Exchange National Bancshares, Inc. of Jefferson City, Missouri, Announces 2nd Quarter Earnings of $0.51 Per Diluted Share

Business Wire, July 30, 2004

JEFFERSON CITY, Mo. -- Today, Exchange National Bancshares, Inc. (Nasdaq:EXJF) reported second quarter earnings of $0.51 per diluted share, up 4% from diluted earnings per share of $0.49 a year ago.

Net income for the 3 months ended June 30, 2004, of $2,129,000 increased $86,000 when compared to the second quarter of 2003.

For the six months ended June 30, 2004, Exchange National Bancshares earned $1.05 per diluted share, the same as diluted earnings per share of a year earlier. Net income for the six months ended June 30, 2004, of $4,423,000 increased $25,000 when compared to the first six months of 2003.

In commenting on earnings, James E. Smith, Chairman and CEO said: "Management is pleased with current year earnings. Year to date net interest income increased $1,162,000 compared to the same period in 2003 due to an increase in the volume of earning assets. Increases in net interest income were offset by a $578,000 increase in non-interest expense, which is primarily associated with additional hires in our new branches as well as increased staffing at existing locations and a $440,000 decrease in other non-interest income. The decrease in other non-interest income resulted from reduced gains on sale of mortgage loans due to fewer refinancings."

For the year, return on average equity was 9.9% and the return on average assets was 1.0%.

Comparing June 30, 2004, balances to December 31, 2003, total assets increased 3% to $901,490,000. Total loans grew 2% to $588,757,000, while investment securities increased 12% to $212,088,000. Total deposits increased 2% to $676,057,000. During the same period, stockholders' equity increased 1% to $88,899,000 or 9.9% of total assets.

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 Springfield, Lee's Summit, Branson, Windsor, Collins and Osceola; and Osage Valley Bank of Warsaw.

Balance sheet information:        June 30, 2004      December 31, 2003
     Loans, net of
      allowance
        for loan losses             $588,756,612         $575,651,786
     Debt and equity
      securities                     212,088,272          188,955,832
     Total assets                    901,489,704          875,595,992
     Deposits                        676,056,814          665,261,965
     Stockholders' equity             88,898,609           87,782,744


                                     Three Months         Three Months
Statement of income                     Ended                Ended
 information:                        June 30, 2004       June 30, 2003

     Total interest income            $9,984,344           $9,552,528
     Total interest expense            3,181,269            3,253,036
     Net interest income               6,803,075            6,299,492
     Provision for loan
      losses                             210,500              235,500
     Noninterest income                1,550,814            1,465,175
     Noninterest expense               4,990,709            4,584,194
     Income taxes                      1,023,712              902,353
     Net income                        2,128,968            2,042,620


                                     Six Months           Six Months
Statement of income                     Ended                Ended
 information:                       June 30, 2004        June 30, 2003

     Total interest income           $19,746,197          $18,984,175
     Total interest expense            6,135,662            6,535,511
     Net interest income              13,610,535           12,448,664
     Provision for loan
      losses                             446,000              471,000
     Noninterest income                2,997,469            3,437,178
     Noninterest expense               9,662,972            9,084,534
     Income taxes                      2,076,265            1,932,451
     Net income                        4,422,767            4,397,857

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.