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 ended     September 30, 1999


                                        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, 1999  Commission file number:  2-96350


                                  CNB 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, 1999 was 596,203.














<PAGE>
CNB Corporation
                                                                      Page

PART I.    FINANCIAL INFORMATION


Item 1.    Financial Statements:

           Consolidated Balance Sheets as of September 30, 1999,         1
           December 31, 1998 and September 30, 1998

           Consolidated Statement of Income for the Three Months         2
           and Nine Months Ended September 30, 1999 and 1998

           Consolidated Statement of Comprehensive Income                3
           for the Three Months and Nine Months Ended
           September 30, 1999 and 1998

           Consolidated Statement of Changes in Stockholders'            4
           Equity for the Nine Months Ended September 30, 1999
           and 1998

           Consolidated Statement of Cash Flows for the Nine Months      5
           Ended September 30, 1999 and 1998

           Notes to Consolidated Financial Statements                 6-13

Item 2.    Management's Discussion and Analysis of Financial         14-25
           Condition and Results of Operations

PART II.   OTHER INFORMATION

Item 6.    Exhibits and Reports on Form 8-K                             25


SIGNATURE                                                               26






































<PAGE>
                         CNB Corporation and Subsidiary
                          Consolidated Balance Sheets
             (All Dollar Amounts, Except Per Share Data, in Thousands)
                                  (Unaudited)
<TABLE>
<CAPTION>
                                        Sept. 30,  December 31,  Sept. 30,
                                          1999       1998         1998
ASSETS:
<S>                                      <C>         <C>         <C>
    Cash and due from banks              $ 17,252    $ 17,864    $ 16,684
    Interest bearing deposits with banks        0           0           0
    Investment Securities                  59,024      60,648      66,012
      (Fair values of $59,075 at
       Sept. 30, 1999, $61,928 at
       December 31, 1998, and $67,383
       at Sept. 30, 1998)
    Securities Available for Sale          88,863      80,582     72,893
      (Amortized cost of $89,760 at
       Sept. 30, 1999, $79,874 at
       December 31, 1998, and $71,955
       at Sept. 30, 1998)
    Federal Funds sold and securities
       purchased under agreement
       to resell                           35,925      27,100     25,875
    Loans:
       Gross Loans                        257,120     230,099    228,309
       Less unearned income                  (410)       (970)    (1,099)
        Loans, net of unearned income     256,710     229,129    227,210
       Less reserve for possible
          loan losses                      (3,433)     (3,132)    (3,160)
            Net loans                     253,277     225,997    224,050
    Bank premises and equipment             8,217       7,258      7,156
    Other assets                            7,563       6,910      6,817
 Total assets                             470,121     426,359    419,487

LIABILITIES AND STOCKHOLDERS' EQUITY:
    Deposits:
       Non-interest bearing                77,157      66,303     64,048
          Interest-bearing                304,384     279,809    276,145
            Total deposits                381,541     346,112    340,193
        Federal funds purchased and
       securities sold under agreement
       to repurchase                       36,183      32,518     32,137
    Other short-term borrowings             5,091       1,148      1,390
    Other liabilities                       2,407       5,380      3,337
Total liabilities                         425,222     385,158    377,057
      Stockholders' equity:
      Common stock, par value $10 per
      share:  Authorized 1,500,000 in
      1999 and 1998; issued 598,687
      in 1999 and 1998                      5,987       5,987      5,987
      Surplus                              24,546      24,538     24,553
      Undivided Profits                    15,156      10,448     11,498
      Net Unrealized Holding                 (539)        425        562
      Gains (Losses) on
       Available-For-Sale Securities
        Less:  Treasury stock                (251)       (197)      (170)
           Total stockholders' equity      44,899      41,201     42,430
          Total liabilities
            and stockholders' equity      470,121     426,359    419,497
</TABLE>












                                      1

<PAGE>

                        CNB Corporation and Subsidiary
                       Consolidated Statement of Income
         (All Dollar Amounts, Except Per Share Data, in Thousands)
                                (Unaudited)
<TABLE>
<CAPTION>
                                                 Three Months Ended  Nine Months Ended
                                                    September 30,      September 30,
                                                  1999        1998   1999        1998
Interest Income:
<S>                                              <C>       <C>       <C>       <C>
  Interest and fees on loans                     $  5,589  $  5,293  $ 16,048  $ 15,636
  Interest on investment securities:
    Taxable investment securities                   1,974     1,787     5,821     5,236
    Tax-exempt investment securities                  178       170       532       519
    Other securities                                   14         0        17         3
  Interest on federal funds sold and securities
    purchased under agreement to resell               428       487     1,053     1,084
      Total interest income                         8,183     7,737    23,471    22,478
Interest Expense:
  Interest on deposits                              3,025     2,926     8,686     8,544
  Interest on federal funds purchased and
    securities sold under agreement to
    repurchase                                        334       375     1,006     1,162
  Interest on other short-term borrowings              21        23        51        66

      Total interest expense                        3,380     3,324     9,743     9,772
Net interest income                                 4,803     4,413    13,728    12,706
Provision for possible loan losses                    200       160       530       525

Net interest income after provision for
  possible loan losses                              4,603     4,253    13,198    12,181
Other income:
  Service charges on deposit accounts                 634       660     1,873     1,806
  Gains/(Losses) on securities                          0         0         0         0
  Other operating income                              492       501     1,175     1,134
      Total other income                            1,126     1,161     3,048     2,940

Other expenses:
  Salaries and employee benefits                    1,852     1,697     5,561     5,063
  Occupancy expense                                   401       425     1,236     1,242
  Other operating expenses                            891       784     2,433     2,113
      Total operating expenses                      3,144     2,906     9,230     8,418
Income before income taxes                          2,585     2,508     7,016     6,703
  Income tax provision                                843       821     2,308     2,234
Net Income                                          1,742     1,687     4,708     4,469

  Per share data:
  Net income per weighted average shares
    Outstanding                                   $  2.91   $  2.83   $  7.88   $  7.48
  Cash dividend paid per share                    $     0   $     0   $     0   $     0
  Book value per actual number of shares
    Outstanding                                   $ 75.31   $ 71.09   $ 75.31   $ 71.09
  Weighted average number of shares outstanding   597,108   597,708   597,108   597,708

   Actual number of shares outstanding            596,203   596,857   596,203   596,857

</TABLE>














                                     2
<PAGE>


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



<TABLE>
<CAPTION>
                                          Three Months     Nine Months
                                             Ended             Ended
                                          September 30,      September 30,
                                         1999       1998   1999       1998
<S>                                      <C>      <C>      <C>      <C>
Net Income                               $1,742   $1,687   $4,708   $4,469

Other comprehensive income, net of tax

   Unrealized gains/(losses)
     on securities:
       Unrealized holding gains/(losses)     86      356     (964)     365
       during period


Net Comprehensive Income                 $1,828   $2,043   $3,744   $4,834

</TABLE>













































                                    3
<PAGE>

                      CNB Corporation and Subsidiary
     Consolidated Statement of Changes in Stockholders' Equity
                     (All Dollar Amounts in Thousands)
                               (Unaudited)
<TABLE>
<CAPTION>
                                                     Nine Months Ended
                                                       September 30,
                                                     1999        1998
<S>                                                 <C>          <C>
Common Stock:
 $10 par value; 500,000 shares authorized
Balance, January 1                                    5,987        5,987
Issuance of Common Stock                               None         None
Stock Dividend                                         None         None
Balance at end of period                              5,987        5,987



Surplus:
Balance, January 1                                   24,538       24,552
Issuance of Common Stock                               None         None
Stock Dividend                                         None         None
Gain on sale of treasury stock                            8            1
Balance at end of period                             24,546       24,553



Undivided profits:
Balance, January 1                                   10,448        7,030
Net Income                                            4,708        4,469
Stock Dividend                                         None         None
Cash dividends declared                                None         None
Balance at end of period                             15,156       11,498



Net unrealized holding gains/(losses) on
Available-for-sale securities:
Balance, January 1                                      425          197
Change in net unrealized gains/(Losses)                (964)         365
Balance at end of period                               (539)         562



Treasury stock:
Balance, January 1
 (2,066 shares in 1999, 539 shares in 1998)            (197)         (49)
Purchase of treasury stock                             (193)        (278)
Reissue of treasury stock                               139          157
Balance at end of period
 (2,478 shares in 1999; 1,824 shares in 1998)          (251)        (170)



Total stockholders' equity                           44,899       42,430
</TABLE>

Note:  Columns may not add due to rounding.












                                     4
<PAGE>

                        CNB CORPORATION AND SUBSIDIARY
                     CONSOLIDATED STATEMENT OF CASH FLOWS
                                  (Unaudited)
<TABLE>
<CAPTION>
                                   For the nine-month period ended Sept. 30,
                                                      1999        1998
<S>                                                 <C>         <C>
OPERATING ACTIVITIES
  Net income                                        $ 4,708     $ 4,469
  Adjustments to reconcile net income to
    net cash provided by operating activities
    Depreciation                                        394         486
    Provision for loan losses                           530         525
    Provision for deferred income taxes              (1,030)        102
    Loss (gain) on sale of investment
     securities                                           0           0
    (Increase) decrease in accrued interest
     receivable                                        (315)       (367)
    (Increase) decrease in other assets                  75        (115)
    (Decrease) increase in other liabilities         (1,505)        295

        Net cash provided by operating
          activities                                  2,857       5,395

INVESTING ACTIVITIES
  Proceeds from sale of investment securities
   available for sale                                     0           0
  Proceeds from maturities of investment
   securities held to maturity                       10,294      17,032
  Proceeds from maturities of investment
   securities available for sale                     13,719      12,341
  Purchase of investment securities held to
   maturity                                          (8,670)    (12,805)
  Purchase of investment securities
   available for sale                               (22,000)    (32,050)
  Decrease (increase) in interest-bearing
    deposits in banks                                     0           0
  (Increase) decrease in federal funds sold          (8,825)    (14,500)
  (Increase) decrease in loans                      (27,581)     (5,489)
  Premises and equipment expenditures                (1,353)       (844)

        Net cash provided by (used for)
          investing activities                      (44,416)    (36,315)

FINANCING ACTIVITIES
  Dividends paid                                     (2,090)     (1,794)
  Increase (Decrease) in deposits                    35,429      38,866
  (Decrease) increase in securities sold
    under repurchase agreement                        3,665        (229)
  (Decrease) increase in other
    short-term borrowings                             3,943      (3,610)

        Net cash provided by (used for)
          financing activities                       40,947      33,233

        Net increase (decrease) in cash
          and due from banks                           (612)      2,313
CASH AND DUE FROM BANKS, BEGINNING OF YEAR           17,864      14,371

CASH AND DUE FROM BANKS, SEPT. 30, 1999 AND 1998    $17,252     $16,684

CASH PAID (RECEIVED) FOR:
  Interest                                          $ 9,736     $ 9,600
  Income taxes                                      $ 2,310     $ 2,215







</TABLE>
                                    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
weighted average number of common shares outstanding, 597,108 for the nine-
month period ended September 30, 1999 and 597,708 for the nine-month period
ended September 30, 1998.


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, 1999 and for
the years ended December 31, 1998 and 1997 were approximately $8,106,
$6,839, and $5,909, respectively.














































                                     6
<PAGE>

NOTE 3 - INVESTMENT SECURITIES

Investment securities with a par value of approximately $85,910 at September
30, 1999 and $74,500 at December 31, 1998 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, 1999 and at December 31, 1998.
<TABLE>
<CAPTION>
                                            September 30, 1999
                             Book   Unrealized Holding     Fair
                             Value  Gains       Losses     Value      Yield(1)
<S>                         <C>      <C>         <C>        <C>         <C>
AVAILABLE FOR SALE
  United States Treasury
   Within one year          $ 4,997  $   23      $    -     $ 5,020      6.49%
   One to five years         11,103      45          16      11,132      6.00
                             16,100      68          16      16,152      6.15
  Federal agencies
   Within one year            6,011       7           5       6,013      6.12
   One to five years         66,255      43         994      65,304      5.73
                             72,266      50         999      71,317      5.76
  State, county and
  municipal
    One to five years            0       -           -           0         -
  Other Securities(Equity)    1,394       -           -       1,394         -
  Total available for sale  $89,760   $ 118      $1,015     $88,863      5.83%

HELD TO MATURITY
  United States Treasury
   Within one year            6,001      23           -       6,024      6.57%
   One to five years          1,013       -           2       1,011      5.76
                              7,014      23           2       7,035      6.46
  Federal agencies
   Within one year            7,605      13           1       7,617      6.26%
   One to five years         29,221     123         145      29,199      6.35
                             36,826     136         146      36,816      6.33
  State, county and
  municipal
   Within one year            1,760      21           -       1,781      8.59%
   One to five years          7,833      73          12       7,894      6.58
   Six to ten years           4,693      34          60       4,667      6.61
   After ten years              898       5          21         882      5.89
                             15,184     133          93      15,224      6.78
  Total held to maturity    $59,024  $  292      $  241     $59,075      6.46%
</TABLE>
(1) Tax equivalent adjustment based on a 34% tax rate.

As of the quarter ended September 30, 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 $(539) as of September 30, 1999.



















                                      7
<PAGE>
NOTE 3 - INVESTMENT SECURITIES (Continued)


<TABLE>
<CAPTION>
                                       December 31, 1998
                             Book      Unrealized Holding    Fair
                             Value       Gains    Losses     Value   Yield(1)

<S>                         <C>        <C>      <C>         <C>         <C>
AVAILABLE FOR SALE
  United States Treasury
   Within one year          $ 8,011    $   59   $     -     $ 8,070     6.28%
   One to five years          5,962       179         -       6,141     6.09%
                             13,973       238         -      14,211     6.20%
  Federal agencies
   Within one year            5,171        30         -       5,201     6.20%
   One to five years         60,289       520        87      60,722     5.77%
                             65,460       550        87      65,923     5.81%
  State, county and
  municipal
   One to five years            325         7         -         332     7.90%

  Other - restricted
   Federal Reserve
    Bank Stock                  116         -         -         116     6.03%

  Total available for sale  $79,874    $  795   $    87     $80,582     5.88%

HELD TO MATURITY
  United States Treasury
   Within one year            6,995        81         -       7,076     6.56%
   One to five years          4,019        76         -       4,095     6.05%
                             11,014       157         -      11,171     6.38%
  Federal agencies
   Within one year            2,036         6         -       2,042     5.50%
   One to five years         33,350       615         -      33,965     6.14%
                             35,386       621         -      36,007     6.10%

  State, county and
  Municipal
   Within one year            1,236        11         -       1,247     9.57%
   One to five years          8,430       260         -       8,690     7.69%
   Six to ten years           4,582       231         -       4,813     7.56%
                             14,248       502         -      14,750     7.81%
  Total held to maturity    $60,648    $1,280   $     -     $61,928     6.56%
</TABLE>
(1) Tax equivalent adjustment based on a 34% tax rate

As of the quarter ended  December 31, 1998, 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 $425 as of December 31, 1998.




















                                     8
<PAGE>
NOTE 4 - LOANS AND ALLOWANCE FOR LOAN LOSSES

     The following is a summary of loans at September 30, 1999 and December
31, 1998 by major classification:
<TABLE>
<CAPTION>
                                          September 30,        December 31,
                                             1999                 1998
<S>                                        <C>                   <C>
Real estate loans - mortgage               $  157,608            $ 142,039
                  - construction               18,578               15,560
Commercial and industrial loans                44,141               36,393
Loans to individuals for household,
  family and other consumer expenditures       32,881               32,669
Agriculture                                     2,298                1,487
All other loans, including overdrafts           1,614                1,951
     Gross loans                              257,120              230,099
       Less unearned income                      (410)                (970)
       Less reserve for loan losses            (3,433)              (3,132)
         Net loans                            253,277              225,997
</TABLE>



















































                                    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, 1999 and 1998 and the year ended December
31, 1998 are summarized as follows:
<TABLE>
<CAPTION>
                                  Quarter Ended    Nine Months Ended December
                                    Sept. 30,          Sept. 30,         31,
                                 1999       1998   1999        1998    1998
<S>                              <C>      <C>      <C>      <C>      <C>
Balance, beginning of period     $ 3,377  $ 3,094  $ 3,132  $ 2,879  $ 2,879
Charge-offs:
   Commercial, financial,
    and agricultural                 105       40      189      111      189
   Real Estate - construction
    and mortgage                       0        1        0       11       14
   Loans to individuals              110      132      330      357      553
       Total charge-offs         $   215  $   173  $   519  $   479  $   756
Recoveries:
   Commercial, financial, and
    Agricultural                 $    17  $    29  $    99  $    63  $    89
   Real Estate - construction
    and mortgage                      10        0       21        4        5
   Loans to individuals               44       50      170      168      235
       Total recoveries          $    71  $    79  $   290  $   235  $   329
Net charge-offs/(recoveries)     $   144  $    94  $   229  $   244  $   427
Additions charge to operations   $   200  $   160  $   530  $   525  $   680
Balance, end of period           $ 3,433  $ 3,160  $ 3,433  $ 3,160  $ 3,132
Ratio of net charge-offs during
 the period to average loans
 outstanding during the period       .06%     .04%     .10%     .11%     .19%
</TABLE>
The entire balance is available to absorb future loan losses.

At September 30, 1999 and December 31, 1998 loans on which no interest was
being accrued totalled approximately $610 and $422, respectively and
foreclosed real estate totalled $0 and $0, respectively; and loans 90 days
past due and still accruing totalled $143 and $100, respectively.

                             OTHER INTEREST-BEARING ASSETS
The Bank maintained an investment in an executive life insurance program through
Confederation Life Insurance and Annuity Company, Inc.  During 1994 the Michigan
Insurance Commission seized control of this United States Corporation due to a
similar action by the Canadian regulatory authorities over the company's parent
corporation, Confederation Life Insurance Company. Regulatory oversight began as
concerns regarding investment losses of the parent corporation developed during
1993  and  1994. Management determined that any impairment of the approximate
$2,100,000 cash surrender value of the policies was remote due to the financial
stability of the U.S. subsidiary.  Subsequently, on October 23, 1996, a plan of
Rehabilitation for Confederation Life Insurance Company (U.S.) was confirmed by
the State of Michigan in the Circuit Court for the County of Ingham.  The plan
provided for the assumption of company owned life insurance policies (COLI),
such as the Bank's, to be assumed by Pacific Mutual Life Insurance Company.
Under the agreement, holders of COLI policies had the option to have a policy
reinsured by Pacific Mutual which was expected to have the same account value
and substantially the same contract terms as the original policy or to receive
the liquidation or "opt-out" value of the policy.

The Bank's independent external auditors revisited the facts and circumstances
regarding the investment in the COLI program and read the related guidance in
SFAS No. 5 and SAB Topic 5(Y).  There continues to be no significant
uncertainties requiring the recognition of a loss contingency.

The Bank's COLI policies were reinsured by Pacific Mutual during the third
quarter of 1997.  Management received permission from the Office of the
Comptroller of the Currency to return this asset to accrual status and to adjust
the carrying value during the first quarter of 1998 with the total cash
surrender values totalling approximately $85,000 above the carrying value on the
bank's books.

As of September 30, 1999, 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.
                                     10
<PAGE>

NOTE 5 - PREMISES AND EQUIPMENT

     Property at September 30, 1999 and December 31, 1998 is summarized as
follows:
                                     Sept. 30,         December 31,
                                       1999                1998

Land and buildings                   $ 10,426           $  9,581
Furniture, fixtures and equipment       5,614              5,188
Construction in progress                  101                 19
                                     $ 16,141           $ 14,788
Less accumulated depreciation and
   amortization                         7,924              7,530
                                     $  8,217           $  7,258

     Depreciation and amortization of bank premises and equipment charged to
operating expense was $131 and $394 for the quarter ended and the nine month
period ended September 30, 1999, respectively and $693 for the year ended
December 31, 1998.

NOTE 6 - CERTIFICATES OF DEPOSIT IN EXCESS OF $100,000

     At September 30, 1999 and December 31, 1998, certificates of deposit of
$100,000 or more included in time deposits totaled approximately $72,213 and
$61,328 respectively.  Interest expense on these deposits was approximately
$952 and $2,635 for the quarter ended and the nine-month period ended
September 30, 1999 and $3,455 for the year ended December 31, 1998.  On June
30, 1999, the Bank purchased $12 million in large public fund certificates
with maturities in early 2000 to provide for potential Y2K liquidity needs
at year-end 1999.

NOTE 7 - SECURITIES SOLD UNDER REPURCHASE AGREEMENTS

     At September 30, 1999 and December 31, 1998, securities sold under
repurchase agreements totaled approximately $36,183 and $32,518.  U.S.
Government securities with a book value of $37,106 ($36,939 market value)
and $35,127 ($35,672 market value), respectively, are used as collateral for
the agreements.  The weighted-average interest rate of these agreements was
4.20 percent and 4.12 percent at September 30, 1999 and December 31, 1998.

NOTE 8 - LINES OF CREDIT

     At September 30, 1999, 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 $7,809 at
September 30, 1999.  The amount outstanding under the note totaled $5,091
and $1,148 at September 30, 1999 and December 31, 1998, respectively.

     The Bank also has a line of credit from the Federal Home Loan Bank of
Atlanta for $67 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.  At September 30, 1999, no borrowings were
outstanding under the agreement.

NOTE 9 - INCOME TAXES

     Income tax expense for the quarter ended September 30, 1999 and
September 30, 1998 on pretax income of $2,585 and $2,508 totalled $843 and
$821 respectively.  Income tax expense for the nine-month period ended
September 30, 1999 and September 30, 1998 on pretax income of $7,016 and
$6,703 totalled $2,308 and $2,234 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)

     Effective January 1, 1992, the Company adopted the provisions of
Statement of Financial Accounting Standards ("SFAS") No. 109, "Accounting
for Income Taxes".  SFAS 109 replaces SFAS 96 beginning in 1993, with early
implementation permitted.  The impact of the adoption of SFAS 109 is not
considered to be material.

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, 1999.

     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, 1999, commitments to extend credit totalled $25,440; financial
standby letters of credit totalled $192; and performance standby letters of
credit totalled $658.  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, 1999 and years ended
December 31, 1998, 1997 and 1996, $111, $312, $378, $361, and $336,
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, 1999:
                                                                To be
                                                           well capitalized
                                               For           under prompt
                                        capital adequacy  corrective action
                                           purposes            provisions
                             Actual          Minimum            Minimum
                        Amount  Ratio   Amount   Ratio      Amount  Ratio
Total Capital (to risk  $46,291 16.89%  $21,932    8.0%      $27,415 10.0%
 weighted assets)
Tier I Capital (to risk  42,864 15.64    10,966    4.0        16,449  6.0
 weighted assets)
Tier I Capital (to avg.  42,864  9.13    18,772    4.0        23,465  5.0
 assets)


                                     12
<PAGE>
NOTE 13 - CONDENSED FINANCIAL INFORMATION

     Following is condensed financial information of CNB Corporation (parent
company only):
                           CONDENSED BALANCE SHEET
                              SEPTEMBER 30, 1999
                                 (Unaudited)
ASSETS
   Cash                                                          $  1,751
   Investment in subsidiary                                        42,325
   Fixed assets                                                       786
   Other assets                                                        37
                                                                 $ 44,899

LIABILITIES AND STOCKHOLDERS' EQUITY
   Other liability                                               $      0
   Stockholders' equity                                            44,899
                                                                 $ 44,899

                           CONDENSED STATEMENT OF INCOME
               For the nine-month period ended September 30, 1999
                                   (Unaudited)

EQUITY IN NET INCOME OF SUBSIDIARY                               $  4,746
OTHER INCOME                                                            0
OTHER EXPENSES                                                         38
   Net Income                                                    $  4,708






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 13.0% from $227,210 at September 30, 1998 to $256,710 at September
30, 1999 and have increased as a percentage of total assets from 54.2% to
54.6% over the same period as loan demand has remained stable in our market.
Securities and federal funds sold have decreased slightly as a percentage of
total assets from 39.3% at September 30, 1998 to 39.1% at September 30, 1999
as we have deployed 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 non-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 increased as a percentage of
total assets from 15.3% at September 30, 1998 to 16.4% at September 30,
1999.  However, 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
decreased from 65.8% of total assets at September 30, 1998 to 64.7% at
September 30, 1999 while securities sold under agreement to repurchase have
remained constant at 7.7% over the same period.

The following table sets forth the percentage relationship to total assets
of significant components of the corporation's balance sheet as of September
30, 1999 and 1998:
<TABLE>
<CAPTION>
                                                       September  30,
<S>                                                  <C>           <C>
Assets:                                              1999          1998
Earning assets:
   Loans, net of unearned income                     54.6%         54.2%
   Investment securities                             12.6          15.7
   Securities Available for Sale                     18.9          17.4
   Federal funds sold and securities purchased
     under agreement to resell                        7.6           6.2
         Other earning assets                           -             -
            Total earning assets                     93.7          93.5
   Other assets                                       6.3           6.5
      Total assets                                  100.0%        100.0%


Liabilities and stockholders' equity:
  Interest-bearing liabilities:
   Interest-bearing deposits                         64.7%         65.8%
   Federal funds purchased and securities sold
    under agreement to repurchase                     7.7           7.7
   Other short-term borrowings                        1.1            .3
       Total interest-bearing liabilities            73.5          73.8
         Noninterest-bearing deposits                16.4          15.3
   Other liabilities                                   .5            .8
   Stockholders' equity                               9.6          10.1
       Total liabilities and stockholders' equity   100.0%        100.0%

</TABLE>

                              14
<PAGE>
RESULTS OF OPERATION

CNB Corporation experienced earnings for the three-month period ended
September 30, 1999 and 1998 of $1,742 and $1,687, respectively, resulting in
a return on average assets of 1.48% and 1.57% and a return on average
stockholders' equity of 15.89% and 16.32%.

CNB Corporation experienced earnings for the nine-month period ended
September 30, 1999 and  1998 of  $4,708 and $4,469, respectively, resulting
in a return on average assets of 1.39% and 1.45% and a return on average
stockholders' equity of 14.66% and 14.96%.

The earnings were primarily attributable to net interest margins in each
period (see Net Income-Net Interest Income).  Other factors include
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).  This level of earnings, coupled with a conservative
dividend policy, have supplied the necessary capital funds to support the
growth in total assets. Total assets have increased  $50,634 or 12.1% from
$419,487 at September 30, 1998 to $470,121 at September 30, 1999.  The
following table sets forth the financial highlights for the three-month and
nine-month periods ending September 30, 1999 and September 30, 1998:

                                CNB Corporation
                       CNB Corporation and Subsidiary
                              FINANCIAL HIGHLIGHTS
            (All Dollar Amounts, Except Per Share Data, in Thousands)
<TABLE>
<CAPTION>
                                      Three-Month Period          Nine-Month Period
                                      Ended September 30,         Ended September 30,
                                                    Percent                    Percent
                                                    Increase                   Increase
                                   1999     1998   (Decrease)   1999     1998 (Decrease)
<S>                             <C>      <C>         <C>      <C>      <C>      <C>
Net interest income after
    provision for loan losses     4,603    4,253      8.2%     13,198   12,181   8.3%
Income before income taxes        2,585    2,508      3.1       7,016    6,703   4.7
Net Income                        1,742    1,687      3.3       4,708    4,469   5.3
Per Share                          2.91     2.83      2.8        7.88     7.48   5.3
Cash dividends declared               0        0        -           0        0     -
   Per Share                          0        0        -           0        0     -
Total assets                    470,121  419,487     12.1%    470,121  419,487  12.1%
Total deposits                  381,541  340,193     12.2     381,541  340,193  12.2
Loans, net of unearned income   256,710  227,210     13.0     256,710  227,210  13.0
Investment securities and
    securities available for
    sale                        147,887  138,905      6.5     147,887  138,905   6.5
Stockholders' equity             44,899   42,430      5.8      44,899   42,430   5.8
    Book value per share          75.31    71.09      5.9       75.31    71.09   5.9
Ratios (1):
Annualized return on average
    total assets                   1.48%    1.57%    (5.7)%      1.39%    1.45% (4.1)%
Annualized return on average
    stockholders' equity          15.89%   16.32%    (2.6)%     14.66%   14.96% (2.0)%

</TABLE>


(1) For the three-month period ended September 30, 1999 and September 30,
1998, average total assets amounted to $471,703 and $429,596 with average
stockholders' equity totaling $43,856 and $41,356, respectively. For the
nine-month period ended September 30, 1999 and September 30, 1998,
average total assets amounted to $451,021 and $411,942 with average
stockholders' equity totaling $42,830 and $39,818, 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 1999 and 1998.  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, 1999 and 1998 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 an 8.8% increase from $4,500
for the three-month period ended September 30, 1998 to $4,895 for the three-
month period ended September 30, 1999.  During the same period, total fully-
tax-equivalent interest income increased by 5.8% from $7,824 to $8,275 and
total interest expense increased by 1.7% from $3,324 to $3,380. Fully-tax-
equivalent net interest income as a percentage of total earning assets has
shown a decrease of .09% from 4.54% for the three-month period ended
September 30, 1998 to 4.45% for the three-month period ended September 30,
1999.

Fully-tax-equivalent net interest income showed a 7.9% increase from $12,973
for the nine-month period ended September 30, 1998 to $14,002 for the nine-
month period ended September 30, 1999.  During the same period, total fully-
tax-equivalent interest income increased by 4.4% from $22,745 to $23,745 and
total interest expense decreased by .3% from $9,772 to $9,743. Fully-tax-
equivalent net interest income as a percentage of total earning assets has
shown a decrease of .08% from 4.51% for the nine-month period ended
September 30, 1998 to 4.43% for the nine-month period ended September 30,
1999.

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
<TABLE>
<CAPTION>
                                     Three Months Ended 9/30/99     Three Months Ended 9/30/98
                                     Avg.     Interest   Avg. Ann.   Avg.    Interest   Avg.Ann
                                     Balance  Income/    Yield or   Balance  Income/    Yield or
                                              Expense(1)    Rate             Expense(1)   Rate
<S>                                   <C>       <C>        <C>        <C>       <C>       <C>
Assets:
  Earning assets:
   Loans, net of unearned income      $253,589  $ 5,589     8.82%     $229,926  $ 5,293    9.21%
     Securities:
     Taxable                           135,443    1,988     5.87       117,565    1,787    6.08
     Tax-exempt                         14,882      270     7.26        13,636      257    7.54
   Federal funds sold and
     securities purchased under
     agreement to resell                36,198      428     4.73        35,127      487    5.55
   Other earning assets                      0        0        -             0        0       -
      Total earning assets             440,112    8,275     7.52       396,254    7,824    7.90
    Other assets                        31,591                          33,342
      Total assets                    $471,703                        $429,596

Liabilities and stockholders' equity:
   Interest-bearing liabilities:
   Interest-bearing deposits          $311,450    3,025     3.89      $272,783  $ 2,926    4.29
   Federal funds purchased and
    securities sold under
    agreement to repurchase             32,260      334     4.14        34,048      375    4.41
   Other short-term borrowings           1,932       21     4.35         1,533       23    6.00
       Total interest-bearing
         Liabilities                  $345,642  $ 3,380     3.91      $308,364  $ 3,324    4.31
   Noninterest-bearing deposits         79,476                          70,228
   Other liabilities                     2,729                           9,648
   Stockholders' equity                 43,856                          41,356
         Total liabilities and
           stockholders' equity       $471,703                        $429,596
   Net interest income as a percent
     of total earning assets          $440,112  $ 4,895     4.45      $396,254  $ 4,500   4.54

(1)  Tax-equivalent adjustment
     based on a 34% tax rate                    $    92                         $    87
</TABLE>
<TABLE>
<S>                                                        <C>                           <C>
Ratios:
Annualized return on average total assets                   1.48                          1.57
Annualized return on average stockholders' equity          15.89                         16.32
Cash dividends declared as a percent of net income             0                             0
Average stockholders' equity as a percent of:
  Average total assets                                      9.30                          9.63
  Average total deposits                                   11.22                         12.06
  Average loans, net of unearned income                    17.29                         17.99
Average earning assets as a percent of
average total assets                                       93.30                         92.24
</TABLE>

















                                               17
<PAGE>
                                   CNB Corporation and Subsidiary
                                      Selected Financial Data
<TABLE>
<CAPTION>
                                      Nine Months Ended 9/30/99      Nine Months Ended 9/30/98
                                    Avg.      Interest   Avg. Ann.   Avg.    Interest  Avg.Ann.
                                    Balance    Income/    Yield or   Balance  Income/   Yield or
                                               Expense(1)   Rate              Expense(1)  Rate
<S>                                 <C>         <C>        <C>       <C>       <C>       <C>
Assets:
  Earning assets:
   Loans, net of unearned income    $244,355    $16,048     8.76%    $227,986  $15,636    9.14%
     Securities:
     Taxable                         132,895      5,838     5.86      115,083    5,239    6.07
     Tax-exempt                       14,732        806     7.29       13,620      786    7.69
   Federal funds sold and
     securities purchased under
     agreement to resell              29,496      1,053     4.76       27,147    1,084    5.32
   Other earning assets                    0          0        -            0        0       -
      Total earning assets           421,478     23,745     7.51      383,836   22,745    7.90
    Other assets                      29,543                           28,106
      Total assets                  $451,021                         $411,942

Liabilities and stockholders equity
   Interest-bearing liabilities:
   Interest-bearing deposits        $297,962      8,686     3.89     $265,831  $ 8,544    4.29
   Federal funds purchased and
    securities sold under
    agreement to repurchase           32,622      1,006     4.11       34,624    1,162    4.47
   Other short-term borrowings         1,518         51     4.48        1,555       66    5.66
       Total interest-bearing
         liabilities                $332,102    $ 9,743     3.91     $302,010  $ 9,772    4.31
Noninterest-bearing deposits          73,592                           64,604
   Other liabilities                   2,497                            5,510
   Stockholders' equity               42,830                           39,818
         Total liabilities and
           stockholders' equity     $451,021                         $411,942
   Net interest income as a percent
     of total earning assets        $421,478    $14,002     4.43     $383,836  $12,973    4.51

(1)  Tax-equivalent adjustment
     based on a 34% tax rate                    $   274                        $   267
</TABLE>
<TABLE>
<S>                                                        <C>                           <C>
Ratios:
Annualized return on average total assets                   1.39                          1.45
Annualized return on average stockholders' equity          14.66                         14.96
Cash dividends declared as a percent of net income             0                             0
Average stockholders' equity as a percent of:
  Average total assets                                      9.50                          9.67
  Average total deposits                                   11.53                         12.05
  Average loans, net of unearned income                    17.53                         17.47
Average earning assets as a percent of
average total assets                                       93.45                         93.18
</TABLE>














                                               18
<PAGE>
<TABLE>
<CAPTION>
                                                          CNB Corporation and Subsidiary
                                                           Rate/Volume Variance Analysis
                                            For the Three Months Ended September 30, 1999 and 1998
                                                              (Dollars in Thousands)
<S>                            <C>      <C>      <C>         <C>         <C>          <C>          <C>       <C>     <C>      <C>
                                                                                                                              Change
                               Average  Average                           Interest     Interest              Change  Change   Due To
                                Volume   Volume  Yield/Rate  Yield/Rate  Earned/Paid  Earned/Paid            Due to  Due To   Rate X
                                 1999     1998    1999 (1)    1998 (1)    1999 (1)     1998 (1)    Variance   Rate   Volume   Volume
Earning Assets:

Loans, Net of unearned
 income (2)                    253,589   229,926     8.82%       9.21%     5,589       5,293         296     (224)     545      (25)
Investment securities:
 Taxable                       135,443   117,565     5.87%       6.08%     1,988       1,787         201      (62)     272       (9)
 Tax-exempt                     14,882    13,636     7.26%       7.54%       270         257          13      (10)      23        -
Federal funds sold and
 securities purchased under
 agreement to resell            36,198    35,127     4.73%       5.55%       428         487         (59)     (72)      15       (2)
Other earning assets                 0         0        -           -          0           0           0        -        -        -

Total Earning Assets           440,112   396,254     7.52%       7.90%     8,275       7,824         451     (368)     855      (36)

Interest-bearing Liabilities:

Interest-bearing deposits      311,450   272,783     3.89%       4.29%     3,025       2,926          99     (273)     415      (43)
Federal funds purchased and
 securities sold under
 agreement to repurchase        32,260    34,048     4.14%       4.41%       334         375         (41)     (23)     (20)       2
Other short-term borrowings      1,932     1,533     4.35%       6.00%        21          23          (2)      (6)       6       (2)

Total Interest-bearing
 Liabilities                   345,642   308,364     3.91%       4.31%     3,380       3,324          56     (302)     401      (43)
Interest-free Funds
 Supporting Earning Assets      94,470    87,890

Total Funds Supporting

Earning Assets                 440,112   396,254     3.07%       3.36%     3,380       3,324          56     (302)     401      (43)

Interest Rate Spread                                 3.61%       3.59%
Impact of Non-interest-bearing
 Funds on Net Yield on Earning
 Assets                                               .84%        .95%


Net Yield on Earning Assets                          4.45%       4.54%     4,895       4,500
</TABLE>
(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>
<TABLE>
<CAPTION>
                                                           CNB Corporation and Subsidiary
                                                            Rate/Volume Variance Analysis
                                               For the Nine Months Ended September 30, 1999 and 1998
                                                               (Dollars in Thousands)
<S>                             <C>      <C>      <C>         <C>         <C>          <C>          <C>       <C>     <C>     <C>
                                                                                                                              Change
                                Average  Average                           Interest     Interest              Change  Change  Due To
                                 Volume   Volume  Yield/Rate  Yield/Rate  Earned/Paid  Earned/Paid            Due to  Due To  Rate X
                                  1999     1998    1999 (1)    1998 (1)    1999 (1)     1998 (1)    Variance   Rate   Volume  Volume
Earning Assets:

Loans, Net of unearned
 income (2)                     244,355   227,986     8.76%       9.14%    16,048      15,636         412     (650)   1,122     (60)
Investment securities:
 Taxable                        132,895   115,083     5.86%       6.07%     5,838       5,239         599     (181)     811     (31)
 Tax-exempt                      14,732    13,620     7.29%       7.69%       806         786          20      (41)      64      (3)
Federal funds sold and
 securities purchased under
 agreement to resell             29,496    27,147     4.76%       5.32%     1,053       1,084         (31)    (114)      94     (11)
Other earning assets                  0         0      -           -            0           0           -        -        -       -

Total Earning Assets            421,478   383,836     7.51%       7.90%    23,745      22,745       1,000     (986)   2,091    (105)

Interest-bearing Liabilities:

Interest-bearing deposits       297,962   265,831     3.89%       4.29%     8,686       8,544         142     (797)   1,034     (95)
Federal funds purchased and
 securities sold under
 agreement to repurchase         32,622    34,624     4.11%       4.47%     1,006       1,162        (156)     (93)     (67)      4
Other short-term borrowings       1,518     1,555     4.48%       5.66%        51          66         (15)     (14)      (1)      -

Total Interest-bearing
 Liabilities                    332,102   302,010     3.91%       4.31%     9,743       9,772         (29)    (904)     966     (91)
Interest-free Funds
 Supporting Earning Assets       89,376    81,826

Total Funds Supporting

Earning Assets                  421,478   383,836     3.08%       3.39%     9,743       9,772         (29)    (904)     966     (91)

Interest Rate Spread                                  3.60%       3.59%
Impact of Non-interest-bearing
 Funds on Net Yield on Earning
 Assets                                                .83%        .92%


Net Yield on Earning Assets                           4.43%       4.51%    14,002      12,973
</TABLE>
(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 $200 for the three-month period
ended September 30, 1999 and $160 for the three-month period ended September
30, 1998. Net loan charge-offs/(recoveries) totaled $144 for the three-month
period ended September 30, 1999 and $94 for the same period in 1998.

The provision for possible loan losses was $530 for the nine-month period
ended September 30, 1999 and $525 for the nine-month period ended September
30, 1998. Net loan charge-offs/(recoveries) totaled $229 for the nine-month
period ended September 30, 1999 and $244 for the same period in 1998.

The reserve for possible loan losses as a percentage of net loans was 1.36%
at September 30, 1999 and 1.41% at September 30, 1998.  The provisions
during the nine-month periods ended September 30, 1999 and 1998 have
remained at a moderate level due to relatively low net loan charge-offs.

Securities Transactions - The Bank had no security sales during the first
three quarters of 1999 or 1998.  At September 30, 1999, December 31, 1998,
and September 30, 1998 market value appreciation/(depreciation) in the
securities portfolio totaled $(846), $1,988, and $2,309.  As indicated,
market value has decreased in 1999 due to rising market interest rates.

Other Income - Other income, net of any gains/losses on security
transactions, decreased by 3.0% from $1,161 for the three-month period ended
September 30, 1998 to $1,126 for the three-month period ended September 30,
1999.

Other income, net of any gains/losses on security transactions, increased by
8.0% from $1,134 for the nine-month period ended September 30, 1998 to
$1,175 for the nine-month period ended September 30, 1999.

This decrease in the three-month period ended September 30, 1999 was due to
a decrease in mortgage origination fees due to higher mortgage rates slowing
volume.  The overall nine-month period ended September 30, 1999 increase was
due primarily to higher merchant discount income.

Other Expenses - Other expenses increased by 8.2% from $2,906 for the three-
month period ended September 30, 1998 to $3,144 for the three-month period
ended September 30, 1999.   The major components of other expenses are
salaries and employee benefits which increased 9.1% from $1,697 to $1,852;
occupancy expense which decreased 5.6% from $425 to $401; and other
operating expenses which increased by 13.6% from $784 to $891.

Other expenses increased by 9.6% from $8,418 for the nine-month period ended
September 30, 1998 to $9,230 for the nine-month period ended September 30,
1999.  The major components of other expenses are salaries and employee
benefits which increased 9.8% from $5,063 to $5,561; occupancy expense which
decreased .5% from $1,242 to $1,236; and other operating expense which
increased by 15.1% from $2,113 to $2,433.
                                   21<PAGE>
The increase in the three-month and nine-month period ended September 30,
1999 salaries and employee benefits was due to the opening of the new "West
Conway Office" in the late fall of 1998.  Full-time-equivalent employees
have increased from 197 at September 30, 1998 to 207 at September 30, 1999.
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 increased 2.7% from $821 for the
three-month period ended September 30, 1998 to $843 for the three-month
period ended September 30, 1999.  Income before income taxes less interest
on tax-exempt investment securities increased by 3.0% from $2,338 for the
three-month period ended September 30, 1998 to $2,407 for the same period in
1999.  State tax liability increased as income before income taxes increased
3.1% from $2,508 to $2,585 during the same period.

Provisions for income taxes increased 3.3% from $2,234 for the nine-month
period ended September 30, 1998 to $2,308 for the nine-month period ended
September 30, 1999. Income before income taxes less interest on tax-exempt
investment securities increased by 4.9% from $6,184 for the nine-month
period ended September 30, 1998 to $6,484 for the same period in 1999 and
state tax liability increased as income before income taxes increased 4.7%
from $6,703 to $7,016 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 $44,899, $41,201, $37,717 and $34,496 at
September 30, 1999, December 31, 1998, December 31, 1997, and December 31,
1996, representing 9.55%, 9.66%, 9.90%, and 10.09% of total assets,
respectively. At September 30, 1999, 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 25% stock dividend on September 12, 1997.
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 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 an effort to simplify the current standards in the United States for
computing earnings per share ("EPS") and make them more compatible with
international standards, the FASB issued Statement of Financial Accounting
Standards ("SFAS") No. 128, "Earnings per Share" in February 1997.  SFAS
128 applies to entities with publicly traded common stock or potential
common stock and is effective for financial statements for periods ending
after December 15, 1997, including interim periods.  SFAS 128 simplifies the
standards for computing EPS previously found in APB Opinion 15, "Earnings
per Share."  It replaces the presentation of primary EPS with a
presentation of basic EPS.  It also requires dual presentation of basic and
diluted EPS on the face of the income statement for all companies with
complex capital structures and requires a reconciliation of the numerator
and denominator of the basic EPS computation to the numerator and
denominator of the diluted EPS computation.  The Company does not have any
dilutive common stock or equivalents and accordingly the adoption of SFAS
had no effect on earnings per share computations.

The FASB also issued SFAS No. 129, "Disclosure of Information about Capital
Structure" in February 1997. The purpose of SFAS 129 is to consolidate
existing disclosure requirements for ease of retrieval.  SFAS 129 contains
no change in disclosure requirements for companies that were subject to the
previously existing requirements. It applies to all entities and is
effective for Financial Statements for periods ending after December 15,
1997.

In June 1997, the FASB issued SFAS No. 130, "Reporting Comprehensive
Income. SFAS 130 establishes standards for reporting and display of
comprehensive income and its components (revenues, expenses, gains, and
losses) in a full set of general purpose financial statements.  SFAS 130
requires that all items that are required to be recognized under accounting
standards as components of comprehensive income be reported in a financial
statement that is displayed with the same prominence as other financial
statements.  SFAS 130 requires that companies (i) classify items of other
comprehensive income by their nature in a financial statement and (ii)
display the accumulated balance of other comprehensive income separately
from retained earnings and additional paid-in capital in the equity section
of the statement of financial condition.  SFAS 130 is effective for fiscal
years beginning after December 15, 1997. Reclassification of financial
statements for earlier periods provided for comprehensive purposes is
required. The adoption of SFAS 130 had no affect on the Company's net income
or stockholders' equity.

In June 1997, the FASB also issued SFAS No. 131, "Disclosures about
Segments of an Enterprise and Related Information."  SFAS 131 establishes
standards for the way public enterprises are to report information about
operating segments in annual financial statements and requires those
enterprises to  report selected  information  about  operating  segments in
                                  23<PAGE>
ACCOUNTING ISSUES (continued)

interim financial reports issued to shareholders.  It also establishes
standards for related disclosures about products and services, geographic
areas, and major customers.  SFAS 131 supersedes SFAS No. 14, "Financial
Reporting for Segments of a Business Enterprise."  SFAS 131 becomes
effective for financial statements for periods beginning after December 15,
1997, and requires that comparative information from earlier years be
restated to conform to its requirements.  The adoption of the provisions of
SFAS 131 is not expected to have a material impact on the Company.

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, 1999.  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 poses a significant challenge for financial institutions
because of the way date fields have been historically handled.  Older
versions of software used a two digit year date field and assumed the first
two digits of the year date to be "19".  All software applications using
this dating method must be replaced or modified to avoid computer systems
reverting to the year date of 1900 in the year 2000.

The Board of Directors early in 1997 assigned Year 2000 Project
implementation responsibility to the Electronic Data Processing (EDP)
Steering Committee.  The EDP Steering Committee is comprised of the
following members: President, Executive Vice President, Vice President and
Cashier, Vice President-Systems, Vice President-Data Processing, and
Assistant Vice President-Systems. The committee meets at least quarterly
with the meetings being reviewed by the Board Audit Committee and progress
reports made to the full Board.  The CPA firm of Tourville, Simpson, &
Henderson has been engaged to assist in Year 2000 Plan development,
implementation, and examination.

All systems used by the bank have been identified and prioritized with a
time line established for projected dates of upgrades, replacement,
certification, and testing.  Anticipated Year 2000 costs are projected to be
approximately $276,000.  The majority of this amount has been spent on
capital expenditures to be expensed over the next four years.  Twenty
thousand dollars will be spent in 1999 on public information and education.

All mission critical systems have been replaced or upgraded to Year 2000
compliance.  All mission critical systems have been tested to ensure Year
2000 functionality.  Further testing will be conducted during 1999 as deemed
appropriate.  The bank has in place a Business Interruption Plan in case of
unforeseen problems or failures.



                                   24
<PAGE>

YEAR 2000 (continued)

In June of 1999, The Conway National Bank and The Conway Chamber of Commerce
sponsored a Year 2000 Community Forum.  Participants included local
utilities, city and county governments, social security, health services,
the post office and educational institutions.  The public received progress
reports on participants' Year 2000 projects.

The bank has completed its Year 2000 Contingency Plan for cash services.
This plan will anticipate and provide for the increased demand for extra
cash by customers as we approach year-end.

    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 27 and 28).

All other exhibits, the filing of which are required with this Form, are not
applicable.


























                                          25
<PAGE>
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 11, 1999






















                                   26
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