<TABLE>

<CAPTION>

EXHIBIT  13  ANNUAL  REPORT TO SHAREHOLDERS FOR THE YEAR ENDED DECEMBER 31, 1999

TABLE  OF  CONTENTS
<S>                                                         <C>
President's Message                                           2
Canandaigua National Corporation Directors and Officers       4
Financial Highlights                                          5
Independent Auditors' Report                                  7
Consolidated Financial Statements                             8
Notes to Consolidated Financial Statements                   12
Common Stock Data                                            31
The Canandaigua National Bank and Trust Company Community
Advisory Committees                                          32
The Canandaigua National Bank and Trust Company Officers     33
Community Banking Offices                                    34
Arthur S. Hamlin Award for Excellence                        35
New Branch Offices                                           36
</TABLE>









ANNUAL  MEETING:
The  Annual  Meeting  of  Stockholders  will  be  held at the Main Office of The
Canandaigua  National Bank and Trust Company, 72 South Main Street, Canandaigua,
New  York  14424;  March  15,  2000  at  1:00  P.M.





FORM  10-K
A  copy of the Corporation's Form 10-K Annual Report is available without charge
to stockholders upon written request to: Robert G. Sheridan, Secretary; 72 South
Main  Street,  Canandaigua,  New  York  14424.





CANANDAIGUA  NATIONAL  CORPORATION
72  South  Main  Street,  Canandaigua,  New  York  14424
Phone:  716-394-4260  or  1-800-724-2621
Fax:  716-396-1355
Internet:  www.cnbank.com











1                                                           Page  35
<PAGE>

(photograph  of  George  W.  Hamlin,  IV)

PRESIDENT'S  MESSAGE
February  9,  2000

To  Our  Shareholders:

  We  are  in  the fifth  year of our "Plan for  Year 2010"  commenced  in 1995.
First,  we  envisioned  the  development  of  comprehensive  financial  services
for  individuals, be  they growing families or businesses.  This focused on four
elements:  payment  services,  access  to  credit,  savings and  investment, and
insurance.  In  our  mind these were  the four  legs of  the stool upon which an
individual's  financial  concerns  rest.  Then,  we  developed  and  implemented
support  systems  to include the entire revamping of our data processing systems
adopting  a wholly new approach in relational database architecture, developed a
Credit  Administration  function  second  to  none,  and  established  a  Human
Resources  function tasked to identify and staff our plans for the future.  With
the  stage  thus  set, in 1998 we broadened the base of products and services by
converting  our  successful mutual fund (Canandaigua Funds) to a retail fund and
ultimately  prevailed  in a  court battle to allow our Bank and others to sell a
full  line  of  insurance  products  to  our  customers.   This  past  year,  we
"launched"  our  branching initiatives  to establish  "beach heads" in definable
markets  in  Monroe  County  north  of  the  Thruway along the same lines as our
foundation  facilities  south  of  the  Thruway.   We  opened  offices  in
Webster/Penfield,  Chili, Perinton, Honeoye Falls, Greece, and  Irondequoit, all
within  twelve months.  Sites on East Main  Street near the Four  Corners in the
City  of  Rochester  and in Bushnell's Basin  will come in the second quarter of
2000.  Bushnell's  Basin will  feature investment,  trust,  commercial  services
supported  by  satellite  check  processing,  and  administrative  support  for
all  of these new facilities which supplement the main operations located at the
Home  Office.  These are the "inked" arrangements where others are in process to
be  announced  and  which altogether  will round  out our  commitment  to  these
new  markets  and  the  distinct  communities  they  represent.

  Yes,  the metropolitan market is in transition adjusting to the acquisition of
First  National  Bank  of  Rochester  by  a  large  regional  holding  company
headquartered  in  Buffalo, which merger was  effective at the end of the second
quarter  of  1999.  Competition  from  existing  larger  institutions  in  the
marketplace  and  three "new-to-the-market" institutions have confirmed that the
metropolitan  market  is an attractive place to be, each opening a single office
to  "test the  waters."  This strategy is  compared with our master strategy and
commitment  to  the entire  marketplace with what  will be  the establishment of
eight  new facilities in  just 16 months.  The setting of  these "anchor" points
allows  any  new or existing customer to  have convenient access to our services
throughout  the  entire  geographical  area  and  validates  our  extensive
"e-services"  available  "24  hours/7  days"  via ATM,  internet(www.cnbank.com)
                                                                 --------------
and  CNBanker  Voice.

  Our  reception,  to  date,  in  the  communities  we  have  selected  has been
gratifying  -  exceeding  our  projections  dramatically  and  positively.  This
process  has  been assisted  significantly by an  effective TV branding campaign
which  has more than tripled our "recognition" and  has been a primary factor in
our  year-over-year deposit growth  of over 20%.  Likewise, loan growth has been
substantial  during  the  course  of this  year at nearly 28%.  The more  recent
openings  are  tracking  growth  consistent  with  our  earliest  openings.  The
spillover  effect  of such  activity and  advertisement has positively  impacted
growth  in  our base markets  south of the Thruway  and in Pittsford, now in its
fifth  year.  Synergies  are  at  work.

  Of  course,  as we said in our June  letter, this expansion is not without its
costs.  Unlike  a  manufacturing firm  which "invests" in  machinery  to improve
production  and earnings, but may defer the "expense" of such investment through
depreciation  in later years presumably against greater earnings in  those later
years,  our investment in human capital which  attends our expansion  creates an
expense  which  cannot be  deferred as depreciation  to later  years but must be
expensed  currently  and before new revenues which, by the nature of things, lag
the  expenses  associated with  creating them.  Thus, we  are pleased  to report
earnings  per share for the year  1999 of $14.78  which is  above our  budget of
$14.55  representing a good performance against the 1999 plan. This performance,
however,  is about two-thirds of our  earnings for  the previous  year of $22.38
which  is  a  figure more  in line  with  our customary level  of earnings.  The
principal  impact  may  be  found  in  significantly  increased  staffing  costs
associated  with  the  opening  of  so  many  new  facilities.  Fortunately  and
significantly,  our  net interest margins  have been sustained at the same level
as  last year, a level which is better  than  peer  (65th percentile).  Positive
contributions to earnings include strong performance in our Trust and Investment
businesses and our participation in CEPHAS (mezzanine financing partnership) and
USA  Payroll, now profitable and paying  dividends both in terms of hard dollars
and  synergistic  opportunities.











2                                                           Page  36
<PAGE>
  Legislatively  speaking,  November  saw  the  President signing  the Financial
Services  Modernization Act of 1999, which purports to be a  wholesale reform of
the  banking laws in place  since 1933 under  which we  have labored  with great
difficulty,  especially in the last ten years. For our company, we had been able
to  achieve our product and services goals without the new legislation through a
process  of regulatory reform and judicial support of that reform.  However, the
Act  will  bring us some additional  flexibility to operate  more efficiently in
these  new businesses as artificial walls and barriers are removed  which were a
part  of  the former  regulatory  scheme.  Thus, the  operations of  Canandaigua
Funds,  our  mutual  fund, and  our  insurance operations  may be  streamlined .

  We  are  in  the  tenth  year  of  an  economic  expansion, now unprecedented.
Inflation  has  been  well  behaved.  Unemployment in the  4% range is as low as
anyone  can remember.  The Federal Reserve has tightened (raised) interest rates
recently  out  of  an  abundance of  caution given growth  rates at 4% of G.D.P.
which  is  above  a  range  of  2% to 3%  which is  generally  felt to  be  more
sustainable.  All  of this augers well for us in  our expansion  plans which are
enhanced  and assisted  by a climate  of financial "fair weather"  giving us the
opportunity  to  become  well-established  before any  threat  of "storm clouds"
develop.

  We  are midway  through the execution  of our plan as we "invest" or "expense"
our  way to future  opportunities.  Our people are  responding to the challenges
which  are inevitable in the execution of any large project.  We are on track on
our  five-year  projections  which  generally contemplate  a couple  of years of
lower-than-customary  earnings  offset by a couple  of years of recovery of that
investment  followed  by a strong final year demonstrating that the expenses and
challenges  of  the first few years  were worth all  the effort.   Regardless of
what  the  economy or competitive  environment may bring, we are executing on an
opportunity  which  is presented but  once in a lifetime, indeed once a century,
and  the  early  returns  are  that  it  is  working.

  We  are committed to being the region's principal, locally owned, full-service
financial  intermediary.  Even though we may be small relative to the market and
other  players in that market, we have a powerful thesis of community investment
and  personal service  that is real  and differentiable  from the performance of
others.  This  thesis  has  sustained  us over the last century  (113 years) and
will  sustain us in the next century.  A reasonable risk/return for shareholders
coupled  with  extraordinary  value presented  to customers,  the  community and
colleagues,  is  a  viable  long-term strategy  even if not  flashy or  headline
grabbing.

  On  a personal note,  I am happy  to report I  have won an election to serve a
second  three-year term as a Director of the New York Federal Reserve Bank.  For
a  Community  Banker, the  nomination for  a second term  was without precedent.
The  election  itself was unusual  since, for the  first time  in 13  years, two
other  candidates threw their hats into the ring. Happily, I garnered 93% of the
votes  cast in what must have been a record turnout.  I was graciously  assisted
by  the unsolicited support of two other  financial institutions  who offered to
support  and  actively  initiate a campaign  by mail on my  behalf which  was as
unexpected  by me as it was  effective in getting  the vote out and  achieving a
favorable  result.   This  effort was ably  assisted by our Marketing Department
which  is  just  another  example  of  the  support  and  effectiveness  of  our
associates.

  Think  about it.  Eight facilities  in sixteen months.  Branch Administration,
Training  and  Human  Resources have  truly risen to the occasion.  None of this
would  have been possible without Operations and Audit support, all accomplished
despite  the  distractions  and the brouhaha  surrounding  Y2K preparations  and
certifications,  an event which turned out to be the most heralded  non-event of
the  century.  Commercial loan growth put  strains on Credit  Administration and
Resource  Recovery.  Trust and Investments  had its own challenges, with Y2K and
planning  for a new  facility, and still contributed substantially to margin.  A
growing  facility  is ultimately supported  by an expansion of assets originated
and  serviced  by  our  Commercial  and Retail  Divisions,  backed  in turn by a
Herculean  effort given by our newly minted Finance Department.  When placed all
in  one  paragraph,  one  cannot help  but be  impressed by  the teamwork  which
underlies  our  success today and which  will be the principal ingredient of our
success  for  tomorrow.

         Very  truly  yours,
         /s/  George  W.  Hamlin,  IV
         George  W.  Hamlin,  IV
         President












3                                                           Page  37

<PAGE>

CANANDAIGUA  NATIONAL  CORPORATION  BOARD  OF  DIRECTORS


(photograph  of  the  Board  of  Directors)


Back  Row:  James  S.  Fralick,  Robert  G.  Sheridan,  George  W.  Hamlin,  IV,
David  Hamlin,  Jr.,  Daniel  P.  Fuller,  Stephen  D.  Hamlin,
Front  Row:  Caroline  C.  Shipley,  Frank  H.  Hamlin,  Alan  J.  Stone,
Patricia  A.  Boland,  Richard  P.  Miller,  Jr.

 Patricia  A.  Boland  Retired  Executive  Director,  Granger  Homestead
 James  S.  Fralick  Adjunct  Professor,  Syracuse  University
 Daniel  P.  Fuller  Owner,  Bristol  Mountain
 David  Hamlin,  Jr.  Farmer
 Frank  H.  Hamlin  Investor
 George  W.  Hamlin,  IV  President,  CEO,  Trust  and  CRA  Officer,
  The  Canandaigua  National  Bank  and  Trust  Company
 Stephen  D.  Hamlin  President  and  CEO,  Sonnenberg  Gardens
 Richard  P.  Miller,  Jr.  Senior  Vice  President  and Chief Operating Officer
  University  of  Rochester
 Robert  G.  Sheridan  Retail  Senior  Vice  President  and  Cashier,
  The  Canandaigua  National  Bank  and  Trust  Company
 Caroline  C.  Shipley  Educator,  Director  New  York  State  School  Boards
Association
 Alan  J.  Stone  Chairman  of  the  Board  of  Directors,
  The  Canandaigua  National  Bank  and  Trust  Company,
  Managing  Partner,  Stone  Properties


 EMERITUS  BOARD  MEMBERS
 Arthur  S.  Hamlin  Retired  Banker
 Eldred  M.  Sale  Retired  Banker
 Willis  F.  Weeden,  MD  Retired  Surgeon


 OFFICERS
 George  W.  Hamlin,  IV  President
 Robert  G.  Sheridan,  Secretary
 Gregory  S.  MacKay,  Treasurer



















4                                                           Page  38



<PAGE>

ABOUT  THE  CORPORATION


Canandaigua  National  Corporation  is  a  one-bank  holding  company  providing
comprehensive  financial  services.  Its  wholly  owned subsidiaries include The
Canandaigua  National  Bank  and  Trust  Company  and Home Town Funding, Inc., a
mortgage  company.  The  Bank  engages  in  full-service commercial and consumer
banking,  trust  business  and insurance services.  Its market area is generally
Western  Ontario  County  and  Monroe  County.
<TABLE>


<CAPTION>


                              FINANCIAL  HIGHLIGHTS
                     Years  ended  December  31,  1999  and  1998
                  (dollars  in  thousands,  except  per  share  data)

                                       1999                 1998
                                    -------              -------
<S>                                  <C>                 <C>
Net Income                           $  2,357              3,587
Cash Dividends                       $  1,833              1,766
Diluted Earnings Per Share           $  14.78              22.38
Dividends Per Share                  $  11.50              11.00
Book Value Per Share                 $ 268.02             265.94
Total Assets                         $522,135            428,047
Investment Securities                $ 75,864             72,916
Loans-Net                            $394,227            308,486
Deposits                             $454,290            376,507
Stockholders' Equity                 $ 42,477             42,478
Weighted Average Shares Outstanding -
                           diluted    159,521            160,254
Return on Average Assets                  .50%               .86%
Return on Beginning Equity               5.50%              8.76%
</TABLE>








<TABLE>


<CAPTION>


                 THE  CANANDAIGUA  NATIONAL  BANK  AND  TRUST  COMPANY
                                TRUST  DEPARTMENT

                     Years  ended  December  31,  1999  and  1998
                       (at  cost,  in  thousands  of  dollars)



                                           1999              1998
                                        -------           -------
<S>                                    <C>                <C>
Estate, Trust and Guardianship Assets  $215,022           139,211
Custodian Account Assets                342,098           263,955
The Canandaigua Funds' Assets            29,695            20,414
                                       --------           -------
Total Assets Under Administration      $586,815           423,580
                                       ========           =======
</TABLE>








5                                                           Page  39

<PAGE>








Graph  1  (depicting  Assets,  Deposits  and  Loans  for the years 1994 to 1998)









Graph  2  (depicting  Trust  Assets  Market  and  Book  Value  for  the
          years  1994  to  1998)









































6                                                           Page  40



<PAGE>
INDEPENDENT  AUDITORS'  REPORT





The  Stockholders  and  Board  of  Directors
Canandaigua  National  Corporation:

We  have  audited  the  accompanying  consolidated balance sheets of Canandaigua
National  Corporation and subsidiaries as of December 31, 1999 and 1998, and the
related  consolidated  statements of income, stockholders' equity and cash flows
for  each  of  the years in the three-year period ended December 31, 1999. These
consolidated  financial  statements  are  the  responsibility  of  the Company's
management.  Our  responsibility  is to express an opinion on these consolidated
financial  statements  based  on  our  audits.

We  conducted  our  audits  in  accordance  with  generally  accepted  auditing
standards.  Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement.  An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing  the  accounting  principles  used  and  significant estimates made by
management,  as well as evaluating the overall financial statement presentation.
We  believe  that  our  audits  provide  a  reasonable  basis  for  our opinion.

In  our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the financial position of Canandaigua National
Corporation  and  subsidiaries at December 31, 1999 and 1998, and the results of
their  operations  and  their cash flows for each of the years in the three-year
period ended December 31, 1999, in conformity with generally accepted accounting
principles.


/s/KPMG  LLP


February  4,  2000
Rochester,  New  York
























7                                                           Page  41
<PAGE>

<TABLE>

<CAPTION>


                  CANANDAIGUA  NATIONAL  CORPORATION  AND  SUBSIDIARIES

                             CONSOLIDATED  BALANCE  SHEETS
                              DECEMBER  31,  1999  AND  1998
                       (DOLLARS  IN  THOUSANDS,  EXCEPT  SHARE  DATA)



ASSETS                                                              1999       1998
-------                                                           ---------  --------
<S>                                                               <C>        <C>
Cash and due from banks                                            $26,801    23,892
Interest bearing deposits with other financial institutions             33       314
Securities:
  - Available for sale, at fair value                                  528       437
  - Held to maturity (fair value of $74,805 in 1999 and
      $73,688 in 1998)                                              75,336    72,479
Loans - net of allowance of $4,136 in 1999 and $3,283 in 1998      394,227   308,486
Premises and equipment - net                                        13,438    11,468
Accrued interest receivable                                          2,682     2,244
Federal Home Loan Bank stock and Federal Reserve Bank stock          3,548     3,548
Other assets                                                         5,542     5,179
                                                                  ---------  --------
        Total Assets                                              $522,135   428,047
                                                                  =========  ========

LIABILITIES AND STOCKHOLDERS' EQUITY
-------------------------------------
Deposits:
  Demand
    Non-interest bearing                                          $ 74,630    64,368
    Interest bearing                                                46,490    56,877
  Savings and money market                                         156,108   109,316
  Certificates of deposit                                          177,062   145,946
                                                                  ---------  --------
        Total deposits                                             454,290   376,507
Borrowings                                                          22,218     7,142
Accrued interest payable and other liabilities                       3,150     1,920
                                                                  ---------  --------
        Total Liabilities                                          479,658   385,569
                                                                  ---------  --------

Commitments and Contingencies (Notes 13 and 14)

Stockholders' Equity:
  Common stock, $50 par value; 240,000 shares authorized,
    162,208 shares issued in 1999 and 1998                           8,110     8,110
  Additional paid-in capital                                         8,506     8,495
  Retained earnings                                                 27,087    26,563
  Treasury stock, at cost (3,725 shares in 1999 and 2,479 shares
    in 1998)                                                        (1,348)     (835)
  Accumulated other comprehensive income                               122       145
                                                                  ---------  --------
        Total Stockholders' Equity                                  42,477    42,478
                                                                  ---------  --------
        Total Liabilities and Stockholders' Equity                $522,135   428,047
                                                                  =========  ========
<FN>



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



8                                                           Page  42
<PAGE>

<TABLE>


<CAPTION>


             CANANDAIGUA  NATIONAL  CORPORATION  AND  SUBSIDIARIES

                         CONSOLIDATED  STATEMENTS  OF  INCOME
                    YEARS  ENDED  DECEMBER  31,  1999,  1998  AND  1997
                  (DOLLARS  IN  THOUSANDS,  EXCEPT  PER  SHARE  DATA)


                                                             1999     1998    1997
                                                          -------  ------  -------
<S>
                                                        <C>         <C>     <C>
Interest income:
  Loans, including fees                                  $  28,865  26,834  25,389
  Securities                                                 3,756   3,967   4,027
  Other                                                        232      52      17
                                                           -------  ------  ------
        Total interest income                               32,853  30,853  29,433
                                                           -------  ------  ------
Interest expense:
  Deposits                                                  12,725  10,746   9,733
  Borrowings                                                   527   1,687   1,506
                                                           -------  ------  ------
      Total interest expense                                13,252  12,433  11,239
                                                           -------  ------  ------
      Net interest income                                   19,601  18,420  18,194
Provision for loan losses                                    1,239     641     851
                                                           -------  ------  ------
      Net interest income after provision for loan losses   18,362  17,779  17,343
                                                           -------  ------  ------

Other income:
  Service charges on deposit accounts                        2,548   1,810   1,534
  Trust income                                               2,782   2,249   1,723
  Net gain on sale of mortgage loans                            88     125      29
  Other operating income                                     1,856   1,740     502
                                                           -------  ------  ------
      Total other income                                     7,274   5,924   3,788
                                                           -------  ------  ------

Operating expenses:
  Salaries & employee benefits                              13,055  10,557   9,638
  Occupancy                                                  3,763   3,007   2,736
  Marketing and public relations                             1,162     515     399
  Office supplies, printing and postage                        966     807     712
  FDIC insurance                                                43      39      38
  Other operating expenses                                   3,394   3,505   2,109
                                                           -------  ------  ------
      Total operating expenses                              22,383  18,430  15,632
                                                           -------  ------  ------

      Income before income taxes                             3,253   5,273   5,499
Income taxes                                                   896   1,686   1,762
                                                           -------  ------  ------
      Net income                                         $   2,357   3,587   3,737
                                                           =======  ======  ======

Basic earnings per share                                 $   14.82   22.38   23.22
                                                           =======  ======  ======

Diluted earnings per share                               $   14.78   22.38   23.22
                                                           =======  ======  ======
<FN>


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


9                                                           Page  43
<PAGE>

<TABLE>

<CAPTION>

                      CANANDAIGUA  NATIONAL  CORPORATION  AND  SUBSIDIARIES

                         CONSOLIDATED  STATEMENTS  OF  STOCKHOLDERS'  EQUITY
                           YEARS  ENDED  DECEMBER  31,  1999,  1998  AND  1997
                            (DOLLARS  IN  THOUSANDS,  EXCEPT  SHARE  DATA)



                                                                               ACCUMULATED
                                         ADDITIONAL                                  OTHER
                                   COMMON  PAID IN      RETAINED    TREASURY COMPREHENSIVE
                                    STOCK  CAPITAL      EARNINGS       STOCK        INCOME    TOTAL
                              -----------   ------      --------   ---------  ------------   ------
<S>
                              <C>             <C>         <C>        <C>      <C>            <C>
Balance at December 31, 1996  $      8,110    8,489       22,616       (174)            78   39,119

  Comprehensive income:
    Change in unrealized
     gain on securities
     available for sale,
     net of taxes of $27                 -        -            -          -             41       41
    Net income                           -        -        3,737          -              -    3,737
                                                                                            -------
  Total comprehensive
   income                                                                                     3,778
  Cash dividend - $10.00
   per share                             -        -       (1,609)         -              -   (1,609)
  Sale of 139 shares of
   treasury stock                        -        -           (2)        44              -       42
  Purchase of 1,231 shares
   of treasury stock                     -        -            -       (398)             -     (398)
                              ------------  -------     ---------  ---------  -------------  -------
Balance at December 31, 1997         8,110    8,489       24,742       (528)           119   40,932
                              ------------  -------     ---------  ---------  -------------  -------

Comprehensive income:
  Change in unrealized
   gain on securities
   available for sale,
   net of taxes of $17                   -        -            -          -             26       26
  Net income                             -        -        3,587          -              -    3,587
                                                                                             -------
Total comprehensive
 income                                                                                       3,613
                                                                                             -------
Cash dividend - $11.00
 per share                               -        -       (1,766)         -              -   (1,766)
Sale of 135 shares of
 treasury stock                          -        6            -         41              -       47
Purchase of 972 shares
 of treasury stock                       -        -            -       (348)             -     (348)
                               ------------  -------     ---------  ---------  -------------  -------
Balance at December 31, 1998         8,110    8,495       26,563       (835)           145   42,478
                              ------------  -------     ---------  ---------  -------------  -------

Comprehensive income:
 Change in unrealized
  gain on securities
  available for sale,
  net of taxes of $16                    -        -            -          -            (23)     (23)
 Net income                              -        -        2,357          -              -    2,357
                                                                                             -------
Total comprehensive
 income                                                                                       2,334
                                                                                             -------
Cash dividend - $11.50
 per share                               -        -       (1,833)         -              -   (1,833)
Sale of 176 shares of
 treasury stock                          -       11            -         56              -       67
Purchase of 1,422 shares
 of treasury stock                       -        -            -       (569)             -     (569)
                              ------------  -------     ---------  ---------  -------------  -------
Balance at December 31, 1999  $      8,110    8,506       27,087     (1,348)           122   42,477
                              ============  =======     =========  =========  =============  =======

<FN>

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



10                                                          Page  44
<PAGE>

<TABLE>

<CAPTION>


                  CANANDAIGUA  NATIONAL  CORPORATION  AND  SUBSIDIARIES

                          CONSOLIDATED  STATEMENTS  OF  CASH  FLOWS
                      YEARS  ENDED  DECEMBER  31,  1999,  1998  AND  1997
                                 (DOLLARS  IN  THOUSANDS)

                                                              1999      1998      1997
                                                         ----------  --------  --------
<S>
                                                         <C>         <C>       <C>
Cash flow from operating activities:
  Net income                                              $   2,357     3,587     3,737
  Adjustments to reconcile net income to
   net cash provided by operating activities:
   Depreciation, amortization and accretion                   2,084     1,793     1,415
   Provision for loan losses                                  1,239       641       851
   Writedown of other real estate                                 -        50       274
   Deferred income taxes                                       (482)     (256)     (210)
   Income from minority owned entities                         (144)        -         -
   Originations of loans held for sale                     (106,988) (116,551)  (28,481)
   Proceeds from sale of loans held for sale                109,464   115,702    27,033
   (Increase) decrease in accrued interest receivable
     and other assets                                          (175)      149      (312)
   Increase (decrease) in accrued interest payable and
     other liabilities                                        1,230      (662)      634
                                                          ----------  --------  --------
      Net cash provided by operating activities               8,585     4,453     4,941
                                                          ----------  --------  --------

Cash flows from investing activities:
  Purchase of FHLB and FRB stock                                  -      (430)   (1,354)
  Securities held to maturity:
   Proceeds from maturities and calls of securities          38,303    32,740    37,219
   Purchase of securities                                   (41,180)  (34,025)  (38,319)
  Loans originated - net                                    (89,985)   (2,663)  (52,133)
  Fixed asset purchases - net                                (3,990)   (2,104)   (3,469)
  Acquisition of subsidiary                                       -         -      (196)
  Investment in minority owned entities                        (158)     (762)   (1,014)
  Proceeds from sale of other real estate                       529     1,196       892
                                                          ----------  --------  --------
      Net cash used by investing activities                 (96,481)   (6,048)  (58,374)
                                                          ----------  --------  --------

Cash flows from financing activities:
  Net increase in demand, savings and money
   market deposits                                           46,667    19,388    14,880
  Net increase in time deposits                              31,116    32,358     1,915
  Proceeds from FHLB advances                                16,600         -    39,100
  Principal repayments on FHLB advances                      (1,524)  (43,525)      (23)
  Proceeds from sale of treasury stock                           67        47        42
  Purchase of treasury stock                                   (569)     (348)     (398)
  Dividends paid                                             (1,833)   (1,766)   (1,609)
                                                          ----------  --------  --------
      Net cash provided by financing activities              90,524     6,154    53,907
                                                          ----------  --------  --------

      Net increase in cash & cash equivalents                 2,628     4,559       474
  Cash & cash equivalents - beginning of year                24,206    19,647    19,173
                                                          ----------  --------  --------
  Cash & cash equivalents-end of year                     $  26,834    24,206    19,647
                                                          ==========  ========  ========

Supplemental disclosures of cash flow information:
  Cash paid during the year for:
    Interest                                              $  13,074    12,312    11,128
                                                          ==========  ========  ========
    Income taxes                                          $   1,020     2,142     1,409
                                                          ==========  ========  ========
Supplemental disclosure of non-cash investing
 activity:
  Additions to other real estate acquired through
   foreclosure, net of loans to facilitate sales          $     536       376     2,538
                                                          ==========  ========  ========
<FN>


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



11                                                          Page  45
<PAGE>


            CANANDAIGUA  NATIONAL  CORPORATION  AND  SUBSIDIARIES

                   NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
                        DECEMBER  31,  1999,  1998  AND  1997

(1)  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES

BUSINESS

Canandaigua  National  Corporation  (the  Company)  provides  a  full  range  of
financial  services,  including  banking,  trust,  and  insurance  services  to
individual,  corporate,  and  municipal  customers.  The  Company  is subject to
competition  from other financial institutions. The Company and its subsidiaries
are subject to the regulations of certain federal and state agencies and undergo
periodic  examinations  by  those  regulatory  authorities.

BASIS  OF  PRESENTATION

The  consolidated  financial  statements include the accounts of the Company and
its  wholly  owned subsidiaries, The Canandaigua National Bank and Trust Company
(the  Bank),  Greater  Funding  of New York, Inc. (GFNYI), and HomeTown Funding,
Inc.  (HTF).  All  significant  intercompany accounts and transactions have been
eliminated  in  consolidation.  The  Company  accounts  or  investments  in
minority  owned  entities  under  the  equity  method.  The  financial
statements  have  been prepared in conformity with generally accepted accounting
principles  and  conform  with  predominant  practices  within  the  banking
industry.

In  preparing  the  consolidated financial statements, management made estimates
and  assumptions  that affect the reported amounts of assets and liabilities and
disclosure  of  contingent  assets  and liabilities at the date of the financial
statements  and  the  reported  amounts  of  revenues  and  expenses  during the
reporting  period.  Actual  results  could  differ  from  those  estimates.

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

SECURITIES

The  Company classifies its debt securities as either available for sale or held
to  maturity  as  the  Company  does  not  hold  any securities considered to be
trading.  Held to maturity securities are those that the Company has the ability
and  intent  to hold until maturity. Held to maturity securities are recorded at
amortized  cost.  All  other  securities  not  included  as held to maturity are
classified  as  available  for  sale.

Available  for  sale  securities  are recorded at fair value. Unrealized holding
gains  and  losses,  net  of  the  related  tax  effect,  on  available for sale
securities  are  excluded  from  earnings  and  are  included  in  accumulated
other comprehensive income in stockholders' equity until realized. A decline  in
fair  value  of  any available for sale or held to maturity security below  cost
that  is  deemed  other  than temporary is charged to earnings resulting in  the
establishment  of  a  new  cost  basis  for  the  security.

Premiums  and  discounts  are amortized or accreted over the life of the related
security  as  an  adjustment  to  yield  using the interest method. Dividend and
interest  income  are  recognized  when  earned.  Realized  gains and losses are
included  in  earnings  and  are  determined  using  the specific identification
method.

LOANS

Loans, other than loans designated as held for sale, are stated at the principal
amount  outstanding net  of  deferred  origination costs. Interest  and costs on
loans  are  credited  to  income  based  on  the  effective  interest  method.

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.



12                                                          Page  46

<PAGE>
               CANANDAIGUA  NATIONAL  CORPORATION  AND  SUBSIDIARIES
                   NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS

(1)  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONTINUED)

Loans  held for sale  are  carried  at  the  lower of cost or market value on an
aggregate  basis.  Market  value  is  estimated  based  on  outstanding investor
commitments,  or  in  the  absence  of  such commitments, based on current yield
requirements  or  quoted  market  prices.

The  Company  services  residential  mortgage  loans  for  the Federal Home Loan
Mortgage  Corporation  (Freddie  Mac)  and  earns  servicing  fees,  which  are
recognized  when  payments  are  received,  based upon the outstanding principal
balance  of  the loans. The cost of originating these loans is attributed to the
loans  and  is  considered in the calculation of the gain or loss on the sale of
the  loans.

ALLOWANCE  FOR  LOAN  LOSSES

The  determination  of  the allowance for loan losses is based on an analysis of
the  loan  portfolios 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.

While management uses available information to recognize losses on loans, future
additions  to  the  allowance  may  be  necessary  based  on changes in economic
conditions.  In  addition,  various  regulatory agencies, as an integral part of
their  examination process, periodically review the Company's allowance for loan
losses.  Such  agencies  may  require  the Company to recognize additions to the
allowance  based  on  their judgments about information available to them at the
time  of  their  examination.

Management,  considering current information and events regarding the borrower's
ability  to  repay their obligations, considers a loan to be impaired when it is
probable that the Company will be unable to collect all amounts due according to
the  contractual  terms  of  the loan agreement. When a loan is considered to be
impaired, the amount of the impairment is measured based on the present value of
expected  future cash flows discounted at the loan's effective interest rate, or
as  a  practical  expedient,  at  the loan's observable market price or the fair
value  of  collateral if the loan is collateral dependent. Impairment losses are
included  in the allowance for loan losses through a charge to the provision for
loan losses. Cash receipts on impaired loans are applied to reduce the principal
balance  outstanding.  In  considering  loans  for  evaluation  of  impairment,
management  generally  excludes  smaller  balance,  homogeneous  loans  -
residential  mortgage  loans,  home  equity  loans  and  all  consumer  loans.
These  loans  are  collectively  evaluated  for  impairment as discussed  above.

PREMISES  AND  EQUIPMENT

Land  is  carried  at cost. Buildings, equipment, and leasehold improvements are
carried at cost, less accumulated depreciation and amortization. Depreciation is
computed  using  straight-line and accelerated methods over the estimated useful
lives  of  the  assets,  3-25  years.  Amortization of leasehold improvements is
provided  over the lesser of the term of the lease or the estimated useful lives
of  the  assets.

INTANGIBLE  ASSETS

Goodwill,  which represents the excess of the purchase price over the fair value
of  identifiable  assets acquired in 1997, is being amortized over five years on
the  straight-line method. The amortization period is reviewed at least annually
to  determine  if  events and circumstances require the period to be reduced. At
December  31,  1999  and  1998  the  unamortized balance of goodwill amounted to
$208,000  and  $348,000,  respectively.  Insurance  expirations (customer list),
acquired  through  acquisition,  are  amortized  over  five  years, the expected
period  over which commission  income  will  be received.  The amount  remaining
to  be  amortized  at  December  31,  1999  and  1998  was $95,000 and $158,000,
respectively.






13                                                          Page  47

<PAGE>
             CANANDAIGUA  NATIONAL  CORPORATION  AND  SUBSIDIARIES

                 NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS

(1)  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONTINUED)

OTHER  REAL  ESTATE

Real  estate  acquired through foreclosure or deed in lieu of foreclosure (other
real estate) is recorded at the lower of the unpaid loan balance on the property
at  the  date  of  transfer,  or  fair  value.  Adjustments made to the value at
transfer  are  charged  to  the  allowance  for loan losses. After transfer, the
property  is carried at the lower of cost or estimated fair value less estimated
costs to sell. Adjustments to the carrying values of such properties that result
from  subsequent  declines  in  value are charged to operations in the period in
which  the  declines  occur.  Operating  earnings  and costs associated with the
properties  are  charged to expense as incurred. Gains on the sale of other real
estate  are included in results of operations when title has passed and the sale
has  met the minimum down payment and other requirements prescribed by generally
accepted  accounting  principles.

STOCK-BASED  COMPENSATION

The Company applies  the intrinsic value-based  method of accounting  prescribed
by APB  Opinion  No.  25, "Accounting  for  Stock Issued to  Employees" for  its
stock-based  compensation plans  and discloses  in these footnotes pro forma net
income and earnings per share information as if  the fair value based method had
been  adopted.

INCOME  TAXES

The  Company and its subsidiaries file a consolidated federal income tax return.
Deferred  income  tax  assets  and liabilities are recognized for the future tax
consequences  attributable  to  differences  between  the  financial  statement
carrying  amounts  of  existing  assets and liabilities and their respective tax
bases.  Deferred tax assets and liabilities are measured using enacted tax rates
expected  to  apply  to  taxable  income  in  the years in which those temporary
differences  are expected to be recovered or settled. The effect on deferred tax
assets  and  liabilities of a change in tax rates is recognized in income in the
period  that  includes  the  enactment  date.

ACCUMULATED  OTHER  COMPREHENSIVE  INCOME

The Company's  comprehensive income  consists of  only net  income  and  the net
unrealized holding gains and losses of securities available for sale, net of the
related tax effect. Accumulated other  comprehensive income on  the consolidated
statements  of  stockholders'  equity  is  presented  net  of  taxes.

TRUST  DEPARTMENT  INCOME

Assets,  at  cost, held in fiduciary or agency capacity for customers, amounting
to  $587,000,000  and  $424,000,000 at December 31, 1999 and 1998, respectively,
are  not  included  in  the accompanying consolidated balance sheets, since such
assets  are  not  assets of the Company. Fee income is recognized on the accrual
method.

CASH  EQUIVALENTS

For  the purpose of reporting cash flows, cash and cash equivalents include cash
on hand, interest bearing deposits with other financial institutions and Federal
funds  sold.

FINANCIAL  INSTRUMENTS  WITH  OFF-BALANCE-SHEET  RISK

The  Company does not engage in the use of derivative financial instruments. The
Company's  only financial instruments with off-balance-sheet risk are commercial
letters  of  credit  and  committed  mortgages  and  lines  of  credit.  These
off-balance-sheet  items  are shown on the Company's balance sheet upon funding.








14                                                          Page  48

<PAGE>
            CANANDAIGUA  NATIONAL  CORPORATION  AND  SUBSIDIARIES

                NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS

(1)  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONTINUED)

TREASURY  STOCK

Treasury  stock  is  shown  on  the  consolidated  balance  sheet  at  cost as a
reduction  of  stockholders'  equity. Shares are released  from treasury at fair
value,  with  any  gain  on  the sale reflected as an adjustment  to  additional
paid-in  capital.  Losses  are reflected  as an adjustment to additional paid-in
capital  to  the  extent  of  gains  previously  recognized,  otherwise  as  an
adjustment  to  retained  earnings.

EARNINGS  PER  SHARE

Basic  earnings per share  is calculated by  dividing  net  income  available to
common shareholders by the weighted average number of shares  outstanding during
the  year. Diluted  earnings per share  includes the maximum dilutive  effect of
stock  issuable  upon  conversion  of  stock  options.

SEGMENT  REPORTING

During 1998, the Company adopted SFAS No. 131 "Disclosures  about Segments of an
Enterprise and Related Information." SFAS No. 131 requires the Company to report
financial and  other  information  about  key revenue-producing  segments of the
Company for  which such information  is available  and is utilized  by the chief
operating  decision maker. Specific  information to be  reported for  individual
segments  include profit  and loss, certain revenue and expense items, and total
assets. A reconciliation of segment financial information to amounts reported in
the financial  statements  is also  provided.  Adoption  of SFAS No. 131 did not
result  in  significant  changes  in  the  Company's  reporting.  The  Company's
operations  are  solely  in  the financial  service  industry  and  include  the
provision of traditional  commercial banking  services,  which includes  payment
services, credit services, investment and trust services, and insurance services
to  individual, corporate  and municipal  customers. The Company operates in the
geographical regions of Western Ontario County and Monroe County and surrounding
areas in New York State. The Company has identified separate operating segments;
however, these segments  did not meet the  quantitative  thresholds for separate
disclosure.

OTHER  RECENTLY  ISSUED  ACCOUNTING  STANDARDS

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.

















15                                                          Page  49

<PAGE>

          CANANDAIGUA  NATIONAL  CORPORATION  AND  SUBSIDIARIES

               NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS

(2)  FEDERAL  FUNDS  SOLD

Income  from Federal funds sold for the years ended December 31, 1999, 1998, and
1997  was  $225,000,  $33,000,  and  $1,000,  respectively.

(3)  SECURITIES

<TABLE>


<CAPTION>


The aggregate amortized cost and fair value of Securities Available for Sale and
Securities Held to Maturity at December 31, 1999 and 1998 follow (in thousands):



                                             1999               1998
                                      ------------------   ----------------
                                    Amortized      Fair    Amortized  Fair
                                       Cost        Value     Cost     Value
                                      -------     ------   ------    ------
<S>                                   <C>        <C>      <C>       <C>
Securities Available for Sale:
  Common Stock                        $   325        528      195       437
                                      =======    =======    =====    ======

Securities Held to Maturity:
  U.S Treasury obligations            $26,865     26,715   29,936    30,126
  Mortgage-backed securities              430        436      308       309
  Obligations of state and municipal
   Subdivisions                        46,061     45,674   39,253    40,224
  Other securities                      1,980      1,980    2,982     3,029
                                      -------    -------   ------    ------
      Total                           $75,336     74,805   72,479    73,688
                                      =======    =======   ======    ======
</TABLE>



<TABLE>


<CAPTION>


Gross  unrealized  gains and gross unrealized losses on Securities Available for
Sale  and  Securities  Held to Maturity at December 31, 1999 and 1998 follow (in
thousands):

                                                1999           1998
                                         ----------------  -------------
                                             Unrealized     Unrealized
                                           Gains   Losses  Gains  Losses
<S>                                       <C>       <C>     <C>    <C>
Securities Available for Sale:
  Common Stock                            $   212     (9)     242     -
                                          =======  ======  ======  =====

Securities Held to Maturity:
  U.S Treasury obligations                $     3   (153)     201   (11)
  Mortgage-backed securities                    9     (3)       1     -
  Obligations of state and municipal
   Subdivisions                               162   (549)     985   (14)
  Other securities                              3     (3)      47     -
                                          -------  ------  ------  -----
      Total                               $   177   (708)   1,234   (25)
                                          =======  ======  ======  =====
</TABLE>










16                                                          Page  50
<PAGE>

                 CANANDAIGUA  NATIONAL  CORPORATION  AND  SUBSIDIARIES

                     NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS

(3)  SECURITIES  (CONTINUED)
<TABLE>


<CAPTION>


The  amortized  cost  and  fair value of securities Held to Maturity by years to
maturity     as  of  December  31,  1999  follow  (in  thousands):



                  Amortized Cost    Fair Value
                       ---------       -------
<S>                    <C>             <C>
Years
  Under 1              $  29,396        29,331
  1 to 5                  40,180        39,800
  5 to 10                  5,191         5,061
  10 and over                569           613
                        --------       -------
      Total            $  75,336        74,805
                        ========       =======
</TABLE>




Maturities  of  mortgage-backed securities are classified in accordance with the
contractual repayment schedules. Expected maturities will differ from contracted
maturities  since  issuers  may  have  the  right  to call or prepay obligations
without  penalties.

Securities  Held to Maturity with carrying values of $74,413,000 were pledged as
collateral  against  municipal  deposits  at  December  31,  1999.

<TABLE>


<CAPTION>


Interest  on  securities  segregated  between  taxable  interest  and tax-exempt
interest  for  the  years  ended  December  31, 1999, 1998, and 1997 follows (in
thousands):



               1999   1998   1997
             ------  -----  -----
<S>          <C>     <C>    <C>
Taxable      $2,015  2,400  2,587
Tax-exempt    1,741  1,567  1,440
             ------  -----  -----
      Total  $3,756  3,967  4,027
             ======  =====  =====
</TABLE>




The  Bank's  required  investment  in stock of the Federal Home Loan Bank (FHLB)
and  the Federal  Reserve Bank  amounted  to $3,548,000 at  December 31,  1999
and  1998, respectively,  which  equals  the  Company's  cost  basis.




















17                                                          Page  51
<PAGE>
              CANANDAIGUA  NATIONAL  CORPORATION  AND  SUBSIDIARIES

                   NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS

(4)  LOANS

<TABLE>
<CAPTION>

The  major  classifications  of  loans  at December 31, 1999 and 1998 follow (in
thousands):



                                            1999     1998
                                        --------  -------
<S>                                     <C>       <C>
Commercial, financial and agricultural  $ 62,491   43,260
Mortgages:
  Residential                             69,862   76,130
  Commercial                             141,255   83,771
Consumer:
  Auto - Indirect                        103,605   84,370
  Other                                   18,561   17,753
Other                                      2,097    3,516
Loans held for sale                          492    2,969
                                        --------  -------
    Total                                398,363  311,769
Less - allowance for loan losses           4,136    3,283
                                        --------  -------
Loans - net                             $394,227  308,486
                                        ========  =======
</TABLE>


<TABLE>

<CAPTION>

Interest  and  fees  on  loans  follow  (in  thousands):



                    Years ended December 31,
                    -----------------------
                      1999     1998    1997
                    -------  ------  ------
<S>                 <C>      <C>     <C>
Commercial          $4,416   3,319   3,575
Mortgage             14,852  15,270  15,445
Consumer and other    9,597   8,245   6,369
                    -------  ------  ------
    Total           $28,865  26,834  25,389
                    =======  ======  ======
</TABLE>
<TABLE>
<CAPTION>

A  summary  of  the  changes  in  the  allowance  for  loan  losses  follows (in
thousands):



                                 Years Ended December 31,
                                 ------------------------
                                    1999    1998     1997
                                 -------   -----    -----
<S>                              <C>       <C>    <C>
Balance at beginning of year     $ 3,283   3,153   2,675
Provision charged to operations    1,239     641     851
Loans charged off                   (875) (1,053)   (795)
Recoveries of loans charged off      489     542     422
                                 -------   -----   ------
Balance at end of year           $ 4,136   3,283   3,153
                                 =======   =====   ======
</TABLE>



The  principal  balance  of  loans  not accruing interest totaled $1,640,000 and
$2,113,000 at December 31, 1999 and 1998, respectively. The effect of nonaccrual
loans  on  interest income for the years ended December 31, 1999, 1998, and 1997
was  approximately  $138,000,  $239,000, and $636,000, respectively.  Other real
estate  amounted  to  $1,651,000  and  $1,642,000 at December 31, 1999 and 1998,
respectively,  and  is  included  in  other  assets  in the consolidated balance
sheets.

The  recorded  investment  in  loans  that are considered to be impaired totaled
$1,640,000  and $2,113,000 at December 31, 1999 and 1998, respectively. Included
in  1998's amount was $38,000 of  impaired loans for which the related allowance
for  loan  losses  was  $18,000.  The  average  recorded  investment  in
impaired  loans  during  1999,  1998,  and  1997 was $1,583,000, $2,728,000, and
$6,245,000,  respectively.  The  effect  of  not  accruing  interest  income  on
impaired  loans  was  approximately  $138,000  in  1999,  $239,000  in 1998, and
$636,000  in  1997.


18                                                          Page  52
<PAGE>

             CANANDAIGUA  NATIONAL  CORPORATION  AND  SUBSIDIARIES

                   NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS

(4)  LOANS  (CONTINUED)


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  at  December  31,  1999.

Loans serviced  for others, amounting to $80,364,000 and $73,007,000 at December
31, 1999 and 1998, respectively, are  not included in the consolidated financial
statements.

The Company's market area is generally  Western Ontario County and Monroe County
of New York State. Virtually all loans are made in its market area. Accordingly,
the  ultimate collectibility  of a substantial  portion  of the  Company's  loan
portfolio  is  susceptible  to  changes  in  the  conditions  in  this  area.

The Company's concentrations of credit risk are  as disclosed in the schedule of
loan classifications.  The concentrations of credit risk in loan commitments and
letters  of credit  parallel the  loan  classifications  reflected.  Other  than
general economic  risks, management is  not aware of any material concentrations
of  credit  risk  to  any  industry  or  individual  borrower.

(5)  PREMISES  AND  EQUIPMENT

<TABLE>


<CAPTION>


A  summary  of  premises and equipment at December 31, 1999 and 1998 follows (in
thousands):



                                                   1999    1998
                                                -------  ------
<S>                                             <C>      <C>
Land and land improvements                      $   979     979
Buildings and leasehold improvements             15,192  13,280
Furniture, fixtures, equipment, and vehicles     11,131  10,113
                                                -------  ------
                                                 27,302  24,372
Less accumulated depreciation and amortization   13,864  12,904
                                                -------  ------
Premises and equipment - net                    $13,438  11,468
                                                =======  ======

</TABLE>




Depreciation  and  amortization  expense amounted to $2,020,000, $1,820,000, and
$1,499,000  for the years ended December 31, 1999, 1998, and 1997, respectively.














19                                                          Page  53

<PAGE>

             CANANDAIGUA  NATIONAL  CORPORATION  AND  SUBSIDIARIES

                   NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS

(6)CERTIFICATES  OF  DEPOSIT

Certificates  of deposit of $100,000 or more amounted to $81,656,000 at December
31,  1999  and  $59,329,000  at  December  31,  1998.  Interest expense on these
certificates  of deposit was as follows: $3,032,000 in 1999; $2,211,000 in 1998;
and  $1,930,000  in  1997.

<TABLE>
<CAPTION>
At  December  31,  1999, the scheduled maturity of these certificates of deposit
was  as  follows  (in  thousands):



<S>      <C>
2000     $72,206
2001       8,853
2002         597
         -------
         $81,656
         =======
</TABLE>

 (7)BORROWINGS

<TABLE>
<CAPTION>

Borrowings  consisted  of  the  following  at  December  31,  1999  and 1998 (in
thousands)

                                                1999       1998
                                             -------      -----
<S>                                          <C>          <C>
Federal Home Loan Bank Line of Credit        $  3,900     2,300
Federal Home Bank Loan Bank Term Advances      18,318     4,842
                                             --------     -----
                                             $ 22,218     7,142
                                             ========     =====
</TABLE>



In  1995,  the  Bank  borrowed  $1,023,000  from  the  FHLB  at  an  effective
rate  of  2.5%  to  fund  low-income  housing  projects.

<TABLE>
<CAPTION>
Scheduled  maturity  of  the  Company's  borrowings  from  the  FHLB  at  December  31,
1999  follows  (in  thousands):

                                              Weighted Average
                                    Amount      Interest Rate
                               -----------      -------------
<S>                                <C>                <C>
2000 overnight line of credit      $ 3,900             3.60%
2000 other                          16,324             5.88
2001                                 1,124             6.15
2002                                    24             2.50
2003                                    24             2.50
2004                                    24             2.50
After 2004                             798             2.50
                                   -------
    Total                      $    22,218             5.36%
                                   =======
</TABLE>



The  Company  maintains  a $24,000,000 overnight line of credit with the FHLB of
New  York.  Advances are payable  on  demand  and generally bear interest at the
federal funds rate plus .10%.  The  Company  also has  access to the FHLB's Term
Advance Program, which allows  the  bank  to borrow up to $24,000,000 at various
terms  and rates. Under the  terms  of  a  blanket collateral agreement with the
FHLB, these outstanding balances are collateralized by the Company's  investment
in  FHLB  stock  and  certain  other  qualifying  assets  not  otherwise pledged
(primarily  first  mortgage  loans).

20                                                          Page  54
<PAGE>

             CANANDAIGUA  NATIONAL  CORPORATION  AND  SUBSIDIARIES

                   NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS

(8)INCOME  TAXES
<TABLE>

<CAPTION>

Total  income  taxes  for the years ended December 31, 1999, 1998, and 1997 were
allocated  as  follows  (in  thousands):



                                                 1999   1998   1997
                                               ------  -----  -----
<S>                                            <C>     <C>    <C>
Income from operations                         $  896  1,686  1,762
Change in stockholders' equity for unrealized
   gain on securities available for sale           16     17     27
                                               ------  -----  -----
                                               $  912  1,703  1,789
                                               ======  =====  =====
</TABLE>


<TABLE>

<CAPTION>

The  components  of  income  tax  expense  (benefit)  relating  to  income  from
operations
follows  (in  thousands):



                       Years Ended December 31,
                     --------------------------
Current:                1999     1998      1997
                     -------    -----    ------
<S>                  <C>        <C>      <C>
  Federal            $ 1,033    1,465    1,503
  State                  345      477      469
                     -------    -----    ------
                       1,378    1,942    1,972
                     -------    -----    ------

Deferred:
  Federal               (478)    (221)    (186)
  State                   (4)     (35)     (24)
                     -------    -----    ------
    Total               (482)    (256)    (210)
                     -------    -----    ------
                     $   896    1,686    1,762
                     =======    =====    ======
</TABLE>


<TABLE>
<CAPTION>
Income  tax  expense  differed  from  the  amounts  computed  by  applying
the  applicable  U.S.  Federal  corporate  tax  rates  to  pretax  income
from  operations  as  follows  (in  thousands):

                                        Years Ended December 31,
                                       -------------------------
                                         1999     1998      1997
                                      -------   ------   -------
<S>                                   <C>       <C>      <C>
Tax expense at statutory rate of 34%  $ 1,106    1,790    1,870
Tax-exempt interest                      (591)    (551)    (489)
Nondeductible interest expense             76       61       62
State taxes, net of federal benefit       228      292      310
Change in valuation allowance
   For deferred tax assets                (22)      45       12
Other                                      99       49       (3)
                                      -------   ------   -------
Total                                 $   896    1,686    1,762
                                      =======   ======   =======

Effective tax rate                       27.5%   32.0%    32.0%
                                      =======   ======   ======
</TABLE>










21                                                          Page  55
<PAGE>

              CANANDAIGUA  NATIONAL  CORPORATION  AND  SUBSIDIARIES

                   NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS

(8)INCOME  TAXES  (CONTINUED)
<TABLE>

<CAPTION>

The  tax effects of temporary differences that give rise to significant portions
of the deferred tax assets and deferred tax liabilities at December 31, 1999 and
1998  are  presented  below:



                                                           1999    1998
                                                        -------  ------
<S>                                                      <C>      <C>
Deferred tax assets:
  Allowance for loan losses - books                      $1,619   1,312
  Incentive stock plan                                      525     412
  Excess servicing                                           45      60
  NOL credits from subsidiaries                             199     256
  State NOL arising from nonconsolidation for state tax
   purpose only                                             49      53
  Interest on non-accrual loans                             101     143
  Other                                                      59      55
                                                         -------  ------
      Deferred tax assets before allowance                2,597   2,291
    Valuation allowance                                     (65)    (87)
      Deferred tax assets                                 2,532   2,204
                                                         -------  ------
Deferred tax liabilities:
  Allowance for loan losses - tax                           322     329
  Depreciation                                              293     472
  Net unrealized gains on available for sale securities      83      99
  Accretion on bonds                                         51      19
                                                         -------  ------
      Deferred tax liabilities                              749     919
                                                         -------  ------
      Net deferred tax asset                             $1,783   1,285
                                                         =======  ======
</TABLE>


Realization of deferred tax assets is  dependent upon  the generation of  future
taxable  income  or  the  existence of  sufficient  taxable  income  within  the
carryback period.  A valuation allowance is provided when it is more likely than
not  that some  portion of  the deferred  tax assets  will not  be  realized. In
assessing the need for a valuation allowance, management considers the scheduled
reversal of deferred  tax liabilities, the level  of historical taxable  income,
and  projected  future  taxable  income  over the  periods  which  the temporary
differences comprising  the deferred  tax assets are  deductible.  Based  on its
assessment, management  determined that a valuation allowance of $65,000 against
its  non-bank  subsidiaries'  Net  Operating  Loss (NOL)  was  necessary.  As of
December  31, 1999  there were  approximately $108,000  of mortgage tax  credits
available  to  offset  future  state  tax  liabilities  of  GFNYI.

(9)  STOCKHOLDERS'  EQUITY

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.

(10)  EARNINGS  PER  SHARE

<TABLE>

<CAPTION>

Basic and diluted earnings per share for the years ended December 31, 1999, 1998,
and  1997  were  computed  as  follows  (dollars in thousands, except share data)

                                                         1999      1998      1997
                                                    ---------   -------   -------
<S>                                                 <C>         <C>       <C>
BASIC EARNINGS PER SHARE
  Net income applicable to common shareholders      $   2,357     3,587     3,737
  Weighted average common shares outstanding          159,029   160,254   160,952
                                                    ---------   -------   -------
  Basic Earnings Per Share                          $   14.82     22.38     23.22
                                                    =========   =======   =======
</TABLE>




22                                                          Page  56
<PAGE>
             CANANDAIGUA  NATIONAL  CORPORATION  AND  SUBSIDIARIES

                   NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS

(10)  EARNINGS  PER  SHARE  (CONTINUED)
<TABLE>

<CAPTION>



                                                         1999      1998      1997
                                                    ---------   -------   -------
<S>                                                 <C>         <C>       <C>
DILUTED EARNINGS PER SHARE
  Net income applicable to common shareholders      $   2,357     3,587     3,737
                                                    ---------   -------   -------
  Weighted average common shares outstanding          159,029   160,254   160,952

  Effect of dilutive securities:
    Stock options                                         492         -         -
                                                    ---------   -------   -------
    Total                                             159,521   160,254   160,952

  Diluted earnings per share                        $   14.78     22.38     23.22
                                                    =========   =======   =======
</TABLE>


 (11)  EMPLOYEE  BENEFITS

PROFIT  SHARING  PLAN

The  Company has a profit sharing plan covering substantially all Bank employees
upon  completion  of 1,000 hours of service with respect to full-time employees,
and  870 hours of service for part-time employees. Contributions to the plan are
determined  by  a  mathematical  formula  which  takes  into  account  average
net  income  of  the  Bank  for the current and prior year, and the level of the
Bank's stockholders' equity. It is the Company's policy to fund current costs as
they  accrue.  Profit  sharing  plan expense amounted to $974,000, $835,000, and
$763,000  for  the  years ended December 31, 1999, 1998, and 1997, respectively.

EMPLOYEE  STOCK  OWNERSHIP  PLAN

The  Company  has  an  employee stock ownership plan (ESOP) for employees of the
Bank.  Annual  contributions  are  made  at  the  discretion  of  the  Board  of
Directors.  ESOP expense amounted to $76,000, $63,000, and $62,000 for the years
ended  December  31, 1999, 1998, and 1997, respectively. Shares distributed to a
participant  upon termination of service are subject to a put option whereby the
participant  may  cause  the  Company  to  purchase the shares at fair value. At
December  31,  1999  and  1998  the plan held 1,802 and 1,666 shares with a fair
value  at  the  respective  dates  of  $697,000  and  $645,000.

(12)  INCENTIVE  STOCK  PLANS

STOCK  OPTION  PLAN

The Company's incentive stock option program for employees  authorizes grants of
options  to purchase  up to  16,000 shares of  common stock.  At  its March 1999
meeting,  the  Board of  Directors  granted, effective  January  1, 1999,  4,571
non-qualified  options to certain employees.  Of this amount, 3,210 options were
granted in  replacement of  the future appreciation  of previously granted Stock
Appreciation  Rights  and  Phantom  Stock Awards.   The  remaining  options were
granted to management under the Company's incentive compensation plan for 1998's
performance.   The options  were granted  with an  exercise  price  equal to the
estimated fair value of the  common stock  on the grant date.   The  options are
exercisable  at  times  -  varying  from  five  years  to  seventeen years.  The
options
are  fully  vested  and  have  no  set  expiration  date.

<TABLE>
<CAPTION>

The  following  summarizes  outstanding  and exercisable options at December 31,
1999:

                                                           Weighted
                                          #           Average Price
                                        -----             ---------
<S>                                    <C>                <C>
Options outstanding, January 1              -                     -
Granted                                 4,571             $  360.52
Exercised                                   -                     -
Expired                                     -                     -
                                       ------             ---------
Options outstanding, December 31        4,571             $  360.52
                                       ======             =========
Options exercisable, December 31        1,853             $  360.52
                                       ======             =========
Options available for future grants    11,429
                                       ======
</TABLE>



23                                                          Page  57

<PAGE>
             CANANDAIGUA  NATIONAL  CORPORATION  AND  SUBSIDIARIES

                   NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS

(12)  INCENTIVE  STOCK  PLANS  (CONTINUED)

All  options outstanding (both  exercisable and  unexercisable) at  December 31,
1999  have an exercise price of $360.52.  The weighted average  expected life of
the  options  is 12.3 years.  Since  the options have no stated expiration date,
the  remaining  life is calculated as the number of years from grant date to the
grantee's  65th  birthday.

The Company applies APB Opinion No. 25 in accounting for its stock  option plan,
and accordingly, no  compensation cost has  been recognized for its  fixed-award
stock options in the consolidated  statement of  income.  Had  compensation cost
been determined based  on the fair  value at the grant date of the stock options
using option valuation models consistent with the approach of FASB Statement No.
123, the Company's net income and earnings per share for the year ended December
31, 1999  would have  been reduced  to the  pro forma  amounts  indicated  below
(net  income  in  thousands):

Net  Income
  As  reported                              $  2,357
  Pro  forma                                $  2,118

Earnings  per  share                           Basic         Diluted
                                               -----         -------
  As  reported                              $  14.82         $  14.78
  Pro  forma                                $  13.32         $  13.28

The per  share  fair  value of stock options  granted during 1999 of $73.57, was
determined  using  the  Black-Scholes  option-pricing  model  with the following
weighted  average  assumptions:

Expected  dividend  yield                                       3.09%
Risk  free  interest  rate                                      4.92%
Expected  life                                            12.3  years
Volatility                                                     14.73%

The  Company also  has an  incentive stock  plan for  senior  management  of the
Company which allows for the issuance of Phantom  Stock Options (PSA)  and Stock
Appreciation  Rights  (SAR)  to key  employees  based upon  performance  factors
established by the Board of Directors, and is generally tied to increases in the
value of  the Company's  common stock. PSAs  represent the right to receive, for
each phantom  share of  common stock  covered by the  PSA, payment  equal to the
higher of  the book value  or market value per share of common stock on the date
of exercise. Payment can be made in cash, shares  of the Company, or both at the
discretion of the Board of  Directors. PSAs are exercisable  at the later of age
55 or 15 years of continuous employment with the Company or at normal retirement
age (65).  SARs represent  the right to receive payment  equal to the amount, if
any, by which the higher of the book  value or market value per share  of common
stock on the date of exercise exceeds the SARs grant value. SARs are exercisable
five  years from  the  date of  grant. At  December 31, 1999,  3,052  PSAs  were
outstanding  and 2,508 SARs were  outstanding at  prices ranging from $114.00 to
$242.00.

There is no  difference between  the Company's previous method of accounting for
its incentive  plan and the provisions  of SFAS No. 123; therefore, no pro forma
information  is  provided.

PHANTOM  STOCK  AND  STOCK  APPRECIATION  RIGHTS  PLAN

The maximum  value of the  PSAs and SARs  was frozen as of December 31, 1998 and
future  appreciation  associated  with  increases  in the  market  value of  the
Company's common stock was replaced with stock options.  The Company has accrued
a  liability  of  $1,242,000  at  December  31,  1999  representing  the  vested
obligation under  the plan. Expenses of the plan amounted to $269,000, $137,000,
and  $110,000,  for  the  years  ended  December  31,  1999,  1998,  and  1997,
respectively.

24                                                          Page  58
<PAGE>
             CANANDAIGUA  NATIONAL  CORPORATION  AND  SUBSIDIARIES

                   NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
(13)  LEASES

The  Company  leases  certain  buildings  and office space under operating lease
arrangements.  Rent  expense  under  these  arrangements amounted to $376,000 in
1999,  $284,000 in 1998, and $238,000 in 1997.  Real  estate  taxes,  insurance,
maintenance,  and other  operating expenses  associated  with  leased  buildings
and  office  space  are  generally  paid  by  the  Company.

<TABLE>
<CAPTION>

A summary of noncancellable long-term operating lease commitments as of December
31,  1999  follows  (in  thousands):

Years ending
December 31,         Amount
--------------       -------
<S>                  <C>
2000                 $   849
2001                     852
2002                     802
2003                     763
2004                     613
2005 and after           878
                     -------
  Total              $ 4,757
                     =======
</TABLE>




(14)  COMMITMENTS  AND  CONTINGENCIES

In  the  normal  course of business there are various outstanding commitments to
extend credit which are not reflected in the accompanying consolidated financial
statements.  Because  many  commitments  and almost all letters of credit expire
without being funded in whole or in part, the contract amounts are not estimates
of  future  cash  flows.  Loan  commitments  have  off-balance-sheet credit risk
because  only  origination  fees  are  recognized  in  the  balance  sheet until
commitments  are  fulfilled  or expire. The credit risk amounts are equal to the
contractual amounts, assuming that the amounts are fully advanced and collateral
or  other  security  is  of  no  value.  The Company's policy generally requires
customers  to  provide  collateral,  usually in the form of customers' operating
assets  or  property,  prior to the disbursement of approved loans. The contract
amounts  of  these  commitments at December 31, 1999 were: Commercial letters of
credit  $5,800,000  and  unused commitments $37,422,000. The contract amounts of
these  commitments  at  December  31,  1998  were:  Commercial letters of credit
$3,462,000 and unused commitments $39,842,000. The majority of these commitments
have  terms  up  to  one  year  at  fixed  interest rates current at the date of
origination.  Commitments  to  fund  residential  mortgage  loans  amounted  to
$4,277,000  at  December  31,  1999.

The  Bank has committed  $2,200,000 to fund a 22% limited partnership investment
interest  in  Cephas  Capital  Partnership,  LP.  This small business investment
company  was  established  for  the  purpose  of  providing  financing  to small
businesses  in  conjunction with programs established by the U.S. Small Business
Administration.  At December 31, 1999, the Company had funded $1,564,000 of this
commitment  and  carries the investment under the equity method in other assets.

The  Bank  is  required  to  maintain  average reserve balances with the Federal
Reserve  Bank.  The  average  amount of such reserve balances for the year ended
December  31,  1999  was  approximately  $6,900,000.

In the normal course of business, the Company has various contingent liabilities
outstanding  that  are  not  included  in the consolidated financial statements.
Management  does  not  anticipate  any  material  losses  as  a  result of these
contingent  liabilities.



25                                                          Page  59
<PAGE>

             CANANDAIGUA  NATIONAL  CORPORATION  AND  SUBSIDIARIES

                   NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS

(15)  REGULATORY  MATTERS

The  Bank  is 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
Bank's  financial  statements.  Under  capital  adequacy  guidelines  and  the
regulatory  framework  for prompt corrective action, the Bank must meet specific
capital  guidelines  that  involve  quantitative  measures of the Bank's assets,
liabilities,  and  certain  off-balance-sheet  items calculated under regulatory
accounting  practices.  The  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  Bank  to  maintain minimum amounts and ratios (as set forth in the
table  below)  of  total  and  Tier I capital (as defined in the regulations) to
risk-weighted assets (as defined), and of Tier I capital (as defined) to average
assets (as defined). Management believes, as of December 31, 1999, that the Bank
meets  all  capital  adequacy  requirements  to  which  it  is  subject.

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 table. There are no
conditions  or  events  since  that  notification  that management believes have
changed  the  Bank's  category.

<TABLE>

<CAPTION>




                                                                       To Be Well-
                                                                       Capitalized
                                                                       Under Prompt
                                                       For Capital     Corrective
                                                       Adequacy        Action
(dollars in thousands)                Actual           Purposes        Provisions
                               --------------------  ---------------- ---------------
                                 Amount       Ratio    Amount   Ratio  Amount   Ratio
                               --------       -----   -------    ---- -------   -----
<S>                             <C>            <C>    <C>        <C>  <C>        <C>
As of December 31, 1999
  Total Capital
     (to risk weighted assets)  $40,985        10.2%  $32,153    8.0%  $40,191   10.0%
  Tier 1 Capital
     (to risk weighted assets)  $36,848         9.2%  $16,077    4.0%  $24,115    6.0%
  Tier 1 Capital
     (to average assets)        $36,848         7.2%  $20,408    4.0%  $25,509    5.0%

As of December 31, 1998
  Total Capital
     (to risk weighted assets)  $39,956        13.0%  $24,620    8.0%  $30,776   10.0%
  Tier 1 Capital
     (to risk weighted assets)  $36,564        11.9%  $12,310    4.0%  $18,465    6.0%
  Tier 1 Capital
     (to average assets)        $36,564         8.6%  $16,977    4.0%  $21,221    5.0%

</TABLE>








26                                                          Page  60



<PAGE>

            CANANDAIGUA  NATIONAL  CORPORATION  AND  SUBSIDIARIES

                   NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS

(16)  LOANS  TO  DIRECTORS  AND  OFFICERS

Certain  executive  officers,  directors,  and  their  business  interests  are
customers  of  the  Company.  Transactions  with  these  parties  are  based  on
substantially  the  same  terms  as  similar transactions with others and do not
carry  more  than  normal  credit risk. At December 31, 1999 and 1998, loans and
unused  commitments  to  these  related  parties  amounted  to  $4,497,000  and
$4,311,000,  respectively.

(17)  CONDENSED  FINANCIAL  INFORMATION  -  PARENT  COMPANY  ONLY

<TABLE>
<CAPTION>

The  following  are  the  condensed  balance  sheets,  statements of income, and
statements  of  cash  flows  for  Canandaigua  National Corporation, (dollars in
thousands).

BALANCE SHEETS
---------------
                                                       December 31,
                                                    ------------------
                                                        1999      1998
                                                   ---------   -------
<S>                                                <C>         <C>
Assets:
  Cash                                             $   1,342      114
  Securities available for sale                          177      185
  Premises and equipment, net                            710      730
  Investment in subsidiaries                          40,497   41,328
  Other assets                                            36      122
                                                   ---------   -------
      Total Assets                                 $  42,762   42,479
                                                   =========   =======

Liabilities:
  Other liabilities                                $     285        1
Stockholders' equity:
  Common stock                                         8,110    8,110
  Additional paid-in capital                           8,506    8,495
  Retained earnings                                   27,087   26,563
  Treasury stock (3,725 shares in 1999
        and 2,479 shares in 1998)                     (1,348)    (835)
  Accumulated other comprehensive income                 122      145
                                                   ---------   -------
      Total stockholders' equity                      42,477   42,478
                                                   ---------   -------
      Total liabilities and stockholders' equity   $  42,762   42,479
                                                   =========   =======
</TABLE>


<TABLE>

<CAPTION>




STATEMENTS OF INCOME
                                             Years Ended December 31,
                                           ---------------------------
                                               1999     1998      1997
                                           --------    -----    ------
<S>                                        <C>         <C>      <C>
Income - Dividends from the Canandaigua
 National Bank and Trust Company           $  2,025    5,122    2,975
Other income                                     18       11        7
Other expense                                   (16)     (34)     (66)
                                           --------    -----    ------
    Income before undistributed income of
     subsidiaries                             2,027    5,099    2,916
Undistributed (distributions in excess
 of)current year income of subsidiaries         330   (1,512)     821
                                           --------    -----    ------
    Net income                             $  2,357    3,587    3,737
                                           ========    =====    ======
</TABLE>



27                                                          Page  61
<PAGE>

              CANANDAIGUA  NATIONAL  CORPORATION  AND  SUBSIDIARIES

                   NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS

(17)     CONDENSED  FINANCIAL  INFORMATION  -  PARENT  COMPANY  ONLY (CONTINUED)
<TABLE>
<CAPTION>

STATEMENTS  OF  CASH  FLOWS

                                                       Years Ended December 31,
                                                      --------------------------
                                                          1999     1998     1997
                                                      --------  -------  -------
<S>                                                   <C>       <C>      <C>
Cash flows from operating activities:
  Net income                                          $  2,357    3,587    3,737
  Adjustments to reconcile net income to
   net cash from operating activities:
    Depreciation and amortization                           25       30       10
    (Undistributed) distributions in excess
     of current year earnings of subsidiaries             (330)   1,512     (821)
    Other                                                    5        -       (7)
                                                      --------  -------  -------
    Net cash provided by operating activities            2,057    5,129    2,919
                                                      --------  -------  -------

Cash flows from investing activities:
  (Purchase) sale of subsidiaries                        1,564        -     (718)
  Decrease in other real estate                            105        -      450
  Additional capital investments in subsidiaries          (158)  (3,037)    (202)
  Fixed assets purchased, net                               (5)     (17)    (743)
                                                      --------  -------  -------
    Net cash provided by investing activities            1,506   (3,054)  (1,213)
                                                      --------  -------  -------

Cash flows from financing activities:
  Proceeds from sale of treasury stock                      67       47       42
  Purchase of treasury stock                              (569)    (348)    (398)
  Dividends paid                                        (1,833)  (1,766)  (1,609)
                                                      --------  -------  -------
      Net cash used by financing activities             (2,335)  (2,067)  (1,965)
                                                      --------  -------  -------

      Net increase in cash                               1,228        8     (259)
      Cash at beginning of year                            114      106      365
                                                      --------  -------  -------
      Cash at end of year                             $  1,342      114      106
                                                      ========  =======  =======
</TABLE>





















28                                                          Page  62
<PAGE>

            CANANDAIGUA  NATIONAL  CORPORATION  AND  SUBSIDIARIES

                   NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS

(18)  FAIR  VALUES  OF  FINANCIAL  INSTRUMENTS

The  following  methods  and assumptions were used to estimate the fair value of
each  class  of  financial  instrument:

CASH  AND  CASH  EQUIVALENTS

For  these  short-term  instruments  that  generally mature 90 days or less, the
carrying  value  approximates  fair  value.

SECURITIES

Fair  values  for securities are based on quoted market prices or dealer quotes,
where  available.  Where quoted market prices are not available, fair values are
based  on  quoted  market  prices  of  comparable  instruments.  Included herein
are  the  Bank's required investments in stock of the Federal Home Loan Bank and
the  Federal  Reserve  Bank.

LOANS

Fair  values  are  estimated  for  portfolios  of  loans  with similar financial
characteristics. Loans are segregated by type such as loans adjustable by prime,
commercial,  mortgages,  installment,  and  other  consumer.

The  fair  value of performing loans is calculated by discounting scheduled cash
flows  through the estimated maturity using estimated market discount rates that
reflect  the  credit  and  interest rate risk inherent in the loan category. The
estimate  of  maturity  is  based  on  the  average  maturity  for  each  loan
classification.

Delinquent  loans  (not in foreclosure) are valued using the method noted above.
While  credit  risk  is  a  component  of the discount rate used to value loans,
delinquent  loans  are  presumed  to  possess  additional  risk.  Therefore, the
calculated  fair  value  of  loans delinquent more than 30 days but less than 91
days  delinquent,  is  reduced  by an allocated amount of the allowance for loan
losses.  The  fair  value  of  loans  currently  in  foreclosure is estimated to
approximate  carrying  value, as such loans are generally carried at fair value.

DEPOSITS

The  fair  value  of  demand  deposits,  savings  accounts,  and  money  market
accounts  is  the amount payable on demand at the reporting date. The fair value
of  fixed  maturity certificates of deposit is estimated using a discounted cash
flow  approach  that  applies  current  market  rates (prevailing CD rates) to a
schedule  of  aggregated  expected  maturities  on  time  deposits.



















29                                                          Page  63
<PAGE>

            CANANDAIGUA  NATIONAL  CORPORATION  AND  SUBSIDIARIES

                   NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS

(18)  FAIR  VALUES  OF  FINANCIAL  INSTRUMENTS  (CONTINUED)

BORROWINGS:

The  fair  value  of  borrowings  is  calculated  by  discounting scheduled cash
flows
through  the  estimated  maturity using market rates presently available for new
borrowings.

<TABLE>


<CAPTION>


The  estimated  fair  values  of  the  Company's  financial  instruments  are  as  follows  (dollars
in  thousands):



                                   December 31, 1999   December 31, 1998
                                  ------------------  ------------------
                                  Carrying    Fair    Carrying    Fair
                                    Amount   Value(1)   Amount   Value(1)
                                ----------  --------  --------  --------
<S>                             <C>         <C>       <C>       <C>
Financial Assets:
  Cash and equivalents          $   26,834    26,834    24,206    24,206
  Securities                        79,412    78,881    76,464    77,673
  Loans, net                       394,227   393,890   308,486   318,735

Financial Liabilities:
  Deposits:
  Demand accounts, savings and
   money market accounts           227,228   277,228   230,561   230,561
  Certificates of deposit          177,062   176,832   145,946   147,109
  Borrowings                        22,218    22,078     7,142     6,863

Off-balance-sheet commitments:
  Commercial letters of credit  $        -        58         -        35
  Unused lines of credit                 -         -         -         -

<FN>
(1)Fair  value estimates are made at a specific point in time, based on relevant
market  information  and  information  about  the  financial  instrument.  These
estimates  are  subjective  in  nature  and involve uncertainties and matters of
significant  judgment and therefore cannot be determined with precision. Changes
in  assumptions  could  significantly  affect  the  estimates.

Fair  value of commitments to extend credit approximates the fee charged to make
the  commitments.

</TABLE>
















30                                                          Page  64


<PAGE>
                               COMMON  STOCK  DATA

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  may  not  be  indicative of the actual market value of the
Company's  stock.  The  following  table  sets  forth  a summary of the weighted
average  sale  price,  book value at quarter end, and semi-annual dividends paid
per  share  since  the  first  quarter  of  1994.
<TABLE>


<CAPTION>




AVERAGE                     DIVIDEND
SALE PRICE      BOOK VALUE   PAID
-----------     -----------  -----
<S>                    <C>          <C>          <C>
1999
-----------
4th quarter            no sales     $268.02
3rd quarter            $437.18      $262.86      $5.75
2nd quarter            $413.98      $265.35
1st quarter            $400.00      $263.51      $5.75

1998
-----------
4th quarter            no sales     $265.94
3rd quarter            $360.52      $261.09      $5.50
2nd quarter            no sales     $260.72
1st quarter            $351.16      $255.68      $5.50

1997
-----------
4th quarter            no sales     $254.92
3rd quarter            $335.87      $252.57      $5.25
2nd quarter            $320.59      $251.25
1st quarter            $326.61      $243.32      $4.75

1996
-----------
4th quarter            $320.31      $240.69
3rd quarter            $326.74      $236.63      $4.50
2nd quarter            $324.86      $237.41
1st quarter            no sales     $232.52      $4.25

1995
-----------
4th quarter            no sales     $232.06
3rd quarter            $307.09      $226.65      $3.50
2nd quarter            $293.15      $223.46
1st quarter            $288.71      $216.94      $3.50

1994
-----------
4th quarter            $259.87      $214.55
3rd quarter            $256.64      $208.23      $3.00
2nd quarter            $240.34      $205.25
1st quarter            no sales     $199.09      $3.00
</TABLE>

As  stated  above,  the  stock  of  the  Company  is  not listed with a national
securities  exchange;  therefore,  no  formal  bid  and asked for quotations are
available.






31                                                          Page  65

<PAGE>


                            COMMUNITY  ADVISORY  COMMITTEES



(photograph  of  committee)
Bloomfield  Bank  Office

Joseph  Ferris,  DVM,  David  Hamlin,  Jr.,
Frank  J.  Marianacci,
Judith  S.  Smith,  Barbara  A.  Thorpe


(photograph  of  committee)
Farmington  Bank  Office

Lawrence  E.  Potter,  Henry  A.  Trickey,  Jr.
Mary  Catherine  VanBortel,  Anne  P.  Fessler,  DVM


(photograph  of  committee)
Honeoye  Bank  Office

Ralph  C.  Annechino,  George  A.  Ward,
Earl  L.  Mastin,  Herbert  E.  Treble,  Kathleen  A.  Rice


(photograph  of  committee)
Manchester-Shortsville  Bank  Office

Mary  C.  Record,  Gary  H.  Bliss,  Charles  D.  Zonneville,
Diane  C.  Mordue


(photograph  of  committee)
Mendon  Bank  Office

A.  Jack  Leckie,  Charles  H.  Meisenzahl,
Clayton  G.  Zuber,  Christopher  M.  Keys,  Marvin  E.  Hogan


(photograph  of  committee)
Victor  Bank  Office

John  W.  VanVechten,  Gary  L.  Bennett,
William  H.  Turner,  Eldred  M.  Sale,  L.  Kenneth  Bliss


(photograph  of  committee)
Webster  Bank  Office

David  W.  Nytch,  Jeffery  C.  Riedel,  Kathleen  Vasile,  Ross  J.  Willink
















32                                                          Page  66

<PAGE>
THE  CANANDAIGUA  NATIONAL  BANK  AND  TRUST  COMPANY

OFFICERS

OFFICE  OF  THE  PRESIDENT:
George  W.  Hamlin,  IV,  President,  CEO,  Trust  and  CRA  Officer
Jean  M. Baldick, Assistant Vice President, Executive Assistant to the President
Lawrence  A.  Heilbronner,  Vice  President  -  Finance
Robert  L.  Simpson,  Assistant  Vice  President  -  Finance
RETAIL  SERVICES:
Robert  G.  Sheridan,  Senior  Vice  President  -  Cashier
Judith  M.  Stewart,  Vice  President  -  Training,  Community Office Operations
Richard  T.  Wade,  Assistant  Vice  President  -  Consumer  Loans
J.  Thomas  Lenda,  Assistant  Vice  President  -  Mortgage  Origination
Lori  R.  Ellis,  Assistant  Vice  President
Jane  R.  Hamlin,  Assistant  Vice  President
Richard  J.  Ertel,  Assistant  Vice  President
Denise  J.  Salvatore,  Assistant  Branch  Administrator
G.  Karl  Smith,  Bank  Security  Officer
Cheryl  A.  Hurd,  Banking  Officer  -  Consumer  Loans
COMMERCIAL  SERVICES:
James  C.  Minges,  Senior  Vice  President
Wesley  L.  Talbett,  Vice  President
William  E.  Pearce,  Vice  President
Steven  W.  Robertson,  Vice  President
Carl  A.  Mabie,  Vice  President  -  Resource  Recovery,  Credit  Services
A.  Rosamond  Zatyko,  Vice  President  -  Credit  Administration
Robert  L.  Lowenthal,  Vice  President
Gary  L.  Babbitt,  Vice  President
Richard  A.  Szabat,  Vice  President
Michael  J.  Drexler,  Vice  President
Michael  S.  Mallaber,  Vice  President
JoAnn  N.  VanderSal,  Vice  President
Teresa  P.  Iula,  Assistant  Vice  President
William  J.  Van  Damme,  Assistant  Vice  President
Keith  J.  Goebel,  Assistant  Vice  President
Bernard  E.  Belcher,  Assistant  Vice  President
Dorothy  A.  Ducatte,  Project  Manager  -  Assets,  Assistant  CRA  Officer
Tamra  A.B.  O'Donnell,  Product  Manager
Sandra  J.  Holley,  Collateral  Control  Officer
INVESTMENT  SERVICES:
Gregory  S.  MacKay,  Senior  Vice  President
James  M.  Exton,  Vice  President  -  Investment  Officer
Scott  B.  Trumbower,  Vice  President  -  Investment  Officer
Robert  J.  Swartout,  Vice  President  -  Investment  Officer
Anthony  D.  Figueiredo,  Vice  President  -  Trust  Investment  Officer
Sandra  A.  Lancer,  Vice  President  -  Employee  Benefits  Trust  Officer
Mary  Kay  Bashaw,  Vice  President  -  Investment  Officer
Patricia  A.  McAuley,  Assistant  Vice  President  -  Investment  IRA's
Jay  J.  Bachstein,  Assistant  Vice  President  -  Investment  Officer
TRUST  SERVICES:
Richard  H.  Hawks,  Jr.,  Senior  Vice  President  -  Trust  Officer
Paul  R.  Callaway,  Vice  President  -  Trust  Officer
M.  Beth  Uhlen,  Vice  President  -  Manager  Trust  Operations
Sharon  E.  Greisberger,  Assistant  Vice  President
Kevin  D.  Kinney,  Assistant  Vice  President  -  Trust  Development  Officer
Joseph  P.  Coonan,  Trust  Development  Officer
OPERATIONS:
David  R.  Morrow,  Senior  Vice  President
Kathleen  G.  Corry,  Vice  President  -  Bank  Operations
Sandra  U.  Roberts,  Vice  President  -  Manager  Data  Processing
Susan  H.  Foose,  Vice  President  -  Retail  Operations
Gerald  E.  Terragnoli,  Assistant  Vice  President  -  Senior  Systems  Analyst
Michael  A.  Mandrino,  Assistant Vice President - Information Systems Architect
Dawn  C.  Phelps,  Assistant  Vice  President
AUDIT:
Linda  M.  Rogers,  CFSA,  CBA,  Vice  President  -  Corporate  Audit  Manager
Gretchen  A.  Alles,  Senior  Auditor
Diane  B.  Savage,  Audit  Officer
MARKETING:
Stephen  R.  Martin,  Vice  President  -  Marketing
ADMINISTRATIVE:
Mary  Ann  M.  Ridley,  Vice  President  -  Human  Resources
Marie  E.  Dastin,  Human  Resources  Officer
Vicki  B.  Mandrino,  Compliance  Officer


33                                                          Page  67

<PAGE>
               THE  CANANDAIGUA  NATIONAL  BANK  AND  TRUST  COMPANY
                           COMMUNITY  BANKING  OFFICES
BLOOMFIELD  BANK  OFFICE
  Barbara  A.  Thorpe,  Assistant  Vice  President  -  Community  Office Manager
  Judy  A.  Reader,  Banking  Officer

CANANDAIGUA  BANK  OFFICE
  Michael  D.  O'Donnell,  Assistant  Vice  President - Community Office Manager
  Roy  M.  Beecher,  Assistant  Vice  President
  Marcia  M.  Minges,  Assistant  Vice  President
  Linda  M.  Keyes,  Consumer  Services  Officer

CHILI  BANK  OFFICE
  Mary  Anne  Burkhart,  Assistant  Vice  President  -  Community Office Manager
  Commercial  Services:
    Richard  A.  Szabat,  Vice  President
    Michael  S.  Mallaber,  Vice  President

CUSTOMER  CALL  CENTER
  Barbara  A  Finch,  Call  Center  Manager

EASTVIEW  MALL  BANK  OFFICE
  Robin  A.  Erb,  Community  Office  Manager

FARMINGTON  BANK  OFFICE
  Henry  A.  Trickey  Jr.,  Assistant  Vice President - Community Office Manager
  Dianne  M.  Tucker,  Banking  Officer

GREECE  BANK  OFFICE
  Laurel  L.  Harrington,  Assistant  Vice  President - Community Office Manager
  Peter  J.  Bevan,  Banking  Officer
  Commercial  Services:
    JoAnn  N.  VanderSal,  Vice  President

HONEOYE  BANK  OFFICE
  Kathleen  A.  Rice,  Assistant  Vice  President  -  Community  Office  Manager
  Sandra  L.  D'Angelo,  Banking  Officer

HONEOYE  FALLS  BANK  OFFICE
  Gerald  V.  Bowe,  Community  Office  Manager
  Audrey  A,  Evangelist,  Banking  Officer

IRONDEQUOIT  BANK  OFFICE
  Timi  L.  Wright,  Community  Office  Manager

LAKESHORE  BANK  OFFICE
  Dolores  J.  Reynolds,  Assistant  Vice  President  - Community Office Manager

MANCHESTER-SHORTSVILLE  BANK  OFFICE
  Diane  C.  Mordue,  Assistant  Vice  President  -  Community  Office  Manager

MENDON  BANK  OFFICE
  Christopher  M.  Keys,  Assistant  Vice  President  - Community Office Manager
  Mary  Ellen  McMurry,  Banking  Officer

PERINTON  BANK  OFFICE
  Deborah  E.  Rought,  Community  Office  Manager

PITTSFORD  BANK  OFFICE
  Karen  C.  Serinis,  Assistant  Vice  President  -  Community  Office  Manager
  Commercial  Services
   Robert  L.  Lowenthal,  Vice  President
   Gary  L.  Babbitt,  Vice  President
  Trust  and  Investment  Services:
   Paul  R.  Callaway,  Vice  President  and  Trust  Officer
   Sharon  E.  Greisberger,  Assistant  Vice  President

VICTOR  BANK  OFFICE
  John  W.  Van  Vechten,  Vice  President  -  Community  Office  Manager
  Leslie  C.  O'Malley,  Banking  Officer

WEBSTER  BANK  OFFICE
  Kathleen  Vasile,  Assistant  Vice  President  -  Community  Office  Manager
  Gina  M.  Shevchuk,  Banking  Officer
  Commercial  Services
   Michael  J.  Drexler,  Vice  President
   Keith  J.  Goebel,  Assistant  Vice  President
34                                                          Page  68

<PAGE>
Arthur  S.  Hamlin
AWAERD  FOR  EXCELLENCE
1998  Recipient

(photograph  of  the  award)
(photograph  of  Beth  Uhlen)

"It  is a tremendous honor to be selected as this year's recipient of the Arthur
S.  Hamlin  Award.  Arthur  Hamlin  sets  the  standard  we should all strive to
attain.  His  leadership  and  guidance  to  the  Bank,  and involvement in both
Community  and  charitable  organizations  are  exemplary  and  serve  as  an
inspiration  to  us  all.

This  award  is  of  special  significance  to  me because I was nominated by my
co-workers.  It  is  the  people  that make an organization exceptional and I am
truly  grateful  for  the opportunity to work with all the remarkable people who
make  up  The  Canandaigua  National  Bank  and  Trust  Company."

Beth  Uhlen


      (photographs  of  all  the  1999  nominees)

1999  Nominees:
Sandy  D'Angelo
Susan  Davis
Alice  Hecker
Mary  Keenan
Denise  Kelly
Brian  Martin
Tamra  O'Donnell
Dawn  Phelps
Dee  Reynolds
Darlene  Rogers
Jan  Schrader
Kim  Senglaub
Brenda  Stoker
Barb  Thorpe

Past  Recipients

Linda  Keyes                     1989
Jerry  Drake                     1990
Michael  O'Donnell               1991
James  Roth                      1992
Kathleen  Corry                  1993
Susan  Foose                     1994
Amy  Eagley  and  Regina  Kesel  1995
Jeannie  Baldick                 1996
Kathy  Lafler                    1997
















35                                                          Page  69


<PAGE>
                                TOUCHING  MORE  NEIGHBORS

(photographs  of  bank  offices)
Chili  -  June  1999  (temporary  location)
Greece  -  June  1999
Honeoye  Falls  -  September  1999  (temporary  location)


Canandaigua  National  Bank  and  Trust opened three new Monroe County Community
Branch  offices  in  calendar  1999.  The  Chili  community  branch  office is a
temporary location, situated in the Chili Paul Plaza and will be moving into its
permanent  location,  a  free standing building at the front end of the plaza in
Mid  -  2000.  The  Greece  community office is located on West Ridge Road, just
North  of Greece-Ridge Mall.  The Honeoye Falls location, located on Main St. in
the  village, is also a temporary location and will be permanently situated at a
site  to be determined in the Honeoye Falls village.  All three Community Branch
Offices  model  the  design  of  our  Webster  branch  opened in 1998, featuring
sit-down  tellers  as  well  as  a customer service greeter station and the same
customer-friendly banking environment our customers have come to enjoy from this
region's  only  full-service,  locally-owned  community  bank.
















































36                                                          Page  70
<PAGE>