UNITED STATESSECURITIES AND EXCHANGE COMMISSION   Washington, D.C.  20549         FORM 10-K

(Mark One)    X            AnnualReport Pursuant to Section 13 or 15(d) of the                 SecuritiesExchange Act of 1934                 Forthe fiscal year ended December 31, 2004.                                       or                 TransitionReport Pursuant to Section 13 or 15(d) of the                 SecuritiesExchange Act of 1934 [No Fee Required]                 Forthe Transition Period From           to            .                      Commissionfile number 2-96350                              CNBCORPORATION           (Exact nameof registrant as specified in its charter) South Carolina                      57-0792402(State ofincorporation)            (I.R.S.Employer Identification No.)1400 Third Avenue, P.O. Box 320, Conway, SouthCarolina         29528       (Address of Principal executiveoffices)               (ZipCode)     Registrant's telephone number, including areacode: (843) 248-5721        Securities registered pursuantto section 12(b) of the Act:                                       None        Securities registered pursuantto Section 12(g) of the Act:                                                   Title of each class                                Common Stock, par value $10.00 pershare            

     Indicate by check mark whether the registrant (1)has filed all reports required to be filed by Section 13 or 15(d) of theSecurities Exchange Act of 1934 during the preceding 12 months and (2) has beensubject to such filing requirements for the past 90 days. Yes X   No  

     Indicateby check mark if disclosure of delinquent filers pursuant to Item 405 ofRegulation S-K is not contained herein, and will not be contained, to the bestof registrant's knowledge, in definitive proxy or information statementsincorporated by reference in Part III  of this  Form 10-K or anyamendment to this Form 10-K. [  ]

     Indicate by check mark whether the registrant isan accelerated filer (as defined in Rule 12b-2 of the ExchangeAct).  Yes  X .  No ___.

     As of February 28, 2005, 788,617 shares of Common Stock of CNB Corporation were outstanding. Asof June 30, 2004, the last business day of the registrant's most recentlycompleted second fiscal quarter, the aggregate market value of such CommonStock held by nonaffiliates (based upon the price at which stock was sold priorto such date) was approximately $87,952,360.

No Documents have been incorporated by reference.

----

TABLE OF CONTENTSPART I
|                                |                                                                                                               | Page             |
|--------------------------------|---------------------------------------------------------------------------------------------------------------|------------------|
| ITEM 1  ITEM 2  ITEM 3  ITEM 4 | Description of Business    Properties  Legal Proceedings  Submission of Matters to a Vote of Security Holders | 1-23  24  24  25 |

PART II
| ITEM 5  ITEM 6  ITEM 7  ITEM 7A  ITEM 8  ITEM 9  ITEM 9A | Market for the  Registrant's Common Equity, Related  Stock Holder Matters and Issuer Purchases of  Securities  Selected Financial Data  Management's Discussion and Analysis of Financial  Condition and Results of Operations  Quantitative and Qualitative Disclosures About Market  Risk  Financial Statements and Supplementary Data  Changes In and Disagreements on Accounting and  Financial Disclosure  Controls and Procedures | 25  26  26-33  33  34-61  62  62-64 |
|----------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------|

PART III
| ITEM 10  ITEM 11  ITEM 12  ITEM 13  ITEM 14  ITEM 15 | Directors and Executive  Officers of the Registrant  Executive Compensation  Security Ownership of Certain Beneficial Owners  and Management and Related Stockholder Matters  Certain Relationships and Related Transactions  Principal Accountant Fees and Services  Exhibits, Financial Statement Schedules, and Reports  on Form 8-K | 65-69  70-72  73  73  74  75 |
|------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------|
| Signature                                            | 76                                                                                                                                                                                                                                                                                                                                      |

 

----

FORWARD-LOOKING STATEMENTS

Statements included in this report which are not historical in nature areintended to be, and are hereby identified as "forward-looking statements" forpurposes of the safe harbor provided by Section 21E of the Securities ExchangeAct of 1934, as amended. Forward-looking statements include statementsconcerning plans, objectives, goals, strategies, future events or performanceand underlying assumptions and other statements which are other than statementsof historical facts.  Such forward-looking statements may be identified,without limitation, by the use of the words "anticipates," "believes,""estimates," "expects," "intends," "plans," "predicts," "projects," and similarexpressions.  The Company's expectations, beliefs, estimates andprojections are expressed in good faith and are believed by the Company to havea reasonable basis, including without limitation, management's examination ofhistorical operating trends, data contained in the Company's records and otherdata available from third parties, but there can be no assurance thatmanagement's expectations, beliefs, estimates or projections will result or beachieved or accomplished.

The Company cautions readers that forward-looking statements, including withoutlimitation, those relating to the Company's recent and continuing expansion,its future business prospects, revenues, working capital, liquidity, capitalneeds, interest costs, income, and adequacy of the allowance for loan losses,are subject to risks and uncertainties that could cause actual results todiffer materially from those indicated in the forward-looking statements, dueto several important factors herein identified, among others, and other risksand factors identified from time to time in the Company's reports filed withthe Securities and Exchange Commission.

The Company undertakes no obligation to publicly update or revise anyforward-looking statements, whether as a result of new information, futureevents or otherwise.

PART IITEM 1.   Description of BusinessDESCRIPTION OF CNB CORPORATION

CNBCorporation (the "Company") is a South Carolina businesscorporation organized for the purpose of becoming a bank holding company forThe Conway National Bank (the "Bank") under the Bank Holding CompanyAct.  The Company was organized with $500 of capital on March 8, 1985;received approval from the Board of Governors of the Federal Reserve System on May 15, 1985,to become a bank holding company; and on June 10, 1985, acquired, in exchange for its own shares of common stock,substantially all of the common stock of the Bank.  The activities of theCompany are subject to the supervision of the Federal Reserve, and the Companymay engage directly or through subsidiary corporations in those activitiesclosely related to banking which are specifically permitted under the BankHolding Company Act.  See "Supervision and Regulation." Although the Company, after obtaining the requisite approval of the FederalReserve and any other appropriate regulatory agency, may seek to enterbusinesses closely related to banking or to acquire existing businesses alreadyengaged in such activities, the Company has not conducted, and has no presentintent to conduct, negotiations for the acquisition or formation of anyentities to engage in other permissible activities other than the acquisitionof the Bank.

The Company and the Bank compete with those banks and other financialinstitutions that compete with the Bank.  See"Competition."  In addition, if the Company attempts to form oracquire other entities and engage in activities closely related to banking, theCompany will be competing with other bank holding companies, financial holdingcompanies, and companies currently engaged in lines of business or permissibleactivities in which the Company might engage, many of which have far greaterassets and financial resources than the Company and a greater capacity to raiseadditional debt and equity capital than the Company.

1

----

DESCRIPTION OF THE SUBSIDIARY

The Bank is an independent community bank engaged in the general commercialbanking business in Horry and Georgetown  Counties, South Carolina. The Bank was organized on June 5, 1903 as the Bank of Horry located on Main Street in Conway, South Carolina. The Bank became a national bank operating as TheConway National Bank in 1914.   On June 10, 1985, the Bank was reorganized into a bank holding company structure whensubstantially all of the common stock of the Bank was acquired by CNBCorporation in exchange for its own shares of common stock.  In 1960, theBank opened its first additional office at 1400 Third Avenue in Conway. Since that time,  the following offices have been opened: Coastal Centrein Conway, Horry County, (1969); Surfside in Surfside Beach, Horry County,(1971);  Northside, north of Myrtle Beach, Horry County, (1977); Red Hillin Conway, Horry County, (1981); Socastee, in the southern portion of MyrtleBeach, Horry County, (1986); Aynor in the Town of Aynor, Horry County, (1991),Myrtle Beach in the City of Myrtle Beach, Horry County, (1995), West Conway, inConway, Horry County, (1998), Murrells Inlet in Murrells Inlet, GeorgetownCounty, (2000) and North Myrtle Beach in the City of North Myrtle Beach, HorryCounty, (2002). The Surfside office was enlarged in 1977 and 1984, and theCoastal Centre office was expanded in 1980.  The Third Avenue office, which houses the Bank's administrative offices and dataprocessing facilities, was expanded in 1982 from 11,150 square feet to 33,616square feet. The Third Avenue Office was converted into an Operations and Administration Building in 2004 in conjunction with the opening of a 24,000square foot retail banking office, known as The Conway Banking Office, at theBank's principal site.  The Bank employs approximately 232full-time-equivalent employees at its Operations and Administration Building and twelve branch offices.

The Bank performs the full range of normal commercial banking functions. Someof the major services provided include checking accounts, NOW accounts, moneymarket deposit accounts, IRA accounts, Health Savings Accounts, savings andtime deposits of various types and loans to individuals for personal use, homemortgages, home improvement, automobiles, real estate, agricultural purposesand business needs.   Commercial lending operations include varioustypes of credit for business, industry, and agriculture.   In addition,the Bank offers safe deposit boxes, wire transfer services, bank money orders,24-hour teller machines on the STAR Network, internet banking, direct depositsand a MasterCard/Visa program. Through a correspondent relationship the Bankoffers discount brokerage services.  The Bank does not provide trustservices; does not sell annuities; and does not sell mutual funds.

The majority of the Bank's customers are individuals and small to medium-sizedbusinesses headquartered within the Bank's service area.  The Bank has nomaterial concentration of deposits from any single customer or group ofcustomers.  No significant portion of the Bank's loans is concentratedwithin a single industry or group of related industries.  There are nomaterial seasonal factors that would have any adverse effect on the Bank nordoes the Bank rely on foreign sources of funds or income.

COMPETITION

The Bank actively competes with other institutions in Horry Countyand the Waccamaw Neck region of Georgetown County in providing customers with deposit, credit andother financial services.  The principal competitors of the Bank includelocal offices of five regional banks, four state-wide banks, ten locally ownedbanks in Horry and Georgetown Counties and various other financial and thriftinstitutions. The regional banks are Bank of America, RBC Centura, Branch Bankand Trust, Carolina First Savings Bank, and Wachovia, N.A.  The statewidebanks are National Bank of South Carolina, First Citizens Bank and TrustCompany, First Federal Savings Bank, and First Palmetto Savings Bank.  Thelocally owned banks are Anderson Brothers Bank, Coastal Federal Savings Bank,Horry County State Bank, Sandhills Bank, Beach First National Bank, PlantationFederal Savings Bank, Carolina Bank and Trust, Citizens Bank of Olanta,Crescent Bank, and Sunbank, N.A. The Bank also competes with credit unions,money market funds, brokerage houses, insurance companies, mortgage companies,leasing companies, consumer finance companies and other financial institutions.Significant competitive factors include interest rates on loans and deposits,prices and fees for services, office location, customer service, communityreputation, and continuity of personnel.

                                          2

----

SUPERVISION AND REGULATION

General

TheCompany and the Bank are subject to an extensive collection of state andfederal banking laws and regulations which impose specific requirements andrestrictions on, and provide for general regulatory oversight with respect to, virtuallyall aspects of the Company's and the Bank's operations.  The Company andthe Bank are also affected by government monetary policy and by regulatorymeasures affecting the banking industry in general.  The actions of theFederal Reserve System affect the money supply and, in general, the Bank'slending abilities in increasing or decreasing the cost and availability offunds to the Bank.  Additionally, the Federal Reserve System regulates theavailability of bank credit in order to combat recession and curb inflationarypressures in the economy by open market operations in United States government securities, changes in the discount rate on member bankborrowings, and changes in the reserve requirements against bank deposits.

The Company is also subject to limited regulation and supervision by the SouthCarolina State Board of Financial Institutions (the "State Board").  ASouth Carolina bank holding company may be required to provide the State Boardwith information with respect to the financial condition, operations,management and inter-company relationships of the holding company and itssubsidiaries.  The State Board also may require such other information asis necessary to keep itself informed about whether the provisions of South Carolina law and the regulations and orders issued thereunder by the State Boardhave been complied with, and the State Board may examine any bank holdingcompany and its subsidiaries. Furthermore, pursuant to applicable law andregulations, the Company must receive approval of, or give notice to (asapplicable) the State Board prior to engaging in the acquisition of banking ornon-banking institutions or assets.

Obligations of Holding Company to its Subsidiary Banks

A number of obligations and restrictions are imposed on bank holding companiesand their depository institution subsidiaries by Federal law and regulatorypolicies that are designed to reduce potential loss exposure to the depositorsof such depository institutions and to the FDIC insurance funds in the eventthe depository institution is in danger of becoming insolvent or isinsolvent.  For example, under the policy of the Federal Reserve, a bankholding company is required to serve as a source of financial strength to itssubsidiary depository institutions and to commit resources to support suchinstitutions in circumstances where it might not do so absent suchpolicy.  In addition, the "cross-guarantee" provisions of the FederalDeposit Insurance Act, as amended ("FDIA"), require insured depository institutionsunder common control to reimburse the FDIC for any loss suffered or reasonablyanticipated by either the Savings Association Insurance Fund ("SAIF") or theBank Insurance Fund ("BIF") of the FDIC as a result of the default of acommonly controlled insured depository institution or for any assistanceprovided by the FDIC to a commonly controlled insured depository institution indanger of default.  The FDIC may decline to enforce the cross-guaranteeprovisions if it determines that a waiver is in the best interest of the SAIFor the BIF or both.  The FDIC's claim for damages is superior to claims ofstockholders of the insured depository institution or its holding company butis subordinate to claims of depositors, secured creditors and holders of subordinateddebt (other than affiliates) of the commonly controlled insured depositoryinstitutions.

3

----

The FDIA also provides that amounts received fromthe liquidation or other resolution of any insured depository institution byany receiver must be distributed (after payment of secured claims) to pay thedeposit liabilities of the institution prior to payment of any other general orunsecured senior liability, subordinated liability, general creditor orstockholder.  This provision gives depositors a preference over generaland subordinated creditors and stockholders in the event a receiver isappointed to distribute the assets of the bank.

Any capital loans by a bank holding company to any of its subsidiary banks aresubordinate in right of payment to deposits and to certain other indebtednessof such subsidiary bank. In the event of a bank holding company's bankruptcy,any commitment by the bank holding company to a federal bank regulatory agencyto maintain the capital of a subsidiary bank will be assumed by the bankruptcytrustee and entitled to a priority of payment.

Under the National Bank Act, if the capital stock of a national bank isimpaired by losses or otherwise, the OCC is authorized to require payment ofthe deficiency by assessment upon the bank's shareholders, pro rata, and to theextent necessary, if any such assessment is not paid by any shareholder afterthree months notice, to sell the stock of such shareholder to make good thedeficiency. 

Capital Adequacy Guidelines for Bank Holding Companies and Banks

The various federal bank regulators, including the Federal Reserve and theFDIC, have adopted risk-based and leverage capital adequacy guidelinesassessing bank holding company and bank capital adequacy.  These standardsdefine what qualifies as capital and establish minimum capital standards inrelation to assets and off-balance-sheet exposures, as adjusted for creditrisks. The capital guidelines and the Company's capital position are summarizedin Note 15 to the Financial Statements, contained elsewhere in thisreport.  The Bank is considered well capitalized.

Failure to meet capital guidelines could subject the Bank to a variety ofenforcement remedies, including the termination of deposit insurance by theFDIC and a prohibition on the taking of brokered deposits.

The risk-based capital standards of both the Federal Reserve Board and the FDICexplicitly identify concentrations of credit risk and the risk arising fromnon-traditional activities, as well as an institution's ability to manage theserisks, as important factors to be taken into account by the agencies inassessing an institution's overall capital adequacy.  The capitalguidelines also provide that an institution's exposure to a decline in theeconomic value of its capital due to changes in interest rates be considered bythe agencies as a factor in evaluating a bank's capital adequacy.  TheFederal Reserve Board also has recently issued additional capital guidelinesfor bank holding companies that engage in certain trading activities.

Payment of Dividends

The Company is a legal entity separate and distinct from the Bank.  Mostof the revenues of the Company result from dividends paid to the Company by theBank.  There are statutory and regulatory requirements applicable to thepayment of dividends by subsidiary banks as well as by the Company to itsshareholders.

Each national banking association is required by federal law to obtain theprior approval of the OCC for the payment of dividends if the total of all dividendsdeclared by the board of directors of such bank in any year will exceed thetotal of (i) such bank's net profits (as defined and interpreted by regulation)for that year plus (ii) the retained net profits (as defined and interpreted byregulation) for the preceding two years, less any required transfers tosurplus.  In addition, national banks can only pay dividends to the extentthat retained net profits (including the portion transferred to surplus) exceedbad debts (as defined by regulation).

4

----

Thepayment of dividends by the Company and the Bank may also be affected orlimited by other factors, such as the requirements to maintain adequate capitalabove regulatory guidelines.  In addition, if, in the opinion of theapplicable regulatory authority, a bank under its jurisdiction is engaged in oris about to engage in an unsafe or unsound practice (which, depending on thefinancial condition of the Bank, could include the payment of dividends), suchauthority may require, after notice and hearing, that such bank cease anddesist from such practice.  The OCC has indicated that paying dividendsthat deplete a national bank's capital base to an inadequate level would be anunsafe and unsound banking practice.  The Federal Reserve, the OCC and theFDIC have issued policy statements, which provide that bank holding companiesand insured banks should generally only pay dividends out of current operatingearnings.

Certain Transactions by the Company with its Affiliates

Federal law regulates transactions among the Company and its affiliates,including the amount of the Bank's loans to or investments in nonblankaffiliates and the amount of advances to third parties collateralized bysecurities of an affiliate.  Further, a bank holding company and its affiliatesare prohibited from engaging in certain tie-in arrangements in connection withany extension of credit, lease or sale of property or furnishing of services.

FDIC Insurance Assessments

Because the Bank's deposits are insured by the Bank Insurance Fund of the FDIC("BIF"), the Bank is subject to semiannual insurance assessments imposed by theFDIC. Since January 1, 1997, the assessments imposed on all FDIC deposits fordeposit insurance have an effective rate ranging from 0 to 27 basis points per$100 of insured deposits, depending on the institution's capital position andother supervisory factors.  However, legislation enacted in 1996 requiresthat both Savings Association Insurance Fund ("SAIF") insured and BIF insureddeposits pay a pro rata portion of the interest due on the obligations issuedby the Financing Corporation ("FICO").  The FICO assessment is adjustedquarterly to reflect changes in the assessment bases of the respective fundsbased on quarterly Call Report and Thrift Financial Report submissions.

Regulation of the Bank

The Bank is also subject to regulation and examination by the OCC bankexaminers.  In addition, the Bank is subject to various other state andfederal laws and regulations, including state usury laws, laws relating tofiduciaries, consumer credit laws and laws relating to branch banking. The Bank's loan operations are subject to certain federal consumer credit lawsand regulations promulgated thereunder, including, but not limited to: the federal Truth-In-Lending Act, governing disclosures of credit terms toconsumer borrowers; the Home Mortgage Disclosure Act, requiring financialinstitutions to provide certain information concerning their mortgage lending;the Equal Credit Opportunity Act and the Fair Housing Act, prohibitingdiscrimination on the basis of certain prohibited factors in extending credit;the Fair Credit Reporting Act, governing the use and provision of informationto credit reporting agencies; the Bank Secrecy Act, dealing with among otherthings, the reporting of certain currency transactions; and the Fair DebtCollection Act, governing the manner in which consumer debts may be collectedby collection agencies.  The deposit operations of the Bank are subject tothe Truth in Savings Act, requiring certain disclosures about rates paid onsavings accounts; the Expedited Funds Availability Act, which deals withdisclosure of the availability of funds deposited in accounts and thecollection and return of checks by banks; the Right to Financial Privacy Act,which imposes a duty to maintain certain confidentiality of consumer financialrecords and the Electronic Funds Transfer Act and regulations promulgated thereunder,which govern automatic deposits to and withdrawals from deposit accounts andcustomers' rights and liabilities arising from the use of automated tellermachines and other electronic banking services.  The Bank is subject tothe requirements of the Community Reinvestment Act (the "CRA"). 

5

----

TheCRA imposes on financial institutions an affirmative and ongoing obligation tomeet the credit needs of their local communities, including low- andmoderate-income neighborhoods, consistent with the safe and sound operation ofthose institutions. Each financial institution's actual performance in meetingcommunity credit needs is evaluated as part of the examination process, andalso is considered in evaluating mergers, acquisitions and applications to opena branch or facility.

Other Safety and Soundness Regulations

Prompt Corrective Action.  The federal banking agencies have broad powersunder current federal law to take prompt corrective action to resolve problemsof insured depository institutions.  The extent of these powers dependsupon whether the institutions in question are "well capitalized," "adequatelycapitalized," "undercapitalized," "significantly undercapitalized" or"critically undercapitalized."

A bank that is "undercapitalized" becomes subject to provisions of the FederalDeposit Insurance Act restricting payment of capital distributions andmanagement fees; requiring the OCC to monitor the condition of the bank;requiring submission by the bank of a capital restoration plan; restricting thegrowth of the bank's assets and requiring prior approval of certain expansionproposals.  A bank that is "significantly undercapitalized" is alsosubject to restrictions on compensation paid to senior management of the bank,and a bank that is "critically undercapitalized" is further subject torestrictions on the activities of the bank and restrictions on payments ofsubordinated debt of the bank.  The purpose of these provisions is torequire banks with less than adequate capital to act quickly to restore theircapital and to have the OCC move promptly to take over banks that are unwillingor unable to take such steps.

Brokered Deposits.  Under current FDIC regulations, "well-capitalized"banks may accept brokered deposits without restriction, "adequatelycapitalized" banks may accept brokered deposits with a waiver from the FDIC(subject to certain restrictions on payments of rates), while"undercapitalized" banks may not accept brokered deposits.  Theregulations provide that the definitions of "well capitalized", "adequatelycapitalized" and "undercapitalized" are the same as the definitions adopted bythe agencies to implement the prompt corrective action provisions described inthe previous paragraph.

Interstate Banking

Under the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994("Riegle-Neal"), the Company and any other adequately capitalized bank holdingcompany located in South Carolina can acquire a bank located in any otherstate, and a bank holding company located outside South Carolina can acquireany South Carolina-based bank, in either case subject to certain deposit percentageand other restrictions.  Riegle-Neal also provides that, in any state thathas not previously elected to prohibit out-of-state banks from operatinginterstate branches within its territory, adequately capitalized and managedbank holding companies can consolidate their multistate bank operations into asingle bank subsidiary and branch interstate through acquisitions.  Denovo branching by an out-of-state bank is permitted only if it is expresslypermitted by the laws of the host state.  The authority of a bank toestablish and operate branches within a state will continue to be subject toapplicable state branching laws.  South  Carolina law was amended, effectiveJuly 1, 1996, to permit such interstate branching but not denovo branching by an out-of-state bank. 

The Riegle-Neal Act, together with legislation adopted in South Carolina, resulted in a number of South  Carolina banks being acquired bylarge out-of-state bank holding companies.  Size gives the larger bankscertain advantages in competing for business from larger customers.  Theseadvantages include higher lending limits and the ability to offer services inother areas of South Carolina and the region.  As a result, the Bank doesnot generally attempt to compete for the banking relationships of largecorporations, but concentrates its efforts on small to medium-sized businessesand on individuals.  The Company believes the Bank has competedeffectively in this market segment by offering quality, personal service.

6

----

Gramm-Leach-BlileyAct

The Gramm-Leach-Bliley Act, which makes it easier for affiliations betweenbanks, securities firms and insurance companies to take place, became effectivein March 2000.  The Act removes Depression-era barriers that had separatedbanks and securities firms, and seeks to protect the privacy of consumers'financial information.

Under provisions of the legislation and regulations adopted by the appropriateregulators, banks, securities firms and insurance companies are able tostructure new affiliations through a holding company structure or through afinancial subsidiary. The legislation creates a new type of bank holdingcompany called a "financial holding company" which has powers much moreextensive than those of standard holding companies.  These expanded powersinclude authority to engage in "financial activities," which are activitiesthat are (1) financial in nature; (2) incidental to activities that arefinancial in nature; or (3) complementary to a financial activity and that donot impose a safety and soundness risk.  Significantly, the permittedfinancial activities for financial holding companies include authority toengage in merchant banking and insurance activities, including insuranceportfolio investing.  A bank holding company can qualify as a financialholding company and expand the services it offers only if all of its subsidiarydepository institutions are well-managed, well-capitalized and have received arating of "satisfactory" on their last Community Reinvestment Act examination.

The legislation also creates another new type of entity called a "financialsubsidiary."  A financial subsidiary may be used by a national bank or agroup of national banks to engage in many of the same activities permitted fora financial holding company, though several of these activities, including realestate development or investment, insurance or annuity underwriting, insuranceportfolio investing and merchant banking, are reserved for financial holdingcompanies.  A bank's investment in a financial subsidiary affects the wayin which the bank calculates its regulatory capital, and the assets andliabilities of financial subsidiaries may not be consolidated with those of thebank.  The bank must also be certain that its risk management proceduresare adequate to protect it from financial and operational risks created both byitself and by any financial subsidiary.  Further, the bank must establishpolicies to maintain the separate corporate identities of the bank and itsfinancial subsidiary and to prevent each from becoming liable for theobligations of the other.

The Act also establishes the concept of "functional supervision," meaning thatsimilar activities should be regulated by the same regulator. Accordingly, the Act spells out the regulatory authority of the bank regulatoryagencies, the Securities and Exchange Commission and state insurance regulatorsso that each type of activity is supervised by a regulator with correspondingexpertise.  The Federal Reserve Board is intended to be an umbrellasupervisor with the authority to require a bank holding company or financialholding company or any subsidiary of either to file reports as to its financialcondition, risk management systems, transactions with depository institutionsubsidiaries and affiliates, and compliance with any federal law that it hasauthority to enforce.

Although the Act reaffirms that states are the regulators for insuranceactivities of all persons, including federally-chartered banks, the Actprohibits states from preventing depository institutions and their affiliatesfrom conducting insurance activities.

The Act also establishes a minimum federal standard of privacy to protect theconfidentiality of a consumer's personal financial information and gives theconsumer the power to choose how personal financial information may be used byfinancial institutions.

7

----

TheAct and the regulations adopted pursuant to the Act create new opportunitiesfor the Company to offer expanded services to customers in the future, thoughthe Company has not yet determined what the nature of the expanded servicesmight be or when the Company might find it feasible to offer them.  TheAct has increased competition from larger financial institutions that arecurrently more capable than the Company of taking advantage of the opportunityto provide a broader range of services. However, the Company continues tobelieve that its commitment to providing high quality, personalized service tocustomers will permit it to remain competitive in its market area.

Sarbanes-Oxley Act of 2002

The Sarbanes-Oxley Act was signed into law on July 30, 2002, andmandated extensive reforms and requirements for public companies.  The SEChas adopted extensive new regulations pursuant to the requirements of theSarbanes-Oxley Act.  The Sarbanes-Oxley Act and the SEC's new regulationshave increased the Company's cost of doing business, particularly its fees forinternal and external audit services and legal services, and the law andregulations are expected to continue to do so.  However, the Company doesnot believe that it will be affected by Sarbanes-Oxley and the new SECregulations in ways that are materially different or more onerous than those ofother public companies of similar size and in similar business.

Legislative Proposals

Legislation which could significantly affect the business of banking isintroduced in Congress from time to time.  The Company cannot predict thefuture course of such legislative proposals or their impact on the Companyshould they be adopted.

SUPPLEMENTARY FINANCIAL DATAGUIDE 3.   STATISTICAL DISCLOSURE BY BANKHOLDING COMPANIES

The following tables present additionalstatistical information about CNB Corporation and its operation and financialcondition and should be read in conjunction with the consolidated financialstatements and related notes thereto contained elsewhere in this report.

DISTRIBUTION OF ASSETS, LIABILITIES, AND STOCKHOLDERS' EQUITY:INTEREST RATES AND INTEREST DIFFERENTIAL

The tables on the following 3 pages presentselected financial data and an analysis of average balance sheets, averageyield and the interest earned on earning assets, and the average rate paid andthe interest expense on interest-bearing liabilities for the years endedDecember 31, 2004, 2003, and 2002.

8

----

| CNB Corporation and Subsidiary  Average Balances, Yields and Rates  (Dollars in Thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             Assets:    Earning assets:     Loans     Investment securities:      Taxable      Tax-exempt     Federal funds sold and      securities purchased under      agreement to resell           Total earning assets     Other assets        Total assets     Liabilities and stockholder equity:     Interest-bearing liabilities:       Interest-bearing deposits       Federal funds purchased and        securities sold under        agreement to repurchase       Other short-term borrowings          Total interest-bearing           liabilities     Noninterest-bearing deposits     Other liabilities     Stockholders' equity         Total liabilities and           stockholders' equity     Net interest income as a percent       of total earning assets     (1)  Tax-equivalent adjustment       based on a 34% tax rate |   Twelve Months Ended 12/31/04    Average   Interest   Avg.Annual  Balance   Income/     Yield or   Expense(1)    Rate    |
|       $386,899     174,016  23,832        25,732          $610,479    47,166  $657,645         $437,390        29,251  1,097            $467,738118,149  4,058  67,700   $657,645   $610,479                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |       $ 24,351     6,656  1,450        327           $32,784               $  6,578        348  12            $  6,938          $ 25,846    $    493 |       6.29%     3.83   6.08         1.27      5.37                  1.50         1.19   1.09      1.48                     4.23% |
| Ratios:  Annualized return on average total assets  Annualized return on average stockholders' equity  Cash dividends declared as a percent of net income  Average stockholders' equity as a percent of:    Average total assets    Average total deposits    Average loans  Average earning assets as a percent of  average total assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |    1.26%  12.23   40.47      10.29   12.19   17.50      92.83% |

 (2) TheCompany had no out-of-period adjustments or foreign activities.Loan fees of $426 are included in the above interest income.  Loanson a non-accrual basis for the recognition of interest incometotalling $880 as of December 31, 2004 are included in loans forpurpose of this analysis.

9

----

| CNB Corporation and Subsidiary  Average Balances, Yields and Rates  (Dollars in Thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             Assets:    Earning assets:     Loans     Investment securities:      Taxable      Tax-exempt     Federal funds sold and      securities purchased under      agreement to resell           Total earning assets     Other assets        Total assets     Liabilities and stockholder equity:     Interest-bearing liabilities:       Interest-bearing deposits       Federal funds purchased and        securities sold under        agreement to repurchase       Other short-term borrowings          Total interest-bearing           liabilities     Noninterest-bearing deposits     Other liabilities     Stockholders' equity         Total liabilities and           stockholders' equity     Net interest income as a percent       of total earning assets     (1)  Tax-equivalent adjustment       based on a 34% tax rate |   Twelve Months Ended 12/31/03    Average   Interest   Avg.Annual  Balance   Income/     Yield or   Expense(1)    Rate    |
|       $346,110     156,783  25,375        24,111          $552,379    40,292  $592,671         $391,856        28,752  1,389            $421,997101,310  4,714  64,650   $592,671   $552,379                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |       $ 22,565     6,623  1,564        246           $30,998               $  6,877        334  13            $  7,224          $ 23,774    $    532 |       6.52%     4.22   6.16         1.02      5.61                  1.75         1.16   .94      1.71                     4.30% |
| Ratios:  Annualized return on average total assets  Annualized return on average stockholders' equity  Cash dividends declared as a percent of net income  Average stockholders' equity as a percent of:    Average total assets    Average total deposits    Average loans  Average earning assets as a percent of  average total assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |    1.29%  11.86   37.44      10.91   13.11   18.68      93.20% |

2) The Companyhad no out-of-period adjustments or foreignactivities.   Loan fees of $282 are included in the aboveinterestincome.  Loans on a non-accrual basis for the recognition of interestincome totalling $351 as of December 31, 2003 are included in loansfor purpose of this analysis.

10

----

| CNB Corporation and Subsidiary  Average Balances, Yields and Rates  (Dollars in Thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             Assets:    Earning assets:     Loans, net of unearned income     Investment securities:      Taxable      Tax-exempt     Federal funds sold and      securities purchased under      agreement to resell           Total earning assets     Other assets        Total assets     Liabilities and stockholder equity:     Interest-bearing liabilities:       Interest-bearing deposits       Federal funds purchased and        securities sold under        agreement to repurchase       Other short-term borrowings          Total interest-bearing           liabilities     Noninterest-bearing deposits     Other liabilities     Stockholders' equity         Total liabilities and           stockholders' equity     Net interest income as a percent       of total earning assets     (1)  Tax-equivalent adjustment       based on a 34% tax rate |   Twelve Months Ended 12/31/02    Average   Interest   Avg.Annual  Balance   Income/     Yield or   Expense(1)    Rate    |
|       $309,351     150,050  26,734        23,970          $510,105    36,512  $546,617         $361,907        27,962  3,160            $393,02990,431  4,260  58,897   $546,617   $510,105                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |       $ 22,343     7,493  1,714        377           $31,927               $  8,458        495  115            $  9,068            $ 22,859    $    583 |       7.22%     4.99   6.41         1.57      6.26                  2.34         1.77   3.64      2.31                     4.48% |
| Ratios:  Annualized return on average total assets  Annualized return on average stockholders' equity  Cash dividends declared as a percent of net income  Average stockholders' equity as a percent of:    Average total assets    Average total deposits    Average loans, net of unearned income  Average earning assets as a percent of  average total assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |    1.31%  12.19   37.45      10.77   13.02   19.04      93.32% |

 (2) TheCompany had no out-of-period adjustments or foreign activities.Loan fees of $284 are included in the above interest income.  Loanson a non-accrual basis for the recognition of interest incometotalling $697 as of December 31, 2002 are included in loans, netof unearned income, for purpose of this analysis.

11

----

The table "Rate/Volume VarianceAnalysis" provides a summary of changes in net interest income resulting fromchanges in volume and changes in rate.  The changes in volume are thedifference between the current and prior year's balances multiplied by theprior year's rate.  The changes in rate are the difference between thecurrent and prior year's rate multiplied by the prior year's balance.

CNB Corporation and SubsidiaryRate/Volume Variance AnalysisFor the Twelve Months Ended December 31, 2004 and 2003(Dollars in Thousands)
| Earning Assets:   Loans, Net of unearned    income (2)   Investment securities:    Taxable    Tax-exempt   Federal funds sold and    securities purchased under    agreement to resell   Total Earning Assets   Interest-bearing    Liabilities:   Interest-bearing deposits   Federal funds purchased and    securities sold under    agreement to repurchase   Other short-term borrowings   Total Interest-bearing    Liabilities   Interest-free Funds    Supporting Earning Assets   Total Funds Supporting   Earning Assets   Interest Rate Spread   Impact of Non-interest-    bearing Funds on Net Yield    on Earning Assets   Net Yield on Earning Assets | Average   Volume2004    $386,899   174,016   23,832  25,732   $610,479$437,390   29,251   1,097    467,738    142,741           $610,479 | Average   Volume2003    $346,110   156,783   25,375  24,111   $552,379$391,856   28,752   1,389    421,997    130,382           $552,379 | Yield/Rate2004 (1)    6.29%     3.83%     6.08%  1.27%     5.37%  1.50%     1.19%  1.09%     1.48%               1.14%  3.89%   .34%     4.23%   | Yield/Rate2003 (1)    6.52%     4.22%     6.16%  1.02%     5.61%  1.75%     1.16%   .94%     1.71%               1.31%  3.90%   .40%     4.30%   | Interest     Earned/Paid 2004 (1)     $24,351      6,656      1,450       327      $32,784      $ 6,578      348        12        6,938                   $ 6,938                $25,846    | Interest     Earned/Paid 2003 (1)     $22,565      6,623      1,564       246      $30,998      $ 6,877      334        13        7,224                   $ 7,224                $23,774    | Variance    1,786    33    (114)     81    $ 1,786    $  (299)   14      (1)      (286)              $  (286) | Change    Due to Rate     $(796)   (611)   (20)     60    $(1,367)   $  (980)   8       2       (970)              $  (970) | Change   Due toVolume$2,659    727    (95)    17    $3,308    $  797    6     (3)      800              $  800  | Change   Due to   Rate XVolume$ (77)   (83)   1     4    $(155)   $(116)   -     -     (116)            $(116) |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

(1)  Tax-equivalentadjustment based on a 34% tax rate.(2)  Includes non-accruing loans which does not have a materialeffect on the     Net Yield on Earning Assets.

12

----

CNB Corporation andSubsidiaryRate/Volume Variance AnalysisFor the Twelve Months Ended December 31, 2003 and 2002(Dollars in Thousands)
| Earning Assets:   Loans, Net of unearned    income (2)   Investment securities:    Taxable    Tax-exempt   Federal funds sold and    securities purchased under    agreement to resell   Total Earning Assets   Interest-bearing    Liabilities:   Interest-bearing deposits   Federal funds purchased and    securities sold under    agreement to repurchase   Other short-term borrowings   Total Interest-bearing    Liabilities   Interest-free Funds    Supporting Earning Assets   Total Funds Supporting   Earning Assets   Interest Rate Spread   Impact of Non-interest-    bearing Funds on Net Yield    on Earning Assets   Net Yield on Earning Assets | Average   Volume2003    $346,110   156,783   25,375  24,111   $552,379$391,856   28,752   1,389    421,997    130,382           $552,379 | Average   Volume2002    $309,351   150,050   26,734  23,970   $510,105$361,907   27,962   3,160    393,029    117,076           $510,105 | Yield/Rate2003 (1)    6.52%     4.22%     6.16%  1.02%     5.61%  1.75%     1.16%   .94%     1.71%               1.31%  3.90%   .40%     4.30%   | Yield/Rate2002 (1)    7.22%     4.99%     6.41%  1.57%     6.26%  2.34%     1.77%  3.64%     2.31%               1.78%  3.95%   .53%     4.48%   | Interest     Earned/Paid 2003 (1)     $22,565      6,623      1,564       246      $30,998      $ 6,877      334        13        7,224                   $ 7,224                $23,774    | Interest     Earned/Paid 2002 (1)     $22,343      7,493      1,714       377      $31,927      $ 8,458      495       115        9,068                   $ 9,068                $22,859    | Variance   222    (870)   (150)   (131)   $  (929)   $(1,581)   (161)   (102)    (1,844)              $(1,844) | Change    Due to Rate     $(2,165)   (1,155)   (67)   (132)   $(3,519)   $(2,135)   (171)    (85)    (2,391)              $(2,391) | Change   Due toVolume$2,654    336    (87)     2    $2,905    $  701    14    (64)      651              $  651  | Change   Due to   Rate XVolume$(267)   (51)   4    (1)   $(315)   $(147)   (4)   47     (104)            $(104) |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

(1)  Tax-equivalentadjustment based on a 34% tax rate.(2)  Includes non-accruing loans which does not have a materialeffect on the     Net Yield on Earning Assets.

13

----

INVESTMENTSECURITIES

The goal of the investment policy of the Bank is to provide for management ofthe investment securities portfolio in a manner designed to maximize portfolioyield over the long term consistent with liquidity needs, pledging requirements,asset/liability strategies, and safety/soundness concerns.  Specificinvestment objectives include the desire to: provide adequate liquidity forloan demand, deposit fluctuations, and other changes in balance sheet mix;manage interest rate risk; maximize the institution's overall return; provideavailability of collateral for pledging; and manage asset-qualitydiversification of the bank's assets. During 2003 and 2004, investmentsecurities remained at 32% as a percentage of total assets. Loan demand remainedsolid throughout 2003 and 2004 due to relatively low interest rates andincreasing real estate activity.  At December 31, 2004 and 2003, the Loans/Total Assets ratios were 60.6% and 60.3%,respectively, as compared to 57.2% at December 31, 2002. Investment securities and federal funds sold have correspondinglyrisen and fallen as a percentage of total assets.

Investmentsecurities with a par value of $99,580,000; $85,195,000 and $79,880,000 at December 31, 2004, 2003, and 2002,respectively, were pledged to secure public deposits and for other purposesrequired by law.

The following summaries reflect the book value, unrealized gains and losses,approximate market value, and tax-equivalent yields on investment securities atDecember 31, 2004, 2003, and 2002.
| AVAILABLE FOR SALE                                                                                                                                                                                                                                                                                                                                                                                                   |             December 31, 2004            (Dollars in  Thousands)             Book      Unrealized     Fair             Value   Gains   Losses   Value Yield(1) |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  Federal  agencies      Within one year     One to five years                                                                                                                                                                                                                                                                                                                     | $ 22,082 167,860 189,942                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $   354    883    1,237 | $    -   799     799 | $ 22,436 167,944 190,380 | 5.33%  3.56%  3.76% |
|   State, county and     municipal     Within one year     One to five years     Six to ten years        Mortgage Backed     Over ten years    Other restricted       CRA Qualified        Investment Fund    Total available for sale | 480  11,780   5,234  17,494               1,013                 322  $208,771                                                                                                                                                                                                                                                                                               | 1  450    374    825                 -                 -  $ 2,062 | -  -     -     -              40               -  $  839 | 481  12,230   5,608  18,319                 973                 322  $209,994 | 5.33%  5.85%6.91%6.16%         3.62%            -%  3.96% |
| HELD TO MATURITY     State, county and    municipal     Within one year     One to five years     Six to ten years          Total held to maturity                                                                                                                                                                    | 400  3,477     642     4,519  $  4,519                                                                                                                                                                                                                                                                                                                                                                                                                                     | 4  187     55      246  $   246 | -  -     -       -  $    - | 404  3,664     697     4,765  $  4,765 | 7.49%  7.24%7.25%  7.27%  7.27% |

Tax equivalent adjustment based on a 34% tax rate.

As of the quarter ended December 31, 2004, the Bank did not hold anysecurities of anissuer that exceeded 10% of stockholders' equity.

                                            14

----

INVESTMENT SECURITIES, continued
| AVAILABLE FOR SALE                                                                                                                                                                                                                                                                                                                                                                                                                                     |             December 31, 2003                 (Dollars  in  Thousands)             Book      Unrealized     Fair             Value   Gains   Losses   Value Yield(1) |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  Federal  agencies      Within one year     One to five years                                                                                                                                                                                                                                                                                                                                                       | $ 8,809  149,917  158,726                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | $   174  3,484    3,658 | $    -   273     273 | $  8,983 153,128 162,111 | 4.36%  4.00%  4.02% |  |
|   State, county and     municipal     Within one year     One to five years     Six to ten years     Over ten years        Mortgage Backed     Over ten years    Other restricted       CRA Qualified        Investment Fund    Total available for sale | 185  10,283  6,961     288    17,717               1,071                 311  $177,825                                                                                                                                                                                                                                                                                                           | 1  522  492      4    1,019                 -                 -  $ 4,677 | -  -  -     -       -              19               -  $  292 | 186  10,805  7,453     292    18,736               1,052                 311  $182,210 | 7.03%  5.68%  6.81%5.92%  6.14%         3.59%            -%  4.23% |  |
| HELD TO  MATURITY    Federal agencies     Within one year                                                                                                                                                                                                                                                                                                                                                                     |         $  2,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |        $    55 |       $    - |         $  2,055 |        6.44% |  |
|   State, county and    municipal     Within one year     One to five years     Six to ten years          Total held to maturity                                                                                                                                                                                                                         | 1,562  3,086   1,433     6,081  $  8,081                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 30  227    123      380  $   435 | -  -     -       -  $    - | 1,592  3,313   1,556     6,461  $  8,516 | 6.98%  7.40%6.97%  7.19%  7.01% |  |

(1) Taxequivalent adjustment based on a 34% tax rate.

As of the quarter ended December 31, 2003, theBank did not hold any securities of anissuer that exceeded 10% of stockholders' equity.

15

----

INVESTMENT SECURITIES,continued
| AVAILABLE FOR SALE                                                                                                                                                                                                                                                                                   |             December 31, 2002                   (Dollars  in Thousands)           Book      Unrealized     Fair             Value   Gains   Losses   Value Yield(1) |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  Federal  agencies      Within one year     One to five years     Six to ten years                                                                                                                                                                 | $  9,448   122,681    10,000   142,129                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | $   230    4,885      567    5,682 | $    -     -       -       - | $  9,678   127,566  10,567   147,811 | 5.89%  4.80%  5.96%  4.96% |  |
|   State, county and     municipal     One to five years     Six to ten years    Other restricted       CRA Qualified        Investment Fund    Total available for sale | 8,192   8,722    16,914                 298  $159,341                                                                                                                                                                                                                                                                                                                                                                                                            | 340    551      891                 -  $ 6,573 | -     -       -               -  $    - | 8,532   9,273    17,805                 298  $165,914 | 5.22%6.40%  5.83%            -%  5.05% |  |
| HELD TO  MATURITY    Federal agencies     Within one year     One to five years                                                                                                                                                                              | $  2,000   2,002     4,002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $     8    131      139 | $    -     -       - | $  2,008   2,133     4,141 | 6.38%6.44%  6.41% |  |
|   State, county and    municipal     Within one year     One to five years     Six to ten years          Total held to maturity                                                                       | 2,675  4,592   1,836     9,103  $ 13,105                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 36  296    126      458  $   597 | -  -     -       -  $    - | 2,711  4,888   1,962     9,561  $ 13,702 | 6.18%  6.70%6.60%  6.53%  6.49% |  |

 (1) Tax equivalentadjustment based on a 34% tax rate.As of the quarter ended December 31, 2002, the Bank did not hold anysecurities of anissuer that exceeded 10% of stockholders' equity.

16

----

LOANPORTFOLIOLENDING ACTIVITIES

The Company engages, through the Bank, in a full compliment of lendingactivities, including commercial, consumer, installment and real estate loans.

Real Estate Loans

One of the primary components of the Bank's loanportfolio are loans secured by first or second mortgages on residential andcommercial real estate.  These loans will generally consist of commercialreal estate loans, construction and development loans and residential realestate loans (including home equity and second mortgage loans).  Interestrates may be fixed or adjustable.  The bank seeks to manage credit risk inthe commercial real estate portfolio by emphasizing loans on owner-occupiedoffice and retail buildings where the loan-to-value ratio, established byindependent appraisals, generally does not exceed 80%. In addition, the Banktypically requires personal guarantees of the principal owners of theproperty.  The Bank may also facilitate mortgage loans for sale into thesecondary market, earning a fee, but avoiding the interest rate risk of holdinglong-term, fixed-rate loans. The principal economic risk associated with allloans, including real estate loans, is the creditworthiness of the Bank'sborrowers.  The ability of a borrower to repay a real estate loan willdepend upon a number of economic factors, including employment levels andfluctuations in the value of real estate.  In the case of a real estateconstruction loan, there is generally no income from the underlying propertyduring the construction period, borrowings may exceed the current value of theimprovements to the property, and the developer's personal obligations underthe loan may be limited.  Each of these factors increases the risk ofnonpayment by the borrower.  In the case of a real estate purchase loan,the borrower may be unable to repay the loan at the end of the loan term andmay thus be forced to refinance the loan at a higher interest rate, or, incertain cases, the borrower may default as a result of its inability torefinance the loan.  In either case, the risk of nonpayment by theborrower is increased.  The Bank will also face additional credit risks tothe extent that it engages in making adjustable rate mortgage loans ("ARMs"). In the case of an ARM, as interest rates increase, the borrower's requiredpayments increase periodically, thus increasing the potential fordefault.  The marketability of all real estate loans, including ARMs, isalso generally affected by the prevailing level of interest rates.

Commercial Loans

The Bank makes loans for commercial purposes invarious lines of business.  The commercial loans will include both securedand unsecured loans for working capital (including inventory and receivables),loans for business expansion (including acquisition of real estate andimprovements), and loans for purchases of equipment. When taken, securityusually consists of liens on inventories, receivables, equipment, and furnitureand fixtures.  Unsecured business loans are generally short-term withemphasis on repayment strengths and low debt-to-worth ratios.  Commerciallending involves significant risk because repayment usually depends on the cashflows generated by a borrower's business, and debt service capacity candeteriorate because of downturns in national and local economic conditions. Management generally controls risks by conducting more in-depth and ongoingfinancial analysis of a borrower's cash flows and other financial information.

17

----

LOAN PORTFOLIOLENDING ACTIVITIES (Continued)

Consumer Loans

The Bank makes a variety of loans to individualsfor personal and household purposes, including secured and unsecuredinstallment and term loans, home equity loans and lines of credit and unsecuredrevolving lines of credit such as credit cards.  The secured installmentand term loans to consumers will generally consist of loans to purchaseautomobiles, boats, recreational vehicles, mobile homes and householdfurnishings, with the collateral for each loan being the purchasedproperty.  The underwriting criteria for home equity loans will generallybe the same as applied by the Bank when making a first mortgage loan, asdescribed above, but more restrictive for home equity lines of credit. Consumerloans generally involve more credit risks than other loans because of the typeand nature of the underlying collateral or because of the absence of anycollateral.  Consumer loan repayments are dependent on the borrower'scontinuing financial stability and are likely to be adversely affected by jobloss, divorce and illness.  Furthermore, the application of variousfederal and state laws, including federal and state bankruptcy and insolvencylaws, may limit the amount which can be recovered on such loans in the case ofdefault.  In most cases, any repossessed collateral will not provide anadequate source of repayment of the outstanding loan balance.  Althoughthe underwriting process for consumer loans includes a comparison of the valueof the security, if any, to the proposed loan amount, the Bank cannot predictthe extent to which the borrower's ability to pay, and the value of thesecurity, will be affected by prevailing economic and other conditions.

Loan Approval and Review

The Bank's loan approval policies provide forvarious levels of officer lending authority. When the amount of aggregate loansto a single borrower exceeds an individual officer's lending authority, theloan request will be considered and approved by an officer with a higherlending limit or by the Credit Committee as established by the Board ofDirectors. The Loan Committee of the Board of Directors determines the lendinglimits for the Bank's loan officers.  The Bank has an in-house lendinglimit to a single borrower of 10% of capital.  An unsecured limit(aggregate) for the Bank is set at 100% of total capital. 

CLASSIFICATION OF LOANS

The following is a summary of loans, in thousandsof dollars, at December 31, 2004, 2003, 2002, 2001, and 2000 by majorclassification:
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   2004                                                                                                                                                                                  |   2003                                                                                                                                                                                  |   2002                                                                                                                                                                                  |   2001                                                                                                                                                                              |   2000                                                                                                                                                                         |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Real Estate Loans - mortgage                    - construction  Loans to farmers  Commercial and industrial loans  Loans to individuals for household    family and other consumer    expenditures  All other loans, including    Overdrafts    Gross Loans      Less unearned income     Less reserve for loan losses      Net loans | $262,543    39,525     1,582    66,184    35,583   1,566   406,983         0  (5,104)$401,879 | $228,556    44,099     1,537    53,559    32,884   1,399   362,034         0  (4,524)$357,510 | $214,554    28,297     1,674    47,631    31,953   1,513   325,622         0  (4,155)$321,467 | $187,808    28,324     1,316    44,351    32,015   2,800   296,614        (7)  (3,763)$292,844 | $191,329    20,590     1,376    45,929    34,775   1,698   295,697       (49)  (3,782)$291,866 |

MATURITIES AND SENSITIVITY OF LOANS TO CHANGES IN INTEREST RATES

(Thousands of Dollars)

The Company's loan portfolio contained approximately $286,918 and $248,691 infixed rate loans as of December 31, 2004 and 2003, respectively. At December 31, 2004, and 2003, fixed rate loans with maturities in excess of one yearamounted to approximately $228,454 and $196,337, respectively. As of December 31, 2004, fixed rate loans due after one year through five years totaled$156,640 and fixed rate loans due after five years totaled $71,814. Variable rate loans due after one year totaled $55,122.  Variable rateloans are those on which the interest rate can be adjusted to changes in theBank's prime rate.  Fixed rate loans are those on which the interest rategenerally cannot be changed for the term of the loan.

18

----

NONACCRUAL, PAST DUE AND RESTRUCTURED LOANS

The following schedule summarizes the amount of nonaccrual, past due, andrestructured loans, in thousands of dollars, for the periods ended December2004, 2003, 2002, 2001, and 2000:
|                                                                                                                                                                                                                                                                                       |   2004                    |   2003                     |   2002               |   2001               |   2000               |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------|------------------------------------------------|------------------------------------------|------------------------------------------|------------------------------------------|
|    Nonaccrual  loans     Accruing loans which are     contractually past due     90 days or more as to     principal or interest     payments     Restructured troubled debt | $  880  $   93  None | $  351  $   130  None | $  697  $  118  None | $  633  $  138  None | $  305  $  189  None |

Information relating to interest income on nonaccrual and renegotiated loansoutstanding for the year ended December 31, 2004, 2003, and 2002 is asfollows:
|                                                                                                                                                                                                | 2004                 | 2003                      | 2002                 |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------|---------------------------|----------------------|
|    Interest  included in income during the     year     Interest which would have been included     at the original contract rates | $ 28  $ 69 | $  9  $ 26 | $ 19  $ 63 |

Accruing loans which are contractually past due 90 days or more are graded substandardwithin the Bank's internal loan grading system and come under heightenedscrutiny. Typically, a loan will not remain in the 90 days past due category,but will either show improvement or migrate to non-accrual loans.  Loansare placed in a non-accrual status when, in the opinion of management, thecollection of additional interest is questionable. Thereafter no interest istaken into income unless received in cash or until such time as the borrowerdemonstrates the ability to pay principal and interest.

19

----

POTENTIAL PROBLEM LOANS

In addition to those loans disclosed under "Nonaccrual, Past Due, andRestructured Loans", there are certain loans in the portfolio which arepresently current but about which management has concerns regarding the abilityof the borrower to comply with present loan repayment terms.  Managementmaintains a loan review of the total loan portfolio to identify loans wherethere is concern that the borrower will not be able to continue to satisfy presentloan repayment terms.  Such problem loan identification includes thereview of individual loans, loss experience, and economic conditions. Problem loans include both current and past due loans.

As of December 31, 2004, loans which management had serious concernsabout the borrower being able to repay were put into non-accrual status and aredisclosed under "Nonaccrual, Past Due and Restructured Loans".

FOREIGN OUTSTANDINGS

As of the year ended December 31, 2004, the Company had no foreignloans outstanding.

LOAN CONCENTRATIONS

As of the year ended December 31, 2004, the Company did not have anyconcentration of loans exceeding 10% of total loans which are not otherwisedisclosed as a category of loans pursuant to Item III. A. of Guide 3.

OTHER INTEREST-BEARING ASSETS

As of December 31, 2004, the Company does not have any interest‐bearingassets that would be required to be disclosed under Item III. C. 1. or 2. ifsuch assets were loans.

20

----

SUMMARY OF LOAN LOSS EXPERIENCE

ALLOWANCE FOR LOAN LOSSES

The table, "Summary of Loan Loss Experience," summarizes loan balances as ofthe end of each period indicated, averages for each period, changes in theallowance for loan losses arising from charge-offs and recoveries by loancategory, and additions to the allowance which have been charged to expense.

The allowance for loan losses is increased by the provision for loan losses,which is a direct charge to expense.  Losses on specific loans are chargedagainst the allowance in the period in which management determines that suchloans become uncollectible.  Recoveries of previously charged-off loansare credited to the allowance.
|            Year  Ended December   31,             2004     2003      2002     2001     2000  (Thousands of  Dollars)                                                                                                                                                                                                                                                                                                                            |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Loans (net of  unearned income):    Average loans outstanding for    the period  Allowance for loan losses:  Balance at the beginning of period    Charge-offs:      Commercial, financial, and agricultural      Real Estate - construction and mortgage      Loans to individuals       Total charge-offs    Recoveries:     Commercial, financial, and agricultural     Real Estate - construction and mortgage     Loans to individuals       Total recoveries  Net charge-offs  Additions charged to operations  Balance at end of period | $386,899$  4,524281  22     514       817451       196  $    242  $    575  $  1,155  $  5,104 | $346,110$  4,155431  59     392       88211526       150  $    291  $    591  $    960  $  4,524 | $309,351$  3,763412  97     447       95619130       142  $    363  $    593  $    985  $  4,155 | $294,837  $  3,782383  96     470       94910631       168  $    305  $    644  $    625  $  3,763 | $284,431  $  3,451186  134     426       7469219       146  $    257  $    489  $    820  $  3,782 |
|    .15%                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |    .17% |    .19% |    .22% |   .17% |

The allowance for loan losses is maintained at the greater of 1.20% of netloans or an amount based on considerations of classified andinternally-identified problem loans, the current trend in delinquencies, thevolume of past-due loans, and current or expected economic conditions. Inaddition, the Asset/Liability Management Committee and the Loan Committee reviewthe adequacy of the allowance quarterly and make recommendations as to thedesired amount of the allowance.

The Board of Directors maintains an independent Loan Review function which hasestablished controls and procedures to monitor loan portfolio risk on anon-going basis.  Credit reviews on all major relationships are conductedon a continuing basis as is the monitoring of past-due trends and classifiedassets.  The function utilizes various methodologies in its assessment ofthe adequacy of the Allowance for Loan Losses.  Three primary measurementsare reported to the Board of Directors on a quarterly basis, the Graded LoanMethod based on a bank-wide risk grading model, the Migration Analysis Methodwhich tracks risk patterns on charged-off loans for the previous 10 years, andthe Historical Experience Method based on net charge-offs. Additionally,the function annually conducts an independent economic assessment, addressesportfolio risk by industry concentration, reviews loan policy changes and marketingstrategies for any effect on portfolio risk, and conducts tests addressingportfolio performance by type of portfolio, collateral type, and loan officerperformance.

Based upon all relevant factors, Management anticipates net charge-offs will beapproximately $760,000 during 2005.

21

----

DEPOSITS

AVERAGE DEPOSITS BY CLASSIFICATION

The following table sets forth the classification of average deposits for theindicated period, in thousands of dollars:
|                                                                                                                                    |      Years Ended  December 31,        |
|------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|
| Noninterest bearing demand deposits  Interest bearing demand deposits  Savings deposits  Time deposits    Total deposits |    2004   $118,149  72,240  47,998 317,152  $555,539 |    2003  $101,310  63,437  44,899 283,520  $493,166 |    2002   $ 90,431  58,683  32,874 270,350  $452,338 |

AVERAGE RATES PAID ON DEPOSITS

The following table sets forth average rates paid on categories ofinterest-bearing deposits for the periods indicated:
|                                                                   |       Years Ended  December 31,        |
|-------------------------------------------------------------------|----------------------------------------------------------------------------------------------------|
| Interest bearing demand deposits  Savings Deposits  Time deposits |    2004     .29%  1.16%  1.83%                                       |    2003     .29%  1.26%  2.16% |    2002     .30%  1.63%  2.87% |

MATURITIES OF TIME DEPOSITS OF $100,000 OR MORE

The following table sets forth the maturity of time deposits of $100,000 ormore, in thousands of dollars, at December 31, 2004:
|   | Maturity  within 3 months or less  Over 3 through 6 months  Over 6 through 12 months  Over 12 months      Total | $36,977  36,726  15,854  10,485  $100,042 |
|--------|-------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------|

22

----

RETURN ON EQUITY AND ASSETS

The following table presents certain ratios relating to the Company's equityand assets:
|                                                                                                                                                                                                                    |    Years Ended December  31,       |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------|
|    Return on average total assets     Return on average stockholders' equity     Cash dividend payout ratio     Average equity to average assets ratio |   2004    1.26%  12.23%  40.47%  10.29% |   2003    1.29%  11.86%  37.44%  10.91% |   2002    1.31%  12.19%  37.45%  10.77% |

SHORT-TERM BORROWINGS

Federal funds purchased and securities sold under repurchase agreements areshort-term borrowings which generally mature within 90 days from the dates ofissuance.  No other category of short-term borrowings had an averagebalance outstanding during the reported period which represented 30 percent ormore of stockholders' equity at the end of the period.

The following is a summary of federal funds purchased and securities sold underrepurchase agreements at December 31 of each reported period, in thousands ofdollars:

 
|                                                                                                     |         December  31,          |
|-----------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|
| Federal funds purchased    and securities sold under agreement to    repurchase |   2004    $33,950                                                                               |   2003    $24,760 |   2002    $26,219 |

The following information relates to outstanding federal funds purchased andsecurities sold under repurchase agreements during 2004, 2003, and 2002:
|                                                                                                                                                                   | Maximum Amount      Outstanding in Any         Month  End        | Weighted Average    Interest Rate      at December 31,   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|
|   Federal funds     purchased and     securities sold     under agreement     to repurchase | 2004$33,950                                                                                                                                                                    | 2003$32,256                                                                                                | 2002$33,091 | 20041.43% | 2003.96% | 20021.41% |
|                                                                                                                                                                   |                                                                                                                                                                                |                                                                                                            |  |  |  |  |

 
|                                                                                                                                                                                                                                         |   Year ended December 31,   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------|
|   Federal funds purchased and     securities sold under     agreement to repurchase-     average daily amount outstanding     Weighted average interest rate paid | 2004  $29,194   1.19%            | 2003 $28,752   1.13% | 2002  $27,962   1.77% |

23

----

ITEM 2.   PROPERTIES

The Company's subsidiary, The Conway National Bank, has eleven permanentbanking offices in Horry County and one permanent banking office in Georgetown County,for a total of twelve banking offices.  In addition, the Bank has anOperations and Administration Building, located at 1400 Third Avenue in Conway,which houses the Bank's administrative offices and data processingfacilities.  This three-story structure, which was significantly expandedin 1982, contains approximately 33,616 square feet.  Adjacent to theOperations and Administration Building, the Bank opened a new 24,000 squarefoot banking office in 2004, known as the Conway Banking Office, which providesretail banking functions at the Bank's principal site.  In addition, theBank has a 1,450 square foot building for express banking services adjacent tothe Conway Banking Office.  The Bank has a two-story office on Main Streetin Conway containing 8,424 square feet. Bank offices are housed in one-storyfacilities at the Coastal Centre in Conway (3,500 square feet with an adjacent675 square foot building for express banking services), Red Hill in Conway(3,760 square feet) West Conway in Conway (3,286 square feet) Surfside inSurfside Beach (6,339 square feet), Northside, north of Myrtle Beach (2,432square feet), Socastee in the southern portion of Myrtle Beach (3,498 squarefeet), Aynor in The Town of Aynor (2,809 square feet), Myrtle Beach in the Cityof Myrtle Beach (12,000 square feet), Murrells Inlet in Murrells Inlet,Georgetown County (3,600 square feet) and North Myrtle Beach in the City ofNorth Myrtle Beach (3,600 square feet). Of the twelve banking offices and theOperations and Administration Building, the bank owns the Operations and Administration Building, the Conway Banking Office and Express, the banking offices at RedHill, West Conway, Surfside Beach, Northside, Main Street, Socastee, Aynor, Myrtle  Beach, Murrells Inlet and North Myrtle Beach.  One facility, CoastalCentre in Conway, is leased by the Bank under a long-term lease with renewaloptions. In addition to the existing facilities, the Company has purchasedthree future office sites.  The sites consist of 1.1 acres on Highway 701north of Conway, 2.01 acres on Highway 9 west of North Myrtle Beach, and 2.0acres on Highway 17 in Pawleys Island. The company anticipates building abanking office on the Pawleys Island location in 2005 and on the other siteswithin the next two to six years, depending on market conditions. The physicaladdresses of each location are as follows:  The Operations andAdministration Building at 1400 Third Avenue, Conway; Conway Banking Office at1411 Fourth Avenue, Conway; Coastal Centre at 16th Ave., Conway;Main Street at 309 Main Street, Conway; West Conway at Highway 501 & CultraRoad, Conway; Surfside at Highway 17 & 5th Avenue North,Surfside Beach; Northside at 9726 Highway 17 North, Myrtle Beach; Red Hill atHighways 544 & 501, Conway; Socastee at Highway 17 Bypass, South at the"Back Gate", Myrtle Beach; Aynor at 2605 Highway 501, Aynor; Myrtle Beach at1353 21st Avenue North, Myrtle Beach; Murrells Inlet at 4345 Highway17 Bypass, Murrells Inlet; and North Myrtle Beach at 110 Highway 17 North,North Myrtle Beach. 

ITEM 3.   LEGAL PROCEEDINGS

There were no material legal proceedings against the Company or its subsidiary,The Conway National Bank, as of December 31, 2004.

24

----

ITEM4.   SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS

No matters were submitted to a vote of security holders in the fourth quarterof 2004.

PART II

ITEM 5.  MARKET FOR REGISTRANT'S COMMON EQUITY ANDRELATED STOCK HOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

As of December 31, 2004, there were approximately 757 holders of recordof Company stock. There is no established market for shares of Company stockand only limited trading in such shares has occurred since the formation of theCompany on June 10, 1985.  During 2003 and 2004, management was awareof a few transactions in which the Company's common stock traded at the pricesset forth below, adjusted for the effect of a 10% stock dividend paid in2004.  However, management has not ascertained that these transactionsresulted from arm's length transactions between the parties involved, andbecause of the limited number of shares involved, these prices may not beindicative of the value of the common stock.
|                                                                                    | 2004                                     | 2003                                    |
|------------------------------------------------------------------------------------|------------------------------------------|-----------------------------------------|
| First  Quarter  Second Quarter  Third  Quarter  Fourth Quarter | High  $128.18  $131.82  $131.82  $133.00 | Low  $128.18  $128.18  $131.82  $132.00 | High  $105.45  $112.73  $112.73  $128.18 | Low  $105.45  $105.45  $112.73  $112.73 |
|                                                                                    |                                          |                                         |  |  |

Holders of shares of Company stock are entitled tosuch dividends as may be declared from time to time by the Board of Directorsof the Company. The Company paid an annual cash dividend, adjusted for theeffect of a 10% stock dividend paid in 2004, of $4.25 per share in 2004 and$3.64 per share in 2003.  In addition, the Company may from time to timepay a stock dividend. The Company paid a 10% stock dividend in September2004.  There can be no assurance, however, as to the payment of dividendsby the Company in the future since payment will be dependent upon the earningsand financial condition of the Company and the Bank and other relatedfactors.  The Company's primary source of funds with which to paydividends is dividends paid to the Company by the Bank.  There are legalrestrictions on the Bank's ability to pay dividends.  See "Supervision andRegulation - Dividends" under Item 1, Part I of this Form 10-K for adescription of these legal restrictions.

The information required to be disclosed by Item 201(d) of Regulation S-K isset forth in Item 12 of this Form 10-K.

25

----

ITEM 6. SELECTED FINANCIAL DATACNB CorporationFINANCIAL SUMMARY(All Dollar Amounts, Except Per Share Data, in Thousands)

The following table sets forth certain selected financial data relating to theCompany and subsidiary and is qualified in its entirety by reference to themore detailed financial statements of the Company and subsidiary and notesthereto included elsewhere in this report.
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Year Ended December 31,                                                                                                                                                                                                                                                                             |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Selected Income Statement Data:  Total Interest Income  Total Interest Expense  Net Interest Income  Provisions for Possible Loan Losses  Net Interest Income after Provision    for Possible Loan Losses  Total Other Operating Income  Total Other Operating Expense  Income Before Income Taxes  Income Taxes  Net Income  *Per Share:  Net Income Per Weighted Average    Shares Outstanding  Cash Dividend Paid Per Share  Weighted Average Shares    Outstanding |   2004    $ 32,291   6,938    25,353   1,155  24,198     6,257  18,246    12,209     3,927$  8,282$  10.50  $   4.25   789,006 |   2003    $ 30,466   7,224    23,242     960  22,282     6,117  17,237    11,162     3,497$  7,665$   9.71  $   3.64   789,290 |   2002    $ 31,344   9,068    22,276     985  21,291     5,463  16,159    10,595     3,413$  7,182$   9.11  $   3.41   788,553 |   2001    $ 33,963  14,822    19,141     625  18,516     5,337  14,606     9,247     2,812$  6,435$   8.18  $   3.18   786,080 |   2000    $ 34,275  14,825    19,450     820  18,630     4,562  13,961     9,231     2,920$  6,311$   8.02  $   3.18   787,222 |

*Restated for a 10% stock dividend issued during 2004.
| Selected  Balance Sheet Data:  Assets  Net Loans  Investment Securities  Federal Funds Sold  Deposits:    Non-Interest-Bearing    Interest-Bearing     Total Deposits  Stockholders' Equity | $671,569   401,879   215,827         -  $118,580 441,784  $560,364$ 67,585 | $599,978   357,510   191,575     1,000  $101,684 401,429  $503,113$ 64,623 | $569,490   321,467   180,413    22,000  $100,225 368,084  $468,309$ 61,125 | $505,725   292,844   162,106     3,950  $ 88,995 321,648  $410,643$ 53,996 | $471,076   291,866   131,190     9,875  $ 76,342 314,388  $390,730$ 48,606 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------|

ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIALCONDITION AND RESULTS OF OPERATIONS

"Management's Discussion and Analysis"is provided to afford a clearer understanding of the major elements of theCompany's financial condition, results of operations, liquidity, and capitalresources. The following discussion should be read in conjunction with theCompany's financial statements and notes thereto and other detailed informationappearing elsewhere in this report.  References to dollar amounts in thissection are in thousands, except per share data.

**CRITICAL ACCOUNTING POLICIES**

The Company has adopted  various accounting policies which govern theapplication of accounting principles generally accepted in the United States inthe preparation of the Company's financial statements. The significantaccounting policies of the Company are described in the footnotes to theconsolidated financial statements.

Certain accounting policies involve significant judgments and assumptions bymanagement which have a material impact on the carrying value of certain assetsand liabilities; management considers such accounting policies to be criticalaccounting policies. The judgments and assumptions used by management are basedon historical experience and other factors, which are believed to be reasonableunder the circumstances. Because of the nature of the judgments and assumptionsmade by management, actual results could differ from these judgments and estimateswhich could have a material impact on the carrying values of assets andliabilities and the results of operations of the Company.

The Company believes the allowance for loan losses is a critical accountingpolicy that requires the most significant judgments and estimates used inpreparation of its consolidated financial statements. Refer to the MD&Aunder Provision and Allowance for Loan Losses section for a detaileddescription of the Company's estimation process and methodology related to theallowance for loan losses.

26

----

#### Distribution of Assets and Liabilities

The Company maintains a conservative approach in determining the distributionof assets and liabilities.  Loans increased 11.2% from $325,622 at December 31, 2002 to $362,034 at December 31, 2003; and 12.4% from December 31, 2003 to $406,983 at December 31, 2004.  Loan growth is attributed to overallbusiness development efforts to meet business and personal loan demand in ourmarket area. Loan demand in our market area has remained solid in 2003 and 2004in part due to overall lower interest rates coupled with a strong coastal realestate market.  Loans increased as a percentage of total assets from 57.2%at year-end 2002 to 60.3% at year-end 2003 and increased to 60.6% at year-end2004.  Correspondingly, investment securities and federal funds solddecreased as a percentage of total assets from 35.5% at year-end 2002 to 32.1%at year-end 2003 and year-end 2004. Investments and federal funds sold providefor an adequate supply of secondary liquidity.  Year-end other assets as apercentage of total assets has remained relatively constant over the previousthree years.  Management has sought to build the deposit base with stable,relatively non-interest-rate sensitive deposits by offering the small to mediumaccount holders a wide array of deposit instruments at competitive rates.Non-interest-bearing demand deposits have increased slightly as a percentage oftotal assets from 17.6% at December 31, 2002 to 17.7% at December 31, 2004.  Demand deposits are expected to decline over the long-term as more customersutilize interest-bearing deposit and repo accounts. Interest-bearingliabilities as a percentage of total assets have risen from 70.4% at December 31, 2002 to 71.3% at December 31, 2004.

The following table sets forth the percentage relationship to total assets ofsignificant components of the Company's balance sheet as of December 31, 2004, 2003 and 2002:
| Assets:     Earning assets:       Loans        Investment securities:       Taxable       Tax-exempt       Federal funds sold and securities purchased         under agreement to resell          Total earning assets       Other assets          Total assets                                                                                                                                                                                                  |        December 31,        2004     2003    2002  |                                                                                                                 |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------|
| 60.6%  28.7   3.4     -  92.7     7.3   100.0%                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 60.3%  27.8   4.1    .2  92.4     7.6   100.0%                                                           | 57.2%  26.9   4.7   3.9  92.7     7.3   100.0%                |
| Liabilities and stockholder's equity:       Interest-bearing liabilities:         Interest-bearing deposits         Federal funds purchased and securities  sold          under agreement to resell         Other short-term borrowings          Total interest-bearing  liabilities       Noninterest-bearing deposits       Other liabilities       Stockholders' equity        Total liabilities and stockholders'  equity | 65.8%  5.1    .4    71.3  17.7   1.0  10.0   100.0%                                                 | 66.9%  4.1    .2    71.2  16.9   1.1  10.8   100.0% | 64.6%  4.6   1.2    70.4  17.6   1.3  10.7   100.0% |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                 |                                                                                                                 |  |  |

27

----

**Results ofOperation**

CNB Corporation and subsidiaryrecognized earnings in 2004, 2003 and 2002 of $8,282, $7,665, and $7,182,respectively, resulting in a return on average assets of 1.26%, 1.29%, and1.31% and a return on average stockholders' equity of 12.23%, 11.86% and12.19%. The earnings were primarily attributable to favorable net interestmargins in each period (see Net Income-Net Interest Income). Other factorsinclude management's ongoing effort to maintain other income at adequate levels(see Net Income ‐ Other Income) and to control other expenses (see Net Income- Other Expenses).  These strong earnings, coupled with a conservativedividend policy, have supplied the necessary capital funds to support bankoperations. Total assets were $671,569 at December 31, 2004 as compared to $599,978 at December 31, 2003 and $569,490 at December 31, 2002. The following table sets forththe financial highlights for fiscal years 2004, 2003, and 2002.

28

----

**CNB Corporation and SubsidiaryFINANCIAL HIGHLIGHTS(All Dollar Amounts, Except Per Share Data, in Thousands)**
| Net interest income after provision       for loan losses  Income before income taxes  Net Income  *Per Share (weighted average    of shares outstanding)  Cash dividends declared    *Per Share  Total assets  Total deposits  Loans  Investment securities  *Stockholders' equity      Book value per share     (actual number of shares      outstanding)  *Adjusted for the effect of a 10% stock     dividend  paid in 2004.  Ratios (1):  Return on average total assets  Return on average stockholders'    equity | December 31,    2004                                                                                                                                                                                                            |  2003   to   2004  Percent  Increase  (Decrease)                                                                                                       | December 31,   2003                                                                                                                                                                                                         |  2002   to   2003  Percent  Increase  (Decrease)                                                                                                       | December 31,   2002 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|
| $ 24,198  12,209  8,282  $  10.50  3,352  $   4.25  $671,569  560,364  406,983  215,827  67,585  $  85.70  1.26%  12.23%                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 8.6%   9.4    8.0    8.1    16.8    16.8    11.9%   11.4    12.4    12.7    4.6    4.7    (2.3)   3.1   | $ 22,282  11,162  7,665  $   9.71  2,870  $   3.64  $599,978  503,113  362,034  191,575  64,623  $  81.89  1.29%  11.86% | 4.7%   5.4    6.7    6.6    6.7    6.7    5.4%   7.4    11.2    6.2    5.7    5.7    (1.5)   (2.7)  | $ 21,291  10,595  7,182  $   9.11  2,690  $   3.41  $569,490  468,309  325,622  180,413  61,125  $  77.47  1.31%  12.19% |                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                      |                                                                                                                                                                       |                                                                                                                                                                                                                             |                                                                                                                                                                       |                     |  |  |  |  |  |

(1)  For the fiscal years ended December 31, 2004, 2003, and 2002, average total assets amounted to $657,645, $592,671, and $546,617with average stockholders'equity totaling $67,700, $64,650, and $58,897,respectively.

29

----

##### **NET INCOME**

Net Interest Income - Earnings are dependent to a large degree on net interestincome, defined as the difference between gross interest and fees earned onearning assets, primarily loans and investment securities, and interest paid ondeposits and borrowed funds.  Net interest income is affected by theinterest rates earned or paid and by volume changes in loans, investmentsecurities, deposits, and borrowed funds.

The Bank maintained net interest margins in 2004, 2003 and 2002 of 4.2%, 4.3%,and 4.5%, respectively, as compared to management's long-term target of 4.5%.Net interest margins have compressed due to historically low market interestrates lowering returns available on loans and investments while interest costson liabilities did not decline as quickly due to competitive pressure. Fully-tax-equivalent net interest income grew from $19,621 in 2001 to $22,859in 2002 and to 23,774 in 2003 and $25,846 in 2004. During the three-yearperiod, total fully-tax-equivalent interest income decreased by 2.9% from$31,927 in 2002 to $30,998 in 2003 and increased 5.8% in 2004 to $32,784.Over the same period, total interest expense decreased 20.3% from $9,068 in2002 to $7,224 in 2003 and decreased 4.0% to $6,938 in 2004.Fully-tax-equivalent net interest income as a percentage of average totalearning assets was 4.5% in 2002, 4.3% in 2003 and 4.2% in 2004.

Interest rates paid on deposits and borrowed funds and earned on loans andinvestments have generally followed the fluctuations in market interest ratesin 2004, 2003, and 2002. However, fluctuations in market interest rates do notnecessarily have a significant impact on net interest income, depending on theBank's rate sensitivity position.  A rate sensitive asset (RSA) is anyloan or investment that can be repriced up or down in interest rate within acertain time interval.  A rate sensitive liability (RSL) is an interestpaying deposit or other liability that can be repriced either up or down ininterest rate within a certain time interval. When a proper balance between RSAand RSL exists, market interest rate fluctuations should not have a significantimpact on earnings.  The larger the imbalance, the greater the interestrate risk assumed by the Bank and the greater the positive or negative impactof interest rate fluctuations on earnings. The Bank seeks to manage its assetsand liabilities in a manner that will limit interest rate risk and thusstabilize long-run earning power. The following table sets forth the Bank'sstatic gap rate sensitivity position at each of the time intervalsindicated.  The table illustrates the Bank's rate sensitivity position onspecific dates and may not be indicative of the position at other points intime. Management believes that a rise or fall in interest rates will not materiallyaffect earnings.

# Interest Rate Sensitivity Analysis December 31, 2004(Dollars in Thousands)

|                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 1 Day                                                                                                                                                                                                                                                                                                                                        | 90 Days                                                                                                                                                                                                                                                                    | 180 Days                                                                                                                                                                                                                                                                                            | 365 Days                                                                                                                                                                                                                                                                                                 | Over 1    to  5 Years                                                                                                                                                                                                                                                |   Over  5 Years                                                                                                                                                                                                                                                                                                                                                          |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Rate Sensitive Assets (RSA)    Federal Funds Sold    Investment Securities    Loans (net of non-accruals $880)  Total, RSA  Rate Sensitive Liabilities (RSL)  Deposits:  Certificates of Deposit of     $100,000 or more  All Other Time Deposits  Federal Funds Purchased and    Securities Sold Under    Repurchase Agreements  Total RSL  RSA-RSL  Cumulative RSA-RSL  Cumulative RSA/RSL | $      0         0 120,065  $120,065$      0         0    31,856          $ 31,856  $ 88,209  $ 88,209      3.77 | $      0    15,632  23,506$ 39,138$ 36,977    38,273     2,094          $ 77,344  $(38,206)  $ 50,003      1.46 | $      0    17,015  14,277$ 31,292  36,726    24,770         0          $ 61,496  $(30,204)  $ 19,799      1.12 | $      0    28,204  19,801$ 48,005  15,854    50,122         0          $ 65,976  $(17,971)  $  1,828      1.01 | $      0   147,171 156,640$303,811  10,485    17,017         0          $ 27,502  $276,309  $278,137      2.05 | $      0     6,490  71,814$ 78,304       0         0         0          $      0  $ 78,304  $356,441      2.35 |

                                         30

----

**NET INCOME (continued)**

Provision for Loan Losses - It is the policy of the bank to maintain theallowance for loan losses at the greater of 1.20% of net loans or an amountdeemed necessary to cover potential losses identified during the ongoingin-house problem loan identification process.  The Company includes theprovisions of SFAS No. 114, "Accounting by Creditors for Impairment of aLoan", as amended by SFAS 118, in the allowance for loan losses (see NOTE1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES).  The provision for loanlosses was $1,155 in 2004, $960 in 2003 and $985 in 2002. Net loan charge-offs totalled$575 in 2004, $591 in 2003, and $593 in 2002 with net charge-offs beingcentered in consumer purpose loans during each period.  The allowance forloan losses as a percentage of net loans was 1.27% at December 31, 2004, 1.27% at December 31, 2003, and 1.29% at December 31, 2002. The higher provision during 2004 was due to an increase in the rate ofloan growth.

Securities Transactions - Net unrealized gains/(losses) in the investmentsecurities portfolio were $1,469 at December 31, 2004, $4,820 at December 31, 2003, and $7,170 at December 31, 2002. Themarket value of investment securities has declined due to rising short-term marketrates.  Security gains of $183 and $153 were taken in 2002 and 2003 onsales of $6,199 and $6,376 in short-term available-for-sale securities tosupplement liquidity.  No security gains/(losses) were taken in 2004.

Other Income -  Other income, net of any securities gains/(losses),increased by 13.0% from $5,280 in 2002 to $5,964 in 2003 and grew 4.9% from$5,964 in 2003 to $6,257 in 2004.  Other income rose in 2003 primarily dueto growth in mortgage loan department income.  Mortgage loan activity declinedin 2004, but the Bank experienced strong growth in merchant discount income dueto higher merchant account volumes.

Other Expenses - Other expenses increased by 6.7% from $16,159 in 2002 to$17,237 in 2003 and 5.9% from $17,237 in 2003 to $18,246 in 2004.  Thecomponents of other expenses are salaries and employee benefits of $10,147,$10,961, and $11,359; occupancy and furniture and equipment expenses of $2,134,$2,171, and $2,509; and other operating expenses of $3,878, $4,105, and $4,378 for2002, 2003, and 2004, respectively. The increase in salaries and employeebenefits reflects compensation increases, the increased costs of providingemployee benefits, and an increase from 230 to 232 full-time equivalentemployees over the three-year period. The addition of the North Myrtle BeachOffice in 2002 and the $5.3 million Conway Banking Office in 2004 impactedoccupancy and furniture and equipment expense. Non-interest expense should growin 2005 due to the construction, equipping and staffing of the Pawleys IslandBanking Office.  Also, the Bank expects to expend approximately $1 millionin 2005 for new imaging and data processing equipment and software.  

Income Taxes - Provisions for income taxes increased 2.5% from $3,413 in 2002to $3,497 in 2003 and increased 12.3% from $3,497 in 2003 to $3,927 in 2004. Income tax liability has increased in 2003 and 2004 as income beforeincome taxes has increased 5.4% and 9.4%, respectively.

31

----

**LIQUIDITY**

The bank's liquidity position is primarily dependent on short-term demands forfunds caused by customer credit needs and deposit withdrawals and upon theliquidity of bank assets to meet these needs.  The bank's liquiditysources include cash and due from banks, federal funds sold and short-terminvestments.  In addition, the bank has established federal funds lines ofcredit from correspondent banks; has the ability, on a short-term basis, toborrow funds from the Federal Reserve System; and has a line of credit from theFederal Home Loan Bank of Atlanta (see NOTE 8-LINES OF CREDIT). TheCompany has cash balances on hand of $7,485, $5,282, and $5,719 at December 31,2004, 2003, and 2002 with liabilities, consisting of cash dividends payable, totalling$3,352, $2,870, and $2,690, respectively.  Management feels that liquiditysources are more than adequate to meet funding needs.

**OFF-BALANCE SHEET ARRANGEMENTS**

The Company, through the operations of the Bank, makes contractual commitmentsto extend credit in the ordinary course of business.  These commitmentsare legally binding agreements to lend money to customers of the Bank atpredetermined interest rates for a specified period of time.  In additionto commitments to extend credit, the Bank also issues standby letters of creditwhich are assurances to a third party that they will not suffer a loss if theBank's customer fails to meet its contractual obligation to a thirdparty.  The Bank may also have outstanding commitments to buy/sellsecurities.  At December 31, 2004, the Bank had issued commitments to extend creditof $45.6 million, standby letters of credit of $3.3 million, and no commitmentsto purchase securities (see NOTE 10 to the Consolidated FinancialStatements-FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK). The majority ofthe commitments and standby letters of credit typically mature within one yearand past experience indicates that many of the commitments and standby lettersof credit will expire unused.  However, through its various sources ofliquidity, the Bank believes that it will have the necessary resources to meetthese obligations should the need arise.

Neither the Company nor the Bank is involved in other off-balance sheetcontractual relationships, unconsolidated related entities that haveoff-balance sheet arrangements, or transactions that could result in liquidityneeds or other commitments or significantly impact earnings.

Obligations under noncancelable operating lease agreements totaled $25 thousandat December 31, 2004.  These obligations are payable over severalyears as shown in NOTE 11 to the Consolidated Financial Statements -COMMITMENTS AND CONTINGENCIES.

### CAPITAL RESOURCES

Total stockholders' equity was $67,585, $64,623, and $61,125 at December 31, 2004, 2003, and 2002, representing 10.06%, 10.77%, and 10.73% of totalassets, respectively. At December 31, 2004, the Bank exceeded quantitativemeasures established by regulation to ensure capital adequacy (see NOTE 15 tothe Consolidated Financial Statements - REGULATORY MATTERS).  Capital isconsidered sufficient by management to meet current and prospective capitalrequirements and to support anticipated growth in bank operations.

### EFFECTS OF INFLATION

Inflation normally has the effect of accelerating the growth of both a bank'sassets and liabilities.  One result of this inflationary effect is anincreased need for equity capital.  Income is also affected byinflation.  While interest rates have traditionally moved with inflation,the effect on net income is diminished because both interest earned on assetsand interest paid on liabilities vary directly with each other.  In somecases, however, rate increases are delayed on fixed-rate instruments. Loan demand normally declines during periods of high inflation. Inflation has adirect impact on the Bank's non-interest expense. The Bank responds toinflation changes through re-adjusting non-interest income by repricingservices.

32

----

**ACCOUNTINGISSUES**

Accounting standards that have been issued or proposed by the FinancialAccounting Standards Board that do not require adoption until a future date arenot expected to have a material impact on the consolidated financial statementsupon adoption.  (See NOTE 1 to the Consolidated Financial Statements -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ACTIVITIES).

**RISKS AND UNCERTAINTIES**

In the normal course of its business the Company encounters two significanttypes of risks: economic and regulatory.  There are three main componentsof economic risk: interest rate risk, credit risk and market risk.  The Companyis subject to interest rate risk to the degree that its interest-bearingliabilities mature or reprice at different speeds, or on different basis, thanits interest-earning assets.  Credit risk is the risk of default on theCompany's loan portfolio that results from borrower's inability orunwillingness to make contractually required payments.  Market riskreflects changes in the value of collateral underlying loans receivable and thevaluation of real estate held by the Company.

The Company is subject to the regulations of various governmentalagencies.  These regulations can and do change significantly from periodto period.  The Company also undergoes periodic examinations by theregulatory agencies, which may subject it to further changes with respect toasset valuations, amounts of required loss allowances and operatingrestrictions from the regulators' judgments based on information available tothem at the time of their examination.

****ITEM 7.A QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK

Market risk is the risk of loss from adverse changes in market prices andrates. The Company's market risk arises principally from interest rate riskinherent in its lending, deposit and borrowing activities.  Managementactively monitors and manages its interest rate risk exposure.  Inaddition to other risks which the Company manages in the normal course ofbusiness, such as credit quality and liquidity risk, management considersinterest rate risk to be a significant market risk that could potentially havea material effect on the Company's financial condition and results ofoperations (See Net Income - Net Interest Income).  Other types of marketrisks, such as foreign currency risk and commodity price risk, do not arise inthe normal course of the Company's business activities.

****33

----

Item 8.  Financial Statements and SupplementaryData

**CNB CORPORATION AND SUBSIDIARY****REPORTON CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEARS ENDED****DECEMBER 31, 2004****, 2003 AND 2002**-34-

----

***CNB CORPORATION AND SUBSIDIARY******CONWAY******,******SOUTH  CAROLINA***********CONTENTS**
|                                                                                                                                                                                                                                                                                                                                                                                                                       | **PAGE**                             |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                       | ** **                           |
| **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM  FINANCIAL STATEMENTS     **Consolidated balance sheets     Consolidated statements of income     Consolidated statements of stockholders' equity     Consolidated statements of comprehensive income     Consolidated statements of cash flows**NOTES TO FINANCIAL STATEMENTS** | 36 - 38  39  40  41  42  43  44 - 61 |

****-35 -

----

**Elliott Davis, LLCAdvisors-CPAs-Consultants1901 Main Street, Suite 1650P.O. Box 2227Columbia, SC  29202-2227REPORT OF****INDEPENDENTREGISTERED PUBLIC ACCOUNTING FIRM**

The Directors and Stockholders***CNB Corporation***Conway, South Carolina

     We have audited the consolidated balance sheetsof CNB Corporation and subsidiary as of December 31, 2004 and 2003, and therelated consolidated statements of income, stockholders' equity, comprehensiveincome and cash flows for each of the three years in the period ended December 31, 2004.  Thesefinancial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financialstatements based on our audits.

     We conducted our audits in accordance with thestandards of the Public Company Accounting Oversight Board (United States).  Thosestandards require that we plan and perform the audit to obtain reasonableassurance about whether the consolidated financial statements are free ofmaterial misstatement.  An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the consolidated financialstatements.  An audit also includes assessing the accounting principlesused and significant estimates made by management, and evaluating the overallfinancial statement presentation.  We believe that our audits provide areasonable basis for our opinion.

     In our opinion, the consolidated financialstatements referred to above present fairly, in all material respects, the financialposition of CNB Corporation and subsidiary at December 31, 2004 and 2003 andthe results of their operations and their cash flows for each of the threeyears in the period ended December 31, 2004, in conformity with accountingprinciples generally accepted in the United States of America.  

     We have also audited, in accordance with thestandards of the Public Company Accounting Oversight Board (United States), theeffectiveness of CNB Corporation and subsidiary's internal control overfinancial reporting as of December 31, 2004, based on criteria established inInternal Control - Integrated Framework issued by the Committee of SponsoringOrganizations of the Treadway Commission (COSO) and our report dated January26, 2005 which expressed an unqualified opinion.

/s/Elliott Davis, LLC

Columbia, South CarolinaJanuary 26, 2005

-36-

----

**Elliott Davis, LLCAdvisors-CPAs-Consultants1901 Main Street, Suite 1650P.O. Box 2227Columbia, SC  29202-2227REPORT OF****INDEPENDENTREGISTERED PUBLIC ACCOUNTING FIRM**

The Directors and Stockholders***CNB Corporation***Conway, South Carolina

     We have audited management's assessment, includedin the accompanying Report by CNB Corporation's Management on Internal ControlOver Financial Reporting, that CNB Corporation and subsidiary maintainedeffective internal control over financial reporting as of December 31, 2004, based on criteriaestablished in Internal Control - Integrated Framework issued by the Committeeof Sponsoring Organizations of the Treadway Commission (COSO).  CNBCorporation's management is responsible for maintaining effective internalcontrol over financial reporting and for its assessment of the effectiveness ofinternal control over financial reporting. Our responsibility is to express anopinion on management's assessment and an opinion on the effectiveness of thecompany's internal control over financial reporting based on our audit.

     We conducted our audit in accordance with thestandards of the Public Company Accounting Oversight Board (United States).  Thosestandards require that we plan and perform the audit to obtain reasonableassurance about whether effective internal control over financial reporting wasmaintained in all material respects.  Our audit included obtaining an understandingof internal control over financial reporting, evaluating management'sassessment, testing and evaluating the design and operating effectiveness ofinternal control, and performing such other procedures as we considerednecessary in the circumstances.  We believe that our audit provides areasonable basis for our opinion.

     A company's internal control over financialreporting is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statementsfor external purposes in accordance with generally accepted accountingprinciples.  A company's internal control over financial reportingincludes those policies and procedures that (1) pertain to the maintenance of recordsthat, in reasonable detail, accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurancethat transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles, andthat receipts and expenditures of the company are being made only in accordancewith authorizations of management and directors of the company; and (3) providereasonable assurance regarding prevention or timely detection of unauthorizedacquisition, use, or disposition of the company's assets that could have amaterial effect on the financial statements.

-37-

----

     Because of its inherentlimitations, internal control over financial reporting may not prevent ordetect misstatements.  Also, projections of any evaluation ofeffectiveness to future periods are subject to the risk that controls maybecome inadequate because of changes in conditions, or that the degree ofcompliance with the policies or procedures may deteriorate.

     In our opinion, management's assessment that CNBCorporation and subsidiary maintained effective internal control over financialreporting as of December 31, 2004, is fairly stated, in all material respects, based oncriteria established in Internal Control - Integrated Framework issued byCOSO.  Furthermore, in our opinion, CNB Corporation and subsidiary maintained,in all material respects, effective internal control over financial reportingas of December 31, 2004,based on criteria established in Internal Control - Integrated Framework issuedby COSO.

     We have also audited, in accordance with thestandards of the Public Company Accounting Oversight Board (United States), the consolidatedfinancial statements of CNB Corporation and subsidiary and our report dated January 26, 2005 which expressed anunqualified opinion.

/s/Elliott Davis, LLC

Columbia, South CarolinaJanuary 26, 2005

-38-

----

***CNB CORPORATION AND SUBSIDIARYCONSOLIDATED BALANCE SHEETS(amounts, except share data, in thousands)***
| ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | **        December  31,        **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **                                                     *ASSETS*  CASH AND DUE FROM BANKS  FEDERAL FUNDS SOLD  INVESTMENT SECURITIES AVAILABLE FOR SALE  INVESTMENT SECURITIES HELD TO MATURITY**   (fair  value $4,765 in 2004 and $8,516 in 2003)**OTHER INVESTMENTS, AT COST****LOANS     **Less allowance for loan losses        Net loans**PREMISES AND EQUIPMENT  ACCRUED INTEREST RECEIVABLE  OTHER ASSETS                                          *LIABILITIES  AND STOCKHOLDERS' EQUITY*  LIABILITIES     **Deposits        Noninterest-bearing        Interest-bearing           Total deposits     Securities sold under repurchase agreements     United States Treasury demand notes     Dividends payable     Other liabilities           Total liabilities**COMMITMENTS AND CONTINGENT LIABILITIES -**Notes 10 and 11**STOCKHOLDERS' EQUITY     **Common stock - $10 par value; authorized 1,500,000  shares;        issued 789,774 and 718,246 shares in 2004  and 2003, respectively     Capital in excess of par value of stock     Retained earnings     Accumulated other comprehensive income      Less 1,129 in 2004 and 837 in 2003 shares held in Treasury  at cost           Total stockholders'  equity | **     2004      **$   25,793  -     209,994  4,519  1,314  406,983      5,104401,879  17,628  4,682        5,760**$  671,569**$  118,580    441,784560,364  33,950  2,895  3,352        3,423      603,9847,898  43,543  15,558           73467,733           148        67,585**$  671,569** | **     2003    **$  25,021 1,000 182,210 8,081   1,284 362,034     4,524 357,51017,0684,358      3,446**$599,978**  $ 101,684   401,429  503,11324,760970  2,870      3,642  535,3557,182  34,801  20,113       2,63164,727          104       64,623**$ 599,978** |

The accompanying notes are an integral part of these consolidated financialstatements.-39-

----

***CNB CORPORATION ANDSUBSIDIARYCONSOLIDATED STATEMENTS OF INCOME(amounts, except per share data, in thousands)***
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **    For  the years ended December 31,     **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **   INTEREST INCOME**   Loans  and fees on loans     Investment securities        Taxable        Nontaxable           Total interest on  investment securities     Federal funds sold           Total interest income**INTEREST EXPENSE     **Deposits     Securities sold under repurchase agreements     Federal Home Loan Bank advances     United States Treasury demand notes           Total interest expense           Net interest income**PROVISION FOR LOAN LOSSES**         Net interest income  after provision for loan losses**NONINTEREST INCOME**   Service charges on deposit accounts     Other service and exchange charges     Gain on sale of investment securities available for sale           Total noninterest  income**NONINTEREST EXPENSES**   Salaries and wages     Pensions and other employee benefits     Occupancy     Furniture and equipment     Examination and professional fees     Office supplies     Credit card operations     Other operating expenses           Total noninterest  expenses           Income before provision  for income taxes**PROVISION FOR INCOME TAXES**         Net income**NET INCOME PER SHARE OF COMMON STOCK**(1)  (1) Adjusted for effects of 10% stock dividend | **      2004  **** **$   24,351  6,656          9577,613          327       32,2916,578  348  -               12         6,93825,353       1,155       24,1983,504  2,753           -            6,2578,682  2,677  1,130  1,379  447  445  1,228       2,258       18,24612,209       3,927**$     8,282  $     10.50** | **    2003    **$   22,565  6,623       1,0327,655          246       30,4666,877  334  -               13         7,22423,242          960       22,2823,443  2,521         153        6,1178,295  2,666  1,027  1,144  308  507  1,077     2,213     17,23711,162     3,497**$   7,665  $     9.71** | **    2002  **$   22,343  7,493      1,1318,624         377      31,3448,458  495  88            27         9,06822,276          985       21,2913,212  2,068          183         5,4637,761  2,386  940  1,194  346  411  898       2,223       16,15910,595      3,413**$    7,182  $      9.11** |

The accompanyingnotes are an integral part of these consolidated financial statements.-40-

----

***CNB CORPORATION ANDSUBSIDIARYCONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITYFor the years ended******December 31, 2004******, 2003, and 2002(amounts, except share data, in thousands)***
| ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  **Common stock    Shares  Amount**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | **Capital in  excess of  par valueof stock**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | **Retainedearnings **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | **Accumu-  lated  other  compre-  hensive income**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | **Treasury   stock   **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | **Total   stock-  holders'  equity **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ** BALANCE, DECEMBER 31, 2001**   Net  income     Cash dividend declared, $3.75 per share     Treasury stock transactions, net     Gain on sale of treasury stock     Net change in unrealized holding         gain, net of income taxes of $1,672**BALANCE, DECEMBER 31, 2002**   Net income     Cash dividend declared, $4.00 per share     Treasury stock transactions, net     Gain on sale of treasury stock     Net change in unrealized holding         loss, net of income taxes of ($875)**BALANCE, DECEMBER 31, 2003**   Net income     Cash dividend declared, $4.25 per share     10% stock dividend     Cash paid for fractional shares     Treasury stock transactions, net     Gain on sale of treasury stock     Net change in unrealized holding         loss, net of income taxes of ($1,075)**BALANCE, DECEMBER 31, 2004** |    718,246     -     -     -     -              -    718,246     -     -     -     -               -   718,246  -     -     71,528  -     -     -              -    **789,774** |    $ 7,182     -     -     -     -              -     7,182     -     -     -     -              -     7,182  -     -     716  -     -     -             -    **$7,898** |    $34,774      -      -      -      9              -       34,783       -      -      -      18               -    34,801   -      -      8,726   -      -      16              -    **$  43,543 ** |     $ 10,826      7,182   (2,690)  -     -                 -      15,318 7,665   (2,870)  -     -              -     20,113   8,282   (3,352)  (9,442)  (43)  -     -               -    **$15,558** |    $ 1,435      -     -     -     -          2,509        3,944      -     -     -     -      (1,313)     2,631   -     -     -     -     -     -        (1,897)   **$     734 ** |    $  (221)     -     -     119   -                -         (102)     -     -     (2)  -               -       (104)  -     -     -     -     (44)  -               -    **$   (148****)** |    $53,996      7,182   (2,690)  119   9         2,509       61,125      7,665   (2,870)  (2)  18       (1,313)     64,623   8,282   (3,352)  -     (43)  (44)  16       (1,897)   **$ 67,585 ** |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  |

The accompanying notes are an integral part of these consolidated financialstatements.-41-

----

CNBCORPORATION AND SUBSIDIARYCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(amounts in thousands)
|                                                                                                                                                                                                                                                                                           |         For  the years ended December 31,                                                                    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| NET INCOME  OTHER COMPREHENSIVE INCOME, NET OF TAX     Unrealized holding gains (losses) on investment securities        available for sale     Reclassification adjustments for gains included in net  incomeCOMPREHENSIVE INCOME |    2004    $  8,282   (1,897)         -     $   6,385 |     2003      $  7,665   (1,209)     (104)$  6,352  |    2002       $  7,182    2,633     (124)   $ 9,691  |

** **

Theaccompanying notes are an integral part of these consolidated financialstatements.-42-

----

CNB CORPORATION AND SUBSIDIARYCONSOLIDATED STATEMENTS OF CASH FLOWS(amounts in thousands)
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |       For the years ended  December 31,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| OPERATING ACTIVITIES     Net income     Adjustments to reconcile net income to net cash provided        by operating activities        Depreciation and amortization        Provision for loan losses        Provision for deferred income taxes        Loss on disposal of equipment        Gain on sale of investment securities  available for sale        Changes in assets and liabilities:           (Increase) decrease in  accrued interest receivable           Increase in other  assets           Increase (decrease) in  other liabilities              Net  cash provided by operating activitiesINVESTING  ACTIVITIES     Proceeds from sales of investment  securities available for sale     Proceeds from maturities and calls of investment securities  held to maturity     Proceeds from maturities and calls of investment securities  available for sale     Purchases of investment securities available for sale     Proceeds from sales of premises and equipment     Proceeds from sales of foreclosed assets     Net increase in loans     Purchase of non marketable equity securities     Premises and equipment expenditures              Net  cash used for investing activitiesFINANCING  ACTIVITIES   Dividends paid     Net increase in deposits     Increase (decrease) in securities sold under repurchase  agreements     Repayments of Federal Home Loan Bank advances     Increase (decrease) in United States Treasury demand notes     Cash paid for fractional shares     Treasury stock transactions, net              Net  cash provided by financing activities              Net  increase (decrease) in cash and due from banksCASH  AND CASH EQUIVALENTS, BEGINNING OF YEAR  CASH AND CASH EQUIVALENTS, END OF YEAR  CASH PAID FOR   Interest     Income taxes | **   2004**    ****  $   8,282   895   1,155   219   -     -     (324)  (1,188)       (219)     8,820   -     3,562   72,102   (103,048)  532   231   (45,835)  (30)   (1,987) (74,473)  (2,870)  57,251   9,190   -     1,925  (43)        (28)  65,425   (228)     26,021 ****$ 25,793** **$   6,787 $   3,911** **
     2003      $   7,665  739  960  (255)  10  (153)  169  (30)      135     9,2406,529  5,134  80,913  (105,773)  -     -     (37,003)  -     (5,368)(55,568)  (2,690)  34,804  (1,459)  -     (5,539)  -           16   25,132(21,196)   47,217$ 26,021  $  7,552$  3,695

     2002   $    7,182   727   985    (165)  7   (183)  (45)  (176)       (489)     7,843   6,382   7,600   52,050   (79,975)  -     64   (29,750)  -       (1,898)  (45,527)  (2,507)  57,666   (6,602)  (1,485)  5,856   -            128       53,056   15,372     31,845 $  47,217 $    9,699 $     3,623 

The accompanying notes are an integral part of these consolidated financialstatements.-43-

***CNB CORPORATION ANDSUBSIDIARYNOTES TO CONSOLIDATED FINANCIAL STATEMENTS***

***NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ANDACTIVITIES*****    Principles of consolidation and nature of operations**

Theconsolidated financial statements include the accounts of***CNB Corporation***(*"*the Company*"*) and its wholly-owned subsidiary, TheConway National Bank (*"*the Bank*"*).  The Companyoperates as one business segment.  All significant intercompany balancesand transactions have been eliminated.  The Bank operates under a nationalbank charter and provides full banking services to customers.  The Bank issubject to regulation by the Office of the Comptroller of the Currency and theFederal Deposit Insurance Corporation.  The Company is subject toregulation by the Federal Reserve Board.

**Estimates**

The preparation ofconsolidated financial statements in conformity with accounting principlesgenerally accepted in the United States of America requires management to makeestimates and assumptions that affect the reported amounts of assets andliabilities and disclosure of contingent assets and liabilities as of the datesof the consolidated balance sheets and the consolidated statements of incomefor the periods covered.  Actual results could differ from thoseestimates.

**Concentrations of credit risk**

The Company, throughits subsidiary, makes commercial and personal loans to individuals and smallbusinesses located primarily in the South Carolina coastal region.  The Company has a diversified loanportfolio and the borrowers' ability to repay their loans is not dependent uponany specific economic sector.

**Cash and cash equivalents**

Cash and cashequivalents include cash and due from banks and federal funds sold. Generally, both cash and cash equivalents are considered to have maturities ofthree months or less, and accordingly, the carrying amount of such instrumentsis deemed to be a reasonable estimate of fair value.  

**Investment securities**

The Company accountsfor investment securities in accordance with Statement of Financial AccountingStandards ("SFAS") No. 115*, "Accounting for CertainInvestments in Debt and Equity Securities."*  This statementrequires that the Company classify debt securities upon purchase as availablefor sale, held to maturity or trading. Such assets classified as availablefor sale are carried at fair value.  Unrealized holding gains or lossesare reported as a component of stockholders' equity (accumulated othercomprehensive income) net of deferred income taxes. Securities classifiedas held to maturity are carried at cost, adjusted for the amortization ofpremiums and the accretion of discounts into interest income using a methodwhich approximates a level yield.  To qualify as held to maturity theCompany must have the intent and ability to hold the securities tomaturity.  Trading securities are carried at market value.  TheCompany has no trading securities.  Gains or losses on disposition ofsecurities are based on the difference between the net proceeds and theadjusted carrying amount of the securities sold, using the specificidentification method.

*(Continued)*

-44-

***NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ACTIVITIES,Continued***

**Loans and interestincome**

Loans are recorded at their unpaid principalbalance.  Interest on loans is accrued and recognized based upon theinterest method.

The Company accounts for impaired loans in accordancewith SFAS No. 114, "*Accounting by Creditors for Impairment of a Loan".* This standard requires that all creditors value loans at the loan's fair valueif it is probable that the creditor will be unable to collect all amounts dueaccording to the terms of the loan agreement. Fair value may be determinedbased upon the present value of expected cash flows, market price of the loan,if available, or value of the underlying collateral. Expected cash flows arerequired to be discounted at the loan's effective interest rate.  SFAS No.114 was amended by SFAS No. 118 to allow a creditor to use existing methods forrecognizing interest income on an impaired loan and by requiring additionaldisclosures about how a creditor recognizes interest income on an impairedloan.

Under SFAS No. 114, as amended by SFAS No. 118, when theultimate collectibility of an impaired loan's principal is in doubt, wholly orpartially, all cash receipts are applied to principal.  When this doubtdoes not exist, cash receipts are applied under the contractual terms of theloan agreement. Once the reported principal balance has been reduced to zero,future cash receipts are applied to interest income, to the extent that anyinterest has been foregone.  Further cash receipts are recorded asrecoveries of any amounts previously charged off.

A loan is alsoconsidered impaired if its terms are modified in a troubled debtrestructuring.  For these accruing impaired loans, cash receipts aretypically applied to principal and interest receivable in accordance with theterms of the restructured loan agreement.  Interest income is recognizedon these loans using the accrual method of accounting.  

**Allowancefor loan losses**

The allowance for loan losses is based on management'songoing evaluation of the loan portfolio and reflects an amount that, inmanagement's opinion, is adequate to absorb losses in the existingportfolio.  In evaluating the portfolio, management takes intoconsideration numerous factors, including current economic conditions, priorloan loss experience, the composition of the loan portfolio, and management'sestimate of anticipated credit losses.  Loans are charged against the allowanceat such time as they are determined to be losses.  Subsequent recoveriesare credited to the allowance.  Management considers the year-endallowance appropriate and adequate to cover losses in the loan portfolio;however, management's judgment is based upon a number of assumptions aboutfuture events, which are believed to be reasonable, but which may or may notprove valid. Thus, there can be no assurance that charge-offs in future periodswill not exceed the allowance for loan losses or that additional increases inthe allowance for loan losses will not be required.

**Non-performingassets**

Non-performing assets include real estate acquiredthrough foreclosure or deed taken in lieu of foreclosure, and loans onnon-accrual status.  Loans are placed on non-accrual status when, in theopinion of management, the collection of additional interest isquestionable.  Thereafter no interest is taken into income unless receivedin cash or until such time as the borrower demonstrates the ability to payprincipal and interest.

**Premises andequipment**

Premises andequipment are stated at cost less accumulated depreciation and amortization.Depreciation and amortization are computed over the estimated useful lives ofthe assets using primarily the straight-line method. Additions to premises andequipment and major replacements or improvements are capitalized at cost.Maintenance, repairs and minor replacements are expensed when incurred. Gains and losses on routine dispositions are reflected in current operations.

*(Continued)*

-45-

***NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ACTIVITIES, Continued***

**Advertising expense**

Advertising,promotional and other business development costs are generally expensed asincurred. External costs incurred in producing media advertising are expensedthe first time the advertising takes place.  External costs relating todirect mailing costs are expensed in the period in which the direct mailingsare sent. Advertising, promotional and other business development costs of$426,000, $504,000 and $431,000, were included in the Company's results ofoperations for 2004, 2003, and 2002, respectively.

**Securities sold under agreements torepurchase**

TheBank enters into sales of securities under agreements to repurchase. Fixed-coupon repurchase agreements are treated as financing, with theobligation to repurchase securities sold being reflected as a liability and thesecurities underlying the agreements remaining as assets.

**Income taxes**

Income taxes are accounted for in accordance with SFAS No.109, *"Accounting for Income Taxes".*Under SFAS No. 109,deferred tax liabilities are recognized on all taxable temporary differences(reversing differences where tax deductions initially exceed financialstatement expense, or income is reported for financial statement purposes priorto being reported for tax purposes).  In addition, deferred tax assets arerecognized on all deductible temporary differences (reversing differences wherefinancial statements expense initially exceeds tax deductions, or income isreported for tax purposes prior to being reported for financial statementpurposes). Valuation allowances are established to reduce deferred tax assetsif it is determined to be *"*more likely than not*"* thatall or some portion of the potential deferred tax assets will not be realized.

**Reclassifications**

Certain amounts in the financial statements for the yearsended December 31, 2003and 2002 have been reclassified, with no effect on net income to be consistentwith the classifications adopted for the year ended December 31, 2004.

**Net income per share**

The Company computes net income per share in accordancewith SFAS No. 128, *"Earnings Per Share."*  Net income pershare is computed on the basis of the weighted average number of common sharesoutstanding:  789,006 in 2004, 789,290 in 2003 and 788,553 in 2002. The Company does not have any dilutive instruments and therefore only basic netincome per share is presented.  Net income per share has been adjusted forall periods presented to reflect the 10% stock dividend issued in 2004.

**Fair values offinancial instruments**

SFAS No. 107, *"Disclosures About Fair Value ofFinancial Instruments,"* as amended by SFAS No. 119 and SFAS No. 133,requires disclosure of fair value information for financial instruments, whetheror not recognized in the balance sheet, when it is practicable to estimate thefair value.  SFAS No. 107 defines a financial instrument as cash, evidenceof an ownership interest in an entity or contractual obligations which requirethe exchange of cash or other financial instruments.  Certain items arespecifically excluded from the disclosure requirements, including the Company'scommon stock.  In addition, other nonfinancial instruments such aspremises and equipment and other assets and liabilities are not subject to thedisclosure requirements.

Thefollowing methods and assumptions were used by the Company in estimating fairvalues of financial instruments as disclosed herein:

***Cash and due from banks*** - The carryingamounts of cash and due from banks (cash on hand, due from banks and interestbearing deposits with other banks) approximate their fair value.

*(Continued)*

-46-

***NOTE 1 - SUMMARY OF SIGNIFICANTACCOUNTING POLICIES AND ACTIVITIES, Continued***

**Fair values of financial instruments, continued**

***Federal funds sold*** - The carryingamounts of federal funds sold approximate their fair value.

***Investment securities available for sale and held tomaturity*** - Fair values for investment securities are based on quoted marketprices.

***Other investments -***No ready marketexists for Federal Reserve and Federal Home Loan Bank Stock and they have noquoted market value.  However, redemption of this stock has historicallybeen at par value.

***Loans*** - For variable rate loans that reprice frequently andfor loans that mature within one year, fair values are based on carryingvalues.  Fair values for all other loans are estimated using discountedcash flow analyses, with interest rates currently being offered for loans withsimilar terms to borrowers of similar credit quality.  Fair values forimpaired loans are estimated using discounted cash flow analyses or underlyingcollateral values, where applicable.

***Deposits*** - The fair values disclosed for demand deposits are, bydefinition, equal to their carrying amounts. The carrying amounts of variablerate, fixed-term money market accounts and short-term certificates of depositapproximate their fair values at the reporting date.  Fair values forlong-term fixed-rate certificates of deposit are estimated using a discounted cashflow calculation that applies interest rates currently being offered oncertificates to a schedule of aggregated expected monthly maturities.

***Short-term borrowings*** - The carryingamounts of borrowings under repurchase agreements, federal funds purchased, andU. S. Treasury demand notes approximate their fair values.

***Off balance sheetinstruments*** - Fair values of off balance sheet lending commitmentsare based on fees currently charged to enter into similar agreements, takinginto account the remaining terms of the agreements and the counterparties'credit standing.

**Recently issued accounting standards**

InApril 2003, the Financial Accounting Standards Board ("FASB") issued Statementof Financial Accounting Standards ("SFAS") No. 149, "Amendment of Statement 133on Derivative Instruments and Hedging Activities", which amends and clarifiesaccounting and reporting for derivative instruments, including certainderivative instruments embedded in other contracts (collectively referred to asderivatives) and loan commitments that relate to the origination of mortgageloans held for sale, and for hedging activities under SFAS No. 133, "Accountingfor Derivative Instruments and Hedging Activities".  SFAS No. 149clarifies under what circumstances a contract with an initial net investmentmeets the characteristics of a derivative, clarifies when a derivative containsa financing component, amends the definition of an underlying to conform it tolanguage used in FASB Interpretation ("FIN") No. 45, and amends certain otherexisting pronouncements.  The pronouncement was generally effective forcontracts entered into or modified after June 30, 2003.  The adoption of SFAS No. 149 didnot have any impact on the financial condition or operating results of theCompany.

In May 2003, the FASB issued SFAS No.150, "Accounting for Certain Financial Instruments with Characteristics of bothLiabilities and Equity", which establishes standards for how an issuerclassifies and measures certain financial instruments with characteristics ofboth liabilities and equity.  SFAS No. 150 requires an issuer to classifycertain financial instruments that include certain obligations, such asmandatory redemption, repurchase of the issuer's equity, or settlement byissuing equity, previously classified as equity, as liabilities or assets income circumstances.  SFAS No. 150 was generally effective for financialinstruments entered into or modified after May 31, 2003, and otherwise waseffective at the beginning of the first interim period beginning after June 15,2003, except for mandatorily redeemable financial instruments of nonpublicentities which are subject to the provisions of SFAS No. 150 for the firstfiscal period beginning after December 15, 2003.  The adoption of SFAS No.150 did not have any impact on the financial condition or operating results ofthe Company.

*(Continued)*

-47-

***NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ANDACTIVITIES, Continued***

**Recently issued accounting standards,continued**

In December 2004, the FASB issued SFASNo. 153, "Exchanges of Nonmonetary Assets, an amendment of APB Opinion No. 29,Accounting for Nonmonetary Transactions." The amendments made by SFAS No. 153are based on the principle that exchanges of nonmonetary assets should bemeasured based on the fair value of the assets exchanged. Further, theamendments eliminate the narrow exception for nonmonetary exchanges of similarproductive assets and replace it with a broader exception for exchanges of nonmonetaryassets that do not have commercial substance. Previously, Accounting PrinciplesBoard ("APB") Opinion No. 29 required that the accounting for an exchange of aproductive asset for a similar productive asset or an equivalent interest inthe same or similar productive asset should be based on the recorded amount ofthe asset relinquished. APB Opinion No. 29 provided an exception to its basicmeasurement principle (fair value) for exchanges of similar productive assets.SFAS No. 153 is effective for nonmonetary asset exchanges occurring in fiscalperiods beginning after June 15, 2005. Earlierapplication is permitted for nonmonetary asset exchanges occurring in fiscalperiods beginning after the date of issuance. The provisions of this statementshall be applied prospectively. The adoption of this statement is not expectedto have a material impact on the financial condition or operating results ofthe Company.

In November 2002, the FASB issued FASB Interpretation ("FIN") No. 45,"Guarantor's Accounting and Disclosure Requirements for Guarantees, IncludingIndirect Guarantees of Indebtedness of Others." FIN No. 45 elaborates on thedisclosure to be made by a guarantor in its interim and annual financialstatements about its obligations under certain guarantees and warranties thatit has issued.  FIN 45 requires a company, at the time it issues aguarantee, to recognize an initial liability for the fair value of obligationsassumed under the guarantee. The initial recognition requirements of FIN No. 45were effective for guarantees issued or modified after December 31, 2002.  The disclosure requirements wereeffective for financial statements for periods ending after December 15, 2002.  The adoption of FIN No. 45 didnot have a material impact on the Company's financial position or results of operations.

In December 2003, the FASB issued FIN No. 46 (revised), "Consolidation ofVariable Interest Entities" ("FIN No. 46(R)"), which addresses consolidation bybusiness enterprises of variable interest entities. FIN No. 46(R) requires avariable interest entity to be consolidated by a company if that company issubject to a majority of the risk of loss from the variable interest entity'sactivities or entitled to receive a majority of the entity's residual returns,or both. FIN No. 46(R) also requires disclosures about variable interestentities that a company is not required to consolidate, but in which it has asignificant variable interest.  FIN No. 46(R) provides guidance fordetermining whether an entity qualifies as a variable interest entity by considering,among other considerations, whether the entity lacks sufficient equity or itsequity holders lack adequate decision-making ability.  The consolidationrequirements of FIN No. 46(R) applied immediately to variable interest entitiescreated after January 31, 2003.  Theconsolidation requirements applied to the Company's existing variable interestentities in the first reporting period ending after March 15, 2004.*** ***Certain of the disclosure requirements applied to all financialstatements issued after December 31, 2003, regardless ofwhen the variable interest entity was established.  The adoption of FINNo. 46(R) did not have any impact on the Company's financial position orresults of operations.

*(Continued)*

-48-

***NOTE 1 - SUMMARY OF SIGNIFICANTACCOUNTING POLICIES AND ACTIVITIES, Continued***

**Recently issued accounting standards,continued**

In November 2003, the Emerging IssuesTask Force ("EITF") reached a consensus that certain quantitative andqualitative disclosures should be required for debt and marketable equitysecurities classified as available-for-sale or held-to-maturity under SFAS No.115 and SFAS No. 124 that are impaired at the balance sheet date but for whichother-than-temporary impairment has not been recognized.  Accordingly theEITF issued EITF No. 03-1, "The Meaning of Other-Than-Temporary Impairment andIts Application to Certain Investments."  This issue addresses the meaningof other-than-temporary impairment and its application to investmentsclassified as either available-for-sale or held-to-maturity under SFAS No. 115and provides guidance on quantitative and qualitative disclosures.  Thedisclosure requirements of EITF No. 03-1 are effective for annual financialstatements for fiscal years ending after June 15, 2004.  The effective date for themeasurement and recognition guidance of EITF No. 03-1 has been delayed. The FASB staff has issued a proposed Board-directed FASB Staff Position("FSP"), FSP EITF 03-1-a, "Implementation Guidance for the Application ofParagraph 16 of Issue No. 03-1." The proposed FSP would provide implementationguidance with respect to debt securities that are impaired solely due tointerest rates and/or sector spreads and analyzed for other-than-temporaryimpairment under the measurement and recognition requirements of EITF No.03-1.  The delay of the effective date for the measurement and recognitionrequirements of EITF No. 03-1 will be superseded concurrent with the finalissuance of FSP EITF 03-1-a.  Adopting the disclosure provisions of EITFNo. 03-1 did not have any impact on the Company's financial position or resultsof operations.

In March 2004, the Securities and Exchange Commission ("SEC") issued StaffAccounting Bulletin ("SAB") No. 105, "Application of Accounting Principles toLoan Commitments," to inform registrants of the Staff's view that the fairvalue of the recorded loan commitments should not consider the expected futurecash flows related to the associated servicing of the future loan. Theprovisions of SAB No. 105 must be applied to loan commitments accounted for asderivatives that are entered into after March 31, 2004. The Staff will not object to theapplication of existing accounting practices to loan commitments accounted foras derivatives that are entered into on or before March 31, 2004,with appropriate disclosures. The Company adopted the provisions of SAB No. 105on April 1, 2004. The adoption of SAB No. 105 did nothave a material impact on the Company's financial condition or results ofoperations.

Other accounting standards that have been issued or proposed by the FASB orother standards-setting bodies that do not require adoption until a future dateare not expected to have a material impact on the consolidated financialstatements upon adoption.

**Risks and Uncertainties**

         Inthe normal course of its business the Company encounters two significant typesof risks: economic and regulatory.  There are three main components ofeconomic risk: interest rate risk, credit risk and market risk. The Company issubject to interest rate risk to the degree that its interest-bearingliabilities mature or reprice at different speeds, or on different basis, thanits interest-earning assets.  Credit risk is the risk of default on theCompany's loan portfolio that results from borrower's inability orunwillingness to make contractually required payments.  Market riskreflects changes in the value of collateral underlying loans receivable and thevaluation of real estate held by the Company.

The Company is subject tothe regulations of various governmental agencies.  These regulations canand do change significantly from period to period.  The Company alsoundergoes periodic examinations by the regulatory agencies, which may subjectit to further changes with respect to asset valuations, amounts of requiredloss allowances and operating restrictions from the regulators' judgments basedon information available to them at the time of their examination.

-49-

***NOTE 2 - RESTRICTIONS ON CASH AND CASH EQUIVALENTS***

           The Bank is required to maintain average reservebalances either at the Bank or on deposit with the Federal Reserve Bank. The average amounts of these reserve balances for the years ended December 31, 2004 and 2003 wereapproximately $15,392,000 and $11,823,000, respectively.

***NOTE 3 - INVESTMENT SECURITIES***

          The amortized costand fair value of investment securities are based on contractual maturitydates.  Actual maturities may differ from the contractual maturitiesbecause borrowers may have the right to prepay obligations with or withoutpenalty.  The book value, approximate fair value and expected maturitiesof investment securities are summarized as follows (tabular amounts inthousands):

** **

**                      ****December 31, 2004                        ****Amortized       Unrealized  Holding           Fair     **

**AVAILABLE FOR SALE**     Federal agencies        Within one year        One to five years     State, county and municipal        Within one year        One to five years        Six to ten years     Mortgage Backed        Over ten years      CRA Qualified Investment Fund        Total available for sale**HELD TO MATURITY**     State, county and municipal        Within one year        One to five years        Six to ten years        Total held to maturity

**     Cost      **  $    22,082    167,860      189,942480  11,780        5,234        17,494       1,013           322**$  208,771**$         400  3,477           642          4,519**$      4,519**

**  Gains   **  $       354         883        1,2371  450         374           825           -              -   **$     2,062**$             4  187             55             246**$         246**

** Losses **  $      -          799        799-     -             -               -    40          -   **$      839**$      -     -           -             -   **$      -   **

**  Value   **  $   22,436   167,944     190,380481  12,230       5,608       18,319      973          322**$ 209,994**$         404  3,664           697          4,765**$      4,765**

*(Continued)*

-50-

***NOTE 3 - INVESTMENT SECURITIES, Continued***

** **

**                       ****December 31, 2003                     Amortized      Unrealized  Holding          Fair     **

**AVAILABLE FOR SALE**     Federal agencies        Within one year        One to five years     State, county and municipal        Within one year        One to five years        Six to ten years        Over ten years     Mortgage Backed        Over ten years      CRA Qualified Investment Fund        Total available for sale**HELD TO MATURITY**     Federal agencies        Within one year     State, county and municipal        Within one year        One to five years        Six to ten years        Total held to maturity

**     Cost      **  $    8,809  149,917    158,726185  10,283  6,961          288       17,717       1,071          311**$ 177,825**$     2,0001,562  3,086       1,433         6,081**$     8,081**

**  Gains   **  $    174   3,484     3,6581  522  492          4     1,019       -            -   **$ 4,677**$    55  30  227     123       380**$   435**

** Losses **  $         -      273        273-  -  -          -            - 19          -**$   292**$       --  -        -           -**$       -**

**  Value   **  $   8,983153,128   162,111186  10,805  7,453         292      18,736      1,052         311**$182,210**$    2,0551,592  3,313     1,556       6,461**$   8,516**

     Thefollowing table shows gross unrealized losses and fair value, aggregated byinvestment category, and length of time that individual securities have been ina continuous unrealized loss position, at December 31, 2004 (tabular amounts in thousands):

**Available for****Sale **

**Less  than                      twelve months       **

**Twelve  months                     or  more             **

**              Total                 **

** **

**Fair value**

**Unrealized     losses    **

**Fair value**

**Unrealized    losses    **

**Fair value**

**Unrealized    losses    **

Federal  Agencies  Mortgage Backed  Total

$94,631           -** 94,631**

$    733          -**     733**

$  2,934       973**   3,907**

$     66       40**     106**

$97,565       973** 98,538**

$   799       40**     839**

        Allof the Company's investments that were in an unrealized loss position at December 31, 2004 have been evaluated and deemed not to beother-than-temporarily impaired under the authoritative accountingguidance.  The Company had two securities in a continuous loss positionfor more than twelve months.  In both cases, the principal cause of the declinein market value was due to the increase in market rates subsequent to purchaseof the securities.

        Investmentsecurities with an aggregate par value $99,580,000 at December 31, 2004 and $85,195,000 at December 31, 2003 were pledged to secure public depositsand for other purposes.

* (Continued)*

-51-

***NOTE 3- INVESTMENT SECURITIES, Continued***

**Other Investments, atCost** - The Bank, as a member institution, is required to owncertain stock investments in the Federal Home Loan Bank of Atlanta("FHLB") and the Federal Reserve Bank.  The stock is generallypledged against any borrowings from these institutions (see Note 8).  Noready market exists for the stock and it has no quoted market value. However, redemption of these stocks has historically been at par value.  

     The Company's investments in stock are summarizedbelow (tabular amounts in thousands):

**            December  31,     **

  Federal Reserve Bank  FHLB

**   2004   **$      116     1,198**$   1,314**

**     2003    **  $    116   1,168**$ 1,284**

***NOTE 4 -LOANS AND ALLOWANCE FOR LOAN LOSSES***

       Following is a summary of loans bymajor classification (tabular amounts in thousands):

**       December  31,        **

  Real estate - mortgage  Real estate - construction  Commercial and industrial  Loans to individuals for household, family and    other consumer expenditures  Agriculture  All other loans, including overdrafts

**    2004   **  $  262,543  39,525  66,184  35,583  1,582       1,566**$ 406,983**

**     2003   **  $  228,556  44,099  53,559  32,884  1,537       1,399**$ 362,034**

       TheBank's loan portfolio consisted of $286,918,000 and $248,691,000 in fixed rateloans as of December 31, 2004 and 2003, respectively.  Fixed rate loans withmaturities in excess of one year amounted to $228,454,000 and $196,337,000 at December 31, 2004 and 2003,respectively.  The Bank has an available line of credit from theFHLB.  Securing the line is a blanket lien on qualifying 1-4 familymortgages.

       Changes in the allowance for loanlosses are summarized as follows (tabular amounts in thousands):

** **

**For the years  ended December 31,****  **

** **

**   2004  **

**    2003  **** **

**   2002   **

Balance, beginning of year  Recoveries of loans previously charged    against the allowance  Provided from current year's income  Loans charged against the allowance  Balance, end of year

$  4,524    242    1,155      (817)**$  5,104 **

$  4,155   291   960      (882)**$  4,524 **

$ 3,763   363   985     (956)**$ 4,155 **

      AtDecember 31, 2004and 2003, non-accrual loans totaled $880,000 and $351,000, respectively. The total amount of interest earned on non-accrual loans was $28,000 in 2004,$9,000 in 2003 and $19,000 in 2002.  The gross interest income which wouldhave been recorded under the original terms of the non-accrual loans amountedto $69,000 in 2004, $26,000 in 2003, and $63,000 in 2002.  As of December 31, 2004 and 2003, theCompany had no impaired loans.

-52-

***NOTE 5 - PREMISESAND EQUIPMENT***     Premises and equipment at December 31 issummarized as follows (tabular amounts in thousands):

** **

**   2004   **

**   2003   **

Land and buildings  Furniture, fixtures and equipment  Less accumulated depreciation and amortization  Construction in progress

$ 20,691     6,82427,515     9,96217,553          75**$ 17,628**

$ 15,866    6,92322,789 10,09212,697   4,371**$17,068**

     Depreciationand amortization of premises and equipment charged to operating expense totaled$895,000 in 2004, $739,000 in 2003 and $727,000 in 2002.

***NOTE 6 - DEPOSITS***

     Asummary of deposits, by type, as of December 31 follows (tabular amounts inthousands):

** **

**    2004    **

**    2003   **

Transaction accounts  Savings deposits  Insured money market accounts  Time deposits over $100,000  Other  time deposits         Total deposits

$ 190,005  49,180  90,955  100,042   130,182**$ 560,364**

$ 164,802  43,897  78,932  86,975  128,507**$503,113**

     Interestpaid on certificates of deposit of $100,000 or more totaled $2,046,000 in 2004,$1,929,000 in 2003, and $2,448,000 in 2002.

*     At December 31, 2004 the scheduledmaturities of time deposits are as follows (dollar amounts in thousands):*

             2005               2006               2007               2008               2009

$ 202,721  12,405  7,839  3,256      4,003**$230,224**

 
NOTE 7 - SECURITIES SOLD UNDER REPURCHASE AGREEMENTS
      Securities sold underrepurchase agreements are summarized as follows (tabular amounts in thousands):

**At and for the  year ended          December  31,          **

  Amount outstanding at year end  Average amount outstanding during year  Maximum outstanding at any month-end  Weighted average rate paid at year-end  Weighted average rate paid during year

**    2004    **** **$   33,950     29,194     33,950  1.43%  1.19%

**    2003    **** **$24,760     28,752     32,256     0.96%  1.13%

*(Continued)*

-53-

***NOTE 7 - SECURITIESSOLD UNDER REPURCHASE AGREEMENTS, Continued***

      The Bank enters into sales of securitiesunder agreements to repurchase. These obligations to repurchase securities soldare reflected as liabilities in the consolidated balance sheets.  Thedollar amount of securities underlying the agreements are book entry securitiesmaintained at The Bankers Bank.  Federal agency and municipal securitieswith a book value of $38,711,000 ($39,178,000 fair value) and $34,100,000($35,341,000 fair value) at December 31, 2004 and 2003, respectively, are used as collateral for theagreements.

***NOTE 8 - LINES OF CREDIT***

      At December 31, 2004, the Bank hadunused short-term lines of credit totaling $28,000,000 to purchase FederalFunds from unrelated banks.  These lines of credit are available on a oneto seven day basis for general corporate purposes of the Bank.  All of thelenders have reserved the right to withdraw these lines at their option.

      The Bank has a demand note through the U.S.Treasury, Tax and Loan system with the Federal Reserve Bank of Richmond.  The Bank mayborrow up to $7,000,000 under the arrangement at an interest rate of 0.73percent.  The note is secured by Federal agency securities with a marketvalue of $4,035,000 at December 31, 2004.  The amount outstanding under the note totaled$2,895,000 and $970,000 at December 31, 2004 and 2003, respectively.

      TheBank also has a line of credit from the Federal Home Loan Bank (FHLB) for$89,805,000 secured by a lien on the Bank's qualifying 1-4 family mortgages andthe Bank's investment in FHLB stock.  Allowable terms range from overnightto 20 years at varying rates set daily by the FHLB.  At December 31, 2004 and 2003,respectively, there were no borrowings under the agreement.

***NOTE 9 - INCOMETAXES***

      Theprovision for income taxes is reconciled to the amount of income tax computedat the federal statutory rate on income before income taxes as follows (dollaramounts in thousands):

** **

 **               For  the years ended December  31,                      **

**            2004             **

**          2003             **

**           2002              **

********Tax  expense at statutory rate  Increase (decrease) in taxes resulting from:     Tax exempt interest     State bank tax (net of federal benefit)     Other - net     Tax provision

**Amount**$4,151  (347)   248  (125)**$3,927**

**   %     **34.0%    (2.84)    2.03 (1.03)**32.16%**

**Amount**$3,795   (373)  229   (154)**$3,497 **

**   %     **34.0%  (3.34)   2.05 (1.38)  **31.33%**

**Amount**$ 3,602   (411)  215        7  **$3,413**

**   %   ** ****34.0%  (3.9)      2.0         .1   ** 32.2%**

*(Continued)*

-54-
NOTE 9 - INCOME TAXES,Continued
         The sources and taxeffects of temporary differences that give rise to significant portions of thedeferred tax assets and deferred tax liabilities are as follows:

** **

**    December  31,   **

**Deferred tax assets:     **Allowance for loan losses deferred for tax purposes     Deferred compensation     Executive retirement plan     Other        Gross deferred tax assets        Less valuation allowance        Net deferred tax assets**Deferred tax liabilities:     **Unrealized net gains on securities available for sale     Depreciation for income tax reporting in excess of amount        for financial reporting        Gross deferred tax liabilities        Net deferred tax asset (liability)

**  2004  **  $ 1,567  379  151       362,133     389    1,744(489)   (428)   (917)**$  827 **

**   2003  **** **  $  1,538  336  136         3  2,013       557    1,456  (1,754)     (359)  (2,113)**$   (657)**

**           **The net deferred taxasset is included in other assets at December 31, 2004 and the netdeferred tax liability is included in other liabilities at December 31, 2003.

           A portion ofthe change in net deferred taxes relates to the change in unrealized net gainsand losses on securities available for sale.  The related 2004 tax benefitof $245,000 and the 2003 deferred tax benefit of $875,000 have been recordeddirectly to stockholders' equity.  The balance of the change in netdeferred taxes results from the current period deferred tax benefit.

      The following summary of the provision forincome taxes includes tax deferrals which arise from temporary differences inthe recognition of certain items of revenue and expense for tax and financialreporting purposes (amounts in thousands):

** **

**    For  the years ended December 31, **** **

****Income  taxes currently payable    Federal    State  Deferred income taxes      Provision for income taxes

**    2004   **  $ 3,383      3253,708      219**$ 3,927**

**    2003    **  $ 3,524      3473,871   (374)**$ 3,497**

**    2002    **  $   3,252        326   3,578       (165)**$   3,413 **

*(Continued)*

-55-

***NOTE 10 - FINANCIALINSTRUMENTS WITH OFF BALANCE SHEET RISK***

         The Bank is a party tofinancial instruments with off balance sheet risk in the normal course ofbusiness to meet the financing needs of its customers.  These financialinstruments include commitments to extend credit and standby letters ofcredit.  Those instruments involve, to varying degrees, elements of creditand interest rate risk in excess of the amount recognized in the accompanyingconsolidated balance sheets.  The contract amounts of those instrumentsreflect the extent of involvement the Bank has in particular classes offinancial instruments. The Bank uses the same credit policies in makingcommitments and conditional obligations as it does for on balance sheetinstruments.

      The contract value of the Bank's offbalance sheet financial instruments is as follows as of December 31, 2004 (amounts inthousands):

****Commitments  to extend credit  Standby letters of credit

**Contract amount **$ 45,644  $   3,328

      Commitmentsto extend credit are agreements to lend as long as there is no violation of anycondition established in the contract.  Commitments generally have fixedexpiration dates or other termination clauses and may require payment of afee.  Since many of the commitments are expected to expire without beingdrawn upon, the total commitment amounts do not necessarily represent futurecash requirements.  The Bank evaluates each customer's creditworthiness ona case-by-case basis.  The amount of collateral obtained if deemednecessary by the Bank upon extension of credit is based on management's creditevaluation.

***NOTE 11 - COMMITMENTS AND CONTINGENCIES***

      At December 31, 2004, the Bank wasobligated under a number of non-cancelable operating leases on land used for abranch office and a billboard contract that had initial or remaining terms ofmore than one year. Future minimum payments under these agreements at December 31, 2004 were (tabularamounts in thousands):

**Payable in year  ending**      2005        2006        2007         2008         2009 and thereafter           Total future minimum  payments required

** Amount **$   6  6  6       5      2    **$  25**

      Leasepayments under all operating leases charged to expense totaled $5,000 in 2004,$5,000 in 2003, and $5,000 in 2002.  The leases provide that the lesseepay property taxes, insurance and maintenance cost.

      The Company is party to litigation andclaims arising in the normal course of business.  Management, afterconsultation with legal counsel, believes that the liabilities, if any, arisingfrom such litigation and claims will not be material to the Company's financialposition.

-56-

***NOTE 12 - RESTRICTION ON DIVIDENDS***

         The ability of theCompany to pay cash dividends is dependent upon receiving cash in the form ofdividends from the Bank.  Federal banking regulations restrict the amountof dividends that can be paid and such dividends are payable only from theretained earnings of the Bank.  At December 31, 2004 the Bank's retainedearnings were $58,812,000.

***NOTE 13 - TRANSACTIONS WITH DIRECTORS, EXECUTIVE OFFICERS AND ASSOCIATES***

         Directors and executiveofficers of the Company and the Bank and associates of such persons arecustomers of and had transactions with the Bank in the ordinary course ofbusiness.  Additional transactions may be expected to take place in thefuture.  Also, included in such transactions are outstanding loans andcommitments, all of which were made on comparable terms, including interestrates and collateral, as those prevailing at the time for other customers ofthe Bank, and did not involve more than normal risk of collectibility orpresent other unfavorable features. 

         Totalloans to all executive officers and directors, including immediate family andbusiness interests, at December 31, were as follows (tabular amounts in thousands):

** **

**    December  31,     **

**Balance, beginning of year**     New loans     Less loan payments**Balance, end of year**

**   2004  **** **  $ 1,305  664       700**$  1,296**

**   2003  **** **  $  2,927  466    2,088**$  1,305**

***NOTE 14 - EMPLOYEE BENEFIT PLAN***

         The Bank has a definedcontribution pension plan covering all employees who have attained agetwenty-one and have a minimum of one year of service.  Upon ongoingapproval of the Board of Directors, the Bank matches one-hundred percent ofemployee contributions up to three percent of employee salary deferred andfifty percent of employee contributions in excess of three percent and up tofive percent of salary deferred.  The Board of Directors may also makediscretionary contributions to the Plan.  For the years ended December 31, 2004, 2003 and 2002,$595,000, $558,000, and $510,000, respectively, were charged to operationsunder the plan.

         Supplemental benefits areprovided to certain key officers under The Conway National Bank ExecutiveSupplemental Income Plan (ESI) and the Long-Term Deferred Compensation Plan(LTDC).  These plans are not qualified under the Internal RevenueCode.  The plans are unfunded.  However, certain benefits under theESI Plan are informally and indirectly funded by insurance policies on thelives of the covered employees.

-57-

***NOTE 15 - REGULATORY MATTERS***

         The Bank is subject tovarious regulatory capital requirements administered by the federal bankingagencies. Failure to meet minimum capital requirements can initiate certainmandatory and possibly additional discretionary actions by regulators that, ifundertaken, could have a direct material effect on the Bank's financialstatements. Under capital adequacy guidelines and the regulatory framework for promptcorrective action, the Bank must meet specific capital guidelines that involvequantitative measures of the Bank's assets, liabilities, and certainoff-balance-sheet items as calculated under regulatory accountingpractices.  The Bank's capital amounts and classification are also subjectto qualitative judgments by the regulators about components, risk weightings,and other factors.

         Quantitative measuresestablished by regulation to ensure capital adequacy require the Bank tomaintain minimum amounts and ratios (set forth in the table below) of total andTier I capital to risk-weighted assets, and of Tier I capital to averageassets.  Management believes, as of December 31, 2004, that the Bankmeets all capital adequacy requirements to which it is subject.

**         **As of December 31, 2004, the most recentnotification from the Office of the Comptroller of the Currency categorized theBank as well capitalized under the regulatory framework for prompt correctiveaction.  There are no conditions or events since that notification thatmanagement believes have changed the Bank's category.  The Bank's actualcapital amounts and ratios and minimum regulatory amounts and ratios arepresented as follows (dollar amounts in thousands):

**            Actual                 **

**       For  capital                adequacy purposes                   Minimum               **

**To be well  capitalized      under prompt corrective      action  provisions                   Minimum              **

**As of****December 31, 2004**    Total Capital (to risk      weighted assets)    Tier I Capital (to risk      weighted assets)    Tier I Capital (to average assets)**As of****December 31, 2003**    Total Capital (to risk      weighted assets)    Tier I Capital (to risk      weighted assets)    Tier I Capital (to average assets)

**  Amount  **  $   67,786       62,682       62,682  $   62,255       57,731       57,731

**  Ratio  ******15.87%  14.68    9.54****16.49%  15.29    9.76

**    Amount  ******$   34,162       17,081       26,268  $   30,197       15,098       23,662

**  Ratio  ****** 8.00%   4.00   4.00  8.00** **%   4.00   4.00

**    Amount   **$   42,702       25,621       32,835  $   37,746       22,647       29,578

**    Ratio**       10.00%    6.00    5.00  10.00%    6.00    5.00

******-58-

***NOTE 16 - ESTIMATED FAIR VALUE OFFINANCIAL INSTRUMENTS***

         Theestimated fair values of the Company's financial instruments were as follows atDecember 31 (amounts in thousands):

** **

**                 2004 **    **           ****Carrying           **   **Fair     **

**                2003                   ****   Carrying          **  **Fair     **

**FINANCIAL ASSETS**    Cash  and due from banks      Federal funds sold      Investment securities available for sale      Investment securities held to maturity      Other investments      Loans**FINANCIAL LIABILITIES**    Deposits      Securities sold under repurchase agreements      U.S. Treasury demand notes

**  Amount   **  $25,793  -     209,994  4,519  1,314  406,983  560,364  33,950  2,895

**   Value   **$25,793  -     209,994  4,765  1,314  403,226  560,343  33,950  2,895

**  Amount   **  $25,021  1,000  182,210  8,081  1,284  362,034  503,113  24,760  970

**   Value   **$25,021  1,000  182,210  8,516  1,284  362,791  503,549  24,760  970

** **

**Notional     Amount   **

**Fair         Value   **

**Notional     Amount   **

**Fair       Value   **

**OFF BALANCE SHEET INSTRUMENTS**Commitments to extend  credit  Standby letters of credit

  $45,644  3,328

  $     -  $     -

****$39,308  $828

  $     -  $     -
NOTE 17 - PARENT COMPANY INFORMATION
      Following is condensed financial informationof CNB Corporation (parent company only) (amounts in thousands):

***                                                                    CONDENSEDBALANCE SHEETS***

** **

**         December  31,      **

**ASSETS     **Cash     Investment in subsidiary     Land     Other assets**LIABILITIES AND STOCKHOLDERS' EQUITY**   Dividends payable     Stockholders' equity (net of $148 and $104 of treasury  stock)

**   2004     **$     7,485  63,416  -               36**$  70,937**$     3,352     67,585**$   70,937**

**   2003   **$   5,282  60,362  1,812           37**$  67,493**  $    2,870    64,623**$  67,493**

*(Continued)*

-59-

***NOTE 17- PARENT COMPANY INFORMATION, Continued***

***CONDENSED STATEMENTS OF INCOME***

** **

**  For  the years ended December 31, **

**INCOME**   Dividend  from bank subsidiary**EXPENSES**   Sundry        Income before equity in undistributed           net income of bank  subsidiary**EQUITY IN UNDISTRIBUTED NET INCOME OF      SUBSIDIARY**      Net income

**    2004    **$    3,387          553,332      4,950**$    8,282**

**     2003   **$    3,097          543,043     4,622**$   7,665**

**   2002   **$     2,903         53  2,850      4,332**$    7,182**

***CONDENSED STATEMENTS OF CASH FLOWS* **

** **

** For the  years ended December 31, **

**OPERATING ACTIVITIES**   Net  income     Adjustments to reconcile net income to net cash provided        by operating activities        Equity in undistributed net income of  bank subsidiary           Net cash provided by  operating activities**INVESTING ACTIVITIES**   Purchase of land     Proceeds from sale of land           Net cash provided  (used) by investing activities**FINANCING ACTIVITIES     **Dividends paid     Treasury stock transactions, net     Cash paid for fractional shares           Net cash used for  financing activities           Net increase (decrease)  in cash**CASH, BEGINNING OF THE YEAR  CASH, END OF THE YEAR**

**   2004   **** **$    8,282   (4,950)      3,332     -       1,812        1,812(2,870)           (28)         (43)    (2,941)  2,203       5,282**$     7,485**

**   2003     **** **  $  7,665   (4,622)     3,043        (806)          -           (806)  (2,690)           16           -        (2,674)  (437)     5,719 **$   5,282 **

**     2002   **  $   7,182    (4,332)    2,850            -            -              -     (2,507)         128           -      (2,379)  471      5,248 **$   5,719 **

-60-

***NOTE 18 - QUARTERLYFINANCIAL DATA (UNAUDITED)***

      Unaudited condensed financial data byquarter for 2004 and 2003 is as follows (amounts, except per share data, inthousands):

** **

**Quarter ended**

** **

**  March  31 **

**  June  30  **

**September 30**

**December 31**

**   2004**Interest income  Interest expense     Net interest income  Provision for loan losses     Net interest income after        provision for loan losses  Noninterest income  Noninterest expenses     Income before income taxes  Income taxes     Net income  Net income per share(1)  Weighted average shares outstanding(1)  (1) Adjusted for effects of 10% stock dividend

****$     7,636       1,6196,017          2355,782  1,354       4,1952,941          932**$     2,009  $       2.55     789,195**

****$     7,843       1,6506,193         2105,983  1,626      4,4363,173      1,140**$     2,033  $       2.57     789,241**

  $     8,191       1,7746,417          3156,102  1,806       4,5063,402          935**$     2,467  $       3.13     789,124**

  $     8,621       1,8956,726          3956,331  1,471       5,1092,693          920**$     1,773  $       2.25     788,464**

** **

**Quarter ended**

** **

** March  31 **

**  June  30  **

**September 30**

**December 31**

**   2003**Interest income  Interest expense     Net interest income  Provision for loan losses     Net interest income after        provision for loan losses  Noninterest income  Noninterest expenses     Income before income taxes  Income taxes     Net income  Net income per share(1)  Weighted average shares outstanding(1)  (1) Adjusted for effects of 10% stock dividend

****$     7,593       1,9695,624          2805,344  1,462       4,0442,762          854**$     1,908  $       2.42     789,826**

****$     7,681       1,8685,813            2205,593  1,487        4,1682,912          914**$     1,998  $       2.53     789,802**

  $     7,567       1,7505,817          2505,567  1,654       4,1023,119       1,002**$     2,117  $       2.68     789,468**

  $     7,625       1,6375,988          2105,778  1,514       4,9232,369          727**$     1,642  $       2.08     788,062**

-61-

ITEM 9.CHANGES INAND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A.  CONTROLS AND PROCEDURES

(a) Based on the evaluation required by 17 C.F.R. Section 240.13a-15(b) or240.15d-15(b) of the Corporation's disclosure controls and procedures (asdefined in 17 C.F.R. Sections 240.13a-15(e) or 240.15d-15(e)), theCorporation's chief executive officer and chief financial officer concludedthat the effectiveness of such controls and procedures, as of the end of theperiod covered by this annual report, was adequate.

(b)MANAGEMENT REPORT ON EFFECTIVENESS OF INTERNAL CONTROL OVER FINANCIALREPORTING

Management ofConway National Bank is responsible for establishing and maintaining effectiveinternal control over financial reporting presented in conformity with bothaccounting principles generally accepted in the United States of America,including controls over the safeguarding of assets, and The Reports ofCondition and Income Instructions for Call Reports (Call Report Instructions).This internal control contains monitoring mechanisms, and actions are taken tocorrect deficiencies identified.

There are inherent limitations in any internal control, including thepossibility of human error and the circumvention of overriding of controls.Accordingly, even effective internal control can provide only reasonableassurance with respect to financial statement preparation. Further, because ofchanges in conditions, the effectiveness of internal control may vary overtime.

Management assessed the Company's internal control over financial reportingpresented in conformity with both accounting principles generally accepted inthe United States of America, including controls over the safeguarding ofassets, and Call Report Instructions as of December 31, 2004. This assessment was based on criteria for effective internal control over financialreporting established in *Internal Control - Integrated Framework*issuedby the Committee of Sponsoring Organizations of the Treadway Commission. Basedon this assessment, management believes that, as of December 31, 2004, the Company maintained effective internal control over financial reportingpresented in conformity with both accounting principles generally accepted inthe United States of America, including controls over the safeguarding ofassets, and Call Report Instructions.

Date:  December 31, 2004

/s/W. JenningsDuncan                        /s/PaulR. Dusenbury   W. JenningsDuncan                           PaulR. DusenburyPresident and Chief ExecutiveOfficer        Vice President and                                             ChiefFinancial Officer

62

ITEM 9A. CONTROLS AND PROCEDURES - Continued

(c) REPORTOF INDEPENDENT REGISTERED PUBLICACCOUNTING FIRM

Elliott Davis, LLCAdvisors-CPAs-Consultants1901  Main Street, Suite 1650  P.O. Box 2227Columbia, SC  29202-2227

The Directors and StockholdersCNB CorporationConway, South Carolina

     We have audited management's assessment, includedin the accompanying Report by CNB Corporation's Management on Internal ControlOver Financial Reporting, that CNB Corporation and subsidiary maintainedeffective internal control over financial reporting as of December 31, 2004, based on criteriaestablished in Internal Control - Integrated Framework issued by the Committeeof Sponsoring Organizations of the Treadway Commission (COSO).  CNBCorporation's management is responsible for maintaining effective internalcontrol over financial reporting and for its assessment of the effectiveness ofinternal control over financial reporting. Our responsibility is to express anopinion on management's assessment and an opinion on the effectiveness of thecompany's internal control over financial reporting based on our audit.

     We conducted our audit in accordance with thestandards of the Public Company Accounting Oversight Board (United States).  Those standardsrequire that we plan and perform the audit to obtain reasonable assurance aboutwhether effective internal control over financial reporting was maintained inall material respects.  Our audit included obtaining an understanding ofinternal control over financial reporting, evaluating management's assessment,testing and evaluating the design and operating effectiveness of internalcontrol, and performing such other procedures as we considered necessary in thecircumstances.  We believe that our audit provides a reasonable basis forour opinion.

     A company's internal control over financialreporting is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statementsfor external purposes in accordance with generally accepted accountingprinciples.  A company's internal control over financial reportingincludes those policies and procedures that (1) pertain to the maintenance ofrecords that, in reasonable detail, accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally acceptedaccounting principles, and that receipts and expenditures of the company arebeing made only in accordance with authorizations of management and directorsof the company; and (3) provide reasonable assurance regarding prevention ortimely detection of unauthorized acquisition, use, or disposition of thecompany's assets that could have a material effect on the financial statements.

     Because of its inherent limitations, internalcontrol over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods aresubject to the risk that controls may become inadequate because of changes inconditions, or that the degree of compliance with the policies or proceduresmay deteriorate.

     In our opinion, management's assessment that CNBCorporation and subsidiary maintained effective internal control over financialreporting as of December 31, 2004, is fairly stated, in all material respects, based oncriteria established in Internal Control - Integrated Framework issued byCOSO.  Furthermore, in our opinion, CNB Corporation and subsidiary maintained,in all material respects, effective internal control over financial reportingas of December 31, 2004,based on criteria established in Internal Control - Integrated Framework issuedby COSO.

     We have also audited, in accordance with thestandards of the Public Company Accounting Oversight Board (United States), the consolidatedfinancial statements of CNB Corporation and subsidiary and our report dated January 26, 2005 which expressed anunqualified opinion.

/s/Elliott Davis, LLC      

Columbia, South CarolinaJanuary 26, 2005

63

ITEM9A.  CONTROLS AND PROCEDURES - Continued

(d) There were no significant changes in the Company's internal controls or inother factors that could significantly affect these controls subsequent to thedate of their evaluation, including any corrective actions with regard tosignificant deficiencies and material weaknesses.

ITEM 9B. - OTHER INFORMATION

None.

64

PART IIIITEM 10.  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANTMANAGEMENT OF THE COMPANY

Directors     The Directors and Nominees for election to theBoard of Directors of the Company are as follows:

Name (Age)

DirectorSince

Proposed  TermExpires

Present  Principal  Occupation

    Company    Stock Owned  Number      % 

  Willis J. Duncan       (78)W. JenningsDuncan       (49)  James W. Barnette, Jr.       (60)  *Harold G. Cushman, Jr.       (75)*****H. Buck Cutts       (63)

  1958  1984  1984  1963  2002

  2006  2007  2007  2005  2005

  Chairman of the Board  of the Company and of   the Bank since 1988.  President of the  Company and of the Bank  since 1988.  President of Surfside  Rent Mart, Inc., a  general rental company  located in Surfside    Beach, South Carolina,  since 1992.  Retired in 1995 as  President of Dargan  Construction Company,  Inc.  Retired.  Previously,   Mr. Cutts was an  attorney in private  practice in Surfside    Beach, South Carolina.

   32,499(1)   25,626(2)    6,411(3)   24,849(4)  17,198(5)

  4.12  3.25   .81  3.15  2.18

65

ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OFTHE REGISTRANTMANAGEMENT OF THE COMPANY (continued)

Name (Age)

DirectorSince

Proposed  TermExpires

Present  PrincipalOccupation

    Company    Stock Owned  Number      % 

  Paul R. Dusenbury       (46)  *Robert P. Hucks       (59)  Richard M. Lovelace, Jr.       (58)  John K. Massey       (90)  *Howard B. Smith, III       (56)

  1997  1993  1984  1959  1993

  2006  2005  2006  2007  2005

  Treasurer of the  Company since 1985 and  Vice President and   Cashier of the Bank  since 1988.  Executive Vice  President of the  Company and of the  Bank since 1988.  Attorney in private  practice in Conway,South Carolina.  Retired.  Executive in Residence  for the Wall College of  Business, Coastal Carolina University.  Previously, Mr. Smith   was a Practicing   Certified Public  Accountant with Smith,  Sapp,Bookhout,Crumpler,  & Callihan, P.A. in Myrtle Beach, South        Carolina.

    1,211(6)    2,475(7)    1,774(8)    6,232(9)    3,995 

   .15   .31   .22   .79   .51

* Nominee for election to the Board of Directors.

66

       Exceptas indicated below, each director or director nominee of the company has solevoting and investment power with respect to all shares of Company stock ownedby such director or director nominee.  

       (1) Includes 13,638 shares held by HarrietteB. Duncan (wife).

       (2) Includes 1,831 shares held byRobin F. Duncan (wife); 3,995 shares held by Ann Louise Duncan (daughter);3,995 shares held by Willis Jennings Duncan, V (son); and 3,995 shares held byMargaret Brunson Duncan (daughter).

       (3) Includes 5,308 shares held byJanet J. Barnette (wife).

       (4) Includes 23,100 shares held bythe Cushman Family Limited partnership and 646 shares held by Dianne C. Cushman(wife).

       (5) Includes 1,422 shares held byBrenda M. Cutts (wife).

       (6) Includes 335 shares held byJennifer S. Dusenbury (wife); 88 shares held by Elena Cox Dusenbury (daughter);and 88 shares held by Sarah Cherry Dusenbury (daughter). 

       (7) Includes 440 shares held byWillie Ann Hucks (wife).

       (8) Includes 1,669 shares held byRebecca S. Lovelace (wife).

       (9) Includes 1,744 shares held by theestate of Bertha T. Massey (wife). 

       Each director or director nominee ofthe Company has been engaged in his principal occupation of employment asspecified above for five (5) years or more unless otherwise indicated.

       W. Jennings Duncanis Willis J. Duncan's son.  No other family relationships exist among theabove named directors or officers of the Company.

67

Audit Committee Financial Expert

       The Company's board of directors hasdetermined that the Company has at least one "audit committee financialexpert," as that term is defined by Item 401(h) of Regulation S-K promulgatedby the Securities and Exchange Commission, serving on its auditcommittee.  Mr. Howard B. Smith, III meets the terms of thedefinition.  Pursuant to the terms of Item 401(h) of Regulation S-K, aperson who is determined to be an "audit committee financial expert" will notbe deemed an expert for any purpose as a result of being designated oridentified as an "audit committee financial expert" pursuant to Item 401, andsuch designation or identification does not impose on such person any duties,obligations or liability that are greater than the duties, obligations andliability imposed on such person as a member of the audit committee and boardof directors in the absence of such designation or identification. Further, the designation or identification of a person as an "audit committeefinancial expert" pursuant to Item 401 does not affect the duties, obligationsor liability of any other member of the audit committee or board of directors.

68

ExecutiveOfficers:

       The Executive Officers of the Companyare as follows:

                                  Position(s)Currently         Name             Age       WithThe Company            Willis J.Duncan       78     Chairmanof the Board of the                                   Companyand the Bank    W. JenningsDuncan     49     Presidentand Director of the                                 Company and the Bank    Robert P.Hucks        59     ExecutiveVice President and                                  Directorof the Company and the Bank    Paul R.Dusenbury      46     Treasurerand Director of the Company;                                  Vice-President,Cashier, and Director                                  ofthe Bank                                  (ChiefFinancial Officer and                                   ChiefAccounting Officer)

       Allexecutive officers serve at the pleasure of the Board of Directors of theCompany.  Each executive officer has been employed by the Company anddesignated an executive officer since the Company's formation in 1985.

Code of Ethics

       The Corporation adopted a code ofethics (as defined by C.F.R. 229.406) that applies to its principal executiveofficer and principal financial officer.  A copy of the Code of Ethics wasincluded as Exhibit 99 with a Form 8-K dated August 13, 2004.

SECTION16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

     Section 16(a) of the Securities Exchange Act of1934 requires the Company's directors and executive officers and persons whoown more than ten percent of a registered class of the Company's equitysecurities to file reports of ownership on Form 3 and changes in ownership onForm 4 or 5 with the Securities and Exchange Commission (the "SEC")and the National Association of Securities Dealers.  Such officers,directors, and 10 percent shareholders are also required by SEC rules to furnishthe Company with copies of all Section 16(a) forms that they file.

     Based solely on its review of copies of suchreports received or written representations from certain reporting persons, theCompany believes that during the fiscal year ended December 31, 2004, all Section 16(a)filing requirements applicable to its officers, directors, and 10 percentshareholders were complied with.

69

ITEM 11.  COMPENSATION OF DIRECTORS ANDEXECUTIVE OFFICERS

SummaryCompensation Table

                      AnnualCompensation                                                                        

  Name andPrincipal Position

Year

    ($)Salary

   ($)   Bonus

   Other     Annual(1)Compensation

    All Other Compensation

W.   Jennings  Duncan  President and   Director of the Bank  Robert P. Hucks  Executive Vice  President and  Director of the Bank  Paul R. Dusenbury  Vice President,   Cashier and Director  of Bank

  2004  2003  2002  2004  2003  2002  2004  2003  2002

  183,360  176,304  167,112  162,096  155,844  147,720  150,300  144,504  136,968

  28,504  27,446  28,156  25,314  24,377  25,005  23,545  22,676  23,257

     (1)     (1)     (1)     (1)     (1)     (1)     (1)     (1)     (1)

     20,380(2)     19,143     17,459     29,503(3)     27,058     23,657     15,072(4)     14,351     13,221

(1)  The value of perquisites did not exceed the lessor of $50,000 or10% of the total      annual salary and bonus reported.

(2)  The amount is comprised of $14,669 contributed by the Bank tothe Bank's profit-     sharing and savings defined contribution plan,all of which is vested, and $5,711     accrued in connection with The Conway NationalBank Executive Supplemental Income     Plan (ESI).

(3)  The amount is comprised of $12,968 contributed by the Bank tothe Bank's profit-     sharing and savings defined contribution plan,all of which is vested, and $16,535     accrued in connection with The Conway NationalBank Executive Supplemental Income     Plan (ESI).

(4)  The amount is comprised of $12,024 contributed by the Bank tothe Bank's profit-     sharing and savings defined contribution plan,all of which is vested, and $3,048     accrued in connection with The Conway NationalBank Executive Supplemental Income     Plan (ESI).

                                            70

COMPENSATION OFDIRECTORS AND EXECUTIVE OFFICERS (continued)

                                 PENSIONPLAN DISCLOSURE

        The Bank has a definedcontribution pension plan covering all employees who have attained agetwenty-one and have a minimum one year of service.  Upon ongoing approvalof the Board of Directors, the Bank matches one hundred percent of employeecontributions up to three percent of employee contributions of salary deferredand fifty percent of employee contributions in excess of three percent and upto five percent of salary deferred.  The Board of Directors may also makediscretionary contributions to the Plan.  For the years ended December 31, 2004, 2003, and 2002,$595,000, $558,000, and $510,000, respectively, was charged to operations underthe plan.

Executive Supplemental Income Plan and Phantom Stock Plan

       The Board of Directors of the Bankprovides supplemental benefits to certain key officers, under The ConwayNational Bank Executive Supplemental Income (ESI) Plan and a Phantom StockPlan. A copy of said plans was filed as Exhibits 10(a) and 10(b) with anamended Form 10-K Annual Report dated June 10, 2002.  The followingsummary discussion of certain provisions of these plans is qualified in itsentirety by reference to the plans. These plans are not qualified under theInternal Revenue Code.  These plans are unfunded, however, certainbenefits under the ESI Plan are informally and indirectly funded by insurancepolicies on the lives of the covered employees.  

       Under the provisions of the ESI Plan,the Bank and the participating employees will execute agreements providing eachemployee (or his beneficiary, if applicable) with a pre-retirement deathbenefit and a post-retirement annuity benefit.  The ESI Plan is designedto provide participating employees with a pre-retirement benefit based on apercentage of the employee's current compensation.  The ESI agreement'spost-retirement benefit is designed to supplement a participating employee'sretirement benefits from Social Security in order to provide the employee witha certain percentage of his final average income at retirement age.  Uponnormal retirement age, Willis J. Duncan, W. Jennings Duncan, Robert P. Hucks,and Paul R. Dusenbury are eligible to receive fifteen annual payments of$9,650, $37,178, $30,827, and $28,379, respectively. While the employee isreceiving benefits under the ESI Agreement, the agreement will prohibit theemployee from competing with the Bank and will require the participatingemployee to be available for consulting work for the Bank.  The ESIAgreement may be amended or revoked at any time prior to the participatingemployee's death or retirement, but only with the mutual written consent of thecovered employee and the Bank.  The ESI Agreements require that theparticipating employee be employed at the Bank at the earlier of death orretirement to be eligible to receive, or have his beneficiary receive, benefitsunder the agreement.  

       Under the Phantom Stock Plan, certainkey employees are provided phantom stock units by the Bank at its discretion.Each unit is equivalent in value to one share of the Company's stock at marketvalue.  The number of units shall be equitably adjusted and restated toreflect changes in the number of common shares outstanding resulting from stocksplits, stock dividends, stock issuances, and stock redemptions.  Thenumber of units also shall be equitably adjusted and restated to reflect cashdividends paid to Company common shareholders. The employee receivesappreciation, if any, in the market value of the unit as compared to theinitial value per unit.

71

COMPENSATION OF DIRECTORS AND EXECUTIVE OFFICERS (continued)

Compensation Committee Interlocks and Insider Participation 

      The members of the Executive Committee ofthe Board, which serves as the Compensation Committee, are Harold G. Cushman,Jr., Willis J. Duncan, and W. Jennings Duncan.  Messrs, Willis J. Duncanand W. Jennings Duncan are executive officers of the Company and the Bank.

Director Compensation

     In 2004 Directors who are not Bank officersreceived $500 for each monthly meeting of the Board of Directors and anadditional $200 for each committee meeting attended.  The Chairman of theAudit Committee received an additional $75 per Audit Committee meetingattended.  Beginning in 2005, Directors who are not Bank officers willreceive $750 for each monthly meeting of the Board of Directors and anadditional $250 for each committee meeting attended.  The Chairman of theAudit Committee will continue to receive an additional $25 per Audit Committeemeeting attended.

****72

ITEM 12.  SECURITY OWNERSHIP OF CERTAINBENEFICIAL OWNERS AND MANAGEMENTAND RELATED STOCKHOLDER MATTERS

         The following table setsforth as of December 31, 2004, certain information regarding the ownership ofCompany Stock of all executive officers and directors of the Company.  Noshareholder is known to the management of the Company to be the beneficialowner of more than five (5%) percent of the Company Stock.  The CompanyStock is the Company's only class of voting securities.

Name and Addressof Beneficial Owner

Amount and Nature ofBeneficial Ownership(1)

Percent of Class

  All Executive Officers and Directors as a Group

(10 persons)  

122,270

15.5%

                 

(1)  For a description of the amount and nature of  ownership of the directors       of the Company, see "Management of the  Company -Directors."

Securities Authorized for Issuance under Equity Compensation Plans

        The Company does not have anycompensation plans (including individual compensation arrangements) under whichequity securities of the registrant are authorized for issuance.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATEDTRANSACTIONS

      Directors,principal shareholders, and Executive Officers of the Company and the Bank arecustomers of and had transactions with the Bank in the ordinary course ofbusiness.  Included in such transactions are outstanding loans andcommitments, all of which were made on comparable terms, including interestrates and collateral as those prevailing at the time for other customers of theBank, and did not involve more than normal risk of collectibility or present otherunfavorable features.  Richard M. Lovelace, a director of the Company andthe Bank has provided legal services to the Company and the Bank in the pastand is expected to continue to do so in the future.

73

ITEM 14.  PRINCIPALACCOUNTANT FEES AND SERVICES

            ElliottDavis, LLC served as the Company's auditor during the fiscal years ended December 31, 2004 and 2003.  Thefollowing table shows the fees that the Company paid or accrued for the auditand other services provided by Elliott Davis, LLC for the fiscal years ended December 31, 2004 and 2003.

Year EndedDecember   31, 2004

Year  EndedDecember   31, 2003

  Audit Fees  Audit-Related Fees  Tax Fees  All Other Fees    Total

  $46,500  27,500  6,390 11,502$91,892

  $43,400  5,500  4,800  8,400$62,100

AuditFees. This category includes the aggregate fees billed for professional servicesrendered by Elliott Davis, LLC for the audit of the Company's annualconsolidated financial statements for the years ended December 31, 2004 and2003 and for reviews of the financial statements included in the Company'sreports on Forms 10-Q and 10-K.  These fees include amounts paid orexpected to be paid for each respective year's audit. Reimbursements for traveland other out-of-pocket expenses are not included.

Audit Related Fees.  This category includes the aggregate fees billedfor non-audit services, exclusive of the fees disclosed relating to audit fees,rendered by Elliott Davis, LLC during the fiscal years ended December 31, 2004 and 2003.  Theseservices principally include the assistance and issuance of consents forvarious filings with the SEC and for the examination of the Company'sassertions regarding internal controls in accordance with the Federal DepositInsurance Corporation Improvement Act and the Sarbanes-Oxley Act.

Tax Fees. This category includes the aggregate fees billed for tax services rendered byElliott Davis, LLC during the fiscal years ended December 31, 2004 and 2003.  Theseservices were primarily for the preparation of state and federal tax returnsfor the Company and its subsidiary.  Additionally, Elliott Davis, LLCassists the Company with tax compliance and provides limited tax consultationservices.

All Other Fees.  This category includes the aggregate fees billed for all otherservices, exclusive of the fees disclosed above, rendered by Elliott Davis, LLCduring the fiscal years ended December 31, 2004 and December 31, 2003. These other services consisted of audits of the 401(k) plan.

AUDIT COMMITTEE PRE-APPROVAL OF AUDIT AND PERMISSIBLE NON-AUDIT SERVICES OFINDEPENDENT AUDITORS.  The Audit Committee substantially pre-approvesall audit and non-audit services and fees provided by the independentauditors.  These services include audit services, audit-related services,tax services and other services.  The terms and related fees of the 401(k)engagement are reported to the Audit Committee.

All of the principal accounting services and fees reflected in the table,unless otherwise noted, were reviewed and approved by the Audit Committee.Substantially all of the services were performed by individuals employed by theindependent auditor.

74

PART IV.ITEM 15.   EXHIBITS, FINANCIAL STATEMENT SCHEDULES ANDREPORTS ON FORM 8-K

(a)  The following exhibits, financial statements and financialstatement schedules are filed as part of this report:

FINANCIAL STATEMENTS

Report of Independent Registered Accounting FirmConsolidated Statements of Condition - December 31, 2004 and 2003Consolidated Statements of Income - Years ended December 31, 2004,   2003, and 2002Consolidated Statements of Changes in Stockholders' Equity - Years   ended December 31, 2004, 2003, and 2002Consolidated Statements of Comprehensive Income - Years ended December 31,  2004, 2003, and 2002.Consolidated Statements of Cash Flows - Years Ended December 31,   2004, 2003, and 2002Notes to Consolidated Financial Statements

FINANCIAL STATEMENT SCHEDULES

All financial statement schedules have been omitted from this Annual Reportbecause the required information is presented in the financial statements or inthe notes thereto or the required subject matter is not applicable.

EXHIBITS

SeeExhibit Index.

(b)  Reports on Form 8-K - Noreports on Form 8-K were filed during the last quarter of the period covered in this report.

75

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities ExchangeAct of 1934, the registrant has duly caused this report to be signed on itsbehalf by the undersigned, thereunto duly authorized.

                                        CNBCorporation                                        /s/W. Jennings Duncan, President                                        W.Jennings Duncan, President

Pursuant to the requirements of the Securities Exchange Act of 1934, thisreport has been signed below by the following persons on behalf of theregistrant and in the capacities indicated on March 8, 2005.

    Signature                                  Capacity/s/Willis J. Duncan_________Willis J. Duncan                         Chairman of the Board/s/W. Jennings Duncan_______W. Jennings Duncan                       President and Director/s/Robert P. Hucks__________Robert P. Hucks                          ExecutiveVice President and                                         Director/s/Paul R. Dusenbury________Paul R. Dusenbury                        Treasurerand Director                                        (ChiefFinancial Officer                                         andChief Accounting Officer)/s/Virginia B. Hucks________Virginia B. Hucks                        Secretary/s/James W. Barnette, Jr.___James W. Barnette, Jr.                   Director/s/Harold G. Cushman, Jr.___Harold G. Cushman, Jr.                   Director/s/H. Buck Cutts____________H. Buck Cutts                            Director/s/John K. Massey___________John K. Massey                           Director 

76

EXHIBIT INDEX

ExhibitNumber     3     Articles ofIncorporation - The Articles of Incorporation of the Company are          incorporated hereinby reference to Exhibit 3(a) which was filed with a Form 8-A          dated June 24, 1998.

          By-laws of theCompany - The By-laws of the Company are incorporated herein by          reference toExhibit 3(b) which was filed with a Form 10-Q Quarterly Report          dated June 30, 1997.

   10.1   Executive Supplemental Income Plan -The Executive Supplemental Income Plan is          incorporated hereinby reference to Exhibit 10(a) which was filed with a Form          10-K/A AnnualReport dated June 10, 2002

   10.2   Long Term Deferred Compensation Planentitled "Phantom Stock Plan" - The Long          Term DeferredCompensation Plan is incorporated herein by reference to Exhibit          10(b) which wasfiled with a Form 10-K/A Report dated June 10, 2002.

   14.1   Code of Ethics Policy - The ConwayNational Bank Code of Ethics Policy is          incorporated hereinby reference to Exhibit 99 which was filed with a Form 8-K          dated August 13, 2004.

   22     Subsidiaries of theRegistrant - Incorporated herein by reference to Exhibit 22          which was filed with a Form 10-K Annual Report dated March 28, 1986.

   31.1   Certification of Principal ExecutiveOfficer required by Rule 13a-14(a) or Rule          15d-14(a) of theSecurities Exchange Act of 1934, as adopted pursuant to Section          302 of theSarbanes-Oxley Act of 2002.

   31.2   Certification of Principal FinancialOfficer required by Rule 13a-14(a) or Rule          15d-14(a) of theSecurities Exchange Act of 1934, as adopted pursuant to Section          302of the Sarbanes-Oxley Act of 2002.

   32.1   Certification of Chief ExecutiveOfficer pursuant to 18 U.S.C. Section 1350, as          adopted pursuant toSection 906 of the Sarbanes-Oxley Act of 2002.

   32.2   Certification of Chief FinancialOfficer pursuant to 18 U.S.C. Section 1350, as          adopted pursuant toSection 906 of the Sarbanes-Oxley Act of 2002.** |