Bank of Evansville


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July 27, 2004
For Immediate Release

For: Bank of Evansville, N.A. Contact: Thomas L. Austerman
Stephen C. Byelick, Jr.
Michael S. Sutton
(812) 962-2265

Bank of Evansville's Revenues, Assets, and Earnings Per Share Surge

Net Income Up 107 Percent
Assets Increase 35 Percent
Diluted Earnings Per Share Increase to 18 Cents Per Share


Evansville, Indiana, July 27, 2004 - Bank of Evansville, N. A. (OTCBB: BEVN) announced today net income for the second quarter, compared to the same quarter a year ago, was up $78,445 or 96 percent. Net income increased $144,902 or 107 percent up to $280,819, compared to net income of $135,917 reported for the first six months of 2003. On a diluted basis, earnings per share for the second quarter of 2004 were $0.10 on average shares outstanding of 1,547,777, compared to $0.06 per share on 1,344,561 average shares outstanding for the same period in 2003. Year-to-date diluted earnings per share for the first six months of 2004 were $0.18 per share on 1,537,293 average shares outstanding, compared to $0.11 per share on 1,258,056 average shares outstanding reported for the first six months of 2003.

Thomas L. Austerman, President and Chief Executive Officer, commented, "The financial results we are reporting for the second quarter and first half of 2004 are due primarily to the growing number of clients we have been able to develop and the effort our professionals make on a daily basis." He added, "Our primary service focus continues to be helping people and businesses in the Evansville area grow and prosper by providing superior banking services at competitive prices with the sense of importance and urgency our clients deserve."

Stephen C. Byelick, Jr., the Bank's Chief Financial Officer reported, "As of June 30, 2004, the Bank's assets were $147,489,320, an increase of $18,536,567 or 14 percent, compared to December 31, 2003. Assets were up $38,370,844 or 35 percent, compared to the period ending June 30, 2003." Byelick continued, "Net loans after the allowance for loan losses increased $30,772,002 or 37 percent, compared to the same period a year earlier. Deposits grew $35,166,392, compared to the same date a year earlier, representing a 37 percent increase."

Mr. Byelick also pointed out, "Of special note is the fact that we were able to substantially increase the Bank's net earnings while adhering to the original plan to provide a reserve for loan losses at approximately 1.50 percent of total loans. The allowance for loan losses increased $470,000 from $1,275,000 to $1,745,000 during the previous twelve-month period. At the same time, our asset quality and low level of losses continues to be very good when compared to our peers and other banks with similar business goals."

Bank of Evansville is a full service, nationally chartered bank that opened on July 2, 2001, to provide community banking for businesses and consumers in Evansville and Southwestern Indiana and trades under the OTCBB symbol: BEVN. Shares traded at $13.25 per share at the close of business on June 30, 2004.

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This news release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Act of 1995. Such statements are based on management's current expectations and are subject to a number of risk factors and uncertainties which could cause actual results to differ materially from those described in the forward-looking statements. A partial list of these risk factors and uncertainties is contained in the Bank's Registration Statement on Form SB2 and the Bank's Annual Report on Form 10K-SB for the year ended December 31, 2003, which are on file with the Office of the Comptroller of the Currency.