Exchange National Bancshares Announces 1st Quarter Earnings of $0.55 Per Diluted Share

  
    
  
  
    
      Exchange National Bancshares of Jefferson City, Mo. (NASDAQ: EXJF), a 
      financial services company, announced today first quarter earnings of 
      $0.55 per diluted share, down 14% from diluted earnings per share of 
      $0.64 a year ago.
    
    
      Net income for the three months ended March 31, 2007 of $2,307,000 
      decreased $382,000 when compared to the first quarter of 2006.
    
    
      For the quarter, the annualized return on average equity was 8.98% and 
      the annualized return on average assets was 0.83% compared to 11.14% and 
      0.95%, respectively, for 2006.
    
    
      In commenting on earnings performance, Chairman and CEO James E. Smith 
      said, “Our decrease in net income is the 
      result of both an 8 basis point drop in our net interest margin and a 
      slight decline in our level of earning assets. Our yield on earning 
      assets increased 59 basis points; however the increase was more than 
      offset by the rising cost of interest bearing liabilities. The net 
      interest margin was affected by a combination of upward pressure on 
      deposit rates in our marketplace and competition on loan rates. These 
      issues are affecting the banking industry as a whole. Average interest 
      earning assets decreased 1.4% from the first quarter of 2006 to 
      $1,015,528,000. Our net interest margin for the first quarter of 2007 
      was 3.75% compared to 3.83% for the same period of 2006.”
    
    
      Mr. Smith further commented, “Despite our 
      first quarter 2007 financial performance, significant efforts are 
      underway this year to increase our Company’s 
      profitability. We are proceeding well with plans to merge all of our 
      subsidiary banks to a single platform under the Hawthorn Bank brand. 
      I am very pleased with our entire staff’s 
      efforts in making our company unique in the crowded world of banking.”
    
    
      Comparing March 31, 2007 balances to December 31, 2006, total assets 
      decreased 0.2% to $1,140,552,000. Loans, net of allowance for loan 
      losses, decreased 0.3% to $801,125,000, while investment securities 
      increased 0.7% to $191,092,000. Total deposits increased 0.4% to 
      $903,495,000. During the same period, stockholders’ 
      equity increased 1.6% to $106,669,000 or 9.4% of total assets.
    
    
      About Exchange National Bancshares
    
    
      Exchange National Bancshares, Inc., a multi-bank holding company 
      headquartered in Lee’s Summit, Missouri, is 
      the parent company of The Exchange National Bank of Jefferson City with 
      locations in California, Tipton and St. Robert; Hawthorn Bank of Clinton 
      with locations in Springfield, Lee's Summit, Branson, Windsor, Collins, 
      Osceola and Warsaw; and Bank 10 with locations in Belton, Drexel, 
      Harrisonville, Independence and Raymore.
    
    
      
        
          
            FINANCIAL SUMMARY
          
          
            (unaudited)
          
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Balance sheet information:
        
        
        
        
          March 31, 2007
        
        
        
        
          December 31, 2006
        
      
      
        
        
        
          
            Loans, net of allowance for loan losses
          
        
        
        
        
          $801,125,362 
        
        
        
        
          $803,297,381 
        
      
      
        
        
        
          Debt and equity securities
        
        
        
        
          191,091,954 
        
        
        
        
          189,773,310 
        
      
      
        
        
        
          Total assets
        
        
        
        
        
        
          1,140,551,941 
        
        
        
        
          1,142,711,897 
        
      
      
        
        
        
          Deposits
        
        
        
        
        
        
          903,495,193 
        
        
        
        
          899,864,734 
        
      
      
        
        
        
          Stockholders' equity
        
        
        
        
          106,668,743 
        
        
        
        
          104,944,590 
        
      
      
        
           
        
      
      
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
          Three Months
        
        
        
        
          Three Months
        
      
      
        
          Statement of income information:
        
        
        
        
          Ended March 31, 2007
        
        
        
        
          Ended March 31, 2006
        
      
      
        
        
        
          Total interest income
        
        
        
        
          $18,030,683 
        
        
        
        
          $16,792,866 
        
      
      
        
        
        
          Total interest expense
        
        
        
        
          8,894,983 
        
        
        
        
          7,334,320 
        
      
      
        
        
        
          Net interest income
        
        
        
        
          9,135,700 
        
        
        
        
          9,458,546 
        
      
      
        
        
        
          Provision for loan losses
        
        
        
        
          225,000 
        
        
        
        
          317,500 
        
      
      
        
        
        
          Noninterest income
        
        
        
        
          2,523,388 
        
        
        
        
          2,025,911 
        
      
      
        
        
        
          Noninterest expense
        
        
        
        
          8,133,800 
        
        
        
        
          7,311,592 
        
      
      
        
        
        
          Income before income taxes
        
        
        
        
        
        
          3,300,288 
        
        
        
        
          3,855,365 
        
      
      
        
        
        
          Income taxes
        
        
        
        
        
        
          993,621 
        
        
        
        
          1,166,758 
        
      
      
        
        
        
          Net income
        
        
        
        
          2,306,667 
        
        
        
        
          2,688,607 
        
      
      
        
        
        
          Earnings Per Share:
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
          Basic:
        
        
        
        
        
        
          $0.55 
        
        
        
        
          $0.64 
        
      
      
        
        
        
        
        
          Diluted:
        
        
        
        
        
        
          $0.55 
        
        
        
        
          $0.64 
        
      
    
    
      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.