b'CNB FINANCIAL SERVICES, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF INCOMEYEARS ENDED DECEMBER 31, 2019 AND 20182019 2018INTEREST INCOME Interest and fees on loans $14,376,376 $13,015,816 Interest and dividends on securities:U.S. Government agencies and corporations129,442137,787Corporate bonds 63,65063,485Mortgage backed securities 398,409 427,791State and political subdivisions 925,893946,210 Dividend income on FHLB stock 62,110 68,974 Interest on FHLB deposits 5,0592,684 Interest on federal funds sold and deposits123,94136,205$ 16,084,880 $14,698,952INTEREST EXPENSE Interest on interest bearing demand, savings and time deposits $3,180,004 $1,911,143 Interest on federal funds purchased 9 70 Interest on FHLB borrowings333,408 545,317$3,513,421 $ 2,456,530 NET INTEREST INCOME $ 12,571,459 $ 12,242,422PROVISION FOR LOAN LOSSES435,000 201,259 NET INTEREST INCOME AFTERPROVISION FOR LOAN LOSSES $12,136,459 $ 12,041,163NONINTEREST INCOME Service charges on deposit accounts $1,555,261 $1,455,109 Other service charges and fees1,145,6501,026,636 Trust fee income 517,889 485,883 Other operating income 245,651 276,672 Net gain on sales of loans 459,156 225,001 Net gain on sales and calls of securities 413,292 18,549 Net gain on sale of other real estate owned 20,7799,370 Net gain (loss) on disposal of premises, equipment and software (7,543) (1,140) Net gain on sale of repossessed assets-1,576$4,350,135 $ 3,497,656NONINTEREST EXPENSES Salaries $4,569,891 $ 4,386,018 Employee benefits1,581,7731,560,650 Occupancy of premises948,289713,578 Furniture and equipment expense840,324 711,095 Foreclosure expenses and writedowns 89,43668,957 Other operating expenses 4,990,140 4,553,643$13,019,853 $11,993,941INCOME BEFORE INCOME TAXES $ 3,466,741 $ 3,544,878PROVISION FOR INCOME TAXES682,655675,369 NET INCOME $ 2,784,086 $ 2,869,509EARNINGS PER COMMON SHARE - BASIC AND DILUTED $ 6.80 $ 6.97EARNINGS PER CLASS A COMMON SHARE - BASIC AND DILUTED $7.48 $ 7.66The Notes to Consolidated Financial Statements are an integral part of these statements.3'