EXJF Exchange National Bancshares (MM)

Exchange National Bancshares of Jefferson City, Mo. (Nasdaq:EXJF), a financial services company, announced today third quarter earnings of $0.63 per diluted share, up 29% from diluted earnings per share of $0.49 a year ago. Net income for the three months ended September 30, 2005, of $2,652,000 increased $596,000 when compared to the third quarter of 2004. For the nine months ended September 30, 2005, Exchange National Bancshares earned $1.72 per diluted share, up 12% from diluted earnings per share of $1.54 a year ago. Net income for the nine months ended September 30, 2005, of $7,234,000 increased $756,000 when compared to the first nine months of 2004. Exchange completed its acquisition of Bank 10 of Belton on May 2, 2005, and Bank 10 results of operations for this acquisition have been included in Exchange's consolidated net income since that date. At purchase, Bank 10 had total assets of $198,638,000; total loans of $131,941,000; total investment securities of $26,080,000; and total deposits of $149,611,000. In commenting on earnings performance, Chairman and CEO James E. Smith said: "We are very pleased with our third quarter and year-to-date results. We believe that we are well positioned to take advantage of opportunities within the markets we serve." For the year, annualized return on average equity was 10.29% and the annualized return on average assets was 0.90% compared to 9.61% and 0.97% respectively for 2004. Comparing September 30, 2005, balances to December 31, 2004, total assets increased 27.7% to $1,179,761,000. Total loans grew 25.3% to $797,570,000, while investment securities increased 23.7% to $212,482,000. Total deposits increased 25.2% to $909,484,000. During the same period, stockholders' equity increased 4.6% to $96,006,000 or 8.1% of total assets. Other News Exchange National Bancshares also announced today that its Board of Directors has approved a special cash dividend of 9 cents per share, payable December 1, 2005, to shareholders of record at the close of business on November 15, 2005. In commenting on the dividend, Chairman and CEO Smith stated, "We are proud to again demonstrate our financial strength through 19 consecutive years of payment of a special dividend." About Exchange National Bancshares Exchange National Bancshares, Inc., a multi-bank holding company headquartered in Jefferson City, Missouri, is the parent company of The Exchange National Bank of Jefferson City with locations in California, Tipton and St. Robert; Citizens Union State Bank & Trust of Clinton with locations in Springfield, Lee's Summit, Branson, Windsor, Collins and Osceola; Bank 10 with locations in Belton, Drexel, Harrisonville, Independence and Raymore; and Osage Valley Bank of Warsaw. Statements made in this press release that suggest Exchange National Bancshares' or management's intentions, hopes, beliefs, expectations, or predictions of the future include "forward-looking statements" within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended. It is important to note that actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those projected in such forward-looking statements is contained from time to time in the company's quarterly and annual reports filed with the Securities and Exchange Commission. -0- *T FINANCIAL SUMMARY (unaudited) September 30, December 31, Balance sheet information: 2005 2004 ---- ---- Loans, net of allowance for loan losses $788,777,119 $629,141,036 Debt and equity securities 212,481,981 171,717,635 Total assets 1,179,760,730 923,874,270 Deposits 909,483,508 726,649,476 Stockholders' equity 96,006,183 91,770,783 Three Months Three Months Ended Sept. 30, Ended Sept. 30, Statement of income information: 2005 2004 ---- ---- Total interest income $15,862,683 $10,404,311 Total interest expense 6,706,637 3,458,738 Net interest income 9,156,046 6,945,573 Provision for loan losses 260,500 160,500 Noninterest income 2,011,187 1,371,530 Noninterest expense 7,068,755 5,177,503 Income taxes 1,186,307 923,366 Net income 2,651,671 2,055,734 Diluted Earnings Per Share $0.63 $0.49 Nine Months Nine Months Ended Sept. 30, Ended Sept. 30, Statement of income information: 2005 2004 ---- ---- Total interest income $41,277,324 $30,150,508 Total interest expense 16,958,010 9,594,400 Net interest income 24,319,314 20,556,108 Provision for loan losses 733,667 606,500 Noninterest income 5,139,722 4,368,999 Noninterest expense 18,304,870 14,840,475 Income taxes 3,186,411 2,999,631 Net income 7,234,088 6,478,501 Diluted Earnings Per Share $1.72 $1.54 *T