b"NOTE 14.DEFERRED COMPENSATION PLAN The Bank has a plan pursuant to which a director may elect to waive receipt of all or a portion of their fees for Board of Directors' meetings or committee meetings in exchange for a retirement benefit to be received during a ten-year period after attaining a certain age.The Bank has acquired life insurance on the lives of participating directors to fund its obligation under the plan.The Bank is the owner and sole beneficiary of these policies.The cash surrender value of these life insurance policies has been recorded as an asset and amounted to $2,300,649 at December 31, 2018.The present value of payments to be paid to directors or their beneficiaries for services rendered to date has been recorded as a liability and is included in accrued expenses and other liabilities on the consolidated statement of financial condition.The net expense for these benefits was $195,414 and $147,989 for 2018 and 2017, respectively.The liability to the Bank was $2,064,502 and $2,085,028 at December 31, 2018 and 2017, respectively.NOTE 15.BANK OWNED LIFE INSURANCEDuring the year ended December 31, 2017, the Bank purchased split-dollar life insurance on select employees. Thecash surrender value of these life insurance policies was $4,113,607 and $4,003,349 at December 31, 2018 and 2017, respectively, and has been recorded as an asset on the consolidated statements of financial condition.The Bank is the owner of all policies.The employee can name a beneficiary; however, upon realization of the death benefit, the bank recoups its investment (cash surrender value), with the remainder of the death benefit paid to the employees beneficiary.NOTE 16.SUPPLEMENTAL RETIREMENT PLANS On January 2, 2004, the Bank entered into a nonqualified supplemental retirement benefit agreement with the Banks then-President which when fully vested would pay the President or his beneficiary an amount of $36,000 per year for 10 years beginning February 2013.At December 31, 2018 and 2017, a liability has been established for the present value of the remaining expected payments of $144,424 and $166,115, respectively.For 2018 and 2017, the expense to the Bank to fund this retirement benefit was $14,309 per year.In 2018, the Bank entered into a supplemental employee retirement plan agreement for three executive officers.The plan is a non-qualified defined benefit plan where participants are 100% vested upon attainment of combined age and service equaling 75.The agreements call for fixed payments for 15 years after retirement or certain other events that meet separation of service criteria.At December 31, 2018, a liability has been established for the present value of future payments of $102,322 using a discount rate of 3.6%.For 2018, the expense to the Bank to fund this retirement benefit was $102,322.NOTE 17.HEALTH INSURANCE PLANThe Bank maintains a high deductible health insurance plan and concurrently establishes health reimbursement accounts for each employee in the plan.The Bank funded $750 for each participant in 2018 and 2017.The expense incurred for the health reimbursement accounts was $57,206 and $55,519 for 2018 and 2017, respectively. NOTE 18.INCOME TAXESCNB and its subsidiary, the Bank, file income tax returns in the U.S. federal jurisdiction, State of Maryland and the State of West Virginia.CNB follows the provisions of ASC Topic 740-10, Accounting for Uncertainty in Income Taxes, which provides guidance on accounting for uncertainty in income taxes recognized in an enterprise's financial statements.The guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return, and also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.The Bank follows generally accepted accounting principles, which provides guidance on accounting for uncertainty in income taxes recognized in an organizations financial statements.The Banks policy is to charge penalties and interest to income tax expense as incurred.The tax years before 2012 are no longer subject to examination by federal, state or local taxing authorities.36"