b'evaluation of the customer.Collateral held varies but may include accounts receivable, inventory, real estate, equipment and income-producing commercial properties.Standby letters of credit written are conditional commitments issued by CNB to guarantee the performance of a customer to a third party.Those guarantees are issued to support public and private borrowing arrangements, bond financing and similar transactions.The credit risk involved in issuing a letter of credit is essentially the same as that involved in extending loan facilities to customers.A summary of off-balance sheet instruments as of December 31 is as follows:Contract or notional amount2018 2017Commitments to originate:Fixed rate loans:Residential real estate loans to be sold $976,000 $220,000Other residential real estate561,000 303,500Other commerical real estate and construction750,0001,605,000Adjustable rate loans:Other commerical real estate and construction4,750,0001,708,581Other residential real estate 2,247,4902,281,663Commerical and other 268,000 76,600Letters of credit416,437 977,463Undisbursed portion of constructionloans9,111,7516,549,793Available credit granted on commercial loans13,041,01813,766,254Available credit on personal linesof credit54,209 48,177Undisbursed portion of home equity loans 5,742,1773,516,505$37,918,082 $ 31,053,536 NOTE 22.SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISKCNBs primary business is mortgage loans, which consists of originating residential, construction, multi-family and commercial real estate loans and consumer and commercial loans.CNBs primary lending area is Morgan and Berkeley Counties, West Virginia and Washington County, Maryland.Loans are occasionally made in surrounding counties in West Virginia, Maryland, Virginia and Pennsylvania.CNB also invests in mortgage backed securities and collateralized mortgage obligations.See Note 3:Securities.The Company maintains substantial balances of cash on hand and investments held in safekeeping at corresponding banks.The balances held at the correspondent banks are in excess of the Federal Deposit Insurance Corporation insurance limit.Management considers this to be a normal business risk.NOTE 23.LEGAL CONTINGENCIESVarious legal claims have been asserted or arise from time to time in the normal course of business which, in the opinion of management, will have no material effect on the Banks consolidated financial statements.NOTE 24.REGULATORY MATTERSThe primary source of funds for the dividends paid by CNB Financial Services, Inc. is dividends received from its banking subsidiary.The payment of dividends by banking subsidiaries is subject to various banking regulations.The most restrictive provision requires regulatory approval if dividends declared in any calendar year exceed the total net profits, as defined, of that year plus the retained net profits, as defined, of the preceding two years.At January 1, 2018, CNB has $5,645,000 available for dividends.40'