<PAGE>

                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                   FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                              EXCHANGE ACT OF 1934

                  FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2005

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                              EXCHANGE ACT OF 1934

                     FOR THE TRANSITION PERIOD FROM - TO --

                         Commission file number 0-30665

                          CNB Financial Services, Inc.
--------------------------------------------------------------------------------
             (Exact Name of Registrant as specified in its charter)

          West Virginia                                 55 - 0773918
-------------------------------------       ------------------------------------
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
 incorporation or organization)

  101 S. Washington Street, Berkeley Springs, WV                    25411
-----------------------------------------------------           ---------------
    (Address of principal executive offices)                      (Zip Code)

Issuer's telephone number, ( 304 ) 258 - 1520

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 [ ]

Indicate by check mark whether the registrant is an accelerated filer (as
defined in Exchange Act Rule 12b-2).

                                YES [ ]         NO [X]

The aggregate value of the common stock of the Registrant that was held by
non-affiliates as of the most recently completed second fiscal quarter (June 30,
2005), was approximately $25.7 million. This amount was based on the last
closing sale price of a share of common stock of $67.00 as of the same date.

  Common Stock $1 par value, 458,048 shares outstanding as of August 3, 2005.

<PAGE>

                          CNB FINANCIAL SERVICES, INC.

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                   PAGE
<S>                                                                                                <C>
PART 1: FINANCIAL INFORMATION

     Item 1. Financial Statements

             Consolidated Statements of Financial Condition as of June 30, 2005 (Unaudited)
                 and December 31, 2004...........................................................    3

             Consolidated Statements of Income for the Six Months ended June 30, 2005
                 and 2004 (Unaudited)............................................................    4

             Consolidated Statements of Changes in Shareholders' Equity for the Six
                 Months Ended June 30, 2005 (Unaudited) and the Year Ended December 31, 2004.....    5

             Consolidated Statements of Cash Flows for the Six Months
                 Ended June 30, 2005 and 2004 (Unaudited)........................................    6

             Notes to Consolidated Financial Statements (Unaudited)..............................    7

     Item 2. Management's Discussion and Analysis of Financial Condition and
                 Results of Operations for the Six Months ended June 30, 2005....................   13

     Item 3. Quantitative and Qualitative Disclosures about Market Risk..........................   22

     Item 4. Controls and Procedures.............................................................   23

PART II:     OTHER INFORMATION

     Item 1. Legal Proceedings...................................................................   24

     Item 6. Exhibits and Reports on Form 8-K....................................................   24

             SIGNATURES..........................................................................   25
</TABLE>

                           Forward-Looking Statements

      The Private Securities Litigation Reform Act of 1995 indicates that the
disclosure of forward-looking information is desirable for investors and
encourages such disclosure by providing a safe harbor for forward-looking
statements that involve risk and uncertainty. All statements other than
statements of historical fact included in this Form 10-Q including statements in
Management's Discussion and Analysis of Financial Condition and Results of
Operations are, or may be deemed to be, forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. In order to comply with the terms of the safe
harbor, CNB notes that a variety of factors could cause CNB's actual results and
experience to differ materially from the anticipated results or other
expectations expressed in those forward-looking statements. These factors could
include the following possibilities: (1) competitive pressures among depository
and other financial institutions may increase significantly; (2) changes in the
interest rate environment may reduce margins; (3) general economic conditions
may become unfavorable resulting in reduced credit quality or demand for loans;
(4) legislative or regulatory changes could increase expenses; and (5)
competitors may have greater financial resources and develop products that
enable them to compete more successfully than CNB.

                                       2
<PAGE>

                  CNB FINANCIAL SERVICES, INC. AND SUBSIDIARY
                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

<TABLE>
<CAPTION>
                                                        JUNE 30,     DECEMBER 31,
                 ASSETS                                   2005           2004
                                                      ------------   ------------
                                                      (Unaudited)
<S>                                                   <C>            <C>
Cash and due from banks                               $ 10,020,034   $ 10,047,939
Federal funds sold                                          32,000         91,000
Securities available for sale
   (at approximate market value)                        52,556,107     59,740,291
Federal Home Loan Bank stock, at cost                      993,700      1,169,800
Federal Reserve Bank stock, at cost                        129,650        129,650
Loans and lease receivable, net                        169,240,721    154,919,582
Accrued interest receivable                              1,098,888      1,042,573
Premises and equipment, net                              6,574,962      6,044,446
Deferred income taxes                                      586,722        512,224
Cash surrender value of life insurance                   1,278,684      1,168,922
Intangible assets                                          679,325        738,057
Other assets                                               676,273      1,393,582
                                                      ------------   ------------

         TOTAL ASSETS                                 $243,867,066   $236,998,066
                                                      ============   ============

           LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
   Deposits:
        Demand                                        $ 41,049,331   $ 36,965,406
        Interest-bearing demand                         57,417,218     48,055,089
        Savings                                         32,412,355     31,981,754
        Time, $100,000 and over                         30,849,036     34,265,305
        Other time                                      56,644,016     56,460,984
                                                      ------------   ------------
                                                      $218,371,956   $207,728,538
   Accrued interest payable                                515,106        543,551
   FHLB borrowings                                       3,900,000      8,600,000
   Securities sold under repurchase agreement              229,330        216,909
   Accrued expenses and other liabilities                1,880,523      1,760,328
                                                      ------------   ------------

         TOTAL LIABILITIES                            $224,896,915   $218,849,326
                                                      ------------   ------------

SHAREHOLDERS' EQUITY
   Common stock, $1 par value; 5,000,000  shares
       authorized; 458,048 shares outstanding         $    458,048   $    458,048
   Capital surplus                                       3,863,592      3,863,592
   Retained earnings                                    15,107,345     14,172,144
   Accumulated other comprehensive income                 (458,834)      (345,044)
                                                      ------------   ------------

         TOTAL SHAREHOLDERS' EQUITY                   $ 18,970,151   $ 18,148,740
                                                      ------------   ------------

         TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $243,867,066   $236,998,066
                                                      ============   ============
</TABLE>

The Notes to Consolidated Financial Statements are an integral part of these
statements.

                                       3
<PAGE>

                  CNB FINANCIAL SERVICES, INC. AND SUBSIDIARY
                 CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

<TABLE>
<CAPTION>
                                               THREE MONTHS ENDED          SIX MONTHS ENDED
                                                    JUNE 30,                   JUNE 30,
                                           ------------------------    ------------------------
                                              2005          2004          2005          2004
                                           ----------    ----------    ----------    ----------
<S>                                        <C>           <C>           <C>           <C>
INTEREST INCOME
   Interest and fees on loans              $2,686,015    $2,429,297    $5,195,709    $4,813,495
   Interest and dividends on securities
      U.S. Government agencies and
         corporations                         390,111       251,320       747,337       494,869
      Mortgage backed securities               83,257        76,763       174,561       166,494
      State and political subdivisions        109,772        58,116       217,453       103,094
      Other                                    12,475         7,048        19,432         9,911
   Interest on federal funds sold                 412         4,821           642         7,606
                                           ----------    ----------    ----------    ----------
                                           $3,282,042    $2,827,365    $6,355,134    $5,595,469
                                           ----------    ----------    ----------    ----------
INTEREST EXPENSE
   Interest on interest bearing demand,    $  833,210    $  746,012    $1,604,216    $1,524,871
     savings and time deposits
   Interest on FHLB borrowings                 54,876         1,257        91,972         4,157
                                           ----------    ----------    ----------    ----------
                                           $  888,086    $  747,269    $1,696,188    $1,529,028
                                           ----------    ----------    ----------    ----------

           NET INTEREST INCOME             $2,393,956    $2,080,096    $4,658,946    $4,066,441

PROVISION FOR LOAN LOSSES                     102,000        94,000       208,000       181,000
                                           ----------    ----------    ----------    ----------

           NET INTEREST INCOME AFTER
               PROVISION FOR LOAN LOSSES   $2,291,956    $1,986,096    $4,450,946    $3,885,441
                                           ----------    ----------    ----------    ----------

NONINTEREST INCOME
   Service charges on deposit accounts     $  311,907    $  286,844    $  569,388    $  544,033
   Other service charges, commissions
      and fees                                136,106       101,373       266,100       190,620
   Insurance commissions                       39,902        33,711        78,041        66,713
   Other operating income                      16,609        13,455        33,824        30,986
   Net gain on sale of securities               1,491        85,670             -       135,546
   Income from title company                    8,727        17,791        15,237        27,620
                                           ----------    ----------    ----------    ----------
                                           $  514,742    $  538,844    $  962,590    $  995,518
                                           ----------    ----------    ----------    ----------
NONINTEREST EXPENSES
   Salaries                                $  766,896    $  620,503    $1,471,725    $1,216,421
   Employee benefits                          265,638       221,328       534,168       439,207
   Occupancy of premises                      110,084        84,505       200,417       162,411
   Furniture and equipment expense            227,414       210,956       430,155       413,010
   Other operating expenses                   555,975       532,431     1,060,281       948,319
   Net loss on sale of securities                                 -           574             -
                                           ----------    ----------    ----------    ----------
                                           $1,926,007    $1,669,723    $3,697,320    $3,179,368
                                           ----------    ----------    ----------    ----------

            INCOME BEFORE INCOME TAXES     $  880,691    $  855,217    $1,716,216    $1,701,591

PROVISION FOR INCOME TAXES                    281,329       267,391       588,635       544,896
                                           ----------    ----------    ----------    ----------

            NET INCOME                     $  599,362    $  587,826    $1,127,581    $1,156,695
                                           ==========    ==========    ==========    ==========

BASIC EARNINGS PER SHARE                   $     1.31    $     1.28    $     2.46    $     2.52
                                           ==========    ==========    ==========    ==========
</TABLE>

The Notes to Consolidated Financial Statements are an integral part of these
statements.

                                       4
<PAGE>

                  CNB FINANCIAL SERVICES, INC. AND SUBSIDIARY
     CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                                 ACCUMULATED
                                                                                                     OTHER          TOTAL
                                                    COMMON          CAPITAL        RETAINED      COMPREHENSIVE   SHAREHOLDERS'
                                                    STOCK           SURPLUS        EARNINGS          INCOME         EQUITY
                                                 ------------    ------------    ------------    -------------   -------------
<S>                                              <C>             <C>             <C>             <C>             <C>
BALANCE, DECEMBER 31, 2003                       $    458,048    $  3,863,592    $ 12,460,556    $    (213,255)  $  16,568,941
                                                                                                                 -------------
Comprehensive income:

   Net income for 2004                                      -               -       2,343,693                -       2,343,693
  Change in unrealized gains
    (losses) on securities
    available for sale (net of tax of $65,354)              -               -               -         (106,630)       (106,630)
  Change in minimum pension liability
     adjustment (net of tax of $15,419)                                                                (25,159)        (25,159)
                                                                                                                 -------------
Total Comprehensive Income                                  -               -               -                -       2,211,904
                                                                                                                 -------------
Cash dividends ($1.38 per share)                            -               -        (632,105)               -        (632,105)
                                                 ------------    ------------    ------------    -------------   -------------

BALANCE, DECEMBER 31, 2004                       $    458,048    $  3,863,592    $ 14,172,144    $    (345,044)  $  18,148,740
                                                                                                                 -------------
Comprehensive income:
  Net income for six months
     ended June 30, 2005                                    -               -       1,127,581                -       1,127,581
  Change in unrealized gains
    (losses) on securities
    available for sale (net of tax of $69,741)              -               -               -         (113,790)       (113,790)
                                                                                                                 -------------
Total Comprehensive Income (Loss)                           -               -               -                -       1,013,791
                                                                                                                 -------------
Cash dividends ($0.42 per share)                                                     (192,380)                        (192,380)
                                                 ------------    ------------    ------------    -------------   -------------

BALANCE, JUNE 30, 2005                           $    458,048    $  3,863,592    $ 15,107,345    $    (458,834)  $  18,970,151
                                                 ============    ============    ============    =============   =============
</TABLE>

The Notes to Consolidated Financial Statements are an integral part of these
statements.

                                       5
<PAGE>

                  CNB FINANCIAL SERVICES, INC. AND SUBSIDIARY
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                            SIX MONTHS ENDED
                                                                                 JUNE 30,
                                                                       ----------------------------
                                                                           2005            2004
                                                                       ------------    ------------
<S>                                                                    <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                                             $  1,127,581    $  1,156,695
Adjustments to reconcile net income to net cash
   provided by operating activities:
     Depreciation and amortization                                          399,299         349,145
     Provision for loan losses                                              208,000         181,000
     Deferred income taxes                                                   (4,757)              -
     Net loss (gain) on sale of securities                                      573        (135,546)
     (Increase) in accrued interest receivable                              (56,315)        (51,193)
     Decrease in other assets                                               624,056         268,155
     (Decrease) in accrued interest payable                                 (28,445)        (85,528)
     (Increase) in cash surrender value on life insurance in excess
          of premiums paid                                                  (50,940)        (47,936)
     Increase (decrease) in accrued expenses and other liabilities          120,195         (47,286)
     Amortization of deferred loan (fees) cost                               18,900           7,491
     Amortization (accretion) of premium and discount on investments         31,578          40,042
                                                                       ------------    ------------
         NET CASH PROVIDED BY OPERATING ACTIVITIES                     $  2,389,725    $  1,635,039
                                                                       ------------    ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
     Net (increase) in loans                                           $(14,548,039)   $ (5,367,273)
     Proceeds from sales of securities                                   28,614,750       6,391,436
     Proceeds from maturities, repayments and calls of securities           830,255      10,719,660
     Purchases of securities                                            (22,476,503)    (21,982,537)
     Purchases of Federal Home Loan Bank stock                           (2,807,200)       (416,400)
     Redemptions of Federal Home Loan Bank stock                          2,983,300         463,700
     Purchases of premises and equipment                                   (777,830)       (272,490)
     Net (increase) decrease in federal funds sold                           59,000         (40,000)
     Premiums paid on life insurance                                        (58,822)        (58,822)
     Cash from acquired branch                                                    -       5,020,017
                                                                       ------------    ------------
         NET CASH (USED IN) INVESTING ACTIVITIES                       $ (8,181,089)   $ (5,542,709)
                                                                       ------------    ------------

CASH FLOWS FROM FINANCING ACTIVITIES:
    Net increase in demand and savings deposits                        $ 13,876,655    $  8,727,807
    Net (decrease) in time deposits                                      (3,233,237)     (3,328,820)
    Net increase in securities sold under repurchase agreement               12,421         213,080
    Net (decrease) in FHLB borrowings                                    (4,700,000)       (500,000)
    Cash dividends paid                                                    (192,380)       (178,639)
                                                                       ------------    ------------
         NET CASH PROVIDED BY FINANCING ACTIVITIES                     $  5,763,459    $  4,933,428
                                                                       ------------    ------------

         NET INCREASE (DECREASE)  IN CASH AND CASH EQUIVALENTS         $    (27,905)   $  1,025,758
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR                           10,047,939       7,641,280
                                                                       ------------    ------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD                             $ 10,020,034    $  8,667,038
                                                                       ============    ============

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
     Cash paid during the period:
               Interest                                                $  1,724,633    $  1,614,556
               Income taxes                                            $    606,000    $    554,009
</TABLE>

The Notes to Consolidated Financial Statements are an integral part of these
statements.

                                       6
<PAGE>

                          CNB FINANCIAL SERVICES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (UNAUDITED)

Note 1. Basis of Presentation and Contingencies

            In the opinion of CNB Financial Services, Inc. ("CNB" or the
      "Company"), the accompanying unaudited consolidated financial statements
      contain all adjustments (consisting of only normal recurring accruals)
      necessary for a fair presentation of CNB financial condition as of June
      30, 2005 and the results of operations for the three and six months ended
      June 30, 2005 and 2004 and cash flows for the six months ended June 30,
      2005 and 2004.

            The accompanying unaudited financial statements have been prepared
      in accordance with the instructions for Form 10-Q. These financial
      statements should be read in conjunction with the consolidated financial
      statements and the notes included in CNB's Annual Report for the year
      ended December 31, 2004.

            In the ordinary course of business, the company and its subsidiary
      are involved in various legal proceedings. In the opinion of the
      management of CNB, there are no proceedings pending to which CNB is a
      party or to which its property is subject, which, if determined adversely
      to CNB, would be material in relation to CNB's financial condition. There
      are no proceedings pending other than ordinary routine litigation incident
      to the business of CNB. In addition, no material proceedings are pending
      or are known to be threatened or contemplated against CNB by government
      authorities.

Note 2. Business Combinations

            On June 11, 2004, Citizens National Bank purchased certain assets
      and liabilities associated with the Hancock Branch of Fidelity Bank, a
      subsidiary bank of Mercantile Bankshares Corporation (formerly Home
      Federal). The results of the Hancock Branch's operations have been
      included in the consolidated financial statements since that date.

            The following table provides information concerning the allocations
      of the purchase price and the fair values of the assets and liabilities
      acquired of the Hancock branch:

                                AT JUNE 11, 2004

<TABLE>
<S>                                          <C>
Assets acquired:

     Loans                                   $  8,419,973
      Accrued interest receivable                  34,526
      Fixed assets                                324,166
      Intangible asset-premium on deposits        780,616
      Prepaid expenses                              2,139
                                             ------------

Total assets acquired

                                             $  9,561,420
                                             ------------
Liabilities assumed:

      Deposit accounts                       $(14,574,856)
      Accrued expenses                             (6,581)
                                             ------------

Total liabilities assumed                    $(14,581,437)
                                             ------------

Cash from acquired branch                    $ (5,020,017)
                                             ============
</TABLE>

                                       7
<PAGE>

                          CNB FINANCIAL SERVICES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (UNAUDITED)

Note 2. Business Combinations (continued)

            Citizens National Bank recorded $781,000 of core deposit intangible,
      which has a weighted-average useful life of 7 years.

Note 3. Securities

            The amortized cost and estimated market value of debt securities at
      June 30, 2005 and December 31, 2004 by contractual maturity are shown
      below. Expected maturities will differ from contractual maturities because
      borrowers may have the right to call or prepay obligations with or without
      call or prepayment penalties.

            Securities are summarized as follows:

<TABLE>
<CAPTION>
                                                              JUNE 30, 2005                         WEIGHTED
                                        --------------------------------------------------------     AVERAGE
                                                          GROSS          GROSS        ESTIMATED        TAX
                                         AMORTIZED     UNREALIZED     UNREALIZED         FAIR       EQUIVALENT
                                           COST           GAINS          LOSSES          VALUE        YIELD
                                        -----------    -----------    -----------    -----------    ----------
<S>                                     <C>            <C>            <C>            <C>            <C>
Available for sale:
    U.S. Government agencies
      and corporations
      Within one year                   $ 1,000,000    $       500    $         -    $ 1,000,500         5.00 %
      After 1 but within 5 years          8,105,288          9,416         71,882      8,042,822         4.05
      After 5 but within 10 years        23,940,627         35,517        126,644     23,849,500         4.45
                                        -----------    -----------    -----------    -----------
                                        $33,045,915    $    45,433    $   198,526    $32,892,822         4.37 %
                                        -----------    -----------    -----------    -----------

    States and political subdivisions
      After 1 but within 5 years        $ 2,210,120    $     2,979    $    25,703    $ 2,187,396         3.01 %
      After 5 but within 10 years         9,855,250         23,894         57,117      9,822,027         3.50
                                        -----------    -----------    -----------    -----------
                                        $12,065,370    $    26,873    $    82,820    $12,009,423         3.41 %
                                        -----------    -----------    -----------    -----------

    Mortgage backed securities          $ 7,708,006    $     3,822    $    57,966    $ 7,653,862         4.55 %
                                        -----------    -----------    -----------    -----------

Total securities available for sale     $52,819,291    $    76,128    $   339,312    $52,556,107         4.18 %
                                        ===========    ===========    ===========    ===========
Restricted:

    Federal Reserve Bank stock          $   129,650    $         -    $         -    $   129,650         6.00 %
    Federal Home Loan Bank stock            993,700              -              -        993,700         2.62
                                        -----------    -----------    -----------    -----------
Total restricted investments            $ 1,123,350    $         -    $         -    $ 1,123,350         3.01 %
                                        ===========    ===========    ===========    ===========
</TABLE>

                                       8
<PAGE>

                          CNB FINANCIAL SERVICES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (UNAUDITED)

Note 3. Securities (continued)

<TABLE>
<CAPTION>
                                                              DECEMBER 31, 2004                     WEIGHTED
                                        --------------------------------------------------------     AVERAGE
                                                          GROSS          GROSS        ESTIMATED        TAX
                                         AMORTIZED     UNREALIZED     UNREALIZED         FAIR       EQUIVALENT
                                           COST           GAINS          LOSSES          VALUE        YIELD
                                        -----------    -----------    -----------    -----------    ----------
<S>                                     <C>            <C>            <C>            <C>            <C>
Available for sale:
    U.S. Government agencies
      and corporations
      Within one year                   $11,846,301    $   109,738    $    49,839    $11,906,200         3.81 %
      After 1 but within 5 years          8,906,924         49,196         35,373      8,920,747         4.14
      After 5 but within 10 years        18,454,860         40,148        207,732     18,287,276         4.16
                                        -----------    -----------    -----------    -----------
                                        $39,208,085    $   199,082    $   292,944    $39,114,223         4.05 %
                                        -----------    -----------    -----------    -----------

    States and political subdivisions
      After 1 but within 5 years        $ 1,663,643    $     4,690    $     3,714    $ 1,664,619         3.95 %
      After 5 but within 10 years        10,541,257        106,488         48,389     10,599,356         6.09
                                        -----------    -----------    -----------    -----------
                                        $12,204,900    $   111,178    $    52,103    $12,263,975         5.80 %
                                        -----------    -----------    -----------    -----------

    Mortgage backed securities          $ 8,406,958    $    17,066    $    61,931    $ 8,362,093         4.49 %
                                        -----------    -----------    -----------    -----------

Total securities available for sale     $59,819,943    $   327,326    $   406,978    $59,740,291         4.38 %
                                        ===========    ===========    ===========    ===========

Restricted:
    Federal Reserve Bank stock          $   129,650    $         -    $         -    $   129,650         6.00 %
    Federal Home Loan Bank stock          1,169,800              -              -      1,169,800         2.43
                                        -----------    -----------    -----------    -----------
Total restricted investments            $ 1,299,450    $         -    $         -    $ 1,299,450         2.79 %
                                        ===========    ===========    ===========    ===========
</TABLE>

            The carrying value of securities pledged to secure public deposits
      and for other purposes as required or permitted by law totaled $32,537,524
      at June 30, 2005 and $32,538,864 at December 31, 2004. Also, a security
      with a carrying value of $247,650 and $247,275 at June 30, 2005 and
      December 31, 2004, respectively is designated for a customer repurchase
      agreement.

            Proceeds from sales of securities available for sale (excluding
      maturities) during the six months ended June 30, 2005 and the year ended
      December 31, 2004 were $28,614,750 and $6,391,436, respectively. Gross
      gains (losses) of $133,266 and $(133,839) during the six months ended June
      30, 2005 and $135,546 and $(0) for the year ended December 31, 2004 were
      realized on the respective sales.

                                       9
<PAGE>

                          CNB FINANCIAL SERVICES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (UNAUDITED)

Note 3. Securities (continued)

            The following table shows our investments' gross unrealized losses
      and fair value, aggregated by investment category and length of time that
      individual securities have been in a continuous unrealized loss position,
      at June 30, 2005.

<TABLE>
<CAPTION>
                                       LESS THAN 12 MONTHS            12 MONTHS OR MORE                   TOTAL
                                   --------------------------    --------------------------    --------------------------
                                      FAIR        UNREALIZED        FAIR        UNREALIZED        FAIR        UNREALIZED
DESCRIPTION OF SECURITIES             VALUE         LOSSES          VALUE         LOSSES          VALUE         LOSSES
--------------------------------   -----------    -----------    -----------    -----------    -----------    -----------
<S>                                <C>            <C>            <C>            <C>            <C>            <C>
U.S. government agenices
   and corporations                $ 7,342,941    $    60,633    $10,591,225    $   137,893    $17,934,166    $   198,526

State and political subdivisions     6,582,924         56,503        720,872         26,317      7,303,796         82,820

Mortgage backed securities           4,394,319         25,862      2,036,087         32,104      6,430,406         57,966
                                   -----------    -----------    -----------    -----------    -----------    -----------
Total temporarily impaired
   securities                      $18,320,184    $   142,998    $13,348,184    $   196,314    $31,668,368    $   339,312
                                   ===========    ===========    ===========    ===========    ===========    ===========
</TABLE>

Note 4. Loans and Leases Receivable

            Major classifications of loans at June 30, 2005 and December 31,
      2004, were as follows:

<TABLE>
<CAPTION>
                                    JUNE 30,       DECEMBER 31,
                                      2005            2004
                                 -------------    -------------
<S>                              <C>              <C>
Loans:
  Real estate                    $ 117,274,668    $ 108,158,901
  Commercial real estate            26,675,691       22,758,761
  Consumer                          16,386,829       16,404,853
  Commercial                        10,269,531        8,880,771
  Overdrafts                           105,467           82,556
                                 -------------    -------------
                                 $ 170,712,186    $ 156,285,842

Leases:                                156,235          166,389
                                 -------------    -------------
                                 $ 170,868,421    $ 156,452,231
Net deferred loan fees, costs,
    premiums and discounts             330,578          274,800
Allowance for loan losses           (1,958,278)      (1,807,449)
                                 -------------    -------------
                                 $ 169,240,721    $ 154,919,582
                                 =============    =============
</TABLE>

                                      10
<PAGE>

                          CNB FINANCIAL SERVICES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (UNAUDITED)

Note 4. Loans and Leases Receivable (continued)

            An analysis of the allowance for possible loan losses is as follows:

<TABLE>
<CAPTION>
                                    JUNE 30,             DECEMBER 31,
                           --------------------------    ------------
                              2005           2004           2004
                           -----------    -----------    ------------
<S>                        <C>            <C>            <C>
Balance, Beginning         $ 1,807,449    $ 1,607,763    $  1,607,763
    Provision charged to
        operations             208,000        181,000         393,000
    Recoveries                 103,332         98,422         158,850
    Loans charged off         (160,503)      (154,808)       (352,164)
                           -----------    -----------    ------------
Balance, Ending            $ 1,958,278    $ 1,732,377    $  1,807,449
                           ===========    ===========    ============
</TABLE>

            Loans are placed in nonaccrual status when, in the judgment of
      management, the probability of collection of interest is deemed to be
      insufficient to warrant further accrual. When interest accruals are
      discontinued, interest credited to income is reversed. Nonaccrual loans
      are restored to accrual status when all delinquent principal and interest
      becomes current or the loan is considered secured and in the process of
      collection. Certain loans that are determined to be sufficiently
      collateralized may continue to accrue interest after reaching 90 days past
      due. A summary of nonperforming loans is as follows:

<TABLE>
<CAPTION>
                                                               JUNE 30,          DECEMBER 31,
                                                         ----------------------  ------------
                                                           2005         2004         2004
                                                         ---------    ---------    ---------
<S>                                                      <C>          <C>          <C>
Nonaccrual  loans                                        $ 192,159    $ 749,987    $ 380,731
Loans past due 90 days or more still accruing interest      44,060            -            -
                                                         ---------    ---------    ---------
     Total                                               $ 236,219    $ 749,987    $ 380,731
                                                         =========    =========    =========
</TABLE>

Note 5. Time Deposits

            At June 30, 2005, the scheduled maturities of time deposits are as
      follows:

<TABLE>
<CAPTION>
                            TIME DEPOSITS      ALL TIME
                          $100,000 AND OVER    DEPOSITS
                          -----------------   -----------
<S>                       <C>                 <C>
Within 3 months              $ 1,235,451      $ 4,865,731
3 months thru 6 months           900,072        4,112,583
6 months thru 12 months        2,295,424        8,488,888
Over 12 months                26,418,089       70,025,850
                             -----------      -----------
                             $30,849,036      $87,493,052
                             ===========      ===========
</TABLE>

                                      11
<PAGE>

                          CNB FINANCIAL SERVICES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (UNAUDITED)

Note 6. Federal Home Loan Bank Borrowings

<TABLE>
<CAPTION>
                                          JUNE 30,         DECEMBER 31,
                                  -----------------------  ------------
                                     2005         2004          2004
                                  -----------   ---------  ------------
<S>                               <C>           <C>        <C>
Federal Home Loan Bank advances   $ 3,900,000   $ 700,000  $  8,600,000
</TABLE>

            Citizens National Bank is a member of the Federal Home Loan Bank
      ("FHLB") of Pittsburgh and, as such, can take advantage of the FHLB
      program for overnight and term advances at published daily rates. Under
      the terms of a blanket collateral agreement, advances from the FHLB are
      collateralized by qualifying mortgages and US government agencies and
      mortgage-backed securities. In addition, all of the Bank's stock in the
      FHLB is pledged as collateral for such debt. Advances available under this
      agreement are limited by available and qualifying collateral and the
      amount of FHLB stock held by the borrower.

Note 7. Supplemental Retirement Plan

            On January 2, 2004, the Bank entered into a nonqualified
      supplemental retirement benefit agreement with the President which when
      fully vested would pay the President or his beneficiary an amount of
      $30,000 per year for 10 years beginning June 11, 2011, if he retires on or
      after May 29, 2011. Termination of employment prior to that date other
      than by reasons of death or disability will result in a reduced benefit.
      The expense for the six months ended June 30, 2005 was $16,321.

Note 8. New Branch

            On December 15, 2003, the Bank purchased a parcel of land in Falling
      Waters, Berkeley County, West Virginia for $503,261 to construct a new
      branch facility. Construction on the new facility began August 2004 and
      was completed in April 2005. The Bank's total cost to construct the new
      branch location totaled $966,005 with remaining commitments of
      approximately $70,000.

Note 9. Supplemental Health Insurance Plan

            Effective January 1, 2005, the Bank changed its health insurance
      program to a high deductible plan and concurrently established health
      reimbursement accounts for each employee on the plan. The Bank has
      committed for 2005 to fund $750 for each participant. The expense for the
      six months ended June 30, 2005 was $28,519.

                                      12
<PAGE>

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

      GENERAL

            CNB Financial Services, Inc. ("CNB" or the "Company") was organized
      under the laws of West Virginia in March 2000 at the direction of the
      Board of Directors of Citizens National Bank (the "Bank") for the purpose
      of becoming a financial services holding company. The Company's primary
      function is to direct, plan and coordinate the business activities for the
      Bank and its subsidiary. We refer to the Company and its subsidiary as
      "CNB".

            On August 31, 2000, the Bank, via merger, became a wholly-owned
      subsidiary of the Company and the shareholders of the Bank became
      shareholders of the Company. Each Bank shareholder received two shares of
      the Company stock for each share of the Bank's common stock. The merger
      was accounted for as a pooling of interests.

            The Bank was organized on June 20, 1934, and has operated in
      Berkeley Springs in Morgan County, West Virginia, as a national banking
      association continuously since that time. The Bank is a full-service
      commercial bank conducting general banking and trust activities through
      six full-service offices and six automated teller machines located in
      Morgan and Berkeley Counties, West Virginia and Washington County,
      Maryland. The Bank's sixth full-service branch and ATM opened in April
      2005 in Berkeley County, West Virginia. The Bank formed CNB Insurance
      Services, Inc., a wholly owned subsidiary, which is a property and
      casualty insurance agency selling primarily personal lines of insurance.

            The Bank purchased a parcel of land in Falling Waters, Berkeley
      County, West Virginia on December 15, 2003 for $503,261 to construct a new
      branch facility. Construction on the new branch facility began in August
      2004 and was completed in April 2005. On April 27, 2005, the new branch
      building opened.

            On January 26, 2004, CNB entered into an agreement to purchase
      certain assets and liabilities associated with the Hancock Branch of
      Fidelity Bank, a subsidiary bank of Mercantile Bankshares Corporation
      (formerly Home Federal). The purchase, which took place on June 11, 2004,
      increased the assets and liabilities of CNB by $14.6 million. CNB assumed
      responsibility for all the deposit services including checking, savings
      and certificates of deposit. Additionally, CNB acquired loans, equipment
      and leasehold improvements and assumed the lease for the real estate
      located at 333 East Main Street, Hancock, Maryland.

            The following discussion and analysis presents the significant
      changes in financial condition and results of operations of CNB for the
      three and six months ended June 30, 2005 and 2004. This discussion may
      include forward-looking statements based upon management's expectations.
      Actual results may differ. We have rounded amounts and percentages used in
      this discussion and have based all average balances on daily averages.

      CRITICAL ACCOUNTING POLICIES

            CNB has established various accounting policies which govern the
      application of accounting principles generally accepted in the United
      States of America in the preparation and presentation of CNB's
      consolidated financial statements. The significant accounting policies of
      CNB are described in "Item 1, Critical Accounting Policies" and Note 1:
      Summary of Significant Accounting Policies of the Consolidated Financial
      Statements on Form 10-K as of December 31, 2004, and along with the
      disclosures presented in other financial statement notes, provide
      information on how significant assets and liabilities are valued in the
      financial statements and how those values are determined. Certain
      accounting policies involve significant judgments, assumptions and
      estimates by management that have a material impact on the carrying value
      of certain assets and liabilities, which management considers to be
      critical accounting

                                      13
<PAGE>

      policies. The judgments, assumptions and estimates used by management are
      based on historical experience, knowledge of the accounts and other
      factors, which are believed to be reasonable under the circumstances.
      Because of the nature of the judgment and assumptions made by management,
      actual results could differ from these judgments and estimates, which
      could have a material impact on the carrying values of assets and
      liabilities and the results of operations of the Company.

            CNB views the determination of the allowance for loan losses as a
      critical accounting policy that requires the most significant judgments,
      assumptions and estimates used in the preparation of its consolidated
      financial statements. For a more detailed discussion on the allowance for
      loan losses, see Nonperforming Loans and Allowance For Loan Losses in the
      Management's Discussion and Analysis and Allowance for Loan Losses in Note
      1: Summary of Significant Accounting Policies and Note 4: Loans and Leases
      Receivable in the Notes to Consolidated Financial Statements in the Form
      10-K for December 31, 2004.

      EARNINGS SUMMARY

            Net income for the three months ended June 30, 2005 was $599,000 or
      $1.31 per share compared to $588,000 or $1.28 per share for the same
      period in 2004. Annualized return on average assets and average equity
      were 1.0% and 13.1% respectively, for the three months ended June 30,
      2005, compared with 1.1% and 13.3%, respectively, for the three months
      ended June 30, 2004.

            Net income for the six months ended June 30, 2005 was $1.1 million
      or $2.46 per share compared to $1.2 million or $2.52 per share for the
      same period in 2004. Annualized return on average assets and average
      equity were 1.0% and 12.2% respectively, for the six months ended June 30,
      2005, compared with 1.1% and 13.4%, respectively, for the six months ended
      June 30, 2004.

            Although, earnings projections as of March 31, 2005 for the
      remainder of 2005 showed net income to decrease, the bank's loan growth
      increased in the second quarter of 2005 and continued loan growth is
      expected through the end of 2005. Although the bank has incurred the
      additional expenses related to the opening of the new branch facility and
      the additional costs of compliance with the provisions of the
      Sarbanes-Oxley Act of 2002, the bank now projects the increased loan
      growth will offset these costs and net income will show an increase for
      the remainder of 2005.

      NET INTEREST INCOME

            Net interest income represents the primary component of CNB's
      earnings. It is the difference between interest and fee income related to
      earning assets and interest expense incurred to carry interest-bearing
      liabilities. Changes in the volume and mix of interest earning assets and
      interest bearing liabilities, as well as changing interest rates, impact
      net interest income. To manage these changes, their impact on net interest
      income and the risk associated with them, CNB utilizes an ongoing
      asset/liability management program. This program includes analysis of the
      difference between rate sensitive assets and rate sensitive liabilities,
      earnings sensitivity to rate changes, and source and use of funds. A
      discussion of net interest income and the factors impacting it is
      presented below.

            Net interest income for the three months ended June 30, 2005
      increased by $314,000 or 15.1% over the same period in 2004. Interest
      income for the three months ended June 30, 2005 increased by $455,000 or
      16.1% compared to the same period in 2004, while interest expense
      increased by $141,000 or 18.8% during the three months ended June 30,
      2005, as compared to the same period in the prior year.

            Net interest income for the six months ended June 30, 2005 increased
      by $593,000 or 14.6% over the same period in 2004. Interest income for the
      six months ended June 30, 2005 increased by $760,000 or 13.6% compared to
      the same period in 2004, while interest expense decreased by $167,000 or
      10.9% during the six months ended June 30, 2005, as compared to the same
      period in the prior year.

                                      14
<PAGE>

            Increased net interest income for the three and six month period is
      attributable to a higher level of net interest earning assets and an
      increase in the rates earned thereon. The Bank continues to experience a
      shift in the asset mix from lower yielding overnight federal funds to
      higher yielding loans and investment securities. The increase in the rates
      earned on interest earning assets is due to the current rising rate
      environment. The Bank has continued to experience steady deposit growth.
      The average balance on interest bearing liabilities increased along with
      the total interest expense, in all categories except for time deposits,
      paid on those interest bearing liabilities. The Bank's higher loan demand
      and steady deposit growth has resulted in an increased loan to deposit
      ratio.

            During the second quarter of 2005 compared to the same period in
      2004, average net interest earning assets increased $29.2 million or 15.1%
      and average net interest bearing liabilities increased $24.2 million or
      15.7% resulting in increased net interest income. CNB experienced a 3
      basis point increase in the ratio of net interest income to average
      interest earning assets. The 8 basis point increase in rates earned on
      average interest earning assets offset by a 5 basis point increase in
      rates paid on average interest bearing liabilities contributed to the
      increase in the net interest margin.

            During the first six months of 2005 compared to the same period in
      2004, average net interest earning assets increased $28.2 million or 14.9%
      and average net interest bearing liabilities increased $22.8 million or
      14.8% resulting in increased net interest income. The ratio of net
      interest income to average interest earning assets was unchanged. The 7
      basis point decrease in rates paid on average interest bearing liabilities
      offset by a 5 basis point decrease in rates earned on average interest
      earning assets contributed to the non movement of the net interest margin.

            See Table 1 and Table 2 - Distribution of Assets, Liabilities, and
      Shareholders' Equity; Interest Rates and Interest Differential.

            The net interest margin is impacted by the change in the spread
      between yields on earning assets and rates paid on interest bearing
      liabilities.

                                      15
<PAGE>

     TABLE 1. DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY;
                    INTEREST RATES AND INTEREST DIFFERENTIAL

<TABLE>
<CAPTION>
                                                         JUNE 30, 2005                    JUNE 30, 2004
                                                 ------------------------------    ---------------------------
                                                   QTR                               QTR
                                                 AVERAGE       QTR       YIELD/    AVERAGE     QTR      YIELD/
                                                 BALANCE     INTEREST     RATE (4) BALANCE   INTEREST    RATE (4)
                                                 --------    --------    ------    --------  --------   ------
                                                                     (IN THOUSANDS OF DOLLARS)
<S>                                              <C>         <C>         <C>       <C>       <C>        <C>
Interest earning assets:
    Federal funds sold                           $     26    $      -      2.85 %  $  1,585  $      5     0.91 %
    Securities:
      Taxable                                      43,488         486      4.47      32,809       335     4.08
      Tax-exempt (1)                               12,778         109      5.17       7,040        58     4.99
    Loans (net of unearned interest) (2)(5)(6)    165,783       2,614      6.31     151,485     2,350     6.21
                                                 --------    --------    ------    --------  --------   ------
        Total interest earning assets (1)        $222,075    $  3,209      5.78  % $192,919  $  2,748     5.70 %
                                                 --------    --------    ------    --------  --------   ------

Nonearning assets:
    Cash and due from banks                      $  8,613                          $  8,249
    Bank premises and equipment, net                6,423                             5,348
    Other assets                                    4,194                             2,953
    Allowance for loan losses                      (1,933)                           (1,705)
                                                 --------                          --------
        Total assets                             $239,372                          $207,764
                                                 ========                          ========

Interest bearing liabilities:
    Savings deposits                             $ 32,472    $     40      0.49 %  $ 26,961  $     34     0.50 %
    Time deposits                                  86,459         565      2.61      92,301       624     2.70
    NOW accounts                                   42,615         206      1.93      25,910        70     1.08
    Money market accounts                          10,179          22      0.86       9,088        18     0.79
    Borrowings                                      7,240          55      3.04         475         1     0.84
                                                 --------    --------    ------    --------  --------   ------
        Total interest bearing liabilities       $178,965    $    888      1.98 %  $154,735  $    747     1.93 %
                                                 --------    --------    ------    --------  --------   ------

Noninterest bearing liabilities:
    Demand deposits                              $ 39,833                          $ 33,057
    Other liabilities                               2,219                             2,302
    Shareholders' equity                           18,355                            17,670
                                                 --------                          --------
        Total liabilities and
           shareholders' equity                  $239,372                          $207,764
                                                 ========                          ========

                                                             --------                        --------
Net interest income (1)                                      $  2,321                        $  2,001
                                                             ========                        ========

Net interest spread (3)                                                    3.81 %                         3.77 %
                                                                         ======                         ======

Net interest income to average                                             4.18 %                         4.15 %
                                                                         ======                         ======
    interest earning assets (1)
</TABLE>

(1) Yields are expressed on a tax equivalent basis using a 34% tax rate.

(2) For the purpose of these computations, nonaccruing loans are included in the
    amounts of average loans outstanding.

(3) Net interest spread is the difference between the weighted average yield on
    interest-earning assets and the weighted average cost of interest-bearing
    liabilities.

(4) Yields/Rates are expressed on annualized basis.

(5) Interest income on loans excludes fees of $73,000 in 2005 and $79,000 in
    2004.

(6) Interest income on loans includes fees of $16,393 in 2005 and $29,257 in
    2004 from the Business Manager Program, student loans and lease receivables.

                                      16
<PAGE>

     TABLE 2. DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY;
                    INTEREST RATES AND INTEREST DIFFERENTIAL

<TABLE>
<CAPTION>
                                                         JUNE 30, 2005                    JUNE 30, 2004
                                                 ------------------------------    ---------------------------
                                                   YTD                               YTD
                                                 AVERAGE       YTD       YIELD/    AVERAGE     YTD      YIELD/
                                                 BALANCE     INTEREST     RATE (4) BALANCE   INTEREST    RATE (4)
                                                 --------    --------    ------    --------  --------   ------
                                                                     (IN THOUSANDS OF DOLLARS)
<S>                                              <C>         <C>         <C>       <C>       <C>        <C>
Interest earning assets:
   Federal funds sold                            $     33    $      1      2.61 %  $  1,421  $      8     0.91 %
   Securities:
     Taxable                                       43,254         941      4.35      32,206       671     4.17
     Tax-exempt (1)                                12,726         217      5.17       6,200       103     5.03
   Loans (net of unearned interest) (2)(5)(6)     161,997       5,051      6.24     149,953     4,672     6.23
                                                 --------    --------    ------    --------  --------   ------
     Total interest earning assets (1)           $218,010    $  6,210      5.70 %  $189,780  $  5,454     5.75 %
                                                 --------    --------    ------    --------  --------   ------

Nonearning assets:
   Cash and due from banks                       $  9,228                          $  8,629
   Bank premises and equipment, net                 6,270                             5,306
   Other assets                                     4,221                             2,985
   Allowance for loan losses                       (1,903)                           (1,684)
                                                 --------                          --------
     Total assets                                $235,826                          $205,016
                                                 ========                          ========

Interest bearing liabilities:
   Savings deposits                              $ 32,127    $     79      0.49 %  $ 26,079  $     65     0.50 %
   Time deposits                                   87,093       1,106      2.54      92,375     1,285     2.78
   NOW accounts                                    40,881         376      1.84      25,600       139     1.09
   Money market accounts                           10,095          43      0.85       9,085        36     0.79
   Borrowings                                       6,442          92      2.86         684         4     1.17
                                                 --------    --------    ------    --------  --------   ------
     Total interest bearing liabilities          $176,638    $  1,696      1.92 %  $153,823  $  1,529     1.99 %
                                                 --------    --------    ------    --------  --------   ------

Noninterest bearing liabilities:
   Demand deposits                               $ 38,521                          $ 31,608
   Other liabilities                                2,254                             2,295
   Shareholders' equity                            18,413                            17,290
                                                 --------                          --------
     Total liabilities and
           shareholders' equity                  $235,826                          $205,016
                                                 ========                          ========

                                                             --------                        --------
Net interest income (1)                                      $  4,514                        $  3,925
                                                             ========                        ========

Net interest spread (3)                                                    3.78 %                         3.76 %
                                                                         ======                         ======

Net interest income to average                                             4.14 %                         4.14 %
                                                                         ======                         ======
   interest earning assets (1)
</TABLE>

(1) Yields are expressed on a tax equivalent basis using a 34% tax rate.

(2) For the purpose of these computations, nonaccruing loans are included in the
    amounts of average loans outstanding.

(3) Net interest spread is the difference between the weighted average yield on
    interest-earning assets and the weighted average cost of interest-bearing
    liabilities.

(4) Yields/Rates are expressed on annualized basis.

(5) Interest income on loans excludes fees of $145,000 in 2005 and $141,000 in
    2004.

(6) Interest income on loans includes fees of $31,876 in 2005 and $65,688 in
    2004 from the Business Manager Program, student loans and lease receivables.

                                      17
<PAGE>

      PROVISION FOR LOAN LOSSES

            The amount charged to provision for loan losses is based on
      management's evaluation of the loan portfolio. Management determines the
      adequacy of the allowance for loan losses, based on past loan loss
      experience, current economic conditions and composition of the loan
      portfolio. The allowance for loan losses is the best estimate of
      management of the probable losses which have been incurred as of a balance
      sheet date.

            The provision for loan losses is a charge to earnings which is made
      to maintain the allowance for loan losses at a sufficient level. The
      provision for loan losses for the three months ended June 30, 2005, and
      June 30, 2004, amounted to $102,000 and $94,000, respectively. The
      provision for loan losses for the six months ended June 30, 2005, and June
      30, 2004, amounted to $208,000 and $181,000, respectively. Loan quality
      remains stable, past dues are minimal and nonaccruals have decreased from
      the same period in 2004. Management believes the allowance for loan losses
      is adequate and is not aware of any information relating to the loan
      portfolio which it expects will materially impact future operating
      results, liquidity or capital resources. In addition, federal regulators
      may require additional reserves as a result of their examination of the
      bank. See "Nonperforming Assets and Allowance for Loan Losses" for further
      discussion.

      NONINTEREST INCOME

            Noninterest income for the three months ended June 30, 2005
      decreased $24,000 or 4.5% to $515,000 from $539,000 in the second quarter
      of 2004. Noninterest income for the six months ended June 30, 2005
      decreased $33,000 or 3.3% to $963,000 from $996,000 during the first six
      months of 2003. The decrease in noninterest income is attributable to a
      decrease in gain on sale of investment securities and decrease in income
      from title insurance company offset by an increase in Bounce Protection
      fees, fees generated from the insurance commissions, ATM and debit card
      fees, trust fee income and fees generated from intermediary fees. The
      decrease in income from the title insurance company is a direct result of
      the bank's decreased ownership in the title company and a decrease in the
      number of policies written during the period. Insurance commissions
      increased due to general rate increases from the insurance companies and a
      slight increase in new written business for the first six months. The
      increase in fees related to the Bounce Protection, ATM and debit cards
      have a direct correlation to the increased deposit base of the bank. Trust
      fees increased due to the assets under management increased 29% over the
      same period last year, the fee schedule for trust fees was increased by
      10% during the fourth quarter of 2004 and fee income was received for the
      settlement of an estate during the first quarter of 2005. The bank also
      began offering a new service in 2005 which enables them to act as an
      escrow agent for a customer in which the bank holds the proceeds from the
      sale of land and disburses the funds for the purchase of other land.

      NONINTEREST EXPENSES

            Noninterest expenses for the three months ended June 30, 2005,
      increased $256,000 or 15.4% and for the six months ended June 30, 2005,
      increased $518,000 or 16.3%. Salaries increased due to normal merit
      increases, several new hires, salaries for employees of the Hancock branch
      acquired during the second quarter 2004 and salaries for the new Spring
      Mills branch employees. Employee benefits increased due to an increase in
      pension expense and the increased number of employees. Although, the bank
      changed its health insurance program, effective January 1, 2005, to a high
      deductible plan with reduced per employee premiums the insurance expense
      for the second quarter 2005 and the first six months of 2005 showed a
      slight increase over the same period last year due to the increased number
      of employees. Concurrent with the creation of the high deductible
      insurance plan, the Bank established a vested health contribution plan
      which enables the Bank to contribute to health reimbursement accounts for
      each employee on the plan. A $14,600 expense was incurred in the second
      quarter of 2005 and a $28,500 expense was incurred for the first six
      months of 2005 for the health reimbursement accounts. The increase in
      occupancy expense was due to start up costs for the new Spring Mills
      branch facility and the additional utilities and supply costs for both the
      Hancock and Spring Mills branches. Also, increases in general utilities
      costs and supply costs for the operation of the bank contributed to the
      occupancy expense increase. The increase in furniture and equipment
      expense was due to the increased cost and number of maintenance contracts
      the bank carries on its equipment. The increase in other operating
      expenses was due to an increase in debit card expense, outside service
      fees, audit, tax and accounting fees, and the amortization of

                                      18
<PAGE>

      premium purchased for the Hancock branch facility. These increases were
      offset by decreases in advertising, data processing expense, bounce
      protection expense and business manager expense. The increase in debit
      card expense is a direct result of the increased deposit base of the bank.
      Outside service fees and audit, tax and accounting fees increased due to
      additional costs of compliance with new banking regulations and the
      provisions of the Sarbanes-Oxley Act of 2002. Bounce protection expense
      decreased due to the expiration of the Bank's contract with Pinnacle
      Financial Strategies in February 2004. Business manager expense decreased
      due to the continued decrease in the volume of receivables the bank
      purchased in the second quarter of 2005 due to a decline in customer need
      for the program. Advertising expense decreased due to in early 2004 a
      concentrated advertising campaign was begun to coincide with the Hancock
      branch acquisition.

      INCOME TAXES

            The Bank's provision for income taxes increased $14,000 or 5.2% to
      $281,000 for the three months ended June 30, 2005 and increased $44,000 or
      8.0% to $589,000 for the six months ended June 30, 2005. The effective tax
      rates for the second quarter of 2005 and 2004 were 31.9% and 31.3%,
      respectively and for the first six months of 2005 and 2004 were 34.3% and
      32.0%, respectively. The Bank's income tax expense differs from the amount
      computed at statutory rates primarily due to the tax-exempt earnings from
      certain investment securities and certain non deductible expenses.

      FINANCIAL CONDITION

            The Bank's total assets as of June 30, 2005 increased $6.9 million
      or 2.9% to $243.9 million from December 31, 2004 due primarily to a $14.3
      million increase in loans and $531,000 increase in premises and equipment,
      net offset by a $59,000 decrease in federal funds sold, $7.2 million
      decrease in investment securities and a $717,000 decrease in other assets.
      The decrease in other assets is due to WV Housing Clearing account for
      loans in process balance being greater at December 31, 2004 than June 30,
      2005 due to the timing of the settlement of these loans. The Bank's total
      liabilities increased $6.0 million or 2.8% to $224.9 million from December
      31, 2004 due to a $10.6 million increase in deposits offset by a $4.7
      million decrease in borrowings. Shareholders' equity increased $821,000 to
      $19.0 million at June 30, 2005, primarily due to net income of $1.1
      million offset by the semi-annual cash dividend of $192,000 and a $114,000
      decrease in accumulated other comprehensive income. The $114,000 decrease
      in accumulated other comprehensive income is a direct result of the
      decline in market value of available for sale securities. The components
      of accumulated other comprehensive income at June 30, 2005 and December
      31, 2004, were unrealized gains and losses on available for sale
      securities, net of deferred income taxes and minimum pension liability
      adjustment, net of deferred income taxes. The unrealized gains and losses
      are primarily a function of available market interest rates relative to
      the yield being generated on the available for sale portfolio. No earnings
      impact results unless the securities are actually sold.

      LOAN PORTFOLIO

            At June 30, 2005, total loans increased $14.3 million or 9.2% to
      $169.2 million from $154.9 million at December 31, 2004 with $10.0 million
      of the growth being in the second quarter 2005. This increase is mainly a
      result of a focused effort by all loan officers to generate loans. Loan
      officers have increased personal contact with realtors, auto dealers and
      commercial businesses during the first six months of 2005. In addition,
      the Bank offered a fixed rate residential mortgage promotion which ended
      in June 2005 and an ongoing mortgage program in which the Bank pays up to
      $2,000 of certain closing costs. Also, the Bank had several large
      commercial real estate loans funded in the first half of 2005. The Bank
      and its branches are centered in a naturally growing part of West
      Virginia. The average home price in Berkeley County in 2005 has increased
      over 2004 by over 20%. The average dollar amount borrowed against these
      homes has also increased by over 15%. Berkeley County was recently rated
      the 3rd most populous county in West Virginia and in the top 100 for the
      fastest growing counties in the United States.

                                      19
<PAGE>

      NONPERFORMING ASSETS AND ALLOWANCE FOR LOAN LOSSES

            Nonperforming assets consist of nonaccrual loans, loans which are
      past due 90 days or more and still accruing interest, restructured loans
      and other real estate owned. The following table summarized the Bank's
      nonperforming assets as of the periods shown:

<TABLE>
<CAPTION>
                                                  JUNE 30,              DECEMBER 31,
                                        ---------------------------     ------------
                                           2005            2004            2004
                                        -----------     -----------     ------------
<S>                                     <C>             <C>             <C>
Nonaccrual loans                        $   192,159     $   749,987     $    380,731

Loans past due 90 days or more
   still accruing interest                   44,060               -                -
                                        -----------     -----------     ------------
Total nonperforming loans               $   236,219     $   749,987     $    380,731
                                        -----------     -----------     ------------

Other real estate owned                 $         -     $         -     $          -
                                        -----------     -----------     ------------

Total nonperforming assets              $   236,219     $   749,987     $    380,731
                                        ===========     ===========     ============

Nonperforming loans/Total loans                0.14%           0.47%            0.25%
Nonperforming assets/Total assets              0.10%           0.34%            0.16%
Allowance for loan losses/Total loans          1.16%           1.09%            1.17%
</TABLE>

            As of June 30, 2005, the Bank has no loans which management
      considers to be impaired. Management is aware of five borrowers who have
      exhibited weaknesses. Their loans have aggregate uninsured balances of
      $2.3 million. A specific allowance of $175,000 related to these loans has
      been established as part of the allowance for loan losses. The loans are
      collateralized and management anticipates any additional potential loss
      would be minimal.

            The allowance for loan losses is the best estimate by management of
      the probable losses which have been incurred as of a balance sheet date.
      Management makes this determination quarterly by its analysis of overall
      loan quality, changes in the mix and size of the loan portfolio, previous
      loss experience, general economic conditions, information about specific
      borrowers and other factors. The Bank's methodology for determining the
      allowance for loan losses established both an allocated and an unallocated
      component. The allocated portion of the allowance represents the results
      of analyses of individual loans that the Bank monitors for potential
      credit problems and pools of loans within the portfolio. Management bases
      the allocated portion of the allowance for loans principally on current
      loan risk ratings, historical loan loss rates adjusted to reflect current
      conditions, as well as analyses of other factors that may have affected
      the collectibility of loans in the portfolio. The Bank analyzes all
      commercial loans it is monitoring as potential credit problems to
      determine whether those loans are impaired, with impairment measured by
      reference to the borrowers' collateral values and cash flows.

            The unallocated portion of the allowance for loan losses represents
      the results of analyses that measure probable losses inherent in the
      portfolio that are not adequately captured in the allocated allowance
      analyses. These analyses include consideration of unidentified losses
      inherent in the portfolio resulting from changing underwriting criteria,
      changes in the types and mix of loans originated, industry concentrations
      and evaluations, allowance levels relative to selected overall credit
      criteria and other economic indicators used to estimate probable incurred
      losses. At June 30, 2005, the allowance for loans losses totaled $2.0
      million compared to $1.8 million at December 31, 2004. The allowance for
      loans losses as a percentage of loans was 1.2% as of June 30, 2005 and
      December 31, 2004.

                                      20
<PAGE>

            An analysis of the allowance for loan losses is summarized below:

<TABLE>
<CAPTION>
                                     JUNE 30,            DECEMBER 31,
                                      2005                  2004
                            ----------------------   ----------------------
                                      PERCENT OF               PERCENT OF
                                     LOANS IN EACH            LOANS IN EACH
                                      CATEGORY TO              CATEGORY TO
In thousands                AMOUNT    TOTAL LOANS    AMOUNT    TOTAL LOANS
                            ------   -------------   ------   -------------
<S>                         <C>      <C>             <C>      <C>
Commercial, financial       $  930        22 %       $  810        20 %
    and agriculture
Real estate - residential      474        68            467        69
     mortgage
Installment and other          285        10            323        11
Unallocated                    269       N/A            207       N/A
                            ------       ---         ------       ---
       Total                $1,958       100 %       $1,807       100 %
                            ======       ===         ======       ===
</TABLE>

      DEPOSITS

            The Bank's deposits increased $10.6 million or 5.1% during the six
      months ended June 30, 2005. The Bank has experienced a slight change in
      the deposit account mix during the first six months of 2005. Steady growth
      continues in regular demand, interest-bearing demand and savings deposits.
      The increase is primarily due to the continued customer growth in the
      Bank's market area of Morgan and Berkeley Counties, West Virginia and
      Washington County, Maryland. The Bank experienced an overall decrease of
      $3.2 million other time deposits and rate sensitive jumbo certificates of
      deposit during the first six months of 2005. This decrease is attributable
      to customers withdrawing funds or closing their 36-month Ultimate
      Certificates of Deposit on the anniversary date or maturity date due to
      competitive rate market. The Bank began increasing their rates paid on
      their certificates of deposit during the end of the first quarter of 2005
      which slowed the exodus of time deposits and certificate of deposit.

      CAPITAL RESOURCES

            Shareholders' equity increased $821,000 or 4.5% during the first six
      months of 2005 due to $1.1 million in net income offset by the semi-annual
      cash dividend of $192,000 and a $114,000 decrease in accumulated other
      comprehensive income. The Bank is subject to regulations of the Office of
      the Comptroller of the Currency that impose certain minimum regulatory
      capital requirements. Under each measure, the Bank was substantially in
      excess of the minimum regulatory requirements, and, by definition was
      "well capitalized" at June 30, 2005. The following table summarized, as of
      June 30, 2005, the Bank's capital ratios.

<TABLE>
<CAPTION>
                            Components   Actual     Required
                            of Capital   Ratio        Ratio
                            ----------   ------     --------
<S>                         <C>          <C>        <C>
Tier 1 Capital                $18,451      7.7%        4.0%
Total Risk Based Capital      $20,267     14.0%        8.0%
</TABLE>

      RECENTLY ISSUED ACCOUNTING STANDARDS

            In November 2003, the EITF reached consensus on Issue 03-1, "The
      Meaning of Other-Than-Temporary Impairment and Its Application to Certain
      Investments." Issue 03-1 provides guidance in the recognition and
      measurement of other-than-temporary impairment for certain securities,
      including:

      -     All debt securities and equity securities that are subject to the
            scope of SFAS No. 115, "Accounting for Certain Investments in Debt
            and Equity Securities"; and

                                      21
<PAGE>

      -     Equity securities that are not subject to the scope of SFAS No. 115
            and that are accounted for under the cost method of accounting, or
            cost method investments.

            Issue 03-1 also provides guidance on disclosure requirements for
      other-than-temporary impairment for cost method investments. The guidance
      in these areas of Issue 03-1 is effective for fiscal years ending after
      June 15, 2004. The implementation of these areas of Issue 03-1 is not
      anticipated to have a material impact on our financial statements. We have
      previously adopted the disclosure provisions of Issue 03-1 for debt and
      equity investments that are accounted for under SFAS No. 115. Those
      requirements were effective for fiscal years ending after December 15,
      2003.

            On March 31, 2005, the FASB issued a final FSP EITF Issue 03-1-1
      that delays the effective date for the measurement and recognition
      guidance contained within Issue 03-1. Disclosures required by Issue 03-1
      have not been deferred. The FASB noted that this delay does not suspend
      existing accounting requirements for assessing whether impairments of held
      to maturity and available for sale securities are other-than-temporary,
      including current guidance for cost method investments.

      ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

            Market risk is the exposure to economic loss that arises from
      changes in the values of certain financial instruments. The types of
      market risk exposures generally faced by banking entities include interest
      rate risk, equity market price risk, foreign currency risk and commodity
      price risk. Due to the nature of its operations, only equity market price
      risk and interest rate risk are significant to the Bank.

            The objective of the Bank's liquidity management program is to
      ensure the continuous availability of funds to meet the withdrawal demands
      of depositors and the credit needs of borrowers. The basis of the Bank's
      liquidity comes from the stability of its core deposits. Liquidity is also
      available through the available for sale securities portfolio and
      short-term funds such as federal funds sold which totaled $52.6 million,
      or 21.6% of total assets at June 30, 2005. In addition, liquidity may be
      generated through loan repayments and over $3.0 million of available
      borrowing arrangements with correspondent banks. At June 30, 2005,
      management considered the Bank's ability to satisfy its anticipated
      liquidity needs over the next twelve months. Management believes that the
      Bank is well positioned and has ample liquidity to satisfy these needs.
      The Bank generated $2.4 million of cash from operations in the first six
      months of 2005, which compares to $1.6 million during the same time period
      in 2004. Additional cash of $5.8 million was generated through net
      financing activities through June 30, 2005, which compares to $4.9 million
      for the first six months of 2004. These proceeds along with proceeds from
      the sales and calls of investment securities were used to fund loans and
      purchase securities during each year. Net cash used in investing
      activities totaled $8.2 million during the first six months of 2005
      compared to $5.5 million during the same time period in 2004. Details on
      both the sources and uses of cash are presented in the Consolidated
      Statements of Cash Flows contained in the financial statements.

            The objective of the Bank's interest rate sensitivity management
      program, also known as asset/liability management, is to maximize net
      interest income while minimizing the risk of adverse effects from changing
      interest rates. This is done by controlling the mix and maturities of
      interest sensitive assets and liabilities. The Bank has established an
      asset/liability committee for this purpose. Daily management of the Bank's
      sensitivity of earnings to changes in interest rates within the Bank's
      policy guidelines are monitored by using a combination of off-balance
      sheet and on-balance sheet financial instruments. The Bank's Chief
      Executive Officer, Senior Lending Officer, Chief Financial Officer and the
      Chief Operations Officer monitor day to day deposit flows, lending
      requirements and the competitive environment. Rate changes occur within
      policy guidelines if necessary to minimize adverse effects. Also, the
      Bank's policy is intended to ensure the Bank measures a range of rate
      scenarios and patterns of rate movements that are reasonably possible. The
      Bank measures the impact that 200 basis point changes in rates would have
      on earnings over the next twelve months.

            In analyzing interest rate sensitivity for policy measurement, the
      Bank compares its forecasted earnings in both a "high rate" and "low rate"
      scenario to a base-line scenario. The Bank's base-line scenario is its
      estimated most likely path for future short-term interest rates over the
      next 12 months. The "high rate" and "low rate" scenarios assumes a 100 and
      200 basis point increases or decreases in the prime rate from the
      beginning point of the base-line scenario over the most current 12-month
      period. The Bank's

                                      22
<PAGE>

      policy limit for the maximum negative impact on earnings resulting from
      "high rate" or "low rate" scenarios is 10 percent. The policy measurement
      period is 12 months in length, beginning with the first month of the
      forecast.

            The Bank's base-line scenario holds the prime rate constant at 6.00
      percent through June 2006. Based on the July 2005 outlook, if interest
      rates increased or decreased by 200 basis points, the model indicates that
      net interest income during the policy measurement period would be affected
      by less than 10 percent, in both an increasing or decreasing interest rate
      scenario.

      CONTRACTUAL OBLIGATIONS

            During the quarter ended March 31, 2005, the Bank entered into a
      contract with a consulting firm related to the internal controls
      assessment, design effectiveness and documentation, and internal control
      testing to be compliant with the provisions of the Sarbanes-Oxley Act of
      2002. This contract will not exceed $160,000. Also, the bank has remaining
      contractual obligations totaling approximately $70,000 relating to the
      construction of the Spring Mills branch. There were no other material
      changes outside the normal course of business to the quantitative and
      qualitative disclosures about contractual obligations previously reported
      on Form 10-K for the year ended December 31, 2004. See Item 7,
      "Management's Discussion and Analysis of Financial Condition and Results
      of Operations - Contractual Obligations" in the Form 10-K for December 31,
      2004 for a detailed discussion.

      ITEM 4. CONTROLS AND PROCEDURES

            The Company's chief executive officer and chief financial officer,
      based on their evaluation as of the end of the reporting period of this
      quarterly report of the Company's disclosure controls and procedures (as
      defined in Rule 13 (a) - 14 (c) of the Securities Exchange Act of 1934),
      have concluded that the Company's disclosure controls and procedures are
      adequate and effective for purposes of Rule 13 (a) - 14 (c) and timely,
      alerting them to material information relating to the Company required to
      be included in the Company's filings with the Securities and Exchange
      Commission under the Securities Exchange Act of 1934.

            There have been no changes in the Company's internal controls over
      financial reporting in the fiscal quarter ended June 30, 2005, that have
      materially affected, or are reasonably likely to materially affect, our
      internal controls over financial reporting.

            Presently, the Bank has engaged consultants to assist in the
      documentation of internal controls and make recommendations for
      improvements, if necessary, as part of the compliance with Section 404 of
      the Sarbanes-Oxley Act.

                                      23
<PAGE>

      PART II: OTHER INFORMATION

      Item 1. Legal Proceedings

            None; however, CNB is involved in various legal proceedings
            occurring in the ordinary course of business. There are no material
            legal proceedings to which CNB or its subsidiary is a part, or to
            which any of their property is subject.

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

      a.)   The annual meeting of stockholders of CNB Financial Services, Inc.
            was held April 6, 2005.

      b.)   Proxies for the annual meeting were solicited pursuant to Regulation
            14A under the Securities and Exchange Act of 1934. There was no
            solicitation in opposition to management's nominees as listed in the
            proxy statement, and all such nominees were reelected.

      c.)   (1) Election of Directors

            Elected to serve as directors until the 2005 annual meeting of
            stockholders:

<TABLE>
<CAPTION>
                                      Without
                              For    Authority
                            ------   ---------
<S>                         <C>      <C>
Kenneth W. Apple            305,041      0
J. Robert Ayers             305,041      0
John E. Barker              305,041      0
Margaret S. Bartles         305,041      0
Jay E. Dick                 305,041      0
Herbert L. Eppinger         305,041      0
Robert L. Hawvermale        305,041      0
J. Philip Kesecker          305,041      0
Jerald McGraw               305,041      0
Martha H. Quarantillo       305,041      0
Thomas F. Rokisky           305,041      0
Charles S. Trump, IV        305,041      0
Arlie R. Yost               305,041      0
</TABLE>

      Item 6. Exhibits

            31.1 Certification of the Chief Executive Officer pursuant to 18
            U.S.C. Section 1350, as adopted pursuant to Section 302 of the
            Sarbanes-Oxley Act of 2002

            31.2 Certification of the Chief Financial Officer pursuant to 18
            U.S.C. Section 1350, as adopted pursuant to Section 302 of the
            Sarbanes-Oxley Act of 2002

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

            32.2 Certification of the Chief Financial Officer pursuant to 18
            U.S.C. Section 1350, as adopted pursuant to Section 906 of the
            Sarbanes-Oxley Act of 2002

                                      24
<PAGE>

                                   SIGNATURES

In accordance with the requirements of the Securities Exchange Act of 1934, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

CNB Financial Services, Inc.
----------------------------
        (Registrant)

Date August 3, 2005                  /s/ Thomas F. Rokisky, President/CEO
                                     -------------------------------------------
Date August 3, 2005                  /s/ Rebecca S. Stotler, Vice President/CFO
                                     -------------------------------------------

                                      25