Bank of Evansville


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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 POST FOURTH QUARTER
AND YEAR-TO-DATE PROFIT

Assets Rise to $97 Million at Eighteen Month Mark
Fourth Quarter and Year-to-Date Growth Continues at Rapid Pace
Bank Moves Eastside Banking Center to 4424 Building

Evansville, Indiana, February 25, 2003 - Bank of Evansville, N.A. (OTCBB: BEVN) posted its third consecutive quarterly profit driven by continued growth in earning assets during the fourth quarter, according to Thomas L. Austerman, President and Chief Executive Officer.

Austerman said, "The credit for our Bank's success belongs to the strong client base we have had the privilege to work with over the past eighteen months, the Board of Directors and our great staff. It has been very gratifying to see how everyone has contributed to our growth and profitability. The Bank of Evansville is dedicated to the concept of exceeding client expectations and serving the diverse financial needs of our community."

For the fourth quarter ending December 31, 2002, the total assets were $96,981,263, an increase of $10,163,738 or 11.71 percent for the quarter. Loans increased $4,210,915, or 5.88 percent during the same period. Deposits increased 13.07 percent, up $10,072,554 as of December 31, 2002.

The fourth quarter 2002 profit of $112,510 compared to the fourth quarter of 2001 loss of $368,266 represents a $480,776 improvement in quarter-to-quarter net earnings. Total assets as of December 31, 2002, were up $38,454,624 or 65.62 percent. Gross loans increased 53.86 percent to $75,879,890 as of December 31, 2002, from $49,317,438 on the same date a year earlier. Deposits were up $37,905,386 or 76.99 percent compared to the previous year ending totals.

Net interest income totaled $2,574,570 for the year. Non-interest income was $264,409 and non-interest expenses were $2,252,973 for the same period. Net income for the year was $118,509. The fourth quarter net profit was $112,510 compared to the $100,821 earned during the third quarter of 2002, an increase of 11.59 percent. Earnings per share ended the year at ten cents per share.

Stephen C. Byelick, Jr., Chief Financial Officer, said, "We benchmark our performance against other de novo banks chartered in 2001. Year-end numbers are not available yet, but third quarter 2002 results indicate we operated consistently in the top 25 percentile of our class in growth and earnings."

Michael S. Sutton, Executive Vice President and Chief Lending Officer, pointed out, "We were able to achieve profitability while, at the same time build our reserve for loan losses to $1,147,000, providing $407,500 to the reserve during 2002." Sutton added, "Our reserves, as a percentage of loans, stood at 1.51 percent as of December 31, 2002. We have not incurred any losses to-date, and we currently do not have any loans 30 days or more past due."

The Bank initiated a "Shareholder Rights Stock Offering" on February 6, 2003, to support and sustain the anticipated growth of the Bank. Up to 500,000 shares are being offered to shareholders who owned Bank of Evansville stock as of January 27, 2003. Each share owned as of the issue date entitles the holder of record to purchase an additional 0.42966 shares at a price of $10.75 per share. Shareholders have until March 31, 2003, to exercise their rights. Shareholders may declare a desire to purchase additional rights subject to their availability. Should shareholders have questions about the rights offering or require assistance in completing the documents, they should contact Stephen Byelick or Thomas Austerman at the Bank of Evansville or their Broker.

Chairman of the Board, Albert J. Umbach, Jr., said, "We thought it would be a good idea to secure additional capital at this time due to our remarkable growth over the first 18 months. We must, according to banking regulations, maintain no less than 8.00 percent Tier 1 capital for the first three years." Umbach added, "Our current capital level will allow us to grow to approximately $115,000,000 in assets. If current growth trends continue, it is possible we will meet that limit by the end of the year."

The Bank moved into its new banking center at 4424 Vogel Road on February 18, 2003. "We are very pleased with the initial response from our clients and the community regarding our new headquarters. We are especially delighted with the fact that we were able to purchase and renovate the 4424 Building and three acres at a net cost significantly less than what it would have cost to buy the land and construct the building originally planned on Burkhardt Rd." Mr. Austerman said. He added, "Based on the most recent estimates, we will save in excess of $85,000 in annual occupancy expense when we compare it to the original Burkhardt Rd. projection."

The Bank will initially occupy approximately 11,670 square feet on the first and second floors. All the Bank's client service areas, including the executive offices, are easily accessible on the first floor. The bank's boardroom and other meeting areas are on the second floor. The floor plan was designed for maximum client service, convenience, and confidentiality. Austerman concluded, "We are also pleased with the additional advantage of having ample space to grow at one of the best known locations in Evansville."

Bank of Evansville, N.A. is a nationally chartered commercial bank that opened its doors for business on July 2, 2001. The Bank's common stock now trades over the counter (OTCBB) under the symbol BEVN.

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.

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