Bank of Evansville - Investor Relations - Bank of Evansville, N.A. Continues to Exceed Expectations

BANK OF EVANSVILLE, N.A. POSTS Q3 and YEAR-TO-DATE PROFIT
Solid increases in revenue and expense control drive earnings into black Year-to Date Profits exceed $100 Thousand for the third quarter ending September 30, 2002 Chairman Announces Intent to Raise Additional Capital to Support Growth

Evansville, Indiana, October 23, 2002 - Bank of Evansville, N.A. (OTCBB: BEVN) posted its second consecutive quarterly profit driven by across the board growth in revenues and control of expenses, Thomas L. Austerman, President and Chief Executive Officer reported today.

"We are delighted to report a significant increase in profits from the previous quarter and positive earnings for the first nine months of 2002. It is not at all unusual for de novo banks to take as much as three years to achieve positive year-to-date earnings." Austerman said. "Our performance for the third quarter of 2002 and our fifth quarter of operations exceeded management's expectations. Based on our first 15 months in business, it is clear that we have been able to successfully meet the many needs of small to mid-size businesses in the Evansville market," Austerman said.

Stephen C. Byelick, Jr., Chief Financial Officer, reported, "The net profit for the third quarter of 2002 was $100,822, included a $75,000 provision for loan losses, and represented a 774 percent increase over the $11,532 profit earned during the second quarter. The net profit for the first nine months of 2002 was $5,999 or $0.01 per share. As of September 30, 2002, shareholders equity was $9,303,680, or $7.99 per share based on 1,163,708 shares outstanding.

Mr. Byelick continued his remarks by saying, "Revenue results were up across the board. Net interest income was $681,000, up 8.4 percent from the previous quarter, and third quarter non-interest income rose 75.7 percent to $91,157 from $51,879 in the quarter ending June 30, 2002. A primary factor in our non-interest income growth has been an increase in fees generated from single-family residential mortgage originations."

Michael Sutton, Executive Vice President and Chief Lending Officer added, "For the third quarter ending September 30, 2002, assets rose to $86.9 million, up from the $80.9 million at June 30, 2002. Loans outstanding exceeded $71.7 million at the end of the third quarter, for an increase of 10.1 percent over total loans outstanding of $65.1 million on June 30, 2002. Deposits rose 8.0 percent during the third quarter to $77.1 million, compared to $71.3 million at the end of the previous quarter."

Albert J. Umbach, Jr., Chairman of the Board of Directors, said, "We are optimistic about the local economy and the Bank's ability to profitably compete in the greater Evansville market. With strong demand for our competitive products and excellent services, we expect annualized double-digit growth to continue through 2003. As a result of this anticipated growth, coupled with our desire to take advantage of an opportunity to increase market share, we have decided to pursue raising additional capital through a shareholders' rights offering. It is anticipated that the offering will seek to raise approximately Five Million Dollars ($5,000,000) and be completed no later than the end of the first quarter of next year." Umbach added, "After considering several alternatives, it appears that the fairest and most economical way to raise additional capital is to give existing shareholders the opportunity to maintain or increase their investment in the Bank of Evansville rather than offering stock to the broader market."

Bank of Evansville is a full service, nationally chartered bank that opened on July 2, 2001, to provide real community banking for businesses and consumers in Evansville and Southwestern Indiana. The Bank completed an initial public offering of 1,163,708 shares in June 2001.

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. These risk factors and uncertainties are contained in the Bank's Registration Statement on Form SB-2 and the Bank's Annual Report on Form 10K-SB for year ended December 31, 2001, which are on file with the Office of the Comptroller of the Currency.