SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

___________________________________________

FORM 10-QSB

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2001.

Commission File No. 33-31013

COMMUNITY NATIONAL BANCORPORATION

(Exact name of small business issuer as specified in its charter)

|Georgia(State of Incorpration) | 58-1856963
(I.R.S. Employer Identification No.)
|------------------------------ | -----------------------------------------------

561 E. Washington Avenue, P.O. Box 2619, Ashburn, Georgia 31714(Address of Principal Executive Offices)

(229) 567-9686(Issuer's Telephone Number, Including Area Code)

Not Applicable(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Check whether the issuer (1) 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 issuer was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes X       No ______

APPLICABLE ONLY TO CORPORATE ISSUERS:  Indicate the number of shares outstanding of each of the issuer's classes of common equity as of the latest practicable date.

Common stock, no par value per share, 1,923,981 shares outstanding as of August 6, 2001.

PART I - FINANCIAL INFORMATION

Item 1.	Financial Statements

COMMUNITY NATIONAL BANCORPORATION
ASHBURN, GEORGIA
Consolidated balance Sheets (Unaudited)

|ASSETS                                                                                                                                                                                                                                                                                                                                
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                      
|Cash and due from banks
Interest bearing deposits in other banks
Federal funds sold
TOTAL CASH AND CASH EQUIVALENTS
Securities:
Available for sale, at fair values
Loans, net
Property and equipment, net
Other real estate owned
Goodwill, net
Other assets
Total Assets                                                             
|LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                                                                                                                                                                                                  
|Liabilities:
	Deposits
		Non-interest bearing deposits
		Interest bearing deposits
		Total deposits
FHLN advances
Note payable
Other liabilities
	Total liabilities                                                                                                                                                                   
|Commitments and contingencies                                                                                                                                                                                                                                                                                                         
|Shareholder's Equity:
	Common stock, no par value, 50,000,000
	shares authorized, 1,823,507 shares 
	issued and outstanding at June 30,
	2001 and December 31, 2000, respectively
	Retained earnings
	Treasury stock
	Unrealized gain (loss) on securities, net
	Total Shareholders' Equity
Total liabilities and shareholders' equity

Refer to notes to the consolidated financial statements.



COMMUNITY NATIONAL BANCORPORATION
ASHBURN, GEORGIA
Consolidated Statements of Income
for the three months ended

|                                                                                                                                                                                                                                      | June 30,                                                               
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------
|                                                                                                                                                                                                                                      | 2001                                                                   
|Interest Income
Interest expense
Net interest income                                                                                                                                                                                  | $5,879,8252,938,188$2,941,637                                          
|Provisions for possible loan losses                                                                                                                                                                                                   | 370,000                                                                
|Net interest income after provisions for possible loan losses                                                                                                                                                                         | $2,571,637                                                             
|Other income
Service charges
Other fees
Total other income                                                                                                                                                                            | $310,35763,646$374,003                                                 
|Salaries and benefits
Advertising and business development
Repairs and maintenance
Depreciation and amortization
Legal and professional
Data processing
Regulatory fees and assessments
Other operating expenses
Total other expenses | $  845,337
46,219
54,451
191,212
84,298
96,203
27,684637,424
$1,982,828
|Net income before taxes
Provision for income taxes                                                                                                                                                                                    | $962,812347,500                                                        
|Net income after taxes                                                                                                                                                                                                                | $615,312                                                               
|Basic income per share                                                                                                                                                                                                                | $	.34                                                                  
|Diluted income per share                                                                                                                                                                                                              | $	.31                                                                  



Refer to notes to the consolidated financial statements.



COMMUNITY NATIONAL BANCORPORATION
ASHBURN, GEORGIA
 Consolidated Statements of Income
for the six months ended

|                                                                                                                                                                                                                                      | June 30,                                                                   
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------
|                                                                                                                                                                                                                                      | 2001                                                                       
|Interest Income
Interest expense
Net interest income                                                                                                                                                                                  | $11,027,5345,763,720$5,263,814                                             
|Provisions for possible loan losses                                                                                                                                                                                                   | 680,000                                                                    
|Net interest income after provisions for possible loan losses                                                                                                                                                                         | $4,583,814                                                                 
|Other income
Service charges
Other fees
Total other income                                                                                                                                                                            | $598,439139,137$737,576                                                    
|Salaries and benefits
Advertising and business development
Repairs and maintenance
Depreciation and amortization
Legal and professional
Data processing
Regulatory fees and assessments
Other operating expenses
Total other expenses | $1,701,927
103,397
120,556
317,012
130,300
172,288
56,875988,941
$3,591,296
|Net income before taxes
Provision for income taxes                                                                                                                                                                                    | $1,730,094614,000                                                          
|Net income after taxes                                                                                                                                                                                                                | $1,116,094                                                                 
|Basic income per share                                                                                                                                                                                                                | $	.61                                                                      
|Diluted income per share                                                                                                                                                                                                              | $	.57                                                                      



Refer to notes to the consolidated financial statements.



COMMUNITY NATIONAL BANCORPORATION
ASHBURN, GEORGIA
Consolidated Statements of Cash Flows
(Unaudited)

|                                                                                                                                                                                                                                         | For the six-month periodended June 30,                                 
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------
|                                                                                                                                                                                                                                         | 2001                                                                   
|Cash flows from operating activities                                                                                                                                                                                                     | $2,902,841                                                             
|Cash flows from investing activities:
	Decrease in goodwill purchased
	Purchase of fixed assets
	Purchase of securities, AFS
	Maturity and paydowns, AFS
	(Increase) in loans, net
Net cash used in investing activities                 | $	     -  -  
(469,814)
(3,577,308)
3,030,000(38,512,059)
$(39,529,181)
|Cash flows from financing activities:
	Increase in borrowings
	Increase in deposits
	Payment of cash dividends
	Sale of treasury stock
	Exercise of stock warrants
	Issuance of common stock
Net cash provided from financing activities | $5,150,000
27,481,613
(182,116)
26,941
-  --  -
$32,476,438            
|Net increase in cash and cash equivalents
Cash and cash equivalents,
	beginning of period
Cash and cash equivalents, end of period                                                                                                       | $(4,149,902)15,892,968
$11,743,066                                     











Refer to notes to the consolidated financial statements.



COMMUNITY NATIONAL BANCORPORATION
ASHBURN, GEORGIA
Consolidated Statements of Changes in Shareholders' Equity (Unaudited)
for the three-month periods ended June 30, 2000 and 2001

|                                                                            |                    | Paid inCapital | RetainedEarnings | Accumulated
Other
ComprehensiveIncome |           
|--------------------------------------------------------------------------- | ------------------ | -------------- | ---------------- | ------------------------------------- | ----------
|                                                                            | Common
StockShares | TreasuryStock  | Total           
|Balance,
December 31, 1999                                                  | 1,534,711          | $        -  -  | $7,702,091       | $5,731,110                            | $(229,220)
|Comprehensive Income:
Net income,
six-month period 
ended June 30, 2000     | -  -               | -  -           | -  -             | 499,233                               | -  -      
|Net unrealized (losses) on securities, six-month period ended June 30, 2000 | -  -               | -  -           | -  -             | -  -                                  | (18,632)  
|Total comprehensive income                                                  | -  -               | -  -           | -  -             | 499,233                               | (18,632)  
|Common stock issued                                                         | 188,322            | -  -           | 2,858,795        | -  -                                  | -  -      
|Stock warrants exercised                                                    | 10,800             | -  -           | 36,000           | -  -                                  | -  -      
|Less: Distribution of dividends                                             | -  -               | -  -           | -  -             | (153,472)                             | -  -      
|Balance,
June 30, 2000                                                      | 1,733,833          | $        -  -  | $10,596,886      | $6,076,871                            | $(247,852)
|Balance December 31, 2000                                                   | 1,823,507          | $(26,941)      | $10,861,822      | $6,957,865                            | $(49,372) 
|Comprehensive Income:
Net income,
six-month period 
ended June 30, 2001     | -  -               | -  -           | -  -             | 1,116,094                             | -  -      
|Net unrealized gain
on securities, six-month
period ended
June 30, 2001     | -  -               | -  -           | -  -             | -  -                                  | 160,004   
|Total comprehensive income                                                  | -  -               | -  -           | -  -             | 1,116,094                             | 160,004   
|Sale of treasury stock                                                      | -  -               | 26,941         | -  -             | -  -                                  | -  -      
|Less: Distribution of dividends                                             | -  -               | -  -           | -  -             | (182,116)                             | -  -      
|Balance,
June 30, 2001                                                      | 1,823,507          | $   -  -       | $10,861,822      | $7,891,843                            | $110,632  

Refer to notes to the consolidated financial statements.



Note 1 - Basis of Presentation









Note 2 - Organization of the Business



Community National Bancorporation, Ashburn, Georgia (the "Company") was organized in August, 1989 to serve as a holding company for a proposed de novo bank, Community National Bank, Ashburn, Georgia ("CNB Ashburn").  During 1998, the Company sold and issued 400,000 shares of its common stock at $10.00 per share.  This public offering yielded approximately $4.0 million, all of which was invested during 1999 in a de novo bank, Cumberland National Bank, St. Marys, Georgia ("CNB St. Marys").  On February 24, 2000, the Company acquired Tarpon Financial Corporation and its 100% owned subsidiary bank, First National Bank, Tarpon Springs, Florida ("FNB Tarpon Springs").  The above acquisition was effected through both the exchange of shares and the payment of cash.   CNB Ashburn, CNB St. Marys and FNB Tarpon Springs (collectively, "the Banks") were chartered by and are currently regulated by the Office of the Comptroller of the Currency (the "OCC").  The Banks are primarily engaged in the business of obtaining deposits and providing commercial, consumer and real estate loans to the general public.  Bank deposits are each insured up to $100,000 by the Federal Deposit Insurance Corporation (the "FDIC") subject to certain limitations imposed by the FDIC.





Note 3 - Recent Accounting Pronouncements



In June, 1998, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards No. 133, "Accounting for Derivative Instruments and Hedging Activities."  Statement No. 133 establishes accounting and reporting standards requiring that every derivative instrument (including certain derivative instruments embedded in other contracts) be recorded in the balance sheet as either an asset or a liability measured at its fair value.  The Statement requires that changes in the derivative instrument's fair value be recognized currently in earnings unless specific hedge accounting criteria are met.  Statement No. 133, as amended, is effective for fiscal years beginning after June 15, 2000.  The Company adopted Statement No. 133 as of September 30, 2000.  The adoption of Statement No. 133 did not have a material impact on the financial position or results of operations of the Company.



In September, 2000, FASB issued Statement No. 140, "Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities."  This new Statement replaces Statement No. 125, issued in June, 1996.  Statement No. 140 resolves certain implementation and other issues that have arisen since the initial adoption of Statement No. 125, but it carries over most of Statement No. 125's provisions without change.  Statement No. 140 is effective for transfers occurring after March 31, 2001 and for disclosures relating to securitization transactions and collateral for fiscal years ending after December 15, 2000.  The adoption of Statement No. 140 will not have a significant impact on the financial position or results of operations of the Company.



Item 2 - Management Discussion and Analysis of Financial Condition and Results of Operation.



Liquidity and sources of capital



Community National Bancorporation (the "Company") was organized in August, 1989 and began banking operations through its wholly owned subsidiary, CNB Ashburn, on August 6, 1990.  Since then, CNB Ashburn established three additional branches and has total assets approximating $162.2 million at June 30, 2001.  During 1999, the Company sold additional stock for approximately $4.0 million, utilizing the proceeds to establish another subsidiary, CNB St. Marys, which began operations in October, 1999.  On June 30, 2001, CNB St. Marys had total assets amounting to $44.3 million.  On February 24, 2000, the Company acquired FNB Tarpon Springs which, as of June 30, 2001, had total assets approximating $28.8 million.



The Company opened for business in 1990 with $3.4 million in its capital accounts.  By June 30, 2001, the capital accounts had increased to $18.7 million through the sale of additional stock and through retained earnings.  As evidenced by the table below, all three subsidiary banks are well capitalized.



|Bank                                      | LeverageRatio  | Minimum
RegulatoryGuidelines | Risk
WeightedRatio | Minimum
RegulatoryGuidelines
|----------------------------------------- | -------------- | ---------------------------- | ------------------ | ----------------------------
|CNB Ashburn
CNB St. Marys
FNB Tarpon Spgs | 7.5%
9.0%
9.0% | 4.0%
4.0%
4.0%               | 10.1%
10.5%
11.7%  | 8.0%
8.0%
8.0%              
|                                          |                |                              |                    |                             



Upon the consummation of the transaction to acquire FNB Tarpon Springs during the fist calendar quarter of the year 2000, the Company borrowed approximately $1.4 million to satisfy the cash consideration needed for the above acquisition as well as to inject $500,000 into FNB Tarpon Springs' capital accounts.  The above obligation was reduced to approximately $1.0 million by the end of the first calendar quarter of the year 2001.  During the second calendar quarter of 2001, the Company refinanced and increased the line of credit to $3.0 million so as to have funds available to meet the subsidiary Banks' growth and for other corporate purposes.  During the second calendar quarter of 2001, the Company injected $250,000 into CNB St. Marys' capital accounts, thereby increasing the balance owed on the line of credit as of June 30, 2001 to approximately $1.25 million.



During the six-month period ended June 30, 2001, total assets increased by $34.2 million to $237.4 million, representing an annualized growth rate of 33.6%.  During the six-month period ended June 30, 2001, cash and cash equivalents decreased by $4.2 million, securities increased by $.6 million, loans increased by $37.8 million, property and equipment decreased by $.2 million, and other assets, including goodwill, decreased by $.3 million.  To fund the above growth, deposits, borrowings and other liabilities increased by $27.5 million, $5.1 million and $0.4 million, respectively.  In addition, the capital accounts, including retained earnings, increased by $1.1 million.



Liquidity is the Company's ability to meet all deposit withdrawals immediately, while also providing for the credit needs of customers.  The June 30, 2001 financial statements evidence a satisfactory liquidity position as total cash and cash equivalents amounted to $11.7 million, representing 4.9% of total assets.  Investment securities amounted to $13.4 million, representing 5.8% of total assets; these securities provide a secondary source of liquidity since they can be converted into cash in a timely manner.  The Banks are members of the Federal Reserve System and are maintaining relationships with several correspondent banks and, thus, could obtain funds on short notice.  The Company's management closely monitors and maintains appropriate levels of interest earning assets and interest bearing liabilities, so that maturities of assets are such that adequate funds are provided to meet customer withdrawals and loan demand.  The Company is not aware of any trends, demands, commitments, events or uncertainties that will result in or are reasonably likely to result in its liquidity increasing or decreasing in any material way.





Results of Operations



For the three-month periods ended June 30, 2001 and 2000, net income amounted to $615,312 and $281,764, respectively.  On a per share basis, diluted earning increased from $.14 for the three-month period ended June 30, 2000, to $.31 for the three-month period ended June 30, 2001.  Basic earnings per share increased from $.16 for the three-month period ended June 30, 2000, to $.34 for the three-month period ended June 30, 2001.  Earnings increased significantly when comparing the three-month period ended June 30, 2001, with the three-month period ended June 20, 2000, largely due to the following factors:

1. During the three-month period ended June 30, 2000, the Company incurred expenses associated with the acquisition of FNB Tarpon Springs, which expenses were not recurring during the three-month period ended June 30, 2001.
2. FNB Tarpon Springs has increased its asset base and profitability since its acquisition.  Operations are streamlined and the loan portfolio is undergoing a transformation in its mix, moving from mortgage-based lending to commercial-based lending.
3. CNB St. Marys had been operational for only six months when the quarter ended June 30, 2000 began.  At that time, it had not reached profitable economies of scale and was losing money due to its then small revenue base and operational inefficiencies, all of which are common among start-up financial institutions.  In contrast, by the beginning of the quarter ended June 30, 2001, CNB St. Marys' revenue base had increased significantly and its operational efficiencies improved, helping to bring it into profitability.
4. CNB Ashburn, the Company's principal subsidiary, evidenced a significant increase in both its assets base and profitability.  Assets grew mainly due to growth in its Cordele, Georgia branch while profitability increased as a result of higher net interest income and improved operational efficiencies.



For the six-month periods ended June 30, 2001 and 2000, net income amounted to $1,116,094 and $499,233, respectively.  On a per share basis, diluted earnings increased from $.26 for the six-month period ended June 30, 2000, to $.57 for the six-month period ended June 30, 2001.  Basic earnings per share increased from $.29 for the six-month period ended June 30, 2000, to $.61 for the six-month period ended June 30, 2001.  Below is a more detailed discussion concerning results of operations for the six-month periods ended June 30, 2001 and 2000.

1. Earning assets have increased from $169.1 million at June 30, 2000, to $223.8 million at June 30, 2001.  As a consequence, net interest income, which represents the difference between interest received on interest earning assets and interest paid on interest bearing liabilities, has increased from $3,678,145 to $5,263,814 for the same period one year later, representing an increase of $1,585,669, or 43.1%.
2. Net yield on earning assets increased from 5.06% for the six-month period ended June 30, 2000, to 5.11% for the six-month period ended June 30, 2001.  The reason for the increase in the net yield on earning assets is due to the fact that the yield on earning assets increased from 10.06% during the six-month period ended June 30, 2000, to 10.70% during the six-month period ended June 30, 2001.  Net yield on earning assets was attained despite an increase in the cost of funds, from 4.96% during the six-month period ended June 30, 2000 to 5.76% during the six-month period ended June 30, 2001.
3. Other income increased from $668,095 for the six-month period ended June 30, 2000, to $737,576 for the six-month period ended June 30, 2001.  The above increase of $69,481 represents a 10.4% improvement.  This increase is primarily due to increased activity in transactional accounts due to a higher deposit base, as well as to increases in the fee structure.  As a percent of total assets, other income declined from .72% for the six-month period ended June 30, 2000, to .62% for the six-month period ended June 30, 2001.
4. Other operating expenses increased from $3,044,186 for the six-month period ended June 30, 2000, to $3,591,296 for the six-month period ended June 30, 2001.  The above increase amounting to $547,110 represents an increase of 18.0%.  The primary reasons for the increase are expenses associated with building the infrastructure necessary to support the growth and profitability of CNB St. Marys and FNB Tarpon Springs.  As a percent of total assets, other operating expenses declined from 3.30% for the six-month period ended June 30, 2000, to 3.02% for the six-month period ended June 30, 2001.



At June 30, 2001, the allowance for loan losses amounted to $2.99 million, or 1.46% of gross loans.  At December 31, 2000, the allowance amounted to $2.58 million, or 1.58% of gross loans.  While the allowance for loan losses is increasing, it is declining as a percent of the gross loans outstanding as the growth in loans is out-pacing the growth in the allowance.  Management, however, considers the allowance for loan losses to be adequate and sufficient to absorb possible future losses; however, there can be no assurance that charge-offs in future periods will not exceed the allowance for loan losses or that additional provisions to the allowance will not be required.



The Company is not aware of any current recommendation by the regulatory authorities which, if they were to be implemented, would have a material effect on the Company's liquidity, capital resources, or results of operations.

PART II - OTHER INFORMATION

|Item 1 | Legal Proceedings.
|------ | ------------------

There are no material pending legal proceedings to which the Company or the Bank is a party or of which any of their property is the subject.

|Item 2 | Changes in Securities.
|------ | ----------------------

(a)	None.
	(b)	None.

|Item 3 | Defaults Upon Senior Securities.
|------ | --------------------------------

None.

|Item 4 | Submission of Matters to a Vote of Security Holders.
|------ | ----------------------------------------------------

At the annual meeting of the shareholders, which took place on May 9, 2001, the only matter voted upon was election of directors.  Management solicited proxies with respect to this matter, which solicitation was not opposed.  All of the incumbent directors were nominated and re-elected.  The number of votes cast for the election was 1,173,228, against the election was 21,068, with no abstentions and broker non-votes.

|Item 5 | Other Information.
|------ | ------------------

None.

|Item 6 | Exhibits and Reports on Form 8-K.
|------ | ---------------------------------

(a)	Exhibits:
		None

(b)	Reports on Form 8-K.
		Registrant filed no reports on Form 8-K during the quarter ended July 30, 2001.



SIGNATURES

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.

|Date: August 6, 2001 | Community National Bancorporation
(Registrant)
By: /S/ T. Brinson Brock,	T. Brinson Brock
President and Chief Executive Officer
(Principal Executive, Financial and 
Accounting Officer)
|-------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------