Assets at year-end reached $626,713,639, representing an increase of 13.6% over last year. Earnings were off 6.0% to $6,032,261, the result of a greatly increased loan loss provision totaling $2,105,000. This increase was necessitated by one large credit loss of $1,550,000. We do not expect a recurrence of this magnitude during the coming year or at any time thereafter.

All of us associated with Jefferson Bank were saddened by the sudden death of Director Wayne L. Millsap on September 9, 2000. Wayne was a friend and advisor to Jefferson Bank for over 35 years. Our prayers and condolences to his family. Taking his place on the bank board is Justin A. Williamson, III, president of Midwest Systems and River Roads Distributing Company.

Bank growth continued during 2000, and deposits have increased at all locations, especially Concord Village. Loan demand spurred by lower interest rates, remains moderate to strong. Most of our growth, however, has been fostered by an aggresive solicitation program and is aided by continuing bank consolidation. Over the past year, Bank of America took over Nations Bank, Mercantile was merged into Firstar, and Jefferson Savings and Centennial Bank sold out. It will come as no surprise to learn of the sale and absorption of other financial institutions during the coming year. Under these circumstances we believe that this is an appropriate time for Jefferson to actively pursue the opportunities that continuing bank consolidations will create.

Jefferson is not the biggest bank in the metropolitan area but, like Avis, "We try harder," and you are cordially invited to sample our special blend of service. We tailor loans for every purpose... and when you call, a real person will answer the phone.

On behalf of our employees and directors, it is my pleasure to extend to our customers our thanks for your friendship and business.

Sincerely,

Michael J. Ross,
Chairman of the Board