Exchange National Bancshares, Inc. of Jefferson City, Missouri, Announces 2nd Quarter Earnings of $0.49 Per Diluted Share

Business Wire, July 25, 2003

Business Editors

JEFFERSON CITY, Mo.--(BUSINESS WIRE)--July 25, 2003

Today, Exchange National Bancshares, Inc. (NASDAQ: EXJF) reported second quarter earnings of $0.49 per diluted share, up 4% from diluted earnings per share of $0.47 a year ago.

Net income for the three months ending June 30, 2003, of $2,043,000 increased $45,000 when compared to the second quarter of 2002.

For the six months ending June 30, 2003, Exchange National Bancshares earned $1.05 per diluted share, up 14% from diluted earnings per share of $0.92 a year earlier. Net income for the six months ending June 30, 2003, of $4,398,000 increased $471,000 when compared to the first six months of 2002.

In commenting on earnings, James E. Smith, Chairman and CEO said, "Financial results for the first half of 2003 have been strong. Increases over last year are attributed in large part to continued strong activity in residential real estate refinancing. For the six months ending June 30, 2003, gains on the sale of real estate loans increased approximately $1.1 million over last year. These gains were partially offset by a $556,000 impairment to the carrying value of mortgage loan servicing rights. The impairment was the result of accelerated residential mortgage loan prepayments and was calculated as part of our quarterly valuation process." Mr. Smith also stated, "We have completed the purchase of our branch in Springfield, Mo., and are excited about the opportunity to serve existing customers in this new location and to develop new relationships in Springfield and the surrounding communities."

Exchange National Bancshares, 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 Windsor, Collins, Osceola and Springfield; and Osage Valley Bank of Warsaw.

                           FINANCIAL SUMMARY
                           -----------------
                              (unaudited)
                              -----------

Balance sheet information:            June 30,           December 31,
                                        2003                 2002
                                   --------------       --------------
     Loans, net of
      allowance
      for loan losses                $547,638,093        $479,443,190
     Debt and equity
      securities                      186,936,219         186,724,362
     Total assets                     850,409,980         794,417,912
     Deposits                         646,221,269         591,190,652
     Stockholders' equity              86,341,231          82,827,120

                                     Three Months        Three Months
Statement of income                Ending June 30,     Ending June 30,
 information:                            2003                2002
                                   ---------------     ---------------
     Total interest income             $9,552,528         $10,213,633
     Total interest expense             3,253,036           4,174,159
     Net interest income                6,299,492           6,039,474
     Provision for loan
      losses                              235,500             234,000
     Noninterest income                 1,465,175           1,354,537
     Noninterest expense                4,584,194           4,400,313
     Income taxes                         902,353             761,904
     Net income                         2,042,620           1,997,794

                                     Six Months          Six Months
Statement of income                Ending June 30,     Ending June 30,
 information:                           2003                2002
                                 ----------------      ---------------
     Total interest income            $18,984,175         $20,506,961
     Total interest expense             6,535,511           8,562,559
     Net interest income               12,448,664          11,944,402
     Provision for loan
      losses                              471,000             468,000
     Noninterest income                 3,437,178           2,659,137
     Noninterest expense                9,084,534           8,621,021
     Income taxes                       1,932,451           1,588,068
     Net income                         4,397,857           3,926,450

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.