TO OUR GOOD FRIENDS,

Last year on this page I suggested that the malaise of an anemic economy might be resolved with a quick and successful resolution of the Iraq situation, along with real tax relief. We're halfway there. The tax load has been lightened for all Americans including significant commutation of the dividend penalty, but the dust has not yet settled in the Middle East.

On a local note, we look forward to a groundbreaking this month (February) for the construction of our new 7500 sq. ft. facility on Highway K in O'Fallon, MO. This new branch will augment the solid growth Jefferson experienced in 2003. Figures reflecting that growth can be seen herein.

In the past I have commented on the opportunities we are presented with as competitors "sell out". We are now witnessing a merging of the merged, and the resultant dislocation of client relationships magnifies the opportunities for a bank like Jefferson. The absentee management and control offered by big banks simply does not measure up to the continuity of service available at Jefferson. For that reason, we are confident of growth for 2004 – irrespective of the economy.

Sincerely,

Michael J. Ross,
Chairman of the Board