EXJF Exchange National Bancshares (MM)

Exchange National Bancshares of Jefferson City, Mo. (NASDAQ: EXJF), a financial services company, announced today second quarter earnings of $0.70 per diluted share, up 25% from diluted earnings per share of $0.56 a year ago. Net income for the three months ended June 30, 2006, of $2,933,000 increased $588,000 when compared to the second quarter of 2005. For the six months ended June 30, 2006, Exchange National Bancshares earned $1.34 per diluted share, up 23% from diluted earnings per share of $1.09 a year ago. Net income for the six months ended June 30, 2006, of $5,622,000 increased $1,039,000 when compared to the first six months of 2005. "We are pleased with our second quarter and year-to-date results," said Chairman & CEO James E. Smith. "We are seeing the positive effects of our Bank 10 acquisition which was completed May 2, 2005, and of our expansion into the Lee's Summit and Branson markets." Net interest income increased $1.8 million or 22% for the second quarter of 2006 versus the same quarter in 2005. This increase resulted from improvement in our net interest margin and from a higher volume of earning assets. The net interest margin on a tax equivalent basis increased to 3.90% during the second quarter compared to 3.34% for the same quarter of 2005. The second quarter margin was slightly higher than the 3.83% reported in the first quarter of 2006. For the three months ended June 30, 2006, return on average equity was 11.79% and return on average assets was 1.02%. For the six months ended June 30, 2006, return on average equity was 11.47% and return on average assets was 0.99%. Comparing June 30, 2006, balances to December 31, 2005, total assets increased 3.1% to $1,161,586,000. Total loans grew 2.6% to $825,035,000, while investment securities increased 3.5% to $185,918,000. Total deposits increased 2.0% to $898,849,000. During the same period, stockholders' equity increased 3.0% to $99,625,000 or 8.6% of total assets. About Exchange National Bancshares Exchange National Bancshares, Inc., a multi-bank holding company headquartered in Jefferson City, Mo., 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) Balance sheet information: June 30, 2006 December 31, 2005 Loans, net of allowance for loan losses $825,034,722 $804,450,102 Debt and equity securities 185,918,197 179,691,826 Total assets 1,161,585,977 1,126,470,476 Deposits 898,849,310 881,455,206 Stockholders' equity 99,625,354 96,732,865 Three Months Ended Three Months Ended June 30, 2006 June 30, 2005 Statement of income information: Total interest income $17,929,821 $13,887,263 Total interest expense 8,095,272 5,811,106 Net interest income 9,834,549 8,076,157 Provision for loan losses 310,500 237,667 Non-interest income 2,249,180 1,797,191 Non-interest expense 7,457,467 6,260,857 Income taxes 1,382,577 1,030,021 Net income 2,933,185 2,344,803 Six Months Ended Six Months Ended June 30, 2006 June 30, 2005 Statement of income information: Total interest income $34,722,687 $25,414,641 Total interest expense 15,429,592 10,251,373 Net interest income 19,293,095 15,163,268 Provision for loan losses 628,000 473,167 Non-interest income 4,275,091 3,128,535 Non-interest expense 14,769,059 11,236,115 Income taxes 2,549,335 2,000,104 Net income 5,621,792 4,582,417 *T