UNITED  STATES
                     SECURITIES  AND  EXCHANGE  COMMISSION
                          Washington,  D.C.  20549
                                     FORM  10-K

[X] Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act
of  1934
       For  the  fiscal  year  ended  December  31,  1999

[  ]  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  of Incorporation)        (IRS Employer Identification No.)

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

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

Securities  registered  pursuant  to  Section  12(b)  of  the  Act:  NONE

Securities  registered  pursuant  to  Section  12(g)  of  the  Act:

                              240,000  shares  $50  par  common
                              ---------------------------------
                                    (Title  of  class)

  Indicate  by  check mark whether the registrant (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
registrant was required to file such reports),  and (2)  been  subject  to  such
filing requirements for the past 90 days. Yes   [X] No   [  ]

  Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
Of Regulation S-K is not  contained  herein,  and  will not be contained, to the
best  of  Registrant's  knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form  10-K.  Yes   [X]      No   [  ]

Aggregate  market  value  of  the  voting  stock  held  by non-affiliates of the
Registrant  as  of  January  31,  2000.

     Common  Stock,  $50.00  par  value  -  described  on  page 8 of 1999 Annual
     Report  and Common Stock Data disclosed on page 31 of the Annual Report are
     incorporated  herein  by  reference.

     Number  of  shares  outstanding  of the Registrant's shares of common stock
     as  of  January  31,  2000.  158,483 shares, common stock, $50.00 par value

     The  Company's  stock  is  not  actively  traded  nor  is  it traded in the
     over-the- counter  market.  In  addition, it is not listed with a national
     securities exchange.

     Due  to the limited number of transactions, the weighted average sale price
     disclosed  on  page  31  of  the Annual Report may not be indicative of the
     actual market  value  of  the  Company's  stock.





                                                            Page  1
<PAGE>

                        Documents  Incorporated  by  Reference
                      ---------------------------------------------------

Portions  of  the Registrant's Annual Report to Shareholders for the fiscal year
ended  December  31,  1999  are  incorporated  by reference into Parts I and II.

Portions  of  the Registrant's Definitive Proxy Statement relating to the Annual
Meeting  of  Shareholders  held  on March 15, 2000 are incorporated by reference
into  Part  III.


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

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






























                                                            Page  2
<PAGE>

<TABLE>

<CAPTION>

     CANANDAIGUA  NATIONAL  CORPORATION
     FORM  10-K
     INDEX


Page No.
PART I.
<S>                                                                  <C>

Item 1.  Business                                                      4

Item 2.  Properties                                                   18

Item 3.  Legal Proceedings                                            20

Item 4.  Submission of Matters to a Vote of
             Security Holders                                         20

PART II.
Item 5.  Market for the Registrant's Common Stock
              and Related Security Holder Matters                     20

Item 6.  Selected Financial Data                                      20

Item 7.  Management's Discussion and Analysis of
             Financial Condition and Results of Operation             20

Item 7A. Quantitative and Qualitative Disclosures About Market Risk   24

Item 8.  Financial Statements and Supplementary Data                  29

Item 9.  Changes in and Disagreements with Accountants on Accounting
          and Financial Disclosure                                    29

PART III.
Item 10. Directors and Executive Officers of
          the Registrant                                              29

Item 11. Executive Compensation                                       30

Item 12. Security Ownership of Certain
              Beneficial Owners and Management                        30

Item 13. Certain Relationships and Related Transactions               31

PART IV.
Item 14. Exhibits, Financial Statement
          Schedules and Reports on Form 8-K                           31

Signatures                                                            33

</TABLE>















                                                            Page  3
<PAGE>

PART  I

Item  1.  Business

Canandaigua  National  Corporation

     The  Canandaigua National Corporation, referred to as The Corporation, is a
one-bank  holding  company  which  builds  lasting  customer  relationships  by
providing  comprehensive  financial  solutions  to individuals, be they building
families  or  businesses.  It  was organized on October 31, 1984, and registered
under  the  Bank  Holding  Company  Act  of  1956, for the purpose of becoming a
one-bank  holding  company.  The  formation  of  the  bank  holding  company was
consummated  on  May  31,  1985,  through  the  exchange  of  80,000  shares  of
Canandaigua  National  Corporation  $50  par  value  common stock for all of the
outstanding  shares  of  The  Canandaigua  National Bank and Trust Company.  The
one-bank  holding  company  serves as a means of increasing the scope of banking
and  financial  services  in  the market area served by The Canandaigua National
Bank and Trust Company. The Corporation acquired 100% of Home Town Funding, Inc.
(HTF)  during  1997.  HTF offers mortgage products that the bank is not licensed
to  offer,  therefore  offering  the  Corporation's  customers a larger range of
products.  HTF  is  engaged in underwriting and funding mortgages in western New
York  State.  HTF  typically  resells  residential  mortgages  to  unaffiliated
entities,  which  service  the loans.  On January 1, 1999 the Corporation merged
the  mortgage  banking  operations  of  HTF and Greater Funding of New York, Inc
(GFNYI),  a mortgage banking company acquired in 1996.  The Bank will remain the
principal  source  of  the  Corporation's  operating  revenue  and  net  income.

The  Canandaigua  National  Bank  and  Trust  Company

     The  Canandaigua  National Bank and Trust Company ("Bank") was incorporated
under  the  laws  of  The  United  States of America as a national bank in 1887.
Since  that  time, the Bank has operated as a national banking association doing
business  at  its main office at 72 South Main Street, Canandaigua, New York and
several  locations  in  Ontario  County  and  Monroe  County,  New  York.

     As  of  December  31,  1999,  Bank  had total assets of $518,369,000; total
capital  of  $37,018,000;  and total deposits of $456,015,000.  Its deposits are
insured  through  the  Bank  Insurance  Fund  by  the  Federal Deposit Insurance
Corporation.

     The  Bank  provides  a  full  range  of  financial  services to its retail,
commercial and municipal customers through a variety of deposit, lending, trust,
investment  and  insurance  products.  These products are delivered by employees
through  a  "life-stage"  marketing  concept,  whereby  customers'  needs  are
anticipated  and  evaluated  based  upon  their life stage (e.g. growing family,
retirement,  college  student,  etc.).  New  products  are developed around this
concept.  These  services  are  delivered  through the Bank's network of sixteen
community  banking  offices,  which  include  drive-up  facilities and automatic
teller  machines,  its  customer  call  center,  the  internet  and other remote
cash-dispensing machines.  The locations and staffing of the Bank's full service
offices  are  described  in  more  detail in Item 2 and on page 34 of the Annual
Report.

     The  Bank's  deposit  services  include  accepting time, demand and savings
deposits,  NOW  accounts, regular savings accounts, money market deposits, fixed
rate  certificates  of  deposit  and  club accounts.  The Bank also provides its
retail  customers  safe-keeping  services  through  the  renting of safe deposit
facilities.

     The Bank's lending services include making secured and unsecured commercial
and consumer loans, financing commercial transactions either directly or through
regional  industrial  development corporations, making construction and mortgage
loans.  Other  services  include  making  residential  mortgage loans, revolving
credit  loans  with  overdraft  checking  protection,  small business loans, and
student  loans.  The Bank's business loans include seasonal, credit, collateral,
and  term  loans.




                                                            Page  4
<PAGE>
Item  1.  Business

The  Canandaigua  National  Bank  and  Trust  Company  (continued)

     Trust  and  investment  services  provided  by the Bank include services as
executor  and  trustee  under  wills and deeds, as guardian and custodian and as
trustee and agent for pension, profit sharing, individual retirement account and
other  employee benefit trusts as well as various investment, pension and estate
planning  services.  Trust  services  also include service as transfer agent and
registrar  of  Canandaigua  National  Corporation  stock and as paying agent for
various  bond  issues  and  as  escrow  agent.

     Since  the  formation  of  its  insurance  subsidiary  in 1995 and upon its
successful  lawsuit  against the New York State Superintendent of Insurance, the
Bank  has been offering a full line of auto, home and life insurance products to
its  customers  through  its  wholly  owned  subsidiary,  CNB  Agency.

      The  Bank  also  administers the assets of the Canandaigua Equity Fund and
the  Canandaigua  Bond  Fund.  [Shares  of  these funds are not bank deposits or
obligations  of,  or guaranteed or endorsed by, any bank, and are not insured by
the  Federal  Deposit  Insurance  Corporation,  the Federal Reserve Board or and
other  agency.  Shares  of  these  funds  may  go  down  in  value.]

      The  Bank  has  a relatively stable deposit base and no material amount of
deposits
are  obtained  from  a  single  depositor.  Historically,  approximately  15% of
average  deposits are placed by local governments in the Bank's business region.
The Bank has not experienced any significant seasonal fluctuations in the amount
of  its  deposits  nor does the Bank rely on foreign sources of funds or income.

Territory  Served

     The  Company's physical market area generally covers western Ontario County
and  Monroe  County  in  New  York  State.  Customers  generally  initiate their
relationship  with  the Bank from this area. However, the Bank conducts business
through  the  internet and by telephone and with payment services such as credit
cards and debit cards, the Bank's customer are served world-wide.  Since the mid
1990's,  the  Bank  expanded  into  Monroe  County  by opening community banking
offices  in  Pittsford  (1995),  Webster/Penfield  (1998),  Greece (1999), Chili
(1999),  Honeoye  Falls  (1999), Perinton (2000), and Irondequoit (2000).  Under
renovation  and  scheduled  for  opening  in  2000  are locations in the City of
Rochester  and  Bushnell's  Basin.

Competition

     The  Company considers its business to be highly competitive in its service
areas.  The Company competes with respect to its lending services, as well as in
attracting  deposits,  with  commercial  banks,  savings banks, savings and loan
associations,  insurance  companies,  regulated  small  loan companies, non-bank
banks,  credit  unions  and investment managers.  The Company also competes with
insurance  companies,  investment  counseling  firms,  mutual  funds  and  other
business  firms  and  individuals  in  corporate trust and investment management
services.

     The Company is generally competitive with all financial institutions in its
service  area  with  respect to interest rates paid on time and savings deposits
and  interest  rates  charged  on loans and service charges on deposit accounts.

     One  measure  of competitive strength is the percentage of deposits held by
an  institution  in  a  geographic  location.  Based  upon  the most recent data
available from the FDIC as of June 30, 1999, the Company's share of deposits for
all  banks  was 36% in Ontario County compared to 35% in 1998.  In Monroe County
the  Bank's share doubled to .6% ($54,228,000) in 1999 from .3% ($25,780,000) in
1998.

Employees

     At  December 31, 1999, the Company had 323 employees of whom 69 worked on a
part-time  basis.  None  of the employees are covered by a collective bargaining
agreement.  The  Company  considers its relations with its employees to be good.
                                                            Page  5
<PAGE>
Item  1.  Business  (continued)

Supervision  and  Regulation

     Canandaigua  National  Corporation  is  incorporated  under the laws of the
State
of  New  York.  As  a  bank  holding company, the Company is subject to the Bank
Holding Company Act of 1956, as amended (the "BHC Act"), and is required to file
annual reports and such additional information as may be required by the Federal
Reserve Board (the "FRB") pursuant to the BHC Act.  The FRB has the authority to
examine  the  Company  and  its  subsidiaries.

     The  Gramm-Leach-Bliley  Act  (the  Act)  of  1999  was  signed into law by
President  Clinton  on  November 12, 1999.  The Act represents the most sweeping
reform  of  financial  services regulation in over sixty years.  The Act permits
the creation of new financial products under a strong regulatory regime based on
the  principle  of  functional  regulation.  The  legislation  eliminates  legal
barriers  to  affiliation among banks and securities firms, insurance companies,
and  other  financial  services  companies.  The  Act  provides  financial
organizations  with  flexibility in structuring these new financial affiliations
through  a holding company structure or a financial subsidiary, with appropriate
safeguards.

     The  Act  preserves  the  role of the Federal Reserve Board as the umbrella
supervisor  for  holding companies while at the same time incorporating a system
of  functional  regulation  designed  to  utilize  the  strengths of the various
federal  and  state  regulators.  It  also  sets up a mechanism for coordination
between  the  Federal  Reserve Board and the Secretary of the Treasury regarding
the approval of new financial activities for both holding companies and national
bank  financial  subsidiaries.

     The  Act  also  establishes, for the first time, a minimum federal standard
for  privacy.  Financial  institutions  are  required  to  have  written privacy
policies  that  must  be  disclosed to customers.  The disclosure of a financial
institution's privacy policy must take place at the time a customer relationship
is  established  and  not  less  than  annually  during  the continuation of the
relationship.

     The  Act  also  provides  for  functional  regulation  of  bank  securities
activities.  The  Act  repeals Bank's blanket exemption from the definition of a
"broker"  and  replaces  it  with  a  set  of  limited exemptions that allow the
continuation  of  some  traditional activities performed by banks (trust-related
activities).  The  Act  amends  the  Exchange  Act  to  include banks within the
general  definition  of  dealer.  The  bank  exclusion  from  the  definition of
investment  adviser  is  also  eliminated.

     The Act opens the possibility for complex new products to be developed with
both banking and securities elements.  The Act provides a procedure for handling
new  hybrid  products  sold by banks that have securities elements.  The statute
provides  for  a  rule-making  and resolution process between the Securities and
Exchange  Commission  (SEC)  and  the Federal Reserve Board regarding new hybrid
products,  with  a  federal  appeal  court  as  final  arbiter.

     As discussed above, the Company already conducts business directly, through
affiliates  or  through other contractual arrangements in many of the activities
allowed  under  the  Act.  Management  and  the  Board  of  Directors review the
Company's  strategic  plan  at least annually.  However, the implications of the
Act  on  the  Company  have  not  yet  been  assessed.

     The  Federal  Reserve  Act  imposes restrictions on extensions of credit by
subsidiary banks of a bank holding company to the bank holding company or any of
its subsidiaries, or investments in the stock or other securities of the holding
company,  and  on the use of such stock or securities as collateral for loans to
any  borrower.  Further, under the FRB's regulations, a bank holding company and
its  subsidiaries are prohibited from engaging in certain tie-in arrangements in
connection  with  any  extension  of  credit,  lease  or  sale  of  property, or
furnishing  of  services.




                                                            Page  6
<PAGE>

Item  1.  Business

Supervision  and  Regulation  (continued)

     From  time  to  time  the FRB may adopt further regulations pursuant to the
Act.  The Company cannot predict whether any further regulations will be adopted
or  how  such  regulations  will  affect  the  consolidated operating results or
business  of  the  Company.

     In  addition,  the  Corporation  reports  to  the  Securities  and Exchange
Commission  under  the  laws  governing corporations with registered securities.

     The  primary  supervisory  authority  of  the  Bank  is  the  Office of the
Comptroller  of  the  Currency (the " OCC"), which regularly examines aspects of
the  Bank's  operations  such as capital adequacy, reserves, loans, investments,
management  practices, etc.  In addition to these regular examinations, the Bank
must furnish quarterly and annual reports to the OCC.  The OCC has the authority
to issue cease-and-desist orders to prevent a bank from engaging in an unsafe or
an  unsound  practice  or  violating  the  law  in  conducting  its  business.

     The  Bank  is  also a member of the Federal Reserve System, and as such, is
subject  to  certain laws and regulations administered  by the FRB.  As a member
of  the  Federal  Reserve  System, the Bank is required to maintain non-interest
bearing  reserves  against certain accounts.  The amount of reserves required to
be  maintained  is  established  by  regulations  of  the  FRB and is subject to
adjustment  from  time  to  time.

     The  Bank's  deposits  are  insured by the Bank Insurance Fund (BIF) of the
FDIC  up  to  a  maximum of $100,000 per insured deposit account, subject to the
rules  and  regulations  of  the  FDIC.  For  this  protection,  the Bank pays a
quarterly  statutory  assessment.

Government  Monetary  Policies  and  Economic  Controls

     The  earnings  of  the Company and the Bank are affected by the policies of
regulatory  authorities  including the Comptroller of the Currency, the Board of
Governors  of  the  Federal  Reserve  System  and  the Federal Deposit Insurance
Corporation.  An important function of the Federal Reserve System is to regulate
the  money  supply  and interest rates.  Among the instruments used to implement
these  objectives  are  open  market  operations  in U.S. Government securities,
changes in reserve requirements against member bank deposits, and changes in the
federal  discount  rate.  These  instruments are used in varying combinations to
influence  overall  growth  and  distribution  of  bank  loans,  investments and
deposits,  and their use may also affect interest rates charged on loans or paid
for  deposits.

     The  policies  and  regulations  of the Federal Reserve Board have had, and
will  probably  continue  to  have, a significant effect on the Bank's deposits,
loans  and  investment  growth, as well as the rate of interest earned and paid,
and  are  expected to affect the Bank's operations in the future.  The effect of
such  policies and regulations, if any, upon the future business and earnings of
the  Bank  cannot  be  predicted.

     The  United  States  Congress  has  periodically  considered  and  adopted
legislation  that  has  resulted  in  deregulation  of banks and other financial
institutions.  Such  legislative  changes  have  placed  the Bank in more direct
competition with other financial institutions including mutual funds, securities
brokerage  firms,  insurance companies, and investment banking firms. The effect
of  any  such  legislation  on  the  business  of  the Bank cannot be predicted.

Consolidated  Financial  and  Statistical  Data

     A  review  of  the  business  activities  of  the  Corporation  and Bank is
presented  in  the  following  pages.






                                                            Page  7
<PAGE>
STATISTICAL  DISCLOSURE  BY  BANK  HOLDING  COMPANIES

I.  Distribution  of  Assets,  Liabilities  and  Stockholders' Equity; Interest
    Rates and Interest Differential

A.  and  B.  Average  Balance  Sheets  and  Analysis  of  Net  Interest  Margin

     The  following  table  reflects  the  net interest margin and interest rate
spread  for  the  years  shown. Average amounts are based upon the average daily
balances.  No  tax  equivalent  adjustments  have  been  made.

<TABLE>
<CAPTION>


           Average Balance Sheets and Analysis of Net Interest Margin
                 For the Years December 31, 1999, 1999 and 1997
                             (Dollars in thousands)


                                         1999      Average   Average
                                                  ---------  --------
  Balance                              Interest     Rate
------------------------------------  ----------  ---------
<S>                                   <C>         <C>        <C>
Assets
Interest earning assets:
  Interest bearing deposits with
    Others                            $      182  $       6      3.30%
  Federal funds sold                       4,700        226      4.81
  Securities (1):
    Taxable                               36,647      2,015      5.50
    Tax-exempt                            40,853      1,741      4.26
  Loans, net (2)                         339,351     28,865      8.51
                                      ----------  ---------  --------
      Total interest earning assets      421,733     32,853      7.79
                                                  ---------  ========
Non-interest earning assets               47,893
                                      ----------
      Total assets                    $  469,626
                                      ==========

Liabilities and Stockholders'
Equity
Interest bearing liabilities:
  Savings, interest checking and
    Money market                      $  188,333      4,676      2.48%
  Certificates of deposit                156,618      8,049      5.14
  FHLB Advances                            9,917        527      5.31
                                      ----------  ---------  --------
      Total interest bearing
        liabilities                      354,868     13,252      3.73
                                                  ---------  ========
Non-interest bearing liabilities          73,225
Stockholders' equity                      41,533
                                      ----------
      Total liabilities and
        stockholder's equity          $  469,626
                                      ==========

Interest rate spread                       4.06%
                                      ==========
Net interest margin                   $   19,601      4.65%
                                      ==========  =========
<FN>

(1)     Securities  available-for sale are stated at fair value and includes the
Company's  required  investments  in Federal Reserve Bank Stock and Federal Home
Loan  Bank  Stock.
(2)     Average balance includes non-accrual loans and interest includes fees of
$  463,000
</TABLE>











                                                            Page  8

<PAGE>
<TABLE>
<CAPTION>

STATISTICAL  DISCLOSURE  BY  BANK  HOLDING  COMPANIES  (continued)



                                         1998      Average   Average
                                                  ---------  --------
  Balance                              Interest     Rate
------------------------------------  ----------  ---------
<S>                                   <C>         <C>        <C>
Assets
Interest earning assets:
  Interest bearing deposits with
    others                            $      368  $      19      5.16%
  Federal funds sold                         630         33      5.24
  Securities (1):
    Taxable                               41,131      2,400      5.84
    Tax-exempt                            34,511      1,567      4.54
  Loans, net (2)                         303,940     26,834      8.83
                                      ----------  ---------  --------
      Total interest earning assets      380,580     30,853     8.11%
                                                  ---------  ========
Non-interest earning assets               36,421
                                      ----------
      Total assets                    $  417,001
                                      ==========

Liabilities and Stockholders'
Equity
Interest bearing liabilities:
  Savings, interest checking and
    money market                      $  152,018      3,675      2.42%
  Certificates of deposit                128,942      7,071      5.48
  FHLB Advances                           29,926      1,687      5.64
                                      ----------  ---------  --------
      Total interest bearing
        liabilities                      310,886     12,433      4.00%
                                                  ---------  ========
Non-interest bearing liabilities          65,758
Stockholders' equity                      40,357
                                      ----------
      Total liabilities and
        stockholder's equity          $  417,001
                                      ==========

Interest rate spread                       4.11%
                                      ==========
Net interest margin                   $   18,420      4.84%
                                      ==========  =========

<FN>

 (1)  Securities  available-for  sale  are stated at fair value and includes the
Company's  required  investments  in Federal Reserve Bank Stock and Federal Home
Loan  Bank  Stock.
 (2)     Average  balance  includes non-accrual loans and interest includes fees
of  $  227,000
</TABLE>

























                                                            Page  9

<PAGE>
<TABLE>
<CAPTION>

STATISTICAL  DISCLOSURE  BY  BANK  HOLDING  COMPANIES  (continued)



                1997                     Average             Average
                                         Balance   Interest     Rate
                                       ---------  ----------  -------
<S>                                   <C>         <C>        <C>
Assets
Interest earning assets:
  Interest bearing deposits with
    others                            $      264  $      16      6.06%
  Federal funds sold                          19          1      5.26
  Securities(1):
    Taxable                               43,240      2,587      5.98
    Tax-exempt                            31,037      1,440      4.64
  Loans, net (2)                         282,894     25,389      8.97
                                      ----------  ---------  --------
      Total interest earning assets      357,454     29,433      8.23%
                                                  ---------  ========
Non-interest earning assets               28,313
                                      ----------
      Total assets                    $  385,767
                                      ==========

Liabilities and Stockholders'
Equity
Interest bearing liabilities:
  Savings, interest checking and
    money market                      $  145,418      3,521      2.42%
  Certificates of deposit                112,661      6,212      5.51
  FHLB Advances                           26,942      1,506      5.59
                                      ----------  ---------  --------
      Total interest bearing
        liabilities                      285,021     11,239     3.94%
                                                  ---------  ========
Non-interest bearing liabilities          61,363
Stockholders' equity                      39,383
                                      ----------
      Total liabilities and
        stockholder's equity          $  385,767
                                      ==========

Interest rate spread                       4.29%
                                      ==========
Net interest margin                   $   18,194      5.09%
                                      ==========  =========

<FN>

 (1)  Securities  available-for  sale  are stated at fair value and includes the
Company's  required  investments  in Federal Reserve Bank Stock and Federal Home
Loan  Bank  Stock.
 (2)     Average  balance  includes non-accrual loans and interest includes fees
of  $  402,000
</TABLE>



C.  Rate/Volume  Analysis

The  following  table  sets  forth  the dollar and volume of changes in interest
income  and  interest  expense  resulting  from changes in the volume of earning
assets  and  interest  bearing  liabilities,  and from changes in rates.  Volume
changes  are  computed  by multiplying the volume difference by the prior year's
rate.  Rate changes are computed by multiplying the rate difference by the prior
year's  balance.  The  change  in  interest due to both rate and volume has been
allocated  to rate and volume changes in proportion to the dollar amounts of the
change  in  each.













                                                            Page  10

<PAGE>
<TABLE>
<CAPTION>

STATISTICAL  DISCLOSURE  BY  BANK  HOLDING  COMPANIES  (continued)

C.  Rate/Volume  Analysis  (continued)

                              Rate/Volume Analysis
                    For the Years December 31, 1999 and 1998
                             (Dollars in thousands)


1999  vs.  1998

                                    Increase/(decrease)  due
                                         to  change  in
                                   Volume     Rate     Total
                                  --------  --------  --------
<S>                               <C>       <C>       <C>
Assets
  Interest bearing deposits with
    Others                        $    (8)  $    (5)  $   (13)
  Federal funds sold                  196        (3)      193
  Securities                           96      (307)     (211)
  Loans, net                        3,039    (1,008)    2,031
                                  --------  --------  --------
      Total                         3,323    (1,323)    2,000
                                  ========  ========  ========

Liabilities
  Savings, interest checking and
    Money market                      899       102     1,001
  Certificates of deposit           1,444      (466)      978
  FHLB Advances                    (1,068)      (92)   (1,160)
                                  --------  --------  --------
      Total                         1,275      (456)      819
                                  ========  ========  ========

Net change                        $ 2,048   $  (867)  $ 1,181
                                  ========  ========  ========

</TABLE>



<TABLE>
<CAPTION>


1998  vs.  1997

                                 Increase/(decrease)  due
                                      to  change  in
                                  Volume    Rate    Total
                                  -------  ------  -------
<S>                               <C>      <C>     <C>
Assets
  Interest bearing deposits with
    others                        $     3  $  --   $    3
  Federal funds sold                   32     --       32
  Securities                           73   (133)     (60)
  Loans, net                        1,864   (419)   1,445
                                  -------  ------  -------
      Total                         1,972   (552)   1,420
                                  =======  ======  =======

Liabilities
  Savings, interest checking and
    money market                      160     (6)     154
  Certificates of deposit             893    (34)     859
  FHLB Advances                       168     13      181
                                  -------  ------  -------
      Total                         1,221    (27)   1,194
                                  =======  ======  =======

Net change                        $   751  $(525)  $  226
                                  =======  ======  =======

</TABLE>






                                                            Page  11
<PAGE>

STATISTICAL  DISCLOSURE  BY  BANK  HOLDING  COMPANIES  (continued)

II.  Securities  Portfolio

A.  Securities  Portfolio

<TABLE>
<CAPTION>

     The  following  table summarizes the Company's carrying value of securities
available for sale and held to maturity. Other securities includes the Company's
required  investments  in  Federal Reserve Bank stock and Federal Home Loan Bank
stock

                                   Securities
                     As of December 31, 1999, 1998 and 1997
                             (Dollars in thousands)



                                      1999     1997     1997
                                     -------  -------  ------
<S>                                  <C>      <C>      <C>
US Treasury and other U.S.
  Government agencies' obligations   $26,865  $29,936  31,413
Obligations of states and political
  Subdivisions                        46,061   39,253  34,273
Other securities                       6,486    7,275   8,813
                                     -------  -------  ------
      Total                          $79,412  $76,464  74,499
                                     =======  =======  ======


</TABLE>


B.  Maturity  and  Yields  of  Securities  Portfolio

<TABLE>
<CAPTION>

     The  following  table  summarizes  the  maturities and weighted average yields of the
Company's  securities  available  for  sale  and  held  to maturity at year end. Yields on
"Obligations  of  States and Political Subdivisions" are not reflected on a tax equivalent
basis.  Other  securities  includes  the Company's required investments in Federal Reserve
Bank  Stock  and  Federal  Home  Loan Bank Stock.  Mortgage backed securities, included in
other  securities,  are reported at their final contractual maturity, notwithstanding that
principal  is  prepaid  regularly,  reducing  their  effective  maturity.


                   Maturities and Weighted Average Yields of Securities
                                  As of December 31, 1999
                                  (Dollars in thousands)



                                            After           After
                                             One             Five
                          One               through         through          After
                        Year or              Five             Ten             Ten
                          Less               Years           Years           Years
                        --------           --------         -------         -------
                         Amount    Yield    Amount   Yield  Amount   Yield  Amount   Yield
                        --------  -------  --------  -----  -------  -----  -------  -----
<S>                     <C>       <C>      <C>       <C>    <C>      <C>    <C>      <C>
US Treasury and other
  US Government agen-
  cies' obligations     $ 16,373     5.37  $ 10,492   5.48  $    --     --  $    --     --
Obligations of states
  And political
  Subdivisions(1)         11,536     4.24    29,196   4.32    5,157   4.55      172   5.52
Other securities           1,487     6.72       492   6.53       34   8.00    4,473   6.52
                        --------  -------  --------  -----  -------  -----  -------  -----
      Total             $ 29,396     4.99  $ 40,180   4.65  $ 5,191   4.57  $ 4,645   6.48
                        ========  =======  ========  =====  =======  =====  =======  =====


<FN>

 (1)  Yields  are  not  reflected  on  a  tax  equivalent  basis.

</TABLE>



                                                            Page  12

<PAGE>
STATISTICAL  DISCLOSURE  BY  BANK  HOLDING  COMPANIES  (continued)

III.  Loan  Portfolio

The  loan  portfolio  is  comprised  solely  of  domestic  loans  with  their
concentrations  set  forth  in the schedule of loan classifications below. Other
than  general  economic  risks,  management  is  not  aware  of  any  material
concentrations  of  credit  risk  to  any  industry or individual borrower.  The
following  summary  shows  the  classifications  of  loans  by  category.

A.  Types  of  Loans

<TABLE>
<CAPTION>

                           Composition of Loan Portfolio
                                 As of December 31,
                               (Dollars in thousands)



                                   1999       1998       1997      1996      1995
                                 ---------  ---------  --------  --------  --------
<S>                              <C>        <C>        <C>       <C>       <C>
Commercial, financial and
  Agricultural                   $ 62,491   $ 43,260    37,610    27,503    28,326
Commercial mortgage               141,255     83,771    74,228    62,513    62,038
Residential mortgage               69,862     76,130    94,593   101,349    86,641
Consumer
     Auto - indirect              103,605     84,370    73,211    45,747    15,339
     Other                         18,561     17,753    15,245     9,925     9,146
Other                               2,589      6,485    14,257    11,437     8,770
                                 ---------  ---------  --------  --------  --------
                                  398,363    311,769   309,144   258,474   210,260
Less: Allowance for loan losses    (4,136)    (3,283)   (3,153)   (2,675)   (2,258)
                                 ---------  ---------  --------  --------  --------
Loans, net                       $394,227   $308,486   305,991   255,799   208,002
                                 =========  =========  ========  ========  ========

</TABLE>


B.  Maturities  and  Sensitivities  of  Loans  to  Changes  in  Interest  Rates

<TABLE>
<CAPTION>

     The following table sets forth the maturities and sensitivity to changes in
interest rates of the loan portfolio exclusive of real estate mortgage, consumer
and  other  loans.

                        Maturity and Sensitivity of Loans
                             As of December 31, 1999
                             (Dollars in thousands)


                                                 After
                                                  One
                                        One     through  After
                                      Year or    Five     Five
                                        Less     Years   Years   Total
                                      --------  -------  ------  ------
<S>                                   <C>       <C>      <C>     <C>
Commercial, financial and
  Agricultural                        $ 18,880   16,195  27,416  62,491

Loans maturing after one year:
  With a predetermined interest rate              1,536   7,244
  With a floating or adjustable rate             14,659  20,172

</TABLE>


     The  maturities  set  forth  above  are  based upon contractual maturities.
Demand  loans, overdrafts and certain time loans, the principal of which will be
renewed  in  whole  or  in  part,  are  included  in  the  "  One  Year or Less"
classification.  The Company's loan policy encourages a repayment schedule to be
established  whenever  possible.

     The  policy  provides  that  a  demand loan should not be renewed more than
once, with renewals at the then prevailing interest rates and with the assurance
the  borrower  demonstrates  the  ability  to  repay  on  maturity  of the loan.



                                                            Page  13

<PAGE>
STATISTICAL  DISCLOSURE  BY  BANK  HOLDING  COMPANIES  (continued)

III.  Loan  Portfolio  (continued)

     The  Company  provides  standby  letters  of  credit commitments which also
provide for availability of funds over a period of generally one year.  All such
commitments  have  fixed  expiration dates and may require the payment of a fee.

     The  Company  extends lines of credit under which a customer may borrow for
various  purposes such as letters of credit.  The extension of these commitments
and  lines  of credit have been in the normal course of business. In the opinion
of management, at December 31, 1999, there are no material commitments to extend
credit  which  represent  unusual  risks.

C.  Risk  Elements

(1)  Non-accrual,  Past  Due  and  Restructured  Loans

<TABLE>
<CAPTION>

     The  following  table  summarizes the Company's non-performing assets as of
December  31  for  each  of  the  last  five  years.
                              Non-Performing Assets
                              (Dollars in thousands)


                                      1999      1998     1997    1996     1995
                                    --------  --------  ------  -------  -------
<S>                                 <C>       <C>       <C>     <C>      <C>
Loans past due 90 days or more and
  Accruing:
  Commercial, financial &
    Agricultural                    $    --   $    14     347       --       12
  Real estate-commercial                 11       102     610       --       --
  Real estate-residential                13       157     508       48      101
  Consumer                               91       108     501       28       55
                                    --------  --------  ------  -------  -------
    Total past due 90 days or more
      And accruing                      115       381   1,966       76      168
                                    --------  --------  ------  -------  -------

Loans in non-accrual status:
  Commercial, financial &
    Agricultural                        509     1,498   1,210    2,285    1,640
  Real estate-commercial                980       225   1,327    7,565    7,280
  Real estate-residential               151       390     586    1,364    2,027
  Consumer                               --        --      53       75       --
                                    --------  --------  ------  -------  -------
    Total non-accrual loans           1,640     2,113   3,176   11,289   10,947
                                    --------  --------  ------  -------  -------

    Total non-performing loans        1,755     2,494   5,142   11,365   11,115
                                    --------  --------  ------  -------  -------

Other real estate owned:
  Commercial                          1,651     1,642   2,494    1,012    1,856
  Residential                            --        --      18      129      302
                                    --------  --------  ------  -------  -------
    Total other real estate owned     1,651     1,642   2,512    1,141    2,158
                                    --------  --------  ------  -------  -------

    Total non-performing assets     $ 3,406   $ 4,136   7,654   12,506   13,273
                                    ========  ========  ======  =======  =======

Non-performing loans to total
  period end loans                     0.44%     0.80%   1.66%    4.40%    5.29%
                                    ========  ========  ======  =======  =======

Non-performing assets to total
  period end loans and other real
  estate                                .85%     1.33%   2.48%    4.84%    6.30%
                                    ========  ========  ======  =======  =======

Allowance to non-performing loans    235.67%   131.64%  61.32%   23.54%   20.31%
                                    ========  ========  ======  =======  =======

Restructured loans                  $    --   $    --      --       --       --
                                    ========  ========  ======  =======  =======

</TABLE>


                                                            Page  14
<PAGE>
STATISTICAL  DISCLOSURE  BY  BANK  HOLDING  COMPANIES  (continued)

III.  Loan  Portfolio  (continued)

     The accrual of interest on commercial and real estate loans is discontinued
and  previously  accrued  interest  is  reversed  when  the loans become 90 days
delinquent  or  when,  in management's judgment, the collection of principal and
interest  is uncertain.  Recognition of interest income on nonaccrual loans does
not  resume  until  management  considers  principal  and  interest collectible.
Consumer  loans  are  generally  charged  off  upon  becoming 120 days past due.

     The Company earned interest on a cash basis of $77,000 in 1999, $281,000 in
1998  and  $259,000 in 1997 on non-performing loans.  Additional interest income
of  $  138,000,  $  239,000 and $636,000 would have been recognized during 1999,
1998 and 1997, respectively, if the loans reported above as non-accrual had been
current  in  accordance  with  the  original  terms.

(2)  Potential  Problem  Loans

     Management  is  unaware of any potential problem loans at December 31, 1999
which  are  not  already  disclosed  in  the  table  above.


IV.  Summary  of  Loan  Loss  Experience

A.  Analysis  of  Loss  Experience

     The  determination of the allowance for loan losses is based on an analysis
of the loan portfolio and reflects an amount which, in management's judgment, is
adequate  to provide for loan losses inherent in the portfolio. This analysis is
based  on management's periodic evaluation, which considers factors such as past
loss  experience,  identification  of  adverse  conditions  that  may  affect  a
borrower's  ability  to  repay,  an  assessment of current and expected economic
conditions  and  the  estimated  value  of  any  underlying  collateral.





























                                                             Page  15
<PAGE>


STATISTICAL  DISCLOSURE  BY  BANK  HOLDING  COMPANIES  (continued)

IV.  Summary  of  Loan  Loss  Experience  (continued)

<TABLE>
<CAPTION>

The  following table summarizes the changes in the allowance for loan losses for
each  of  the  last  five  years.

                         Summary of Loan Loss Allowance
                              (Dollars in thousands)


                                   1999      1998     1997    1996     1995
                                  -------  --------  ------  -------  -------
<S>                               <C>      <C>       <C>     <C>      <C>
Balance at beginning of year      $3,283   $ 3,153   2,675    2,258    2,202

Provision charge to operations     1,239       641     851    1,490    1,031
Charge-offs:
  Commercial, financial &
    Agricultural                      (3)     (274)   (257)  (1,356)    (810)
  Real estate-commercial              --        --      --      (44)      --
  Real estate-residential            (29)      (19)    (40)     (16)    (151)
  Consumer                          (843)     (760)   (498)    (221)    (268)
                                  -------  --------  ------  -------  -------
                                    (875)   (1,053)   (795)  (1,637)  (1,229)
                                  -------  --------  ------  -------  -------

Recoveries:
  Commercial, financial &
    Agricultural                      20        25     190      216       90
  Real estate-commercial              --        --      --       71       --
  Real estate-residential              3       102      19        1       20
  Consumer                           466       415     213      276      144
                                  -------  --------  ------  -------  -------
                                     489       542     422      564      254
                                  -------  --------  ------  -------  -------

    Net charge-offs:                (386)     (511)   (373)  (1,073)    (975)
                                  -------  --------  ------  -------  -------

Balance at end of year            $4,136   $ 3,283   3,153    2,675    2,258
                                  =======  ========  ======  =======  =======

Net charge-offs to average loans    0.11%     0.17%   0.13%    0.47%    0.47%
                                  =======  ========  ======  =======  =======

Allowance to total loans            1.04%     1.05%   1.02%    1.03%    1.07%
                                  =======  ========  ======  =======  =======

</TABLE>


B.  Allocation  of  Allowance  for  Loan  Losses

     The following table presents an allocation of the allowance for loan losses
and  the  percentage  of loans in each category to total loans at December 31 of
each  of the last five years.  In addition to an allocation for specific problem
loans,  each  category includes a portion of the non-specific allowance for loan
losses  based  upon  loans  outstanding, credit risk and historical charge-offs.
Notwithstanding  the  following allocation, the entire allowance for loan losses
is  available  to  absorb  charge-offs  in  any  category  of  loans.














                                                            Page  16

<PAGE>
STATISTICAL  DISCLOSURE  BY  BANK  HOLDING  COMPANIES  (continued)

IV.  Summary  of  Loan  Loss  Experience  (continued)
<TABLE>
<CAPTION>

                       Allocation of Allowance for Loan Losses
                                (Dollars in thousands)



                             1999                1998                1997
                         Allowance      % (1)  Allowance   % (1)   Allowance   % (1)
                           -------  ----------  -------  ----------  -------   ------
<S>                         <C>      <C>         <C>      <C>         <C>      <C>
Commercial, financial &
    Agricultural (2)        $1,783        51.1%  $1,484        40.7%  $1,974    36.2%
  Real estate-residential       50        17.5%      54        24.4%     111    30.6%
  Consumer                   2,303        31.4%   1,745        34.8%   1,068    33.2%
                            -------  ----------  -------  ----------  -------  ------
                            $4,136       100.0%  $3,283       100.0%  $3,153   100.0%
                            =======  ----------  =======  ----------  =======  ------


                              1996                   1995
                          Allowance     % (1)     Allowance       % (1)
                            -------     -------    --------       ------
Commercial, financial &
    Agricultural (2)        $1,982        34.8%      $1,927        43.0%
  Real estate-residential      122        39.2%          86        41.2%
  Consumer                     571        26.0%         245        15.8%
                            -------  ----------     -------       ------
                            $2,675       100.0%      $2,258       100.0%
                            =======  ----------     =======       ------



<FN>

(1)Percentage  of  loans  in  each  category  to  total  loans.
(2)Includes  commercial  real  estate.

</TABLE>


V.  Deposits

<TABLE>
<CAPTION>

     The  following  tables  summarize the average deposits and average rates paid
during  the  years  presented.
                          Average Deposits and Rates Paid
               For the Years Ended December 31, 1999, 1998 and 1997
                               (Dollars in thousands)



                                1999              1998               1997
                               Amount    Rate    Amount     Rate    Amount    Rate
                            ---------  -------  -------  --------  -------  ------
<S>                          <C>       <C>      <C>       <C>      <C>       <C>
Non-interest bearing demand  $ 66,769      --%  $ 62,944      --%  $ 59,920    --%
Interest-bearing demand        47,851    1.33%    42,099    1.50%    34,464  1.43%
Savings and money market      140,480    2.88%   109,919    2.77%   110,954  2.73%
Time                          156,618    5.14%   128,942    5.48%   112,661  5.51%
                             --------  -------  --------  -------  --------  -----
                             $411,718    3.09%  $343,904    3.12%  $317,999  3.06%
                             ========  =======  ========  =======  ========  =====


</TABLE>



<TABLE>
<CAPTION>

     The following table sets forth the time certificate of deposits of $100,000
or  greater,  classified  by  the  time  remaining until maturity, which were on
deposit  as  of  December  31,  1999.

           Maturity Distribution of Time Deposits of $100,000 or More
                            As of  December 31, 1999
                              (Dollars in thousands)



<S>                  <C>
3 months or less     $64,639
3 through 6 months     1,774
6 through 12 months    5,793
Over 12 months         9,450
                     -------
                     $81,656
                     =======


</TABLE>


                                                            Page  17
<PAGE>
STATISTICAL  DISCLOSURE  BY  BANK  HOLDING  COMPANIES  (continued)

VI.  Return  on  Equity  and  Assets

<TABLE>
<CAPTION>

     The  following  table  sets  forth  certain  ratios  used in evaluating the
Company's  financial  position  and  results  of  operations.

                                Financial Ratios
              For the Years Ended December 31, 1999, 1998 and 1997



                                   1999    1998    1997
                                  ------  ------  ------
<S>                               <C>     <C>     <C>
Return on average assets           0.50%   0.86%   0.97%
Return on average equity           5.68%   8.89%   9.49%
Dividend payout ratio             77.81%  49.15%  43.07%
Average equity to average assets   8.84%   9.68%  10.21%
                                  ------  ------  ------

</TABLE>


VII.  Short-term  Borrowings

<TABLE>
<CAPTION>

     The  following table sets forth the Company's short terms borrowings at the
dates  indicated.  The  Company considers short-term borrowings to be those with
an  original  maturity  date  of  three  months  or  less.

                              Short-term Borrowings
              For the Years Ended December 31, 1999, 1998 and 1997
                             (Dollars in Thousands)



                                             1999     1998     1997
                                            -------  -------  -------
<S>                                         <C>      <C>      <C>
Amount outstanding at December 31,          18,900    2,300   44,800
  Weighted average rate                       5.72%    4.84%    5.85%

Maximum outstanding at any month end        26,300   48,200   44,800

Average amount outstanding during the year   3,948   24,753   24,970
  Weighted average rate                       5.36%    5.66%    5.71%

</TABLE>



Item  2.  Properties

     Canandaigua  National  Corporation occupies space at the main office of the
Bank.  The  Company  owns  a building in Pittsford that is occupied by Home Town
Funding,  Inc.  and  is sublet to them and other unrelated businesses.  The Bank
owns  and  leases  real  property  in  Ontario  County and Monroe County for its
Community  Bank  Offices  and  to  support  its  operations.

<TABLE>
<CAPTION>

     As  of  December  31,  1999 The Bank's operations were conducted from eight
offices  (including the main office) located in Ontario County, New York and six
offices  located  in Monroe County, New York.  In January 2000, two more offices
were  opened  in  Monroe  County.  The  main office of the Bank is a three-story
structure  located  at  72  South  Main  Street,  Canandaigua,  New  York.  The
administrative,  operational  and electronic data processing offices of the Bank
are  located  in  this  facility.  There  are drive-up facilities located at all
permanent  offices  except  for the Eastview Mall and Pittsford offices. Some of
the  leases  also  provide  for  contingent  rent to be paid annually based upon
increases  the  cost  of  living.  Properties  providing customer service are as
follows:


Location                  Use              Ownership    Expiration (1)
---------------  ----------------------  -------------  --------------
<S>              <C>                     <C>            <C>
Canandaigua, NY  Main office space       Owned                      --
Bloomfield, NY   Bloomfield bank office  Owned                      --
Canandaigua, NY  Customer call center    Leased office       6/30/2002

</TABLE>


                                                              Page  18
<PAGE>
<TABLE>
<CAPTION>


Item  2.  Properties  (continued)


Location                           Use                      Ownership       Expiration (1)
-----------------  -----------------------------------  ------------------  ---------------
<S>                <C>                                  <C>                 <C>
Victor, NY         Eastview Mall bank office            Leased office            10/31/2004
Farmington, NY     Farmington bank office               Owned, leased land        6/30/2002
Honeoye, NY        Honeoye bank office                  Owned                            --
Canandaigua, NY    Lakeshore bank office                Leased office            12/31/2001
Shortsville, NY    Manchester-Shortsville bank office   Leased office       Month to month
Mendon, NY         Mendon bank office                   Leased office            12/31/2004
Pittsford, NY      Pittsford bank office                Leased office            12/31/2001
Victor, NY         Victor bank office                   Owned                            --
Penfield, NY       Webster bank office                  Leased office             8/31/2008
Greece, NY         Greece bank office                   Leased office            10/31/2003
Chili, NY          Chili bank office                    Leased office              6/1/2010
Honeoye Falls, NY  Honeoye Falls bank office (2)        Leased office            11/30/2000
Honeoye Falls, NY  Permanent bank office site           Owned                            --
Irondequoit, NY    Irondequoit bank office (3)          Owned                            --
Perinton, NY       Perinton bank office (3)             Leased office             3/15/2004
Pittsford, NY      Home Town Funding                    Owned                            --
Canandaigua, NY    Home Town Funding branch office      Leased office             4/30/2001
Bloomfield, NY     CNB Agency office                    Leased office             4/30/2001

<FN>

(1)  If  applicable
(2)  Temporary
(3)  Opened  January  2000

</TABLE>


     During  2000 the Bank will continue to increase its number of Monroe County
offices.  It  has  entered  into  lease  agreements for an office in the City of
Rochester,  New  York  and  the  hamlet  of  Bushnell's  Basin,  New  York.

<TABLE>
<CAPTION>

     The  Bank  also  provides,  free to its customers, 24-hour banking services
through  automatic  teller  facilities located at each office and through remote
automatic  teller  machines  and  cash  dispenser  machines  at  the  following
locations:



<S>                                            <C>
  Finger Lakes Community College               Hopewell, New York
  F.F. Thompson Hospital                       Canandaigua, New York
  Finger Lakes Performing Arts Center          Hopewell, New York
  Bristol Mountain                             Bristol, New York
  Case's Convenient                            Canandaigua, New York
  Roseland Bowl                                Canandaigua, New York
  The Greater Rochester International Airport  Rochester, New York
  The Company Store                            Cheshire, New York
  The Strong Museum                            Rochester, New York
  J-Mart                                       Canandaigua, New York
  Canandaigua Medical Group                    Canandaigua, New York
  Rank's IGA                                   Canandaigua, New York
  Webster Community Sports Center              Webster, New York
  Midtown Tennis Club                          Rochester, New York
  Hemlock General Store                        Hemlock, New York

</TABLE>


     The  Bank anticipates that in order to expand its service to its Monroe and
Ontario  County  customers  it will increase the number of remote cash-dispenser
machines  in  operation.

     The  carrying  value  of  the Company's properties as of December 31, 1999,
which  is required to be included herein pursuant to Item 102 of Regulation S-K,
is  included  under the caption "Notes to Consolidated Financial Statements" set
forth  on  pages  12 through 30 of the 1999 Annual Report to Stockholders and is
incorporated  herein  by  reference.



                                                            Page  19

<PAGE>
Item  3.  Legal  Proceedings

     The  Company  and  its  subsidiaries  are not involved in any pending legal
proceedings  other  than  routine  legal  proceedings undertaken in the ordinary
course  of  business.  In  the  opinion  of  management, after consultation with
counsel,  the  aggregate  amount involved in such proceedings is not material to
the  consolidated  financial  condition or results of operations of the Company.

Item  4.  Submission  of  Matters  to  a Vote of Security Holders (in the fourth
quarter  of  1999)

     None.

PART  II

Item  5.  Market  for  the Registrant's Common Stock and Related Security Holder
Matters

     The  market  and  dividend  information  required  to  be  included herein,
pursuant to Item 201 of Regulation S-K, is incorporated herein by reference from
page  31  of  the  1999  Annual  Report to Stockholders and the Proxy Statement.

     While  there  can  be  no assurance that the amount and timing of dividends
paid  in  recent  years  will  continue,  management has no knowledge of current
activities  that  would  restrict the payment of dividends in an amount at least
equal  to  recent  years  and  at  the  same  times.

       At  December 31, 1999, the Corporation had approximately 801 shareholders
of record. Information regarding beneficial ownership of the Corporation's stock
is  set  forth  in  the Corporation's Proxy Statement and incorporated herein by
reference.

Item  6.  Selected  Financial  Data

<TABLE>
<CAPTION>

     This  following  table  represents  a summary of selected components of the
Corporation's  consolidated  financial  statements  for  the  five  years  ended
December 31, 1999.  All information concerning the Corporation should be read in
conjunction  with  the  consolidated  financial  statements  and  related notes.

                             Selected Financial Data
                  (Dollars in Thousands except per share data)



                                 1999     1998     1997     1996     1995
                               --------  -------  -------  -------  -------
<S>                            <C>       <C>      <C>      <C>      <C>
Income Statement Information:
  Net interest income          $ 19,601   18,420   18,194   16,343   16,035
  Provision for loan losses       1,239      641      851    1,490    1,031
  Non-interest income             7,274    5,924    3,788    3,401    3,393
  Non-interest expense           22,383   18,430   15,632   14,163   12,684
  Income taxes                      896    1,686    1,762    1,144    1,797
  Net income                      2,357    3,587    3,737    2,947    3,916

Balance Sheet Data:
  Total investments            $ 79,412   76,464   74,499   71,771   71,920
  Total loans, net              394,227  308,486  305,991  255,799  208,002
  Total assets                  522,135  428,047  418,942  360,623  317,209
  Total deposits                454,290  376,507  324,761  307,966  277,051
  Total borrowings               22,218    7,142   50,667   11,590    1,013
  Total equity                   42,477   42,478   40,932   39,119   37,397
  Average assets                469,626  417,001  385,767  334,659  320,770
  Average equity                 41,533   40,357   39,383   37,834   35,987

Per Share Data:
  Net income, basic            $  14.82    22.38    23.22    18.20    24.31
  Net income, diluted          $  14.78    22.38    23.22    18.20    24.31
  Cash dividends                  11.50    11.00    10.00     8.75     7.00

</TABLE>


                                                            Page  20
<PAGE>
Item 7.  Management's Discussion and Analysis of Financial Condition and Results
of  Operations

     The purpose of this discussion is to focus on information about Canandaigua
National  Corporation's  financial  condition and results of operations which is
not  otherwise apparent from the consolidated financial statements in the annual
report.  Reference should be made to those statements and the selected financial
data  presented  elsewhere  in this report for an understanding of the following
discussion  and  analysis.

Overview
--------

     1999  will be remembered as a year of strong balance sheet growth and heavy
long-term  investment.  As  noted  in 1998's report, the Company accelerated its
expansion  in  the  Rochester metropolitan area.  During 1999 the Company opened
banking offices in Greece, Chili, and Honeoye Falls and in the first three weeks
of  2000  opened  offices  in  Irondequoit  and  Perinton.  Two more offices are
scheduled  to  be  opened  in  2000  in  the City of Rochester and the hamlet of
Bushnell's  Basin.  The  1999  result  of  this expansion was remarkable for the
Company:  22.0%  growth  in  assets,  27.8%  growth  in  loans,  20.7% growth in
deposits,  and  $3.0  million investment in premises and equipment for these new
branches.  But  this investment and rapid and planned growth expectedly impacted
1999's financial results with diluted earnings per share of $14.78 versus $22.38
in  1998.

     At  December  31,  1999 the Company's assets reached $522.1 million.  Total
assets increased $94.1 million or 22.0% for the year.  Net loans increased $85.7
million  or  27.8%  while  securities  increased $2.9 million or 4.0%.  Deposits
increased $ 77.8 million or 20.7% and borrowings (from the FHLB) increased $15.1
million  or 212.7%.  Funds generated through deposit inflows and borrowings were
used  for  loan  originations  and  other  asset  growth.

     Net income for the year ended December 31, 1999 was $2.4 million, down $1.2
million  or  33.3%  from  1998.  Basic  earnings per share decreased by $7.60 or
34.0%  over the same period. The decrease in net income for 1999 was a result of
expenses  related  to  the  aforementioned  increase  in  banking  offices.

     The  quality  of  the Company's assets continued to improve throughout 1999
with non-performing loans at December 31, 1999 at less than 1.0% of total loans.
The  allowance  for  loan  losses  stood  at  235.7%  of non-performing loans at
year-end  1999  versus  131.6%  at  December  31,  1998.  However, even with the
improvement  in  non-performing  loans, the provision for loan loss doubled from
1998  to  $1.2  million  to  account  for the Company's loan growth.  Other real
estate  owned  was  unchanged  from  1998  at  $1.6  million.

Financial  Condition
--------------------

     As  of  December 31, 1999, total assets of the Company were $522.1 million,
up  from  $428.0  million  at year end 1998. Cash and equivalents increased $2.6
million  to $26.8 million in connection with the growth in customer deposits and
a  buildup  of  cash  reserves  for the year 2000 date changeover, most of which
remained  undrawn  into  2000.
     Securities  showed  an  increase  of  $2.9  million  to  $75.9 million. The
Company's securities, with the exception of a minor amount of equity securities,
are  held  to  maturity.  The portfolio is comprised mainly of US Treasuries and
Agencies and tax-exempt obligations of state and local subdivisions.  Nearly all
of  the  portfolio  is  pledged  to federal agencies and for municipal deposits.
These  deposits,  in  turn,  are  used  to  purchase  securities  of  local
municipalities.  Other  securities consist mainly of high-grade corporate bonds.
As  these  bonds  matured  in 1999, they were replaced with tax-exempt municipal
obligations.

     Net  loans  increased  $85.7 million to $394.2 million. The growth in loans
came  mostly  in  the  last  three  quarters of the year, corresponding with the
Company's  Monroe  County  expansion. Nearly 90% of 1999's loan growth came from
commercial loans, which was consistent with projected results.  All other assets
rose  $2.8  million,  most of which was in premises and equipment for expansion.


                                                            Page  21

<PAGE>
Item  7.  Management's  Discussion  and  Analysis  of  Financial  Condition  and
           Results  of  Operations  (continued)

     Total  non-performing  loans  decreased  over the twelve month period ended
December  31,  1999 by $0.7 million to $1.8 million at year-end 1999 as compared
to  $2.5  million at year-end 1998. Commercial loans and residential real estate
loans  showed  a  decrease, while one $0.8 million commercial mortgage accounted
for  the  increase in commercial real estate.  Management attributes the overall
decrease  to  a combination of strict underwriting procedures, strong collection
efforts  and  a  relatively  stable  economic  cycle  in  the  Company's market.
     The  allowance  for loan losses stood at $4.1 million at December 31, 1999,
up  $0.8  million  from  December  31, 1998.  1999's year end balance represents
1.04%  of  total  loans  versus  1.05%  for 1998.  The increase in the allowance
balance  for  1999  mirrored  the  overall  increase  in the loan portfolio. Net
charge-offs  for  the  year  remained favorable at 0.11% of average loans versus
0.17%  in  1998.

     Other real estate owned consists of three parcels, all commercial, for $1.6
million.  While  the  balance  in  the  account remained the same, this compares
favorably  to  seven  parcels  in  1998.  The  Company  has  been  successful in
liquidating  its  foreclosed  properties.
     In  1999  the Company added approximately $4.0 million in fixed assets with
approximately  $3.0  million  coming  for the new bank offices and the remainder
being  other  building improvements, furniture, equipment and software. With the
planned  opening  of  at  least  two  banking offices in 2000, more fixed assets
additions  can  be  anticipated,  which the Company expects to fund from current
operations.
     Total  deposits  at December 31, 1999 were $454.3 million and were up $77.8
million  from  December  31,  1998. For the same period borrowings from the FHLB
were  up  $15.1  million  to $22.2 million.  Other liabilities increased by $1.2
million  to  $3.2 million. Deposit growth since December 31, 1998 came mainly in
interest-bearing  accounts:  savings  and money market up $46.8 million and time
deposits up $31.1 million.  Demand deposit accounts remained unchanged in total,
but there was some shift from interest bearing to non-interest bearing accounts.
Overall,  the deposit growth is attributable to expansion in Monroe County.  The
Company's  Ontario  County retail deposits grew approximately 3.6%, while Monroe
County  deposits  grew  178.9% from 1998. The increase in borrowings is a direct
result  of  loan  demand outpacing deposit growth.  The Company anticipates both
loan  and  deposit growth to continue into 2000, but at a rate less than 1999's.

Results  of  Operations
-----------------------
     With  a  $41.1  million  or  10.8%  growth in earning assets for 1999 and a
corresponding $44.0 million or 14.2% growth in interest bearing liabilities, net
interest  income increased $1.2 million or 6.5% and is reflective of the decline
in  yields  on the assets due to a lower interest rate environment than in 1998.
The  Company's  cost  of  funds  decreased 17 basis points to 3.73% for the year
ended  December  31,  1999  as  compared  to 1998.  However, the yield on assets
decreased  32  basis  points, resulting in a spread reduction of 5 basis points.
As  noted  in  last  year's  report,  management  anticipated  a lowering of the
interest  rate  spread  and interest margin (which declined 19 basis points from
1998)  due  to  the  competitive  Monroe  County market.  This trend will likely
continue  through  2000 as most of the Company's new loans are originated in the
Monroe  County  area.  Refer  to Interest Rate Sensitivity and Asset / Liability
Management  Review  section  for  a  further  discussion.

     Other income for the year ended December 31, 1999 increased $1.4 million or
23.7%  over  1998.  The  increase  was  reflected  in  all  major  sources  of
non-interest  revenue.  Service  charges  on  accounts  rose 40.8% attributed to
increased transaction volume, changes in account fee structures, and an increase
in  April  of  ATM  convenience  fee for non-Canandaigua National Bank and Trust
Company  customers  to  offset  the  increased cost of operating these machines.
Trust  income  grew  27.3%  year  on  year  due  to  the  growth in assets under
management.  The book value of assets under management increased 38.5% to $586.8
million  at  year  end  1999.  The  Company  continues  to see strong demand for
locally  managed  trust  services  in  its  market  area.

                                                            Page  22
<PAGE>

Item  7.  Management's  Discussion  and  Analysis  of  Financial  Condition  and
           Results  of  Operations  (continued)

In  recent  years  most  of  the Company's Trust competitors, large regional and
national banks, have reduced the local control and decision making authority and
raised  minimum account balances for personally managed accounts.  This trend is
allowing  the  Company,  with  its  focus on the personal service, to see double
digit  growth.  Other  operating  income  was  up due to strong mortgage banking
returns  in  the  first  half of the year.  However, revenue growth in this area
slowed  considerably  towards the end of the year, following the Federal Reserve
Board's  interest  rate  increases.  The  Company anticipates 2000 to be a lower
year  in  revenue  and profitability for mortgage banking given current interest
rate  forecasts.
     Operating  expenses  increased  $4.0  million  or  21.7% for the year ended
December  31,  1999.  Increases  came  in  all major expense categories and were
attributed to growth in the Company's operations and expansion in Monroe County.
Based  upon  the projected growth in banking offices in 2000, operating expenses
are  expected  to increase.  Management continues to estimate that the Company's
new  banking  offices  will  break  even  in  24  to  36  months.

Liquidity
---------

     The  Board of Directors has set general liquidity standards for the Bank to
meet  which  can  be  summarized as: the ability to generate adequate amounts of
cash  to  meet  the demand from depositors who wish to withdraw funds, borrowers
who  require  funds, and capital expansion.  Liquidity is produced by cash flows
from  operating,  investing,  and  financing activities of the Company.  For the
year  ended December 31, 1999 the Company generated $2.6 million in net cash and
equivalents  increases versus $4.6 million for the year ended December 31, 1998.

     Net cash from operating activities was $8.6 million in 1999, roughly double
that  of  1998.  Both  the  largest source and use of operating cash in 1999 and
1998  were  mortgage  banking  activity.  However, activity in 1999 was slightly
less  than  1998's.

     Cash  used by investing activities increased substantially in 1999 to $96.5
million  from  $6.0  million  in 1998.  The increase in investing activities was
primarily  attributed  to  loan  growth.

     Cash  provided  by financing activities was $90.5 million in 1999 versus of
$6.2  million  in  1998.

     The  Company has two primary sources of non-customer (wholesale) liquidity:
the  Federal  Home  Loan Bank of New York (FHLB) and the Federal Reserve Bank of
New  York. At December 31, 1999 residential mortgage loans with a carrying value
of  approximately $24,440,000 were pledged as collateral for the Bank's advances
from the Federal Home Loan Bank, and an additional $10,321,000 was available for
pledging.  Indirect  automobile  loans  with  a  carrying value of approximately
$94,880,000 were pledged as collateral for a $75,900,000 line of credit from the
Federal  Reserve  Bank  of  New  York.

     Secondarily,  in  1998,  the  Company opened a liquidity source through the
sale of its CD's in the national brokered market.  This source will be used from
time  to  time to manage both liquidity and interest rate risk as conditions may
require.

     For  2000,  cash  for  growth  is  expected  to come from both customer and
wholesale  sources.  Customer  deposit  growth  is  mainly expected to come from
Monroe  County  sources.









                                                            Page  23
<PAGE>

Item  7.  Management's  Discussion  and  Analysis  of  Financial  Condition  and
           Results  of  Operations  (continued)

Interest  Rate  Sensitivity  and  Asset  /  Liability  Management  Review
-------------------------------------------------------------------------
(Item  7a  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  and  brokered  CD's.
     The  Company  uses  an  interest  margin  simulation model as one method to
identify  and  manage  its  interest  rate  risk  profile. The model is based on
expected  cash flows and repricing characteristics for all financial instruments
and  incorporates  market-based  assumptions  regarding  the  impact of changing
interest  rates  on  these  financial  instruments  over  a twelve month period.
Assumptions  based  on  the historical behavior of deposit rates and balances in
relation  to  changes  in  interest  rates are also incorporated into the model.
These  assumptions  are  inherently uncertain and, as a result, the model cannot
precisely  measure  net  interest  income  or  precisely  predict  the impact of
fluctuations  in  interest  rates  on  net  interest income. Actual results will
differ  from  simulated  results  due  to  timing,  magnitude,  and frequency of
interest  rate  changes  as  well as changes in market conditions and management
strategies.
     Using  the  aforementioned  simulation  model,  net  interest  earnings
projections reflect a decline when applying the rising interest rate environment
as  of  December  31,  1999  ("Base  Case").  The  table  below, which shows the
Company's estimated net interest earnings sensitivity profile as of December 31,
1999,  assumes  no  changes  in  the operating environment, but assumes interest
rates  increase/decrease  immediately  (rate  shock)  and  remain  unchanged
thereafter.  The  table  indicates  the  estimated impact on net interest income
under  the various interest rate scenarios as a percentage of Base Case earnings
projections.
<TABLE>
<CAPTION>



Changes in Interest           Estimated
Rates                    Percentage Change in
(basis points)        Future Net Interest Income
--------------------  --------------------------
                              12 Months
                             -----------
<S>                             <C>
Base Case                        --
+200                            (7)%
+100                            (4)
-100                             4
-200                             7

</TABLE>


                                                            Page  24
<PAGE>

Item  7.  Management's  Discussion  and  Analysis  of  Financial  Condition  and
           Results  of  Operations  (continued)

     A  second  method  used  to identify and manage the Company's interest rate
risk  profile  is  the  static  gap  analysis.  Interest sensitivity gap ("gap")
analysis measures the difference between the assets and liabilities repricing or
maturing  within  specific  time  periods. An asset-sensitive position indicates
that  there  are  more  rate-sensitive  assets  than  rate-sensitive liabilities
repricing or maturing within specific time horizons, which would generally imply
a  favorable  impact  on net interest income in periods of rising interest rates
and  a  negative  impact  in  periods  of  falling  rates. A liability-sensitive
position  would  generally  imply  a  negative  impact on net interest income in
periods  of  rising  rates  and  a  positive impact in periods of falling rates.

<TABLE>
<CAPTION>

     The  following table presents an analysis of the Company's interest rate-sensitivity
gap  position  at  December  31,  1999.  All interest-earning assets and interest-bearing
liabilities  are  shown  based  on the earlier of their contractual maturity or repricing
date with no adjustment for estimated prepayment and decay rates. It should be noted that
the  interest  rate  sensitivity  levels  shown in the table could be changed by external
factors  such  as  loan  prepayments and liability decay (withdrawal) rates or by factors
controllable  by  the  Company  such  as  asset  sales.

                             Canandaigua National Corporation
                              Interest Rate Sensitivity Gap
                                    December 31, 1999
                                  (Dollars in thousands)



                                 Maturity/Repricing Period
                                ---------------------------
                                 Within 3   4 to 12    1 to 5    Over 5
                                  Months     Months     Years    Years
                                ---------  ---------  --------- --------
<S>                             <C>        <C>        <C>       <C>
Interest-earning assets:
Interest-bearing deposits
  and federal funds sold        $      33         --        --       --
Securities                          5,312     24,090    33,735   16,275
Loans                              82,974      6,205   236,631   72,553
                                ---------  ---------  --------  -------
Total interest-earnings
assets                             88,319     30,295   270,366   88,828
                                ---------  ---------  --------  -------

Interest-bearing liabilities:
NOW accounts                       46,552         --        --       --
Money market                       53,011         --        --       --
Savings                           102,837         --        --       --
Time deposits                      87,921     52,510    36,631       --
Borrowings                         18,906      1,327     1,244      741
                                ---------  ---------  --------  -------
Total interest-bearing
liabilities                       309,227     53,837    37,875      741
                                ---------  ---------  --------  -------

Interest rate sensitivity gap   $(220,908)   (23,542)  232,491   88,087
                                =========  =========  ========  =======

Cumulative gap                  $(220,908)  (244,450)  (11,959)  76,158
                                =========  =========  ========  =======

Cumulative gap ratio(1)             28.6%      32.7%     97.0%   119.0%
                                =========  =========  ========  =======

Cumulative gap as percent of
  Total assets                     (42.3%)    (46.8%)    (2.3%)    14.6%
                                =========  =========  ========  =======

<FN>

(1)Cumulative  total interest-earning assets divided by cumulative total interest-bearing
liabilities.

</TABLE>




                                                            Page  25
<PAGE>
Item  7.  Management's  Discussion  and  Analysis  of  Financial  Condition  and
           Results  of  Operations  (continued)

     The  chart indicates that the Corporation was repricing $220.9 million more
of  interest  bearing  liabilities than interest earning assets in the 0-3 month
range.  The  Company  considers  this  gap  manageable, as a good portion of the
savings  balances  are  not  considered sensitive to rate changes.  However, the
Company  will  be  challenged  to  maintain  its interest margins in the current
rising interest rate environment.  For the 4-12 month period, the Corporation is
modestly  liability  sensitive,  as  $23.5  million  more  of  interest  bearing
liabilities are being repriced than interest earning assets.  For the entire one
year  range,  the  Corporation is repricing $244.5 million more interest bearing
liabilities than assets, or 32.7% of earning assets versus 37.7% at December 31,
1998.  The  Corporation is asset sensitive at $232.5 million for the one to five
year  range  and  $88.1  million  over  five  years.

     For the entire portfolio range, the Corporation is asset sensitive at $76.1
million  versus asset sensitivity of $69.3 million last year reflecting a modest
growth  in  non-interest  bearing demand accounts.  The Company's product mix is
such  that nearly all assets and liabilities reprice or mature within five years
of  origination,  with  most at three years.  With such a balance sheet profile,
the  Company  faces interest rate risk over the short-term, but the value of its
equity  (assets  less  liabilities)  remains  relatively  stable.

     Interest  rates  for 2000 are forecasted to continue to rise throughout the
year  as  the  Federal  Reserve  balances  continued  economic expansion against
inflation  fears.

Capital  Resources

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

     Quantitative  measures established by regulation to ensure capital adequacy
require  the  Company  and  Bank  to  maintain  minimum  amounts and ratios.  As
disclosed  in  the  note  15  to  the  Consolidated  Financial Statements, as of
December  31,  1999  all  capital  adequacy  requirements  were  met.

     As  of  December  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  a minimum total risk-based, Tier I
risk-based,  and  Tier  I  leverage  ratios  as  set forth in the aforementioned
footnote.  However, the Bank's asset growth in 2000 is anticipated to exceed its
capital  formation,  which  will result in declining capital ratios.  Management
will  monitor  capital  levels  at  the  Bank.

Dividends

     Payment of dividends by the Bank to the Company is limited or restricted in
certain  circumstances.  According  to  federal banking law, the approval of the
Office  of the Comptroller of the Currency (OCC) is required for the declaration
of  dividends  in any year in which dividends exceed the total of net income for
that  year  plus  retained  income for the preceding two years.  At December 31,
1999, dividends were unavailable for payment to the Company without the approval
of the OCC.  The Company's February 2000 dividend was paid entirely from its own
operating  cash  of  $1.3  million.


                                                            Page  26
<PAGE>

Item  7.  Management's  Discussion  and  Analysis  of  Financial  Condition  and
           Results  of  Operations  (continued)

     Cash  dividends  for 1999 were $1.8 million or $11.50 per outstanding share
versus  $1.8  million  or  $11.00  per  outstanding  share  in  1998.

1998  versus  1997

     At  December  31,  1998 the Company's assets reached $428.0 million.  Total
assets  increased  $9.1  million or 2.2% for the year.  Net loans increased $2.5
million  or  .8%  while  securities  increased  $1.5  million  or  2.2%.  More
significantly,  deposits  increased  $51.7 million or 15.9% and borrowings (from
the  FHLB)  decreased  $43.5  million or 85.9%.  Funds generated through deposit
inflows  were  used for loan originations, security purchases and FHLB borrowing
repayments.

     Net  income for the year ended December 31, 1998 was $3.6 million, down $.1
million  or  4.0% from 1997.  Basic earnings per share decreased by $.84 or 3.6%
over  the  same  period.  The  decrease in net income for 1998 was a result of a
significant  legal  expense  reimbursement in 1997 relating one large credit and
one-time  charges  taken  in the first half of 1998 related to the completion of
the  Company's  core  banking system conversion. Also a portion of the increased
operating  expenses  was  derived  from  one  of  the Company's mortgage banking
subsidiaries,  which  was  not  acquired  until late 1997. For 1998 net interest
income  increased  only  $.2  million  or  1.2%  due  to  a  lower interest rate
environment  than  in  1997.

     The  quality  of  the Company's assets continued to improve throughout 1998
with  non-performing  loans at December 31, 1998 at less than 1% of total loans;
the  first  time in over 5 years.  The allowance for loan losses stood at 131.6%
of non-performing loans at year-end 1998 versus 61.3% at December 31, 1997. As a
result  of  these  trends  the  provision  for loan loss declined to $.6 million
versus  $.9  million  for  the  years  then ended.  Other real estate owned also
declined in 1998 as the Company liquidated approximately $1.2 million during the
year.

Financial  Condition
--------------------

     As  of  December 31, 1998, total assets of the Company were $428.0 million,
up  from  $418.9  million  at year end 1997. Cash and equivalents increased $4.6
million  to  $23.9  million  in connection with the growth in customer deposits.
Securities  showed  an  increase  of  $1.5  million  to  $72.9  million.

     Net  loans  increased  $2.5  million to $308.5 million. The growth in loans
came  mostly in the second and third quarters of 1998, following a $10.0 million
decline  in  the  first  quarter.  There  was  little net new loan volume in the
fourth  quarter.  All  other  assets  rose  $.5  million  to  $22.4  million.
     Total  non-performing  loans  decreased  over the twelve month period ended
December  31,  1998 by $2.6 million to $2.5 million at year-end 1998 as compared
to  $5.1  million  at  year-end  1997. The decrease came across all loan types -
commercial, residential real estate and consumer loans with the largest decrease
coming  from  commercial  real  estate.
     The  allowance  for loan losses stood at $3.2 million at December 31, 1998,
up  $.1  million  from  December  31, 1997.  1998's year end balance represented
1.05%  of  total  loans  versus  1.02%  for 1997.  The increase in the allowance
balance  for  1998  was relatively modest and was a reflection of little net new
loan  volume. Net charge-offs for the year remained favorable at .17% of average
loans  versus  .13%  in  1997.

     Other  real  estate  owned  consisted  of  six  parcels  of  property,  all
commercial,  for  $1.6  million. The decline in other real estate owned from the
same  period  in 1997 was a result of the Company's foreclosure on $ 2.1 million
in  real estate assets in May 1997 offset by the liquidation of portions of this
and  other  properties.



                                                            Page  27
<PAGE>

Item  7.  Management's  Discussion  and  Analysis  of  Financial  Condition  and
           Results  of  Operations  (continued)

     In  1998  the  Company  added approximately $2 million in fixed assets with
approximately  half  coming  from  the new Webster office and computer hardware,
software  and  peripherals.
     Total  deposits  at December 31, 1998 were $376.5 million and were up $51.7
million  from  December  31, 1997. For the same period borrowings from FHLB were
down $43.5 million to $7.1 million.  Other liabilities increased by $.07 million
to  $1.9  million.  The  decline  in  borrowings  was a direct result of deposit
growth.  Deposit  growth  from  December  31,  1997 came in all interest-bearing
types:  interest-bearing  demand  up  $19.6 million, savings and money market up
$8.7  million and certificates of deposit up $32.4 million.  Deposit growth came
from  a  number  of  sources, including the introduction of our Generations Gold
suite of accounts, our Business Choice Sweep account, the opening of the Webster
office, and our "CD Specials".  Also, to open a secondary source of liquidity in
addition  to  FHLB  advances and reduce the short-term gap, the Company sold $10
million  in  nationally  market  CD's  with  an  average  maturity of 30 months.

Results  of  Operations
-----------------------
     Despite  a  $23.1  million  or 6.5% growth in earning assets for 1998 and a
corresponding  growth  in  interest  bearing  liabilities,  net  interest income
increased  only  $.2 million or 1.2% and was reflective of the decline in yields
on  the  assets  due  to  a  lower  interest rate environment than in 1997.  The
Company's  cost  of  funds  increased 6 basis points to 4.00% for the year ended
December  31,  1998  as compared to 1997.  The increase was mostly due to higher
FHLB advances in early 1998, which were replaced during the year with lower cost
retail  deposits.

     Other income for the year ended December 31, 1998 increased $2.1 million or
56.4%  over  1997.  The  increase  was  reflected in all sources of non-interest
revenue.  Service  charges  on  accounts  rose  18%  attributed  to  increased
transaction volume, changes in account fee structures, and the implementation in
April  of  an  ATM  convenience  fee for non-Canandaigua National Bank and Trust
Company  customers.  Trust  income  grew  31%  year on year due to the growth in
assets  under  management.  The  book value of assets under management increased
18.4%  to  $423.6  million  at  year end 1998. Net gains on loan sales and other
income  are  both  up  due  to  mortgage  banking.
     Operating  expenses  increased  $2.8  million  or  17.9% for the year ended
December  31,  1998.  Increases  came  in  all major expense categories and were
attributed  to  (1)  growth  in the Company's operations, (2) the acquisition of
Home Town Funding in late 1997, and (3) additional expenses for the core banking
conversion.

New  Accounting  Pronouncements
-------------------------------

     In June 1999 the Financial Accounting Standards Board deferred for one year
the  effective  date  of  FASB  Statement  No.  133  entitled  "Accounting  for
Derivative  Instruments and Hedging Activities."   Statement No. 133 establishes
comprehensive  accounting  and reporting requirements for derivative instruments
and  hedging  activities.  The  statement  requires  companies  to recognize all
derivatives  as  either  assets or liabilities, with the instruments measured at
fair  value.  The accounting for gains and losses resulting from changes in fair
value of the derivative instrument depends on the intended use of the derivative
and  the  type  of  risk  being  hedged.  The statement is now effective for the
Company  for  fiscal  quarters  beginning  January 1, 2001.  Earlier adoption is
permitted.  The  Company  holds  no free-standing derivative instruments at year
end,  and  management does not anticipate that adoption of the new standard will
have  a  material  effect  on  the  Company's  financial  statements.







                                                            Page  28
<PAGE>

Item  7.  Management's  Discussion  and  Analysis  of  Financial  Condition  and
           Results  of  Operations  (continued)

Year  2000

     The  Company's  1998 Form 10-K and 1999 Form 10-Q's detailed the nature and
extent  of  the  Company's  efforts  to  prepare  for  the  year 2000 (Y2K) date
changeover.  By  any  measure,  the efforts were a success.  There were no major
Y2K  incidents  that affected the Company.  The Company will continue to monitor
its internal and external resources for possible disruptions related to Y2K, but
anticipates  none.

Item  8.  Financial  Statements  and  Supplementary  Data

     The  consolidated  financial  statements  of  the  Company, together with a
report  thereon of KPMG LLP dated February 4, 2000 appearing on pages 7 to 30 of
the  1999 Annual Report to Stockholders are incorporated herein by reference.  A
reference  index to the consolidated financial statements and accompanying notes
presented  in  the  Annual  Report  to  Stockholders is shown in Item 14 of this
filing.

     Supplementary  data  has  been  omitted  because  it  is  not  applicable

Item  9.  Changes  in  and  Disagreements  with  Accountants  on  Accounting and
Financial  Disclosure

     None

PART  III

Item  10.  Directors  and  Executive  Officers  of  the  Registrant

(a)  Directors

     The  information with respect to the directors of the Corporation, which is
required  to  be  included  herein  pursuant  to  Item 401 of Regulation S-K, is
included under the caption "Election of Directors" on the Proxy Statement, dated
February  28,  2000,  and  is  incorporated  herein  from the Proxy Statement by
reference.  There are no arrangements or understandings between any director and
any  other  person  pursuant  to  which  the  director  was  selected.

(b)  Executive  Officers

     The  names, ages and positions of the executive officers of the Corporation
as  of December 31, 1999, are included under the caption "Principal Officers" on
the  Proxy  Statement,  dated February 28, 2000, and is incorporated herein from
the  Proxy  Statement  by reference.  Officers are generally elected annually by
the  Board  of  Directors  at the meeting of directors immediately following the
annual  meeting  of  stockholders.  There  are no arrangements or understandings
between  the  executive  officers  and  any  other  person pursuant to which the
executive  officers  were  selected.

     No  Director  or  executive  officer  of  the  Corporation has received any
remuneration  from  the Bank or the Corporation in his capacity as a director or
executive  officer  of  the  Corporation.

     The  executive  officers  of the Corporation have been officers of the Bank
for  five  years  or  more.

     Directors  and  the executive officers as a group beneficially owned 13,159
shares  or  8.30% of the shares outstanding.  Shares owned directly total 11,983
and  shares  held  by  directors,  executive  officers,  or  their  spouses in a
fiduciary  capacity  or  by  their  spouses  individually  total  1,176.




                                                            Page  29
<PAGE>


(c)  Significant  Employees

     Not  applicable

(d)  Family  Relationship

     The  disclosure  of  family  relationships  between  executive officers and
directors  of  the  Corporation  is  included  under the caption "Information on
Directors and Nominees " on the Proxy Statement, dated February 28, 2000, and is
incorporated  herein  from  the  Proxy  Statement  by  reference.

(e)  Business  Experience

     Disclosed  in  Items  10  (a)  and  10  (b)

(f)  Involvement  in  Certain  Legal  Proceedings

     Not  applicable

(g)  Promoters  and  Controlled  Persons

     Not  applicable


Item  11.  Executive  Compensation

     The  information  required  to  be  included  herein  regarding  executive
compensation  pursuant  to  Item  402  of  Regulation  S-K is included under the
caption  "Executive  Compensation"  on  the  Proxy Statement, dated February 20,
2000,  and  is  incorporated  herein  from  the  Proxy  Statement  by reference.


Item  12.  Security  Ownership  of  Certain  Beneficial  Owners  and  Management

     The information required to be included herein regarding security ownership
and  certain  beneficial owners and management pursuant to Items 403 (a) and (b)
of  Regulation S-K is included under the caption "Principal Beneficial Owners of
Common  Stock"  in  the  Proxy  Statement,  dated  February  20,  2000,  and  is
incorporated  herein  from  the  Proxy  Statement  by  reference.

(c)  Changes  in  Control

     None
















                                                            Page  30
<PAGE>

Item  13.  Certain  Relationships  and  Related  Transactions

(a)  Transactions  with  Management  and  Others

     None

(b)  Certain  Business  Relationships

     None

(c)  Indebtedness  of  Management

     Certain  directors  and  executive officers of the Corporation and the Bank
and their associates were customers of and had transactions with the Bank in the
ordinary  course  of the Bank's business during 1999.  All outstanding loans and
commitments  included  in  such transactions were made on substantially the same
terms,  including interest rates and collateral, as those prevailing at the time
for  comparable  transactions  with  others,  and in the opinion of the Bank and
Company,  did  not  involve more than a normal risk of collectibility or present
other  unfavorable  features.

(d)  Transactions  with  Promoters

     Not  applicable


PART  IV

Item  14.  Exhibits,  Financial  Statement  Schedules  and  Reports  on Form 8-K

(a)  The  following  documents  are  filed  as  part  of  this  report:

(1)  Consolidated  Financial  Statements  are  contained  in  the Company's 1999
Annual  Report to Shareholders which, as indicated below, is included as Exhibit
13  of  this  report.

     Independent  Auditors'  Report

     Consolidated  Balance  Sheets  as  of  December  31,  1999  and  1998

     Consolidated  Statements  of  Income for the Years Ended December 31, 1999,
          1998  and  1997

     Consolidated  Statements  of  Stockholders'  Equity  for  the  Years  Ended
          December  31,  1999,  1998,  and  1997

     Consolidated  Statements  of  Cash  Flows  for  the  Years  Ended
          December  31,  1999,  1998  and  1997

     Notes  to  Consolidated  Financial  Statements

(2)  Schedules

     Schedules are omitted because of the absence of conditions under which they
are required or because the required information is provided in the consolidated
financial  statements  or  notes  thereto.







                                                            Page  31
<PAGE>

(3.a)  Exhibits

 Exhibit                                 Incorporation by Reference or page  in
                                         sequential  numbering  where exhibit
                                         may  be found:

(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 31,  1994

 (13)     Annual  Report  to  Shareholders  for
          the  year  ended  December  31,  1999          Page  35

 (20)     Definitive  Proxy  Statement  to
          Shareholders  dated  February  28,  2000       Page  71

 (21)     Subsidiaries                                   Page  84

 (27)     Financial  Data  Schedule                      Page  85


     (b)  Reports  on  Form  8-K:

           None

































                                                            Page  32
<PAGE>

                                 SIGNATURES

Pursuant  to the  requirements  of  Section  13 or 15(d) of the  Securities  and
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



March  29,  2000                         By:  /s/  George  W.  Hamlin,  IV
                                           George  W.  Hamlin,  IV,  President


<TABLE>
<CAPTION>

Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has  been  signed  below by the following persons on behalf of the Registrant in
the  capacities  and  on  the  dates  indicated.



        Signature                  Title              Date
---------------------------  ------------------  --------------
<S>                          <C>                 <C>
/s/ George W. Hamlin, IV     President/Director  March 29, 2000
---------------------------
(George W. Hamlin, IV)

/s/ Robert G. Sheridan       Secretary/Director  March 29, 2000
---------------------------
(Robert G. Sheridan)

/s/ Gregory S. MacKay        Treasurer           March 29, 2000
---------------------------
(Gregory S. MacKay)

/s/ Patricia A. Boland       Director            March 29, 2000
---------------------------
Patricia A. Boland

/s/ James S. Fralick         Director            March 29, 2000
---------------------------
James S. Fralick

/s/ Daniel P. Fuller         Director            March 29, 2000
---------------------------
Daniel P. Fuller

/s/ David Hamlin, Jr.        Director            March 29, 2000
---------------------------
David Hamlin, Jr.

/s/ Frank H. Hamlin,         Director            March 29, 2000
---------------------------
Frank H. Hamlin

/s/ Stephen D. Hamlin        Director            March 29, 2000
---------------------------
Stephen D. Hamlin

/s/ Richard P. Miller, Jr.   Director            March 29, 2000
---------------------------
Richard P. Miller, Jr.

/s/ Caroline C. Shipley      Director            March 29, 2000
---------------------------
Caroline C. Shipley

/s/ Alan J. Stone            Director            March 29, 2000
---------------------------
Alan J. Stone

</TABLE>




                                                            Page  33
<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 31,  1994

 (13)     Annual  Report  to  Shareholders  for
          the  year  ended  December  31,  1999

 (20)     Definitive  Proxy  Statement  to
          Shareholders  dated  February  28,  2000

 (21)     Subsidiaries

 (27)     Financial  Data  Schedule






































                                                            Page  34