Bank of Evansville - Apple to Manage Remote Services at Bank of Evansville

Bank of Evansville's Assets, Revenues and Capital Surge

Assets Increase 35% to $109,118,476
Net Income up $230,739
Capital up 43%

Evansville, IN - July 22, 2003 - Bank of Evansville, N. A. (OTCBB: BEVN)
posted its eighth consecutive quarter of financial growth and earnings improvement driven by the continued growth of earning assets, strong increases in noninterest income, and prudent expense control according to Thomas L. Austerman, President and Chief Executive Officer.

Austerman said, "The improved financial results we are pleased to report are due entirely to: a) the growing list of successful local clients that have come to do business with us; b) our exceptional team of professional bankers and their commitment to excellence; c) the tireless dedication of an outstanding group of directors; and, d) the honest, hardworking people of Evansville who we are privileged to serve."

Austerman added, "It is an extremely rewarding opportunity to be able to be a part of a locally owned community bank. Our primary service mission is to help people and businesses in Evansville grow and prosper by providing superior banking services at competitive prices with a sense of importance and urgency."

Stephen C. Byelick, Jr., Chief Financial Officer, reported, "For the six month period ending June 30, 2003, assets were $109,118,476, an increase of $28,280,323 or 35 percent, compared to June 30, 2002." He went on to say, "Net loans after reserves for loan losses increased $19,592,945, or 31 percent for the same period, and deposits grew $22,689,600, or 32 percent compared to the same date a year earlier." He added, "Due to the completion of a successful 'Shareholder Rights Offering' as well as 12 months of positive earnings, the Bank's equity increased from $9,167,765 on June 30, 2002, to $13,142,927, an increase of $3,975,162 or 43 percent. Our capital ratio on June 30, 2003, was a healthy 12 percent, so we continue to be classified as a well capitalized bank."

In addition, Byelick reported, "Gross revenues for the first six months of 2003 were $1,615,210, compared to $965,035 for the first six months of 2002. He continued, "This increase of $650,175 represents an increase of some 67 percent in gross revenues. Net Interest Income after provision for losses was up $395,059 or 45 percent, compared to the same period in 2002. Noninterest income, driven primarily by an increase in single-family mortgage originations and a one-time lease termination gain, improved $255,267 or 327 percent for the same period. As a new bank experiencing rapid growth, overhead expenses are expected to increase sharply. Having said this, Bank of Evansville's noninterest expenses for the same reporting period were up only 40 percent. Net income increased $230,739 for a net profit of $135,917, compared to the net loss of $94,822 the Bank reported for the first six months of 2002. Net income for the first six months of 2003 was 11 cents a share."

Michael S. Sutton, Executive Vice President and Chief Lending Officer, pointed out, "We were able to substantially increase our net income while adhering to our plan to reserve for loan losses at 1.50 percent of total loans until it is prudent to do otherwise." He added, "We are especially pleased to report that, as of June 30, 2003, we have not incurred any loan losses and do not have any loans 30 days or more past due." He went on to say, "We have been fortunate to be able to add Margy Schnakenburg and Rob Apple to our business banking group and Diana Couch to our mortgage banking group. We believe these talented people will help us continue to experience good, high quality loan and deposit growth."

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.

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, 2002, which are on file with the Office of the Comptroller of the Currency.