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     June 30, 1998                           
                  
                                        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 June 30, 1998    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):  (803) 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 June 30, 1998 was 597,727.


<PAGE>	
CNB Corporation
                                                                       Page

PART I.    FINANCIAL INFORMATION    


Item 1.    Financial Statements:

           Consolidated Balance Sheets as of June 30, 1998,               1 
           December 31, 1997 and June 30, 1997                             
       
           Consolidated Statement of Income for the Three Months          2
           and Six Months Ended June 30, 1998 and 1997                     
                    
           Consolidated Statement of Comprehensive Income                 3
           for the Three Months and Six Months Ended 
           June 30, 1998 and 1997 

           Consolidated Statement of Changes in Stockholders'             4
           Equity for the Six Months Ended June 30, 1998         
           and 1997                                                        
   
           Consolidated Statement of Cash Flows for the Six Months        5
           Ended June 30, 1998 and 1997                                    
       
           Notes to Consolidated Financial Statements                  6-12 
 
Item 2.    Management's Discussion and Analysis of Financial          13-25
           Condition and Results of Operations                             
 

Item 4.    Submission of Matters to a Vote of Security Holders           25 
    

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>
                                         June 30,  December 31,  June 30,  
                                            1998        1997         1997
ASSETS:
<S>                                      <C>        <C>        <C>     
    Cash and due from banks		            $ 16,057   $ 14,371   $   15,981
    Interest bearing deposits with banks	      	0	         0	           0
    Investment Securities			               62,304     70,239	      68,734
      (Fair values of $63,056 at
       June 30, 1998, $70,893 at 
       December 31, 1997, and $68,834      
       at June 30, 1997)                                                   
    Securities Available for Sale		        65,240     53,184       62,184
      (Amortized cost of $64,895 at                                        
       June 30, 1998, $52,855 at 
       December 31, 1997, and $62,186
       at June 30, 1997)
    Federal Funds sold and securities 
       purchased under agreement 
       to resell					                      30,825     11,375	      14,350
    Loans:
       Gross Loans			                    	233,613    222,826      207,786
       Less unearned income		              (1,112)    (1,105)      (1,075)
         Loans, net of unearned income	   232,501    221,721      206,711 
       Less reserve for possible  
          loan losses			                   (3,094)	   (2,879)      (2,707)  
         Net loans				                    229,407    218,842      204,004
    Bank premises and equipment		           6,816      6,798	       6,957
    Other assets				                        7,043      6,335        6,344  
    Total assets			                       417,692    381,144      378,554  
LIABILITIES AND STOCKHOLDERS' EQUITY:
    Deposits:                                                              
       Non-interest bearing			             68,590     55,422       60,455   
    Interest-bearing			                   269,150    245,905      243,344   
      Total deposits			                   337,740    310,327      303,799   
    Federal funds purchased and 
       securities sold under agreement 
       to repurchase				                   31,898    	32,366       31,489
    Other short-term borrowings		           4,503      5,000        3,866  
    Other liabilities				                   3,052	     4,707     	  2,540
    Minority interest in subsidiary		          29   	     27           26  
      Total liabilities				               377,222    343,427      341,720   
 Stockholders' equity:
       Common stock, par value $10 per
       share:  Authorized 1,500,000 in 
       1998 and 500,000 in 1997;
       issued 598,687 in 1998 and
       issued 479,093 in 1997    		         5,987	     5,987	       4,791
       Surplus					                        24,552	    24,552	      15,701
       Undivided Profits			                 9,812	     7,030       16,348
       Net Unrealized Holding			              206	       197           (2)
        Gains (Losses) on                          
        Available-For-Sale Securities               
         Less:  Treasury stock	               (87)       (49)          (4)
            Total stockholders' equity     40,470     37,717       36,834  
         Total liabilities 
               and stockholders' equity   417,692    381,144      378,554  
</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  Six Months Ended    
                                                    June 30,            June 30,
                               								         1998		    1997      1998        1997
Interest Income:                                                             
<S>                                  		         <C>       <C>       <C>       <C> 
  Interest and fees on loans				                $  5,250  $  4,690  $  10,343 $  9,199
  Interest on investment securities:   
    Taxable investment securities			               1,762     1,825     3,449     3,582
    Tax-exempt investment securities		               170       176       349       356
    Other securities						                             3         3         3         3
  Interest on federal funds sold and securities 
    purchased under agreement to resell	       	     369       170       597       299
      Total interest income	       			             7,554     6,864    14,741    13,439
Interest Expense:
  Interest on deposits					                        2,876     2,509     5,618     4,875
  Interest on federal funds purchased and
    securities sold under agreement to 
    repurchase						                                 389       395       787       810
  Interest on other short-term borrowings	     	      17        18        43        35 

      Total interest expense				                   3,282     2,922     6,448     5,720
Net interest income				                            4,272     3,942     8,293     7,719
Provision for possible loan losses	           		     175       210       365       450

Net interest income after provision for 
  possible loan losses	                			     	   4,097     3,732     7,928     7,269
Other income:   
  Service charges on deposit accounts	         	     556       526     1,146     1,060
  Gains/(Losses) on securities                         0         0         0         0
  Other operating income				                         407       293       633       479
      Total other income		                    		     963       819     1,779     1,539 
 
Other expenses:
  Minority interest in income of subsidiary	           1         1         2         2
  Salaries and employee benefits			                1,703     1,563     3,364     3,076
  Occupancy expense					                             394       424       817       844
  Other operating expenses				                       660       699     1,329     1,306
      Total operating expenses		                   2,758     2,687     5,512     5,228
Income before income taxes				                     2,302     1,864     4,195     3,580
  Income tax provision					                          756       712     1,413     1,315
Net Income				                               			   1,546     1,152     2,782     2,265 
  
  Per share data (1): 
  Net income per weighted average shares
    outstanding						                            $  2.58   $  1.93   $  4.65   $  3.79
  Cash dividend paid per share			                $     0   $     0   $     0   $     0
  Book value per actual number of shares
    outstanding					                             $ 67.71   $ 61.51   $ 67.71   $ 61.51
  Weighted average number of shares outstanding  597,933   598,401   597,933   598,401

   Actual number of shares outstanding	        	 597,727   598,819   597,727   598,819
</TABLE>
(1) Adjusted for the effect of a 25% stock dividend issued during the third
    quarter of 1997.


                                                        






                                     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      Six Months      
                                            Ended              Ended
                                            June 30,          June 30,
                                        1998       1997   1998       1997
<S>                                     <C>      <C>      <C>      <C>
Net Income                              $1,546   $1,152   $2,782   $2,265 

Other comprehensive income, net of tax 

   Unrealized gains/(losses) 
     on securities:          
      Unrealized holding gains/(losses)    (49)     195       9      (29)  
       during period   
                                                                           
Net Comprehensive Income                $1,497   $1,347   $2,791   $2,236

</TABLE>











































                                    3
<PAGE>

                      CNB Corporation and Subsidiary
     Consolidated Statement of Changes in Stockholders' Equity
                     (All Dollar Amounts in Thousands)
                               (Unaudited)
<TABLE>
<CAPTION>
                                                      Six Months Ended     
                                                            June 30,       
                                                          
                                                     1998        1997      
<S>                                                 <C>          <C>
Common Stock:  
 $10 par value; 1,500,000 shares authorized in                  
 1997 and 500,000 in 1996;
Balance, January 1					                              5,987		      4,791    
Issuance of Common Stock				                          None	        None  
Balance at end of period				                         5,987	       4,791  



Surplus:
Balance, January 1					                             24,552	      15,697
Issuance of Common Stock				                         	None	      	 None
Gain on sale of treasury stock			                     None	           4  
Balance at end of period				                        24,552	      15,701  



Undivided profits:
Balance, January 1			                         		     7,030	      14,082
Net Income							                                    2,782	      	2,265 
Cash dividends declared					                          None	        None  
Balance at end of period				                         9,812	      16,348  



Net unrealized holding gains/(losses) on
available-for-sale securities:
Balance, January 1		                         			       197 		        27   
Change in net unrealized gains/(Losses)		                9	         (29)
Balance at end of period				                           206	          (2)



Treasury stock:
Balance, January 1	                         				       (49)	     	 (101)
Purchase of treasury stock					                       (160)	     	  (12) 
Reissue of treasury stock				                          122 	        109  
Balance at end of period				                           (87)	         (4) 


								           	             
Total stockholders' equity		                  		    40,470 	     36,834  
</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 six-month period ended June 30, 
                                                      1998        1997  
<S>                                                 <C>         <C>
OPERATING ACTIVITIES                
  Net income                                        $ 2,782     $ 2,265
  Adjustments to reconcile net income to
    net cash provided by operating activities
    Depreciation                                        329         324
    Provision for loan losses                           365         450
    Provision for deferred income taxes                (136)         70
    Loss (gain) on sale of investment 
     securities                                           0           0 
    (Increase) decrease in accrued interest 
     receivable                                        (670)       (604)
    (Increase) decrease in other assets                 (38)         70 
    (Decrease) increase in other liabilities             96         322  
    Increase in minority interest in 
     subsidiary                                           2           1  

        Net cash provided by operating
          activities                                  2,730       2,898  

INVESTING ACTIVITIES
  Proceeds from sale of investment securities
   available for sale                                     0           0
  Proceeds from maturities of investment 
   securities held to maturity		               	     11,715      10,875 
  Proceeds from maturities of investment
   securities available for sale				                  4,944	     	6,500
  Purchase of investment securities held to                                
 
   maturity                        			               (3,780)     (9,460)
  Purchase of investment securities 
   available for sale					                          (17,000)     (6,546)
  Decrease (increase) in interest-bearing
    deposits in banks                                     0           0
  (Increase) decrease in federal funds sold         (19,450)    (14,350) 
  (Increase) decrease in loans                      (10,780)    (21,836)
  Premises and equipment expenditures                  (347)       (415)

        Net cash provided by (used for)
          investing activities                      (34,698)    (35,232)

FINANCING ACTIVITIES
  Dividends paid                                     (1,794)     (1,433)
  Increase (Decrease) in deposits                    36,413      35,386
  (Decrease) increase in securities sold
    under repurchase agreement                         (468)     (1,529)
  (Decrease) increase in other  
    short-term borrowings                              (497)      1,547 
  Increase (decrease)in obligation under 
   mortgages and capital leases                           0          (6)

        Net cash provided by (used for)
          financing activities                       33,654      33,965  

        Net increase (decrease) in cash
          and due from banks                          1,686       1,631
CASH AND DUE FROM BANKS, BEGINNING OF YEAR           14,371      14,350  

CASH AND DUE FROM BANKS, JUNE 30, 1998 AND 1997     $16,057     $15,981  

CASH PAID (RECEIVED) FOR:
  Interest                                          $ 6,285     $ 5,358   
  Income taxes                                      $ 1,344     $ 1,326  
</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 adjusted for the 
  effect of a 25%  stock  dividend  paid during the third quarter of 1997, 
  597,933 for the six-month period ended June 30, 1998 and 598,401 for the 
  six-month period ended June 30, 1997.
            

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 six-month period ended June 30, 1998  and 
  for the years ended December 31, 1997 and 1996 were approximately $6,418, 
  $5,909, and $5,112, respectively.











































                                     6
<PAGE>	
NOTE 3 - INVESTMENT SECURITIES

Investment securities with a par value of approximately $80,904 at June 30, 
1998 and $69,965 at December 31, 1997 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 June 30, 1998 and at December 31, 1997.     
<TABLE>     
<CAPTION>
                                            June 30, 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	        $ 9,291 $   40	      $    2	 $ 9,329	 6.52%
   One to five years	        9,969	   109	           0	  10,078	 6.11  	
			    	                    19,260	   149	           2	  19,407	 6.31   
  Federal agencies
   Within one year	          7,162	    21            0    7,183	 5.93
   One to five years	       38,032	   204           35 	 38,201	 6.04  
			    	                    45,194	   225           35	  45,384	 6.02  
  State, county and      
  municipal                                                                
   Within one year		             0	     0	           0	       0	  -  
   One to five years   	       325	     8	           0	     333	 7.85  
                    				       325	     8	           0	     333	 7.85  
  Other Securities(Equity)     116	     0	           0	     116	  -     
  Total available for sale $64,895	$  382	      $   37 	$65,240	 6.10%        
          
HELD TO MATURITY               
  United States Treasury                 
   Within one year	         11,681	    40	           8	  11,713	 5.61%
   One to five years	        7,004 	   78            0    7,082  6.26  
				                        18,685	   118	           8	  18,795	 5.85  
  Federal agencies
   Within one year	          1,029	     0	           3	   1,026	 5.48%   
   One to five years        29,252    320            9   29,563  6.25  
 				                       30,281	   320           12 	 30,589	 6.23  
  State, county and        
  municipal
   Within one year	          1,228	    20	           0	   1,248	 9.55%
   One to five years	        6,616	   173	           2	   6,787	 8.10
   Six to ten years          5,339    141            0    5,480  7.43
   After ten years   	         155      2	           0      157	 7.44  
				                        13,338    336            2	  13,672	 7.96  
   Total held to maturity  $62,304 $  774       $   22	 $63,056  6.48%        
  </TABLE>      
(1) Tax equivalent adjustment based on a 34% tax rate.
          
    As  of  the quarter ended June 30, 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 $206 as of June 30, 1998.














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


<TABLE>     
<CAPTION>
                                       December 31, 1997                     		
		               	           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	         $10,252	   $   52 	$     8	     $10,296	 6.53%
   One to five years	        11,987	      125 	      -	      12,112	 6.30  
				                         22,239	      177 	      8	      22,408  6.41  
  Federal agencies
   Within one year	          	4,995	        1	      12 	      4,984	 5.11   
   One to five years	        23,805	      158	      18	      23,945	 6.26
    After ten years	          1,375	       21 	      -	       1,396	 6.90  
				                         30,175       180 	     30	      30,325  6.10  
  State, county and      
  municipal                                                                
   One to five years	           325	       10 	      -	         335	 7.85  

  Other - restricted 
   Federal Reserve
    Bank Stock                  116         -        -          116  6.03%  
  
  Total available for sale  $52,855	   $  367 	$    38	     $53,184	 6.24%     
          
HELD TO MATURITY               
  United States Treasury                 
   Within one year           17,703        11       49       17,665  5.14%
   One to five years	         9,977	      131 	      -	      10,108	 6.46       
                             27,680       142       49       27,773  5.62  
  Federal agencies
   One to five years         28,235       216       45       28,406  6.34  
                                                                               
  State, county and        
  municipal                                                                 
   Within one year		          1,540	        9	       -	       1,549	 8.88
   One to five years          6,436       214        1        6,649  8.71
   Six to ten years 		        5,746	      157	       -	       5,903	 7.39
   After ten years 	            602	       11	       -	         613	 7.39  
				                         14,324	      391 	      1	      14,714	 8.14  
   Total held to maturity   $70,239	   $  749	 $    95	     $70,893	 6.42%
  </TABLE>         
(1) Tax equivalent adjustment based on a 34% tax rate.
          
    As of the quarter ended  December 31, 1997, 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 $197 as of December 31, 1997.
















                                     8
<PAGE>	 

NOTE 4 - LOANS AND ALLOWANCE FOR LOAN LOSSES

     The following is a summary of loans at June 30, 1998 and December 31, 
1997 by major classification:
<TABLE>
<CAPTION>
                                           June 30,           December 31,
                                             1998                 1997     
 <S>                                       <C>                   <C>
Real estate loans - mortgage			            $  140,378		          $ 136,441
                  - construction		             16,953		             19,653
Commercial and industrial loans		              41,064		             34,606
Loans to individuals for household,      
  family and other consumer expenditures	      32,356		             30,772
Agriculture						                               2,697		              1,214
All other loans, including overdrafts	            165 		               140  
     Gross loans					                         233,613 		           222,826  
       Less unearned income			                 (1,112)		            (1,105) 
       Less reserve for loan losses		          (3,094)              (2,879)
         Net loans				                        229,407 		           218,842  
</TABLE>       

















































                                    9 
<PAGE>
NOTE 4 - LOANS AND ALLOWANCE FOR LOAN LOSSES, continued

     Changes in the reserve for loan losses for the quarter ended and six-
month period ended June 30, 1998 and 1997 and the year ended December 31, 
1997 are summarized as follows:
<TABLE> 
<CAPTION>
                                   	Quarter Ended    Six Months Ended  December       
                                          June 30,          June 30,         31,
                              	     1998        1997  1998        1997    1997  
<S>                                 <C>      <C>      <C>      <C>     <C>
Balance, beginning of period        $ 3,014  $ 2,534  $ 2,879  $ 2,370  $ 2,370
Charge-offs:
   Commercial, financial,
    and agricultural		             	     25       36       71       64      238
   Real Estate - construction 
    and mortgage				                     	9        4       10        4        5
   Loans to individuals			              109       76      225      157      399
       Total charge-offs		          $   143  $   116  $   306  $   225  $   642
Recoveries:
   Commercial, financial, and 
    agricultural	                			$     4  $    17  $    34  $    22  $   100 
   Real Estate - construction 
    and mortgage			                       3       14        4       14      106
   Loans to individuals			               41       48      118       76      145
       Total recoveries			          $    48  $    79  $   156  $   112  $   351
Net charge-offs/(recoveries)		      $    95  $    37  $   150  $   113  $   291
Additions charge to operations	     $   175  $   210  $   365  $   450  $   800
Balance, end of period			           $ 3,094  $ 2,707	 $ 3,094  $ 2,707	 $ 2,879       
Ratio of net charge-offs during
 the period to average loans  	                                            
 outstanding during the period	         .05%     .02%     .07%     .06%     .14%  
</TABLE>
The entire balance is available to absorb future loan losses.

At June 30, 1998 and December 31, 1997 loans on which no interest was being 
accrued totalled approximately $22 and $24, respectively and foreclosed 
real estate totalled $0 and $16, respectively; and loans 90 days past due 
and still accruing totalled $109 and $135, 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 (US)
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 June 30, 1998, 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 June 30, 1998 and December 31, 1997 is summarized as 
follows:    
                                      June 30,         December 31, 
                                       1998                1997        

Land and buildings                   $  8,949           $  8,853
Furniture, fixtures and equipment       5,320              5,313
Construction in progress                   82                  2
                                     $ 14,351           $ 14,168
Less accumulated depreciation and
   amortization                         7,535              7,370
                                     $  6,816           $  6,798

     Depreciation and amortization of bank premises and equipment charged 
to operating expense was $157 and $329 for the quarter ended and the six 
month period ended June 30, 1998, respectively and $700 for the year ended 
December 31, 1997.                                                         
           	
NOTE 6 - CERTIFICATES OF DEPOSIT IN EXCESS OF $100,000

     At June 30, 1998 and December 31, 1997, certificates of deposit of 
$100,000 or more included in time deposits totaled approximately $64,238 
and $56,305 respectively.  Interest expense on these deposits was 
approximately $883 and $1,757 for the quarter ended and the six-month 
period ended June 30, 1998 and $2,815 for the year ended December 31, 1997. 

NOTE 7 - SECURITIES SOLD UNDER REPURCHASE AGREEMENTS

     At June 30, 1998 and December 31, 1997, securities sold under 
repurchase agreements totaled approximately $31,898 and $32,366.  U.S. 
Government securities with a book value of $40,968 ($41,300 market value) 
and $38,984 ($39,242 market value), respectively, are used as collateral 
for the agreements.  The weighted-average interest rate of these agreements 
was 4.41 percent and 4.61 percent at June 30, 1998 and December 31, 1997.  
 
NOTE 8 - LINES OF CREDIT 

     At June 30, 1998, the Bank had unused short-term lines of credit to 
purchase Federal Funds from unrelated banks totaling $19,000.  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 Notes with a market value of $6,891 at June 30, 
1998.  The amount outstanding under the note totaled $4,503 and $5,000 at 
June 30, 1998 and December 31, 1997, respectively.

NOTE 9 - INCOME TAXES 

     Income tax expense for the quarter ended June 30, 1998 and June 30, 
1997 on pretax income of $2,302 and $1,864 totalled $756 and $712 
respectively.  Income tax expense for the six-month period ended June 30, 
1998 and June 30, 1997 on pretax income of $4,195 and $3,580 totalled 
$1,413 and $1,315 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.

     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.

                                   11
<PAGE>
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 June 30, 1998.                                            
                                                                     
     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 June 
30, 1998, commitments to extend credit totalled $21,710; financial standby 
letters of credit totalled $67; and performance standby letters of credit 
totalled $728.  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 one percent of 
employee salary deferred and fifty percent of employee contributions in 
excess of one percent and up to six percent of salary deferred.  The Board 
of Directors may also make discretionary contributions to the Plan.  For 
the three-month and six month period ended June 30, 1998 and years ended 
December 31, 1997, 1996 and 1995, $94, $187, $367, $336, and $266, 
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 June 30, 1998:      
                                                                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	 $41,351 16.92%  $19,556   8.0%	    $24,445 10.0%
 weighted assets)
Tier I Capital (to risk  38,295 15.67     9,778	  4.0		     14,667  6.0
 weighted assets)
Tier I Capital (to avg.	 38,295  9.51    16,109   4.0		     20,136  5.0
 assets)






                                    12 
<PAGE>	
NOTE 13 - CONDENSED FINANCIAL INFORMATION

     Following is condensed financial information of CNB Corporation 
(parent company only):
                               CONDENSED BALANCE SHEET
                                     JUNE 30, 1998
                                      (Unaudited)
ASSETS
   Cash                                                          $  1,716
   Investment in subsidiary                                        38,472
   Fixed assets                                                       245 
   Other assets                                                        37 
                                                                 $ 40,470

LIABILITIES AND STOCKHOLDERS' EQUITY
   Other liability                                               $      0
   Stockholders' equity                                            40,470 
                                                                 $ 40,470

                           CONDENSED STATEMENT OF INCOME
                  For the six-month period ended June 30, 1998             
                                      (Unaudited)

EQUITY IN NET INCOME OF SUBSIDIARY                               $  2,818
OTHER INCOME                                                            0
OTHER EXPENSES                                                        (36)
   Net Income                                                    $  2,782







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 12.5% from $206,711 at June 30, 1997 to $232,501 at June 30, 
1998 and have increased as a percentage of total assets from 54.6% to 55.7% 
over the same period as loan demand has remained solid in our market. 
Correspondingly, securities and federal funds sold have decreased as a 
percentage of total assets from 38.4% at June 30, 1997 to 37.9% at June 30, 
1998.  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 slightly as a percentage of total assets from 
16.0% at June 30, 1997 to 16.4% at June 30, 1998.  However, as more 
customers, both business and personal, are attracted to interest-bearing 
deposit accounts, we expect a decline in the percentage of demand deposits 
over the long-term. Interest-bearing deposits have increased from 64.3% of 
total assets at June 30, 1997 to 64.5% at June 30, 1998 while securities 
sold under agreement to repurchase have decreased from 8.3% to 7.6% 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 June 30, 
1998 and 1997:
<TABLE>
<CAPTION>          
                                       								           June  30,       
<S>                                                  <C>           <C> 
Assets:							                                       1998 		       1997	   
  Earning assets:                                    
   Loans, net of unearned income			                  55.7%	    	   54.6% 
     Investment securities				                       14.9	         18.2
   Securities Available for Sale			                  15.6	     	   16.4  
     Federal funds sold and securities purchased        
     under agreement to resell			                    	7.4		         3.8  
     Other earning assets				                           - 	           -   
       Total earning assets				                      93.6	         93.0  
    Other assets						                                6.4     		    7.0  
       Total assets					                            100.0%	    	  100.0% 
 Liabilities and stockholders' equity:
  Interest-bearing liabilities:  
   Interest-bearing deposits				                     64.5%	   	    64.3%
   Federal funds purchased and securities sold 
    under agreement to repurchase			                  7.6	    	     8.3
   Other short-term borrowings	                       1.1     		    1.0  
      Total interest-bearing liabilities	    	       73.2     		   73.6  
          Noninterest-bearing deposits		             16.4		        16.0  
     Other liabilities						                           .7	     	     .7  
     Stockholders' equity				                         9.7 	    	    9.7  
         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 
June 30, 1998 and 1997 of $1,546 and $1,152, respectively, resulting in a 
return  on average assets of 1.50% and 1.23% and a return on average 
stockholders' equity of 15.57% and 12.83%.

CNB Corporation experienced earnings for the six-month period ended June 
30, 1998 and 1997 of $2,782 and $2,265, respectively, resulting in a return 
on average assets of 1.38% and 1.24% and a return on average stockholders' 
equity of 14.25% and 12.99%.  

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  $39,138 or 
10.3% from  $378,554 at June 30, 1997 to $417,692 at June 30, 1998.  The 
following table sets forth the financial highlights for the three-month and 
six-month periods ending June 30, 1998 and June 30, 1997:                  
                                                                           
                           CNB Corporation                                 
                   CNB Corporation and Subsidiary
                              FINANCIAL HIGHLIGHTS
            (All Dollar Amounts, Except Per Share Data, in Thousands)
<TABLE>
<CAPTION>
                                       Three-Month Period          Six-Month Period
                                         Ended June 30,              Ended June 30,   
                                                  Percent                    Percent
                                                  Increase                   Increase
                                   1998     1997 (Decrease)   1998     1997 (Decrease)
<S>                              <C>      <C>      <C>      <C>      <C>     <C>
Net interest income after
    provision for loan losses	     4,097	   3,732    9.8%     7,928    7,269   9.1%
Income before income taxes	        2,302	   1,864   23.5      4,195    3,580  17.2 
Net Income				                     1,546	   1,152   34.2      2,782    2,265  22.8 
Per Share(1)    			                 2.58	    1.93   33.7       4.65     3.79  22.7 
Cash dividends declared		              0	       0      -          0        0     -
   Per Share(1)    			                 0	       0      -          0        0     -

Total assets			                  417,692  378,554   10.3%   417,692  378,554  10.3%
Total deposits	             		   337,740  303,799   11.2    337,740  303,799  11.2
Loans, net of unearned income	   232,501  206,711   12.5    232,501  206,711  12.5
Investment securities and 
    securities available for
    sale                         127,544  130,918   (2.6)   127,544  130,918  (2.6)
Stockholders' equity	             40,470   36,834    9.9     40,470   36,834   9.9
    Book value per share(1)        67.71    61.51   10.1      67.71    61.51  10.1

Ratios (2):
Annualized return on average
    total assets	                   1.50%    1.23%  22.0%      1.38%    1.24% 11.3% 

Annualized return on average
    stockholders' equity	          15.57%   12.83%  21.4%     14.25%   12.99%  9.7%

</TABLE>

(1) Adjusted for the effect of a 25% stock dividend issued during the third 
    quarter of 1997.

(2) For the three-month period ended June 30, 1998 and June 30, 1997,      
    average total assets amounted to $412,179 and $373,364 with average    
    stockholders' equity totaling $39,714 and $35,903, respectively. For   
    the six-month period ended June 30, 1998 and June 30, 1997, average    
    total assets amounted to $403,115 and $365,981 with average            
    stockholders' equity totaling $39,049 and $34,860, 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 1998 and 1997.  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 six-month periods ended June 30, 1998 and 1997 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 8.1% increase from $4,032 
for the three-month period ended June 30, 1997 to $4,360 for the 
three-month period ended June 30, 1998.  During the same period, total 
fully-tax-equivalent interest income increased by 9.9% from $6,954 to 
$7,642 and total interest expense increased by 12.3% from $2,922 to $3,282. 
Fully-tax-equivalent net interest income as a percentage of total earning 
assets has shown a decrease of .11% from 4.63% for the three-month period 
ended June 30, 1997 to 4.52% for the three-month period ended June 30, 
1998.                                                                      
  
Fully-tax-equivalent net interest income showed a 7.2% increase from $7,902 
for the six-month period ended June 30, 1997 to $8,473 for the six-month 
period ended June 30, 1998.  During the same period, total fully-tax-
equivalent interest income increased by 9.5% from $13,622 to $14,921 and 
total interest expense increased by 12.7% from $5,720 to $6,448. Fully-tax-
equivalent net interest income as a percentage of total earning assets has 
shown a decrease of .13% from 4.62% for the six-month period ended June 30, 
1997 to 4.49% for the six-month period ended June 30, 1998.

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 6/30/98     Three Months Ended 6/30/97 
                                     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 	   $230,100	$ 5,250     	9.13%	   $202,950	 $ 4,690	    9.24%
     Securities:            
     Taxable		                  		    115,790	  1,765     	6.10	     119,752	   1,828	    6.11
     Tax-exempt			                     13,381	    258	     7.71	      13,542	     266	    7.86
   Federal funds sold and                           
     securities purchased under
     agreement to resell		             26,840	    369	     5.50	      12,456	     170	    5.46
   Other earning assets		                   0	      0	        -	           0	       0	       -
      Total earning assets 		         386,111	  7,642	     7.92	     348,700	   6,954	    7.98
    Other assets			                    26,068           			           24,664
      Total assets			                $412,179			                    $373,364            

Liabilities and stockholders equity:
   Interest-bearing liabilities:     
   Interest-bearing deposits     	   $266,926	  2,876     	4.31	    $241,654	 $ 2,509	    4.15
   Federal funds purchased and                       
    securities sold under
    agreement to repurchase	           34,561	    389     	4.50	      33,799	     395	    4.67
   Other short-term borrowings		        1,661	     17	     4.09	       1,555	      18	    4.63
   Obligations under mortgages
     and capitalized leases	                0	      0	        -	           2	       0	    8.00
       Total interest-bearing
         Liabilities			              $303,148	$ 3,282	     4.33	    $ 77,010	 $ 2,922	    4.22
   Noninterest-bearing deposits	       65,777			                      58,252
   Other liabilities			                	3,540				                      2,199
   Stockholders' equity		              39,714				                     35,903   
         Total liabilities and                                            
           stockholders' equity	     $412,179				                   $373,364
   Net interest income as a percent                        
     of total earning assets	        $386,111	$ 4,360	     4.52	    $348,700	 $ 4,032	    4.63
  
(1)  Tax-equivalent adjustment         
     based on a 34% tax rate	      		$     88				                   $     90
</TABLE>
<TABLE>
<CAPTION>
<S>                                                      <C>                        <C>   
Ratios:
Annualized return on average total assets               			1.50					                  1.23
Annualized return on average stockholders' equity	        15.57				                  12.83 
Cash dividends declared as a percent of net income		          0					                     0
Average stockholders' equity as a percent of:
  Average total assets					                               	9.64				                   9.62
  Average total deposits					                             11.94				                  11.97
  Average loans, net of unearned income		                 17.26				                  17.69
Average earning assets as a percent of   
average total assets	                           					     93.68				                  93.39
</TABLE>














                                               17
<PAGE>
	CNB Corporation and Subsidiary
	Selected Financial Data
<TABLE>
<CAPTION>
                                    Six Months Ended 6/30/98       	Six Months Ended 6/30/97 
                                    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	$227,016	  $10,343 	    9.11%	    $196,909	 $ 9,199	    9.34%
     Securities:            
     Taxable	                 			 113,842	    3,452	     6.06  	    119,482	   3,585	    6.00
     Tax-exempt			                 13,612	      529	     7.77 	      13,747      539	    7.84
   Federal funds sold and                           
     securities purchased under
     agreement to resell		         23,157	      597	     5.16 	      11,628	     299	    5.14
   Other earning assets		               0	        0	        -	            0	       0	       -
      Total earning assets		      377,627	   14,921	     7.90	      341,766	  13,622	    7.97
    Other assets			                25,488				                        24,215
      Total assets		            	$403,115                   				   $365,981

Liabilities and stockholders'
 equity:
   Interest-bearing liabilities:     
   Interest-bearing deposits	    $262,355	    5,618	     4.28	     $237,663	 $ 4,875	    4.10
   Federal funds purchased and                       
    securities sold under
    agreement to repurchase	       34,912	      787	     4.51	       34,872	     810	    4.65
   Other short-term borrowings	     1,566	       43	     5.49	        1,396 	     35 	   5.01
   Obligations under mortgages
     and capitalized leases	            0	        0	        -  	          3	       0	    8.00
       Total interest-bearing
         liabilities 		          $298,833	  $ 6,448	     4.32	     $273,934	 $ 5,720	    4.18  
Noninterest-bearing deposits	      61,792			                         54,299
   Other liabilities			             3,441		                   		      2,888 
   Stockholders' equity		          39,049	                   			     34,860   
         Total liabilities and                                            
           stockholders' equity	 $403,115				                      $365,981   
   Net interest income as a
    percent of total earning
    assets	                      $377,627	  $ 8,473	     4.49	     $341,766	 $ 7,902	    4.62
  
(1)  Tax-equivalent adjustment         
     based on a 34% tax rate			  $    180			                       $    183
</TABLE>
<TABLE>
<CAPTION>
<S>                                                     <C>                             <C>
Ratios:
Annualized return on average total assets			             1.38				                        1.24
Annualized return on average stockholders' equity	      14.25			                        12.99
Cash dividends declared as a percent of net income		        0					                          0
Average stockholders' equity as a percent of:
  Average total assets						                             9.69				  	                     9.53
  Average total deposits					                           12.05              				         11.94
  Average loans, net of unearned income		               17.20				                       17.70
Average earning assets as a percent of   
average total assets						                              93.68                           93.38
</TABLE>








                                               18
<PAGE>
<TABLE>
<CAPTION>
                                                          CNB Corporation and Subsidiary
                                                           Rate/Volume Variance Analysis
                                               For the Three Months Ended June 30, 1998 and 1997
                                                              (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
                                 1998     1997    1998 (1)    1997 (1)    1998 (1)     1997 (1)    Variance   Rate   Volume   Volume
Earning Assets:                                                                  

Loans, Net of unearned 
 income (2)                    230,100   202,950     9.13%       9.24%     5,250       4,690         560      (56)     624       (8)
Investment securities:  
 Taxable                       115,790   119,752     6.10%       6.11%     1,765       1,828         (63)      (3)     (61)	      1
 Tax-exempt                     13,381    13,542     7.71%       7.86%       258         266          (8)      (5)      (3)       - 
Federal funds sold and
 securities purchased under
 agreement to resell            26,840    12,456     5.50%       5.46%       369         170         199        1      196        2 
Other earning assets                 0         0      -           -            0           0           -        -        -        -

Total Earning Assets           386,111   348,700     7.92%       7.98%     7,642       6,954         688      (63)     756       (5)

Interest-bearing Liabilities:
 
Interest-bearing deposits      266,926   241,654     4.31%       4.15%     2,876       2,509         367       97      260       10 
Federal funds purchased and
 securities sold under       
 agreement to repurchase        34,561    33,799     4.50%       4.67%       389         395          (6)     (14)       8        - 
Other short-term borrowings      1,661     1,555     4.09%       4.63%        17          18          (1)      (2)       1        - 
Mortgage indebtedness and
 obligations under capital-
 ized leases                         0         2      -          8.00%         0           0           -        -        -        -

Total Interest-bearing       
 Liabilities                   303,148   277,010     4.33%       4.22%     3,282       2,922         360       81      269       10
Interest-free Funds
 Supporting Earning Assets      82,963    71,690

Total Funds Supporting
Earning Assets                 386,111   348,700     3.40%       3.35%     3,282       2,922         360       81      269       10

Interest Rate Spread                                 3.59%       3.76%
Impact of Non-interest-bearing
 Funds on Net Yield on Earning
 Assets                                               .93%        .87%              
             

Net Yield on Earning Assets                          4.52%       4.63%     4,360       4,032
</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 Six Months Ended June 30, 1998 and 1997
                                                              (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
                                 1998     1997    1998 (1)    1997 (1)    1998 (1)     1997 (1)    Variance   Rate   Volume   Volume
Earning Assets:                                                                  

Loans, Net of unearned 
 income (2)                    227,016   196,909     9.11%       9.34%    10,343       9,199       1,144     (226)    1,405     (35)
Investment securities:  
 Taxable                       113,842   119,482     6.06%       6.00%     3,452       3,585        (133)      36     (167)      (2)
 Tax-exempt                     13,612    13,747     7.77%       7.84%       529         539         (10)      (5)      (5)       -
Federal funds sold and
 securities purchased under
 agreement to resell            23,157    11,628     5.16%       5.14%       597         299         298        1      296        1 
Other earning assets                 0         0      -           -            0           0           -        -        -        -

Total Earning Assets           377,627   341,766     7.90%       7.97%    14,921      13,622       1,299     (194)   1,529      (36)

Interest-bearing Liabilities:
 
Interest-bearing deposits      262,355   237,663     4.28%       4.10%     5,618       4,875         743      214      507       22 
Federal funds purchased and
 securities sold under       
 agreement to repurchase        34,912    34,872     4.51%       4.65%       787         810         (23)     (24)       1        - 
Other short-term borrowings      1,566     1,396     5.49%       5.01%        43          35           8        3        4        1
Mortgage indebtedness and
 obligations under capital-
 ized leases                         0         3      -          8.00%         0           0           -        -        -        -

Total Interest-bearing       
 Liabilities                   298,833   273,934     4.32%       4.18%     6,448       5,720         728      193      512       23
Interest-free Funds
 Supporting Earning Assets      78,794    67,832

Total Funds Supporting                                                           
                                                 
Earning Assets                 377,627   341,766     3.41%       3.35%     6,448       5,720         728      193      512       23

Interest Rate Spread                                 3.58%       3.79%
Impact of Non-interest-bearing
 Funds on Net Yield on Earning
 Assets                                               .91%        .83%              
             

Net Yield on Earning Assets                          4.49%       4.62%     8,473       7,902
</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 $175 for the three-month period 
ended June 30, 1998 and $210  for the three-month period ended June 30, 
1997.  Net loan charge-offs/(recoveries) totaled $95 for the three-month 
period ended June 30, 1998 and $37 for the same period in 1997.

The provision for possible loan losses was $365 for the six-month period 
ended June 30, 1998 and $450 for the six-month period ended June 30, 1997. 
Net loan charge-offs/(recoveries) totaled $150 for the six-month period 
ended June 30, 1998 and $113 for the same period in 1997.

The reserve for possible loan losses as a percentage of  net  loans was 
1.35%  at June 30, 1998 and 1.33% at June 30, 1997.  The decreased 
provision  during  the  three-month and six-month period ended June 30, 
1998 was due to the decreased rate of loan growth.  Continued moderate net 
charge-offs through the remainder of 1998 are anticipated by management.

Securities Transactions - The Bank had no security sales during the first 
half of 1998 or 1997.  At June 30, 1998, December 31, 1997, and June 30, 
1997 market value appreciation/(depreciation) in the securities portfolio 
totaled $1,097, $983, and $98.  As indicated, market value increased in 
1997 and 1998 due to falling market interest rates.

Other Income - Other income, net of any gains/losses on security 
transactions, increased by 17.6% from $819 for the three-month period ended 
June 30, 1997 to $963 for  the three-month period ended June 30, 1998.

Other income, net of any gains/losses on security transactions, increased 
by 15.6% from $1,539 for the six-month period ended June 30, 1997 to $1,779 
for the six-month period ended June 30, 1998. 

This increase in the three-month and six-month period ended June 30, 1998 
was due to an increase in deposit account volumes; higher merchant discount 
income, and a June 1, 1997 increase in overall service charge rates.

Other Expenses - Other expenses increased by 2.6% from $2,687 for the 
three-month period ended June 30, 1997 to $2,758 for the three-month period 
ended June 30, 1998.   The major components of other expenses are salaries 
and employee benefits  which  increased 9.0% from $1,563 to $1,703; 
occupancy expense which decreased 7.1%  from  $424 to $394; and other 
operating expenses which decreased by 5.6% from $699 to $660.              
           
Occupancy expense has decreased slightly as depreciation expense has 
remained flat at $157 during the second quarter of 1997 and 1998.  Salaries 
and employee benefits expense has increased due to an increase of full-
time-equivalent employees from 184 at June 30, 1997 to 196 at June 30, 1998 
as the bank prepares to open the new "West Conway Office" in the fall of 
1998.

                                     21
<PAGE>
Other Expenses (continued) - Other expenses increased by 5.4% from $5,228 
for the six-month period ended June 30, 1997 to $5,512 for the six-month 
period ended June 30, 1998.  The major components of other expenses are 
salaries and employee benefits which increased 9.4% from $3,076 to $3,364; 
occupancy expense which decreased 3.2% from $844 to $817; and other 
operating expense which increased by 1.8% from $1,306 to $1,329. Occupancy 
expense has shown a slight decline as depreciation expense has increased 
only 1.5% from $324 during  the first half of 1997 to $329 for the same 
period in 1998. Salaries and employee benefits expenses increased due to 
the afore-mentioned increase in full-time-equivalent employees.

Income Taxes - Provisions for income taxes increased 6.2% from $712 for the 
three-month period ended June 30, 1997 to $756 for the three-month period 
ended June 30, 1998.  Income before income taxes less interest on 
tax-exempt investment securities increased by 26.3% from $1,688 for the 
three-month period ended June 30, 1997 to $2,132 for the same period in 
1998.  State tax liability increased as income before income taxes 
increased 23.5% from $1,864 to $2,302 during the same period.

Provisions for income taxes increased 7.5% from $1,315 for the six-month 
period ended June 30, 1997 to $1,413 for the six-month period ended June 
30, 1998. Income before income taxes less interest on tax-exempt investment 
securities increased by 19.3% from $3,224 for the six-month period ended 
June 30, 1997 to $3,846 for the same period in 1998 and state tax liability 
increased as income before income taxes increased 17.2% from $3,580 to 
$4,195 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, on a short-term basis, 
to borrow funds from the Federal Reserve System.  Management feels that 
liquidity sources are more than adequate to meet funding needs.

CAPITAL RESOURCES

Total stockholders' equity was $40,470, $37,717, $34,496, and $32,195 at 
June 30, 1998, December 31, 1997, December 31, 1996, and December 31, 1995, 
representing 9.69%, 9.90%, 10.09%, and 9.91% of total assets, respectively. 
At June 30, 1998, 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 continued to pay a $3.00 per share annual cash dividend at year-
end 1997 on the increased number of outstanding shares which has the effect 
of increasing 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

The FASB issued Statement of Financial Accounting Standard (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 for comprehensive purposes is required.

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 
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 statement of financial position as assets 
or liabilities.  The statement is effective for fiscal years and quarters 
beginning after June 15, 1999.  Because the Company has limited use of 
derivative transactions at this time, management does not expect that this 
standard would have a significant effect on the Company.


                                   23
<PAGE>          
ACCOUNTING ISSUES (continued)


In April 1998, the FASB issued SFAS 132, "Employers' Disclosures about 
Pensions and Other Postretirement Benefits".  The new Statement revises the 
required disclosures for employee benefit plans, but it does not change the 
measurement or recognition of such plans.  While the new standard requires 
some additional information about benefit plans, it helps preparers of 
financial statements by eliminating certain disclosures and by 
standardizing the disclosures for pensions and other postretirement 
benefits to the extent practicable.  SFAS 132 supercedes the disclosure 
requirements in SFAS 87, "Employers' Accounting for Pensions", SFAS 88, 
"Employers' Accounting for Settlements and Curtailments of Defined Benefit 
Pension Plans and for Termination Benefits", and SFAS 106, "Employers' 
Accounting for Postretirement Benefits Other than Pensions".  The new 
disclosures are effective for fiscal years beginning after December 15, 
1997.  The adoption of SFAS 132 will not have an impact on the financial 
statements of the Company due to the disclosure only requirements.

In March 1998, the Accounting Standards Executive Committee of the AICPA 
issued Statement of Position 98-1, Accounting for the Costs of Computer 
Software Developed or Obtained for Internal Use  (SOP 98-1), which 
provided guidance as to when it is or is not appropriate to capitalize the 
cost of software developed or obtained for internal use.  SOP 98-1 is 
effective for financial statements for fiscal years beginning after 
December 15, 1998 with early adoption encouraged.  The Company does not 
anticipate that adoption of SOP 98-1 will have a material effect on its 
financial statements.    

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 were identified and prioritized with a time 
line established for projected dates of upgrades, replacement, 
certification, and testing.  All mission critical systems have been 
upgraded or replaced.  Testing of all systems to ensure Year 2000 
compliance is expected to be completed by December 31, 1998.  Anticipated 
Year 2000 costs are projected to be approximately $276,000.

                                  24
<PAGE>
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

An Annual Meeting of shareholders of CNB Corporation was held in the main 
office building of The Conway National Bank at 1400 Third Avenue, Conway, 
South Carolina, at 4:15 p.m., Conway, South Carolina time, on May 12, 1998.

The purpose of the Annual Meeting was to: (1) elect four Directors; and (2) 
ratify the appointment of Elliott, Davis, and Company, Certified Public 
Accountants, as the Company's independent public accountant for the fiscal 
year ending December 31, 1998.

Proxies for the meeting were solicited pursuant to Regulation 14 under the 
Act; there was no solicitation in opposition to the management's nominees 
as listed in the proxy statement; and all of such nominees were elected.

There were 391,994 of the 597,857 shares issued present or represented by 
proxy and all shares were voted for the election of the four Directors 
listed as management's nominees in the proxy statement; and for the 
ratification of Elliott, Davis, and Company as the Company's 1998 
independent public accountant. 




                         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:  August 12, 1998   






















                                   26
<PAGE>