<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 SEPTEMBER 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]

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). 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 November 8, 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 September 30, 2005
          (Unaudited) and December 31, 2004.....................................................      3

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

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

         Consolidated Statements of Cash Flows for the Nine Months Ended September 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 Nine Months ended September 30, 2005.............................    14

     Item 3. Quantitative and Qualitative Disclosures about Market Risk.........................     23

     Item 4. Controls and Procedures............................................................     24

PART II: OTHER INFORMATION

      Item 1. Legal  Proceedings................................................................     25

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

      SIGNATURES................................................................................     26
</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; (5) loan growth
does not continue to increase through the end of 2005 as expected; and (6)
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>
                                                        SEPTEMBER 30,     DECEMBER 31,
                                                            2005             2004
                                                        -------------    -------------
                                                         (Unaudited)
<S>                                                     <C>              <C>
                     ASSETS

Cash and due from banks                                 $   9,992,849    $  10,047,939
Federal funds sold                                              6,000           91,000
Securities available for sale
   (at approximate market value)                           49,549,081       59,740,291
Federal Home Loan Bank stock, at cost                       1,378,100        1,169,800
Federal Reserve Bank stock, at cost                           138,650          129,650
Loans and lease receivable, net                           177,045,414      154,919,582
Accrued interest receivable                                 1,093,812        1,042,573
Premises and equipment, net                                 6,657,915        6,044,446
Deferred income taxes                                         769,557          512,224
Cash surrender value of life insurance                      1,278,684        1,168,922
Intangible assets                                             649,959          738,057
Other assets                                                  741,027        1,393,582
                                                        -------------    -------------

         TOTAL ASSETS                                   $ 249,301,048    $ 236,998,066
                                                        =============    =============

            LIABILITIES AND SHAREHOLDERS' EQUITY

LIABILITIES
   Deposits:
        Demand                                          $  40,867,371    $  36,965,406
        Interest-bearing demand                            60,297,403       48,055,089
        Savings                                            33,188,467       31,981,754
        Time, $100,000 and over                            31,749,148       34,265,305
        Other time                                         57,582,992       56,460,984
                                                        -------------    -------------
                                                        $ 223,685,381    $ 207,728,538
   Accrued interest payable                                   575,668          543,551
   FHLB borrowings                                          3,500,000        8,600,000
   Securities sold under repurchase agreement                 224,564          216,909
   Accrued expenses and other liabilities                   1,860,006        1,760,328
                                                        -------------    -------------

         TOTAL LIABILITIES                              $ 229,845,619    $ 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                                       15,812,842       14,172,144
   Accumulated other comprehensive income                    (679,053)        (345,044)
                                                        -------------    -------------

         TOTAL SHAREHOLDERS' EQUITY                     $  19,455,429    $  18,148,740
                                                        -------------    -------------

         TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY     $ 249,301,048    $ 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                         NINE MONTHS ENDED
                                                      SEPTEMBER 30,                               SEPTEMBER 30,
                                          -----------------   ---------------------   ----------------- ------------------
                                                 2005                2004                     2005             2004
                                          -----------------   ---------------------   ----------------- ------------------
<S>                                       <C>                 <C>                     <C>               <C>
INTEREST INCOME
   Interest and fees on loans             $       2,898,827   $           2,523,826    $      8,094,536 $        7,337,321
   Interest and dividends on
    securities
        U.S. Government agencies and
          corporations                              359,207                 314,847           1,106,544            809,716
        Mortgage backed securities                   87,851                  94,657             262,412            261,151
        State and political subdivisions            100,868                  76,377             318,321            179,471
        Other                                         6,176                   2,525              25,608             12,436
   Interest on federal funds sold
    and FHLB deposits                                 1,323                  18,933               1,965             26,539
                                          -----------------   ---------------------   ----------------- ------------------
                                          $       3,454,252   $           3,031,165   $       9,809,386 $        8,626,634
                                          -----------------   ---------------------   ----------------- ------------------
INTEREST EXPENSE
   Interest on interest bearing demand,   $         910,214   $             805,898   $       2,514,430 $        2,330,769
     savings and time deposits
   Interest on FHLB borrowings                       94,032                     767             186,004              4,924
                                          -----------------   ---------------------   ----------------- ------------------
                                          $       1,004,246   $             806,665   $       2,700,434 $        2,335,693
                                          -----------------   ---------------------   ----------------- ------------------

             NET INTEREST INCOME          $       2,450,006   $           2,224,500   $       7,108,952 $        6,290,941

PROVISION FOR LOAN LOSSES                            72,000                 102,000             280,000            283,000
                                          -----------------   ---------------------   ----------------- ------------------

             NET INTEREST INCOME
               AFTER PROVISION FOR
               LOAN LOSSES                $       2,378,006   $           2,122,500   $       6,828,952 $        6,007,941
                                          -----------------   ---------------------   ----------------- ------------------

NONINTEREST INCOME
   Service charges on deposit accounts    $         325,592   $             318,885   $         894,980 $          862,918
   Other service charges,
    commissions and fees                            149,318                 117,472             415,418            308,092
   Insurance commissions                             35,986                  36,792             114,027            103,505
   Other operating income                            13,285                  11,221              47,109             42,207
   Net gain on sale of securities                     2,948                       -               2,374            135,546
   Income from title company                          7,041                   4,380              22,278             32,000
                                          -----------------   ---------------------   ----------------- ------------------
                                          $         534,170   $             488,750   $       1,496,186 $        1,484,268
                                          -----------------   ---------------------   ----------------- ------------------
NONINTEREST EXPENSES
   Salaries                               $         784,523   $             681,509   $       2,256,248 $        1,897,930
   Employee benefits                                273,119                 234,092             807,287            673,299
   Occupancy of premises                            118,338                  93,620             318,755            256,031
   Furniture and equipment expense                  235,326                 219,626             665,481            632,636
   Other operating expenses                         480,921                 456,172           1,541,202          1,404,490
                                          -----------------   ---------------------   ----------------- ------------------
                                          $       1,892,227   $           1,685,019   $       5,588,973 $        4,864,386
                                          -----------------   ---------------------   ----------------- ------------------
             INCOME BEFORE INCOME
               TAXES                      $       1,019,949   $             926,231   $       2,736,165 $        2,627,823

PROVISION FOR INCOME TAXES                          314,452                 290,942             903,087            835,838
                                          -----------------   ---------------------   ----------------- ------------------

             NET INCOME                   $         705,497   $             635,289   $       1,833,078 $        1,791,985
                                          =================   =====================   ================= ==================

BASIC EARNINGS PER SHARE                  $            1.54   $                1.39   $            4.00 $             3.91
                                          =================   =====================   ================= ==================
</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 nine months
 ended September 30, 2005                               -           -   1,833,078                -     1,833,078
 Change in unrealized gains
 (losses) on securities
 available for sale (net of tax of $204,714)            -           -           -         (334,009)     (334,009)
                                                                                                    ------------
Total Comprehensive Income                              -           -           -                -     1,499,069
                                                                                                    ------------
Cash dividends ($0.42 per share)                                         (192,380)                      (192,380)
                                             ------------ ----------- -----------  ---------------  ------------

BALANCE, SEPTEMBER 30, 2005                  $    458,048 $ 3,863,592 $15,812,842  $      (679,053) $ 19,455,429
                                             ============ =========== ===========  ===============  ============
</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>
                                                                                NINE MONTHS ENDED
                                                                                  SEPTEMBER 30,
                                                                           ---------------------------
                                                                              2005             2004
                                                                           ------------  -------------
<S>                                                                        <C>           <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                                                 $  1,833,078  $   1,791,985
Adjustments to reconcile net income to net cash
 provided by operating activities:
  Depreciation and amortization                                                 621,840        554,020
  Provision for loan losses                                                     280,000        283,000
  Deferred income taxes                                                         (52,619)             -
  Net loss (gain) on sale of securities                                          (2,374)      (135,546)
  (Increase) in accrued interest receivable                                     (51,239)      (119,651)
  (Increase) decrease in other assets                                           500,202        (84,169)
  Increase (decrease) in accrued interest payable                                32,117        (95,449)
  (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                  99,678        (78,784)
  Amortization of deferred loan (fees) cost                                      38,441         13,916
  Amortization (accretion) of premium and discount on investments                49,959         53,266
                                                                           ------------  -------------
    NET CASH PROVIDED BY OPERATING ACTIVITIES                              $  3,298,143  $   2,134,652
                                                                           ------------  -------------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Net (increase) in loans                                                  $(22,444,273) $  (1,612,945)
  Proceeds from sales of securities                                          34,548,940      6,391,436
  Proceeds from maturities, repayments and calls of securities                2,304,079     11,983,142
  Purchases of securities                                                   (27,248,117)   (31,819,849)
  Purchases of Federal Home Loan Bank stock                                  (4,811,500)      (561,100)
  Purchases of Federal Reserve Bank stock                                        (9,000)             -
  Redemptions of Federal Home Loan Bank stock                                 4,603,200        463,700
  Purchases of premises and equipment                                          (994,858)      (461,757)
  Net (increase) decrease in federal funds sold                                  85,000     (5,530,000)
  Premiums paid on life insurance                                               (58,822)       (58,822)
  Cash from acquired branch                                                           -      5,020,017
                                                                           ------------  -------------
   NET CASH (USED IN) INVESTING ACTIVITIES                                 $(14,025,351) $ (16,186,178)
                                                                           ------------  -------------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Net increase in demand and savings deposits                              $ 17,350,992  $  21,432,367
  Net (decrease) in time deposits                                            (1,394,149)    (5,154,035)
  Net increase in securities sold under repurchase agreement                      7,655        211,475
  Net (decrease) in FHLB borrowings                                          (5,100,000)    (1,200,000)
  Cash dividends paid                                                          (192,380)      (178,639)
                                                                           ------------  -------------
   NET CASH PROVIDED BY FINANCING ACTIVITIES                               $ 10,672,118  $  15,111,168
                                                                           ------------  -------------

   NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                    $    (55,090) $   1,059,642
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR                               10,047,939      7,641,280
                                                                           ------------  -------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD                                 $  9,992,849  $   8,700,922
                                                                           ============  =============

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
   Cash paid during the period:
       Interest                                                            $  2,668,317  $   2,431,142
       Income taxes                                                        $    966,500  $     864,009
The Company acquired certain assets and liabilities associated with the
Hancock Branch of Fidelity Bank. In conjunction with the acquisition, the
assets acquired and liabilities assumed were as follows:
   Fair value of assets acquired                                                         $   9,561,420
                                                                                         -------------
   Fair value of liabilities assumed                                                     $  14,581,437
                                                                                         -------------
   Liabilities assumed in excess of assets acquired                                      $   5,020,017
                                                                                         =============
</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
      September 30, 2005 and the results of operations for the three and nine
      months ended September 30, 2005 and 2004 and cash flows for the nine
      months ended September 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>
<CAPTION>
<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
      September 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>

                                                                    SEPTEMBER 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
     After 1 but within 5 years                  $13,826,784    $     1,190   $   265,498   $13,562,476    3.96 %
     After 5 but within 10 years                  17,717,093          1,988       160,580    17,558,501    4.65
                                                 -----------    -----------   -----------   -----------
                                                 $31,543,877    $     3,178   $   426,078   $31,120,977    4.35 %
                                                 -----------    -----------   -----------   -----------

    States and political subdivisions
     Within one year                             $    20,000    $       685   $         -   $    20,685    4.50 %
     After 1 but within 5 years                    2,188,745          1,885        32,194     2,158,436    3.00
     After 5 but within 10 years                   8,881,251         20,777        69,987     8,832,041    3.47
                                                 -----------    -----------   -----------   -----------
                                                 $11,089,996    $    23,347   $   102,181   $11,011,162    3.38 %
                                                 -----------    -----------   -----------   -----------

    Mortgage backed securities                   $ 7,533,583    $         -   $   116,641   $ 7,416,942    4.57 %
                                                 -----------    -----------   -----------   -----------

Total securities available for sale              $50,167,456    $    26,525   $   644,900   $49,549,081    4.17 %
                                                 ===========    ===========   ===========   ===========

Restricted:
    Federal Reserve Bank stock                   $   138,650    $         -   $         -   $   138,650    6.00 %
    Federal Home Loan Bank stock                   1,378,100              -             -     1,378,100    2.78
                                                 -----------    -----------   -----------   -----------
Total restricted investments                     $ 1,516,750    $         -   $         -   $ 1,516,750    3.07 %
                                                 ===========    ===========   ===========   ===========
</TABLE>

                                       8

<PAGE>
9
                          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 fair value of securities pledged to secure public deposits and
      for other purposes as required or permitted by law totaled $37,280,690 at
      September 30, 2005 and $32,538,864 at December 31, 2004. Also, a security
      with a fair value of $245,200 and $247,275 at September 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 nine months ended September 30, 2005 and the year
      ended December 31, 2004 were $34,548,938 and $6,391,436, respectively.
      Gross gains (losses) of $145,013 and $(142,638) during the nine months
      ended September 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 tables show 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 September 30, 2005 and December 31, 2004.

            Securities are summarized as follows:

<TABLE>
<CAPTION>
                                                    SEPTEMBER 30, 2005
                                   ---------------------------------------------------------------------------------
                                      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                $16,418,607   $   138,105   $11,442,050   $   287,973   $27,860,657   $   426,078

State and political subdivisions     7,666,087        74,770       719,862        27,411     8,385,949       102,181

Mortgage backed securities           5,519,889        66,101     1,897,055        50,540     7,416,944       116,641
                                   -----------   -----------   -----------   -----------   -----------   -----------

Total temporarily impaired
   securities                      $29,604,583   $   278,976   $14,058,967   $   365,924   $43,663,550   $   644,900
                                   ===========   ===========   ===========   ===========   ===========   ===========
</TABLE>

<TABLE>
<CAPTION>
                                                    DECEMBER 31, 2004
                                   ---------------------------------------------------------------------------------
                                      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                $17,999,875   $   207,515   $ 2,412,150   $    85,429   $20,412,025   $   292,944

State and political subdivisions     4,919,844        52,103             -             -     4,919,844        52,103

Mortgage backed securities           5,913,016        39,117       866,422        22,814     6,779,438        61,931
                                   -----------   -----------   -----------   -----------   -----------   -----------

Total temporarily impaired
   securities                      $28,832,735   $   298,735   $ 3,278,572   $   108,243   $32,111,307   $   406,978
                                   ===========   ===========   ===========   ===========   ===========   ===========
</TABLE>

                                       10
<PAGE>

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

Note 4. Loans and Leases Receivable

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

<TABLE>
<CAPTION>
                                 SEPTEMBER 30,     DECEMBER 31,
                                     2005             2004
                                 -------------    -------------
<S>                              <C>              <C>
Loans:
  Real estate                    $ 123,313,717    $ 108,158,901
  Commercial real estate            28,225,146       22,758,761
  Consumer                          17,131,245       16,404,853
  Commercial                         9,759,487        8,880,771
  Overdrafts                            78,636           82,556
                                 -------------    -------------
                                 $ 178,508,231    $ 156,285,842

Leases:                                150,243          166,389
                                 -------------    -------------
                                 $ 178,658,474    $ 156,452,231
Net deferred loan fees, costs,
    premiums and discounts             384,725          274,800
Allowance for loan losses           (1,997,785)      (1,807,449)
                                 -------------    -------------
                                 $ 177,045,414    $ 154,919,582
                                 =============    =============
</TABLE>

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

<TABLE>
<CAPTION>
                                  SEPTEMBER 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             280,000        283,000        393,000
    Recoveries                 139,738        129,011        158,850
    Loans charged off         (229,402)      (266,161)      (352,164)
                           -----------    -----------    -----------
Balance, Ending            $ 1,997,785    $ 1,753,613    $ 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:

                                       11
<PAGE>

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

Note 4. Loans and Leases Receivable

<TABLE>
<CAPTION>
                                                            SEPTEMBER 30,      DECEMBER 31,
                                                         -------------------   ------------
                                                           2005       2004         2004
                                                         --------   --------   ------------
<S>                                                      <C>        <C>        <C>
Nonaccrual  loans                                        $298,385   $436,162   $    380,731
Loans past due 90 days or more still accruing interest          -          -              -
                                                         --------   --------   ------------
     Total                                               $298,385   $436,162   $    380,731
                                                         ========   ========   ============
</TABLE>

Note 5. Time Deposits

            At September 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              $    1,391,651      $ 5,253,295
3 months thru 6 months              502,554        4,498,129
6 months thru 12 months           4,096,076        8,854,023
Over 12 months                   25,758,867       70,726,693
                             --------------      -----------
                             $   31,749,148      $89,332,140
                             ==============      ===========
</TABLE>

Note 6. Federal Home Loan Bank Borrowings

<TABLE>
<CAPTION>
                                       SEPTEMBER 30,          DECEMBER 31,
                                  -------------------------   ------------
                                      2005          2004          2004
                                  -----------   -----------   ------------
<S>                               <C>           <C>           <C>
Federal Home Loan Bank advances   $ 3,500,000   $         -   $  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 nine months ended September 30, 2005 was $24,481.

                                       12
<PAGE>

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

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 incurred
      for the health reimbursement accounts for the nine months ended September
      30, 2005 was $43,624.

                                       13
<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
         nine full-service offices and nine automated teller machines located in
         Morgan and Berkeley Counties, West Virginia and Washington County,
         Maryland. The Bank's nineth 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 nine months ended September 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

                                       14
<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 September 30, 2005 was
         $705,000 or $1.54 per share compared to $635,000 or $1.39 per share for
         the same period in 2004. Annualized return on average assets and
         average equity were 1.1% and 14.6% respectively, for the three months
         ended September 30, 2005, compared with 1.1% and 14.8%, respectively,
         for the three months ended September 30, 2004.

                  Net income for the nine months ended September 30, 2005 was
         $1.8 million or $4.00 per share compared to $1.8 million or $3.91 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 nine
         months ended September 30, 2005, compared with 1.1% and 13.9%,
         respectively, for the nine months ended September 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
         continued to increase in the third quarter of 2005 and continued loan
         growth is expected through the end of 2005 although at a slower pace.
         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. 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, which were less than
         anticipated at March 31, 2005, 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 September 30,
         2005 increased by $226,000 or 10.1% over the same period in 2004.
         Interest income for the three months ended September 30, 2005 increased
         by $423,000 or 14.0% compared to the same period in 2004, while
         interest expense increased by $198,000 or 24.5% during the three months
         ended September 30, 2005, as compared to the same period in the prior
         year.

                                       15
<PAGE>

                  Net interest income for the nine months ended September 30,
         2005 increased by $818,000 or 13.0% over the same period in 2004.
         Interest income for the nine months ended September 30, 2005 increased
         by $1.2 million or 13.7% compared to the same period in 2004, while
         interest expense increased by $365,000 or 15.6% during the nine months
         ended September 30, 2005, as compared to the same period in the prior
         year.

                  Increased net interest income for the three and nine 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 savings 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 third quarter of 2005 compared to the same period
         in 2004, average net interest earning assets increased $20.9 million or
         10.0% and average net interest bearing liabilities increased $12.9
         million or 7.5% resulting in increased net interest income. CNB
         experienced a 1 basis point increase in the ratio of net interest
         income to average interest earning assets. The 21 basis point increase
         in rates earned on average interest earning assets offset by a 30 basis
         point increase in rates paid on average interest bearing liabilities
         contributed to the slight increase in the net interest margin.

                  During the first nine months of 2005 compared to the same
         period in 2004, average net interest earning assets increased $25.9
         million or 13.2% and average net interest bearing liabilities increased
         $19.5 million or 12.2% resulting in increased net interest income. The
         ratio of net interest income to average interest earning assets was
         unchanged for the nine month comparison. The 6 basis point increase in
         rates paid on average interest bearing liabilities offset by a 3 basis
         point increase in rates earned on average interest earning assets
         contributed to the nonmovement 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.

                                       16
<PAGE>

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

<TABLE>
<CAPTION>
                                                           SEPTEMBER 30, 2005              SEPTEMBER 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 and FHLB deposits           $       102  $       1   3.28%   $     5,161  $     19    1.33%
    Securities:
      Taxable                                           42,367        457   4.31         38,858       412    4.24
      Tax-exempt (1)                                    11,600         97   5.07          8,729        76    5.28
    Loans (net of unearned interest) (2)(5)(6)         175,974      2,823   6.42        156,359     2,453    6.28
                                                   -----------------------------    -----------------------------
         Total interest earning assets (1)         $   230,043  $   3,378   5.87%   $   209,107  $  2,960    5.66%
                                                   -----------------------------    -----------------------------

Nonearning assets:
    Cash and due from banks                        $     9,719                      $     9,661
    Bank premises and equipment, net                     6,639                            5,595
    Other assets                                         4,324                            4,480
    Allowance for loan losses                           (1,993)                          (1,760)
                                                   -----------                      -----------
         Total assets                              $   248,732                      $   227,083
                                                   ===========                      ===========

Interest bearing liabilities:
    Savings deposits                               $    32,497  $      41   0.50%   $    30,829  $     42    0.54%
    Time deposits                                       87,919        615   2.80         95,126       622    2.62
    NOW accounts                                        43,875        230   2.10         35,727       121    1.35
    Money market accounts                               10,413         24   0.92         10,205        21    0.82
    Borrowings                                          10,380         94   3.62            293         1    1.37
                                                   -----------------------------    -----------------------------
         Total interest bearing liabilities        $   185,084  $   1,004   2.17%   $   172,180  $    807    1.87%
                                                   -----------------------------    -----------------------------

Noninterest bearing liabilities:
    Demand deposits                                $    41,845                      $    35,529
    Other liabilities                                    2,460                            2,242
    Shareholders' equity                                19,343                           17,132
                                                   ------------                     -----------
         Total liabilities and
            shareholders' equity                   $   248,732                      $   227,083
                                                   ===========                      ===========

                                                                ---------                        --------
Net interest income (1)                                         $   2,374                        $  2,153
                                                                =========                        ========

Net interest spread (3)                                                     3.70%                            3.79%
                                                                           =====                           ======

Net interest income to average interest
            earning assets (1)                                              4.13%                            4.12%
                                                                           =====                           ======

</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 $76,000 in 2005 and $71,000 in
      2004.

(6)   Interest income on loans includes fees of $17,675 in 2005 and $18,343 in
      2004 from the Business Manager Program, student loans and lease
      receivables.

                                       17
<PAGE>

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

<TABLE>
<CAPTION>
                                                       SEPTEMBER 30, 2005              SEPTEMBER 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                             $     146  $      2      2.79%  $   2,677  $     27      1.05%
   Securities:
     Taxable                                         42,954     1,398      4.34      34,439     1,083      4.19
     Tax-exempt (1)                                  12,347       314      5.14       7,049       180      5.16
   Loans (net of unearned interest) (2)(5)(6)       166,707     7,874      6.30     152,103     7,125      6.25
                                                  ---------  --------      ----   ---------  --------      ----
        Total interest earning assets (1)         $ 222,154  $  9,588      5.75%  $ 196,268  $  8,415      5.72%
                                                  ---------  --------      ----   ---------  --------      ----

Nonearning assets:
   Cash and due from banks                        $   9,305                         $ 8,975
   Bank premises and equipment, net                   6,395                           5,403
   Other assets                                       4,254                           3,488
   Allowance for loan losses                         (1,933)                         (1,709)
                                                  ---------                       ---------
        Total assets                              $ 240,175                       $ 212,425
                                                  =========                       =========

Interest bearing liabilities:
   Savings deposits                               $  32,252  $    120      0.50%  $  27,674  $    107      0.52%
   Time deposits                                     87,371     1,721      2.63      93,299     1,907      2.73
   NOW accounts                                      41,890       606      1.93      29,000       260      1.20
   Money market accounts                             10,203        67      0.88       9,461        57      0.80
   Borrowings                                         7,769       186      3.19         553         5      1.21
                                                  ---------  --------      ----   ---------  --------      ----
        Total interest bearing liabilities        $ 179,485  $  2,700      2.01%  $ 159,987  $  2,336      1.95%
                                                  ---------  --------      ----   ---------  --------      ----

Noninterest bearing liabilities:
   Demand deposits                                $  39,641                        $ 32,924
   Other liabilities                                  2,323                           2,277
   Shareholders' equity                              18,726                          17,237
                                                  ---------                       ---------
        Total liabilities and
           shareholders' equity                   $ 240,175                       $ 212,425
                                                  =========                       =========

                                                             --------                        --------
Net interest income (1)                                      $  6,888                        $  6,079
                                                             ========                        ========

Net interest spread (3)                                                    3.75%                           3.77%
                                                                           ====                            ====

Net interest income to average
   interest earning assets (1)                                             4.13%                           4.13%
                                                                           ====                            ====

</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 $221,000 in 2005 and $212,000 in
      2004.

(6)   Interest income on loans includes fees of $49,551 in 2005 and $84,031 in
      2004 from the Business Manager Program, student loans and lease
      receivables.

                                       18
<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 September 30, 2005 and September 30, 2004
amounted to $72,000 and $102,000, respectively. The provision for loan losses
for the nine months ended September 30, 2005 and September 30, 2004, amounted to
$280,000 and $283,000, 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 an adjustment to the 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 September 30, 2005 increased
$45,000 or 9.3% to $534,000 from $489,000 in the third quarter of 2004.
Noninterest income for the nine months ended September 30, 2005 increased
$12,000 or 0.8% during the first nine months of 2004. The increase in
noninterest income is attributable to an increase in Bounce Protection fees,
fees generated from the insurance commissions, ATM and debit card fees and trust
fee income offset by a decrease in gain on sale of investment securities and
decrease in income from title insurance company. The decrease in income from the
title insurance company is a direct result of 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 nine 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 32% 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.

NONINTEREST EXPENSES

      Noninterest expenses for the three months ended September 30, 2005,
increased $207,000 or 12.3% and for the nine months ended September 30, 2005,
increased $725,000 or 14.9%. Salaries increased due to normal merit increases,
several new hires 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 third quarter 2005 and the first
nine months of 2005 showed an 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 $15,106 expense was incurred in the third quarter
of 2005 and a $43,624 expense was incurred for the first nine 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, the additional
utilities and supply costs for the Spring Mills branch and a full nine months of
utilities and supply costs for the Hancock Maryland branch. 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, miscellaneous NSF check and other losses and the
amortization of premium purchased for the Hancock branch facility. These
increases were offset by decreases in advertising, data processing expense,
bounce protection expense, legal fees and business manager expense. The increase
in debit card expense is a direct result of the increased deposit base of the

                                       19
<PAGE>

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. The increase in miscellaneous NSF check and
other losses is due to an increased exposure of the bank to fraudulent financial
instruments and schemes. Bounce protection expense decreased due to the
expiration of the Bank's contract with Pinnacle Financial Strategies in February
2004. Legal fees decreased as 2004 included expenses pertaining to the Hancock
branch acquisition. Business manager expense decreased due to the continued
decrease in the volume of receivables the bank purchased in the third quarter of
2005 due to a decline in customer need for the program. Advertising expense
decreased due to the concentrated advertising campaign in early 2004 which
related to the Hancock branch acquisition.

INCOME TAXES

      The Bank's provision for income taxes increased $24,000 or 8.1% to
$314,000 for the three months ended September 30, 2005 and increased $67,000 or
8.0% to $903,000 for the nine months ended September 30, 2005. The effective tax
rates for the third quarter of 2005 and 2004 were 30.8% and 31.4%, respectively
and for the first nine months of 2005 and 2004 were 33.0% and 31.8%,
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 September 30, 2005 increased $12.3 million
or 5.2% to $249.3 million from December 31, 2004 due primarily to a $22.1
million increase in loans and $613,000 increase in premises and equipment, net
offset by an $85,000 decrease in federal funds sold, $10.2 million decrease in
investment securities and a $653,000 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 September 30, 2005 due to the timing of
the settlement of these loans. The Bank's total liabilities increased $11.0
million or 5.0% to $229.8 million from December 31, 2004 due to a $16.0 million
increase in deposits offset by a $5.1 million decrease in borrowings.
Shareholders' equity increased $1.3 million to $19.5 million at September 30,
2005, primarily due to net income of $1.8 million offset by the semi-annual cash
dividend of $192,000 and a $334,000 decrease in accumulated other comprehensive
income. The $334,000 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 September 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 September 30, 2005, total loans increased $22.1 million or 14.3% to
$177.0 million from $154.9 million at December 31, 2004 with $17.8 million of
the growth being in the second and third quarters of 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 nine 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.

                                       20
<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>
                                              SEPTEMBER 30,       DECEMBER 31,
                                          ---------------------   ------------
                                            2005        2004          2004
                                          ---------   ---------   ------------
<S>                                       <C>         <C>         <C>
Nonaccrual loans                          $ 298,385   $ 436,162   $    380,731

Loans past due 90 days or more
   still accruing interest
                                                  -           -              -
                                          ---------   ---------   ------------
Total nonperforming loans                 $ 298,385   $ 436,162   $    380,731
                                          ---------   ---------   ------------

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

Total nonperforming assets                $ 298,385   $ 436,162   $    380,731
                                          =========   =========   ============

Nonperforming loans/Total loans                0.17%       0.28%          0.25%
Nonperforming assets/Total assets              0.12%       0.19%          0.16%
Allowance for loan losses/Total loans          1.13%       1.14%          1.17%

</TABLE>

      As of September 30, 2005, the Bank has no loans which management considers
to be impaired. Management is aware of six borrowers who have exhibited
weaknesses. Their loans have aggregate uninsured balances of $2.2 million. A
specific allowance of $190,000 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 September 30, 2005, the allowance for loan
losses totaled $2.0 million compared to $1.8 million at December 31, 2004. The
allowance for loan losses as a percentage of loans was 1.1% as of September 30,
2005 and 1.2% as of December 31, 2004.

                                       21
<PAGE>

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

<TABLE>
<CAPTION>
                                          SEPTEMBER 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             $    959                21%     $       810              20%
   and agriculture
Real estate - residential              518                69              467              69
     mortgage
Installment and other                  288                10              323              11
Unallocated                            233               N/A              207             N/A
                                  --------       -----------      -----------   -------------
        Total                     $  1,998               100%     $     1,807             100%
                                  ========       ===========      ===========   =============
</TABLE>

DEPOSITS

      The Bank's deposits increased $16.0 million or 7.7% during the nine months
ended September 30, 2005. $6.6 million of the $16.0 million increase is due to
the continued customer growth in the Bank's market area of Morgan and Berkeley
Counties, West Virginia and Washington County, Maryland. $9.4 million of the
increase is a direct result of a single public fund deposit account which
operates in the bank's market area. The Bank has experienced a slight change in
the deposit account mix during the first nine months of 2005. Steady growth
continues in regular demand, interest-bearing demand and savings deposits The
Bank experienced an overall decrease of $1.4 million other time deposits and
rate sensitive jumbo certificates of deposit during the first nine 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 the 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 $1.3 million or 7.2% during the first nine
months of 2005 due to $1.8 million in net income offset by the semi-annual cash
dividend of $192,000 and a $334,000 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 September 30, 2005.
The following table summarized, as of September 30, 2005, the Bank's capital
ratios.

<TABLE>
<CAPTION>
                                  Components     Actual   Required
                                  of Capital      Ratio     Ratio
                                  ----------     ------   --------
<S>                               <C>            <C>      <C>
Tier 1 Capital                    $   19,189       7.7%      4.0%
Total Risk Based Capital          $   21,057      14.1%      8.0%
</TABLE>

RECENTLY ISSUED ACCOUNTING STANDARDS

      There were no recently issued accounting standards which pertain to CNB at
September 30, 2005.

                                       22
<PAGE>

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 $49.6 million, or 19.9% of total assets at September
30, 2005. In addition, liquidity may be generated through loan repayments and
over $7.5 million of available borrowing arrangements with correspondent banks.
At September 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 $3.3 million of cash from operations in the first nine months
of 2005, which compares to $2.1 million during the same time period in 2004.
Additional cash of $10.7 million was generated through net financing activities
through September 30, 2005, which compares to $15.1 million for the first nine
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 $14.0 million during
the first nine months of 2005 compared to $16.2 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 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 6.75
percent through September 2006. Based on the October 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

                                       23
<PAGE>

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 September 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.

                                       24
<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 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

                                       25
<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 November 14, 2005       /s/ Thomas F. Rokisky, President/CEO
                                  --------------------------------------------

     Date November 14, 2005       /s/ Rebecca S. Stotler, Vice President/CFO
                                  --------------------------------------------

                                       26