EXJF Exchange National Bancshares (MM)

Exchange National Bancshares, Inc. (NASDAQ: EXJF) of Jefferson City, MO, announced today for the year ended December 31, 2005, Exchange National Bancshares, Inc. earned $2.36 per diluted share, up 19.2% from diluted earnings of $1.98 per share a year earlier. Net income for the year ended December 31, 2005, of $9,915,000 increased $1,610,000 when compared to the year ended 2004. In commenting on earnings, James E. Smith, Chairman and CEO, said: "We had a strong year in 2005. On May 2, 2005, we completed the purchase of Bank 10 of Belton, MO, and that purchase enhanced our already strong balance sheet position by providing $157 million in additional earning assets. Due to an increase in our net interest margin and in the volume of earning assets, net interest income increased $5,963,000 compared to the same period in 2004. The net interest margin increased from 3.43% for 2004 to 3.50% for 2005." Mr. Smith added: "Increases in net interest income were accompanied by additional increases in noninterest income of $1,533,000, of which the majority of the increase is attributed to the acquisition of Bank 10. The income growth was partially offset by a $4,985,000 increase in noninterest expense, a $380,000 increase in the 2005 loan loss provision expense and a $520,000 increase in income tax expense." For the year, return on average equity was 10.47% and the return on average assets was 0.91% compared to 9.16% and 0.93%, respectively, for 2004. Comparing December 31, 2005, balances to December 31, 2004, total assets increased 21.9% to $1,126,334,000. Loans net of allowance for loan losses grew 27.9% to $804,450,000, while investment securities increased 4.6% to $179,692,000. Total deposits increased 21.3% to $881,455,000. Subordinated notes increased 92.0% to $49,486,000. Proceeds from the increased debt were used to finance the Bank 10 acquisition. During the same period, stockholders' equity increased 5.4% to $96,733,000 or 8.6% of total assets. -0- *T FINANCIAL SUMMARY ----------------- (unaudited) December 31, December 31, Balance sheet information: 2005 2004 Loans, net of allowance for loan losses $804,450,102 $629,141,036 Debt and equity securities 179,691,826 171,717,635 Total assets 1,126,333,577 923,874,270 Deposits 881,455,206 726,649,476 Stockholders' equity 96,732,865 91,770,783 Year Ended Year Ended Statement of income information: Dec. 31, 2005 Dec. 31, 2004 Total interest income $57,340,034 $41,090,596 Total interest expense 23,673,590 13,386,911 Net interest income 33,666,444 27,703,685 Provision for loan losses 1,321,612 942,000 Noninterest income 7,265,296 5,732,557 Noninterest expense 25,368,150 20,382,706 Income taxes 4,326,700 3,806,556 Net income 9,915,278 8,304,980 *T 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.