EXJF Exchange National Bancshares (MM)

Exchange National Bancshares (NASDAQ: EXJF) of Jefferson City, MO, a financial services company, announced today first quarter earnings of $0.64 per diluted share, up 21% from diluted earnings per share of $0.53 a year ago. Net income for the 3 months ended March 30, 2006, of $2,689,000 increased $451,000 when compared to the first quarter of 2005. 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. In commenting on earnings performance, Chairman & CEO James E. Smith said: "We continue to be pleased with our financial performance. First quarter earnings growth compared to the same period last year results from an increase in average interest-earnings assets as well as an increase in our net interest margin. Average interest earning assets increased 17% from the first quarter of 2005. Additionally, our net interest margin increased to 3.83% compared to 3.34% for the same period of 2005." For the quarter, annualized return on average equity was 11.14% and the annualized return on average assets was 0.95% compared to 9.79% and 0.95%, respectively for 2005. Comparing March 31, 2006, balances to December 31, 2005, total assets increased 3.0% to $1,160,064,000. Loans, net of allowance for loan losses, grew 1.6% to $817,309,000, while investment securities increased 11.6% to $200,595,000. Total deposits decreased 0.5% to $877,466,000. During the same period, stockholders' equity increased 1.6% to $98,312,000 or 8.5% of total assets. 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) ----------- Balance sheet information: March 31, 2006 December 31, 2005 Loans, net of allowance for loan losses $817,308,568 $804,450,102 Debt and equity securities 200,595,384 179,691,826 Total assets 1,160,064,275 1,126,470,476 Deposits 877,465,872 881,455,206 Stockholders' equity 98,312,311 96,732,865 Three Months Three Months Ended Ended Statement of income information: March 31, 2006 March 31, 2005 Total interest income $16,792,866 $11,527,378 Total interest expense 7,334,320 4,440,267 Net interest income 9,458,546 7,087,111 Provision for loan losses 317,500 235,500 Noninterest income 2,025,911 1,331,344 Noninterest expense 7,311,592 4,975,258 Income taxes 1,166,758 970,083 Net income 2,688,607 2,237,614 Earnings Per Share: Basic: $0.64 $0.54 Diluted: $0.64 $0.53 *T 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.