UNITED STATES
                     SECURITIES AND EXCHANGE COMMISSION
                           WASHINGTON, D.C. 20549
                ___________________________________________

                                 FORM 10-QSB

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

                For the quarterly period ended March 31, 2005.

[ ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                       SECURITIES EXCHANGE ACT OF 1934

                 For the transition period from _____ to _____

                         Commission File No. 0-25437

                       COMMUNITY NATIONAL BANCORPORATION
               ------------------------------------------------
        (Exact name of small business issuer as specified in its charter)

                Georgia                            58-1856963
         ----------------------        ----------------------------------
        (State of Incorporation)      (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.

      As of May 12, 2005, the issuer had outstanding 2,008,595 shares of Common
Stock, no par value.

      Transitional Small Business Disclosure Format    Yes        No  X
                                                           ----      ----


                            PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS
-----------------------------

                      COMMUNITY NATIONAL BANCORPORATION
                              ASHBURN, GEORGIA
                         CONSOLIDATED BALANCE SHEETS

                                  ASSETS
                                  ------
                                                      (Unaudited)    (Audited)
                                                       March 31,    December 31,
                                                         2005           2004
                                                         ----           ----
Cash and due from banks                             $  2,056,225   $  1,136,527
Federal funds sold                                     7,452,000     11,504,000
                                                     -----------    -----------
Total Cash and Cash Equivalents                        9,508,225     12,640,527
Securities:
Available for sale, at fair values                     9,668,390     10,568,640
Loans, net                                           110,039,419    110,319,197
Property and equipment, net                            2,525,906      2,548,750
Other real estate owned                                  679,611        536,892
Other assets                                           2,396,298      2,551,309
                                                     -----------    -----------
Total Assets                                        $134,817,849   $139,165,315
                                                     ===========    ===========

                    LIABILITIES AND SHAREHOLDERS' EQUITY
                    ------------------------------------
Liabilities:
Deposits
  Non-interest bearing deposits                     $ 10,082,021   $ 12,346,906
  Interest bearing deposits                          106,374,575    108,493,349
                                                     -----------    -----------
  Total deposits                                     116,456,596    120,840,255

Other liabilities                                        627,314        463,932
                                                     -----------    -----------
  Total Liabilities                                 $117,083,910   $121,304,187
                                                     -----------    -----------

Commitments and contingencies

Shareholder's Equity:
Preferred stock, no par value,
  10,000,000 shares authorized,
  0 shares issued and outstanding                   $     -  -     $     -  -
Common stock, no par value,
  50,000,000 shares authorized,
  2,008,595 shares issued and outstanding             11,488,452     11,488,452
Retained earnings                                      6,317,692      6,324,343
Unrealized gain (loss) on securities, net                (72,205)        48,333
                                                     -----------    -----------
  Total Shareholders' Equity                        $ 17,733,939   $ 17,861,128
                                                     -----------    -----------
Total Liabilities and Shareholders' Equity          $134,817,849   $139,165,315
                                                     ===========    ===========


            Refer to notes to the consolidated financial statements.



                    COMMUNITY NATIONAL BANCORPORATION
                           ASHBURN, GEORGIA
               UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

                                                       For the quarter ended
                                                             March 31,
                                                    ---------------------------
                                                         2005           2004
                                                         ----           ----
Interest income                                     $  2,236,148   $  2,548,653
Interest expense                                         632,338        812,871
                                                     -----------    -----------
Net interest income                                    1,603,810      1,735,782

Provisions for possible loan losses                      475,000        590,000
                                                     -----------    -----------

Net interest income
 after provisions for possible loan losses             1,128,810      1,145,782
                                                     -----------    -----------

Other Income:
Service charges                                          206,309        248,684
Other fees                                                80,002         37,639
Loss on sale of other real estate owned                   (1,228)       (14,682)
Gain (loss) on settlement
 of assets and securities                                 27,341         (4,359)
                                                     -----------    -----------
Total other income                                       312,424        267,282
                                                     -----------    -----------

Salaries and benefits                                    692,632        822,821
Advertising and business development                      20,659         17,758
Repairs and maintenance                                   36,783         48,186
Depreciation and amortization                             45,573         73,048
Legal and professional                                    80,436        122,780
Data processing                                           56,076         83,660
Regulatory fees and assessments                           35,207         46,309
Other operating expenses                                 241,577        331,059
                                                     -----------    -----------
Total other expenses                                   1,208,943      1,545,621
                                                     -----------    -----------

Net income (loss) before taxes                           232,291       (132,557)
Income tax (benefit)                                      38,102        (42,863)
                                                     -----------    -----------

Net income/(loss)                                   $    194,189   $    (89,694)
                                                     ===========    ===========

Basic income/(loss) per share                       $       0.10   $      (0.04)
                                                     ===========    ===========

Diluted income/(loss) per share                     $       0.10   $      (0.04)
                                                     ===========    ===========


           Refer to notes to the consolidated financial statements.




                     COMMUNITY NATIONAL BANCORPORATION
                             ASHBURN, GEORGIA
              UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                       For the quarter ended
                                                             March 31,
                                                    ---------------------------
                                                         2005           2004
                                                         ----           ----
Cash flows from operating activities                $  1,033,098   $    807,145
                                                     -----------    -----------

Cash flows from investing activities:
  (Increase) in other real estate owned             $   (142,719)  $   (176,711)
  Securities, available-for-sale:
    Purchase of securities                                -  -       (4,500,000)
    Maturity and paydowns                                779,769      6,580,000
  (Increase) in loans, net                              (195,222)     1,663,717
  Purchase of property and equipment                     (22,729)       (13,409)
                                                     -----------    -----------
    Net cash provided by investing activities       $    419,099   $  3,553,597
                                                     -----------    -----------

Cash flows from financing activities:
  Payment of dividends                              $   (200,840)  $     -  -
  Decrease in customers' deposits                     (4,383,659)    (9,315,350)
                                                     -----------    -----------
    Net cash used for financing activities          $ (4,584,499)  $ (9,315,350)
                                                     -----------    -----------

Net (decrease) in cash and cash equivalents         $ (3,132,302)  $ (4,954,608)
Cash and cash equivalents, beginning of period        12,640,527     27,482,214
                                                     -----------    -----------
Cash and cash equivalents, end of period            $  9,508,225   $ 22,527,606
                                                     ===========    ===========


               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 MARCH 31, 2004 AND 2005


                                                        Accumulated
                                                           Other
                   Common Stock       Preferred           Compre-
                 ------------------    Stock    Retained  hensive
                 Shares    Zero Par   Zero Par  Earnings   Income    Total
                 ------    --------   --------  --------   ------    -----

Balance,
 December 31,
 2003           2,008,595 $11,488,452 $615,000 $6,171,500 $120,395 $18,395,347
                ---------  ----------  -------  ---------  -------  ----------

Comprehensive Income:
---------------------
Net (loss),
 three-month
 period ended
 March 31, 2004    - -         - -       - -      (89,694)  - -        (89,694)

Net unrealized
 gain on
 securities,
 three-month
 period ended
 March 31, 2004    - -         - -       - -       - -      31,593      31,593
                ---------  ----------  -------  ---------  -------  ----------

Total
 comprehensive
 income            - -         - -       - -      (89,694)  31,593     (58,101)
                ---------  ----------  -------  ---------  -------  ----------

Balance,
 March 31,
 2004           2,008,595 $11,488,452 $615,000 $6,081,806 $151,988 $18,337,246
                =========  ==========  =======  =========  =======  ==========

-------------------------------------

Balance,
 December 31,
 2004           2,008,595 $11,488,452 $  - -   $6,324,343 $ 48,333 $17,861,128
                ---------  ----------  -------  ---------  -------  ----------

Comprehensive Income:
---------------------
Net income,
 three-month
 period ended
 March 31, 2005    - -         - -       - -      194,189   - -        194,189

Net unrealized
 loss on
 securities,
 three-month
 period ended
 March 31, 2005    - -         - -       - -       - -    (120,538)   (120,538)
                ---------  ----------  -------  ---------  -------  ----------

Total
 comprehensive
 income            - -         - -       - -      194,189 (120,538)     73,651

Dividends paid     - -         - -       - -     (200,840)  - -       (200,840)
                ---------  ----------  -------  ---------  -------  ----------

Balance,
 March 31,
 2005           2,008,595 $11,488,452 $  - -   $6,317,692 $(72,205)$17,733,939
                =========  ==========  =======  =========  =======  ==========


           Refer to notes to the consolidated financial statements.



                         COMMUNITY NATIONAL BANCORPORATION
                                 ASHBURN, GEORGIA
                     NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
                                  MARCH 31, 2005


NOTE 1 - BASIS OF PRESENTATION

     The accompanying financial statements have been prepared in accordance with
generally accepted accounting principles for interim financial information and
with the instructions to Form 10-QSB.  Accordingly, they do not include all the
information and footnotes required by generally accepted accounting principles
for complete financial statements.  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, 2005 are not necessarily indicative of the results that
may be expected for the year ending December 31, 2005.  These statements should
be read in conjunction with the consolidated financial statements and footnotes
thereto included in Form 10-KSB for the year ended December 31, 2004.

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").  CNB was capitalized
with approximately $3.4 million when it commenced operations in August 1990.
During 1998, the Company issued and sold 400,000 shares of its common stock at
$10.00 per share.  The public offering yielded approximately $4 million, all of
which was invested in 1999, in a de novo bank, Cumberland National Bank, St.
Mary's, Georgia ("Cumberland").  In February 2000, the Company purchased Tarpon
Financial Corporation, Tarpon Springs, Florida, a one-bank holding company with
respect to First National Bank, Tarpon Springs, Florida ("Tarpon").  During
calendar years 2003 and 2004, the Company sold Cumberland and Tarpon,
respectively, to unrelated third parties, leaving the Company with CNB as its
sole subsidiary bank.  CNB was chartered by and is currently regulated by the
Office of the Comptroller of the Currency (the "OCC").  CNB primarily engages
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 - INVESTMENT SECURITIES

      Information pertaining to securities with gross unrealized losses at March
31, 2005, aggregated by investment category and further segregated by the length
of time (less than or over twelve months) that the securities have been in a
continuous loss position follows:

                         Less than             Over
                       Twelve Months       Twelve Months             Total
                    -------------------  -----------------    ------------------
                    Fair     Unrealized  Fair   Unrealized    Fair    Unrealized
Description         Value       Loss     Value     Loss       Value      Loss
-----------         -----       ----     -----     ----       -----      ----
U.S. Agency and
 Government
 Corporations     $6,317,656 $(182,344) $984,375 $(15,625) $7,302,031 $(197,969)
                   =========  ========   =======  =======   =========  ========

      At March 31, 2005, unrealized losses in the securities portfolio amounted
to $197,969 representing 2.05% of the total portfolio.  All of the unrealized
losses relate to U.S. Agency securities and securities of U.S. government
corporations.  These unrealized losses were caused by fluctuations in market
interest rates, rather than concerns over the credit quality of the issuers.
The Company believes that the U.S. Agencies and government corporations will
continue to honor their interest payments on time as well as the full debt at
maturity.  Because the unrealized losses are due to fluctuations in the interest
rate, and no credit-worthiness factors exist, the Company believes that the
investments are not considered other-than-temporarily impaired.


NOTE 4 - RECENT ACCOUNTING PRONOUNCEMENTS

      EXCHANGES OF NONMONETARY ASSETS:  In December 2004, the FASB issued SFAS
153, "Exchanges of Nonmonetary Assets", an amendment to APB Opinion No. 29,
"Accounting for Nonmonetary Transactions."  This statement amends the principle
that exchanges of nonmonetary assets should be measured based on the fair value
of the assets exchanged and more broadly provides for exceptions regarding
exchanges of nonmonetary assets that do not have commercial substance.  This
Statement is effective for nonmonetary asset exchanges occurring in fiscal
periods beginning after June 15, 2005.  The adoption of this standard is not
expected to have a material impact on the Company's financial condition, results
of operations, or liquidity.

      SHARE-BASED PAYMENT:  In December 2004, the FASB issued Statement No.
123(R), "Share-Based Payment."  Statement No. 123(R) requires companies to
recognize in the income statement the grant-date fair value of stock options
and other equity-based compensation issued to employees.  The revised Statement
generally requires that companies account for these share-based transaction
using the fair-value-based method, and eliminates a company's ability to account
for these transactions using the intrinsic value method of accounting in APB
Opinion No. 25.  For small business issuers, Statement No. 123(R) is effective
as of the beginning of the first interim or annual reporting period that begins
after December 15, 2005.  The Company has not yet determined the exact impact
the new standard will have on its consolidated financial statements.  The above
disclosures, as required by FASB Statement No. 148, "Accounting for Stock-Based
Compensation-Transition and Disclosure-an amendment of FASB Statement No. 123,"
provide detail as to its results of operations as if it had applied the fair
value based method and recognition provisions of Statement No. 148 to stock-
based employee compensation to the current reporting periods.

      MEANING OF OTHER THAN TEMPORARY IMPAIRMENT:  In March 2004, the Financial
Accounting Standards Board (FASB) Emerging Issues Task Force (EITF) released
Issue 03-01, "Meaning of Other Than Temporary Impairment," which addressed
other-than-temporary impairment for certain debt and equity investments.  The
recognition and measurement requirements of Issue 03-01, and other disclosure
requirements not already implemented, were effective for periods beginning after
June 15, 2004.  In September 2004, the FASB staff issued FASB Staff Position
(FSP) EITF 03-1-1, which delayed the effective date for certain measurement and
recognition guidance contained in Issue 03-01.  The FSP requires the application
of pre-existing other-than-temporary guidance during the period of delay until
a final consensus is reached.  Management does not anticipate the issuance of
the final consensus will have a material impact on the Company's financial
condition, results of operations, or liquidity.

      LOAN COMMITMENTS:  On March 9, 2004, the SEC issued Staff Accounting
Bulletin 105 (SAB 105), "Application of Accounting Principles to Loan
Commitment" stating that the fair value of loan commitments is to be accounted
for as a derivative instrument under SFAS 133, but the valuation of such
commitment should not consider expected future cash flows related to servicing
of the future loan.

      The Company adopted the provisions of SAB 105 as of January 1, 2004.
Adoption of SAB 105 did not result in a material impact on the Company's
financial condition, results of operations, or liquidity.

      ACCOUNTING FOR CERTAIN LOANS OR DEBT SECURITIES ACQUIRED IN A TRANSFER:
In December 2003, the American Institute of Certified Public Accountants issued
Statement of Position (SOP) 03-3, "Accounting for Certain Loans or Debt
Securities Acquired in a Transfer."  SOP 03-3 requires acquired loans, including
debt securities, to be recorded at the amount of the purchaser's initial
investment and prohibits carrying over valuation allowances from the seller for
those individually-evaluated loans that have evidence of deterioration in credit
quality since origination, and it is probable all contractual cash flows on the
loan will be unable to be collected.  SOP 03-3 also requires the excess of all
undiscounted cash flows expected to be collected at acquisition over the
purchaser's initial investment to be recognized as interest income on a level-
yield basis over the life of the loan.  Subsequent increases in cash flows
expected to be collected are recognized as impairment.  Loans carried at fair
value, mortgage loans held for sale, and loans to borrowers in good standing
under revolving credit agreements are excluded from the scope of SOP 03-3.  The
guidance is effective for loans acquired in fiscal years beginning after
December 15, 2004 and is not expected to have a material impact on the Company's
financial condition, results of operations, or liquidity.

      ACCOUNTING FOR CERTAIN FINANCIAL INSTRUMENTS WITH CHARACTERISTICS OF BOTH
LIABILITIES AND EQUITY:  In May 2003, the FASB issued SFAS 150, "Accounting for
Certain Financial Instruments with Characteristics of Both Liabilities and
Equity."  This statement establishes standards for classifying and measuring
certain financial instruments that embody obligations of the issuer and have
characteristics of both liabilities and equity.    The provisions of SFAS 150
became effective June 1, 2003, for all financial instruments created or modified
after May 31, 2003, and otherwise became effective as of July 1, 2003.  The
adoption of this standard did not have a material impact on the Company's
financial condition, results of operations, or liquidity.

      In December 2003, the FASB deferred for an indefinite period the
application of the guidance in SFAS 150 to noncontrolling interest that are
classified as equity in the financial statement of a subsidiary but would be
classified as a liability in the parent's financial statements under SFAS 150.
The deferral is limited to mandatorily redeemable noncontrolling interest
associated with finite-lived subsidiaries.  Management does not believe any
such applicable entities exist as of March 31, 2005, but will continue to
evaluate the applicability of this deferral to entities which may be
consolidated as a result of FASB Interpretation No. 46 (FIN 46), "Consolidation
of Variable Interest Entities."

      CONSOLIDATION OF VARIABLE INTEREST ENTITIES:  In January 2003, the FASB
issued FIN 46, which provides guidance on how to identify a  variable interest
entity (VIE) and determine when the assets, liabilities, noncontrolling
interests, and the results of operations of a VIE are to be included in an
entity's consolidated financial statements.  A VIE exists when either the total
equity investment is at risk is not sufficient to permit the entity to finance
its activities itself, or the equity investors lack one of three characteristics
associated with owning a controlling financial interest.  Those characteristics
include the direct and indirect ability to make decisions about the entity's
activities through voting rights or similar rights, the obligation to absorb the
expected losses of an entity if they occur, or the right to receive the expected
residual returns of the entity if they occur.

      In December 2003, the FASB reissued FIN 46 with certain modifications and
clarifications.  Application of this guidance was effective for interests in
certain VIEs commonly referred to as special-purpose entities (SPEs) as of
December 31, 2003.  Application for all other types of entities was required as
of March 31, 2004, unless previously applied.  Adoption of FIN 46 did not result
in a material impact on the Company's financial condition, results of
operations, or liquidity.


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

      The purpose of the disclosure in this section is to convey information
relating to the financial condition and results of operations of the Company
that may not be readily apparent from a review of the consolidated financial
statements and the notes thereto appearing elsewhere in this report.  The
following discussion of the Company's financial condition and results of
operations should be read in conjunction with the Company's consolidated
financial statements and related notes.

      Certain statements that the Company may make from time to time, including
statements contained in this report constitute "forward-looking statements"
within the meaning of the federal securities laws.  Forward-looking statements
include all statements other than statements of historical fact, and  may
sometimes be identified by words such as "estimate," "plan," "intend," "expect,"
"anticipate," "believe," "will" and similar expressions used in conjunction
with, among other things, discussions of plans, objectives, future operations,
financial performance or other events.  Such forward-looking statements are not
guarantees of future performance and are subject to risks and uncertainties.
Factors that could cause the actual results to differ materially from those
expressed in any forward-looking statement made by, or on behalf of, the Company
include the following, some of which are described in greater detail in this
report: (i) the effect of changes in laws and regulations, including federal and
state banking laws and regulations, with which the Company or its subsidiary
banks must comply, and the associated costs of compliance with such laws and
regulations either currently or in the future; (ii) the effect of changes in
accounting policies and practices, as may be adopted by the regulatory agencies
as well as by the Financial Accounting Standards Board, or of changes in the
Company's organization, compensation and benefit plans; (iii) the effect on the
Company's competitive position within its market area of the increasing
consolidation within the banking and financial services industries, including
the increased competition from larger regional and out-of-state banking
organizations as well as non-bank providers of various financial services;
(iv) the inability of the Company or CNB to comply with the terms of their
agreements with banking regulators; (v) the effect of changes in interest rates;
and (vi) the effect of changes in the business cycle and downturns in local,
regional or national economies.

      The foregoing list of important factors is not exclusive.  Readers are
cautioned not to place undue reliance on any forward-looking statements.
The Company does not undertake to update any forward-looking statement, whether
written or oral, that it or its agents may make from time to time.


CRITICAL ACCOUNTING POLICIES

      The Company has adopted various accounting policies which govern the
application of accounting principles generally accepted in the U.S. in the
preparation of financial statements.  The Company's significant accounting
policies are described in Note 2 to the Company's consolidated financial
statements included in its Form 10-KSB for the fiscal year ended December 31,
2004.  Certain accounting policies require the Company to make significant
assumptions and estimates, the use of which has a material impact on the
carrying value of certain assets and liabilities, and could potentially result
in materially different financial results under different assumptions and
conditions.  For further discussion of the accounting policies that management
believes are the most critical upon which the Company's financial condition
depends, and which involve the most complex or subjective decisions or
assessments, see the discussion of critical accounting policies under
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" in the Company's Form 10-KSB for the fiscal year ended December 31,
2004.


RESULTS OF OPERATIONS

      THREE MONTHS ENDED MARCH 31, 2005 COMPARED TO THREE MONTHS ENDED MARCH 31,
2004

      For the three-month period ended March 31, 2005, net income amounted to
$194,189, or $.10 per share, both basic and diluted.  For the three-month period
ended March 31, 2004, the Company had a net loss of $89,694, or $(0.04) per
share, both basic and diluted.  The increase in net income was primarily
attributable to a decrease of $115,000 in provision for loan losses; a decrease
of approximately $336,678 in operating expenses and an increase of approximately
$45,142 in non-interest income.


      NET INTEREST INCOME

      The Company's results of operations are determined by its ability to
effectively manage interest income and expense, minimize loan and investment
losses, generate non-interest income, and control non-interest expense.  Since
interest rates are determined by market forces and economic conditions beyond
the control of the Company, the ability to generate net interest income is
dependent upon the Company's ability to maintain an adequate spread between the
rate earned on earning assets and the rate paid on interest-bearing liabilities,
such as deposits and borrowings. Thus, net interest income is a key performance
measure for the Company.

      Net interest income, before provision for possible loan losses, was $1.6
million for the three-month period ended March 31, 2005 as compared to $1.7
million for the corresponding period ended March 31, 2004.  For the three-month
period ended March 31, 2005, the Company's average earning assets were $129.7
million as compared to $162.0 million for the three-month period ended March 31,
2004, a decrease of $32.3 million.  Earning assets include federal funds sold,
securities and net loans.  Approximately $23.3 million of the above $32.3
million decrease is attributable to the sale of Tarpon in October 2004, and
approximately $9.0 million is a result of loan reductions at CNB, as the
Company continues its efforts to reduce higher-risk loans and strengthen
the quality of its loan portfolio.

      Due to the decrease in average earning assets of approximately $32.3
million, gross interest income declined from $2.5 million for the three
months ended March 31, 2004 to $2.2 million for the three months ended March 31,
2005.  Interest expense declined from $0.8 million for the three months ended
March 31, 2004 to $0.6 million for the three months ended March 31, 2005, due
to a decrease in interest-bearing liabilities.  Interest-bearing deposits
averaged $107.5 million for the three-month period ended March 31, 2005 as
compared to $141 million for the comparable period ended March 31, 2004.

      Average net interest yield is computed by subtracting interest expense
from interest income and dividing the resulting figure by average earning assets
for the periods in question.  Net yield on average earning assets for the
periods ended March 31, 2005 and March 31, 2004 was 4.94% and 4.30%,
respectively.  The increase in net interest yield is primarily attributable to
the increase in yield on earning assets, from 6.30% for the three-month period
ended March 31, 2004 to 6.90% for the three month period ended March 31, 2005.
The increase in the yield exceeded the increase in the cost of funds , from
2.31% for the period ended March 31, 2004 to 2.35% for the period ended March
31, 2005.

      PROVISION FOR LOAN LOSSES

      The provision for loan losses during the three-month period ended March
31, 2005 was $475,000, as compared to $590,000 for the three-month period ended
March 31, 2004.  Net charge-offs for the three-month periods ended March 31,
2005 and 2004 amounted to $719,395 and $643,810, respectively.

      Management will continue to focus on reducing the Company's risk profile
and increasing the quality of its assets rather than on growth.

      As of March 31, 2005, the Company's allowance for loan losses amounted to
$1,840,405, or 1.64% of gross loans, as compared to $2,084,800, or 1.85% of
gross loans as of December 31, 2004.  Management considers the allowance for
loan losses to be adequate to absorb 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.


      NON-INTEREST INCOME

      Non-interest income increased from approximately $267,000 during the
three-month period ended March 31, 2004 to $312,000 during the three-month
period ended March 31, 2005.  The primary cause of this increase was due to
gains on settlement of securities and to miscellaneous fees.  As a percentage
of average assets, non-interest income increased from 0.61% for the three-month
period ended March 31, 2004 to 0.71% for the three-month period ended March 31,
2005.

      NON-INTEREST EXPENSE

      Non-interest expense declined from $1.5 million for the three-month period
ended March 31, 2004 to $1.2 million as of March 31, 2005, primarily due to the
sale of Tarpon and the continuing contraction in the Company's size.  As a
percentage of average assets, non-interest expense decreased from 3.51% during
the three-month period ended March 31, 2004 to 2.75% during the three-month
period ended March 31, 2005.  Expense items with the largest decline included
salaries, benefits, legal and professional, depreciation and data processing.


LIQUIDITY

      Liquidity represents the ability to provide steady sources of funds for
loan commitments and investment activities, as well as to maintain sufficient
funds to cover deposit withdrawals and payment of debt and operating
obligations.  Below are the pertinent liquidity balances and ratios as of March
31, 2005 and December 31, 2004:

                                             March 31,    December 31,
                                               2005           2004
                                               ----           ----
                                              (Dollars in thousands)
      Cash and cash equivalents               $9,508         $12,461
      CDs, over $100,000
         to total deposits ratio               15.0%           20.7%
      Loan to deposit ratio                    94.5%           91.3%
      Securities to total assets ratio          7.2%            7.6%
      Brokered deposits                         --              --

      Cash and cash equivalents are the Company's primary source of liquidity,
and securities available for sale represent a secondary source of liquidity.
The Company's management monitors appropriate levels and maturities of earning
assets and interest-bearing liabilities to ensure that adequate funds are
available to meet customer withdrawals and loan demand.  The Company is not
aware of any trends or other uncertainties that are reasonably likely to have
a material adverse effect on the Company's liquidity.


CAPITAL ADEQUACY

      The Company opened for business in 1990 with $3.4 million in its capital
accounts.  By March 31, 2005, the capital accounts had increased to $17.7
million through the sale of additional common stock and through retained
earnings.  As evidenced by the table below, CNB complies with the minimum
capital guidelines for "well capitalized" banks.  Below are the capital
ratios of CNB, as well as the minimum capital guidelines for "well capitalized"
banks.

                                                            Minimum
                                                           Regulatory
                                      March 31, 2005       Requirement
                                      --------------       -----------
   CNB
   ---
     Tier 1 Capital Ratio                  14.1%               4.0%
     Total Risk-Based Capital Ratio        15.3%               8.0%
     Leverage Ratio                        11.0%               4.0%

   Company--Consolidated
   ---------------------
     Tier 1 Capital Ratio                  16.5%               4.0%
     Total Risk-Based Capital Ratio        17.7%               8.0%
     Leverage Ratio                        12.9%               4.0%

      CNB is subject to an informal agreement with the OCC which imposes higher
minimum capital ratios, including a risk-based Tier 1 capital ratio of at least
10.0%, and a total risk-based capital ratio of at least 11.0%.

      During the three-month period ended March 31, 2005, total assets decreased
by $4.5 million, to $134.7 million.  This decline in assets was effected by
management in order to achieve higher capital ratios and higher quality of
assets.  During the three-month period ended March 31, 2005, cash and cash
equivalents decreased by $3.1 million, to $9.5 million; securities decreased
by $0.9 million, to $9.7 million; loans decreased by $0.3 million to $110.3
million; and other assets declined by $0.2 million to $5.6 million.  To
accommodate the decline in assets, deposits declined by $4.4 million to $116.5
million and the capital accounts decreased by $0.1 million to $17.7 million.


OFF-BALANCE SHEET ARRANGEMENTS

      In the normal course of business, the Company has outstanding various
commitments to extend credit in the form of unused loan commitments and standby
letters of credit that are not reflected in the Company's consolidated financial
statements.  Since these commitments may expire without being exercised, these
commitments do not necessarily represent future funding requirements.  The
Company uses the same credit and collateral policies in making commitments as
those it uses in making loans.

      As of March 31, 2005, the Company had outstanding unused loan commitments
of approximately $10.2 million.  There were no letters of credit outstanding at
March 31, 2005.  Various assets collateralize the majority of these commitments.
The Company does not anticipate that it will suffer any material losses as a
result of these transactions.

ITEM 3.  CONTROLS AND PROCEDURES
--------------------------------

      Management has developed and implemented a policy and procedures for
reviewing disclosure controls and procedures and internal controls over
financial reporting on a quarterly basis.  Management, including the Chief
Executive Officer (the Company's principal executive and financial officer),
evaluated the effectiveness of the design and operation of disclosure controls
and procedures as of March 31, 2005 and, based on their evaluation, the
Company's Chief Executive Officer concluded that the Company's controls and
other procedures that are designed to ensure that information required to be
disclosed by the Company in the reports that it files or submits under the
Securities Exchange Act is recorded, processed, summarized and reported, within
the time periods specified in the Securities and Exchange Commission's rules and
forms.  Disclosure controls and procedures include, without limitation, controls
and procedures designed to ensure that information required to be disclosed by
the Company in the repots that it files under the Securities Exchange Act is
accumulated and communicated to management, including the principal executive
and financial officers, as appropriate to allow timely decisions regarding
required disclosure.  There were no changes in the Company's internal control
over financial reporting during the Company's last fiscal quarter that have
materially affected, or are reasonably likely to materially affect, the
Company's internal control over financial reporting.



                          PART II - OTHER INFORMATION

ITEM 6.  EXHIBITS.
------------------

The following exhibits are filed with this report:

          31.1 - Certification of Principal Executive and Financial Officer
          pursuant to 18 U.S.C. Section 1350

          32.1 - Certification of Principal Executive and Financial Officer
          pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906
          of the Sarbanes-Oxley Act of 2002



                                    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.

                                COMMUNITY NATIONAL BANCORPORATION
                                 (Registrant)

                                By: /s/Theron G. Reed
                                    -----------------------------
                                    Theron G. Reed
                                    President and Chief Executive Officer
                                    (Principal Executive, Financial and
                                     Accounting Officer)

Date: May 12, 2005