FORM 10-Q
                        SECURITIES AND EXCHANGE COMMISSION
                              Washington, D.C. 20549
Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934
For the quarterly period endedSeptember 30, 2000                                        OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934
For the transition period from to                                 
For Quarter Ended September 30, 2000  Commission file number:2-96350CNB Corporation
             (Exact name of registrant as specified in its charter)South Carolina 57-0792402(State or other jurisdiction of               (I.R.S. Employer
incorporation or organization)                 Identification No.)P.O. Box 320, Conway, South Carolina 29526(Address of principal executive offices)        (Zip Code)
(Registrant's telephone number, including area code):(843) 248-5721
     Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X.  No . 
The number of shares outstanding of the issuer's $10.00 par value common stock as of September 30, 2000 was 715,812.
<PAGE>
CNB Corporation
                                          
                             Page
PART I.    FINANCIAL INFORMATION
Item 1.    Financial Statements:
           Consolidated Balance Sheets as of September 30, 2000,         1
           December 31, 1999 and September 30, 1999
           Consolidated Statement of Income for the Three Months         2
           and Nine Months Ended September 30, 2000 and 1999
           Consolidated Statement of Comprehensive Income                3
           for the Three Months and Nine Months Ended
           September 30, 2000 and 1999 
           Consolidated Statement of Changes in Stockholders'            4
           Equity for the Nine Months Ended September 30, 2000
           and 1999
           Consolidated Statement of Cash Flows for the Nine Months      5
           Ended September 30, 2000 and 1999
           Notes to Consolidated Financial Statements                 6-13
Item 2.    Management's Discussion and Analysis of Financial         14-23
           Condition and Results of Operations
PART II.   OTHER INFORMATION
Item 6.    Exhibits and Reports on Form 8-K                             24
SIGNATURE                                         
                      24
<PAGE>

CNB Corporation and Subsidiary
Consolidated Balance Sheets
(All Dollar Amounts, Except Per Share Data, in Thousands)
(Unaudited)

|ASSETS:
    Cash and due from banks
    Interest bearing deposits with banks
    Investment Securities
      (Fair values of $43,160 at
       Sept. 30, 2000, $54,430 at 
       December 31, 1999, and $59,075
       at Sept. 30, 1999)
    Securities Available for Sale
      (Amortized cost of $89,651 at
       Sept. 30, 2000, $90,834 at
       December 31, 1999, and $89,760
       at Sept. 30, 1999)
    Federal Funds sold and securities
       purchased under agreement
       to resell
    Loans:
       Gross Loans
       Less unearned income
         Loans, net of unearned income
       Less reserve for possible
          loan losses
         Net loans
    Bank premises and equipment
    Other assets
Total assets
LIABILITIES AND STOCKHOLDERS' EQUITY:
    Deposits:
       Non-interest bearing
       Interest-bearing
          Total deposits
    Federal funds purchased and
       securities sold under agreement
       to repurchase
    Other short-term borrowings
    Other liabilities
 Total liabilities
   Stockholders' equity:
       Common stock, par value $10 per
       share: Authorized 1,500,000 in
       2000 and 1999; issued 718,246
       in 2000 and 598,687 in 1999
       Surplus
       Undivided Profits
       Net Unrealized Holding
       Gains (Losses) on
        Available-For-Sale Securities
         Less: Treasury stock
            Total stockholders' equity
           Total liabilities
             and stockholders' equity | Sept. 30,
  2000  
$ 18,248 
0 
 43,365 
88,592 
14,125 
288,318 (74)
 288,244(3,843)284,401 
8,819 8,424 
 465,974
74,782 301,572 
 376,354
30,194 
7,454 2,896 
 416,898
7,182 
34,732 
8,021 
(636)(223)
  49,076 
 465,974 | December 31,
 1999   
$ 20,259 
0 
54,868 
89,151 
11,150 
267,416 (275)
 267,141(3,451)263,690 
8,504 8,080 
 455,702
72,728 302,775 
 375,503
27,477 
3,809 5,201 
 411,990
5,987 
24,546 
14,467 
(1,011)(277)
  43,712 
 455,702 | Sept 30,
 1999  
$ 17,252 
0 
59,024 
88,863 
35,925 
257,120 (410)
 256,710(3,433)253,277 
8,217 7,563 
 470,121
77,157 304,384 
 381,541
36,183 
5,091 2,407 
 425,222
5,987 
24,546 
15,156 
(539)(251)
  44,899 
 470,121
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

-1-

<PAGE>

CNB Corporation and Subsidiary
Consolidated Statement of Income
(All Dollar Amounts, Except Per Share Data, in Thousands)
(Unaudited)

|Interest Income:
  Interest and fees on loans
  Interest on investment securities:
    Taxable investment securities
    Tax-exempt investment securities
    Other securities
  Interest on federal funds sold and securities
    purchased under agreement to resell
      Total interest income
Interest Expense:
  Interest on deposits
  Interest on federal funds purchased and securities
    sold under agreement to repurchase
  Interest on other short-term borrowings
      Total interest expense
  Net interest income
  Provision for possible loan losses
  Net interest income after provision for possible
    loan losses
  Other income:
    Service charges on deposit accounts
    Gains/(Losses) on securities
    Other operating income
        Total other income
  Other expenses:
    Salaries and employee benefits
    Occupancy expense
    Other operating expenses
        Total operating expenses
  Income before income taxes
    Income tax provision
  Net income
   *Per share data:
    Net income per weighted average shares
     outstanding
    Cash dividend paid per share
    Book value per actual number of shares
     outstanding
    Weighted average number of shares outstanding
    Actual number of shares outstanding
   *Restated for a 20% stock dividend issued during
    2000. | Three Months Ended 
Sept. 30,                                                                                                                                                                         | Nine Months Ended 
Sept. 30,                                                                                                                                                                                
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|2000  
$  6,543
1,705
189
28181
   8,6463,340
38764
   3,791
   4,855170
   4,685688
0534
   1,222   2,013
     434991
   3,438   2,469804
   1,665
$   2.32
$      0
$  68.56
 715,746
 715,812                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 1999  
$  5,589
1,974
178
14428
   8,1833,025
33421
   3,380   4,803200
  4,603634
0492
   1,126   1,852
     401891
   3,144
   2,585
     843
   1,742
$   2.43
$      0
$  62.76
 716,530
 715,444 | 2000  
$  19,124
5,328
574
78334
  25,4389,450
1,059203
  10,712
  14,726650
  14,0762,056
01,337
   3,393   6,059
   1,3592,731
  10,149   7,3202,389
   4,931
$   6.89
$      0
$  68.56
 715,746
 715,812

-2-

<PAGE>

CNB Corporation and Subsidiary
Consolidated Statements of Comprehensive Income
(All Dollar Amounts, Except Per Share Data, in Thousands)
(Unaudited)

|Net Income                                                                                                                                          | Three Months     
Ended        
September 30, | Nine Months    
Ended       
September 30,
|--------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------- | ------------------------------------------
|2000                                                                                                                                                | 1999                                          | 2000                                      
|$1,665                                                                                                                                              | $1,742                                        | $4,931                                    
|Other comprehensive income, net of tax
    Unrealized gains/(losses)
      on securities:
    Unrealized holding gains/(losses)
      during period | 494                                           | 86                                        
|Net Comprehensive Income                                                                                                                            | $2,159                                        | $1,828                                    

-3-

<PAGE>

CNB Corporation and Subsidiary
Consolidated Statement of Changes in Stockholders' Equity
(All Dollar Amounts in Thousands)
(Unaudited)

|Common Stock:
($10 par value; 1,500,000 shares authorized)
Balance, January 1
Issuance of Common Stock
Stock Dividend
Balance at end of period                                                                                        | Nine Months Ended
September 30,       
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------
|2000                                                                                                                                                                                                                                  | 1999                                  
|5,987 
None 1,195 
  7,182                                                                                                                                                                                                            | 5,987 
None None 
 5,987              
|Surplus:
Balance, January 1
Issuance of Common Stock
Stock Dividend
Gain on sale of Treasury stock
Balance at end of period                                                                                                           | 24,546 
None 
10,163 23 
 34,732      
|Undivided profits:
Balance, January 1
Net Income
Stock Dividend
Cash dividends declared
Balance at end of period                                                                                                                      | 14,467 
4,931 
(11,377) None 
  8,021 
|Net unrealized holding gains/(losses) on
Available-for-sale securities:
Balance, January 1
Change in net unrealized gains/(losses)
Balance at end of period                                                                           | (1,011)375 
  (636)                   
|Treasury stock:
Balance, January 1
(2,722 shares in 2000; 2,066 shares in 1999)
Purchase of treasury stock
Reissue of treasury stock
Balance at end of period
(2,434 shares in 2000; 2,478 shares in 1999)
Total stockholders' equity | (277)
(156)210 
  (223)
       
49,076

Note:  Columns may not add due to rounding

-4-

<PAGE>

CNB CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)

|OPERATING ACTIVITIES
  Net Income
  Adjustments to reconcile net income to
    net cash provided by operating activities
    Depreciation
    Provision for loan losses
    Provision for deferred income taxes
    Loss (gain) on sale of investment
     securities
    (Increase) decrease in accrued interest
     receivable
    (Increase) decrease in other assets
    (Decrease) increase in other liabilities                                                                                                                        | For the nine-month period ended
           September 30,     2000           1999
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------
|$  4,931 
393 
650 
99 
0 
(388)
(55)(44)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $  4,708 
394 
530 
(1,030)
0 
(315)
75 (1,505)                                 
|Net cash provided by operating
          activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 5,586                                                                           
|INVESTING ACTIVITIES
  Proceeds from sale of investment securities
   available for sale
  Proceeds from maturities of investment
   securities held to maturity
  Proceeds from maturities of investment
   securities available for sale
  Purchase of investment securities held to
   maturity
  Purchase of investment securities
   available for sale
  Decrease (increase) in interest-bearing
    deposits in banks
  (Increase) decrease in federal funds sold
  (Increase) decrease in loans
  Premises and equipment expenditures | 0 
11,510 
6,100 
0 
(5,548)
0 
(2,975)
(21,103)(708)                           
|Net cash provided by (used for)
          investing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | (12,724)                                                                        
|FINANCING ACTIVITIES
  Dividends paid
  Increase (Decrease) in deposits
  (Decrease) increase in securities sold
    under repurchase agreement
  (Decrease) increase in other
    short-term borrowings                                                                                                                                                                                                                                                                                                                                      | (2,086)
851 
2,717 3,645                                                        
|Net cash provided by (used for)
          financing activities
        Net increase (decrease) in cash
          and due from banks
CASH AND DUE FROM BANKS, BEGINNING OF YEAR
CASH AND DUE FROM BANKS, SEPT. 30, 2000 AND 1999
CASH PAID (RECEIVED) FOR:
  Interest
  Income taxes                                                                                                                                                                                                                                                           | 5,127
(2,011)20,259 
$ 18,248 
$ 11,017 
$  2,420                               

-5-

<PAGE>

CNB CORPORATION AND SUBSIDIARY (The "Corporation")                            
CNB CORPORATION (The "Parent")                                     
           
THE CONWAY NATIONAL BANK (The "Bank")                                    
     
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS                                   
 
(All Dollar Amounts in Thousands)                                     
        NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES                           Net income per share - Net income per share is computed on the basis of the dividend-adjusted weighted average number of common shares outstanding, 715,746 for the nine-month period ended September 30, 2000 and 716,530 for the nine-month period ended
September 30, 1999.                                   NOTE 2 - RESTRICTIONS ON CASH AND DUE FROM BANKS                              
The Bank is required to maintain average reserve balances either at the Bank or on deposit with the Federal Reserve Bank. The average amount of these reserve balances for the nine-month period ended September 30, 2000 and for the years ended December 31,
1999 and 1998 were approximately $8,905, $8,300, and $6,839, respectively.

6
<PAGE>NOTE 3 - INVESTMENT SECURITIES                                    
            
Investment securities with a par value of approximately $77,860 at September 30, 2000 and $82,325 at December 31, 1999 were pledged to secure public deposits and for other purposes required by law.         
                     
The following summaries reflect the book value, unrealized gains and losses, approximate market value, and tax-equivalent yields of investment securities at September 30, 2000 and at December 31, 1999.

|AVAILABLE FOR SALE
  United States Treasury
   Within one year
   One to five years                                                               | September 30, 2000 Book  Unrealized Holding Fair          
 Value   Gains   Losses   Value Yield(1)
|------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------
|$ 2,99611,078
 14,074                                                                                                                             | $    -1
     1                                                                                     
|Federal agencies
   Within one year
   One to five years                                                                                          | 21,48849,582
 71,070                                                                               
|State, county and 
  municipal
   One to five years
   Six to ten years
   After ten years
  Other Securities (Equity)
  Total available for sale | 259
1,7541,100
  3,113
  1,394
$89,651                                                             
|HELD TO MATURITY
  United States Treasury
   Within one year
   One to five years                                                                 | 1,007
  1,007                                                                                      
|Federal agencies
   Within one year
   One to Five years                                                                                          | 14,03415,096
 29,130                                                                               
|State, county and
  municipal
   Within one year
   One to five years
   Six to ten years
   
   Total held to maturity                           | 2,290
6,5734,365
 13,228
$43,365                                                                   

(1) Tax equivalent adjustment based on a 34% tax rate.                        
As of the quarter ended September 30, 2000, the Bank did not hold any securities of an issuer that exceeded 10% of stockholders' equity. The net unrealized holding gains/(losses) on available-for-sale securities component of capital is $(636) as of
September 30, 2000.                                
                                          
  7
<PAGE>NOTE 3 - INVESTMENT SECURITIES (Continued)

|AVAILABLE FOR SALE
  United States Treasury
   Within one year
   One to five years                                                    | December 31, 1999 Book  Unrealized Holding  Fair           
 Value    Gains   Losses  Value   Yield(1)
|-------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------
|$ 4,98410,117
 15,101                                                                                                                  | $   11-
    11                                                                                        
|Federal agencies
   Within one year
   One to five years                                                                               | 11,46161,746
 73,207                                                                                  
|State, county and 
  municipal
   One to five years                                                                                    | 1,132                                                                                                 
|Other-restricted
   Federal Reserve
    Bank Stock
  Total available for sale                                                          | 1,394
$90,834                                                                                         
|HELD TO MATURITY
  United States Treasury
   Within one year
   One to five years                                                      | 3,0001,012
  4,012                                                                                    
|Federal agencies
   Within one year
   One to five years                                                                               | 7,61328,188
 35,801                                                                                   
|State, county and
  municipal
   Within one year
   One to five years
   Six to ten years
   After ten years
   Total held to maturity | 1,759
8,342
4,315639
 15,055
$54,868                                                                  

(1) Tax equivalent adjustment based on a 34% tax rate                         
As of the quarter ended December 31, 1999, the Bank did not hold any securities of an issuer that exceeded 10% of stockholders' equity. The net unrealized holding gains/(losses) on available-for-sale securities component of capital is $(1,011) as of
December 31, 1999.                               
                                          
   8
<PAGE>NOTE 4 - LOANS AND ALLOWANCE FOR LOAN LOSSES                                  

     The following is a summary of loans at September 30, 2000 and December 31, 1999 by major classification:

|Real estate loans - mortage
                  - construction
Commercial and industrial loans
Loans to individuals for household,
  family and other consumer expenditures
Agriculture
All other loans, including overdrafts
     Gross loans
       Less unearned income
       Less reserve for loan losses
         Net loans | September 30, December 31,2000    1999                                      
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------
|$186,426 
21,048 
43,952 
33,759 
1,470 1,663 
 288,318(74)(3,843)
 284,401                                                                                                                                                                                                                                                     | $163,614 
21,013 
45,742 
33,864 
1,447 1,736 
 267,416(275)(3,451)
 263,690

9

<PAGE>

NOTE 4 - LOANS AND ALLOWANCE FOR LOAN LOSSES, continued

Changes in the reserve for loan losses for the quarter ended and nine-month period ended September 30, 2000 and 1999 and the year ended December 31, 1999 are summarized as follows:

|Balance, 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/(recoveries)
Additions charge to operations
Balance, end of period | Quarter Ended    Nine Months Ended             
Sept. 30,           Sept. 30,    December 31,
 2000  1999   2000  1999   1999
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------
|$ 3,828
49
48116
$   213$    12
046
$    58
$   155
$   170
$ 3,843                                                                                                                                                                                                                                                                                                                                                   | $ 3,377105
0110
$   215
$    17
1044
$    71
$   144
$   200
$ 3,433                                                         
|Ratio of net charge-offs during the period
 to average loans outstanding during the
 period                                                                                                                                                                                                                                                                                                                           | .05%                                                                                                                         

The entire balance is available to absorb future loan losses.

At September 30, 2000 and December 31, 1999 loans on which no interest was being accrued totalled approximately $365 and $527, respectively and foreclosed real estate totalled $0 and $0, respectively; and loans 90 days past due and still accruing
totalled $179 and $142, respectively.
OTHER INTEREST-BEARING ASSETS                                     
                            
As of September 30, 2000, the Company does not have any other interest-bearing assets that would be required to be disclosed under Item III.C.1. or 2. if such assets were loans.

NOTE 5 - PREMISES AND EQUIPMENT                                 
                 
     Property at September 30, 2000 and December 31, 1999 is summarized as follows:

|Land and buildings
Furniture, fixtures and equipment
Construction in progress
Less accumulated depreciation and
   amortization | September 302000  
$ 10,469  
5,825  979  $ 17,273  8,454  $  8,819 | December 31,1999  
$ 10,460  
5,635  469  $ 16,564  8,060  $  8,504
|------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------- | -------------------------------------------------------------------

Depreciation and amortization of bank premises and equipment charged to operating expense was $131 and $393 for the quarter ended and the nine month period ended September 30, 2000, respectively and $576 for the year ended
December 31, 1999.

NOTE 6 - CERTIFICATES OF DEPOSIT IN EXCESS OF $100,000                           
     At September 30, 2000 and December 31, 1999, certificates of deposit of $100,000 or more included in time deposits totaled approximately $64,913 and $71,309 respectively. Interest expense on these deposits was approximately
$975 and $2,746 for the quarter ended and the nine-month period ended September 30, 2000 and $3,513 for the year ended December 31, 1999.                   
         NOTE 7 - SECURITIES SOLD UNDER REPURCHASE AGREEMENTS                             
     At September 30, 2000 and December 31, 1999, securities sold under repurchase agreements totaled approximately $30,194 and $27,477. U.S. Government securities with a book value of $38,570 ($38,116 market value) and $34,588
($34,121 market value), respectively, are used as collateral for the agreements. The weighted-average interest rate of these agreements was 5.04 percent and 4.34 percent at September 30, 2000 and December 31, 1999.       
                      NOTE 8 - LINES OF CREDIT                                     
                   
     At September 30, 2000, the Bank had unused short-term lines of credit to purchase Federal Funds from unrelated banks totaling $23,000. These lines of credit are available on a one to seven day basis for general corporate
purposes of the Bank. All of the lenders 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 may borrow up to $7,000 under the arrangement at a variable interest rate. The note is secured by
U.S. Treasury and Agency Notes with a market value of $7,828 at September 30, 2000. The amount outstanding under the note totaled $2,454 and $3,809 at September 30, 2000 and December 31, 1999, respectively.

The Bank also has a line of credit from the Federal Home Loan Bank of Atlanta for $70 million secured by a lien on the Bank's 1-4 family mortgages. Allowable terms range from overnight to 20 years at varying rates set daily
by the FHLB. An advance of $5,000 and $0 was outstanding at September 30, 2000 and December 31, 1999, respectively.

NOTE 9 - INCOME TAXES                                       
                     
     Income tax expense for the quarter ended September 30, 2000 and September 30, 1999 on pretax income of $2,469 and $2,585 totalled $804 and $843 respectively. Income tax expense for the nine-month period ended September 30,
2000 and September 30, 1999 on pretax income of $7,320 and $7,016 totalled $2,389 and $2,308 respectively. The provision for federal income taxes is calculated by applying the 34% statutory federal income tax rate and increasing or reducing this amount
due to any tax-exempt interest, state bank tax (net of federal benefit), business credits, surtax exemption, tax preferences, alternative minimum tax calculations, or other factor. A summary of income tax components and a reconciliation of income taxes to
the federal statutory rate are included in fiscal year-end reports.                               
                       
                                         11
<PAGE>

NOTE 9 - INCOME TAXES (Continued)                                
                
     The Company accounts for income taxes in accordance with Statement of Financial Accounting Standards ("SFAS") No. 109, "Accounting for Income Taxes".NOTE 10 - COMMITMENTS AND CONTINGENT LIABILITIES                                 
     From time to time the bank subsidiary is a party to various litigation, both as plaintiff and as defendant, arising from its normal operations. No material losses are anticipated in connection with any of these matters at
September 30, 2000.
     Also, in the normal course of business, the bank subsidiary has outstanding commitments to extend credit and other contingent liabilities, which are not reflected in the accompanying financial statements. At September 30,
2000, commitments to extend credit totalled $24,297; financial standby letters of credit totalled $670; and performance standby letters of credit totalled $441. In the opinion of management, no material losses or liabilities are expected as a result of
these transactions.

NOTE 11 - EMPLOYEE BENEFIT PLAN                                    
              
     The Bank has a defined contribution pension plan covering all employees who have attained age twenty-one and have a minimum of one year of service. Upon ongoing approval of the Board of Directors, the Bank matches one
hundred percent of employee contributions up to three percent of employee salary deferred and fifty percent of employee contributions in excess of three percent and up to five percent of salary deferred. The Board of Directors may also make discretionary
contributions to the Plan. For the three-month and nine month period ended September 30, 2000 and years ended December 31, 1999, 1998 and 1997, $109, 336, $423, $378, and $361, respectively, was charged to operations under the plan.NOTE 12 - REGULATORY MATTERS                                     
                
     The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary -
actions by regulators that, if undertaken, could have a direct material effect on the financial statements. The regulations require the Bank to meet specific capital adequacy guidelines that involve quantitative measures of assets, liabilities, and
certain off-balance-sheet items as calculated under regulatory accounting practices. The capital classification is also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.
     Quantitative measures established by regulation to ensure capital adequacy require the maintenance of minimum amounts and ratios (set forth in the table below) of Tier I capital to adjusted total assets (Leverage Capital
ratio) and minimum ratios of Tier I and total capital to risk-weighted assets. To be considered adequately capitalized under the regulatory framework for prompt corrective action, the Bank must maintain minimum Tier I leverage, Tier I risk-based and total
risked-based ratios as set forth in the table. The Bank's actual capital ratios are presented in the table below as of September 30, 2000:

|Total Capital (to risk
 weighted assets)
Tier I Capital (to risk
 weighted assets)
Tier I Capital (to avg.
 assets | To be      
well capitalized
For           under prompt 
Capital adequacy corrective action   Purposes   provisionsActual   Minimum  MinimumAmount Ratio   Amount   Ratio  Amount   Ratio
|------------------------------------------------------------------------------------------------------------------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|$50,403
46,714
46,714                                                                                              | 17.08%
15.83 
10.07                                                                                                                                                                      

12
<PAGE>

NOTE 13 - CONDENSED FINANCIAL INFORMATION
     Following is condensed financial information of CNB Corporation (parent company only):

|CONDENSED BALANCED SHEET
SEPTEMBER 30, 2000
(Unaudited)                                     
|--------------------------------------------------------------------------------------------
|ASSETS
   Cash
   Investment in subsidiary
   Fixed assets
   Other assets                  
|LIABILITIES AND STOCKHOLDERS' EQUITY
   Other liability
   Stockholders' equity             
|CONDENSED STATEMENT OF INCOME
For the nine-month period ended September 30, 2000
(Unaudited)
|EQUITY IN NET INCOME OF SUBSIDIARY
OTHER INCOME
OTHER EXPENSES
   Net Income                

DISCUSSION OF FORWARD-LOOKING STATEMENTS                                  
       
Information in the enclosed report, other than historical information, may contain forward-looking statements that involve risks and uncertainties, including, but not limited to, timing of certain business initiatives of the Company, the Company's
interest rate risk condition, and future regulatory actions of the Comptroller of the Currency and Federal Reserve System. It is important to note that the Company's actual results may differ materially and adversely from those discussed in
forward-looking statements.                    
                                          
   13
<PAGE>

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Management's Discussion and Analysis is provided to afford a clearer understanding of the major elements of the corporation's results of operations, financial condition, liquidity, and capital resources. The following discussion should be read in
conjunction with the corporation's financial statements and notes thereto and other detailed information appearing elsewhere in this report. In addition, the results of operations for the interim periods shown in this report are not necessarily indicative
of results to be expected for the fiscal year. In the opinion of management, the information contained herein reflects all adjustments necessary to make the results of operations for the interim periods a fair statement of such operations. All such
adjustments are of a normal and recurring nature.                                  
                   DISTRIBUTION OF ASSETS AND LIABILITIES                                   
        
The Company maintains a conservative approach in determining the distribution of assets and liabilities. Loans, net of unearned income, have increased 12.3% from $256,710 at September 30, 1999 to $288,244 at September 30, 2000 and have increased as a
percentage of total assets from 54.6% to 61.9% over the same period as loan demand remains strong in our market. Securities and federal funds sold have decreased as a percentage of total assets from 39.1% at September 30, 1999 to 31.3% at September 30,
2000 as we have utilized funds in the lending area. This level of investments and federal funds sold provides for a more than adequate supply of secondary liquidity. Management has sought to build the deposit base with stable, relatively no
n-interest-sensitive deposits by offering the small to medium deposit account holders a wide array of deposit instruments at competitive rates. Non-interest-bearing demand deposits decreased as a percentage of total assets from 16.4% at September 30, 1999
to 16.1% at September 30, 2000 as more customers, both business and personal, are attracted to interest-bearing deposit accounts. We expect the percentage of demand deposits to decline over the long-term. Interest-bearing deposits have remained constant
at 64.7% of total assets at September 30, 1999 and 2000 while securities sold under agreement to repurchase have decreased from 7.7% to 6.5% over the same period. Other short-term borrowings have increased from 1.1% of total assets at September 30, 1999
to 1.6% at September 30, 2000 due primarily to a $5,000 FHLB advance outstanding at September 30, 2000.                          
             
The following table sets forth the percentage relationship to total assets of significant components of the corporation's balance sheet as of September 30, 2000 and 1999:

|Assets:
   Earning assets:
   Loans, net of unearned income
   Investment securities
   Securities Available for Sale
   Federal funds sold and securities purchased
     under agreement to resell
   Other earning assets
      Total earning assets
   Other assets
      Total assets                                                                                                               | September 30,2000  1999                      
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------
|61.9%
9.3 
19.0 
3.0 - 
 93.2 
  6.8 
100.0%                                                                                                                                                                                                                                                                                                                                                            | 54.6%
12.6 
18.9 
7.6 - 
 93.7 
  6.3 
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 | 64.7%
6.5 1.6 
 72.8 16.1 
 .6 10.5 
100.0%  

14
<PAGE>

RESULTS OF OPERATION

CNB Corporation experienced earnings for the three-month period ended September 30, 2000 and 1999 of $1,665 and $1,742, respectively, resulting in a return on average assets of 1.43% and 1.48% and a return on average stockholders' equity of 14.43% and
15.89%.



|CNB Corporation
CNB Corporation and Subsidiary
FINANCIAL 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*
Cash dividends declared
   Per Share*
Total assets
Total deposits
Loans, net of unearned income
Investment securities and
    securities available for sale
Stockholders' equity
    Book value per share*
Ratios (1):
Annualized return on average total
     assets
Annualized return on average
     stockholders'equity
*Restated for a 20% stock dividend
 issued during 2000.
|4,685 
2,469 
1,665 
2.32 
0 
0 
465,974 
376,354 
288,244 
131,957 
49,076 
68.56 
1.43%
14.43%                                                                                                                                                                                                                                                                                                                                                                                             

(1)  For the three-month period ended September 30, 2000 and September 30, 1999, average total assets amounted to $464,824 and $471,703 with average stockholders' equity totaling $48,010 and
$43,856, respectively. For the nine-month period ended September 30, 2000 and September 30, 1999, average total assets amounted to $459,040 and $451,021 with average stockholders' equity totaling $46,156 and $42,830, respectively.

15

<PAGE>

NET INCOME                                    
                             
Net Interest Income - Earnings are dependent to a large degree on net interest income, defined as the difference between gross interest and fees earned on earning assets, primarily loans and securities, and interest paid on deposits and borrowed funds.
Net interest income is effected by the interest rates earned or paid and by volume changes in loans, securities, deposits, and borrowed funds.

Interest rates paid on deposits and borrowed funds and earned on loans and investments have generally followed the fluctuations in market interest rates in 2000 and 1999. However, fluctuations in market interest rates do not necessarily have a
significant impact on net interest income, depending on the bank's rate sensitivity position. A rate sensitive asset (RSA) is any loan or investment that can be repriced either up or down in interest rate within a certain time interval. A rate sensitive
liability (RSL) is an interest paying deposit or other liability that can be repriced either up or down in interest rate within a certain time interval. When a proper balance between RSA and RSL exists, market interest rate fluctuations should not have a
significant impact on earnings. The larger the imbalance, the greater the interest rate risk assumed by the bank and the greater the positive or negative impact of interest rate fluctuations on earnings. The bank seeks to manage its assets and liabilities
in a manner that will limit interest rate risk and thus stabilize longrun-earning power. Management believes that a rise or fall in interest rates will not materially effect earnings.
The Bank has maintained adequate net interest margins for the three-month and nine-month periods ended September 30, 2000 and 1999 by earning satisfactory yields on loans and securities and funding these assets with a favorable deposit mix containing a
significant level of noninterest-bearing demand deposits.

Fully-tax-equivalent net interest income showed a 1.2% increase from $4,895 for the three-month period ended September 30, 1999 to $4,953 for the three-month period ended September 30, 2000. During the same period, total fully-tax-equivalent interest
income increased by 5.7% from $8,275 to $8,744 and total interest expense increased by 12.2% from $3,380 to $3,791. Fully-tax-equivalent net interest income as a percentage of total earning assets has shown an increase of .13% from 4.45% for the
three-month period ended September 30, 1999 to 4.58% for the three-month period ended September 30, 2000.

Fully-tax-equivalent net interest income showed a 7.3% increase from $14,002 for the nine-month period ended September 30, 1999 to $15,022 for the nine-month period ended September 30, 2000. During the same period, total fully-tax-equivalent interest
income increased by 8.4% from $23,745 to $25,734 and total interest expense increased by 9.9% from $9,743 to $10,712. Fully-tax-equivalent net interest income as a percentage of total earning assets has shown an increase of .26% from 4.43% for the
nine-month period ended September 30, 1999 to 4.69% for the nine-month period ended September 30, 2000.

The tables on the following four pages present selected financial data and an analysis of net interest income.                        
                
                                        16
<PAGE>

|CNB Corporation and Subsidiary
Selected Financial Data                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Assets:
  Earning assets:
   Loans, net of unearned income
   Securities:
    Taxable
    Tax-exempt
   Federal funds sold and
    securities purchased under
    agreement to resell
   Other earning assets
      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
|$288,137
116,949
16,128
11,7280
 432,942
  31,882
$464,824
$297,932
32,5392,760
$333,231
  80,634
2,94948,010
$464,824
$432,942                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|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                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

17
<PAGE>

|CNB Corporation and Subsidiary
Selected Financial Data                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Assets:
  Earning assets:
   Loans, net of unearned income
   Securities:
    Taxable
    Tax-exempt
   Federal funds sold and
    securities purchased under
    agreement to resell
   Other earning assets
      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
|$281,991
121,617
16,178
7,5080
 427,294
  31,746
$459,040
$297,004
30,0894,300
$331,393
  78,254
3,23746,156
$459,040
$427,294                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|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                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

18

<PAGE>

CNB Corporation and Subsidiary
Rate/Volume Variance Analysis
For the Three Months Ended September 30, 2000 and 1999
(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
Other earning assets
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
Volume2000 
288,137
116,949
16,128
11,7280
432,942297,932
32,5392,760
333,231
 99,711432,942 | Average
Volume1999 
253,589
135,443
14,882
36,1980
440,112311,450
32,2601,932
345,642
 94,470440,112 | Yield/Rate2000 (1) 
9.08%
5.93%
7.12%
6.17%- 
8.08%4.48%
4.76%9.28%
4.55%
     
3.50%3.53%1.05%
4.58% | Yield/Rate1999 (1) 
8.82%
5.87%
7.26%
4.73%- 
7.52%3.89%
4.14%4.35%
3.91%
     
3.07%3.61%.84%
4.45% | Interest  
Earned/Paid 2000 (1)  
6,543
1,733
287
1810
8,744
3,340
38764
3,791
     
3,791
     
4,953 | Interest  
Earned/Paid 1999 (1)  
5,589
1,988
270
4280
8,275
3,025
33421
3,380
     
3,380
     
4,895 | Variance
954 
(255)
17 
(247)0 
  469
315 
53 43 
  411 
      
  411 | Change
Due toRate 
165 
20 
(5)
130 - 
  310
459 
50 24 
  533 
     
 533 | Change
Due toVolume
762 
(271)
23 
(289)- 
 225
(131)
3 9 
(119)
     
(119) | Change
Due to
Rate XVolume
27 
(4)
(1)
(88)- 
 (66)
(13)
- 10 
  (3)
     
  (3)
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------- | -------------------------------------------------------------------------- | ---------------------------------------------------------------------------- | --------------------------------------------------------------------------------

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

19

<PAGE>

CNB Corporation and Subsidiary
Rate/Volume Variance Analysis
For the Nine Months Ended September 30, 2000 and 1999
(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
Other earning assets
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
Volume2000 
281,991
121,617
16,178
7,5080
427,294297,004
30,0894,300
331,393 95,901427,294 | Average
Volume1999 
244,355
132,895
14,732
29,4960
421,478297,962
32,6221,518
332,10289,376421,478 | Yield/Rate2000 (1) 
9.04%
5.93%
7.17%
5.93%- 
8.03%4.24%
4.69%6.29%
4.31%
     
3.34%3.72%.97%
4.69% | Yield/Rate1999 (1) 
8.76%
5.86%
7.29%
4.76%- 
7.51%3.89%
4.11%4.48%
3.91%
     
3.08%3.60%.83%
4.43% | Interest  
Earned/Paid 2000 (1)  
19,124
5,406
870
3340
25,734
9,450
1,059203
10,712
      
10,712
      
15,022 | Interest  
Earned/Paid 1999 (1)  
16,048
5,838
806
1,0530
23,745
8,686
1,00651
 9,743
      
 9,743
      
14,002 | Variance
3,076 
(432)
64 
(719)- 
1,989
764 
53 152 
  969 
      
  969 | Change
Due toRate 
513 
70 
(13)
259 - 
 829
795 
142 21 
 958 
     
 958 | Change
Due toVolume
2,473 
(496)
79 
(785)- 
1,271
(30)
(78)93 
  (15)
     
 (15) | Change
Due to
Rate XVolume
90 
(6)
(2)
(193)- 
 (111)
(1)
(11)38 
  26 
     
  26
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------ | -------------------------------------------------------------------------- | ---------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------

(1)  Tax-equivalent adjustment based on a 34% tax rate.

(2)  Includes non-accruing loans which does not have a material effect on the Net Yield on Earning Assets.

20

<PAGE>

NET INCOME (continued)                                  
                      
Provision for Possible Loan Losses - It is the policy of the bank to maintain the reserve for possible loan losses at the greater of 1.20% of net loans or the percentage based on the actual loan loss experience over the previous five years. In addition,
management may increase the reserve to a level above these guidelines to cover potential losses identified in the portfolio.
The provision for possible loan losses was $170 for the three-month period ended September 30, 2000 and $200 for the three-month period ended September 30, 1999. Net loan charge-offs/(recoveries) totaled $155 or the three-month period ended September 30,
2000 and $144 for the same period in 1999.         
The provision for possible loan losses was $650 for the nine-month period ended September 30, 2000 and $530 for the nine-month period ended September 30, 1999. Net loan charge-offs/(recoveries) totaled $258 for the nine-month period ended September 30,
2000 and $229 for the same period in 1999.         
The reserve for possible loan losses as a percentage of net loans was 1.35% at September 30, 2000 and 1.36% at September 30, 1999. The increased provision during the nine-month period ended September 30, 2000 was due to continued strong loan growth
during 2000.                                        
       
Securities Transactions - The Bank had no security sales during the first nine months of 2000 or 1999. At September 30, 2000, December 31, 1999, and September 30, 1999 market value appreciation/(depreciation) in the securities portfolio totaled $(1,264),
$(2,121), and $(846). As indicated, market value has decreased in 1999 and 2000 due to rising market interest rates.           
Other Income - Other income, net of any gains/losses on security transactions, increased by 8.5% from $1,126 for the three-month period ended September 30, 1999 to $1,222 for the three-month period ended September 30, 2000.     
      
Other income, net of any gains/losses on security transactions, increased by 11.3% from $3,048 for the nine-month period ended September 30, 1999 to $3,393 for the nine-month period ended September 30, 2000.        
                   
This increase in the three-month period and nine-month period ended September 30, 2000 was due to an increase in deposit account volumes and higher merchant discount income.

Other Expenses - Other expenses increased by 9.4% from $3,144 for the three-month period ended September 30, 1999 to $3,438 for the three-month period ended September 30, 2000. The major components of other expenses are salaries and employee benefits
which increased 8.7% from $1,852 to $2,013; occupancy expense which increased 8.2% from $401 to $434; and other operating expenses which increased by 11.2% from $891 to $991.

Other expenses increased by 4.3% from $7,016 for the nine-month period ended September 30, 1999 to $7,320 for the nine-month period ended September 30, 2000. The major components of other expenses are salaries and employee benefits which increased 9.0%
from $5,561 to $6,059; occupancy expense which increased 10.0% from $1,236 to $1,359; and other operating expense which increased by 12.2% from $2,433 to $2,731.

21
<PAGE>                                        
                               
The increase in the three-month and nine-month period ended September 30, 2000 salaries and employee benefits and occupancy expense was due to the opening of the new "Murrells Inlet Office" in the spring of 2000 and increases in the cost to provide
employee benefits - particularly health insurance coverage. Other operating expenses have shown an increase due to higher credit card department related costs to support the strong growth in merchant discount income.
Income Taxes - Provisions for income taxes decreased 4.6% from $843 for the three-month period ended September 30, 1999 to $804 for the three-month period ended September 30, 2000. Income before income taxes less interest on tax-exempt investment
securities decreased by 5.3% from $2,407 for the three-month period ended September 30, 1999 to $2,280 for the same period in 2000. State tax liability increased as income before income taxes decreased 4.5% from $2,585 to $2,469 during the same period.

Provisions for income taxes increased 3.5% from $2,308 for the nine-month period ended September 30, 1999 to $2,389 for the nine-month period ended September 30, 2000. Income before income taxes less interest on tax-exempt investment securities increased
by 4.0% from $6,484 for the nine-month period ended September 30, 1999 to $6,746 for the same period in 2000 and state tax liability increased as income before income taxes increased 4.3% from $7,016 to $7,320 during the same period.

LIQUIDITY
The bank's liquidity position is primarily dependent on short-term demands for funds caused by customer credit needs and deposit withdrawals and upon the liquidity of bank assets to meet these needs. The bank's liquidity sources include cash and due from
banks, federal funds sold and short-term investments. In addition, the bank has established federal funds lines of credit from correspondent banks and has the ability to borrow funds from the Federal Reserve System and the Federal Home Loan Bank of
Atlanta. Management feels that short-term and long-term liquidity sources are more than adequate to meet funding needs.                      
                                  CAPITAL RESOURCES                                       
                      
Total stockholders' equity was $49,076, $43,712, $41,201 and $37,717 at September 30, 2000, December 31, 1999, December 31, 1998, and December 31, 1997, representing 10.53%, 9.59%, 9.66%, and 9.90% of total assets, respectively. At September 30, 2000,
the Bank exceeds quantitative measures established by regulation to ensure capital adequacy (see NOTE 12 - REGULATORY MATTERS). Capital is considered sufficient by management to meet current and prospective capital requirements and to support anticipated
growth in bank operations.
The Company paid an approximate 20% stock dividend on September 11, 2000. The Board increased the $3.00 per share annual cash dividend paid at year-end 1997 to $3.50 per share at year-end 1998 which increased the cash dividend payout ratio and cash
dividend yield.                                        
        
                                     22
<PAGE>EFFECTS OF REGULATORY ACTION                                    
              
The Federal Deposit Insurance Corporation (FDIC) reduced FDIC insurance premium rates during the third quarter of 1995 which has had a positive effect on subsequent earnings and should favorably impact future year's income. Effective March 11, 2000, the
Gramm-Leach-Bliley Act of 1999 allows bank holding companies to elect to be treated as financial holding companies which may engage in a broad range of securities, insurance, and other financial activities. At this time, neither the Company nor the Bank
plan to enter these new lines of business. The management of the Company and the Bank is not aware of any current recommendations by the regulatory authorities which, if they were to be implemented, would have a material effect on liquidity, capital
resources, or operations.                                      
       ACCOUNTING ISSUES                                      
                       
In June 1998, the FASB issued SFAS 133, "Accounting for Derivative Instrument and Hedging Activities". All derivatives are to be measured at fair value and recognized in the balance sheet as assets or liabilities. The statement is effective for fiscal
years and quarters beginning after June 15, 2000. Because the Company does not use derivative transactions at this time, management does not expect that this standard will have a significant effect on the Company.  YEAR 2000                                       
                              
The Year 2000 date change posed a unique challenge to the banking industry. This technical problem posed not only a physical system threat but also a threat to the public's confidence in the banking industry. The Conway National Bank's investment of its
staff and financial resources to address operational issues and to maintain the confidence of our customers resulted in an uneventful but successful Year 2000 date change.

23
<PAGE>

EXHIBITS AND REPORTS ON FORM 8-K

See Exhibit Index appearing below.                                    
        
(b)  Reports on Form 8-K - No reports on Form 8-K were filed during the
     quarter covered by this report.

EXHIBIT INDEX     
                         
Exhibit
Number
  27         Financial Data Schedule - Article 9 Financial Data Schedule for              10-Q for electronic filers (pages 25 and
26).                    
All other exhibits, the filing of which are required with this Form, are not applicable.
CNB Corporation                                        
                       
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.           
                             
                                    CNB Corporation    
                       
                                    (Registrant)
                                    Paul R. Dusenbury   
                      
                                    ________________________________________
_
                                    Paul R. Dusenbury   
                      
                                    Treasurer
                                    (Chief Financial and Accounting Officer)

Date: November 13, 2000

24
<PAGE>