b'The components of deferred taxes included in the statements of financial condition as of December 31 are as follows:2018 2017Deferred tax assets:Provision for loan losses $ 650,804 $596,729Nonaccrual interest19,224 31,960Deferred compensation plan544,429 542,107Postretirement benefits127,555 152,962SERP benefits26,984 -Intangible asset6,290 19,732Unrecognized pension costs 1,167,4981,172,456OREO writedowns1,851655Net unrealized loss on securities available for sale327,666 203,521AMT tax credit -315,903Deferred loan origination fees76,794 78,143Charitable contributions -33,268Education tax credit- 17,333NOL carryforward- 23,871$2,949,095 $ 3,188,640Deferred tax liabilities:Defined benefit pension plan $ ( 524,090) $ (532,208)Depreciation (269,893) ( 216,519)Deferred loan origination costs( 519,007)(468,308)$ (1,312,990) $(1,217,035)Net deferred tax asset$1,636,105 $ 1,971,605 Generally accepted accounting principles require a valuation allowance against deferred tax assets if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.Management believes that the deferred tax assets will be realized and therefore no valuation allowance was established.NOTE 19.LEASE AGREEMENTCNB leases land in Hancock, Maryland on which its Hancock branch is located.This lease was transferred to CNB from Fidelity Bank, a Maryland commercial bank upon the purchase of the Hancock, Maryland branch.CNB owns the building which is situated on the leased land.The lease, as amended, expired on May 1, 2017 with the lessee having the right to renew the lease for two additional 5-year optional terms for a total optional renewal right of up to 10 years.The Bank exercised the first of two additional 5-year optional terms as of May 1, 2017 with a monthly payment of $2,165 and a 2% annual increase each May.The annual cost for years ended December 31, 2018 and 2017 were $26,323 and $25,695, respectively.The building owned by CNB will revert to and become the property of the lessor in the event of default or termination of the lease.In 2014, CNB entered into a lease for office space in Hagerstown, Maryland for the purpose of opening a new limited purpose office.The original lease term began on January 1, 2015 and terminated on December 31, 2018.The lease automatically renewed January 1, 2019 for another four-year term expiring December 31, 2022.The lease payments prior to renewal were $29,808 annually.The lease payments for the additional four-year term beginning in January 2019 are $30,702 annually.In 2015, CNB entered into a lease for a building in Hagerstown, Maryland for the purpose of opening a full service branch office.The lease term began on October 1, 2015 and will terminate on September 30, 2025.The lessee has 38'