b'CNB FINANCIAL SERVICES, INC.AND SUBSIDIARYCONSOLIDATED STATEMENTS OF FINANCIAL CONDITIONDECEMBER 31, 2018 AND 2017ASSETS 2018 2017Cash and due from banks $6,925,658 $7,433,677Securities available for sale (at approximate market value) 63,977,136 66,342,156Federal Home Loan Bank (FHLB) stock, at cost 1,340,400 1,212,300Loans and leases receivable, net 300,889,279 271,073,840Lease purchase agreement 1,000,000 1,000,000Accrued interest receivable 1,201,565 1,101,814Foreclosed real estate (held for sale), net191,070135,541Premises and equipment, net 5,591,051 5,270,369Deferred income taxes 1,636,105 1,971,605Cash surrender value of life insurance 6,414,256 6,163,499Other assets 1,925,621 3,221,498 TOTAL ASSETS $391,092,141 $364,926,299 LIABILITIES AND SHAREHOLDERS EQUITYLIABILITIESDeposits:Demand $84,428,497 $75,384,346Interest-bearing demand 82,430,467 70,577,892Savings 55,023,821 53,258,429Time deposits 102,105,812 103,577,166$323,988,597 $302,797,833Accrued interest payable265,442260,888FHLB borrowings26,800,000 23,900,000Accrued expenses and other liabilities 6,986,223 6,520,458 TOTAL LIABILITIES $358,040,262 $333,479,179SHAREHOLDERS EQUITY Common stock, $1 par value; 5,000,000sharesauthorized; 444,976 shares issued at December 31, 2018 and 2017, with 398,465 and 401,045 outstanding at December 31, 2018 and 2017, respectively $ 444,976 $ 444,976 Class A Common stock, $1 par value; 5,000,000 shares authorized; 13,072 shares issued at December 31, 2018and 2017, with 10,501 and 10,809 shares outstanding atDecember 31, 2018 and 2017, respectively13,07213,072Capital surplus 4,163,592 4,163,592Retained earnings 35,198,668 33,188,296Accumulated other comprehensive (loss)(4,174,569)(3,916,244)$35,645,739 $33,893,692 Less treasury stock, at cost, 46,511 common shares and 2,571 Class Acommon shares in 2018 and 43,931 common shares and 2,263 Class A common shares in 2017 (2,593,860)(2,446,572) TOTAL SHAREHOLDERS EQUITY $33,051,879 $31,447,120 TOTAL LIABILITIES AND SHAREHOLDERS EQUITY $391,092,141 $364,926,299The Notes to Consolidated Financial Statements are an integral part of these statements.4'