Investor Relations November 1, 2001 For Immediate Release Contact: Thomas Austerman Phone: (812) 962-2265 Bank of Evansville, N.A. Fax: (812) 962-1383 Bank of Evansville Forms Powerful Partnership with the FHL Bank of Indianapolis Evansville, IN - Bank of Evansville, N.A., recently became a stockholder/member of the Federal Home Loan Bank of Indianapolis (FHLBI), a wholesale bank that is a reliable source of low-cost funds for community financial institutions throughout Indiana and Michigan. The funds borrowed from the FHLBI can be used by the Bank of Evansville to help it meet the needs of its customers for home mortgages and small business purposes. "We are very enthusiastic about this alliance and how it will benefit the Evansville area economy," said Thomas Austerman, Bank of Evansville President. "The Federal Home Loan Bank of Indianapolis will allow Bank of Evansville to bring outside funds into Evansville through various loan products which will strengthen our banking market. The relationship will also allow us to very competitive with our larger regional competitors" The FHLBI is one of twelve regional banks of the Federal Home Loan Bank System, which is the second largest financial organization in the United States. Congress created the System in 1932 to support the funding needs of chartered financial institutions such as commercial banks, savings institutions and credit unions. The System is a privately funded government-sponsored enterprise that receives no Congressional appropriations. The FHLBI accomplishes its mission of supporting community lending through partnerships with over 400 retail lenders, such as Bank of Evansville. As of September 30, 2001, the FHLBI had over $35 billion in assets, of which almost $26 billion were outstanding loans to retail financial institutions. Bank of Evansville, which serves Evansville and the surrounding area, had $48.0 million in assets as of September 30, 2001. Its new relationship with the FHLBI will expand its ability to provide competitive loan products to the community through direct loans as well as special programs that target funding for low-income housing and neighborhood economic development. A first-time homebuyer program that is available from the FHLBI, for instance, enables qualified home purchasers to receive matching grants to help them finance a new mortgage.