EXJF Exchange National Bancshares (MM)

Exchange National Bancshares of Jefferson City, Mo. (NASDAQ: EXJF), a financial services company, announced today third quarter earnings of $0.68 per diluted share, up 8% from diluted earnings per share of $0.63 a year ago. Net income for the three months ended September 30, 2006, of $2,858,000 increased $207,000, or 8%, when compared to the third quarter of 2005. For the nine months ended September 30, 2006, Exchange National Bancshares earned $2.02 per diluted share, up 17% from diluted earnings per share of $1.72 a year ago. Net income for the nine months ended September 30, 2006, of $8,480,000 increased $1,246,000, or 17%, when compared to the first nine months of 2005. Net interest income increased $569,000, or 6%, for the third quarter of 2006 versus the same quarter in 2005. This increase resulted from improvement in our net interest margin. The net interest margin on a tax equivalent basis increased to 3.83% during the third quarter compared to 3.53% for the same quarter of 2005. The third quarter margin was slightly lower than the 3.90% reported in the second quarter of 2006 and consistent with the first quarter 2006 margin. In commenting on earnings performance, Chairman & CEO James E. Smith said, �Financial results for the year continue to be strong. Increases over last year are attributed in large part to both a higher net interest margin and an increasing volume of net earnings assets. Through September 30, 2006, the net interest margin increased to 3.85% compared to 3.41% for the same period in 2005. Additionally, average interest-earning assets increased 6% to $1.033 billion.� For the nine months ended September 30, 2006, return on average equity was 11.37% and return on average assets was 0.99% compared to 10.29% and 0.90% respectively for the same period of 2005. Comparing September 30, 2006, balances to December 31, 2005, total assets increased 2.0% to $1,148,516,000. Total loans grew 0.9% to $820,550,000, while investment securities increased 3.3% to $185,610,000. Total deposits increased 1.2% to $891,736,000. During the same period, stockholders� equity increased 6.5% to $103,008,000 or 9.0% 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. FINANCIAL SUMMARY (unaudited) � Balance sheet information: Sept. 30, 2006 Dec. 31, 2005 Loans, net of allowance for loan losses $811,168,806� $804,450,102� Debt and equity securities 185,610,240� 179,691,826� Total assets 1,148,515,665� 1,126,470,476� Deposits 891,736,431� 881,455,206� Stockholders' equity 103,007,785� 96,732,865� � Three Months Ended Sept. 30, 2006 Three Months Ended Sept. 30, 2005 Statement of income information: Total interest income $18,314,465� $15,862,683� Total interest expense 8,589,462� 6,706,637� Net interest income 9,725,003� 9,156,046� Provision for loan losses 300,000� 260,500� Noninterest income 2,216,573� 2,011,187� Noninterest expense 7,481,919� 7,068,755� Income taxes 1,301,172� 1,186,307� Net income 2,858,485� 2,651,671� � Nine Months Ended Sept. 30, 2006 Nine Months Ended Sept. 30, 2005 Statement of income information: Total interest income $53,037,152� $41,277,324� Total interest expense 24,019,054� 16,958,010� Net interest income 29,018,098� 24,319,314� Provision for loan losses 928,000� 733,667� Noninterest income 6,491,664� 5,139,722� Noninterest expense 22,250,978� 18,304,870� Income taxes 3,850,507� 3,186,411� Net income 8,480,277� 7,234,088� � Financial Ratios: Sept. 30, 2006 Sept. 30, 2005 Return on Average Assets 0.99% 0.90% Return on Average Equity 11.37% 10.29% Net Interest Margin 3.85% 3.41% Nonperforming Loans/Total Loans 0.81% 0.85% Market Value per Share 30.40� 28.35� Exchange National Bancshares of Jefferson City, Mo. (NASDAQ: EXJF), a financial services company, announced today third quarter earnings of $0.68 per diluted share, up 8% from diluted earnings per share of $0.63 a year ago. Net income for the three months ended September 30, 2006, of $2,858,000 increased $207,000, or 8%, when compared to the third quarter of 2005. For the nine months ended September 30, 2006, Exchange National Bancshares earned $2.02 per diluted share, up 17% from diluted earnings per share of $1.72 a year ago. Net income for the nine months ended September 30, 2006, of $8,480,000 increased $1,246,000, or 17%, when compared to the first nine months of 2005. Net interest income increased $569,000, or 6%, for the third quarter of 2006 versus the same quarter in 2005. This increase resulted from improvement in our net interest margin. The net interest margin on a tax equivalent basis increased to 3.83% during the third quarter compared to 3.53% for the same quarter of 2005. The third quarter margin was slightly lower than the 3.90% reported in the second quarter of 2006 and consistent with the first quarter 2006 margin. In commenting on earnings performance, Chairman & CEO James E. Smith said, "Financial results for the year continue to be strong. Increases over last year are attributed in large part to both a higher net interest margin and an increasing volume of net earnings assets. Through September 30, 2006, the net interest margin increased to 3.85% compared to 3.41% for the same period in 2005. Additionally, average interest-earning assets increased 6% to $1.033 billion." For the nine months ended September 30, 2006, return on average equity was 11.37% and return on average assets was 0.99% compared to 10.29% and 0.90% respectively for the same period of 2005. Comparing September 30, 2006, balances to December 31, 2005, total assets increased 2.0% to $1,148,516,000. Total loans grew 0.9% to $820,550,000, while investment securities increased 3.3% to $185,610,000. Total deposits increased 1.2% to $891,736,000. During the same period, stockholders' equity increased 6.5% to $103,008,000 or 9.0% 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: Sept. 30, 2006 Dec. 31, 2005 Loans, net of allowance for loan losses $811,168,806 $804,450,102 Debt and equity securities 185,610,240 179,691,826 Total assets 1,148,515,665 1,126,470,476 Deposits 891,736,431 881,455,206 Stockholders' equity 103,007,785 96,732,865 Three Months Ended Three Months Ended Statement of income information: Sept. 30, 2006 Sept. 30, 2005 Total interest income $18,314,465 $15,862,683 Total interest expense 8,589,462 6,706,637 Net interest income 9,725,003 9,156,046 Provision for loan losses 300,000 260,500 Noninterest income 2,216,573 2,011,187 Noninterest expense 7,481,919 7,068,755 Income taxes 1,301,172 1,186,307 Net income 2,858,485 2,651,671 Nine Months Ended Nine Months Ended Statement of income information: Sept. 30, 2006 Sept. 30, 2005 Total interest income $53,037,152 $41,277,324 Total interest expense 24,019,054 16,958,010 Net interest income 29,018,098 24,319,314 Provision for loan losses 928,000 733,667 Noninterest income 6,491,664 5,139,722 Noninterest expense 22,250,978 18,304,870 Income taxes 3,850,507 3,186,411 Net income 8,480,277 7,234,088 Financial Ratios: Sept. 30, 2006 Sept. 30, 2005 Return on Average Assets 0.99% 0.90% Return on Average Equity 11.37% 10.29% Net Interest Margin 3.85% 3.41% Nonperforming Loans/Total Loans 0.81% 0.85% Market Value per Share 30.40 28.35 *T