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

[X] Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act
of  1934
       For  the  fiscal  year  ended  December  31,  2000

[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act  of  1934
     For  the  transition  period  from  _____________  to  ____________
     Commission  File  Number  2-94863

                           CANANDAIGUA  NATIONAL  CORPORATION
                           ----------------------------------
               (Exact  name  of  Registrant  as  specified  in  its  charter)

                        New  York                             16-1234823
                        ---------                             ----------
              (State  of Incorporation)        (IRS Employer Identification No.)

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

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

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

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

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

  Indicate  by  check mark whether the registrant (1) filed all reports required
to  be  filed
by  Section  13  or  15  (d)  of  the Securities Exchange Act of 1934 during the
preceding  12
months (or for such shorter period that the registrant was required to file such
reports),  and
(2)  been  subject  to  such filing requirements for the past 90 days. Yes   [X]
No   [  ]

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

Aggregate  market  value  of  the  voting  stock  held  by non-affiliates of the
Registrant  as  of  January  31,  2001.

     Common  Stock,  $50.00  par  value  -  described  on  page 8 of 2000 Annual
     Report  and Common Stock Data disclosed on page 32 of the Annual Report are
     incorporated  herein  by  reference.

     Number  of  shares  outstanding  of the Registrant's shares of common stock
     as  of  January  31,  2001.  158,732 shares, common stock, $50.00 par value

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

     Due to the limited number of transactions, the weighted average sales price
     disclosed  on  page  32  of  the Annual Report may not be indicative of the
     actual market  value  of  the  Company's  stock.






                                                            Page  1
<PAGE>

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

Portions  of  the Registrant's Annual Report to Shareholders for the fiscal year
ended  December  31,  2000  are  incorporated  by reference into Parts I and II.

Portions  of  the Registrant's Definitive Proxy Statement relating to the Annual
Meeting  of  Shareholders  held  on March 14, 2001 are incorporated by reference
into  Part  III.


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

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
































                                                            Page  2
<PAGE>

<TABLE>

<CAPTION>

     CANANDAIGUA  NATIONAL  CORPORATION
     FORM  10-K
     INDEX


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

Item 1.  Business                                                      4

Item 2.  Properties                                                   18

Item 3.  Legal Proceedings                                            20

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

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

Item 6.  Selected Financial Data                                      20

Item 7.  Management's Discussion and Analysis of
             Financial Condition and Results of Operations            21

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

Item 8.  Financial Statements and Supplementary Data                  30

Item 9.  Changes in and Disagreements with Accountants on Accounting
          and Financial Disclosure                                    30

PART III.
Item 10. Directors and Executive Officers of
          the Registrant                                              30

Item 11. Executive Compensation                                       31

Item 12. Security Ownership of Certain
              Beneficial Owners and Management                        31

Item 13. Certain Relationships and Related Transactions               32

PART IV.
Item 14. Exhibits, Financial Statement
          Schedules and Reports on Form 8-K                           33

Signatures                                                            34

</TABLE>


















                                                            Page  3
<PAGE>

PART  I

Item  1.  Business

Canandaigua  National  Corporation

     The  Canandaigua  National  Corporation,  referred  to  as  "Company", is a
one-bank  holding  company  which  builds  lasting  customer  relationships  by
providing  comprehensive  financial  solutions  to individuals, be they building
families  or  businesses.  It  was organized on October 31, 1984, and registered
under  the  Bank  Holding  Company  Act  of  1956, for the purpose of becoming a
one-bank  holding  company.  The  formation  of  the  bank  holding  company was
consummated  on  May  31,  1985,  through  the  exchange  of  80,000  shares  of
Canandaigua  National  Corporation  $50  par  value  common stock for all of the
outstanding  shares  of  The  Canandaigua  National Bank and Trust Company.  The
one-bank  holding  company  serves as a means of increasing the scope of banking
and  financial  services  in  the market area served by The Canandaigua National
Bank  and  Trust  Company.  The  Company acquired 100% of HomeTown Funding, Inc.
(HTF)  during 1997.  HTF, operating as the Company's mortgage department, offers
a  full  line  of mortgage products.  HTF is engaged in underwriting and funding
mortgages  in  western New York State.  HTF resells residential mortgages to the
Bank  and  unaffiliated  entities, which service the loans.  On January 1, 1999,
the Company merged the mortgage banking operations of HTF and Greater Funding of
New  York,  Inc  (GFNYI), a mortgage banking company acquired in 1996.  The Bank
will  remain  the  principal  source  of the Company's operating revenue and net
income.

The  Canandaigua  National  Bank  and  Trust  Company

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

     As  of  December  31,  2000, Bank had total assets of $593.8 million; total
capital  of  $41.4  million; and total deposits of $535.5 million.  Its deposits
are  insured  through  the  Bank Insurance Fund by the Federal Deposit Insurance
Corporation.

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

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

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





                                                            Page  4
<PAGE>
Item  1.  Business

The  Canandaigua  National  Bank  and  Trust  Company  (continued)

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

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

      The  Bank  also  acts  as  advisor  to the Canandaigua Equity Fund and the
Canandaigua  Bond  Fund.  [Shares  of  these  funds  are  not  bank  deposits or
obligations  of,  or guaranteed or endorsed by, any bank, and are not insured by
the  Federal  Deposit  Insurance  Corporation,  the Federal Reserve Board or any
other  agency.  Shares  of  these  funds  may  lose  value.]

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

Territory  Served

     The  Company's physical market area generally covers western Ontario County
and  Monroe  County  in  New  York  State.  Customers  generally  initiate their
relationship  with  the Bank from this area. However, the Bank conducts business
through  the  internet and by telephone and with payment services such as credit
cards  and debit cards; thus, the Bank's customers are served world-wide.  Since
the  mid  1990's,  the  Bank  expanded  into  Monroe County by opening community
banking  offices  in  Pittsford  (1995), Webster/Penfield (1998), Greece (1999),
Chili  (1999),  Honeoye  Falls  (1999),  Perinton  (2000),  Irondequoit  (2000),
Bushnell's  Basin (2000), and the City of Rochester (2000).  In 2001 the Company
will  relocate the Honeoye Falls office to a permanent site and plans to open an
office  in  Brighton.

Competition

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

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

     One  measure  of competitive strength is the percentage of deposits held by
an  institution  in  a  geographic  location.  Based  upon  the most recent data
available from the FDIC as of June 30, 2000, the Company's share of deposits for
all  banks  was 39% in Ontario County compared to 36% in 1999.  In Monroe County
the  Bank's  share  increased  to  1.1% ($113.1 million) in 2000 from .6% ($54.2
million)  in  1999.





                                                            Page  5
<PAGE>
Item  1.  Business  (continued)

Employees

     At  December 31, 2000, the Company had 323 employees of whom 71 worked on a
part-time  basis.  None  of the employees are covered by a collective bargaining
agreement.  The  Company  considers its relations with its employees to be good.

Supervision  and  Regulation

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

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

     The  Act  preserves  the  role of the Federal Reserve Board as the umbrella
supervisor  for  holding companies while at the same time incorporating a system
of  functional  regulation  designed  to  utilize  the  strengths of the various
federal  and  state  regulators.  It  also  sets up a mechanism for coordination
between  the  Federal  Reserve Board and the Secretary of the Treasury regarding
the approval of new financial activities for both holding companies and national
bank  financial subsidiaries. The Act provides for functional regulation of bank
securities  activities.  The  Act  repeals  Bank's  blanket  exemption  from the
definition  of  a "broker" and replaces it with a set of limited exemptions that
allow  the  continuation  of  some  traditional  activities  performed  by banks
(trust-related  activities).  The  Act  amends the Exchange Act to include banks
within the general definition of dealer.  The bank exclusion from the definition
of  investment  adviser  is  also  eliminated.

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

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

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

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

                                                            Page  6
<PAGE>

Item  1.  Business

Supervision  and  Regulation  (continued)

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

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

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

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

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

Government  Monetary  Policies  and  Economic  Controls

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

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

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

Consolidated  Financial  and  Statistical  Data

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






                                                            Page  7
<PAGE>
STATISTICAL  DISCLOSURE  BY  BANK  HOLDING  COMPANIES

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

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

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

<TABLE>
<CAPTION>


           Average Balance Sheets and Analysis of Net Interest Margin
                 For the Years December 31, 2000, 1999 and 1998
                             (Dollars in thousands)


             2000                       Average               Average
                                        Balance    Interest     Rate
                                      ----------  ---------  ---------
<S>                                   <C>         <C>        <C>
Assets
Interest earning assets:
  Interest bearing deposits with
    others                            $      107  $       5      4.67 %
  Federal funds sold                       1,201         71      5.91
  Securities (1):
    Taxable                               40,095      2,355      5.87
    Tax-exempt                            46,018      1,998      4.34
  Loans, net (2)                         431,768     37,647      8.72
                                      ----------  ---------  --------
      Total interest earning assets      519,189     42,076      8.10
                                                  ---------  ========
Non-interest earning assets               50,052
                                      ----------
      Total assets                    $  569,241
                                      ==========

Liabilities and Stockholders'
Equity
Interest bearing liabilities:
  Savings, interest checking and
    money market                      $  217,052      5,449      2.51 %
  Certificates of deposit                205,140     11,985      5.84
  Borrowings                              21,760      1,367      6.28
                                      ----------  ---------  --------
      Total interest bearing
        liabilities                      443,952     18,801      4.23
                                                  ---------  ========
Non-interest bearing liabilities          82,618
Stockholders' equity                      42,671
                                      ----------
      Total liabilities and
        stockholders' equity          $  569,241
                                      ==========

Interest rate spread                        3.87 %
                                      ==========
Net interest margin                   $   23,275       4.48 %
                                      ==========  =========
<FN>

(1)     Securities  available-for  sale are stated at fair value and include the
Company's  required  investments  in Federal Reserve Bank Stock and Federal Home
Loan  Bank  Stock.
(2)     Average  balance includes non-accrual loans. Interest includes fees of $
395,000.
</TABLE>
















                                                            Page  8
<PAGE>
<TABLE>
<CAPTION>

STATISTICAL  DISCLOSURE  BY  BANK  HOLDING  COMPANIES  (continued)



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

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

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

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




























                                                            Page  9
<PAGE>
<TABLE>
<CAPTION>

STATISTICAL  DISCLOSURE  BY  BANK  HOLDING  COMPANIES  (continued)



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

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

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

<FN>

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





C.  Rate/Volume  Analysis

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













                                                            Page  10

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

C.  Rate/Volume  Analysis  (continued)
<TABLE>
<CAPTION>


                              Rate/Volume Analysis
                    For the Years December 31, 2000 and 1999
                             (Dollars in thousands)

2000  vs.  1999
                                Increase/(decrease)  due
                                     to  change  in
                                   Volume         Rate          Total
                                  --------       -------       -------
<S>                               <C>            <C>           <C>
Assets
  Interest bearing deposits with
    others                        $    (3)       $    2        $   (1)
  Federal funds sold                 (198)           43          (155)
  Securities                          430           167           597
  Loans, net                        8,041           741         8,782
                                  --------       -------       -------
      Total                         8,270           953         9,223
                                  ========       =======       =======

Liabilities
  Savings, interest checking and
    money market                      720            53           773
  Certificates of deposit           2,730         1,206         3,936
  Borrowings                          729           111           840
                                  --------       -------       -------
      Total                         4,179         1,370         5,549
                                  ========       =======       =======

Net change                        $ 4,091        $ (417)       $3,674
                                  ========       =======       =======

</TABLE>




<TABLE>
<CAPTION>


1999  vs.  1998
                                  Increase/(decrease) due
                                      to  change  in
                                   Volume          Rate          Total
                                  --------       --------       --------
<S>                               <C>            <C>            <C>
Assets
  Interest bearing deposits with
    others                        $    (8)       $    (5)       $   (13)
  Federal funds sold                  196             (3)           193
  Securities                           96           (307)          (211)
  Loans, net                        3,039         (1,008)         2,031
                                  --------       --------       --------
      Total                         3,323         (1,323)         2,000
                                  ========       ========       ========

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

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

</TABLE>







                                                            Page  11
<PAGE>

STATISTICAL  DISCLOSURE  BY  BANK  HOLDING  COMPANIES  (continued)

II.  Securities  Portfolio

A.  Securities  Portfolio

<TABLE>
<CAPTION>

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

                                   Securities
                     As of December 31, 2000, 1999 and 1998
                             (Dollars in thousands)



                                      2000     1999     1998
                                     -------  -------  -------
<S>                                  <C>      <C>      <C>
US Treasury and other U.S.
  government agencies' obligations   $36,949  $26,865  $29,936
Obligations of states and political
  subdivisions                        42,062   46,061   39,253
Other securities                       5,734    6,486    7,275
                                     -------  -------  -------
      Total                          $84,745  $79,412  $76,464
                                     =======  =======  =======


</TABLE>


B.  Maturity  and  Yields  of  Securities  Portfolio

<TABLE>
<CAPTION>

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


                   Maturities and Weighted Average Yields of Securities
                                  As of December 31, 2000
                                  (Dollars in thousands)



-                          -         -       After           After     -
                                               One            Five
                          One              through         through           After
                        Year or               Five             Ten             Ten
                          Less               Years           Years           Years
                         Amount    Yield    Amount   Yield  Amount   Yield  Amount   Yield
                        --------  -------  --------  -----  -------  -----  -------  -----
<S>                     <C>       <C>      <C>       <C>    <C>      <C>    <C>      <C>
US Treasury and other
  US Government agen-
  cies' obligations     $ 25,452     5.17  $ 10,995   6.51  $   502   7.48  $    --     --
Obligations of states
  and political
  subdivisions(1)          8,862     4.41    26,150   4.43    6,862   4.74      188   5.52
Other securities             497     6.39       796   4.91       --     --    4,441   4.77
                        --------  -------  --------  -----  -------  -----  -------  -----
      Total             $ 34,811     4.99  $ 37,941   5.04  $ 7,364   4.93  $ 4,629   4.80
                        ========  =======  ========  =====  =======  =====  =======  =====


<FN>

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

</TABLE>






                                                            Page  12

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

III.  Loan  Portfolio

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

A.  Types  of  Loans

<TABLE>
<CAPTION>

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



                                   2000       1999       1998       1997      1996
                                 ---------  ---------  ---------  --------  --------
<S>                              <C>        <C>        <C>        <C>       <C>
Commercial, financial and
  agricultural                   $ 65,324   $ 62,491   $ 43,260    37,610    27,503
Commercial mortgage               195,153    141,255     83,771    74,228    62,513
Residential mortgage               81,475     69,862     76,130    94,593   101,349
Consumer
     Auto - indirect              104,559    103,605     84,370    73,211    45,747
     Other                          9,401     18,561     17,753    15,245     9,925
Other                               4,059      2,589      6,485    14,257    11,437
                                 ---------  ---------  ---------  --------  --------
                                  459,974    398,363    311,769   309,144   258,474
Less: Allowance for loan losses    (4,712)    (4,136)    (3,283)   (3,153)   (2,675)
                                 ---------  ---------  ---------  --------  --------
Loans, net                       $455,259   $394,227   $308,486   305,991   255,799
                                 =========  =========  =========  ========  ========

</TABLE>


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

<TABLE>
<CAPTION>

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

                        Maturity and Sensitivity of Loans
                             As of December 31, 2000
                             (Dollars in thousands)


                                                  After
                                                    One
                                           One  through   After
                                       Year or     Five    Five
                                          Less    Years   Years   Total
                                      --------  -------  ------  ------
<S>                                   <C>       <C>      <C>     <C>
Commercial, financial and
  agricultural                        $ 33,207   20,591  11,526  65,324

Loans maturing after one year:
  With a predetermined interest rate             16,902   7,688
  With a floating or adjustable rate              3,689   3,838

</TABLE>


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

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




                                                            Page  13

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

III.  Loan  Portfolio  (continued)

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

     The  Company  extends lines of credit under which a customer may borrow for
various  purposes.  The  extension of these commitments and lines of credit have
been in the normal course of business. In the opinion of management, at December
31,  2000,  there  are  no material commitments to extend credit which represent
unusual  risks.

C.  Risk  Elements

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

<TABLE>
<CAPTION>

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


                                      2000      1999      1998     1997      1996
                                    --------  --------  --------  -------  --------
<S>                                 <C>       <C>       <C>       <C>      <C>
Loans past due 90 days or more and
  accruing:
  Commercial, financial and
    agricultural                    $    22   $    --   $    14   $  347   $     -
  Real estate-commercial                 --        11       102      610        --
  Real estate-residential                17        13       157      508        48
  Consumer                              166        91       108      501        28
                                    --------  --------  --------  -------  --------
    Total past due 90 days or more
      and accruing                      205       115       381    1,966        76
                                    --------  --------  --------  -------  --------

Loans in non-accrual status:
  Commercial, financial and
    agricultural                        437       509     1,498    1,210     2,285
  Real estate-commercial              1,890       980       225    1,327     7,565
  Real estate-residential               371       151       390      586     1,364
  Consumer                              471        --        --       53        75
                                    --------  --------  --------  -------  --------
    Total non-accrual loans           3,169     1,640     2,113    3,176    11,289
                                    --------  --------  --------  -------  --------

    Total non-performing loans        3,374     1,755     2,494    5,142    11,365
                                    --------  --------  --------  -------  --------

Other real estate owned:
  Commercial                          1,466     1,651     1,642    2,494     1,012
  Residential                            --        --        --       18       129
                                    --------  --------  --------  -------  --------
    Total other real estate owned     1,466     1,651     1,642    2,512     1,141
                                    --------  --------  --------  -------  --------

    Total non-performing assets     $ 4,840   $ 3,406   $ 4,136   $7,654   $12,506
                                    ========  ========  ========  =======  ========

Non-performing loans to total
  period-end loans                     0.73%     0.44%     0.80%    1.66%     4.40%
                                    ========  ========  ========  =======  ========

Non-performing assets to total
  period-end loans and other real
  estate                               1.05%      .85%     1.33%    2.48%     4.84%
                                    ========  ========  ========  =======  ========

Allowance to non-performing loans    139.66%   235.67%   131.64%   61.32%    23.54%
                                    ========  ========  ========  =======  ========

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

</TABLE>




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

III.  Loan  Portfolio  (continued)

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

     The  Company earned interest on a cash basis of $55,000 in 2000, $77,000 in
1999,  and $281,000 in 1998 on non-accrual loans.  Additional interest income of
$245,000,  $138,000,  and $239,000 would have been recognized during 2000, 1999,
and  1998,  respectively,  if  the  loans reported above as non-accrual had been
current  in  accordance  with  the  original  terms.

(2)  Potential  Problem  Loans

     Management  is unaware of any potential problem loans at December 31, 2000,
which  are  not  already  disclosed  in  the  table  above.


IV.  Summary  of  Loan  Loss  Experience

A.  Analysis  of  Loss  Experience

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





























                                                             Page  15
<PAGE>


STATISTICAL  DISCLOSURE  BY  BANK  HOLDING  COMPANIES  (continued)

IV.  Summary  of  Loan  Loss  Experience  (continued)

<TABLE>
<CAPTION>

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

                         Summary of Loan Loss Allowance
                              (Dollars in thousands)


                                   2000     1999      1998     1997      1996
                                  -------  -------  --------  -------  --------
<S>                               <C>      <C>      <C>       <C>      <C>
Balance at beginning of year      $4,136   $3,283   $ 3,153   $2,675   $ 2,258

Provision charged to operations    1,028    1,239       641      851     1,490
Charge-offs:
  Commercial, financial and
    agricultural                    (165)      (3)     (274)    (257)   (1,356)
  Real estate-commercial              --       --        --       --       (44)
  Real estate-residential             --      (29)      (19)     (40)      (16)
  Consumer                          (792)    (843)     (760)    (498)     (221)
                                  -------  -------  --------  -------  --------
                                    (957)    (875)   (1,053)    (795)   (1,637)
                                  -------  -------  --------  -------  --------

Recoveries:
  Commercial, financial and
    agricultural                      85       20        25      190       216
  Real estate-commercial              --       --        --       --        71
  Real estate-residential             13        3       102       19         1
  Consumer                           407      466       415      213       276
                                  -------  -------  --------  -------  --------
                                     505      489       542      422       564
                                  -------  -------  --------  -------  --------

    Net charge-offs:                (452)    (386)     (511)    (373)   (1,073)
                                  -------  -------  --------  -------  --------

Balance at end of year            $4,712   $4,136   $ 3,283   $3,153   $ 2,675
                                  =======  =======  ========  =======  ========

Net charge-offs to average loans    0.10%    0.11%     0.17%    0.13%     0.47%
                                  =======  =======  ========  =======  ========

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

</TABLE>


B.  Allocation  of  Allowance  for  Loan  Losses

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
















                                                            Page  16

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

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

                        Allocation of Allowance for Loan Losses
                                 (Dollars in thousands)



                               2000       1999      1998
                              -------  ----------  -------
  Allowance                    % (1)   Allowance    % (1)   Allowance    % (1)
----------------------------  -------  ----------  -------  ----------  -------
<S>                           <C>      <C>         <C>      <C>         <C>      <C>
  Commercial, financial and
    agricultural (2)          $2,200        56.6%  $1,783        51.1%  $1,484    40.7%
  Real estate-residential        309        17.7%      50        17.5%      54    24.4%
  Consumer                     2,203        25.7%   2,303        31.4%   1,745    34.8%
                              -------  ----------  -------  ----------  -------  ------
                              $4,712       100.0%  $4,136       100.0%  $3,283   100.0%
                              =======  ----------  =======  ----------  =======  ------


                                1997        1996
                              -------  ----------
  Allowance                     % (1)  Allowance     % (1)
----------------------------  -------  ----------  -------
  Commercial, financial and
    agricultural (2)          $1,974        36.2%  $1,982        34.8%
  Real estate-residential        111        30.6%     122        39.2%
  Consumer                     1,068        33.2%     571        26.0%
                              -------  ----------  -------  ----------
                              $3,153       100.0%  $2,675       100.0%
                              =======  ----------  =======  ----------



<FN>

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

</TABLE>


V.  Deposits

<TABLE>
<CAPTION>

     The  following  tables  summarize the average deposits and average rates paid
during  the  years  presented.
                          Average Deposits and Rates Paid
               For the Years Ended December 31, 2000, 1999 and 1998
                               (Dollars in thousands)



                               2000     1999      1998
                             --------  -------  --------
                               Amount    Rate    Amount     Rate    Amount     Rate
                              -------  --------  -------  --------  -------  ------
<S>                          <C>       <C>      <C>       <C>      <C>       <C>
Non-interest bearing demand  $ 78,775      --%  $ 66,769      --%  $ 62,944     --%
Interest-bearing demand        51,652    1.15%    47,851    1.33%    42,099   1.50%
Savings and money market      165,400    2.93%   140,480    2.88%   109,919   2.77%
Time                          205,140    5.84%   156,618    5.14%   128,942   5.48%
                             --------  -------  --------  -------  --------  ------
                             $500,967    3.48%  $411,718    3.09%  $343,904   3.12%
                             ========  =======  ========  =======  ========  ======


</TABLE>



<TABLE>
<CAPTION>

     The following table sets forth the time certificate of deposits of $100,000
or  greater,  classified  by  the  time  remaining until maturity, which were on
deposit  as  of  December  31,  2000.

           Maturity Distribution of Time Deposits of $100,000 or More
                            As of  December 31, 2000
                              (Dollars in thousands)



<S>                  <C>
3 months or less     $ 98,463
3 through 6 months     10,144
6 through 12 months     6,758
Over 12 months         16,022
                     --------
                     $131,387
                     ========


</TABLE>


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

VI.  Return  on  Equity  and  Assets

<TABLE>
<CAPTION>

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

                                Financial Ratios
              For the Years Ended December 31, 2000, 1999 and 1998



                                   2000    1999    1998
                                  ------  ------  ------
<S>                               <C>     <C>     <C>
Return on average assets           0.61%   0.50%   0.86%
Return on average equity           8.17%   5.68%   8.89%
Dividend payout ratio             54.44%  77.81%  49.15%
Average equity to average assets   7.50%   8.84%   9.68%
                                  ------  ------  ------

</TABLE>


VII.  Short-term  Borrowings

<TABLE>
<CAPTION>

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

                              Short-term Borrowings
              For the Years Ended December 31, 2000, 1999 and 1998
                             (Dollars in Thousands)



                                             2000     1999     1998
                                            -------  -------  -------
<S>                                         <C>      <C>      <C>
Amount outstanding at December 31,          10,400   18,900    2,300
  Weighted average rate                       5.85%    5.72%    4.84%

Maximum outstanding at any month end        19,200   26,300   48,200

Average amount outstanding during the year   7,855    3,948   24,753
  Weighted average rate                       6.30%    5.36%    5.66%

</TABLE>



Item  2.  Properties

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

<TABLE>
<CAPTION>

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



Location                  Use              Ownership    Expiration (1)
---------------  ----------------------  -------------  --------------
<S>              <C>                     <C>            <C>
Canandaigua, NY  Main office space       Owned                      --
Bloomfield, NY   Bloomfield bank office  Owned                      --
Canandaigua, NY  Customer call center    Leased office      06/30/2002



</TABLE>


                                                              Page  18
<PAGE>
<TABLE>
<CAPTION>


Item  2.  Properties  (continued)


Location                           Use                      Ownership       Expiration (1)
-----------------  -----------------------------------  ------------------  ---------------
<S>                <C>                                  <C>                 <C>
Victor, NY         Eastview Mall bank office            Leased office            10/31/2004
Farmington, NY     Farmington bank office               Owned, leased land       06/30/2002
Honeoye, NY        Honeoye bank office                  Owned                            --
Canandaigua, NY    Lakeshore bank office                Leased office            12/31/2001
Shortsville, NY    Manchester-Shortsville bank office   Leased office       Month to month
Mendon, NY         Mendon bank office                   Leased office            12/31/2004
Pittsford, NY      Pittsford bank office                Leased office            12/31/2001
Victor, NY         Victor bank office                   Owned                            --
Penfield, NY       Webster bank office                  Leased office            08/31/2008
Greece, NY         Greece bank office                   Leased office            10/31/2003
Chili, NY          Chili bank office                    Leased office            06/01/2010
Honeoye Falls, NY  Honeoye Falls bank office (2)        Leased office            07/31/2001
Honeoye Falls, NY  Permanent bank office site           Owned                            --
Irondequoit, NY    Irondequoit bank office              Owned                            --
Perinton, NY       Perinton bank office                 Leased office            03/15/2004
Perinton, NY       Basin Park Financial Center          Leased office            04/30/2011
Rochester, NY      Rochester bank office                Leased office            12/31/2009
Pittsford, NY      HomeTown Funding                     Owned                            --
Canandaigua, NY    HomeTown Funding branch office       Leased office            04/30/2001
Bloomfield, NY     CNB Agency office                    Leased office            04/30/2001

<FN>

(1)  If  applicable
(2)  Temporary

</TABLE>


     During  2001 the Bank will continue to increase its number of Monroe County
offices.  It  expects  to enter into a lease agreement for an office in the town
of  Brighton,  New  York.

<TABLE>
<CAPTION>

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



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

</TABLE>


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

     The  carrying  value  of  the Company's properties as of December 31, 2000,
which  is required to be included herein pursuant to Item 102 of Regulation S-K,
is  included  under the caption "Notes to Consolidated Financial Statements" set
forth  on  pages  12 through 31 of the 2000 Annual Report to Stockholders and is
incorporated  herein  by  reference.





                                                            Page  19
<PAGE>
Item  3.  Legal  Proceedings

     The  Company  and  its  subsidiaries  are not involved in any pending legal
proceedings  other  than  legal  proceedings  arising  in the ordinary course of
business.  In  the  opinion  of  management  the ultimate outcome of these legal
matters  is  not expected to be material to the consolidated financial condition
or  results  of  operations  of  the  Company.

Item  4.  Submission  of  Matters  to  a Vote of Security Holders (in the fourth
quarter  of  2000)

     None.

PART  II

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

     The  market  and  dividend  information  required  to  be  included herein,
pursuant to Item 201 of Regulation S-K, is incorporated herein by reference from
page  32  of  the  2000  Annual  Report to Stockholders and the Proxy Statement.

     While  there  can  be  no assurance that the amount and timing of dividends
paid  in  recent  years  will  continue,  management has no knowledge of current
activities that would require reduction of dividends paid in recent years and at
the  same  times.

       At  December  31, 2000, the Company had approximately 849 shareholders of
record. Information regarding beneficial ownership of the Company's stock is set
forth  in  the  Company's  Proxy Statement and incorporated herein by reference.

Item  6.  Selected  Financial  Data

<TABLE>
<CAPTION>

     The  following  table  represents  a  summary of selected components of the
Company's  consolidated  financial  statements for the five years ended December
31,  2000.  All information concerning the Company should be read in conjunction
with  the  consolidated  financial  statements  and  related  notes.

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



                                 2000     1999     1998     1997     1996
                               --------  -------  -------  -------  -------
<S>                            <C>       <C>      <C>      <C>      <C>
Income Statement Information:
  Net interest income          $ 23,275   19,601   18,420   18,194   16,343
  Provision for loan losses       1,028    1,239      641      851    1,490
  Non-interest income             8,942    7,274    5,924    3,788    3,401
  Non-interest expense           26,487   22,383   18,430   15,632   14,163
  Income taxes                    1,215      896    1,686    1,762    1,144
  Net income                      3,487    2,357    3,587    3,737    2,947

Balance Sheet Data:
  Total investments            $ 84,745   79,412   76,464   74,499   71,771
  Total loans, net              455,259  394,227  308,486  305,991  255,799
  Total assets                  594,693  522,135  428,047  418,942  360,623
  Total deposits                533,809  454,290  376,507  324,761  307,966
  Total borrowings               12,644   22,218    7,142   50,667   11,590
  Total equity                   44,269   42,477   42,478   40,932   39,119
  Average assets                569,241  469,626  417,001  385,767  334,659
  Average equity                 42,671   41,533   40,357   39,383   37,834

Per Share Data:
  Net income, basic            $  22.00    14.82    22.38    23.22    18.20
  Net income, diluted          $  21.86    14.78    22.38    23.22    18.20
  Cash dividends                  11.90    11.50    11.00    10.00     8.75

</TABLE>


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

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

Overview
--------

     2000  was  a  year  of  continued  growth  as  the  Company  furthered  its
investments  in  new  offices  and  expanded  its  market  reach  throughout the
metropolitan Rochester area.  These plans were outlined in 1998's Annual Report.
During  2000,  the Company opened four banking offices in Irondequoit, Perinton,
Bushnell's Basin and downtown Rochester.  The Company is making plans to open an
office  in Brighton later in 2001 as well as relocating its Honeoye Falls office
to  a  permanent  site.  2000  saw strong asset growth, albeit lower than 1999's
levels:  13.9%  growth  in  assets,  15.5%  growth  in  loans,  17.5%  growth in
deposits,  and  4.2%  in  equity.  Importantly, the investments in the future we
began  making in 1998 are beginning to pay off, with earnings of $3.5 million in
2000,  a  47.9%  increase  over  1999's  $2.4  million.

     2000's  results  of $21.86 per diluted share compare favorably to budget of
$15.24  and  to  1999's  results  of  $14.78.  The Company anticipates continued
income growth in 2001 with a target of $29.17.  This is in line with a five-year
plan  laid  out  in  late  1998  resulting  from  the accelerated expansion.  As
disclosed  at  the  March  2001  annual  shareholders'  meeting,  management  is
targeting  further  earnings  growth  to  $53.64  per  share  by  year end 2003.

     Impacting  2000's  pre-tax  results  was  approximately  $0.1  million  in
severance  costs  and  $0.4  million in contract termination costs.  These costs
were a result of the Company's efforts to slow the rate of expense growth during
the  expansion  plan  and a realignment of the Company's credit card operations.
Management  estimates  that  approximately  $1.0  million in salary and benefits
(prior  to  annual  raises)  was  eliminated.  Annual  operating  expenses
approximating  $0.4  million  are  expected  to be eliminated from the Company's
realignment  of  its  credit  card  activities.  Another $0.5 million in revenue
increases are projected due to changes in deposit account and other fees, and at
least  $0.1 million in cost reduction is expected to come from the consolidation
of  the  Company's  mortgage  businesses.  The  combined impact of these changes
totals  $2.0  million  (pre-tax)  and  is  consistent with the target set out by
management  in  early  2000.

     While management anticipates the aforementioned targets will be met in 2001
and  2003,  they  are subject to changes in economic conditions, the real estate
market,  interest  rates  and  other factors. Therefore, actual results may vary
materially.

     The quality of the Company's assets remained good with non-performing loans
at  December  31, 2000, at less than 1.0% of total loans. The allowance for loan
losses stood at 139.7% of non-performing loans at year-end 2000 versus 235.7% at
December  31,  1999.  However,  the  provision  for  loan loss decreased to $1.0
million  in  2000 from $1.2 million in 1999 reflective of slower loan growth and
good  asset  quality.  Other  real estate owned declined to $1.5 million in 2000
from  $1.7  million  in  1999.

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

     As  of  December 31, 2000, total assets of the Company were $594.7 million,
up  from  $522.1  million  at year end 1999. Cash and equivalents increased $1.4
million  to  $28.3  million  in connection with the growth in customer deposits.
     Securities  showed  an  increase  of  $5.8  million  to  $81.7 million. The
Company's securities, with the exception of a minor amount of equity securities,
are  held  to  maturity.


                                                            Page  21
<PAGE>

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

The  portfolio  is comprised mainly of US Treasuries and agencies and tax-exempt
obligations  of  state  and  local subdivisions.  Nearly all of the portfolio is
pledged  to  federal financial agencies and to secure municipal deposits.  These
deposits,  in  turn,  are  used  to purchase securities of local municipalities.
Other  securities  consist  mainly of high-grade corporate bonds and other local
investments.  The  mix  of taxable and tax-exempt securities can vary during the
year and year-on-year depending upon the volume of the Company's taxable income,
the  securities'  tax-equivalent  yield  and  the supply of high-grade municipal
securities.  During  much  of  2000  management  replaced  maturing  tax-exempt
municipal  bonds  with  US  Treasury  securities.

     Net  loans  increased  $61.0 million to $455.3 million. The growth in loans
came mostly in the first half of the year, having reached the year-end target by
June.  Management  slowed  loan  growth  during  the  second half of the year to
ensure  the  Company  and  Bank  remained  well-capitalized.  (Refer to "Capital
Resources"  section).  Nearly  all  of  2000's  loan growth came from commercial
loans,  which  was  consistent  with  projected  results.
     All  other  assets  rose  $4.3  million,  most of which was in premises and
equipment  for  expansion.
     Total  non-performing  loans  increased  over the twelve-month period ended
December  31, 2000, by $1.6 million to $3.4 million at year-end 2000 as compared
to  $1.8  million at year-end 1999. All categories showed an increase.  However,
commercial loans increased the most and is due mainly to one relationship, which
is  likely to result in foreclosure in 2001.  Management believes the underlying
collateral  value  is  sufficient  to  cover  the  loan  balance.
     Management has been successful over the past five years in reducing overall
non-performing assets as a percentage of total assets.  It attributes this trend
to  a  combination  of strict underwriting procedures, strong collection efforts
and  a  relatively  stable  economic  cycle  in  the  Company's  market.
     The  allowance  for loan losses stood at $4.7 million at December 31, 2000,
up  $0.6  million  from  December  31, 1999.  2000's year-end balance represents
1.02%  of  total  loans  versus  1.04%  for  1999.  Net charge-offs for the year
remained  favorable  at  0.10%  of  average  loans  versus  0.11%  in  1999.

     Other real estate owned consists of three parcels, all commercial, for $1.5
million.  These  are the same three parcels from 1999.  However, during 2000 the
Company  made  progress  in  plans  to liquidate these assets, some of which are
expected  to  occur  in  2001.
     In  2000  the  Company  added  approximately  $4.9  million in premises and
equipment  with most relating to the new bank offices.  With the planned opening
of  at  least  two  banking  offices in 2001, more fixed assets additions can be
anticipated,  which  the  Company  expects  to  fund  from  current  operations.
     Total  deposits at December 31, 2000, were $533.8 million and were up $79.5
million  from  December  31, 1999. For the same period, borrowings from the FHLB
were  down  $9.6  million to $12.6 million.  Other liabilities increased by $0.8
million  to  $4.0  million.  Deposit growth since December 31, 1999, came in all
account  categories:  Demand  deposits  were up $20.0 million, savings and money
market  up $6.9 million and time deposits up $52.6 million. Overall, the deposit
growth  is  attributable  to  expansion in Monroe County.  The Company's Ontario
County  retail  deposits  grew  approximately 3.7%, while Monroe County deposits
grew  49.1%  from 1999. The decrease in borrowings is a direct result of deposit
growth.  The  Company  anticipates both loan and deposit growth to continue into
2001,  but  at  a  rate  less  than  2000's.

Results  of  Operations
-----------------------
     With a $97.5 million or 23.1% growth in average earning assets for 2000 and
a  corresponding  $79.1  million  or  22.3%  growth  in average interest bearing
liabilities, net interest income increased $3.7 million or 18.7%.  The Company's
cost of funds increased 50 basis points to 4.23% for the year ended December 31,
2000,  as  compared  to  1999.  This

                                                            Page  22
<PAGE>

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

resulted  from  the  combined factors of an increasing interest rate environment
brought  on  by  the  Federal  Reserve's  Open  Market  Committee  and increased
competitive  pressure  in the Company's market area, particularly Monroe County.
The  yield  on assets increased 31 basis points, resulting in a spread reduction
of  19  basis  points.  As noted in last year's report, management anticipated a
lowering  of  the  interest  rate  spread and interest margin (which declined 17
basis points from 1999) due to the competitive Monroe County market.  This trend
will  likely  continue  through  2001  as  most  of  the Company's new loans and
deposits  are  originated  in  the  Monroe  County  area. Refer to Interest Rate
Sensitivity  and  Asset  /  Liability  Management  Review section for additional
discussion.

     Other  income  for the year ended December 31, 2000, increased $1.7 million
or  22.9%  over  1999.  The  increase  was  reflected  in  all  major sources of
non-interest  revenue.  Service  charges  on  deposit  accounts  rose  33.5%
attributable  to  increased  transaction  volume  and  changes  in  account  fee
structures.  Trust  income grew 19.1%, year on year due, to the growth in assets
under  management.  The  book value of assets under management increased 9.9% to
$645.1 million at year end 2000.  The Company continues to see strong demand for
locally  managed  trust  services  in  its  market  area.
     To  take advantage of the Company's expanded market presence, it opened its
Basin Park Financial Center.  This state-of-the-art space is dedicated to trust,
investment and commercial services.  This new office allows the Company to offer
more  financial  services, while providing a comfortable environment in which to
conduct business.  Its location in Bushnell's Basin was chosen for its proximity
to  the  Company's Ontario County and growing number of Monroe County customers.
     Other  operating  income increased overall, but mortgage banking income was
lower  than  1999's  as  market  rate  increases lowered the demand for mortgage
refinancings.  Loans  originated  for  sale  decreased  34.1%  from  1999.
     Operating  expenses  increased  $4.1  million  or  18.3% for the year ended
December  31,  1999.  Increases  came  in  all major expense categories and were
attributed  to  growth  in the Company's operations, expansion in Monroe County,
and  the  charges  discussed  in  the  "Overview"  section above. Based upon the
projected  growth in banking offices in 2001, operating expenses are expected to
increase  over  2000.  Management  continues  to estimate that the Company's new
banking  offices  will  break  even  after  24  to  36  months  in  operation.
     The  Company's  effective tax rate decreased in 2000 to 25.8% from 27.5% in
1999.  The  primary factor leading to this decrease was the higher percentage of
tax-exempt  income  to  taxable  income.  As  discussed  above,  during  2000,
management  began  reducing  holdings  of  tax-exempt securities due to this low
effective  rate.  Management  anticipates  the effective tax rate to increase in
2001  to  at  least  1999's  level.

Liquidity
---------

     The  Board of Directors has set general liquidity standards for the Bank to
meet  which  can  be  summarized as: the ability to generate adequate amounts of
cash  to  meet  the demand from depositors who wish to withdraw funds, borrowers
who  require  funds, and capital expansion.  Liquidity is produced by cash flows
from  operating,  investing,  and  financing activities of the Company.  For the
year ended December 31, 2000, the Company generated $1.4 million in net cash and
equivalents  versus  $2.6  million  for  the  year  ended  December  31,  1999.

     Net  cash from operating activities was $3.2 million in 2000, a significant
decrease  from  that of 1999.  Both the largest source and use of operating cash
in  2000 and 1999 were mortgage banking activity.  However, activity in 2000 was
much  less  than  1999's.  The  overall decrease in operating cash generation is
attributable  to  lower mortgage banking activities and higher interest accruals
due  to  loan  growth  over  the  last  two  years.



                                                            Page  23
<PAGE>

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

     Cash  used by investing activities decreased substantially in 2000 to $70.0
million  from  $96.5 million in 1999.  This decrease in investing activities was
primarily  a  result  of  lower  loan  growth  than  in  1999.

     Cash  provided  by financing activities was $68.1 million in 2000 versus of
$90.5  million  in  1999.

     The  Company has two primary sources of non-customer (wholesale) liquidity:
the  Federal  Home  Loan Bank of New York (FHLB) and the Federal Reserve Bank of
New York. At December 31, 2000, residential mortgage loans with a carrying value
of  approximately  $18.1  million  were  pledged  as  collateral  for the Bank's
advances  from  the  Federal Home Loan Bank, and an additional $33.5 million was
available  for  pledging.  Indirect  automobile  loans  with a carrying value of
approximately  $90.4 million were pledged as collateral for a $72.3 million line
of  credit  from  the  Federal  Reserve  Bank  of  New  York.

     Secondarily, the Company continues to use the liquidity source time deposit
sales  in  the  national brokered market.  This source will be used from time to
time  to manage both liquidity and interest rate risk as conditions may require.
The  balance of these so-called "brokered deposits" amounted to $32.0 million at
year-end  2000  versus  $10.0  million  at  year  end  1999.

     For  2001,  cash  for  growth  is  expected  to come from both customer and
wholesale  sources.  Customer  deposit  growth  is  mainly expected to come from
Monroe  County  sources.

Interest  Rate  Sensitivity  and  Asset  /  Liability  Management  Review
-------------------------------------------------------------------------
(Item  7a  Quantitative  and  Qualitative  Disclosures  about  Market  Risk)

     The  Company  realizes  income  principally from the differential or spread
between  the  interest  earned on loans, investments and other interest-earnings
assets  and  the  interest  paid  on  deposits  and borrowings. Loan volumes and
yields,  as  well  as  the  volume  of  and  rates  on investments, deposits and
borrowings,  are affected by market interest rates. Additionally, because of the
terms  and  conditions  of  many  of  the  Company's  loan documents and deposit
accounts,  a change in interest rates could also affect the projected maturities
of  the  loan portfolio and/or the deposit base, which could alter the Company's
sensitivity  to  future  changes  in  interest  rates.  Accordingly,  management
considers  interest  rate risk to be the Company's most significant market risk.
     Interest  rate  risk management focuses on maintaining consistent growth in
net  interest  income  within  Board  approved  policy  limits while taking into
consideration,  among  other  factors,  the  Company's overall credit, operating
income,  operating  cost,  and  capital  profile.  The Company's Asset/Liability
Committee  (ALCO),  which includes senior management and reports to the Board of
Directors,  monitors  and  manages  interest rate risk to maintain an acceptable
level of change to net interest income as a result of changes in interest rates.
     Management  of  the  Company's interest rate risk requires the selection of
appropriate  techniques  and  instruments  to  be utilized after considering the
benefits,  costs  and  risks  associated with available alternatives.  Since the
Company  does  not  utilize  derivative  financial  instruments,  management's
techniques  usually  consider  one  or more of the following: (1) interest rates
offered  on  products,  (2)  maturity  terms  offered  on products, (3) types of
products  offered,  and  (4)  products available to the Company in the wholesale
market  such  as  advances  from  the  FHLB  and  brokered  CD's.





                                                            Page  24
<PAGE>

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

The  Company  uses an interest margin simulation model as one method to identify
and  manage  its interest rate risk profile. The model is based on expected cash
flows  and  repricing  characteristics  for  all  financial  instruments  and
incorporates  market-based assumptions regarding the impact of changing interest
rates  on  these  financial  instruments over a twelve-month period. Assumptions
based  on  the  historical behavior of deposit rates and balances in relation to
changes  in  interest  rates  are  also  incorporated  into  the  model.  These
assumptions  are  inherently  uncertain  and,  as  a  result,  the  model cannot
precisely  measure  net  interest  income  or  precisely  predict  the impact of
fluctuations  in  interest  rates  on  net  interest income. Actual results will
differ  from  simulated  results  due  to  timing,  magnitude,  and frequency of
interest  rate  changes  as  well as changes in market conditions and management
strategies.
     Using  the  aforementioned  simulation  model,  net  interest  earnings
projections  reflect  a  decrease  when  applying  the  falling  interest  rate
environment  as  of  December  31,  2000  ("Base  Case").  A net interest income
decrease  is  projected as management does not anticipate reducing deposit rates
as  fast  as asset yields will fall.  The table below, which shows the Company's
estimated  net  interest  earnings  sensitivity profile as of December 31, 2000,
assumes  no  changes  in  the  operating environment, but assumes interest rates
increase/decrease immediately (rate shock) and remains unchanged thereafter. The
table  indicates  the  estimated impact on net interest income under the various
interest  rate  scenarios  as  a  percentage  of Base Case earnings projections.
<TABLE>
<CAPTION>



Changes in Interest           Estimated
Rates                    Percentage Change in
(basis points)        Future Net Interest Income
                             12 Months

<S>                   <C>
Base Case                      --
+200                            2%
+100                            1
-100                           (2)
-200                           (5)

</TABLE>


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

     The  following  table  presents  an  analysis  of  the  Company's  interest
rate-sensitivity gap position at December 31, 2000.  All interest-earning assets
and  interest-bearing  liabilities  are  shown  based  on  the  earlier of their
contractual  maturity  or  repricing  date  with  no  adjustment  for  estimated
prepayment  and  decay  rates.  It  should  be  noted  that  the  interest  rate
sensitivity  levels shown in the table could be changed by external factors such
as  loan  prepayments  and  liability  decay  (withdrawal)  rates  or by factors
controllable  by  the  Company  such  as  asset  sales.












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


<TABLE>
<CAPTION>


                             Canandaigua National Corporation
                              Interest Rate Sensitivity Gap
                                    December 31, 2000
                                  (Dollars in thousands)


                                 Maturity/Repricing Period
                                ---------------------------
                                    Within 3    4 to 12    1 to 5    Over 5
                                     Months     Months      Years    Years
                                   ----------  --------  ---------  --------
<S>                             <C>            <C>        <C>       <C>
Interest-earning assets:
Interest-bearing deposits
  and federal funds sold        $         97         --        --       --
Securities                            19,892     14,919    37,941   11,993
Loans                                117,193     50,692   257,657   34,429
                                ------------  ---------  --------  -------
Total interest-earnings assets       137,182     65,611   295,598   46,422
                                ------------  ---------  --------  -------

Interest-bearing liabilities:
NOW accounts                          53,665         --        --       --
Money market                          55,275         --        --       --
Savings                              107,700         --        --       --
Time deposits                        138,434     54,937    36,301       --
Borrowings                            11,518         18       144      964
                                ------------  ---------  --------  -------
Total interest-bearing
liabilities                          366,592     54,955    36,445      964
                                ------------  ---------  --------  -------

Interest rate sensitivity gap   $   (229,410)    10,656   259,153   45,458
                                ============  =========  ========  =======

Cumulative gap                  $   (229,410)  (218,754)   40,399   85,857
                                ============  =========  ========  =======

Cumulative gap ratio(1)                37.4%      48.1%    108.8%   118.7%
                                ============  =========  ========  =======

Cumulative gap as percent of
  Total assets                        (38.6%)    (36.8%)      6.8%    14.4%
                                ============  =========  ========  =======

<FN>

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

</TABLE>



     The  chart  indicates that the Company was repricing $229.4 million more of
interest-bearing  liabilities  than  interest-earning  assets  in  the 0-3 month
range.  The  Company  considers  this  gap  manageable, as a good portion of the
savings  balances  are  not  considered sensitive to rate changes.  However, the
Company  will  be  challenged  to  maintain its interest margins in 2001 even as
market  rates  decline,  because of local competitive pricing pressure.  For the
4-12  month  period,  the  Company  is asset sensitive, as $10.7 million more of
interest-earning  assets  are  being repriced than interest-bearing liabilities.
For  the  entire  one  year  range, the Company is repricing $218.8 million more
interest  bearing  liabilities  than  assets,  and  is  within Company gap ratio
targets  of  30% to 125%.  Management's efforts to reduce the volume and percent
of  interest  rate  sensitivity  is  showing some success.  The Company is asset
sensitive  at  $259.2  million  for the one-to-five-year range and $45.6 million
over  five  years.

     For  the  entire  portfolio  range, the Company is asset sensitive at $85.9
million  versus asset sensitivity of $76.1 million last year reflecting a modest
growth  in  non-interest- bearing demand accounts.  The Company's product mix is
such  that nearly all assets and liabilities reprice or mature within five years
of  origination,  with  most at three years.  With such a balance sheet profile,
the  Company  faces interest rate risk over the short-term, but the value of its
equity  (assets  less  liabilities)  remains  relatively  stable.

                                                            Page  26
<PAGE>

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

     Interest rates for 2001 are forecasted to continue to fall during the first
half  of  the  year as the Federal Reserve balances economic contraction against
inflation  fears.  Rate  movements  in  the  second  half  of  the year are less
predictable.

Capital  Resources

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

     Quantitative  measures established by regulation to ensure capital adequacy
require  the  Company  and  Bank  to  maintain  minimum  amounts and ratios.  As
disclosed  in  Note  16 to the Consolidated Financial Statements, as of December
31,  2000,  all  capital  adequacy  requirements  were  met.

     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 aforementioned
footnote.  The  Bank's asset growth in 2001 is anticipated to exceed its capital
formation,  which  will result in declining capital ratios.  It is possible  the
Bank's  capital  level  will  be  classified  as "adequate" under the regulatory
framework  rather  than  "well"  by  year end 2001.  Management will continue to
closely  monitor  capital  levels  at  the  Bank.

Dividends

     Payment of dividends by the Bank to the Company is limited or restricted in
certain  circumstances.  According  to  federal banking law, the approval of the
Office  of the Comptroller of the Currency (OCC) is required for the declaration
of  dividends  in any year in which dividends exceed the total of net income for
that  year  plus  retained  income for the preceding two years.  At December 31,
2000,  $1.4 million was available for payment by the Bank to the Company without
the  approval  of  the  OCC.


     Cash  dividends  for 2000 were $1.9 million or $11.90 per outstanding share
versus  $1.8  million  or  $11.50  per  outstanding  share  in  1999.

1999  versus  1998

     The Company accelerated its expansion in the Rochester metropolitan area in
1999.  During that year the Company opened banking offices in Greece, Chili, and
Honeoye  Falls.  The  1999  result  of  this  expansion  was  remarkable for the
Company:  22.0%  growth  in  assets,  27.8%  growth  in  loans,  20.7% growth in
deposits,  and  $3.0  million investment in premises and equipment for these new
offices.  But  this  investment and rapid and planned growth expectedly impacted
1999's financial results with diluted earnings per share of $14.78 versus $22.38
in  1998.




                                                            Page  27

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

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

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

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

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

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

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

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

     Other  real  estate  owned  consisted of three parcels, all commercial, for
$1.6  million. While the balance in the account remained the same, this compared
favorably  to  seven  parcels  in  1998.  The  Company  had  been  successful in
liquidating  its  foreclosed  properties.


                                                            Page  28

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

     In  1999  the Company added approximately $4.0 million in fixed assets with
approximately  $3.0  million  coming  for the new bank offices and the remainder
being  other  building  improvements,  furniture,  equipment  and  software.
     Total  deposits at December 31, 1999, were $454.3 million and were up $77.8
million  from  December  31,  1998. For the same period borrowings from the FHLB
were  up  $15.1  million  to $22.2 million.  Other liabilities increased by $1.2
million  to $3.2 million. Deposit growth since December 31, 1998, came mainly in
interest-bearing  accounts:  savings  and money market up $46.8 million and time
deposits up $31.1 million.  Demand deposit accounts remained unchanged in total,
but there was some shift from interest bearing to non-interest bearing accounts.
Overall, the deposit growth was attributable to expansion in Monroe County.  The
Company's  Ontario  County retail deposits grew approximately 3.6%, while Monroe
County  deposits  grew 178.9% from 1998. The increase in borrowings was a direct
result  of  loan  demand  outpacing  deposit  growth.

Results  of  Operations
-----------------------
     With  a  $41.1  million  or  10.8%  growth in earning assets for 1999 and a
corresponding $44.0 million or 14.2% growth in interest bearing liabilities, net
interest income increased $1.2 million or 6.5% and was reflective of the decline
in  yields  on the assets due to a lower interest rate environment than in 1998.
The  Company's  cost  of  funds  decreased 27 basis points to 3.73% for the year
ended  December  31,  1999,  as  compared to 1998.  However, the yield on assets
decreased  32  basis  points, resulting in a spread reduction of 5 basis points.
Management  anticipated  a  lowering  of  the  interest rate spread and interest
margin  (which declined 19 basis points from 1998) due to the competitive Monroe
County  market.

     Other  income  for the year ended December 31, 1999, increased $1.4 million
or  23.7%  over  1998.  The  increase  was  reflected  in  all  major sources of
non-interest  revenue.  Service  charges  on  accounts  rose 40.8% attributed to
increased transaction volume, changes in account fee structures, and an increase
in  April  of  ATM  convenience  fee for non-Canandaigua National Bank and Trust
Company  customers  to  offset  the  increased cost of operating these machines.
Trust  income  grew  27.3%  year  on  year  due  to  the  growth in assets under
management.  The book value of assets under management increased 38.5% to $586.8
million  at  year  end  1999.  The  Company  continued  to see strong demand for
locally  managed  trust  services  in  its  market  area.
     Operating  expenses  increased  $4.0  million  or  21.7% for the year ended
December  31,  1999.  Increases  came  in  all major expense categories and were
attributed to growth in the Company's operations and expansion in Monroe County.


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

     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 the Company's 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 its financial
condition  or  results  of  operations.



                                                            Page  29
<PAGE>


Item  8.  Financial  Statements  and  Supplementary  Data

     The  consolidated  financial  statements  of  the  Company, together with a
report thereon of KPMG LLP dated February 2, 2001, appearing on pages 7 to 31 of
the  2000 Annual Report to Stockholders are incorporated herein by reference.  A
reference  index to the consolidated financial statements and accompanying notes
presented  in  the  Annual  Report  to  Stockholders is shown in Item 14 of this
filing.

     Supplementary  data:  Selected  Quarterly  Financial  Data
<TABLE>
<CAPTION>


     The  following  tables  present  selected  quarterly financial data for the
Company  for each of the quarters in the years ended December 31, 2000 and 1999.
The  sum  of  each  quarters' earnings per share data might differ from the full
year's  results  due  to  rounding.  (in  thousands  except  share  data)



                               1st      2nd     3rd     4th
                              ------  ------  ------  ------
<S>                           <C>     <C>     <C>     <C>
2000 QUARTERS:
  Net interest income         $5,322  $5,771  $6,081  $6,101
  Provision for loan losses      250     308     270     200
  Non-interest income          1,862   2,141   2,304   2,635
  Non-interest expense         6,092   6,272   6,354   7,769
  Income taxes                   230     260     347     378
                              ------  ------  ------  ------
  Net income                  $  612  $1,072  $1,414  $  389
                              ======  ======  ======  ======
  Basic earnings per share    $ 3.86  $ 6.76  $ 8.92  $ 2.45
  Diluted earnings per share  $ 3.84  $ 6.72  $ 8.87  $ 2.44

</TABLE>



<TABLE>
<CAPTION>




                                1st    2nd     3rd     4th
                              ------  ------  ------  ------
<S>                           <C>     <C>     <C>     <C>
1999 QUARTERS:
  Net interest income         $4,429  $4,643  $5,289  $5,240
  Provision for loan losses       50     446     330     413
  Non-interest income          1,619   1,854   1,585   2,216
  Non-interest expense         5,142   5,548   5,653   6,040
  Income taxes                   275     159     287     175
                              ------  ------  ------  ------
  Net income                  $  581  $  344  $  604  $  828
                              ======  ======  ======  ======
  Basic earnings per share    $ 3.64  $ 2.16  $ 3.80  $ 5.22
  Diluted earnings per share  $ 3.64  $ 2.15  $ 3.79  $ 5.20

</TABLE>


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

     None

PART  III

Item  10.  Directors  and  Executive  Officers  of  the  Registrant

(a)  Directors

     The  information  with  respect  to  the directors of the Company, which is
required  to  be  included  herein  pursuant  to  Item 401 of Regulation S-K, is
included under the caption "Election of Directors" on the Proxy Statement, dated
February  26,  2001,  and  is  incorporated  herein  from the Proxy Statement by
reference.  There are no arrangements or understandings between any director and
any  other  person  pursuant  to  which  the  director  was  selected.





                                                            Page  30
<PAGE>


(b)  Executive  Officers

     The  names,  ages and positions of the executive officers of the Company as
of December 31, 2000, are included under the caption "Principal Officers" on the
Proxy  Statement,  dated  February 26, 2001, and is incorporated herein from the
Proxy  Statement  by  reference.  Officers are generally elected annually by the
Board  of Directors at the meeting of directors immediately following the annual
meeting of stockholders. There are no arrangements or understandings between the
executive officers and any other person pursuant to which the executive officers
were  selected.

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

     Directors  and  the executive officers as a group beneficially owned 13,644
shares  or  8.60% of the shares outstanding.  Shares owned directly total 11,730
and  shares  held  by  directors,  executive  officers,  or  their  spouses in a
fiduciary  capacity  or  by  their  spouses  individually  total  1,914.


(c)  Significant  Employees

     Not  applicable

(d)  Family  Relationship

     The  disclosure  of  family  relationships  between  executive officers and
directors of the Company is included under the caption "Information on Directors
and  Nominees  "  on  the  Proxy  Statement,  dated  February  26,  2001, and is
incorporated  herein  from  the  Proxy  Statement  by  reference.

(e)  Business  Experience

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

(f)  Involvement  in  Certain  Legal  Proceedings

     Not  applicable

(g)  Promoters  and  Controlled  Persons

     Not  applicable


Item  11.  Executive  Compensation

     The  information  required  to  be  included  herein  regarding  executive
compensation  pursuant  to  Item  402  of  Regulation  S-K is included under the
caption  "Executive  Compensation"  on  the  Proxy Statement, dated February 26,
2001,  and  is  incorporated  herein  from  the  Proxy  Statement  by reference.


Item  12.  Security  Ownership  of  Certain  Beneficial  Owners  and  Management

     The information required to be included herein regarding security ownership
and  certain  beneficial owners and management pursuant to Items 403 (a) and (b)
of  Regulation S-K is included under the caption "Principal Beneficial Owners of
Common  Stock"  in  the  Proxy  Statement,  dated  February  26,  2001,  and  is
incorporated  herein  from  the  Proxy  Statement  by  reference.




                                                            Page  31
<PAGE>


(c)  Changes  in  Control

     None

Item  13.  Certain  Relationships  and  Related  Transactions

(a)  Transactions  with  Management  and  Others

     None

(b)  Certain  Business  Relationships

     None

(c)  Indebtedness  of  Management

     Certain  directors  and  executive officers of the Company and the Bank and
their  associates  were  customers  of and had transactions with the Bank in the
ordinary  course  of the Bank's business during 2000.  All outstanding loans and
commitments  included  in  such transactions were made on substantially the same
terms,  including interest rates and collateral, as those prevailing at the time
for  comparable  transactions  with  others,  and in the opinion of the Bank and
Company,  did  not  involve more than a normal risk of collectibility or present
other  unfavorable  features.

(d)  Transactions  with  Promoters

     Not  applicable


PART  IV

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

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

(1)  Consolidated  Financial  Statements  are  contained  in  the Company's 2000
Annual  Report to Shareholders which, as indicated below, is included as Exhibit
13  of  this  report.

     Independent  Auditors'  Report

     Consolidated  Balance  Sheets  as  of  December  31,  2000  and  1999

     Consolidated  Statements  of  Income for the Years Ended December 31, 2000,
          1999  and  1998

     Consolidated  Statements  of  Stockholders'  Equity  for  the  Years  Ended
          December  31,  2000,  1999,  and  1998

     Consolidated  Statements  of  Cash  Flows  for  the  Years  Ended
          December  31,  2000,  1999,  and  1998

     Notes  to  Consolidated  Financial  Statements

(2)  Schedules

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


                                                            Page  32
<PAGE>

 (3.a)  Exhibits

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

(3.i.)    Certificate  of  Incorporation,  of  the     Exhibit  A  on  Form 10-K
            Registrant,  as  amended                 for the year ended December
                                                   31,  1994

(3.ii.)   By-laws  of  the Registrant,                   Exhibits B on Form 10-K
            as  amended                                 for  the  year  ended
                                                       December  31,  1994

 (13)     Annual  Report  to  Shareholders  for
          the  year  ended  December  31,  2000             Page  35

 (20)     Definitive  Proxy  Statement  to
          Shareholders  dated  February  26,  2001         Page  71

 (21)     Subsidiaries                                 Page  84

 (27)     Financial  Data  Schedule                      Page  85


     (b)  Reports  on  Form  8-K:

           None


































                                                            Page  33
<PAGE>

                                 SIGNATURES

Pursuant  to the  requirements  of  Section  13 or 15(d) of the  Securities  and
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its  behalf  by  the  undersigned,  thereunto  duly  authorized.


                                       CANANDAIGUA  NATIONAL  CORPORATION



March  30,  2001                         By:  /s/  George  W.  Hamlin,  IV
                                           George  W.  Hamlin,  IV,  President


<TABLE>
<CAPTION>

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



        Signature                  Title              Date
---------------------------  ------------------  --------------
<S>                          <C>                 <C>
/s/ George W. Hamlin, IV     President/Director  March 30, 2001
---------------------------
(George W. Hamlin, IV)

/s/ Robert G. Sheridan       Secretary/Director  March 30, 2001
---------------------------
(Robert G. Sheridan)

/s/ Gregory S. MacKay        Treasurer           March 30, 2001
---------------------------
(Gregory S. MacKay)

/s/ Patricia A. Boland       Director            March 30, 2001
---------------------------
Patricia A. Boland

/s/ James S. Fralick         Director            March 30, 2001
---------------------------
James S. Fralick

/s/ Daniel P. Fuller         Director            March 30, 2001
---------------------------
Daniel P. Fuller

/s/ David Hamlin, Jr.        Director            March 30, 2001
---------------------------
David Hamlin, Jr.

/s/ Frank H. Hamlin,         Director            March 30, 2001
---------------------------
Frank H. Hamlin

/s/ Stephen D. Hamlin        Director            March 30, 2001
---------------------------
Stephen D. Hamlin

/s/ Richard P. Miller, Jr.   Director            March 30, 2001
---------------------------
Richard P. Miller, Jr.

/s/ Caroline C. Shipley      Director            March 30, 2001
---------------------------
Caroline C. Shipley

/s/ Sue S. Stewart           Director            March 30, 2001
---------------------------
Sue S. Stewart

/s/ Alan J. Stone            Director            March 30, 2001
---------------------------
Alan J. Stone

</TABLE>




                                                            Page  34
<PAGE>

INDEX  OF  EXHIBITS

Exhibit

(3.i.)    Certificate  of  Incorporation,  of the         Exhibit A on Form 10-K
            Registrant,  as  amended                     for  the  year  ended
December
                                                       31,  1994

(3.ii.)   By-laws  of  the Registrant,                   Exhibits B on Form 10-K
            as  amended                                 for  the  year  ended
                                                       December  31,  1994

 (13)     Annual  Report  to  Shareholders  for
          the  year  ended  December  31,  2000

 (20)     Definitive  Proxy  Statement  to
          Shareholders  dated  February  26,  2001

 (21)     Subsidiaries

 (27)     Financial  Data  Schedule










































                                                            Page  35