EXHIBIT  13  ANNUAL  REPORT TO SHAREHOLDERS FOR THE YEAR ENDED DECEMBER 31, 2000




























                                       Canandaigua
                                         National
                                        Corporation

                                    2000  Annual  Report
                                 and  Financial  Statements




























                                                            Page  36
<PAGE>

Board  of  Directors

Canandaigua  National  Bank  &  Trust  is  honored to have so many distinguished
community  leaders  on  our  board  of  directors.
     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      Consultant
     Richard  P.  Miller,  Jr.  Vice  Chancellor  and  Chief  Operating Officer,
                            State  University  of  New  York
     Robert  G.  Sheridan     Retail  Senior  Vice  President  and  Cashier,
                            The  Canandaigua  National  Bank  and  Trust Company
     Caroline C. Shipley    Educator, Past Director New York State School Boards
                            Association
     Sue  S.  Stewart         Partner,  Nixon  Peabody  LLP
     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






























                                                            Page  37
<PAGE>
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  14,  2001  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:  716-394-4001
Internet:  www.cnbank.com



































                                                            Page  38
<PAGE>


A  message  from  George  W.  Hamlin,  IV,  President

February  1,  2001

To  Our  Shareholders:

     What  a  year:  on  target  ahead  of  plan.

     In  1995  we  set  our  "Plan  for  the Year 2010." In these spaces we have
detailed that plan and reported on our progress. Its first outward manifestation
was  the  rapid  expansion  of our market area last year with the opening of six
offices within just 12 months. That process continued this year with the opening
of  our Financial Service Center in Bushnell's Basin and the opening of our East
Main  Street  office  overlooking the Lawyer's Co-op Park and the Genesee River,
just east of the Four Corners in the City of Rochester. This brings the count to
18  offices.  Our  plans  for the coming year include a facility in Brighton, to
which  we have committed, and the building of a permanent site in Honeoye Falls.
We  have  one  more  site  to identify to complete the initial design. Thus, the
growth  part  of  our  plan  is  "on  target."

     Not  as dramatic, but just as important, was the notion that this expansion
must  also produce an efficient organization after all is said and done. To that
end,  this  year  saw a six-month program utilizing among other things, the good
offices  of  our  professional  financial  consultants.  Every  corner  of  the
organization  was  scoured  and our business process mapped with a quest to find
efficiencies  and  adopt the best business practices. Inevitably, positions were
eliminated,  nearly  10%  overall.  Thankfully,  this  led  to  only  3%  forced
terminations.  The  other  reductions were achieved through normal attrition and
previously  scheduled  retirements.  Next, enhancements to revenue were examined
and implemented. The last phase of the program is the ongoing identification and
prioritization  of  over 100 projects and ideas by our project management office
headed  by  a  steering  committee  of  key  individuals, each of whom is highly
experienced in our processing needs as well as knowledgeable with respect to our
strategic  direction.  As  a result of these efforts, many of which have already
borne  fruit,  we  find ourselves at the conclusion of our year "ahead of plan,"
financially  speaking.

     A  subset  of  our  "Plan  for Value Year 2010" was a five-year schedule to
guide  the  growth  and  acquisition  of  a  larger market. Recall this involved
additional  expenses  and,  as  a  consequence, lower earnings for the first two
years  to  be  followed by noticeable improvement in the third, fourth and fifth
years with the result that, in the aggregate, the Company would be farther ahead
for  the  five-year  effort  than  what  might  have  otherwise  been  expected
undertaking  just  business  as  usual.  Simply,  during this time we planned to
embrace  a  market  of  nearly 1,000,000 people compared with the nearly 100,000
which  was  our scope before we started. Many have asked whether we have "moved"
or  not.  "Of  course  not,"  I  respond.  I liken it unto repotting our growing
"plant"  into  a  larger  "pot"  so  as to no longer be "root bound." We are not
moving, we just occupy a larger space, that's all. Indeed, there is no reason to
move  in  view  of  the economic health and growth prospects for the communities
which  we  have  served  for  over  100  years.

     Accordingly,  I  am pleased to report earnings of $21.86 per share compared
with $14.78 for last year. This is considerably better than the planned earnings
goal  of $15.36 per share. Like most performance, half is skillful execution and
the  other  half  is luck. Faster-than-expected loan growth resulted in a higher
net interest income, and strong trust and investment earnings driven by a strong
market  for  most  of  the  year  added  significantly  to  our  earnings.
Higher-than-expected  earnings  from  our  investment  in  CEPHAS,  and
less-than-expected  reorganization  expenses account for most of the rest of the
performance  above plan. Even if a slowing economy brings the usual pressures to
bear  upon  the banking industry in terms of challenge and expense, what we have
put  in  place this year in terms of a leaner structure and working smarter will
continue  to  pay  benefits  in  the  years  to  come.

     Perhaps,  the  most dramatic long-term impact of the year's work, but which
may  be  the  least  heralded, is the consolidation and reorganization which has
occurred  as  a  direct  result  of  our process improvement program. Accounting
Operations  is  folded into our Finance Division. Our mortgage functions are now
consolidated  with the merger of our mortgage subsidiary, HomeTown Funding, with
the  Mortgage  Department.  The  CNB  Mortgage  brand  has been strengthened and
infinitely broadened so that we have a mortgage product for virtually anyone who
applies  regardless of the degree of challenge their credit report may show. The
newly  formed  Asset/Liability  Management Committee, separate and distinct from
the  management  functions  of the Company, brings new emphasis and resources to
the  management  of  the  net interest margin. The highly technical interplay of
rates paid and charged on deposits and loans, respectively, is heightened as the
world  gets  smaller  and the competition for financial products and services of
every stripe increases. Our Trust and Investment Divisions have been amalgamated
and  consolidated  into  a  single  division,  thereby  enhancing our ability to
execute  upon  our  expansion plans and bringing a highly adaptive team approach
for  each customer account combining investments, administration and operations.
With  these  changes,  the  Management  Group  is  free  to continue the general
management  of  the administration and operations of the Company, but with a new
emphasis  on  sales  management.  The  key  to providing comprehensive financial
services  for individuals is the transitioning of traditional bank organizations
characterized  by  vertical  silos  of products and activity accompanied by some
cross-selling  to  an  organization  which  adopts  the  customer's  view  and
perspective  and  is  driven  and organized from that perspective. Thus, we have
created  a  Senior  Management  position  with  the  sole responsibility for the
development  and  coordination  of  comprehensive  marketing and delivery of our
products  and  services company-wide. For community banking, these are uncharted
waters.









                                                            Page  39
<PAGE>

     The  government  plays  a prominent role in all that we do and can do. This
year  was no different with a Presidential election of historic importance. Many
have commented that the Country is divided down the middle with the popular vote
going to the loser and the Houses of Congress, split virtually 50-50. Experience
shows, however, that those who govern effectively legislate to the "party of the
middle"  rather  than  any of the recognized party labels, so the cooperation in
legislative  matters  required  before  is going to be the rule going forward as
usual.  Indeed, Gramm-Leach-Bliley, that is the Financial Services Modernization
Act  of  1999,  which  purports  to  be  the  first reformation of the financial
services industry since 1933, delivered no products and services that are new to
us  which  we  are not already offering, but does deliver more regulatory burden
with  respect  to  issues  of privacy of customers' records and affairs. We have
been observing these principles as a matter of good business since the beginning
of the last century. Now we have to undergo the expense of reporting the obvious
which  adds  very  little  benefit  compared  with  the  cost.

     In the fourth quarter of 2000 the decade-long economic expansion started to
slow as the hot air disappeared from the ".com" companies who had no earnings or
capital  to  support  even  their  payrolls.  Stock  portfolios  not  properly
diversified  have  suffered  terribly,  shaking  the  public's  confidence.
Nonetheless, the fundamentals of the economy remain strong with low unemployment
and  inflation  well behaved. Reductions of GDP from 4%+ to 2% is, frankly, more
in  keeping  with  sustainable economic growth, notwithstanding its reduction in
economic  activity.  The  Federal  Reserve, somewhat dramatically, has responded
with  alacrity  and  a willingness to address developing changes in the economy,
specifically  the  negative psychology. Unfortunately, psychology has as much to
do  with  human  motivation  as  actual  performance, so experience and prudence
dictates  more conservative growth rates for the near term. Our prospects remain
fundamentally  good  in  view  of  our  expanding  franchise,  which  brings the
opportunity  to do business with quality credits. We have no need, after all, to
grow  quickly to meet our strategic goals. Rather, deliberate and planned growth
is  the  better  discipline  in  any event. There is a certain d j  vu to all of
this:

     "It is not at all surprising that the stock market has declined severely. A
large  part  of the public has been speculating in the stock market expecting it
to make a lot of money without working for it. They were buying stocks at prices
that  were  entirely  unjustified  by any earnings or prospects of the companies
whose  stock  they bought. In many cases there were no dividends paid at all, or
if there were any dividends, the return was anywhere from two to one-half of one
percent.  Considering  the risks one takes in owning common stocks at all, it is
clear  that  if the process of buying such stocks is purely speculative, it is a
gamble  and  there  is  no  scientific  principle  back  of  the  operation."

"When  the  market reaches such heights, it is almost inevitable that there will
be  a drop, but there is no way of telling in advance what will bring it about."

" It has shaken the confidence of businessmen and it causes them to be reluctant
to  spend  more  money  on  expansion   this sort of thing destroys confidence."

                          Arthur  S.  Hamlin  to  the  Wood  Library Association
                          June  8,  1962

     Despite  the popular perception that change is all around us, it is equally
true  that the fundamentals remain pretty much the same. With these words we are
reminded  of our responsibility to act adaptively, but always sensibly, grounded
in  the  fundamentals  rather  than  that  which  is  just  popular.  It is this
philosophy which is the root of our Strategic Plan to provide financial services
for  individuals, but in so doing maintain our viability so that we may continue
to  provide  the  vital  function  as  the  community's  financial  intermediary
dedicated  to  managing  the  community's financial resources in accord with the
community's  priorities.  That  has been an important and profitable business to
pursue  in  the  past, so we expect it to be equally important and profitable in
the  future.

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



















                                                            Page  40
<PAGE>


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  HomeTown 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,  2000  and  1999
(dollars  in  thousands,  except  per  share  data)

                                                             2000       1999
                                                            -------    -------
<S>                                                        <C>        <C>
Net Income                                                 $  3,487   $  2,357
Cash Dividends                                             $  1,887   $  1,833
Diluted Earnings Per Share                                 $  21.86   $  14.78
Dividends Per Share                                        $  11.90   $  11.50
Book Value Per Share                                       $ 278.89   $ 268.02
Total Assets                                               $594,693   $522,135
Investment Securities                                      $ 81,713   $ 75,864
Loans - Net                                                $455,259   $394,227
Deposits                                                   $533,809   $454,290
Stockholders' Equity                                       $ 44,269   $ 42,477
Weighted Average Shares Outstanding - diluted               159,488    159,521
Return on Average Assets                                        .61%       .50%
Return on Beginning Equity                                     8.21%      5.50%
</TABLE>


<TABLE>
<CAPTION>
Trust  Department

Years  ended  December  31,  2000  and  1999
(at  cost,  in  thousands  of  dollars)

                                                             2000         1999
                                                            -------      -------
<S>                                                        <C>          <C>
Estate, Trust and Guardianship Assets                      $231,009     $215,022
Custodian Account Assets                                    379,389      342,098
The Canandaigua Funds' Assets                                34,675       29,695
                                                            -------      -------
Total Assets Under Administration                          $645,073     $586,815
                                                            -------      -------
                                                            -------      -------
</TABLE>






Graph  1  (depicting  Assets,  Deposits  and  Loans  for the years 1996 to 2000)




Graph  2  (depicting  Trust  Assets  Market  and  Book  Value  for  the
          years  1996  to  2000)















                                                            Page  41
<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, 2000 and 1999, 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, 2000. 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 auditing standards generally accepted
in  the  United  States  of  America.  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, 2000 and 1999, and the results of
their  operations  and  their cash flows for each of the years in the three-year
period  ended  December  31,  2000,  in  conformity  with  accounting principles
generally  accepted  in  the  United  States  of  America.

/s/  KPMG  LLP

February  2,  2001
Rochester,  New  York
































                                                            Page  42
<PAGE>
<TABLE>
<CAPTION>


Consolidated  Balance  Sheets
December  31,  2000  and  1999  (dollars  in  thousands,  except  share  data)

Assets                                                               2000       1999
------                                                             ------     ------
<S>                                                             <C>          <C>
Cash and due from banks                                         $  28,157     26,801
Interest bearing deposits with other financial institutions            97         33
Securities:
     - Available for sale, at fair value                            1,221        528
       Held to maturity (fair value of
         $80,881 in 2000 and $74,805 in 1999)                      80,492     75,336
Loans -  net of allowance of $4,712 in 2000 and $4,136 in 1999    455,259    394,227
Premises and equipment - net                                       15,949     13,438
Accrued interest receivable                                         3,371      2,682
Federal Home Loan Bank stock and Federal Reserve Bank stock         3,032      3,548
Other assets                                                        7,115      5,542
                                                                  -------    -------
Total Assets                                                    $ 594,693    522,135
                                                                  -------    -------
                                                                  -------    -------

Liabilities and Stockholders' Equity
------------------------------------
Deposits:
     Demand
          Non-interest bearing                                  $  87,497     74,630
          Interest bearing                                         53,665     46,490
     Savings and money market                                     162,975    156,108
     Certificates of deposit                                      229,672    177,062
                                                                  -------    -------
          Total deposits                                          533,809    454,290
Borrowings                                                         12,644     22,218
Accrued interest payable and other liabilities                      3,971      3,150
                                                                  -------    -------

          Total Liabilities                                     $ 550,424    479,658
                                                                  -------    -------

Commitments and contingencies (Notes 14 and 15)

Stockholders' Equity:
     Common stock, $50 par value; 240,000 shares authorized,
          162,208 shares issued in 2000 and 1999                $   8,110      8,110
     Additional paid-in capital                                     8,532      8,506
     Retained earnings                                             28,687     27,087
     Treasury stock, at cost (3,476 shares in 2000
          and 3,725 shares in 1999)                                (1,268)    (1,348)
     Accumulated other comprehensive income                           208        122
                                                                  -------    -------
     Total Stockholders' Equity                                    44,269     42,477
                                                                  -------    -------

Total Liabilities and Stockholders' Equity                      $ 594,693    522,135
                                                                  -------    -------
                                                                  -------    -------
<FN>

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










                                                            Page  43
<PAGE>
<TABLE>
<CAPTION>

Consolidated  Statements  of  Income
Years  ended  December  31,  2000,  1999,  and  1998
(dollars  in  thousands,  except  per  share  data)




                                                            2000    1999    1998
                                                           ------  ------  ------
Interest income:
<S>                                                      <C>       <C>     <C>
     Loans, including fees                               $ 37,647  28,865  26,834
     Securities                                             4,353   3,756   3,967
     Other                                                     76     232      52
                                                           ------  ------  ------
     Total interest income                                 42,076  32,853  30,853
                                                           ------  ------  ------

Interest expense:
     Deposits                                              17,434  12,725  10,746
     Borrowings                                             1,367     527   1,687
                                                           ------  ------   -----
      Total interest expense                               18,801  13,252  12,433
                                                           ------  ------  ------
      Net interest income                                  23,275  19,601  18,420
Provision for loan losses                                   1,028   1,239     641
                                                           ------  ------  ------
      Net interest income after provision for loan losses  22,247  18,362  17,779
                                                           ------  ------  ------
Other income:
     Service charges on deposit accounts                    3,402   2,548   1,810
     Trust income                                           3,314   2,782   2,249
     Net gain on sale of mortgage loans                         8      88     125
     Other operating income                                 2,218   1,856   1,740
                                                           ------  ------  ------
      Total other income                                    8,942   7,274   5,924
                                                           ------  ------  ------
Operating expenses:
     Salaries and employee benefits                        14,432  13,055  10,557
     Occupancy                                              4,812   3,763   3,007
     Marketing and public relations                         1,062   1,162     515
     Office supplies, printing and postage                    927     966     807
     FDIC insurance                                            94      43      39
     Other operating expenses                               5,160   3,394   3,505
                                                           ------  ------  ------
     Total operating expenses                              26,487  22,383  18,430
                                                           ------  ------  ------

     Income before income taxes                             4,702   3,253   5,273
Income taxes                                                1,215     896   1,686
                                                           ------  ------  ------
     Net income                                           $ 3,487   2,357   3,587
                                                           ------  ------  ------
                                                           ------  ------  ------
Basic earnings per share                                  $ 22.00   14.82   22.38
                                                            -----   -----   -----
                                                            -----   -----   -----

Diluted earnings per share                                $ 21.86   14.78   22.38
                                                            -----   -----   -----
                                                            -----   -----   -----

<FN>

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







                                                            Page  44
<PAGE>
<TABLE>
<CAPTION>
Consolidated  Statements  of  Stockholders'  Equity
Years  ended  December  31,  2000,  1999,  and  1998
(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, 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
                              ------     ------     ------     ------         ------     ------

 Comprehensive income:
  Change in unrealized
   gain on securities
   available for sale,
   net of taxes of $56             -          -          -          -             86        86
  Net income                       -          -      3,487          -              -     3,487
                                                                                        ------
 Total comprehensive income                                                              3,573
                                                                                        ------
 Cash dividend - $11.90
 per share                         -          -     (1,887)         -              -    (1,887)
 Sale of 249 shares
 of treasury stock                 -         26          -         80              -       106
                              ------     ------     ------     ------         ------     ------
Balance at
December 31, 2000          $   8,110      8,532     28,687     (1,268)           208     44,269
                              ------     ------     ------     ------         ------     ------
                              ------     ------     ------     ------         ------     ------

<FN>

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




                                                            Page  45
<PAGE>
<TABLE>
<CAPTION>
Consolidated  Statements  of  Cash  Flows
Years  ended  December  31,  2000,  1999  and  1998  (dollars  in  thousands)



                                                                   2000       1999       1998
                                                                 ------     ------     ------
<S>                                                            <C>        <C>        <C>
Cash flows from operating activities:
 Net income                                                    $  3,487      2,357      3,587
 Adjustments to reconcile net income to net cash
    provided by operating activities:
  Depreciation, amortization and accretion                        2,119      2,084      1,793
  Provision for loan losses                                       1,028      1,239        641
  Write down of other real estate                                   100          -         50
  Deferred income taxes                                            (334)      (482)      (256)
  Income from minority owned entities                              (173)      (144)         -
  Originations of loans held for sale                           (70,459)  (106,988)  (116,551)
  Proceeds from sales of loans held for sale                     68,725    109,464    115,702
  (Increase) decrease in accrued interest receivable
     and other assets                                            (2,201)      (175)       149
  Increase (decrease) in accrued interest payable
    and other liabilities                                           821      1,230       (662)
  Writedown of security                                             105          -          -
                                                                 ------     ------     ------
    Net cash provided by operating activities                     3,218      8,585      4,453
                                                                 ------     ------     ------
Cash flows from investing activities:
 Purchase of FHLB and FRB stock                                     (42)         -       (430)
 Sale of FHLB stock                                                 558          -          -
 Securities held to maturity:
  Proceeds from maturities and calls of securities               78,270     38,303     32,740
  Purchase of securities                                        (83,567)   (41,180)   (34,025)
 Loans originated - net                                         (60,326)   (89,985)    (2,663)
 Fixed asset purchases - net                                     (4,940)    (3,990)    (2,104)
 Investment in minority owned entities                                -       (158)      (762)
 Proceeds from sale of other real estate                             85        529      1,196
                                                                 ------     ------     ------
   Net cash used by investing activities                        (69,962)   (96,481)    (6,048)
                                                                 ------     ------     ------
Cash flows from financing activities:
 Net increase in demand, savings and money market deposits       26,909     46,667     19,388
 Net increase in time deposits                                   52,610     31,116     32,358
 Proceeds from borrowings                                         6,770     16,600          -
 Principal repayments on borrowings                             (16,344)    (1,524)   (43,525)
 Proceeds from sale of treasury stock                               106         67         47
 Purchase of treasury stock                                           -       (569)      (348)
 Dividends paid                                                  (1,887)    (1,833)    (1,766)
                                                                 ------     ------     ------
   Net cash provided by financing activities                     68,164     90,524      6,154
                                                                 ------     ------     ------
 Net increase in cash and cash equivalents                        1,420      2,628      4,559
Cash and cash equivalents - beginning of year                    26,834     24,206     19,647
                                                                 ------     ------     ------
Cash and cash equivalents - end of year                       $  28,254     26,834     24,206
                                                                 ------     ------     ------
                                                                 ------     ------     ------
Supplemental disclosures of cash flow information:
 Cash paid during the year for:
  Interest                                                    $  18,399     13,074     12,312
                                                                 ------     ------     ------
                                                                 ------     ------     ------
  Income taxes                                               $    1,459      1,020      2,142
                                                                 ------     ------     ------
                                                                 ------     ------     ------
Supplemental disclosure of non-cash investing activities:
 Additions to other real estate acquired
  through foreclosure, net of loans to facilitate sales       $       -        536        376
                                                                 ------     ------     ------
                                                                 ------     ------     ------

<FN>

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



                                                            Page  46
<PAGE>
 (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 for 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. Loans are returned to accrual status when doubt no longer
exists about the loan's collectibility. Consumer loans are generally charged off
upon  becoming  120  days  past  due.

  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.






                                                            Page  47
<PAGE>


(1)  Summary  of  Significant  Accounting  Policies  (continued)

  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.

  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
for  impairment.  At  December  31,  2000  and  1999  the unamortized balance of
goodwill  amounted  to $76,000 and $208,000, 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,  2000 and 1999 was $27,000 and $
95,000,  respectively.

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.






                                                            Page  48
<PAGE>

(1)  Summary  of  Significant  Accounting  Policies  (continued)

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  $645,000,000  and  $587,000,000 at December 31, 2000 and 1999, 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.

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.














                                                            Page  49
<PAGE>
 (1)  Summary  of  Significant  Accounting  Policies  (continued)

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  September 2000 the Financial Accounting Standards Board issued Statement No.
140  "Accounting  for  Transfers  and  Servicing  of  Financial  Assets  and
Extinguishments  of  Liabilities." This statement replaces Statement No. 125 and
revises  the standards for accounting for securitizations and other transfers of
financial  assets  and collateral and requires certain disclosures. The adoption
of  the  standard  had  no  impact  on  its  financial  condition  or results of
operations.

The  Company  also  implemented  the  provisions  of  FASB  Statement  No.  133
"Accounting  for  Derivative Instruments and Hedging Activities", as amended, on
January  1,  2001.  This  Statement  establishes  comprehensive  accounting  and
reporting  requirements  for  derivative instruments and hedging activities. The
Company  held  no freestanding derivative instruments at year-end; therefore the
adoption  of  the  new  standard did not have a material effect on the Company's
financial  condition  or  results  of  operations.

(2)  Contract  Termination  Costs

During  the  fourth  quarter  of  2000,  contract  termination costs of $433,000
pre-tax  ($264,000  or  $1.65  per  diluted  share  after  tax)  was recorded in
conjunction  with  the  realignment  of  the  Company's  credit card activities.
Substantially  all  the  cost  of  the  realignment  is  associated  with  early
termination  penalties from processing contracts with credit card vendors. Minor
amounts  are  associated with employee severance. The realignment is expected to
be  completed  in  2001.  These  costs  are expected to be funded through normal
operations  and  fully paid in 2001. These costs are included in Other Operating
Expenses  on  the  Consolidated Statements of Income. The table below displays a
summary  of  the  charge:

Type  of  Cost
  ------------
  Contract  termination  and  other      $   385,000
  Severance  and  benefits                    48,000
                                             -------
                                         $   433,000
                                             -------
                                             -------

(3)  Federal  Funds  Sold

Income  from Federal funds sold for the years ended December 31, 2000, 1999, and
1998  was  $71,000,  $225,000,  and  $33,000,  respectively.












                                                            Page  50
<PAGE>

(4)  Securities

<TABLE>

<CAPTION>

The  aggregate  amortized  cost  and  fair  value  of  Securities  Available  for Sale and
Securities  Held  to  Maturity  at  December  31,  2000  and  1999  follow (in thousands):

                                                  2000                      1999
                                          ----------------------    ----------------------
                                        Amortized         Fair    Amortized         Fair
                                             Cost        Value         Cost        Value
                                          ---------    ---------    ---------    ---------
Securities Available for Sale:
<S>                                     <C>            <C>          <C>          <C>
    Common stock                        $       876        1,221          325          528
                                          ---------    ---------    ---------    ---------
                                          ---------    ---------    ---------    ---------
  Securities Held to Maturity:
    U.S. Treasury obligations
      and agencies                      $    36,949       37,065       26,865       26,715
    Mortgage-backed securities                  493          495          430          436
    Obligations of state and
      municipal subdivisions                 42,062       42,334       46,061       45,674
    Other securities                            988          987        1,980        1,980
                                          ---------    ---------    ---------    ---------
      Total                             $    80,492       80,881       75,336       74,805
                                          ---------    ---------    ---------    ---------
                                          ---------    ---------    ---------    ---------
</TABLE>




<TABLE>
<CAPTION>
Gross  unrealized  gains  and  gross unrealized losses on Securities Available for Sale and
Securities  Held  to  Maturity  at  December  31,  2000  and  1999  follow  (in thousands):

                                                   2000                      1999
                                          ----------------------    ----------------------
                                                Unrealized                Unrealized
                                             Gains       Losses        Gains       Losses
                                          ---------    ---------    ---------    ---------
Securities Available for Sale:
<S>                                     <C>            <C>          <C>          <C>

    Common stock                        $       345            -          212           (9)
                                          ---------    ---------    ---------    ---------
                                          ---------    ---------    ---------    ---------
  Securities Held to Maturity:
    U.S. Treasury obligations
      and agencies                      $       135          (19)           3         (153)
    Mortgage-backed securities                    2            -            9           (3)
    Obligations of state and
      municipal subdivisions                    428         (156)         162         (549)
    Other securities                              1           (2)           3           (3)
                                          ---------    ---------    ---------    ---------
      Total                             $       566         (177)         177         (708)
                                          ---------    ---------    ---------    ---------
                                          ---------    ---------    ---------    ---------
</TABLE>





















                                                            Page  51
<PAGE>
 (4)  Securities  (continued)

<TABLE>

<CAPTION>


     The amortized cost and fair value of securities Held to Maturity by years to
maturity  as  of  December  31,  2000  follow  (in  thousands):



  Years                                           Amortized Cost       Fair Value
  -----                                           --------------   --------------
<S>                                             <C>                <C>
  Under 1                                       $         34,811           34,710
  1 to 5                                                  37,941           38,161
  5 to 10                                                  7,364            7,636
  10 and over                                                376              374
                                                  --------------   --------------
  Total                                         $         80,492           80,881
                                                  --------------   --------------
                                                  --------------   --------------
</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 $64,524,000 were pledged as
collateral  against  municipal  deposits  at  December  31,  2000.

The  Bank  had  no  sales  of  securities  in  2000,  1999,  or  1998.

<TABLE>
<CAPTION>
Interest  on  securities  segregated  between  taxable  interest  and tax-exempt
interest  for  the  years  ended  December  31, 2000, 1999, and 1998 follows (in
thousands):


                                                    2000       1999       1998
                                                   ------     ------     ------
<S>                                             <C>           <C>        <C>
  Taxable                                       $   2,355      2,015      2,400
  Tax-exempt                                        1,998      1,741      1,567
                                                   ------     ------     ------
    Total                                       $   4,353      3,756      3,967
                                                   ------     ------     ------
                                                   ------     ------     ------
</TABLE>
































                                                            Page  52
<PAGE>
 (5)  Loans

<TABLE>
<CAPTION>
The  major  classifications  of  loans  at December 31, 2000 and 1999 follow (in
thousands):

                                                       2000       1999
                                                     --------   --------
<S>                                             <C>             <C>
  Commercial, financial, and agricultural       $      65,324     62,491
  Mortgages:
    Residential                                        81,475     69,862
    Commercial                                        195,153    141,255
  Consumer:
    Auto - indirect                                   104,559    103,605
    Other                                               9,401     18,561
  Other                                                 1,833      2,097
  Loans held for sale                                   2,226        492
                                                     --------   --------
    Total                                             459,971    398,363
  Less - allowance for loan losses                      4,712      4,136
                                                     --------   --------
    Loans - net                                 $     455,259    394,227
                                                     --------   --------
                                                     --------   --------
</TABLE>

<TABLE>
<CAPTION>
Interest  and  fees  on  loans  follow  (in  thousands):

                                                   Years Ended December 31,
                                                ------------------------------
                                                 2000        1999        1998
                                                ------      ------      ------
<S>                                          <C>           <C>         <C>
  Commercial                                 $   5,700       4,416       3,319
  Mortgage                                      21,919      14,852      15,270
  Consumer and other                            10,028       9,597       8,245
                                                ------      ------      ------
    Total                                    $  37,647      28,865      26,834
                                                ------      ------      ------
                                                ------      ------      ------
</TABLE>


<TABLE>
<CAPTION>
A  summary  of  the  changes  in  the  allowance  for  loan  losses  follows (in
thousands):

                                                   Years Ended December 31,
                                                ------------------------------
                                                 2000        1999        1998
                                                ------      ------      ------
<S>                                          <C>            <C>         <C>
Balance at beginning of year                 $   4,136       3,283       3,153
  Provision charged to operations                1,028       1,239         641
  Loans charged off                               (957)       (875)     (1,053)
  Recoveries of loans charged off                  505         489         542
                                                ------      ------      ------
  Balance at end of year                     $   4,712       4,136       3,283
                                                ------      ------      ------
                                                ------      ------      ------
</TABLE>


The  principal  balance  of  loans  not accruing interest totaled $3,169,000 and
$1,640,000 at December 31, 2000 and 1999, respectively. The effect of nonaccrual
loans  on  interest income for the years ended December 31, 2000, 1999, and 1998
was  approximately  $245,000,  $138,000,  and $239,000, respectively. Other real
estate  amounted  to  $1,466,000, and $1,651,000  at December 31, 2000 and 1999,
respectively,  and  is  included  in  other  assets  in the consolidated balance
sheets.  At  December  31,  2000 the Company had no commitments to lend funds to
borrowers  with  loans  in  non-accrual  status.

The  recorded  investments  in  loans that are considered to be impaired totaled
$3,169,000, and $1,640,000 at December 31, 2000 and 1999, respectively. Included
in  2000's amount was $105,000 of impaired loans for which the related allowance
for  loan losses was $105,000. The average recorded investment in impaired loans
during  2000,  1999,  and  1998, was $2,778,000, $1,583,000, and $2,728,000, and
respectively.  The  effect of not accruing interest income on impaired loans was
approximately  $245,000  in  2000,  $138,000  in  1999,  and  $239,000  in 1998.





                                                            Page  53
<PAGE>
 (5)  Loans  (continued)

At  December  31,  2000  residential  mortgage  loans  with  a carrying value of
approximately  $18,123,000  were  pledged  as collateral for the Bank's advances
from the Federal Home Loan Bank, and an additional $33,511,000 was available for
pledging.  Indirect  automobile  loans  with  a  carrying value of approximately
$90,441,000 were pledged as collateral for a $72,353,000 line of credit from the
Federal  Reserve  Bank  of  New  York  at  December  31,  2000.

Loans  serviced for others, amounting to $77,477,000 and $80,364,000 at December
31,  2000  and  1999,  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 economic 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.

(6)  Premises  and  Equipment

<TABLE>
<CAPTION>
A  summary  of  premises and equipment at December 31, 2000 and 1999 follows (in
thousands):

                                                       2000       1999
                                                     --------   --------
<S>                                                 <C>         <C>
  Land and land improvements                        $   1,055        979
  Buildings and leasehold improvements                 17,527     15,192
  Furniture, fixtures, equipment, and vehicles         13,539     11,131
                                                     --------   --------
                                                       32,121     27,302
  Less accumulated depreciation and amortization       16,172     13,864
                                                     --------   --------
  Premises and equipment - net                      $  15,949     13,438
                                                     --------   --------
                                                     --------   --------
</TABLE>



Depreciation  and  amortization expense amounted to $2,429,000 , $2,020,000, and
$1,820,000  for the years ended December 31, 2000, 1999, and 1998, respectively.

(7)  Certificates  of  Deposit

Certificates of deposit of $100,000 or more amounted to $131,387,000 at December
31,  2000  and  $81,656,000  at  December  31,  1999.  Interest expense on these
certificates  of deposit was as follows: $7,263,000 in 2000, $3,032,000 in 1999,
and  $2,211,000  in  1998.

<TABLE>
<CAPTION>
At  December  31, 2000, the scheduled maturity of certificates of deposit was as
follows  (in  thousands):

<S>        <C>
2001       $  193,371
2002           21,696
2003           14,605
             --------
           $  229,672
             --------
             --------
</TABLE>













                                                            Page  54
<PAGE>
 (8)  Borrowings

<TABLE>
<CAPTION>
  Borrowings  consisted  of  the  following  at  December  31, 2000 and 1999 (in
thousands):

                                                           2000       1999
                                                         --------   --------
<S>                                                   <C>          <C>
  FHLB Line of Credit                                 $    10,400      3,900
  FHLB Term Advances                                        1,992     18,318
  Other                                                       252          -
                                                         --------   --------
                                                      $    12,644     22,218
                                                         --------   --------
                                                         --------   --------
</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  at  December  31,  2000  follows  (in  thousands):

                                                              Weighted Average
                                                          Amount         Interest Rate
                                                        ---------      ----------------
<S>                                                   <C>                   <C>
  2001 overnight line of credit                       $    10,400                5.85 %
  2001 other                                                1,136                6.88 %
  2002                                                         36                3.83 %
  2003                                                         36                3.83 %
  2004                                                         36                3.83 %
  2005                                                         36                3.83 %
  after 2005                                                  964                3.30 %
                                                        ---------
      Total                                           $    12,644                5.72 %
                                                        ---------
                                                        ---------
</TABLE>


The  Company  maintains  a $24,241,000 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 $24,241,000 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).



























                                                            Page  55
<PAGE>

(9)  Income  Taxes

<TABLE>
<CAPTION>

Total  income  taxes  for  the  years  ended  December  31,  2000, 1999, and 1998 were
allocated  as  follows  (in  thousands):

                                                         2000        1999        1998
                                                        ------      ------      ------
<S>                                                 <C>             <C>         <C>
  Income from operations                            $    1,215         896       1,686
  Change in stockholders' equity for unrealized
    gain on securities available for sale                   56         (16)         17
                                                        ------      ------      ------
                                                    $    1,271         880       1,703
                                                        ------      ------      ------
                                                        ------      ------      ------
</TABLE>


<TABLE>
<CAPTION>

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

                                                           Years ended December 31,
                                                        ------------------------------

  Current                                                 2000        1999        1998
                                                        ------      ------      ------
<S>                                                 <C>             <C>         <C>
    Federal                                         $    1,353       1,033       1,465
    State                                                  196         345         477
                                                        ------      ------      ------
                                                         1,549       1,378       1,942
                                                        ------      ------      ------
  Deferred:

    Federal                                               (304)       (478)       (221)
    State                                                  (30)         (4)        (35)
                                                        ------      ------      ------
                                                          (334)       (482)       (256)
                                                        ------      ------      ------
                                                    $    1,215         896       1,686
                                                        ------      ------      ------
                                                        ------      ------      ------
</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,
                                                        ------------------------------
                                                         2000        1999        1998
                                                        ------      ------      ------
<S>                                                 <C>             <C>         <C>
  Tax expense at statutory rate of 34%              $    1,599       1,106       1,790
  Tax-exempt interest                                     (683)       (591)       (551)
  Nondeductible interest expense                            97          76          61
  State taxes, net of Federal benefit                      110         228         292
  Change in valuation allowance for
    deferred tax assets                                     10         (22)         45
  Other                                                     82          99          49
                                                        ------      ------      ------
    Total                                           $    1,215         896       1,686
                                                        ------      ------      ------
                                                        ------      ------      ------

  Effective tax rate                                    25.8 %      27.5 %      32.0 %
                                                        ------      ------      ------
                                                        ------      ------      ------
</TABLE>











                                                            Page  56
<PAGE>

 (9)  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, 2000 and
1999  are  presented  below:

Deferred tax assets:                                       2000        1999
                                                          ------      ------
<S>                                                   <C>             <C>
    Allowance for loan losses - books                 $    1,839       1,619
    Incentive stock plan and retirement                      441         525
    Excess servicing                                          34          45
    NOL credits from subsidiaries                            160         168
    State NOL arising from nonconsolidation for
      state tax purpose only                                  79          80
    Interest on non-accrual loans                            186         101
    Other                                                    123          59
                                                          ------      ------
      Deferred tax assets before allowance                 2,862       2,597
    Valuation allowance                                      (75)        (65)
                                                          ------      ------
      Deferred tax assets                                  2,787       2,532
                                                          ------      ------
  Deferred tax liabilities:
    Allowance for loan losses - tax                          292         322
    Depreciation                                             277         293
    Net unrealized gains on available
      for sale securities                                    139          83
    Accretion on bonds                                        18          51
                                                          ------      ------
      Deferred tax liabilities                               726         749
                                                          ------      ------
      Net deferred tax asset                          $    2,061       1,783
                                                          ------      ------
                                                          ------      ------
</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  against  its
non-bank  subsidiaries'  Net  Operating Loss (NOL) was necessary. As of December
31,  2000 there were approximately $103,000 of mortgage tax credits available to
offset  future  state  tax  liabilities  of  GFNYI.

(10)  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,
2000, $1,395,000 was available for dividends to the Company without the approval
of  the  OCC.
















                                                            Page  57
<PAGE>

 (11)  Earnings  Per  Share

<TABLE>
<CAPTION>

Basic  and diluted earnings per share for the years ended December 31, 2000, 1999, and
1998  were  computed  as  follows  (dollars  in  thousands,  except  share  data)

                                                         2000        1999        1998
                                                        ------      ------      ------
Basic Earnings Per Share
<S>                                                  <C>           <C>         <C>
    Net income applicable to common shareholders     $   3,487       2,357       3,587
    Weighted average common shares outstanding         158,503     159,029     160,254
                                                        ------      ------      ------
    Basic earnings per share                         $   22.00       14.82       22.38
                                                        ------      ------      ------
                                                        ------      ------      ------

Diluted Earnings Per Share

    Net income applicable to common shareholders     $   3,487       2,357       3,587
                                                        ------      ------      ------
    Weighted average common shares outstanding         158,503     159,029     160,254
    Effect of dilutive securities:
      Stock options                                        985         492           -
                                                        ------      ------      ------
      Total                                            159,488     159,521     160,254
                                                        ------      ------      ------
    Diluted earnings per share                       $   21.86       14.78       22.38
                                                        ------      ------      ------
                                                        ------      ------      ------
</TABLE>


(12)  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 $832,000, $974,000, and $835,000
for  the  years  ended  December  31,  2000,  1999,  and  1998,  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  $97,000,  $76,000,  and $63,000 for the years ended
December  31,  2000,  1999,  and  1998,  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,  2000  and  1999  the plan held 2,102 and 1,802 shares with a fair
value,  at  the  respective  dates,  of  $841,000  and  $697,000.















                                                            Page  58
<PAGE>



(13)  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. The options are 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  from  the grant date. The options are fully vested and have no
set  expiration  date.



<TABLE>
<CAPTION>
The  following  summarizes  outstanding  and  exercisable options at December 31, 2000 and
1999:

                                                     2000                    1999
                                            ---------------------    ---------------------
                                                #      Weighted          #      Weighted
                                                        Average                  Average
                                                         Price                    Price
                                            -------   -----------    -------   -----------
<S>                                          <C>      <C>             <C>      <C>
  Options outstanding, January 1              4,571   $    360.52          -             -
  Granted                                     1,486   $    437.18      4,571   $    360.52
  Exercised                                       -             -          -             -
  Expired                                         -             -          -             -
                                            -------   -----------    -------   -----------
  Options outstanding, December 31            6,057   $    379.33      4,571   $    360.52
                                            -------   -----------    -------   -----------
                                            -------   -----------    -------   -----------
  Options exercisable, December 31            2,615   $    370.97      1,853   $    360.52
                                            -------   -----------    -------   -----------
                                            -------   -----------    -------   -----------
  Options available for future grants         9,943                   11,429
                                            -------   -----------    -------   -----------
                                            -------   -----------    -------   -----------
</TABLE>



Options  outstanding  (both  exercisable and unexercisable) at December 31, 2000
have  exercise  prices  ranging  from  $360.52  to $437.18. The weighted average
expected  life  of  the  options is 11.4 years. Since the options have no stated
expiration  date,  the  expected  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 years ended
December  31,  2000  and  1999  would have been reduced to the pro forma amounts
indicated  below  (net  income  in  thousands):
                                      2000                     1999
                              ---------------------    ---------------------
  Net  income
    As  reported                    $   3,487                $   2,357
    Pro  forma                      $   3,355                $   2,118

  Earnings  per  share            Basic      Diluted       Basic      Diluted
                               --------     --------    --------     --------
    As  reported               $  22.00     $  21.86    $  14.82     $  14.78
    Pro  forma                 $  21.17     $  21.04    $  13.32     $  13.28

<TABLE>
<CAPTION>

The  per  share  fair  value  of  stock options granted during 2000 and 1999 was
$122.56  and  $73.57,  respectively,  and was determined using the Black-Scholes
option-pricing  model  with  the following weighted average assumptions for each
year:

                                            2000           1999
                                           ------         ------
<S>                                    <C>            <C>
  Expected dividend yield                  2.72 %         3.09 %
  Risk free interest rate                  6.45 %         4.92 %
  Expected life                        11.4 years     12.3 years
  Volatility                              14.39 %        14.73 %
</TABLE>






                                                            Page  59
<PAGE>

 (13)  Incentive  Stock  Plans  (continued)

Phantom  Stock  and  Stock  Appreciation  Rights  Plan

The  Company also has an incentive stock plan for senior management 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,  which  are  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, 2000, 1,816 PSAs were outstanding and 826
SARs  were  outstanding  at  prices  ranging  from  $114  to  $  242.

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 $539,000 at December 31, 2000 representing the vested obligation
under  the  plan.  Expenses  of  the  plan  amounted  to  $65,000, $269,000, and
$137,000,  for  the years ended December 31, 2000, 1999, and 1998, respectively.

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.

(14)  Leases

The  Company  leases  certain  buildings  and office space under operating lease
arrangements.  Rent  expense  under  these  arrangements amounted to $754,000 in
2000,  $376,000  in  1999,  and  $284,000 in 1998. 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,  2000  follows  (in  thousands):

Years ending December 31,               Amount
-------------------------             ----------
<S>                                    <C>
  2001                                 $     990
  2002                                       958
  2003                                       939
  2004                                       868
  2005                                       781
  2006 and after                           2,699
                                        --------
  Total                                $   7,235
                                        --------
                                        --------
</TABLE>





















                                                            Page  60
<PAGE>

 (15)  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, 2000 were: Commercial letters of
credit  $8,380,000  and  unused commitments $48,994,000. 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 majority of these commitments
have  terms  up  to  one  year  at  fixed  interest rates current at the date of
origination.  Commitments  to  fund fixed rate residential mortgage loans, which
are expected to be funded within 90 days, amounted to $3,500,000 at December 31,
2000.

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, 2000, 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,  2000  was  approximately  $8,276,000.

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.




































                                                            Page  61
<PAGE>


(16)  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, 2000, that the Bank
meets  all  capital  adequacy  requirements  to  which  it  is  subject.

<TABLE>

<CAPTION>


As  of December 31, 2000, 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.

                                                                                   To  Be Well-
                                                                                    Capitalized
                                                                                    Under Prompt
                                                                For  Capital         Corrective
                                                                   Adequacy            Action
 (dollars  in  thousands)                       Actual             Purposes           Provisions:
                                             ------  -----      -------  -----      -------  -----
                                             Amount  Ratio       Amount  Ratio       Amount  Ratio
                                             ------  -----      -------  -----      -------  -----
As of December 31, 2000
<S>                                       <C>        <C>      <C>         <C>     <C>        <C>
    Total Capital                         $  45,904  10.1%    $  36,253   8.0%    $  45,317  10.0%
      (to risk weighted assets)
    Tier I Capital                        $  41,192   9.1%    $  18,127   4.0%    $  27,190   6.0%
      (to risk weighted assets)
    Tier I Capital                        $  41,192   6.9%    $  23,751   4.0%    $  29,688   5.0%
      (to average assets)

  As of December 31, 1999
    Total Capital                         $  40,985  10.2%    $  32,153   8.0%    $  40,191  10.0%
      (to risk weighted assets)
    Tier I Capital                        $  36,848   9.2%    $  16,077   4.0%    $  24,115   6.0%
      (to risk weighted assets)
    Tier I Capital                        $  36,848   7.2%    $  20,408   4.0%    $  25,509   5.0%
      (to average assets)
</TABLE>





















                                                            Page  62
<PAGE>

 (17)  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, 2000 and 1999, loans and
unused  commitments  to  these  related  parties  amounted  to  $5,199,000  and
$4,497,000,  respectively.

(18)  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,
                                                        -------------------------
                                                           2000            1999
                                                        ---------       ---------
Assets:
<S>                                                    <C>              <C>
    Cash                                               $      235           1,342
    Securities available for sale                              93             177
    Premises and equipment, net                               685             710
    Investment in subsidiaries                             43,459          40,497
    Other assets                                               60              36
                                                        ---------       ---------
      Total assets                                     $   44,532          42,762
                                                        ---------       ---------
                                                        ---------       ---------
  Liabilities:
    Other liabilities                                  $      263             285
  Stockholders' Equity:
    Common stock                                            8,110           8,110
    Additional paid-in capital                              8,532           8,506
    Retained earnings                                      28,687          27,087
    Treasury stock (3,476 shares in 2000
      and 3,725 shares in 1999)                            (1,268)         (1,348)
    Accumulated other comprehensive income                    208             122
                                                        ---------       ---------
      Total Stockholders' Equity                           44,269          42,477
                                                        ---------       ---------
      Total Liabilities and Stockholders' Equity       $   44,532          42,762
                                                        ---------       ---------
                                                        ---------       ---------
</TABLE>

<TABLE>
<CAPTION>

  Statements  of  Income
                                                                Years ended December 31,
                                                               --------------------------
                                                                2000      1999      1998
                                                               ------    ------    ------
Income - Dividends from The Canandaigua
<S>                                                           <C>        <C>       <C>
  National Bank and Trust Company                             $   640     2,025     5,122
  Other income                                                     10        18        11
  Other expense                                                   (44)      (16)      (34)
                                                               ------    ------    ------
    Income before undistributed income of subsidiaries            606     2,027     5,099
  Undistributed (distributions in excess of)
    current year income of subsidiaries                         2,881       330    (1,512)
                                                               ------    ------    ------
    Net income                                                $ 3,487     2,357     3,587
                                                               ------    ------    ------
                                                               ------    ------    ------
</TABLE>









                                                            Page  63
<PAGE>

 (18)  Condensed  Financial  Information  -  Parent  Company  Only  (continued)

<TABLE>
<CAPTION>
  Statements  of  Cash  Flows

                                                                Years ended December 31,
                                                               --------------------------
                                                                2000      1999      1998
                                                               ------    ------    ------
Cash flows from operating activities:
<S>                                                         <C>          <C>       <C>
    Net income                                              $   3,487     2,357     3,587
      Adjustments to reconcile net income to net cash
      from operating activities:
        Depreciation and amortization                              25        25        30
        (Undistributed) distributions in excess of
          current year earnings of subsidiaries                (2,881)     (330)    1,512
        Writedown of security                                     105         -         -
        Other                                                     (62)        5         -
                                                               ------    ------    ------
      Net cash provided by operating activities                   674     2,057     5,129
                                                               ------    ------    ------

  Cash flows from investing activities:
    Sale of subsidiaries                                            -     1,564         -
      Decrease in other real estate                                 -       105         -
    Additional capital investment in subsidiaries              (1,400)     (158)   (3,037)
    Capital distribution from subsidiary                        1,400         -         -
    Fixed assets purchased, net                                     -        (5)      (17)
                                                               ------    ------    ------
      Net cash provided by (used in) investing activities           -     1,506    (3,054)
                                                               ------    ------    ------

  Cash flows from financing activities:
    Proceeds from sale of treasury stock                          106        67        47
    Purchase of treasury stock                                      -      (569)     (348)
    Dividends paid                                             (1,887)   (1,833)   (1,766)
                                                               ------    ------    ------
      Net cash used by financing activities                    (1,781)   (2,335)   (2,067)
                                                               ------    ------    ------

    Net increase in cash                                       (1,107)    1,228         8
  Cash at beginning of year                                     1,342       114       106
                                                               ------    ------    ------
  Cash at end of year                                         $   235     1,342       114
                                                               ------    ------    ------
                                                               ------    ------    ------
</TABLE>























                                                            Page  64
<PAGE>


 (19)  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.






















                                                            Page  65
<PAGE>

 (19)  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, 2000        December 31, 1999
                                                 -----------------        -----------------
                                                 Carrying     Fair        Carrying    Fair
                                                   Amount  Value(1)         Amount Value(1)
                                                   ------  --------         ------ --------
Financial Assets:
<S>                                            <C>          <C>            <C>      <C>

          Cash and equivalents                 $    28,254   28,254          26,834  26,834
          Securities                                84,745   85,134          79,412  78,881
          Loans, net                               455,259  447,624         394,227 393,890

     Financial Liabilities:
       Deposits:
          Demand accounts, savings and
             money market accounts             $   304,137  304,137         227,228 277,228
          Certificates of deposit                  229,672  229,496         177,062 176,832
       Borrowings                                   12,644   12,156          22,218  22,078

     Off-balance-sheet commitments:
       Commercial letters of credit            $         -      126               -      58
       Unused lines of credit                            -        -               -       -
</TABLE>




    (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.
























                                                            Page  66
<PAGE>



Common  Stock  Data

<TABLE>
<CAPTION>

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  (known  open-market)  sales  price,  book  value  at  quarter  end, and
semi-annual  dividends  paid  per  share  since  the  first  quarter  of  1995.


                       Average                           Dividend
                      Sales Price  Book Value             Paid
<S>                    <C>          <C>                  <C>
2000
----
4th quarter            no sales     $278.89
3rd quarter            no sales     $275.89              $5.95
2nd quarter             $457.62     $272.69
1st quarter             $454.20     $265.84              $5.95

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
</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.












                                                            Page  67
<PAGE>


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

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
William  J.  Van  Damme,  Assistant  Vice  President
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
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
Thomas  R.  Ecker,  Vice  President
Keith  J.  Goebel,  Assistant  Vice  President
Bernard  E.  Belcher,  Assistant  Vice  President
Timothy  A.  Stone,  Commercial  Services  Officer
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
Anthony  D.  Figueiredo,  Vice  President  -  Trust  Investment  Officer
Sandra  A.  Lancer,  Vice  President  -  Employee  Benefits  Trust  Officer
Mary  Kay  Bashaw,  Vice  President  -  Investment  Officer
Thomas  Christopher,  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,  Vice  President
Kevin  D.  Kinney,  Assistant  Vice  President  -  Trust  Development  Officer
Joseph  P.  Coonan,  Trust  Development  Officer

Operations
David  R.  Morrow,  Senior  Vice  President
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,  Assistant  Vice  President  -  Assistant  Auditor
Diane  B.  Savage,  Audit  Officer

                                                            Page  68
<PAGE>

Legal,  Finance  and  Compliance
Steven  H.  Swartout,  Esq.,  Vice  President  and  General  Counsel
Lawrence  A.  Heilbronner,  Vice  President  -  Finance
Kathleen  G.  Corry,  Vice  President  -  Bank  Operations
Vicki  B.  Mandrino,  Compliance  Officer
Robert  L.  Simpson,  Assistant  Vice  President  -  Finance

Human  Resources
Mary  Ann  M.  Ridley,  Vice  President  -  Human  Resources
Marie  E.  Dastin,  Human  Resources  Officer

Sales  and  Marketing
Joseph  L.  Dugan,  Senior  Vice  President  -  Sales  Manager
Stephen  R.  Martin,  Vice  President  -  Marketing
Tamra A. B. O'Donnell, Assistant Vice President - Product Manager, Assistant CRA
Officer
















































                                                            Page  69
<PAGE>

Bloomfield  Office
Barbara  A.  Thorpe,  Assistant  Vice  President  -  Community  Office  Manager
Judy  A.  Reader,  Consumer  Services  Officer

Canandaigua  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

Canandaigua  -  Lakeshore  Office
Dolores  J.  Reynolds,  Assistant  Vice  President  -  Community  Office Manager

Chili  Office
Mary  Anne  Burkhart,  Assistant  Vice  President  -  Community  Office  Manager
Barbara  A.  Fitzsimmons,  Consumer  Services  Officer

Customer  Call  Center
Barbara  A.  Finch,  Call  Center  Manager

Eastview  Mall  Office
Donna  L.  Cator,  Community  Office  Manager

Farmington  Office
Henry  A.  Trickey  Jr.,  Assistant  Vice  President  - Community Office Manager
Dianne  M.  Tucker,  Consumer  Services  Officer

Greece  Office
Laurel  L.  Harrington,  Assistant  Vice  President  -  Community Office Manager
Peter  J.  Bevan,  Consumer  Services  Officer

Honeoye  Office
Kathleen  A.  Rice,  Assistant  Vice  President  -  Community  Office  Manager
Sandra  L.  D'Angelo,  Consumer  Services  Officer

Honeoye  Falls  Office
Gerald  V.  Bowe,  Assistant  Vice  President  -  Community  Office  Manager
Audrey  A.  Evangelist,  Consumer  Services  Officer

Irondequoit  Office
Timi  L.  Wright,  Assistant  Vice  President  -  Community  Office  Manager
Deborah  K.  C.  Keskula,  Consumer  Services  Officer

Manchester-Shortsville  Office
Diane  C.  Mordue,  Assistant  Vice  President  -  Community  Office  Manager

Mendon  Office
Christopher  M.  Keys,  Assistant  Vice  President  -  Community  Office Manager
Linda  R.  Hecker,  Consumer  Services  Officer

Perinton  Office
Deborah  E.  Rought,  Assistant  Vice  President  -  Community  Office  Manager

Pittsford  Office
Karen  C.  Serinis,  Assistant  Vice  President  -  Community  Office  Manager
Lisa  J.  Blakesley,  Consumer  Services  Officer

Rochester  Office
Louis  P.  Nau,  Assistant  Vice  President  -  Community  Office  Manager
Paul  Rheude,  Consumer  Services  Officer

Victor  Office
John  W.  Van  Vechten,  Vice  President  -  Community  Office  Manager
Jason  W.  Fitzgerald,  Consumer  Services  Officer

Webster  Office
Kathleen  Vasile,  Assistant  Vice  President  -  Community  Office  Manager
Leslie  C.  O'Malley,  Consumer  Services  Officer

                                                            Page  70
<PAGE>



Community  Advisory  Committees

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

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

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

Manchester-Shortsville  Office
Gary  H.  Bliss
Diane  C.  Mordue
Mary  C.  Record
Charles  D.  Zonneville

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

Victor  Office
Gary  L.  Bennett
Eldred  M.  Sale
William  H.  Turner
John  W.  Van  Vechten

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


















                                                            Page  71
<PAGE>


The  Arthur  S.  Hamlin  Award  for  Excellence

Every  year,  the bank recognizes the outstanding contribution of one of its own
with  the  Arthur  S.  Hamlin award. Employees are encouraged to nominate one of
their  peers  who has demonstrated exceptional performance and dedication to the
bank.  Congratulations  to  this  year's  recipient:  Dawn  Phelps.

"It is truly an honor to have been selected as recipient of the Arthur S. Hamlin
Award.  I  consider  myself fortunate to be associated with an organization that
not  only  encourages  family, community and service, but applauds it. I had the
pleasure  of  meeting  Arthur Hamlin, and was charmed by his demeanor as a civic
gentleman.  I  am  flattered to have been selected for an award named for such a
distinguished  man."
Dawn  Phelps,  1999  Arthur  S.  Hamlin  Award  Recipient

2000  Nominees

Bruce  Baker
William  Foose
Lena  Hayes
Donna  Leone
Corene  Trickey
Karinda  Trowbridge

Past  Recipients

Beth  Uhlen  1998
Kathy  Lafler  1997
Jeannie  Baldick  1996
Amy  Eagley  1995
Regina  Kesel  1995
Susan  Foose  1994
Kathleen  Corry  1993
James  Roth  1992
Michael  O'Donnell  1991
Jerry  Drake  1990
Linda  Keyes  1989





























                                                            Page  72
<PAGE>


























Canandaigua  National  Corporation









































                                                            Page  73
<PAGE>