b'CNB FINANCIAL SERVICES, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF INCOMEYEARS ENDED DECEMBER 31, 2018 AND 20172018 2017INTEREST INCOME Interest and fees on loans $ 13,015,816 $ 11,364,466 Interest and dividends on securities:U.S. Government agencies and corporations137,787154,400Corporate bonds 63,485 68,925Mortgage backed securities 427,791441,205State and political subdivisions 946,210 1,150,173 Dividend income on FHLB stock 68,97431,257 Interest on FHLB deposits 2,684 885 Interest on federal funds sold and deposits 36,20522,461$14,698,952 $ 13,233,772INTEREST EXPENSE Interest on interest bearing demand, savings and time deposits $ 1,911,143 $1,600,007 Interest on federal funds purchased70 5Interest on FHLB borrowings545,317191,661$ 2,456,530 $ 1,791,673 NET INTEREST INCOME $ 12,242,422 $ 11,442,099PROVISION FOR (RECOVERY OF) LOAN LOSSES 201,259 (398,640) NET INTEREST INCOME AFTERPROVISION FOR LOAN LOSSES $ 12,041,163 $ 11,840,739NONINTEREST INCOME Service charges on deposit accounts $1,455,109 $ 1,256,791 Other service charges and fees1,026,636 947,161 Trust fee income485,883 447,577 Other operating income276,672 78,993 Net gain on sales of loans225,001 228,926 Net gain on sales and calls of securities 18,549 189,810 Net gain on sale of other real estate owned 9,37016,021 Net gain (loss) on disposal of premises, equipment and software (1,140)4,121 Net gain on sale of repossessed assets 1,5767,228$3,497,656 $3,176,628NONINTEREST EXPENSES Salaries $ 4,386,018 $ 3,904,495 Employee benefits 1,560,650 1,561,699 Occupancy of premises713,578 848,350 Furniture and equipment expense711,095 651,087 Foreclosure expenses and writedowns68,95736,236 Other operating expenses4,553,643 4,264,893$ 11,993,941 $11,266,760INCOME BEFORE INCOME TAXES $ 3,544,878 $3,750,607PROVISION FOR INCOME TAXES 675,369 1,573,321 NET INCOME $2,869,509 $ 2,177,286EARNINGS PER COMMON SHARE - BASIC AND DILUTED $6.97 $ 5.23EARNINGS PER CLASS A COMMON SHARE - BASIC AND DILUTED $7.66 $ 5.75The Notes to Consolidated Financial Statements are an integral part of these statements.5'