.1 million at December 31, 1998 and $3.2
million  at  March  31, 1998.  The average recorded investment in impaired loans
during  the three month periods ended March 31, 1999 and 1998 were approximately
$2.0  million  and  $3.2 million, respectively.  For those same periods interest
income  recognized  on  impaired  loans  was  not  material.

Total  non-performing  loans  decreased  over  the  twelve  month period by $1.6
million  to  $2.2 million at March 31, 1999 as compared to $3.8 million at March
31, 1998. The decrease has come across all commercial loans and residential real
estate.  Management  attributes  the  decrease  to  a  combination  of  strict
underwriting  procedures,  strong  collection  efforts  and  a relatively stable
economic  cycle  in  the  Company's  market.

Other real estate owned consists of six parcels of property, all commercial, for
$1.6  million.  The  decline  in other real estate owned from the same period in
1998  is  a  result  of  net  liquidations  of  properties.

                                                                        Page  11
<PAGE>

Non-Performing  Assets
<TABLE>

<CAPTION>

                              Non-Performing Assets
                             (Dollars in thousands)


                                                     March 31,
                                               -------------------
                                                  1999       1998
                                               -----------  ------
<S>                                            <C>          <C>
Loans past due 90 days or more and accruing
Commercial, financial & agricultural           $       40     272 
Real estate-commercial                                 93     203 
Real estate-residential                                23      18 
Consumer                                              133      44 
                                               -----------  ------
Total past due 90 days or more and
  accruing                                            289     537 
                                               -----------  ------

Loans in non-accrual status
Commercial, financial & agricultural                1,326   1,151 
Real estate-commercial                                240   1,390 
Real estate-residential                               350     698 
Consumer                                                -       - 
                                               -----------  ------
Total non-accrual loans                             1,916   3,239 
                                               -----------  ------
Total non-performing loans                          2,205   3,776 
                                               -----------  ------

Other real estate owned
Commercial                                          1,563   1,652 
Residential                                             -       7 
                                               -----------  ------
Total other real estate owned                       1,563   1,659 
                                               -----------  ------
Total non-performing assets                    $    3,768   5,435 
                                               ===========  ======

Non performing loans to total period end loan        0.70%   1.26%
                                               ===========  ======

Non performing assets to total period end
  loans and other real estate                        1.17%   1.73%
                                               ===========  ======

<FN>

The  Company  has  no  restructured  loans.
</TABLE>




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

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

                                                                        Page  12
<PAGE>

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

Considerable progress has been made, including the replacement/conversion of the
Bank's  core  operating  systems.  It is anticipated that all remaining projects
will  be  completed  by internal staff. The Company does not expect to spend any
significant  amounts with outside contractors. Therefore, costs do not represent
any  material  incremental  costs, but rather will represent the redeployment of
existing  technology  resources.  In  the opinion of management our "opportunity
cost"  from  1996  through  2000  approximates $3.0 million and is based upon an
estimate  of  the  time  for  internal staff to complete testing and remediation
efforts multiplied by an estimated hourly rate.  Out-of-pocket costs for testing
and other services are estimated at no more than $300,000, most of which will be
expended  in  1999.
As  of  March  31, 1999 the Company had substantially completed all of the above
phases  of  its year 2000 compliance plan.  Management expects all material year
2000 compliance items will be resolved no later than the second quarter of 1999.
Substantially all mission-critical systems were validated by year-end 1998.  The
Company  still  has validation testing to complete on some non-critical systems.
Following  validation,  these  systems  will  be  implemented.
All  of  the  remaining  systems  to  be  validated  and  converted/replaced are
vendor-supplied,  and  most vendors have provided the Company with certification
or  a  delivery  commitment letter. The Company presently believes that with the
conversion  to new systems, and vendor delivery of millennium-compliant systems,
all  material  year  2000  compliance  issues  will  be  resolved.
While  deemed  remote  by  management,  if  the  Company's systems were to cease
processing  due  to  a  year  2000  failure,  any  interruption  would likely be
short-lived.  And  because  substantially  all  of  our  income and expenses are
earned  (paid)  on  an  accrual  basis,  any anticipated direct losses which may
result  from  a  year  2000  related  system failure would not be expected to be
material  over  the  long  term.  The  Company  can  continue  to earn (and pay)
interest in the event of an operating disruption. The Company assesses its worst
case Year 2000 scenarios to include: (1) material credit losses due to Year 2000
failures  adversely  affecting  its  commercial  banking  customer  base and (2)
liquidity  strain  resulting  from potential disruption of the financial markets
stemming  from  significant  Year  2000  failures.

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

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

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

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


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

                                                                        Page  13
<PAGE>


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

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

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














































                                                                        Page  14
<PAGE>

PART  II  --  OTHER  INFORMATION

                CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES


Item  1.  Legal  proceedings

None

Item  2.  Changes  in  securities

None

Item  3.  Defaults  upon  senior  securities

None

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

(a)  The  annual  meeting  of  stockholders  of  Canandaigua  National
          Corporation  was  held  on  March  10, 1999 for the following purpose:

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

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

Frank  H.  Hamlin         88,353     13,926         0         0

Stephen  D.  Hamlin      102,079        200         0         0

James  S.  Fralick       102,079        200         0         0

Daniel  P.  Fuller       102,079        200         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

(b)       Reports  on  Form  8-K
None






                                                                       Page  15
<PAGE>

                                   SIGNATURES

                CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES


      Pursuant  to  the requirements of the Securities Exchange Act of 1934, the
registrant  has  duly  caused  this  report  to  be  signed on its behalf by the
undersigned  thereunto  duly  authorized.



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



                 May 13, 1999          /s/ George W. Hamlin, IV
                 ------------          ------------------------
                  Date          George W. Hamlin, IV, President


                   May 13, 1999          /s/ Gregory S. MacKay
                   ------------          ---------------------
                   Date          Gregory S. MacKay, Treasurer








































                                                                        Page  16
<PAGE>


INDEX  OF  EXHIBITS

Exhibit

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

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













































                                                                       Page  17
<PAGE>