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SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





Form 10-K


|           |  |                                                                                             
|---------- |  | --------------------------------------------------------------------------------------------
|(Mark One) |  |                                                                                             
|þ          |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934    
|           |  | For the fiscal year ended December 31, 2004                                                 
|           |  | or                                                                                          
|o          |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
|           |  | (No Fee Required)                                                                           

Commission file number 000-32915





EvergreenBancorp, Inc.


(Exact name of Registrant as specified in its Charter)


|                                                                                          |  |                                            
|----------------------------------------------------------------------------------------- |  | -------------------------------------------
|Washington                                                                                |  | 91-2097262                                 
|(State or Other Jurisdiction of
    Incorporation or Organization)                        |  | (I.R.S. Employer
    Identification Number)
|                                                                                         
|301 Eastlake Avenue East,
    Seattle, Washington(Address of Principal Executive Offices) |  | 98109(ZIP Code)                            

Registrants telephone number, including area code:


(206) 628-4250


Securities registered pursuant to Section 12(b) of the
Act:


None


Securities registered pursuant to Section 12(g) of the
Act:


Common Stock, no par value per share


þ o


þ


o þ






DOCUMENTS INCORPORATED BY REFERENCE












---










EVERGREENBANCORP, INC.


FORM 10-K


ANNUAL REPORT


TABLE OF CONTENTS


|             |  |                                                                                                                       |    |      |    | 
|------------ |  | --------------------------------------------------------------------------------------------------------------------- | -- | ---- | -- | 
|             |  |                                                                                                                       |    | Page |   
|             |  |                                                                                                                       |    |      |   
|             |  |                                                                                                                       |    |      |    | 
|PART I      
|Item 1.      |  | Business                                                                                                              |    |      | 3  | 
|Item 2.      |  | Properties                                                                                                            |    |      | 9  | 
|Item 3.      |  | Legal Proceedings                                                                                                     |    |      | 10 | 
|Item 4.      |  | Submission of Matters to a Vote of Security
    Holders                                                               |    |      | 10 | 
|             |  |                                                                                                                       |    |      |    | 
|PART II     
|Item 5.      |  | Market for Registrants Common Equity,
    Related Shareholder Matters and Issuer Purchases of  Equity
    Securities |    |      | 10 | 
|Item 6.      |  | Selected Consolidated Financial Data                                                                                  |    |      | 12 | 
|Item 7.      |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations                             |    |      | 12 | 
|Item 7A.     |  | Quantitative and Qualitative Disclosures
    About Market Risk                                                        |    |      | 30 | 
|Item 8.      |  | Financial Statements and Supplementary
    Data                                                                       |    |      | 30 | 
|Item 9.      |  | Changes in and Disagreements with
    Accountants on Accounting and Financial Disclosure                              |    |      | 56 | 
|Item 9A.     |  | Controls and Procedures                                                                                               |    |      | 56 | 
|Item 9B.     |  | Other Information                                                                                                     |    |      | 56 | 
|             |  |                                                                                                                       |    |      |    | 
|PART III    
|Item 10.     |  | Directors and Executive Officers of the
    Registrant                                                                |    |      | 56 | 
|Item 11.     |  | Executive Compensation                                                                                                |    |      | 57 | 
|Item 12.     |  | Security Ownership of Certain Beneficial
    Owners and Management                                                    |    |      | 57 | 
|Item 13.     |  | Certain Relationships and Related
    Transactions                                                                    |    |      | 57 | 
|Item 14.     |  | Principal Accountant Fees and Services                                                                                |    |      | 57 | 
|             |  |                                                                                                                       |    |      |    | 
|PART IV     
|Item 15.     |  | Exhibits and Financial Statement
    Schedules                                                                        |    |      | 57 | 
|SIGNATURES   |  |                                                                                                                       | 59 |     
|EXHIBIT 10.7
|EXHIBIT 21  
|EXHIBIT 23  
|EXHIBIT 31.1
|EXHIBIT 31.2
|EXHIBIT 32.1
|EXHIBIT 32.2



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PART I


Forward-Looking Information Statement









|        |         
|------- | --------
|Item 1. | Business

EvergreenBancorp, Inc.




,




3



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EvergreenBank








| |       
| | ------
| | Market







| |            
| | -----------
| | Competition





4



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| |          
| | ---------
| | Employees



EvergreenBancorp Capital Trust I






SUPERVISION AND REGULATION


General




Federal Bank Holding Company Regulation


General.


Holding Company Bank Ownership.


5



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Holding Company Control of Nonbanks.


Transactions with Affiliates.


Tying Arrangements.


Support of Subsidiary Banks.


State Law Restrictions.


Federal and State Regulation of EvergreenBank


General.


Community Reinvestment.


Insider Credit Transactions.


6



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Regulation of Management.


Safety and Soundness Standards.


Interstate Banking And Branching








Deposit Insurance






Dividends




7



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Capital Adequacy


Regulatory Capital Guidelines.


Tier 1 and Tier 2 Capital.


Risk-based Capital Ratios.


Leverage Ratio.


Prompt Corrective Action.


Corporate Governance and Accounting Legislation


Sarbanes-Oxley Act of 2002.






8



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Anti-terrorism Legislation


USA Patriot Act of 2001.


Financial Services Modernization


Gramm-Leach-Bliley Act of 1999.






Effects Of Government Monetary Policy









|        |           
|------- | ----------
|Item 2. | Properties



9



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|        |                  
|------- | -----------------
|Item 3. | Legal Proceedings








|        |                                                    
|------- | ---------------------------------------------------
|Item 4. | Submission of Matters to a Vote of Security Holders






PART II





Item 5.     Market for
Registrants Common Equity, Related Stockholder Matters and
Issuer Purchases of Equity Securities






|               |  |          |       |  |      |  |       |     |  |  |          |  |  |      |       |  |     |  |       |  |  |  |       | 
|-------------- |  | -------- | ----- |  | ---- |  | ----- | --- |  |  | -------- |  |  | ---- | ----- |  | --- |  | ----- |  |  |  | ----- | 
|               |  | 2004     |       |  | 2003 | 
|               |  |          |       |  |      | 
|               |  | Cash     |       |  |      |  | Cash  |     |  | 
|               |  | Dividend |       |  | High |  |       | Low |  |  | Dividend |  |  | High |       |  | Low | 
|               |  |          |       |  |      |  |       |     |  |  |          |  |  |      |       |  |     | 
|First Quarter  |  |          | 0.064 |  |      |  | 14.75 |     |  |  | 13.57    |  |  |      | 0.146 |  |     |  | 11.96 |  |  |  | 11.21 | 
|Second Quarter |  |          | 0.064 |  |      |  | 14.44 |     |  |  | 13.89    |  |  |      |      |  |     |  | 11.82 |  |  |  | 11.74 | 
|Third Quarter  |  |          | 0.064 |  |      |  | 14.75 |     |  |  | 13.93    |  |  |      |      |  |     |  | 12.91 |  |  |  | 11.93 | 
|Fourth Quarter |  |          | 0.064 |  |      |  | 18.00 |     |  |  | 14.63    |  |  |      | 0.102 |  |     |  | 16.00 |  |  |  | 12.69 | 



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Equity Compensation Plan Information




|                                                       |  |                         |         |  |                      |                            |       |                               |  |  |        | 
|------------------------------------------------------ |  | ----------------------- | ------- |  | -------------------- | -------------------------- | ----- | ----------------------------- |  |  | ------ | 
|                                                       |  |                         |         |  |                      | Number of Shares Remaining |      
|                                                       |  | Number of Shares to be  |         |  | Weighted-Average     |                            |       | Available for Future Issuance | 
|                                                       |  | Issued upon Exercise of |         |  | Exercise Price of    |                            |       | under Equity Compensation     | 
|                                                       |  | Outstanding Options,    |         |  | Outstanding Options, |                            |       | Plans (Excluding Shares       | 
|                                                       |  | Warrants and Rights     |         |  | Warrants and Rights  |                            |       | Reflected in Column(a))       | 
|Plan Category                                          |  | (a)                     |         |  | (b)                  |                            |       | (c)                           | 
|                                                       |  |                         |         |  |                      |                            |       |                               | 
|Equity compensation plans approved by shareholders(1)  |  |                         | 143,580 |  |                      | $                          | 10.86 |                               |  |  | 85,482 | 
|Equity compensation plans not approved by shareholders |  |                         | N/A     |  |                      |                            | N/A   |                               |  |  | N/A    | 
|                                                       |  |                         |         |  |                      |                            |       |                               | 
|Total                                                  |  |                         | 143,580 |  |                      | $                          | 10.86 |                               |  |  | 85,482 | 
|                                                       |  |                         |         |  |                      |                            |       |                               | 






|    |                                                                                                                        
|--- | -----------------------------------------------------------------------------------------------------------------------
|(1) | Amounts have been adjusted to reflect all applicable stock
    splits and dividends paid on the Companys common stock.

11



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|        |                                     
|------- | ------------------------------------
|Item 6. | Selected Consolidated Financial Data

|                                                            |  |      |         |   |      |   |         |      |  |   |         |   |  |      |         |   |  |   |         |  
|----------------------------------------------------------- |  | ---- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | - |  | ---- | ------- | - |  | - | ------- | -
|                                                            |  | 2004 |         |   | 2003 |   |         | 2002 |  |   | 2001    |   |  | 2000 |        
|                                                            |  |      |         |   |      |   |         |      |  |   |         |   |  |      |        
|INCOME STATEMENT DATA                                       |  |      |         |   |      |   |         |      |  |   |         |   |  |      |         |   |  |   |         |  
|Net interest income                                         |  | $    | 9,102   |   |      | $ | 8,200   |      |  | $ | 8,337   |   |  | $    | 7,714   |   |  | $ | 7,169   |  
|Provision for loan losses                                   |  |      | 321     |   |      |   | 233     |      |  |   | 330     |   |  |      | 479     |   |  |   | 455     |  
|Noninterest income                                          |  |      | 1,709   |   |      |   | 1,755   |      |  |   | 1,537   |   |  |      | 1,807   |   |  |   | 1,587   |  
|Noninterest expense                                         |  |      | 8,602   |   |      |   | 8,196   |      |  |   | 7,521   |   |  |      | 7,213   |   |  |   | 6,567   |  
|Net income                                                  |  |      | 1,282   |   |      |   | 1,036   |      |  |   | 1,343   |   |  |      | 1,240   |   |  |   | 1,210   |  
|                                                            |  |      |         |   |      |   |         |      |  |   |         |   |  |      |        
|PER SHARE DATA(1)                                           |  |      |         |   |      |   |         |      |  |   |         |   |  |      |         |   |  |   |         |  
|Earnings per common share                                   |  | $    | 0.86    |   |      | $ | 0.70    |      |  | $ | 0.91    |   |  | $    | 0.82    |   |  | $ | 0.76    |  
|Diluted earnings per common share                           |  |      | 0.84    |   |      |   | 0.69    |      |  |   | 0.90    |   |  |      | 0.82    |   |  |   | 0.76    |  
|Dividends declared per common share                         |  |      | 0.256   |   |      |   | 0.247   |      |  |   | 0.114   |   |  |      | 0.106   |   |  |   | 0.097   |  
|                                                            |  |      |         |   |      |   |         |      |  |   |         |   |  |      |        
|BALANCE SHEET DATA                                          |  |      |         |   |      |   |         |      |  |   |         |   |  |      |         |   |  |   |         |  
|Total loans                                                 |  | $    | 159,656 |   |      | $ | 138,468 |      |  | $ | 121,509 |   |  | $    | 122,219 |   |  | $ | 113,058 |  
|Allowance for loan losses                                   |  |      | 1,887   |   |      |   | 1,636   |      |  |   | 1,690   |   |  |      | 1,498   |   |  |   | 1,323   |  
|Real estate owned                                           |  |      |        |   |      |   | 2,659   |      |  |   |        |   |  |      |        |   |  |   |        |  
|Total assets                                                |  |      | 209,630 |   |      |   | 194,556 |      |  |   | 169,926 |   |  |      | 156,365 |   |  |   | 151,752 |  
|Total deposits                                              |  |      | 173,801 |   |      |   | 152,683 |      |  |   | 132,174 |   |  |      | 130,344 |   |  |   | 125,425 |  
|Total long-term debt                                        |  |      | 16,067  |   |      |   | 20,381  |      |  |   | 16,783  |   |  |      | 4,005   |   |  |   | 2,000   |  
|Stockholders equity                                        |  |      | 17,485  |   |      |   | 16,583  |      |  |   | 15,960  |   |  |      | 14,738  |   |  |   | 14,577  |  
|                                                            |  |      |         |   |      |   |         |      |  |   |         |   |  |      |        
|SELECTED FINANCIAL RATIOS                                   |  |      |         |   |      |   |         |      |  |   |         |   |  |      |         |   |  |   |         |  
|Return on average assets                                    |  |      | 0.66    | % |      |   | 0.60    | %    |  |   | 0.82    | % |  |      | 0.83    | % |  |   | 0.81    | %
|Return on average equity                                    |  |      | 7.58    |   |      |   | 6.42    |      |  |   | 8.84    |   |  |      | 8.50    |   |  |   | 8.67    |  
|Dividend payout ratio                                       |  |      | 29.80   |   |      |   | 35.33   |      |  |   | 12.51   |   |  |      | 13.39   |   |  |   | 13.31   |  
|Average equity to average assets                            |  |      | 8.71    |   |      |   | 9.29    |      |  |   | 9.31    |   |  |      | 9.70    |   |  |   | 9.29    |  
|Net interest margin (tax equivalent)                        |  |      | 5.01    |   |      |   | 5.02    |      |  |   | 5.48    |   |  |      | 5.52    |   |  |   | 5.36    |  
|Allowance for loan losses to total loans at the end of year |  |      | 1.18    |   |      |   | 1.18    |      |  |   | 1.39    |   |  |      | 1.23    |   |  |   | 1.17    |  
|Nonperforming loans to total loans at the end of year(2)    |  |      | 0.14    |   |      |   | 0.46    |      |  |   | 0.66    |   |  |      | 0.95    |   |  |   | 0.49    |  
|Net loans charged off to average total loans                |  |      | 0.05    |   |      |   | 0.24    |      |  |   | 0.11    |   |  |      | 0.26    |   |  |   | 0.18    |  
|                                                            |  |      |         |   |      |   |         |      |  |   |         |   |  |      |        






|    |                                                                                                                                          
|--- | -----------------------------------------------------------------------------------------------------------------------------------------
|(1) | All per share amounts have been adjusted to reflect all
    applicable stock splits and dividends paid on the Companys
    common stock.
|   
|(2) | Nonperforming loans include nonaccrual loans, and other loans
    90 days or more past due.                                              






|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 7. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations

General




12



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Forward-Looking Statements






Critical Accounting Policies




Recently issued accounting standards.


13



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Allowance for Loan Losses.










Other Real Estate Owned.


Temporary Decline in Fair Value of Securities. The Meaning of Other-Than-Temporary
Impairment and Its Application to Certain Investments Accounting for Certain Investments in
Debt and Equity Securities Accounting for Noncurrent
Marketable Equity Securities.




14



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Overview












Results of Operations 2004 Compared to 2003




15



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Results of Operations 2003 Compared to 2002










Net Interest Income




2004 Compared to 2003








16



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2003 Compared to 2002








17



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Analysis of Average Balances, Net Interest Income, and Net
Interest Margin


|                                                                              |                          |                          |         |                |  |                  |        |         |  |          |      |        |   |        |         |        |  |   |        |       |  |  |      |      |   |  |       |     |   |  |      |      |  
|----------------------------------------------------------------------------- | ------------------------ | ------------------------ | ------- | -------------- |  | ---------------- | ------ | ------- |  | -------- | ---- | ------ | - | ------ | ------- | ------ |  | - | ------ | ----- |  |  | ---- | ---- | - |  | ----- | --- | - |  | ---- | ---- | -
|                                                                              |                          | Years Ended December 31,
|                                                                              |                          |                         
|                                                                              |                          |                          |         | 2004 Over 2003
|                                                                              |                          |                          |         |               
|                                                                              |                          |                          |         |                |  | Change in Income
|                                                                              |                          | 2004                     |         | 2003           |  | Due to          
|                                                                              |                          |                          |         |                |  |                 
|                                                                              |                          | Average                  |         |                |  | Yield/           |        | Average |  |          |      | Yield/ |   |       
|                                                                              |                          | Balance                  |         | Interest       |  | Rate             |        | Balance |  | Interest |      | Rate   |   | Volume |         | Rate  
|                                                                              |                          |                          |         |                |  |                  |        |         |  |          |      |        |   |        |         |       
|                                                                              |                          | (In thousands)          
|ASSETS                                                                        |                          |                          |         |                |  |                  |        |         |  |          |      |        |   |        |         |        |  |   |        |       |  |  |      |      |   |  |       |     |   |  |      |     
|Loans:                                                                        |                          |                          |         |                |  |                  |        |         |  |          |      |        |   |        |         |        |  |   |        |       |  |  |      |      |   |  |       |     |   |  |      |     
|                                                                              | Commercial and financial |                          | $       | 62,706         |  |                  | $      | 4,504   |  |          |      | 7.18   | % |        | $       | 53,822 |  |   | $      | 3,839 |  |  |      | 7.13 | % |  | $     | 648 |   |  | $    | 16   |  
|                                                                              | Real estate              |                          |         | 66,352         |  |                  |        | 4,456   |  |          |      | 6.72   |   |        |         | 52,809 |  |   |        | 4,037 |  |  |      | 7.64 |   |  |       | 810 |   |  |      | (392 | )
|                                                                              | Consumer and other       |                          |         | 13,170         |  |                  |        | 1,283   |  |          |      | 9.74   |   |        |         | 14,129 |  |   |        | 1,410 |  |  |      | 9.98 |   |  |       | (92 | ) |  |      | (34  | )
|                                                                              |                          |                          |         |                |  |                  |        |         |  |          |      |        |   |        |         |        |  |   |        |       |  |  |      |      |   |  |       |     |   |  |      |     
|Total loans                                                                   |                          |                          | 142,228 |                |  |                  | 10,243 |         |  |          | 7.20 |        |   |        | 120,760 |        |  |   | 9,286  |       |  |  | 7.69 |      |   |  | 1,367 |     |   |  | (409 | )   
|Federal funds sold                                                            |                          |                          | 3,564   |                |  |                  | 44     |         |  |          | 1.24 |        |   |        | 8,425   |        |  |   | 90     |       |  |  | 1.07 |      |   |  | (63   | )   |   |  | 18   |     
|Interest-bearing deposits in financial institutions                           |                          |                          | 962     |                |  |                  | 4      |         |  |          | 0.42 |        |   |        | 1,328   |        |  |   | 12     |       |  |  | 0.90 |      |   |  | (3    | )   |   |  | (5   | )   
|Investment securities                                                         |                          |                          | 35,575  |                |  |                  | 1,130  |         |  |          | 3.18 |        |   |        | 33,828  |        |  |   | 1,078  |       |  |  | 3.19 |      |   |  | 59    |     |   |  | (7   | )   
|                                                                              |                          |                          |         |                |  |                  |        |         |  |          |      |        |   |        |         |        |  |   |        |       |  |  |      |      |   |  |       |     |   |  |      |     
|Total earning assets                                                          |                          |                          | 182,329 |                |  |                  | 11,422 |         |  |          | 6.26 |        |   |        | 164,341 |        |  |   | 10,466 |       |  |  | 6.37 |      |   |  | 1,360 |     |   |  | (404 | )   
|Cash and due from banks                                                       |                          |                          | 7,500   |                |  |                  |        |         |  |          |      |        |   |        | 6,953   |        |  |   |        |       |  |  |      |      |   |  |       |     |   |  |      |     
|Premises and equipment                                                        |                          |                          | 3,402   |                |  |                  |        |         |  |          |      |        |   |        | 2,377   |        |  |   |        |       |  |  |      |      |   |  |       |     |   |  |      |     
|Other real estate owned                                                       |                          |                          | 330     |                |  |                  |        |         |  |          |      |        |   |        | 144     |        |  |   |        |       |  |  |      |      |   |  |       |     |   |  |      |     
|Accrued interest and other assets                                             |                          |                          | 2,220   |                |  |                  |        |         |  |          |      |        |   |        | 1,641   |        |  |   |        |       |  |  |      |      |   |  |       |     |   |  |      |     
|Allowance for loan losses                                                     |                          |                          | (1,677  | )              |  |                  |        |         |  |          |      |        |   |        | (1,657  | )      |  |   |        |       |  |  |      |      |   |  |       |     |   |  |      |     
|                                                                              |                          |                          |         |                |  |                  |        |         |  |          |      |        |   |        |         |        |  |   |        |       |  |  |      |      |   |  |       |     |   |  |      |     
|Total assets                                                                  |                          | $                        | 194,104 |                |  |                  |        |         |  |          |      |        |   | $      | 173,799 |        |  |   |        |       |  |  |      |      |   |  |       |     |   |  |      |     
|                                                                              |                          |                          |         |                |  |                  |        |         |  |          |      |        |   |        |         |        |  |   |        |       |  |  |      |      |   |  |       |     |   |  |      |     
|                                                                             
|LIABILITIES                                                                   |                          |                          |         |                |  |                  |        |         |  |          |      |        |   |        |         |        |  |   |        |       |  |  |      |      |   |  |       |     |   |  |      |     
|Interest-bearing deposits:                                                    |                          |                          |         |                |  |                  |        |         |  |          |      |        |   |        |         |        |  |   |        |       |  |  |      |      |   |  |       |     |   |  |      |     
|                                                                              | Demand deposits          |                          | $       | 11,133         |  |                  |        | 12      |  |          |      | 0.11   |   |        | $       | 10,208 |  |   |        | 20    |  |  |      | 0.19 |   |  |       | 2   |   |  |      | (10  | )
|                                                                              | Savings deposits         |                          |         | 49,384         |  |                  |        | 469     |  |          |      | 0.95   |   |        |         | 48,677 |  |   |        | 513   |  |  |      | 1.05 |   |  |       | 7   |   |  |      | (51  | )
|                                                                              | Time deposits            |                          |         | 48,953         |  |                  |        | 972     |  |          |      | 1.99   |   |        |         | 36,868 |  |   |        | 829   |  |  |      | 2.25 |   |  |       | 224 |   |  |      | (82  | )
|                                                                              |                          |                          |         |                |  |                  |        |         |  |          |      |        |   |        |         |        |  |   |        |       |  |  |      |      |   |  |       |     |   |  |      |     
|Total interest-bearing deposits                                               |                          |                          | 109,470 |                |  |                  | 1,453  |         |  |          | 1.33 |        |   |        | 95,753  |        |  |   | 1,362  |       |  |  | 1.42 |      |   |  | 234   |     |   |  | (143 | )   
|Federal funds purchased                                                       |                          |                          | 1,715   |                |  |                  | 14     |         |  |          | 0.83 |        |   |        | 3,054   |        |  |   | 20     |       |  |  | .65  |      |   |  | (14   | )   |   |  | 8    |     
|Federal Home Loan Bank advances                                               |                          |                          | 12,663  |                |  |                  | 541    |         |  |          | 4.27 |        |   |        | 14,313  |        |  |   | 586    |       |  |  | 4.09 |      |   |  | (71   | )   |   |  | 26   |     
|Junior subordinated debt                                                      |                          |                          | 5,000   |                |  |                  | 253    |         |  |          | 5.06 |        |   |        | 5,000   |        |  |   | 240    |       |  |  | 4.80 |      |   |  |      |     |   |  | 23   |     
|                                                                              |                          |                          |         |                |  |                  |        |         |  |          |      |        |   |        |         |        |  |   |        |       |  |  |      |      |   |  |       |     |   |  |      |     
|Total interest-bearing liabilities                                            |                          |                          | 128,848 |                |  |                  | 2,261  |         |  |          | 1.75 |        |   |        | 118,120 |        |  |   | 2,208  |       |  |  | 1.87 |      |   |  | 150   |     |   |  | (92  | )   
|Noninterest-bearing deposits                                                  |                          |                          | 46,323  |                |  |                  |        |         |  |          |      |        |   |        | 37,940  |        |  |   |        |       |  |  |      |      |   |  |       |     |   |  |      |     
|Accrued interest and other liabilities                                        |                          |                          | 2,024   |                |  |                  |        |         |  |          |      |        |   |        | 1,593   |        |  |   |        |       |  |  |      |      |   |  |       |     |   |  |      |     
|                                                                              |                          |                          |         |                |  |                  |        |         |  |          |      |        |   |        |         |        |  |   |        |       |  |  |      |      |   |  |       |     |   |  |      |     
|Total liabilities                                                             |                          | $                        | 177,195 |                |  |                  |        |         |  |          |      |        |   |        | 157,653 |        |  |   |        |       |  |  |      |      |   |  |       |     |   |  |      |     
|Stockholders equity                                                          |                          |                          | 16,909  |                |  |                  |        |         |  |          |      |        |   |        | 16,146  |        |  |   |        |       |  |  |      |      |   |  |       |     |   |  |      |     
|                                                                              |                          |                          |         |                |  |                  |        |         |  |          |      |        |   |        |         |        |  |   |        |       |  |  |      |      |   |  |       |     |   |  |      |     
|Total liabilities and stockholders equity                                    |                          | $                        | 194,104 |                |  |                  |        |         |  |          |      |        |   | $      | 173,799 |        |  |   |        |       |  |  |      |      |   |  |       |     |   |  |      |     
|                                                                              |                          |                          |         |                |  |                  |        |         |  |          |      |        |   |        |         |        |  |   |        |       |  |  |      |      |   |  |       |     |   |  |      |     
|Interest revenue as a percentage of average earning assets                    |                          |                          |         |                |  |                  |        |         |  |          | 6.26 | %      |   |        |         |        |  |   |        |       |  |  | 6.37 | %    |   |  |       |     |   |  |      |     
|Interest expense as a percentage of average earning assets                    |                          |                          |         |                |  |                  |        |         |  |          | 1.24 | %      |   |        |         |        |  |   |        |       |  |  | 1.34 | %    |   |  |       |     |   |  |      |     
|                                                                              |                          |                          |         |                |  |                  |        |         |  |          |      |        |   |        |         |        |  |   |        |       |  |  |      |      |   |  |       |     |   |  |      |     
|Net interest income on a taxable-equivalent basis and net
    interest margin |                          |                          |         |                |  | $                | 9,156  |         |  |          | 5.02 | %      |   |        |         |        |  | $ | 8,258  |       |  |  | 5.02 | %    |   |  |       |     |   |  |      |     
|                                                                              |                          |                          |         |                |  |                  |        |         |  |          |      |        |   |        |         |        |  |   |        |       |  |  |      |      |   |  |       |     |   |  |      |     



18



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##### Table of Contents



Analysis of Average Balances, Net Interest Income, and Net
Interest Margin


|                                                                              |                          |                          |         |                |          |   |        |                  |  |         |         |      |   |          |         |        |      |   |        |        |  |  |      |      |   |  |      |      |   |  |      |      |  
|----------------------------------------------------------------------------- | ------------------------ | ------------------------ | ------- | -------------- | -------- | - | ------ | ---------------- |  | ------- | ------- | ---- | - | -------- | ------- | ------ | ---- | - | ------ | ------ |  |  | ---- | ---- | - |  | ---- | ---- | - |  | ---- | ---- | -
|                                                                              |                          | Years Ended December 31, |        
|                                                                              |                          |                          |        
|                                                                              |                          |                          |         | 2003 Over 2002 |         
|                                                                              |                          |                          |         |                |         
|                                                                              |                          | 2003                     |         |                | 2002     |   |        | Change in Income | 
|                                                                              |                          |                          |         |                |          |   |        | Due to           | 
|                                                                              |                          | Average                  |         |                |          |   | Yield/ |                  |  | Average |         |      |   |          | Yield/  |        |      |   |       
|                                                                              |                          | Balance                  |         |                | Interest |   |        | Rate             |  |         | Balance |      |   | Interest |         |        | Rate |   |        | Volume |  |  | Rate |     
|                                                                              |                          |                          |         |                |          |   |        |                  |  |         |         |      |   |          |         |        |      |   |        |        |  |  |      |     
|                                                                              |                          | (In thousands)           |        
|ASSETS                                                                        |                          |                          |         |                |          |   |        |                  |  |         |         |      |   |          |         |        |      |   |        |        |  |  |      |      |   |  |      |      |   |  |      |     
|Loans:                                                                        |                          |                          |         |                |          |   |        |                  |  |         |         |      |   |          |         |        |      |   |        |        |  |  |      |      |   |  |      |      |   |  |      |     
|                                                                              | Commercial and financial |                          | $       | 53,822         |          |   | $      | 3,839            |  |         |         | 7.13 | % |          | $       | 57,833 |      |   | $      | 4,489  |  |  |      | 7.76 | % |  | $    | (300 | ) |  | $    | (350 | )
|                                                                              | Real estate              |                          |         | 52,809         |          |   |        | 4,037            |  |         |         | 7.64 |   |          |         | 47,350 |      |   |        | 3,958  |  |  |      | 8.36 |   |  |      | 305  |   |  |      | (226 | )
|                                                                              | Consumer and other       |                          |         | 14,129         |          |   |        | 1,410            |  |         |         | 9.98 |   |          |         | 16,549 |      |   |        | 1,627  |  |  |      | 9.83 |   |  |      | (242 | ) |  |      | 25   |  
|                                                                              |                          |                          |         |                |          |   |        |                  |  |         |         |      |   |          |         |        |      |   |        |        |  |  |      |     
|Total loans                                                                   |                          |                          | 120,760 |                |          |   | 9,286  |                  |  |         | 7.69    |      |   |          | 121,732 |        |      |   | 10,074 |        |  |  | 8.28 |      |   |  | (237 | )    |   |  | (551 | )   
|Federal funds sold                                                            |                          |                          | 8,425   |                |          |   | 90     |                  |  |         | 1.07    |      |   |          | 12,297  |        |      |   | 200    |        |  |  | 1.63 |      |   |  | (52  | )    |   |  | (58  | )   
|Interest-bearing deposits in financial institutions                           |                          |                          | 1,328   |                |          |   | 12     |                  |  |         | 0.90    |      |   |          | 1,479   |        |      |   | 8      |        |  |  | .54  |      |   |  | (1   | )    |   |  | 5    |     
|Investment securities                                                         |                          |                          | 33,828  |                |          |   | 1,078  |                  |  |         | 3.19    |      |   |          | 18,765  |        |      |   | 890    |        |  |  | 4.74 |      |   |  | 318  |      |   |  | (130 | )   
|                                                                              |                          |                          |         |                |          |   |        |                  |  |         |         |      |   |          |         |        |      |   |        |        |  |  |      |     
|Total earning assets                                                          |                          |                          | 164,341 |                |          |   | 10,466 |                  |  |         | 6.37    |      |   |          | 154,273 |        |      |   | 11,172 |        |  |  | 7.24 |      |   |  | 28   |      |   |  | (734 | )   
|Cash and due from banks                                                       |                          |                          | 6,953   |                |          |   |        |                  |  |         |         |      |   |          | 7,124   |        |      |   |        |        |  |  |      |      |   |  |      |      |   |  |      |     
|Premises and equipment                                                        |                          |                          | 2,377   |                |          |   |        |                  |  |         |         |      |   |          | 2,012   |        |      |   |        |        |  |  |      |      |   |  |      |      |   |  |      |     
|Other real estate owned                                                       |                          |                          | 144     |                |          |   |        |                  |  |         |         |      |   |          | 0       |        |      |   |        |        |  |  |      |      |   |  |      |      |   |  |      |     
|Accrued interest and other assets                                             |                          |                          | 1,641   |                |          |   |        |                  |  |         |         |      |   |          | 1,499   |        |      |   |        |        |  |  |      |      |   |  |      |      |   |  |      |     
|Allowance for loan losses                                                     |                          |                          | (1,657  | )              |          |   |        |                  |  |         |         |      |   |          | (1,665  | )      |      |   |        |        |  |  |      |      |   |  |      |      |   |  |      |     
|                                                                              |                          |                          |         |                |          |   |        |                  |  |         |         |      |   |          |         |        |      |   |        |        |  |  |      |     
|Total assets                                                                  |                          | $                        | 173,799 |                |          |   |        |                  |  |         |         |      |   | $        | 163,243 |        |      |   |        |        |  |  |      |      |   |  |      |      |   |  |      |     
|                                                                              |                          |                          |         |                |          |   |        |                  |  |         |         |      |   |          |         |        |      |   |        |        |  |  |      |     
|                                                                             
|LIABILITIES                                                                   |                          |                          |         |                |          |   |        |                  |  |         |         |      |   |          |         |        |      |   |        |        |  |  |      |      |   |  |      |      |   |  |      |     
|Interest-bearing deposits:                                                    |                          |                          |         |                |          |   |        |                  |  |         |         |      |   |          |         |        |      |   |        |        |  |  |      |      |   |  |      |      |   |  |      |     
|                                                                              | Demand deposits          |                          | $       | 10,208         |          |   |        | 20               |  |         |         | 0.19 |   |          | $       | 9,094  |      |   |        | 23     |  |  |      | 0.25 |   |  |      | 4    |   |  |      | (7   | )
|                                                                              | Savings deposits         |                          |         | 48,677         |          |   |        | 513              |  |         |         | 1.05 |   |          |         | 45,875 |      |   |        | 814    |  |  |      | 1.77 |   |  |      | 53   |   |  |      | (354 | )
|                                                                              | Time deposits            |                          |         | 36,868         |          |   |        | 829              |  |         |         | 2.25 |   |          |         | 39,270 |      |   |        | 1,240  |  |  |      | 3.16 |   |  |      | (72  | ) |  |      | (339 | )
|                                                                              |                          |                          |         |                |          |   |        |                  |  |         |         |      |   |          |         |        |      |   |        |        |  |  |      |     
|Total interest-bearing deposits                                               |                          |                          | 95,753  |                |          |   | 1,362  |                  |  |         | 1.42    |      |   |          | 94,239  |        |      |   | 2,077  |        |  |  | 2.20 |      |   |  | (15  | )    |   |  | (700 | )   
|Federal funds purchased                                                       |                          |                          | 3,054   |                |          |   | 20     |                  |  |         | .65     |      |   |          | 4,721   |        |      |   | 56     |        |  |  | 1.19 |      |   |  | (16  | )    |   |  | (20  | )   
|Federal Home Loan Bank advances                                               |                          |                          | 14,313  |                |          |   | 586    |                  |  |         | 4.09    |      |   |          | 8,555   |        |      |   | 413    |        |  |  | 4.83 |      |   |  | 223  |      |   |  | (50  | )   
|Junior subordinated debt                                                      |                          |                          | 5,000   |                |          |   | 240    |                  |  |         | 4.80    |      |   |          | 3,059   |        |      |   | 166    |        |  |  | 5.43 |      |   |  | 92   |      |   |  | (18  | )   
|                                                                              |                          |                          |         |                |          |   |        |                  |  |         |         |      |   |          |         |        |      |   |        |        |  |  |      |     
|Total interest-bearing liabilities                                            |                          |                          | 118,120 |                |          |   | 2,208  |                  |  |         | 1.87    |      |   |          | 110,574 |        |      |   | 2,712  |        |  |  | 2.46 |      |   |  | 284  |      |   |  | (788 | )   
|Noninterest-bearing deposits                                                  |                          |                          | 37,940  |                |          |   |        |                  |  |         |         |      |   |          | 35,464  |        |      |   |        |        |  |  |      |      |   |  |      |      |   |  |      |     
|Accrued interest and other liabilities                                        |                          |                          | 1,593   |                |          |   |        |                  |  |         |         |      |   |          | 2,013   |        |      |   |        |        |  |  |      |      |   |  |      |      |   |  |      |     
|                                                                              |                          |                          |         |                |          |   |        |                  |  |         |         |      |   |          |         |        |      |   |        |        |  |  |      |     
|Total liabilities                                                             |                          |                          | 157,653 |                |          |   |        |                  |  |         |         |      |   |          | 148,051 |        |      |   |        |        |  |  |      |      |   |  |      |      |   |  |      |     
|Stockholders equity                                                          |                          |                          | 16,146  |                |          |   |        |                  |  |         |         |      |   |          | 15,192  |        |      |   |        |        |  |  |      |      |   |  |      |      |   |  |      |     
|                                                                              |                          |                          |         |                |          |   |        |                  |  |         |         |      |   |          |         |        |      |   |        |        |  |  |      |     
|Total liabilities and stockholders equity                                    |                          | $                        | 173,799 |                |          |   |        |                  |  |         |         |      |   | $        | 163,243 |        |      |   |        |        |  |  |      |      |   |  |      |      |   |  |      |     
|                                                                              |                          |                          |         |                |          |   |        |                  |  |         |         |      |   |          |         |        |      |   |        |        |  |  |      |     
|Interest revenue as a percentage of average earning assets                    |                          |                          |         |                |          |   |        |                  |  |         | 6.37    | %    |   |          |         |        |      |   |        |        |  |  | 7.24 | %    |   |  |      |      |   |  |      |     
|Interest expense as a percentage of average earning assets                    |                          |                          |         |                |          |   |        |                  |  |         | 1.34    | %    |   |          |         |        |      |   |        |        |  |  | 1.76 | %    |   |  |      |      |   |  |      |     
|                                                                              |                          |                          |         |                |          |   |        |                  |  |         |         |      |   |          |         |        |      |   |        |        |  |  |      |     
|Net interest income on a taxable-equivalent basis and net
    interest margin |                          |                          |         |                |          | $ | 8,258  |                  |  |         | 5.02    | %    |   |          |         |        |      | $ | 8,460  |        |  |  | 5.48 | %    |   |  |      |      |   |  |      |     
|                                                                              |                          |                          |         |                |          |   |        |                  |  |         |         |      |   |          |         |        |      |   |        |        |  |  |      |     



19



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##### Table of Contents



Provision and Allowance for Loan Losses














Noninterest Income








Noninterest Expense






20



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##### Table of Contents





Review of Financial Condition




Analysis of Securities




|                                                                       |  |                |        |  |          |   |        |          |  |   |        | 
|---------------------------------------------------------------------- |  | -------------- | ------ |  | -------- | - | ------ | -------- |  | - | ------ | 
|                                                                       |  | 2004           |        |  | 2003     |   |        | 2002     | 
|                                                                       |  | Carrying       |        |  | Carrying |   |        | Carrying | 
|                                                                       |  | Value          |        |  | Value    |   |        | Value    | 
|                                                                       |  |                |        |  |          |   |        |          | 
|                                                                       |  | (In thousands) |       
|U.S. agencies                                                          |  | $              | 8,004  |  |          | $ | 8,481  |          |  | $ | 3,032  | 
|State and political subdivisions                                       |  |                | 3,555  |  |          |   | 3,567  |          |  |   | 2,123  | 
|AMF Adjustable Rate Mortgage Fund                                      |  |                | 14,832 |  |          |   | 16,586 |          |  |   | 5,397  | 
|Mortgage-backed securities and collateralized mortgage
    obligations |  |                | 7,367  |  |          |   | 9,812  |          |  |   | 11,843 | 
|Federal Home Loan Bank stock                                           |  |                | 1,412  |  |          |   | 1,372  |          |  |   | 1,299  | 
|                                                                       |  |                |        |  |          |   |        |          | 
|Total                                                                  |  | $              | 35,170 |  |          | $ | 39,818 |          |  | $ | 23,694 | 
|                                                                       |  |                |        |  |          |   |        |          | 







|                                                                       |  |                                |        |              |            |   |               |            |  |   |           |           |  |          |       |   |  |   |        |  
|---------------------------------------------------------------------- |  | ------------------------------ | ------ | ------------ | ---------- | - | ------------- | ---------- |  | - | --------- | --------- |  | -------- | ----- | - |  | - | ------ | -
|                                                                       |  |                                |        | After 1 Year |            |   | After 5 Years |            |  |   |           | Total and | 
|                                                                       |  | Within                         |        |              | but Within |   |               | but Within |  |   | After     |           |  | Weighted |      
|                                                                       |  | 1 Year/                        |        |              | 5 Years/   |   |               | 10 Years/  |  |   | 10 Years/ |           |  | Average  |      
|                                                                       |  | Yield                          |        |              | Yield      |   |               | Yield      |  |   | Yield     |           |  | Yield    |      
|                                                                       |  |                                |        |              |            |   |               |            |  |   |           |           |  |          |      
|                                                                       |  | (In thousands, carrying value) |       
|U.S. agencies                                                          |  | $                              | 498    |              |            | $ | 5,005         |            |  | $ | 2,501     |           |  | $        |      |   |  | $ | 8,004  |  
|                                                                       |  |                                | 1.95   | %            |            |   | 2.89          | %          |  |   | 1.00      | %         |  |          |       |   |  |   | 2.24   | %
|State and political subdivisions                                       |  |                                | 136    |              |            |   | 1,927         |            |  |   | 1,492     |           |  |          |      |   |  |   | 3,555  |  
|                                                                       |  |                                | 2.85   | %            |            |   | 3.89          | %          |  |   | 4.74      | %         |  |          |       |   |  |   | 4.21   | %
|AMF Adjustable Rate Mortgage Fund*                                     |  |                                | 14,832 |              |            |   |              |            |  |   |          |           |  |          |      |   |  |   | 14,832 |  
|                                                                       |  |                                | 2.74   | %            |            |   |               |            |  |   |           |           |  |          |       |   |  |   | 2.74   | %
|Mortgage-backed securities and collateralized mortgage
    obligations |  |                                |       |              |            |   | 455           |            |  |   |          |           |  |          | 6,912 |   |  |   | 7,367  |  
|                                                                       |  |                                |        |              |            |   | 5.58          | %          |  |   |           |           |  |          | 3.21  | % |  |   | 3.36   | %
|Federal Home Loan Bank stock*                                          |  |                                | 1,412  |              |            |   |              |            |  |   |          |           |  |          |      |   |  |   | 1,412  |  
|                                                                       |  |                                |        |              |            |   |               |            |  |   |           |           |  |          |      
|Total                                                                  |  | $                              | 16,878 |              |            | $ | 7,387         |            |  | $ | 3,993     |           |  | $        | 6,912 |   |  | $ | 35,170 |  
|                                                                       |  |                                |        |              |            |   |               |            |  |   |           |           |  |          |      






|  |                                      
|- | -------------------------------------
|* | Securities without a stated maturity.

21



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##### Table of Contents



Loans








| |               
| | --------------
| | Types of Loans

|                   |                        |                |         |        |      |   |         |        |  |   |         |        |  |      |         |        |  |   |         |        | 
|------------------ | ---------------------- | -------------- | ------- | ------ | ---- | - | ------- | ------ |  | - | ------- | ------ |  | ---- | ------- | ------ |  | - | ------- | ------ | 
|                   |                        | 2004           |         |        | 2003 |   |         | 2002   |  |   | 2001    |        |  | 2000 |        
|                   |                        |                |         |        |      |   |         |        |  |   |         |        |  |      |        
|                   |                        | (In thousands) |        
|Commercial         |                        | $              | 55,563  |        |      | $ | 53,770  |        |  | $ | 47,603  |        |  | $    | 53,791  |        |  | $ | 46,265  |       
|Real estate:       |                        |                |         |        |      |   |         |        |  |   |         |        |  |      |         |        |  |   |         |       
|                   | Commercial             |                |         | 67,165 |      |   |         | 48,963 |  |   |         | 42,497 |  |      |         | 28,349 |  |   |         | 39,605 | 
|                   | Construction           |                |         | 11,538 |      |   |         | 10,911 |  |   |         | 5,574  |  |      |         | 7,002  |  |   |         | 5,187  | 
|                   | Residential 1-4 family |                |         | 11,508 |      |   |         | 11,971 |  |   |         | 10,821 |  |      |         | 13,942 |  |   |         | 21,726 | 
|Consumer and other |                        |                | 13,882  |        |      |   | 12,853  |        |  |   | 15,014  |        |  |      | 19,135  |        |  |   | 275     |       
|                   |                        |                |         |        |      |   |         |        |  |   |         |        |  |      |        
|Total              |                        | $              | 159,656 |        |      | $ | 138,468 |        |  | $ | 121,509 |        |  | $    | 122,219 |        |  | $ | 113,058 |       
|                   |                        |                |         |        |      |   |         |        |  |   |         |        |  |      |        



|                   |                        |                |        |        |           |   |        |         |  |   |       |       |  |   |         |        | 
|------------------ | ---------------------- | -------------- | ------ | ------ | --------- | - | ------ | ------- |  | - | ----- | ----- |  | - | ------- | ------ | 
|                   |                        | Within         |        |        |           |   | After  |         |  |  
|                   |                        | 1 Year         |        |        | 1-5 Years |   |        | 5 Years |  |   | Total |      
|                   |                        |                |        |        |           |   |        |         |  |   |       |      
|                   |                        | (In thousands) |       
|Commercial         |                        | $              | 35,817 |        |           | $ | 17,610 |         |  | $ | 2,136 |       |  | $ | 55,563  |       
|Real estate:       |                        |                |        |        |           |   |        |         |  |   |       |       |  |   |         |       
|                   | Commercial             |                |        | 20,998 |           |   |        | 41,421  |  |   |       | 4,746 |  |   |         | 67,165 | 
|                   | Construction           |                |        | 11,401 |           |   |        | 137     |  |   |       |      |  |   |         | 11,538 | 
|                   | Residential 1-4 family |                |        | 7,310  |           |   |        | 4,094   |  |   |       | 104   |  |   |         | 11,508 | 
|Consumer and other |                        |                | 9,540  |        |           |   | 4,255  |         |  |   | 87    |       |  |   | 13,882  |       
|                   |                        |                |        |        |           |   |        |         |  |   |       |      
|Total              |                        | $              | 85,066 |        |           | $ | 67,517 |         |  | $ | 7,073 |       |  | $ | 159,656 |       
|                   |                        |                |        |        |           |   |        |         |  |   |       |      



|               |  |                |        |       |         |   |        | 
|-------------- |  | -------------- | ------ | ----- | ------- | - | ------ | 
|               |  |                |        | After |        
|               |  | 1-5 Years      |        |       | 5 Years |  
|               |  |                |        |       |         |  
|               |  | (In thousands) |       
|Fixed rates    |  | $              | 26,537 |       |         | $ | 7,142  | 
|Variable rates |  |                | 17,586 |       |         |   | 43,355 | 
|               |  |                |        |       |         |  
|Total          |  | $              | 44,123 |       |         | $ | 50,497 | 
|               |  |                |        |       |         |  

22



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##### Table of Contents





| |                                            
| | -------------------------------------------
| | Allocation of the Allowance for Loan Losses





|                    |              |           |       |            |          |  |     |           |            |   |          |     |  |            |     |    |          |   |            |           |  |  |          |            |  |           |       |     |          |  |     |    |  |   |       |     |  |  |     |    | 
|------------------- | ------------ | --------- | ----- | ---------- | -------- |  | --- | --------- | ---------- | - | -------- | --- |  | ---------- | --- | -- | -------- | - | ---------- | --------- |  |  | -------- | ---------- |  | --------- | ----- | --- | -------- |  | --- | -- |  | - | ----- | --- |  |  | --- | -- | 
|                    |              |           |       | % of Loans |          |  |     |           | % of Loans |   |          |     |  | % of Loans |     |    |          |   | % of Loans |           |  |  |          | % of Loans | 
|                    |              |           |       | in Each    |          |  |     |           | in Each    |   |          |     |  | in Each    |     |    |          |   | in Each    |           |  |  |          | in Each    | 
|                    |              | 2004      |       |            | Category |  |     | 2003      |            |   | Category |     |  | 2002       |     |    | Category |   |            | 2001      |  |  | Category |            |  | 2000      |       |     | Category | 
|                    |              | Allocated |       |            | to Total |  |     | Allocated |            |   | to Total |     |  | Allocated  |     |    | to Total |   |            | Allocated |  |  | to Total |            |  | Allocated |       |     | to Total | 
|                    |              | Amount    |       |            | Loans    |  |     | Amount    |            |   | Loans    |     |  | Amount     |     |    | Loans    |   |            | Amount    |  |  | Loans    |            |  | Amount    |       |     | Loans    | 
|                    |              |           |       |            |          |  |     |           |            |   |          |     |  |            |     |    |          |   |            |           |  |  |          |            |  |           |       |     |          | 
|Commercial          |              | $         | 1,000 |            |          |  | 35  |           |            | $ | 885      |     |  |            | 39  |    |          | $ | 1,024      |           |  |  | 39       |            |  | $         | 908   |     |          |  | 44  |    |  | $ | 545   |     |  |  | 41  |   
|Real estate:        |              |           |       |            |          |  |     |           |            |   |          |     |  |            |     |    |          |   |            |           |  |  |          |            |  |           |       |     |          |  |     |    |  |   |       |     |  |  |     |   
|                    | Commercial   |           |       | 568        |          |  |     | 42        |            |   |          | 436 |  |            |     | 35 |          |   |            | 423       |  |  |          | 35         |  |           |       | 261 |          |  |     | 23 |  |   |       | 50  |  |  |     | 5  | 
|                    | Construction |           |       | 117        |          |  |     | 7         |            |   |          | 110 |  |            |     | 8  |          |   |            | 59        |  |  |          | 5          |  |           |       | 65  |          |  |     | 6  |  |   |       | 148 |  |  |     | 14 | 
|                    | Res 1-4      |           |       | 11         |          |  |     | 7         |            |   |          | 9   |  |            |     | 9  |          |   |            | 28        |  |  |          | 9          |  |           |       | 12  |          |  |     | 11 |  |   |       | 236 |  |  |     | 21 | 
|Consumer/other      |              |           | 191   |            |          |  | 9   |           |            |   | 196      |     |  |            | 9   |    |          |   | 156        |           |  |  | 12       |            |  |           | 252   |     |          |  | 16  |    |  |   | 344   |     |  |  | 19  |   
|                    |              |           |       |            |          |  |     |           |            |   |          |     |  |            |     |    |          |   |            |           |  |  |          |            |  |           |       |     |          | 
|Total               |              | $         | 1,887 |            |          |  | 100 |           |            | $ | 1,636    |     |  |            | 100 |    |          | $ | 1,690      |           |  |  | 100      |            |  | $         | 1,498 |     |          |  | 100 |    |  | $ | 1,323 |     |  |  | 100 |   
|                    |              |           |       |            |          |  |     |           |            |   |          |     |  |            |     |    |          |   |            |           |  |  |          |            |  |           |       |     |          | 
|% of loan portfolio |              |           | 1.18  | %          |          |  |     |           |            |   | 1.18     | %   |  |            |     |    |          |   | 1.39       | %         |  |  |          |            |  |           | 1.23  | %   |          |  |     |    |  |   | 1.17  | %   |  |  |     |   
|                    |              |           |       |            |          |  |     |           |            |   |          |     |  |            |     |    |          |   |            |           |  |  |          |            |  |           |       |     |          | 



23



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##### Table of Contents





| |                                          
| | -----------------------------------------
| | Analysis of the Allowance for Loan Losses



|                                                      |                        |                          |       |   |      |   |       |      |  |   |       |    |  |      |       |   |  |   |       |    | 
|----------------------------------------------------- | ---------------------- | ------------------------ | ----- | - | ---- | - | ----- | ---- |  | - | ----- | -- |  | ---- | ----- | - |  | - | ----- | -- | 
|                                                      |                        | Year Ending December 31, |      
|                                                      |                        |                          |      
|                                                      |                        | 2004                     |       |   | 2003 |   |       | 2002 |  |   | 2001  |    |  | 2000 |      
|                                                      |                        |                          |       |   |      |   |       |      |  |   |       |    |  |      |      
|                                                      |                        | (In thousands)           |      
|Beginning balance                                     |                        | $                        | 1,636 |   |      | $ | 1,690 |      |  | $ | 1,498 |    |  | $    | 1,323 |   |  | $ | 1,055 |   
|Charge-offs:                                          |                        |                          |       |   |      |   |       |      |  |   |       |    |  |      |       |   |  |   |       |   
|Commercial                                            |                        |                          | 24    |   |      |   | 81    |      |  |   | 108   |    |  |      | 185   |   |  |   | 147   |   
|Real estate:                                          |                        |                          |       |   |      |   |       |      |  |   |       |    |  |      |       |   |  |   |       |   
|                                                      | Commercial             |                          |       |  |      |   |       |     |  |   |       | 20 |  |      |       |  |  |   |       |   | 
|                                                      | Construction           |                          |       |  |      |   |       |     |  |   |       |   |  |      |       |  |  |   |       |   | 
|                                                      | Residential 1-4 family |                          |       |  |      |   |       | 184  |  |   |       |   |  |      |       |  |  |   |       | 90 | 
|Consumer and other                                    |                        |                          | 146   |   |      |   | 67    |      |  |   | 63    |    |  |      | 176   |   |  |   | 25    |   
|                                                      |                        |                          |       |   |      |   |       |      |  |   |       |    |  |      |      
|Total charge-offs                                     |                        |                          | 170   |   |      |   | 332   |      |  |   | 191   |    |  |      | 361   |   |  |   | 262   |   
|Recoveries:                                           |                        |                          |       |   |      |   |       |      |  |   |       |    |  |      |       |   |  |   |       |   
|Commercial                                            |                        |                          | 87    |   |      |   | 17    |      |  |   | 22    |    |  |      | 57    |   |  |   | 70    |   
|Real estate:                                          |                        |                          |       |   |      |   |       |      |  |   |       |    |  |      |       |   |  |   |       |   
|                                                      | Commercial             |                          |       |  |      |   |       | 20   |  |   |       |   |  |      |       |  |  |   |       |   | 
|                                                      | Construction           |                          |       |  |      |   |       |     |  |   |       | 1  |  |      |       |  |  |   |       |   | 
|                                                      | Residential 1-4 family |                          |       |  |      |   |       | 8    |  |   |       |   |  |      |       |  |  |   |       |   | 
|Consumer and other                                    |                        |                          | 13    |   |      |   |      |      |  |   | 30    |    |  |      |      |   |  |   | 5     |   
|                                                      |                        |                          |       |   |      |   |       |      |  |   |       |    |  |      |      
|Total recoveries                                      |                        |                          | 100   |   |      |   | 45    |      |  |   | 53    |    |  |      | 57    |   |  |   | 75    |   
|                                                      |                        |                          |       |   |      |   |       |      |  |   |       |    |  |      |      
|Net charge-offs/(recoveries)                          |                        |                          | 70    |   |      |   | 287   |      |  |   | 138   |    |  |      | 304   |   |  |   | 187   |   
|Provision                                             |                        |                          | 321   |   |      |   | 233   |      |  |   | 330   |    |  |      | 479   |   |  |   | 455   |   
|                                                      |                        |                          |       |   |      |   |       |      |  |   |       |    |  |      |      
|Ending balance                                        |                        | $                        | 1,887 |   |      | $ | 1,636 |      |  | $ | 1,690 |    |  | $    | 1,498 |   |  | $ | 1,323 |   
|                                                      |                        |                          |       |   |      |   |       |      |  |   |       |    |  |      |      
|Ratio of net charge-offs to average loans outstanding |                        |                          | 0.12  | % |      |   | 0.24  | %    |  |   | 0.11  | %  |  |      | 0.26  | % |  |   | 0.18  | % 
|                                                      |                        |                          |       |   |      |   |       |      |  |   |       |    |  |      |      

24



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| |                               
| | ------------------------------
| | Nonperforming Loans and Assets



|                                                      |  |                |      |   |      |   |       |      |  |   |      |   |  |      |       |   |  |   |      |  
|----------------------------------------------------- |  | -------------- | ---- | - | ---- | - | ----- | ---- |  | - | ---- | - |  | ---- | ----- | - |  | - | ---- | -
|                                                      |  | 2004           |      |   | 2003 |   |       | 2002 |  |   | 2001 |   |  | 2000 |      
|                                                      |  |                |      |   |      |   |       |      |  |   |      |   |  |      |      
|                                                      |  | (In thousands) |     
|Nonaccruing loans:                                    |  |                |      |   |      |   |       |      |  |   |      |   |  |      |       |   |  |   |      |  
|Commercial                                            |  | $              | 182  |   |      | $ | 112   |      |  | $ | 309  |   |  | $    | 463   |   |  | $ | 165  |  
|Real Estate                                           |  |                |     |   |      |   |      |      |  |   | 462  |   |  |      | 90    |   |  |   |     |  
|Consumer                                              |  |                | 31   |   |      |   |      |      |  |   | 1    |   |  |      |      |   |  |   | 112  |  
|                                                      |  |                |      |   |      |   |       |      |  |   |      |   |  |      |      
|Total(1)                                              |  |                | 213  |   |      |   | 112   |      |  |   | 772  |   |  |      | 553   |   |  |   | 277  |  
|Accruing loans delinquent 90 days or more:            |  |                |      |   |      |   |       |      |  |   |      |   |  |      |       |   |  |   |      |  
|Commercial                                            |  |                | 5    |   |      |   | 464   |      |  |   | 15   |   |  |      | 444   |   |  |   | 222  |  
|Real Estate                                           |  |                |     |   |      |   |      |      |  |   |     |   |  |      | 111   |   |  |   |     |  
|Consumer                                              |  |                |     |   |      |   | 67    |      |  |   | 12   |   |  |      | 47    |   |  |   | 56   |  
|                                                      |  |                |      |   |      |   |       |      |  |   |      |   |  |      |      
|Total                                                 |  |                | 5    |   |      |   | 531   |      |  |   | 27   |   |  |      | 602   |   |  |   | 278  |  
|                                                      |  |                |      |   |      |   |       |      |  |   |      |   |  |      |      
|Total non-performing loans                            |  |                | 218  |   |      |   | 643   |      |  |   | 799  |   |  |      | 1155  |   |  |   | 555  |  
|Other real estate owned                               |  |                |     |   |      |   | 2,659 |      |  |   |     |   |  |      |      |   |  |   |     |  
|                                                      |  |                |      |   |      |   |       |      |  |   |      |   |  |      |      
|Total non-performing assets                           |  | $              | 218  |   |      | $ | 3,302 |      |  | $ | 799  |   |  | $    | 1,155 |   |  | $ | 555  |  
|                                                      |  |                |      |   |      |   |       |      |  |   |      |   |  |      |      
|Total non-performing loans as a percentage of loans   |  |                | 0.14 | % |      |   | 0.46  | %    |  |   | 0.66 | % |  |      | 0.95  | % |  |   | 0.49 | %
|                                                      |  |                |      |   |      |   |       |      |  |   |      |   |  |      |      
|Total non-performing assets as a percentage of assets |  |                | 0.10 | % |      |   | 1.70  | %    |  |   | 0.47 | % |  |      | 0.74  | % |  |   | 0.37 | %
|                                                      |  |                |      |   |      |   |       |      |  |   |      |   |  |      |      






|    |                                                                                                                                                                                   
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | If interest on these nonaccruing loans had been recognized, such
    income would have been $9,000, $9,000, $68,000, $22,000, and
    $28,000 for 2004, 2003, 2002, 2001 and 2000.









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Deposits




|                           |                                         |                |         |        |      |  |      |        |  |   |         |        |  |        |      |      |      |   |         |        |  |  |      |      | 
|-------------------------- | --------------------------------------- | -------------- | ------- | ------ | ---- |  | ---- | ------ |  | - | ------- | ------ |  | ------ | ---- | ---- | ---- | - | ------- | ------ |  |  | ---- | ---- | 
|                           |                                         | 2004           |         |        | 2003 |  |      | 2002   | 
|                           |                                         |                |         |        |      |  |      |        | 
|                           |                                         | Amount         |         |        | Rate |  |      | Amount |  |   | Rate    |        |  | Amount |      |      | Rate |  
|                           |                                         |                |         |        |      |  |      |        |  |   |         |        |  |        |      |      |      |  
|                           |                                         | (In thousands) |        
|DEPOSITS                   |                                         |                |         |        |      |  |      |        |  |   |         |        |  |        |      |      |      |   |         |        |  |  |      |     
|Noninterest bearing demand |                                         | $              | 46,323  |        |      |  | 0.00 | %      |  | $ | 37,940  |        |  |        | 0.00 | %    |      | $ | 35,464  |        |  |  | 0.00 | %   
|Interest bearing demand    |                                         |                | 11,133  |        |      |  | 0.11 |        |  |   | 10,208  |        |  |        | 0.19 |      |      |   | 9,094   |        |  |  | 0.25 |     
|Savings deposits           |                                         |                | 49,384  |        |      |  | 0.95 |        |  |   | 48,677  |        |  |        | 1.05 |      |      |   | 45,875  |        |  |  | 1.77 |     
|Time deposits:             |                                         |                |         |        |      |  |      |        |  |   |         |        |  |        |      |      |      |   |         |        |  |  |      |     
|                           | Certificates of deposit, under $100,000 |                |         | 22,369 |      |  |      | 2.08   |  |   |         | 19,839 |  |        |      | 2.53 |      |   |         | 22,278 |  |  |      | 3.30 | 
|                           | Certificates of deposit, over $100,000  |                |         | 13,184 |      |  |      | 2.14   |  |   |         | 14,640 |  |        |      | 2.03 |      |   |         | 14,166 |  |  |      | 3.21 | 
|                           | Public funds                            |                |         | 13,400 |      |  |      | 1.66   |  |   |         | 2,389  |  |        |      | 1.28 |      |   |         | 2,826  |  |  |      | 1.77 | 
|                           |                                         |                |         |        |      |  |      |        |  |   |         |        |  |        |      |      |      |  
|Total time deposits        |                                         |                | 48,953  |        |      |  | 1.98 | %      |  |   | 36,868  |        |  |        | 2.25 | %    |      |   | 39,270  |        |  |  | 3.16 | %   
|                           |                                         |                |         |        |      |  |      |        |  |   |         |        |  |        |      |      |      |  
|Total                      |                                         | $              | 155,793 |        |      |  |      |        |  | $ | 133,693 |        |  |        |      |      |      | $ | 129,703 |        |  |  |      |     
|                           |                                         |                |         |        |      |  |      |        |  |   |         |        |  |        |      |      |      |  



|                                |  |                |        | 
|------------------------------- |  | -------------- | ------ | 
|                                |  | Amount         |       
|                                |  |                |       
|                                |  | (In thousands) |       
|3 months or less                |  | $              | 20,091 | 
|Over 3 months through 6 months  |  |                | 3,060  | 
|Over 6 months through 12 months |  |                | 2,005  | 
|Over 12 months                  |  |                | 5,243  | 
|                                |  |                |       
|Total                           |  | $              | 30,399 | 
|                                |  |                |       

Borrowings




|                                               |  |                |       |              |  |              |       |   |  |   |       |  
|---------------------------------------------- |  | -------------- | ----- | ------------ |  | ------------ | ----- | - |  | - | ----- | -
|                                               |  | December 31,   |       | December 31, |  | December 31,
|                                               |  | 2004           |       | 2003         |  | 2002        
|Federal Funds Purchased                        |  |                |       |              |  |             
|                                               |  | (In thousands)
|Balance at end of year                         |  | $              |      |              |  | $            | 3,097 |   |  | $ | 3,353 |  
|Weighted average interest rate at end of year  |  |                |      |              |  |              | 0.50  | % |  |   | 0.80  | %
|Maximum amount outstanding(1)                  |  |                | 3,212 |              |  |              | 4,666 |   |  |   | 7,921 |  
|Average amount outstanding                     |  |                | 1,715 |              |  |              | 3,054 |   |  |   | 4,721 |  
|Weighted average interest rate during the year |  |                | 0.83  | %            |  |              | 0.65  | % |  |   | 1.19  | %






|    |                                                           
|--- | ----------------------------------------------------------
|(1) | Based on amount outstanding at month end during each year.

26



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|                                               |  |                |        |   |              |   |        |              |  |   |        |  
|---------------------------------------------- |  | -------------- | ------ | - | ------------ | - | ------ | ------------ |  | - | ------ | -
|                                               |  | December 31,   |        |   | December 31, |   |        | December 31, | 
|                                               |  | 2004           |        |   | 2003         |   |        | 2002         | 
|FHLB Advances                                  |  |                |        |   |              |   |        |              | 
|                                               |  | (In thousands) |       
|Balance at end of year                         |  | $              | 11,067 |   |              | $ | 15,381 |              |  | $ | 11,783 |  
|Weighted average interest rate at end of year  |  |                | 4.50   | % |              |   | 3.81   | %            |  |   | 4.26   | %
|Maximum amount outstanding(1)                  |  |                | 17,537 |   |              |   | 19,339 |              |  |   | 12,499 |  
|Average amount outstanding                     |  |                | 12,663 |   |              |   | 14,313 |              |  |   | 8,555  |  
|Weighted average interest rate during the year |  |                | 4.27   | % |              |   | 4.09   | %            |  |   | 4.85   | %






|    |                                                           
|--- | ----------------------------------------------------------
|(1) | Based on amount outstanding at month end during each year.

Junior Subordinated Debt (Trust Preferred Securities)








Contractual Obligations and Commitments






27



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|                                |  |                |       |  |           |   |       |           |       |   |         |  |  |       |       |  |  |   |        | 
|------------------------------- |  | -------------- | ----- |  | --------- | - | ----- | --------- | ----- | - | ------- |  |  | ----- | ----- |  |  | - | ------ | 
|                                |  | Within         |       |  |           |   |       |           | After |   |         | 
|                                |  | 1 Year         |       |  | 1-3 Years |   |       | 3-5 Years |       |   | 5 Years |  |  | Total |      
|                                |  |                |       |  |           |   |       |           |       |   |         |  |  |       |      
|                                |  | (In thousands) |      
|Federal Home Loan Bank advances |  | $              | 3,654 |  |           | $ | 5,227 |           |       | $ | 2,186   |  |  | $     |      |  |  | $ | 11,067 | 
|Junior subordinated debt        |  |                |      |  |           |   |      |           |       |   |        |  |  |       | 5,000 |  |  |   | 5,000  | 
|Operating leases                |  |                | 550   |  |           |   | 843   |           |       |   | 312     |  |  |       | 172   |  |  |   | 1,877  | 
|                                |  |                |       |  |           |   |       |           |       |   |         |  |  |       |      
|Total                           |  | $              | 4,204 |  |           | $ | 6,070 |           |       | $ | 2,498   |  |  | $     | 5,172 |  |  | $ | 17,944 | 
|                                |  |                |       |  |           |   |       |           |       |   |         |  |  |       |      





Asset/ Liability Management






Liquidity










28



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##### Table of Contents









Interest Rate Risk








Net Interest Income Analysis


|                      |  |                   |      |   |         |  |                   |                       |  |        |  |   |         |   |  |  |       |  
|--------------------- |  | ----------------- | ---- | - | ------- |  | ----------------- | --------------------- |  | ------ |  | - | ------- | - |  |  | ----- | -
|                      |  | December 31, 2004 |      |   |         |  | December 31, 2003 |                      
|                      |  |                   |      |   |         |  |                   |                      
|                      |  | Dollar            |      |   | Percent |  |                   |                       |  | Dollar |  |   | Percent |  
|Immediate Rate Change |  | Change            |      |   | Change  |  |                   | Immediate Rate Change |  | Change |  |   | Change  |  
|                      |  |                   |      |   |         |  |                   |                       |  |        |  |   |         |  
|+100bp                |  | $                 | 309  |   |         |  | 3.05              | %                     |  | +100bp |  | $ | 190     |   |  |  | 2.23  | %
|+50bp                 |  |                   | 155  |   |         |  | 1.53              |                       |  | +50bp  |  |   | 95      |   |  |  | 1.12  |  
|-50bp                 |  |                   | (167 | ) |         |  | (1.65             | )                     |  | -50bp  |  |   | (184    | ) |  |  | (2.16 | )
|-100bp                |  |                   | (334 | ) |         |  | (3.30             | )                     |  | -100bp |  |   | (367    | ) |  |  | (4.31 | )





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Capital Resources















|         |                                                               
|-------- | --------------------------------------------------------------
|Item 7A. | Quantitative and Qualitative Disclosures About Market
    Risk








|        |                                            
|------- | -------------------------------------------
|Item 8. | Financial Statements and Supplementary Data



|                                                        |  |      |    | 
|------------------------------------------------------- |  | ---- | -- | 
|                                                        |  | Page |   
|                                                        |  |      |   
|Report of Independent Registered Public Accounting Firm |  |      | 31 | 
|Consolidated Balance Sheets                             |  |      | 32 | 
|Consolidated Statements of Income                       |  |      | 33 | 
|Consolidated Statements of Stockholders Equity         |  |      | 34 | 
|Consolidated Statements of Comprehensive Income         |  |      | 35 | 
|Consolidated Statements of Cash Flows                   |  |      | 36 | 
|Notes to Consolidated Financial Statements              |  |      | 37 | 

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM














| |                                 
| | --------------------------------
| | -s- Crowe Chizek and Company LLC
| | Crowe Chizek and Company LLC    





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EVERGREENBANCORP, INC.


CONSOLIDATED BALANCE SHEETS


|                                                                                                                                               |                            |                           |         |         |         |   |         |         |         | 
|---------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------- | ------------------------- | ------- | ------- | ------- | - | ------- | ------- | ------- | 
|                                                                                                                                               |                            | December 31,              |        
|                                                                                                                                               |                            |                           |        
|                                                                                                                                               |                            | 2004                      |         |         | 2003    |  
|                                                                                                                                               |                            |                           |         |         |         |  
|                                                                                                                                               |                            | (In thousands, except     |        
|                                                                                                                                               |                            | share and per share data) |        
|Assets                                                                                                                                         |                            |                           |         |         |         |   |         |        
|Cash and due from banks                                                                                                                        |                            | $                         | 9,407   |         |         | $ | 9,701   |        
|Federal funds sold                                                                                                                             |                            |                           | 2,736   |         |         |   | 180     |        
|Interest-bearing deposits in financial institutions                                                                                            |                            |                           | 2       |         |         |   | 744     |        
|                                                                                                                                               |                            |                           |         |         |         |  
|                                                                                                                                               | Cash and cash equivalents  |                           |         | 12,145  |         |   |         | 10,625  |        
|Securities available-for-sale                                                                                                                  |                            |                           | 35,170  |         |         |   | 39,818  |        
|Loans                                                                                                                                          |                            |                           | 159,656 |         |         |   | 138,468 |        
|Allowance for loan losses                                                                                                                      |                            |                           | (1,887  | )       |         |   | (1,636  | )      
|                                                                                                                                               |                            |                           |         |         |         |  
|                                                                                                                                               | Net loans                  |                           |         | 157,769 |         |   |         | 136,832 |        
|Premises and equipment                                                                                                                         |                            |                           | 2,576   |         |         |   | 2,469   |        
|Other real estate owned                                                                                                                        |                            |                           |        |         |         |   | 2,659   |        
|Accrued interest and other assets                                                                                                              |                            |                           | 1,970   |         |         |   | 2,153   |        
|                                                                                                                                               |                            |                           |         |         |         |  
|                                                                                                                                               | Total assets               |                           | $       | 209,630 |         |   | $       | 194,556 |        
|                                                                                                                                               |                            |                           |         |         |         |  
|                                                                                                                                              
|Liabilities                                                                                                                                    |                            |                           |         |         |         |   |         |        
|Deposits                                                                                                                                       |                            |                           |         |         |         |   |         |        
|                                                                                                                                               | Noninterest-bearing        |                           | $       | 54,193  |         |   | $       | 47,132  |        
|                                                                                                                                               | Interest-bearing           |                           |         | 119,608 |         |   |         | 105,551 |        
|                                                                                                                                               |                            |                           |         |         |         |  
|                                                                                                                                               |                            | Total deposits            |         |         | 173,801 |   |         |         | 152,683 | 
|Federal funds purchased                                                                                                                        |                            |                           |        |         |         |   | 3,097   |        
|Federal Home Loan Bank advances                                                                                                                |                            |                           | 11,067  |         |         |   | 15,381  |        
|Accrued expenses and other liabilities                                                                                                         |                            |                           | 2,277   |         |         |   | 1,812   |        
|Junior subordinated debt                                                                                                                       |                            |                           | 5,000   |         |         |   | 5,000   |        
|                                                                                                                                               |                            |                           |         |         |         |  
|                                                                                                                                               | Total liabilities          |                           |         | 192,145 |         |   |         | 177,973 |        
|Stockholders equity                                                                                                                           |                            |                           |         |         |         |   |         |        
|Preferred stock; no par value; 100,000 shares authorized;
    none issued                                                                      |                            |                           |        |         |         |   |        |        
|Common stock and surplus; no par value; 15,000,000 shares
    authorized; 1,494,321 shares issued at 2004;
    1,190,366 shares issued at 2003 |                            |                           | 15,927  |         |         |   | 15,854  |        
|Retained earnings                                                                                                                              |                            |                           | 1,678   |         |         |   | 778     |        
|Accumulated other comprehensive loss                                                                                                           |                            |                           | (120    | )       |         |   | (49     | )      
|                                                                                                                                               |                            |                           |         |         |         |  
|                                                                                                                                               | Total stockholders equity |                           |         | 17,485  |         |   |         | 16,583  |        
|                                                                                                                                               |                            |                           |         |         |         |  
|Total liabilities and stockholders equity                                                                                                     |                            | $                         | 209,630 |         |         | $ | 194,556 |        
|                                                                                                                                               |                            |                           |         |         |         |  



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EVERGREENBANCORP, INC.


CONSOLIDATED STATEMENTS OF INCOME


|                                                    |                                                |                           |       |        |        |   |       |       |        |   |       |        |        | 
|--------------------------------------------------- | ---------------------------------------------- | ------------------------- | ----- | ------ | ------ | - | ----- | ----- | ------ | - | ----- | ------ | ------ | 
|                                                    |                                                | Years Ended December 31,  |      
|                                                    |                                                |                           |      
|                                                    |                                                | 2004                      |       |        | 2003   |   |       | 2002  |       
|                                                    |                                                |                           |       |        |        |   |       |       |       
|                                                    |                                                | (In thousands, except     |      
|                                                    |                                                | per share data)           |      
|Interest income                                     |                                                |                           |       |        |        |   |       |       |        |   |       |       
|                                                    | Loans, including fees                          |                           | $     | 10,243 |        |   | $     | 9,286 |        |   | $     | 10,074 |       
|                                                    | Taxable securities                             |                           |       | 976    |        |   |       | 955   |        |   |       | 705    |       
|                                                    | Tax exempt securities                          |                           |       | 94     |        |   |       | 77    |        |   |       | 70     |       
|                                                    | Federal funds sold and other                   |                           |       | 50     |        |   |       | 90    |        |   |       | 200    |       
|                                                    |                                                |                           |       |        |        |   |       |       |       
|                                                    |                                                | Total interest income     |       |        | 11,363 |   |       |       | 10,408 |   |       |        | 11,049 | 
|Interest expense                                    |                                                |                           |       |        |        |   |       |       |        |   |       |       
|                                                    | Deposits                                       |                           |       | 1,453  |        |   |       | 1,362 |        |   |       | 2,077  |       
|                                                    | Federal funds purchased                        |                           |       | 14     |        |   |       | 20    |        |   |       | 56     |       
|                                                    | Federal Home Loan Bank advances                |                           |       | 541    |        |   |       | 586   |        |   |       | 413    |       
|                                                    | Junior subordinated debt                       |                           |       | 253    |        |   |       | 240   |        |   |       | 166    |       
|                                                    |                                                |                           |       |        |        |   |       |       |       
|                                                    |                                                | Total interest expense    |       |        | 2,261  |   |       |       | 2,208  |   |       |        | 2,712  | 
|                                                    |                                                |                           |       |        |        |   |       |       |       
|Net interest income                                 |                                                |                           | 9,102 |        |        |   | 8,200 |       |        |   | 8,337 |       
|Provision for loan losses                           |                                                |                           | 321   |        |        |   | 233   |       |        |   | 330   |       
|                                                    |                                                |                           |       |        |        |   |       |       |       
|Net interest income after provision for loan losses |                                                |                           | 8,781 |        |        |   | 7,967 |       |        |   | 8,007 |       
|Noninterest income                                  |                                                |                           |       |        |        |   |       |       |        |   |       |       
|                                                    | Service charges on deposit accounts            |                           |       | 1,305  |        |   |       | 1,176 |        |   |       | 1,072  |       
|                                                    | Merchant credit card processing                |                           |       | 145    |        |   |       | 166   |        |   |       | 155    |       
|                                                    | Gain from sales of loans                       |                           |       |       |        |   |       | 10    |        |   |       |       |       
|                                                    | Gain on sales of securities available-for-sale |                           |       | 15     |        |   |       | 56    |        |   |       | 10     |       
|                                                    | Other commissions and fees                     |                           |       | 136    |        |   |       | 180   |        |   |       | 153    |       
|                                                    | Other noninterest income                       |                           |       | 108    |        |   |       | 167   |        |   |       | 147    |       
|                                                    |                                                |                           |       |        |        |   |       |       |       
|                                                    |                                                | Total noninterest income  |       |        | 1,709  |   |       |       | 1,755  |   |       |        | 1,537  | 
|Noninterest expense                                 |                                                |                           |       |        |        |   |       |       |        |   |       |       
|                                                    | Salaries and employee benefits                 |                           |       | 4,259  |        |   |       | 4,036 |        |   |       | 3,879  |       
|                                                    | Occupancy and equipment                        |                           |       | 1,391  |        |   |       | 1,318 |        |   |       | 1,196  |       
|                                                    | Data processing                                |                           |       | 727    |        |   |       | 728   |        |   |       | 670    |       
|                                                    | Marketing                                      |                           |       | 393    |        |   |       | 362   |        |   |       | 216    |       
|                                                    | Loss on other real estate owned                |                           |       | 132    |        |   |       |      |        |   |       |       |       
|                                                    | Other noninterest expense                      |                           |       | 1,700  |        |   |       | 1,752 |        |   |       | 1,560  |       
|                                                    |                                                |                           |       |        |        |   |       |       |       
|                                                    |                                                | Total noninterest expense |       |        | 8,602  |   |       |       | 8,196  |   |       |        | 7,521  | 
|                                                    |                                                |                           |       |        |        |   |       |       |       
|Income before income taxes                          |                                                |                           | 1,888 |        |        |   | 1,526 |       |        |   | 2,023 |       
|Income tax expense                                  |                                                |                           | 606   |        |        |   | 490   |       |        |   | 680   |       
|                                                    |                                                |                           |       |        |        |   |       |       |       
|Net income                                          |                                                | $                         | 1,282 |        |        | $ | 1,036 |       |        | $ | 1,343 |       
|                                                    |                                                |                           |       |        |        |   |       |       |       
|Basic earnings per share                            |                                                | $                         | 0.86  |        |        | $ | 0.70  |       |        | $ | 0.91  |       
|                                                    |                                                |                           |       |        |        |   |       |       |       
|Diluted earnings per share                          |                                                | $                         | 0.84  |        |        | $ | 0.69  |       |        | $ | 0.90  |       
|                                                    |                                                |                           |       |        |        |   |       |       |       



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EVERGREENBANCORP, INC.


CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY


Years Ended December 31, 2004, 2003, and 2002


|                                                                                                                   |            |                                       |           |        |         |   |        |             |       |               |        |       |       |               |      |   |  |   |        |       | 
|------------------------------------------------------------------------------------------------------------------ | ---------- | ------------------------------------- | --------- | ------ | ------- | - | ------ | ----------- | ----- | ------------- | ------ | ----- | ----- | ------------- | ---- | - |  | - | ------ | ----- | 
|                                                                                                                   |            |                                       |           |        |         |   |        | Accumulated |       |               |       
|                                                                                                                   |            |                                       |           | Common |         |   |        |             | Other |               |        |      
|                                                                                                                   |            | Common                                |           |        | Stock   |   |        |             |       | Comprehensive |        |       | Total |              
|                                                                                                                   |            | Stock                                 |           |        | and     |   |        | Retained    |       |               | Income |       |       | Stockholders |     
|                                                                                                                   |            | Shares                                |           |        | Surplus |   |        | Earnings    |       |               | (Loss) |       |       | Equity        |     
|                                                                                                                   |            |                                       |           |        |         |   |        |             |       |               |        |       |       |               |     
|                                                                                                                   |            | (In thousands, except per share data) |          
|Balance at January 1, 2002                                                                                         |            |                                       | 934,817   |        |         | $ | 11,485 |             |       | $             | 3,198  |       |       | $             | 55   |   |  | $ | 14,738 |      
|Comprehensive income                                                                                               |            |                                       |           |        |         |   |        |             |       |               |        |       |       |               |      |   |  |   |        |      
|                                                                                                                   | Net income |                                       |           |       |         |   |        |            |       |               |        | 1,343 |       |               |      |  |  |   |        | 1,343 | 
|Change in net unrealized gain (loss) on securities available for
    sale, net of reclassification and tax effects |            |                                       |          |        |         |   |       |             |       |               |       |       |       |               | 42   |   |  |   | 42     |      
|                                                                                                                   |            |                                       |           |        |         |   |        |             |       |               |        |       |       |               |     
|Total comprehensive income                                                                                         |            |                                       |          |        |         |   |       |             |       |               |       |       |       |               |     |   |  |   | 1,385  |      
|Cash dividend ($.127 per share)                                                                                    |            |                                       |          |        |         |   |       |             |       |               | (168   | )     |       |               |     |   |  |   | (168   | )    
|Stock dividend (15%)                                                                                               |            |                                       | 140,223   |        |         |   | 2,107  |             |       |               | (2,107 | )     |       |               |     |   |  |   |       |      
|Repurchase of fractional shares                                                                                    |            |                                       | (269      | )      |         |   | (4     | )           |       |               |       |       |       |               |     |   |  |   | (4     | )    
|Exercise of stock options and related tax benefit                                                                  |            |                                       | 690       |        |         |   | 9      |             |       |               |       |       |       |               |     |   |  |   | 9      |      
|                                                                                                                   |            |                                       |           |        |         |   |        |             |       |               |        |       |       |               |     
|Balance at December 31, 2002                                                                                       |            |                                       | 1,075,461 |        |         |   | 13,597 |             |       |               | 2,266  |       |       |               | 97   |   |  |   | 15,960 |      
|Comprehensive income                                                                                               |            |                                       |           |        |         |   |        |             |       |               |        |       |       |               |      |   |  |   |        |      
|                                                                                                                   | Net income |                                       |           |       |         |   |        |            |       |               |        | 1,036 |       |               |      |  |  |   |        | 1,036 | 
|Change in net unrealized gain (loss) on securities available for
    sale, net of reclassification and tax effects |            |                                       |          |        |         |   |       |             |       |               |       |       |       |               | (146 | ) |  |   | (146   | )    
|                                                                                                                   |            |                                       |           |        |         |   |        |             |       |               |        |       |       |               |     
|Total comprehensive income                                                                                         |            |                                       |          |        |         |   |       |             |       |               |       |       |       |               |     |   |  |   | 890    |      
|Cash dividends ($.248 per share)                                                                                   |            |                                       |          |        |         |   |       |             |       |               | (366   | )     |       |               |     |   |  |   | (366   | )    
|Stock dividend (10%)                                                                                               |            |                                       | 107,944   |        |         |   | 2,158  |             |       |               | (2,158 | )     |       |               |     |   |  |   |       |      
|Exercise of stock options                                                                                          |            |                                       | 6,961     |        |         |   | 88     |             |       |               |       |       |       |               |     |   |  |   | 88     |      
|Tax benefit from stock related compensation                                                                        |            |                                       |          |        |         |   | 11     |             |       |               |       |       |       |               |     |   |  |   | 11     |      
|                                                                                                                   |            |                                       |           |        |         |   |        |             |       |               |        |       |       |               |     
|Balance at December 31, 2003                                                                                       |            |                                       | 1,190,366 |        |         |   | 15,854 |             |       |               | 778    |       |       |               | (49  | ) |  |   | 16,583 |      
|Comprehensive income                                                                                               |            |                                       |           |        |         |   |        |             |       |               |        |       |       |               |      |   |  |   |        |      
|                                                                                                                   | Net income |                                       |           |       |         |   |        |            |       |               |        | 1,282 |       |               |      |  |  |   |        | 1,282 | 
|Change in net unrealized gain (loss) on securities available for
    sale, net of reclassification and tax effects |            |                                       |          |        |         |   |       |             |       |               |       |       |       |               | (71  | ) |  |   | (71    | )    
|                                                                                                                   |            |                                       |           |        |         |   |        |             |       |               |        |       |       |               |     
|Total comprehensive income                                                                                         |            |                                       |           |        |         |   |        |             |       |               |        |       |       |               |      |   |  |   | 1,211  |      
|Cash dividends ($.256 per share)                                                                                   |            |                                       |          |        |         |   |       |             |       |               | (382   | )     |       |               |     |   |  |   | (382   | )    
|Stock split (five-for-four)                                                                                        |            |                                       | 298,645   |        |         |   |       |             |       |               |       |       |       |               |     |   |  |   |       |      
|Repurchase of fractional shares                                                                                    |            |                                       | (296      | )      |         |   | (7     | )           |       |               |       |       |       |               |     |   |  |   | (7     | )    
|Exercise of stock options                                                                                          |            |                                       | 5,606     |        |         |   | 69     |             |       |               |       |       |       |               |     |   |  |   | 69     |      
|Tax benefit from stock related compensation                                                                        |            |                                       |          |        |         |   | 11     |             |       |               |       |       |       |               |     |   |  |   | 11     |      
|                                                                                                                   |            |                                       |           |        |         |   |        |             |       |               |        |       |       |               |     
|Balance at December 31, 2004                                                                                       |            |                                       | 1,494,321 |        |         | $ | 15,927 |             |       | $             | 1,678  |       |       | $             | (120 | ) |  | $ | 17,485 |      
|                                                                                                                   |            |                                       |           |        |         |   |        |             |       |               |        |       |       |               |     



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EVERGREENBANCORP, INC.


CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME


Years Ended December 31, 2004, 2003 and 2002


|                                                                  |  |                          |       |   |      |   |       |      |  |   |       |  
|----------------------------------------------------------------- |  | ------------------------ | ----- | - | ---- | - | ----- | ---- |  | - | ----- | -
|                                                                  |  | Years Ended December 31, |      
|                                                                  |  |                          |      
|                                                                  |  | 2004                     |       |   | 2003 |   |       | 2002 | 
|                                                                  |  |                          |       |   |      |   |       |      | 
|                                                                  |  | (In thousands)           |      
|Net income                                                        |  | $                        | 1,282 |   |      | $ | 1,036 |      |  | $ | 1,343 |  
|Other comprehensive income:                                       |  |                          |       |   |      |   |       |      |  |   |       |  
|Change in unrealized gain (loss) on securities available for sale |  |                          | (91   | ) |      |   | (166  | )    |  |   | 74    |  
|Reclassification adjustment for gains included in net income      |  |                          | (15   | ) |      |   | (56   | )    |  |   | (10   | )
|                                                                  |  |                          |       |   |      |   |       |      | 
|Net unrealized gains (losses)                                     |  | $                        | (106  | ) |      | $ | (222  | )    |  | $ | 64    |  
|Tax effect                                                        |  |                          | 35    |   |      |   | 76    |      |  |   | (22   | )
|                                                                  |  |                          |       |   |      |   |       |      | 
|Total other comprehensive income (loss)                           |  | $                        | (71   | ) |      | $ | (146  | )    |  | $ | 42    |  
|                                                                  |  |                          |       |   |      |   |       |      | 
|Total comprehensive income                                        |  | $                        | 1,211 |   |      | $ | 890   |      |  | $ | 1,385 |  
|                                                                  |  |                          |       |   |      |   |       |      | 



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EVERGREENBANCORP, INC.


CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                                                            |                                                      |                          |         |      |      |   |         |      |   |   |         |      |  
|------------------------------------------------------------------------------------------- | ---------------------------------------------------- | ------------------------ | ------- | ---- | ---- | - | ------- | ---- | - | - | ------- | ---- | -
|                                                                                            |                                                      | Years Ended December 31, |        
|                                                                                            |                                                      |                          |        
|                                                                                            |                                                      | 2004                     |         |      | 2003 |   |         | 2002 |  
|                                                                                            |                                                      |                          |         |      |      |   |         |      |  
|                                                                                            |                                                      | (In thousands)           |        
|Cash flows from operating activities                                                        |                                                      |                          |         |      |      |   |         |      |   |   |         |     
|Net income                                                                                  |                                                      | $                        | 1,282   |      |      | $ | 1,036   |      |   | $ | 1,343   |     
|Adjustments to reconcile net income to net cash provided by
    operating activities:       |                                                      |                          |         |      |      |   |         |      |   |   |         |     
|                                                                                            | Depreciation                                         |                          |         | 663  |      |   |         | 597  |   |   |         | 492  |  
|                                                                                            | Provision for loan losses                            |                          |         | 321  |      |   |         | 233  |   |   |         | 330  |  
|                                                                                            | Gain from sales of securities                        |                          |         | (15  | )    |   |         | (56  | ) |   |         | (10  | )
|                                                                                            | Gain on sales of loans                               |                          |         |     |      |   |         | (10  | ) |   |         |     |  
|                                                                                            | Write-down of other real estate owned                |                          |         | 132  |      |   |         |     |   |   |         |     |  
|                                                                                            | Amortization of premiums and discounts on securities |                          |         | 79   |      |   |         | 159  |   |   |         | 65   |  
|                                                                                            | Federal Home Loan Bank stock dividends               |                          |         | (40  | )    |   |         | (74  | ) |   |         | (76  | )
|                                                                                            | Dividends reinvested                                 |                          |         | (349 | )    |   |         | (290 | ) |   |         | (251 | )
|                                                                                            | Other changes, net                                   |                          |         | 694  |      |   |         | (291 | ) |   |         | (326 | )
|                                                                                            |                                                      |                          |         |      |      |   |         |      |  
|Net cash provided by operating activities                                                   |                                                      |                          | 2,767   |      |      |   | 1,304   |      |   |   | 1,567   |     
|Cash flows from investing activities                                                        |                                                      |                          |         |      |      |   |         |      |   |   |         |     
|Proceeds from sales, maturities and principal payments on
    securities available for sale |                                                      |                          | 6,390   |      |      |   | 9,524   |      |   |   | 7,047   |     
|Purchases of securities available for sale                                                  |                                                      |                          | (1,523  | )    |      |   | (32,767 | )    |   |   | (16,115 | )   
|Net (increase) decrease in loans                                                            |                                                      |                          | (21,258 | )    |      |   | (20,199 | )    |   |   | 572     |     
|Proceeds from sales of loans                                                                |                                                      |                          |        |      |      |   | 304     |      |   |   |        |     
|Proceeds from sale of other real estate owned                                               |                                                      |                          | 2,527   |      |      |   |        |      |   |   |        |     
|Purchases of premises and equipment                                                         |                                                      |                          | (770    | )    |      |   | (892    | )    |   |   | (741    | )   
|Proceeds from prepayments of securities available-for-sale                                  |                                                      |                          |        |      |      |   | 7,158   |      |   |   | 923     |     
|                                                                                            |                                                      |                          |         |      |      |   |         |      |  
|Net cash used in investing activities                                                       |                                                      |                          | (14,634 | )    |      |   | (36,872 | )    |   |   | (8,314  | )   
|Cash flows from financing activities                                                        |                                                      |                          |         |      |      |   |         |      |   |   |         |     
|Net increase in deposits                                                                    |                                                      |                          | 21,118  |      |      |   | 20,509  |      |   |   | 1,830   |     
|Net decrease in federal funds purchased                                                     |                                                      |                          | (3,097  | )    |      |   | (256    | )    |   |   | (2,244  | )   
|Proceeds from Federal Home Loan Bank advances                                               |                                                      |                          |        |      |      |   | 5,460   |      |   |   | 8,700   |     
|Repayment of Federal Home Loan Bank advances                                                |                                                      |                          | (4,314  | )    |      |   | (1,862  | )    |   |   | (922    | )   
|Proceeds from issuance of junior subordinated debt                                          |                                                      |                          |        |      |      |   |        |      |   |   | 5,000   |     
|Repurchase of common stock                                                                  |                                                      |                          | (7      | )    |      |   |        |      |   |   | (4      | )   
|Proceeds from exercise of stock options                                                     |                                                      |                          | 69      |      |      |   | 88      |      |   |   | 9       |     
|Dividends paid                                                                              |                                                      |                          | (382    | )    |      |   | (366    | )    |   |   | (168    | )   
|                                                                                            |                                                      |                          |         |      |      |   |         |      |  
|Net cash provided by financing activities                                                   |                                                      |                          | 13,387  |      |      |   | 23,573  |      |   |   | 12,201  |     
|                                                                                            |                                                      |                          |         |      |      |   |         |      |  
|Net increase (decrease) in cash and cash equivalents                                        |                                                      |                          | 1,520   |      |      |   | (11,995 | )    |   |   | 5,454   |     
|Cash and cash equivalents at beginning of year                                              |                                                      |                          | 10,625  |      |      |   | 22,620  |      |   |   | 17,166  |     
|                                                                                            |                                                      |                          |         |      |      |   |         |      |  
|Cash and cash equivalents at end of year                                                    |                                                      | $                        | 12,145  |      |      | $ | 10,625  |      |   | $ | 22,620  |     
|                                                                                            |                                                      |                          |         |      |      |   |         |      |  
|Supplemental disclosures of cash flow information                                           |                                                      |                          |         |      |      |   |         |      |   |   |         |     
|Interest paid                                                                               |                                                      | $                        | 2,203   |      |      | $ | 2,221   |      |   | $ | 2,906   |     
|Income taxes paid                                                                           |                                                      |                          | 326     |      |      |   | 760     |      |   |   | 766     |     
|Supplemental disclosures of noncash investing activities                                    |                                                      |                          |         |      |      |   |         |      |   |   |         |     
|Transfer of loan to other real estate owned                                                 |                                                      |                          |        |      |      |   | 2,659   |      |   |   |        |     



36



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##### Table of Contents






EVERGREENBANCORP, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS




|        |                                           
|------- | ------------------------------------------
|Note 1: | Summary of Significant Accounting Policies

Organization.




Operating Segments.


Holding Company Information. ,


Principles of Consolidation and Use of Estimates.




Cash and Cash Equivalents.


Securities.






37



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EVERGREENBANCORP, INC.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)




Loans.






Allowance for Loan Losses.






Premises and Equipment.


Foreclosed Assets.


Income Taxes.


38



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EVERGREENBANCORP, INC.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)


Comprehensive Income.


Postretirement Health Care Benefits.


Fair Values of Financial Instruments.


Loan Commitments and Related Financial Instruments.


Loss Contingencies.


Stock-Based Compensation. Accounting for
Stock-Based Compensation.


|                                                                                      |  |                       |       |  |      |   |       |      |  |   |       | 
|------------------------------------------------------------------------------------- |  | --------------------- | ----- |  | ---- | - | ----- | ---- |  | - | ----- | 
|                                                                                      |  | 2004                  |       |  | 2003 |   |       | 2002 | 
|                                                                                      |  |                       |       |  |      |   |       |      | 
|                                                                                      |  | (In thousands, except |      
|                                                                                      |  | per share data)       |      
|Net income as reported                                                                |  | $                     | 1,282 |  |      | $ | 1,036 |      |  | $ | 1,343 | 
|Deduct: Stock-based compensation expense determined under fair
    value based method |  |                       | 52    |  |      |   | 49    |      |  |   | 38    | 
|                                                                                      |  |                       |       |  |      |   |       |      | 
|Pro forma net income                                                                  |  | $                     | 1,230 |  |      | $ | 987   |      |  | $ | 1,305 | 
|                                                                                      |  |                       |       |  |      |   |       |      | 
|Basic earnings per share as reported                                                  |  | $                     | 0.86  |  |      | $ | 0.70  |      |  | $ | 0.91  | 
|Pro forma basic earnings per share                                                    |  |                       | 0.82  |  |      |   | 0.66  |      |  |   | 0.88  | 
|Diluted earnings per share as reported                                                |  |                       | 0.84  |  |      |   | 0.69  |      |  |   | 0.90  | 
|Pro forma diluted earnings per share                                                  |  |                       | 0.81  |  |      |   | 0.66  |      |  |   | 0.87  | 

39



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EVERGREENBANCORP, INC.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)




|                                |  |      |            |  |      |  |            |      |  |  |            | 
|------------------------------- |  | ---- | ---------- |  | ---- |  | ---------- | ---- |  |  | ---------- | 
|                                |  | 2004 |            |  | 2003 |  |            | 2002 | 
|                                |  |      |            |  |      |  |            |      | 
|Risk-free interest rate         |  |      | 3.65%      |  |      |  | 3.00%      |      |  |  | 4.64%      | 
|Expected option life            |  |      | 7.50 years |  |      |  | 7.50 years |      |  |  | 7.50 years | 
|Expected stock price volatility |  |      | 13%        |  |      |  | 12%        |      |  |  | 13%        | 
|Dividend yield                  |  |      | 1.8%       |  |      |  | 1.1%       |      |  |  | 1.1%       | 

Earnings Per Share.




| |                                                                       
| | ----------------------------------------------------------------------
| | Effect of Newly Issued but Not Yet Effective Accounting
    Standards:





Dividend Restriction.


Reclassifications.




|        |                                        
|------- | ---------------------------------------
|Note 2: | Restrictions on Cash and Due from Banks



40



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EVERGREENBANCORP, INC.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)




|        |           
|------- | ----------
|Note 3: | Securities



|                                                                       |                                     |       |        |        |            |   |       |            |  |   |      |      |  
|---------------------------------------------------------------------- | ----------------------------------- | ----- | ------ | ------ | ---------- | - | ----- | ---------- |  | - | ---- | ---- | -
|                                                                       |                                     |       |        | Gross  |            |   | Gross |           
|                                                                       |                                     | Fair  |        |        | Unrealized |   |       | Unrealized | 
|                                                                       |                                     | Value |        |        | Gains      |   |       | Losses     | 
|                                                                       |                                     |       |        |        |            |   |       |            | 
|December 31, 2004                                                      |                                     |       |        |        |            |   |       |            |  |   |      |     
|U.S. agencies                                                          |                                     | $     | 8,004  |        |            | $ | 21    |            |  | $ | (37  | )   
|States and political subdivisions                                      |                                     |       | 3,555  |        |            |   | 38    |            |  |   | (4   | )   
|Mortgage-backed securities and collateralized mortgage
    obligations |                                     |       | 7,367  |        |            |   | 21    |            |  |   | (36  | )   
|AMF Adjustable Rate Mortgage Fund                                      |                                     |       | 14,832 |        |            |   |      |            |  |   | (185 | )   
|Federal Home Loan Bank stock                                           |                                     |       | 1,412  |        |            |   |      |            |  |   |     |     
|                                                                       |                                     |       |        |        |            |   |       |            | 
|                                                                       | Total securities available-for-sale |       | $      | 35,170 |            |   | $     | 80         |  |   | $    | (262 | )
|                                                                       |                                     |       |        |        |            |   |       |            | 
|December 31, 2003                                                      |                                     |       |        |        |            |   |       |            |  |   |      |     
|U.S. agencies                                                          |                                     | $     | 8,481  |        |            | $ | 30    |            |  | $ | (49  | )   
|States and political subdivisions                                      |                                     |       | 3,567  |        |            |   | 49    |            |  |   | (4   | )   
|Mortgage-backed securities and collateralized mortgage
    obligations |                                     |       | 9,812  |        |            |   | 38    |            |  |   | (49  | )   
|AMF Adjustable Rate Mortgage Fund                                      |                                     |       | 16,586 |        |            |   |      |            |  |   | (91  | )   
|Federal Home Loan Bank stock                                           |                                     |       | 1,372  |        |            |   |      |            |  |   |     |     
|                                                                       |                                     |       |        |        |            |   |       |            | 
|                                                                       | Total securities available-for-sale |       | $      | 39,818 |            |   | $     | 117        |  |   | $    | (193 | )
|                                                                       |                                     |       |        |        |            |   |       |            | 



|                                                                       |       |       |        |        | 
|---------------------------------------------------------------------- | ----- | ----- | ------ | ------ | 
|                                                                       |       | Fair  |       
|                                                                       |       | Value |       
|                                                                       |       |       |       
|Due in one year or less                                                |       | $     | 634    |       
|Due after one year through five years                                  |       |       | 6,932  |       
|Due after five years through ten years                                 |       |       | 3,993  |       
|                                                                       |       |       |       
|                                                                       | Total |       |        | 11,559 | 
|AMF Adjustable Rate Mortgage Fund                                      |       |       | 14,832 |       
|Mortgage-backed securities and collateralized mortgage
    obligations |       |       | 7,367  |       
|Federal Home Loan Bank stock                                           |       |       | 1,412  |       
|                                                                       |       |       |       
|                                                                       | Total |       | $      | 35,170 | 
|                                                                       |       |       |       



|             |  |      |       |   |      |   |       |      |  |   |       | 
|------------ |  | ---- | ----- | - | ---- | - | ----- | ---- |  | - | ----- | 
|             |  | 2004 |       |   | 2003 |   |       | 2002 | 
|             |  |      |       |   |      |   |       |      | 
|Proceeds     |  | $    | 2,525 |   |      | $ | 5,433 |      |  | $ | 5,000 | 
|Gross gains  |  |      | 25    |   |      |   | 56    |      |  |   | 10    | 
|Gross losses |  |      | (10   | ) |      |   |      |      |  |   |      | 



41



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EVERGREENBANCORP, INC.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)






|                                  |  |                     |        |  |                   |   |     |       |  |   |            |  |  |       |      |   |            |   |        |  |  |   |      |  
|--------------------------------- |  | ------------------- | ------ |  | ----------------- | - | --- | ----- |  | - | ---------- |  |  | ----- | ---- | - | ---------- | - | ------ |  |  | - | ---- | -
|                                  |  | Less Than 12 Months |        |  | 12 Months or More |   |     | Total | 
|                                  |  |                     |        |  |                   |   |     |       | 
|                                  |  | Fair                |        |  | Unrealized        |   |     | Fair  |  |   | Unrealized |  |  | Fair  |      |   | Unrealized |  
|Description of Securities         |  | Value               |        |  | Loss              |   |     | Value |  |   | Loss       |  |  | Value |      |   | Loss       |  
|                                  |  |                     |        |  |                   |   |     |       |  |   |            |  |  |       |      |   |            |  
|U.S. agencies                     |  | $                   | 3,495  |  |                   | $ | (25 | )     |  | $ | 988        |  |  | $     | (12  | ) |            | $ | 4,483  |  |  | $ | (37  | )
|State and political subdivisions  |  |                     | 891    |  |                   |   | (4  | )     |  |   |           |  |  |       |     |   |            |   | 891    |  |  |   | (4   | )
|Mortgage-backed securities        |  |                     | 6,210  |  |                   |   | (36 | )     |  |   | 31         |  |  |       |     |   |            |   | 6,240  |  |  |   | (36  | )
|AMF Adjustable Rate Mortgage Fund |  |                     | 283    |  |                   |   | (1  | )     |  |   | 14,549     |  |  |       | (184 | ) |            |   | 14,832 |  |  |   | (185 | )
|                                  |  |                     |        |  |                   |   |     |       |  |   |            |  |  |       |      |   |            |  
|Total temporarily impaired        |  | $                   | 10,879 |  |                   | $ | (66 | )     |  | $ | 15,568     |  |  | $     | (196 | ) |            | $ | 26,446 |  |  | $ | (262 | )
|                                  |  |                     |        |  |                   |   |     |       |  |   |            |  |  |       |      |   |            |  







|        |      
|------- | -----
|Note 4: | Loans





|                           |       |      |        |         |      |   |        |         | 
|-------------------------- | ----- | ---- | ------ | ------- | ---- | - | ------ | ------- | 
|                           |       | 2004 |        |         | 2003 |  
|                           |       |      |        |         |      |  
|Commercial                 |       | $    | 55,563 |         |      | $ | 53,770 |        
|Real estate mortgage       |       |      | 78,673 |         |      |   | 60,934 |        
|Real estate construction   |       |      | 11,538 |         |      |   | 10,911 |        
|Consumer                   |       |      | 13,685 |         |      |   | 12,778 |        
|Other including overdrafts |       |      | 197    |         |      |   | 75     |        
|                           |       |      |        |         |      |  
|                           | Total |      | $      | 159,656 |      |   | $      | 138,468 | 
|                           |       |      |        |         |      |  

42



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EVERGREENBANCORP, INC.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)




|                                                             |       |       |        |        |          |   |        |         |  |   |        |         | 
|------------------------------------------------------------ | ----- | ----- | ------ | ------ | -------- | - | ------ | ------- |  | - | ------ | ------- | 
|                                                             |       | Fixed |        |        | Variable |   |        |        
|                                                             |       | Rate  |        |        | Rate     |   |        | Total   | 
|                                                             |       |       |        |        |          |   |        |         | 
|Due in one year or less                                      |       | $     | 12,212 |        |          | $ | 72,641 |         |  | $ | 84,853 |        
|Due after one year through five years                        |       |       | 26,537 |        |          |   | 40,980 |         |  |   | 67,517 |        
|Due after five years                                         |       |       | 7,073  |        |          |   | 0      |         |  |   | 7,073  |        
|                                                             |       |       |        |        |          |   |        |         | 
|                                                             | Total |       | $      | 45,822 |          |   | $      | 113,621 |  |   | $      | 159,443 | 
|                                                             |       |       |        |        |          |   |        |         | 
|Loans on which the accrual of interest has been discontinued |       |       |        |        |          |   |        |         |  |   | 213    |        
|                                                             |       |       |        |        |          |   |        |         | 
|                                                             | Total |       |        |        |          |   |        |         |  |   | $      | 159,656 | 
|                                                             |       |       |        |        |          |   |        |         | 









|                  |  |   |        |  
|----------------- |  | - | ------ | -
|Beginning balance |  | $ | 1,825  |  
|Repayments        |  |   | (1,716 | )
|Additions         |  |   | 939    |  
|                  |  |   |       
|Ending balance    |  | $ | 1,048  |  
|                  |  |   |       



|        |                          
|------- | -------------------------
|Note 5: | Allowance for Loan Losses



|                                     |  |      |       |   |      |   |       |      |  |   |       |  
|------------------------------------ |  | ---- | ----- | - | ---- | - | ----- | ---- |  | - | ----- | -
|                                     |  | 2004 |       |   | 2003 |   |       | 2002 | 
|                                     |  |      |       |   |      |   |       |      | 
|Balance at January 1                 |  | $    | 1,636 |   |      | $ | 1,690 |      |  | $ | 1,498 |  
|Recoveries credited to the allowance |  |      | 100   |   |      |   | 45    |      |  |   | 53    |  
|Provision for loan losses            |  |      | 321   |   |      |   | 233   |      |  |   | 330   |  
|Loans charged off                    |  |      | (170  | ) |      |   | (332  | )    |  |   | (191  | )
|                                     |  |      |       |   |      |   |       |      | 
|Balance at December 31               |  | $    | 1,887 |   |      | $ | 1,636 |      |  | $ | 1,690 |  
|                                     |  |      |       |   |      |   |       |      | 



|                                                                        |       |      |     |     |      |   |    |     | 
|----------------------------------------------------------------------- | ----- | ---- | --- | --- | ---- | - | -- | --- | 
|                                                                        |       | 2004 |     |     | 2003 |  
|                                                                        |       |      |     |     |      |  
|Impaired loans for which no allowance for loan losses was
    allocated |       | $    | 65  |     |      | $ | 58 |    
|Impaired loans with an allocation of the allowance for loan
    losses  |       |      | 483 |     |      |   | 54 |    
|                                                                        |       |      |     |     |      |  
|                                                                        | Total |      | $   | 548 |      |   | $  | 112 | 
|                                                                        |       |      |     |     |      |  
|Amount of the allowance for loan losses allocated                       |       | $    | 298 |     |      | $ | 11 |    
|                                                                        |       |      |     |     |      |  

43



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EVERGREENBANCORP, INC.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)


|                                             |  |      |     |  |      |   |     |      |  |   |     | 
|-------------------------------------------- |  | ---- | --- |  | ---- | - | --- | ---- |  | - | --- | 
|                                             |  | 2004 |     |  | 2003 |   |     | 2002 | 
|                                             |  |      |     |  |      |   |     |      | 
|Average of impaired loans during the year    |  | $    | 155 |  |      | $ | 832 |      |  | $ | 816 | 
|Interest income recognized during impairment |  |      | 2   |  |      |   |    |      |  |   |    | 
|Cash-basis interest income recognized        |  |      |    |  |      |   |    |      |  |   |    | 



|                                                                                           |  |      |     |  |      |   |     | 
|------------------------------------------------------------------------------------------ |  | ---- | --- |  | ---- | - | --- | 
|                                                                                           |  | 2004 |     |  | 2003 |  
|                                                                                           |  |      |     |  |      |  
|Loans past due 90 days or more and still accruing                                          |  | $    | 5   |  |      | $ | 531 | 
|Loans accounted for on a nonaccrual basis                                                  |  |      | 213 |  |      |   | 112 | 
|If interest on these nonaccrual loans had been recognized, such
    income would have been |  |      | 9   |  |      |   | 9   | 





|        |                       
|------- | ----------------------
|Note 6: | Premises and Equipment



|                                          |       |      |        |       |      |   |        |       | 
|----------------------------------------- | ----- | ---- | ------ | ----- | ---- | - | ------ | ----- | 
|                                          |       | 2004 |        |       | 2003 |  
|                                          |       |      |        |       |      |  
|Equipment and furniture                   |       | $    | 3,948  |       |      | $ | 3,405  |      
|Leasehold improvements                    |       |      | 2,267  |       |      |   | 2,040  |      
|Accumulated depreciation and amortization |       |      | (3,639 | )     |      |   | (2,976 | )    
|                                          |       |      |        |       |      |  
|                                          | Total |      | $      | 2,576 |      |   | $      | 2,469 | 
|                                          |       |      |        |       |      |  







|        |         
|------- | --------
|Note 7: | Deposits





|     |       |   |        |        | 
|---- | ----- | - | ------ | ------ | 
|2005 |       | $ | 41,772 |       
|2006 |       |   | 10,061 |       
|2007 |       |   | 1,922  |       
|2008 |       |   | 117    |       
|     |       |   |       
|     | Total |   | $      | 53,872 | 
|     |       |   |       

44



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EVERGREENBANCORP, INC.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)




|        |                                                                             
|------- | ----------------------------------------------------------------------------
|Note 8: | Federal Funds Purchased, Advances from FHLB and Junior
    Subordinated Debt





|                           |      |              |  |      |        |   |          |              |        |  |        |      |      |   |   |       |        | 
|-------------------------- | ---- | ------------ |  | ---- | ------ | - | -------- | ------------ | ------ |  | ------ | ---- | ---- | - | - | ----- | ------ | 
|                           |      | December 31, | 
|                           |      |              | 
|                           |      | 2004         |  |      | 2003   |  
|                           |      |              |  |      |        |  
|                           |      | Weighted     |  |      |        |   | Weighted |              |        | 
|                           |      | Average Rate |  |      | Amount |   |          | Average Rate |        |  | Amount |     
|                           |      |              |  |      |        |   |          |              |        |  |        |     
|Advances from the FHLB due |      |              |  |      |        |   |          |              |        |  |        |      |      |   |   |      
|                           | 2004 |              |  |     |        |   | $        |             |        |  |        | 1.57 | %    |   | $ | 3,450 |       
|                           | 2005 |              |  | 4.78 | %      |   |          | 3,654        |        |  |        | 4.68 |      |   |   | 4,054 |       
|                           | 2006 |              |  | 4.84 |        |   |          | 2,880        |        |  |        | 4.84 |      |   |   | 2,880 |       
|                           | 2007 |              |  | 4.17 |        |   |          | 2,347        |        |  |        | 4.17 |      |   |   | 2,811 |       
|                           | 2008 |              |  | 3.37 |        |   |          | 1,186        |        |  |        | 3.37 |      |   |   | 1,186 |       
|                           | 2009 |              |  | 4.57 |        |   |          | 1,000        |        |  |        | 4.57 |      |   |   | 1,000 |       
|                           |      |              |  |      |        |   |          |              |        |  |        |     
|                           |      | Total        |  |      | 4.50   | % |          | $            | 11,067 |  |        |      | 3.81 | % |   | $     | 15,381 | 
|                           |      |              |  |      |        |   |          |              |        |  |        |     







45



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EVERGREENBANCORP, INC.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)






|        |                     
|------- | --------------------
|Note 9: | Stockholders Equity





,




|         |             
|-------- | ------------
|Note 10: | Income Taxes



|                  |       |      |      |     |      |   |     |      |  |   |     |     | 
|----------------- | ----- | ---- | ---- | --- | ---- | - | --- | ---- |  | - | --- | --- | 
|                  |       | 2004 |      |     | 2003 |   |     | 2002 | 
|                  |       |      |      |     |      |   |     |      | 
|Currently payable |       | $    | 816  |     |      | $ | 572 |      |  | $ | 708 |    
|Deferred          |       |      | (210 | )   |      |   | (82 | )    |  |   | (28 | )  
|                  |       |      |      |     |      |   |     |      | 
|                  | Total |      | $    | 606 |      |   | $   | 490  |  |   | $   | 680 | 
|                  |       |      |      |     |      |   |     |      | 



|                                                            |       |      |     |     |      |   |     |      |  |   |     |     | 
|----------------------------------------------------------- | ----- | ---- | --- | --- | ---- | - | --- | ---- |  | - | --- | --- | 
|                                                            |       | 2004 |     |     | 2003 |   |     | 2002 | 
|                                                            |       |      |     |     |      |   |     |      | 
|Federal income tax at statutory rates                       |       | $    | 642 |     |      | $ | 519 |      |  | $ | 688 |    
|Decrease in taxes resulting from tax-exempt interest income |       |      | (30 | )   |      |   | (31 | )    |  |   | (28 | )  
|Nondeductible expenses and other                            |       |      | (6  | )   |      |   | 2   |      |  |   | 20  |    
|                                                            |       |      |     |     |      |   |     |      | 
|                                                            | Total |      | $   | 606 |      |   | $   | 490  |  |   | $   | 680 | 
|                                                            |       |      |     |     |      |   |     |      | 

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EVERGREENBANCORP, INC.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)




|                       |                                                         |      |       |      |      |  |       |      |  
|---------------------- | ------------------------------------------------------- | ---- | ----- | ---- | ---- |  | ----- | ---- | -
|                       |                                                         | 2004 |       |      | 2003 | 
|                       |                                                         |      |       |      |      | 
|DEFERRED TAX ASSET     |                                                         |      |       |      |      |  |       |     
|                       | Provision for loan losses                               |      | $     | 559  |      |  | $     | 472  |  
|                       | Postretirement health care benefits                     |      |       | 414  |      |  |       | 315  |  
|                       | Unamortized loan fees, net of loan costs                |      |       | 236  |      |  |       | 217  |  
|                       | Accrued vacation pay                                    |      |       | 89   |      |  |       | 80   |  
|                       | Unrealized losses on securities available-for-sale, net |      |       | 62   |      |  |       | 25   |  
|                       |                                                         |      |       |      |      | 
|                       |                                                         |      | 1,360 |      |      |  | 1,109 |     
|                       |                                                         |      |       |      |      | 
|DEFERRED TAX LIABILITY |                                                         |      |       |      |      |  |       |     
|                       | Federal Home Loan Bank stock dividends                  |      | $     | (258 | )    |  | $     | (242 | )
|                       | Depreciation                                            |      |       | (144 | )    |  |       | (171 | )
|                       | Other                                                   |      |       | (15  | )    |  |       |     |  
|                       |                                                         |      |       |      |      | 
|                       |                                                         |      | (417  | )    |      |  | (413  | )   
|                       |                                                         |      |       |      |      | 
|                       | Net deferred income tax asset                           |      | $     | 943  |      |  | $     | 696  |  
|                       |                                                         |      |       |      |      | 



|         |                  
|-------- | -----------------
|Note 11: | Stock Option Plan







|                                         |  |        |         |           |       |   |       |        |           |  |         |   |  |           |       |  |       |  |         |   |  |   |       | 
|---------------------------------------- |  | ------ | ------- | --------- | ----- | - | ----- | ------ | --------- |  | ------- | - |  | --------- | ----- |  | ----- |  | ------- | - |  | - | ----- | 
|                                         |  | 2004   |         |           | 2003  |   |       | 2002   |          
|                                         |  |        |         |           |       |   |       |        |          
|                                         |  |        |         | Weighted- |       |   |       |        | Weighted- |  |         |   |  | Weighted- |      
|                                         |  |        |         | Average   |       |   |       |        | Average   |  |         |   |  | Average   |      
|                                         |  |        |         | Exercise  |       |   |       |        | Exercise  |  |         |   |  | Exercise  |      
|                                         |  | Shares |         |           | Price |   |       | Shares |           |  | Price   |   |  | Shares    |       |  | Price | 
|                                         |  |        |         |           |       |   |       |        |           |  |         |   |  |           |       |  |       | 
|Outstanding at the beginning of the year |  |        | 132,578 |           |       | $ | 10.16 |        |           |  | 107,630 |   |  | $         | 9.70  |  |       |  | 89,855  |   |  | $ | 9.24  | 
|Granted                                  |  |        | 23,750  |           |       |   | 14.20 |        |           |  | 41,938  |   |  |           | 11.86 |  |       |  | 28,463  |   |  |   | 10.69 | 
|Exercised                                |  |        | (6,674  | )         |       |   | 10.35 |        |           |  | (9,533  | ) |  |           | 9.18  |  |       |  | (949    | ) |  |   | 9.12  | 
|Forfeited                                |  |        | (6,074  | )         |       |   | 11.04 |        |           |  | (7,457  | ) |  |           | 11.07 |  |       |  | (9,739  | ) |  |   | 9.24  | 
|                                         |  |        |         |           |       |   |       |        |           |  |         |   |  |           |       |  |       | 
|Outstanding at the end of the year       |  |        | 143,580 |           |       | $ | 10.86 |        |           |  | 132,578 |   |  | $         | 10.16 |  |       |  | 107,630 |   |  | $ | 9.70  | 
|                                         |  |        |         |           |       |   |       |        |           |  |         |   |  |           |       |  |       | 

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EVERGREENBANCORP, INC.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)




|                           |  |         |      |             |        |           |             |                  |  |  |            |          |  |       |        |  |  |   |       | 
|-------------------------- |  | ------- | ---- | ----------- | ------ | --------- | ----------- | ---------------- |  |  | ---------- | -------- |  | ----- | ------ |  |  | - | ----- | 
|                           |  |         |      | Outstanding |        |           | Exercisable |                 
|                           |  |         |      |             |        |           |             |                 
|                           |  |         |      |             |        | Weighted- |             |                  |  |  | Weighted-  |         
|                           |  |         |      |             |        | Average   |             |                  |  |  | Average    |         
|                           |  | Year of |      |             |        |           | Remaining   |                  |  |  |            | Exercise | 
|Exercise Price             |  | Grant   |      |             | Number |           |             | Contractual Life |  |  | Number     |          |  | Price |       
|                           |  |         |      |             |        |           |             |                  |  |  |            |          |  |       |       
|$14.20                     |  |         | 2004 |             |        |           | 23,750      |                  |  |  | 9.01 years |          |  |       |       |  |  | $ | 14.20 | 
|11.86                      |  |         | 2003 |             |        |           | 34,382      |                  |  |  | 6.62 years |          |  |       | 8,248  |  |  |   | 11.86 | 
|10.69                      |  |         | 2002 |             |        |           | 25,149      |                  |  |  | 7.30 years |          |  |       | 10,439 |  |  |   | 10.69 | 
|9.34                       |  |         | 2001 |             |        |           | 31,998      |                  |  |  | 6.28 years |          |  |       | 21,337 |  |  |   | 9.34  | 
|9.12                       |  |         | 2000 |             |        |           | 28,301      |                  |  |  | 5.81 years |          |  |       | 22,643 |  |  |   | 9.12  | 
|                           |  |         |      |             |        |           |             |                  |  |  |            |          |  |       |       
|Outstanding at end of year |  |         |      |             |        |           | 143,580     |                  |  |  | 6.91 years |          |  |       | 62,667 |  |  | $ | 11.04 | 
|                           |  |         |      |             |        |           |             |                  |  |  |            |          |  |       |       



|         |                                   
|-------- | ----------------------------------
|Note 12: | Earnings Per Share of Common Stock





|                                           |                                                                                                  |      |      |           |      |   |      |           |  |   |      |           | 
|------------------------------------------ | ------------------------------------------------------------------------------------------------ | ---- | ---- | --------- | ---- | - | ---- | --------- |  | - | ---- | --------- | 
|                                           |                                                                                                  | 2004 |      |           | 2003 |   |      | 2002      | 
|                                           |                                                                                                  |      |      |           |      |   |      |           | 
|INCOME (NUMERATOR):                        |                                                                                                  |      |      |           |      |   |      |           |  |   |      |          
|                                           | Net Income                                                                                       |      | $    | 1,282     |      |   | $    | 1,036     |  |   | $    | 1,343     | 
|                                           |                                                                                                  |      |      |           |      |   |      |           | 
|SHARES (DENOMINATOR):                      |                                                                                                  |      |      |           |      |   |      |           |  |   |      |          
|                                           | Weighted average number of common stock shares
    outstanding  basic                           |      |      | 1,491,734 |      |   |      | 1,482,441 |  |   |      | 1,478,679 | 
|                                           | Dilutive effect of outstanding employee and director stock
    options                           |      |      | 25,877    |      |   |      | 16,147    |  |   |      | 12,884    | 
|                                           |                                                                                                  |      |      |           |      |   |      |           | 
|                                           | Weighted average number of common stock shares outstanding and
    assumed conversions  diluted |      |      | 1,517,611 |      |   |      | 1,498,588 |  |   |      | 1,491,563 | 
|                                           |                                                                                                  |      |      |           |      |   |      |           | 
|Basic earnings per share of common stock   |                                                                                                  | $    | 0.86 |           |      | $ | 0.70 |           |  | $ | 0.91 |          
|                                           |                                                                                                  |      |      |           |      |   |      |           | 
|Diluted earnings per share of common stock |                                                                                                  | $    | 0.84 |           |      | $ | 0.69 |           |  | $ | 0.90 |          
|                                           |                                                                                                  |      |      |           |      |   |      |           | 



|         |                    
|-------- | -------------------
|Note 13: | Retirement Benefits





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EVERGREENBANCORP, INC.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)




Employers Accounting for Postretirement Benefits Other
Than Pensions.




|                                      |  |      |     |  |      |   |     |      |  |   |     |  
|------------------------------------- |  | ---- | --- |  | ---- | - | --- | ---- |  | - | --- | -
|                                      |  | 2004 |     |  | 2003 |   |     | 2002 | 
|                                      |  |      |     |  |      |   |     |      | 
|Service cost                          |  | $    | 90  |  |      | $ | 68  |      |  | $ | 59  |  
|Interest cost                         |  |      | 87  |  |      |   | 73  |      |  |   | 71  |  
|Amortization of transition obligation |  |      | 41  |  |      |   | 41  |      |  |   | 41  |  
|Recognized actuarial (gain) loss      |  |      |    |  |      |   | (4  | )    |  |   | (4  | )
|                                      |  |      |     |  |      |   |     |      | 
|Net periodic benefit cost             |  | $    | 218 |  |      | $ | 178 |      |  | $ | 167 |  
|                                      |  |      |     |  |      |   |     |      | 



|                                        |  |      |       |   |      |   |       |      |  |   |       |  
|--------------------------------------- |  | ---- | ----- | - | ---- | - | ----- | ---- |  | - | ----- | -
|                                        |  | 2004 |       |   | 2003 |   |       | 2002 | 
|                                        |  |      |       |   |      |   |       |      | 
|Benefit obligation at beginning of year |  | $    | 1,337 |   |      | $ | 1,204 |      |  | $ | 914   |  
|Service cost                            |  |      | 90    |   |      |   | 68    |      |  |   | 59    |  
|Interest cost                           |  |      | 87    |   |      |   | 73    |      |  |   | 71    |  
|Actuarial loss                          |  |      | 128   |   |      |   | 24    |      |  |   | 186   |  
|Benefits paid                           |  |      | (37   | ) |      |   | (32   | )    |  |   | (26   | )
|                                        |  |      |       |   |      |   |       |      | 
|Benefit obligation at end of year       |  | $    | 1,605 |   |      | $ | 1,337 |      |  | $ | 1,204 |  
|                                        |  |      |       |   |      |   |       |      | 



|                                               |  |      |     |   |      |   |     |      |  |   |     |  
|---------------------------------------------- |  | ---- | --- | - | ---- | - | --- | ---- |  | - | --- | -
|                                               |  | 2004 |     |   | 2003 |   |     | 2002 | 
|                                               |  |      |     |   |      |   |     |      | 
|Fair value of plan assets at beginning of year |  | $    |    |   |      | $ |    |      |  | $ |    |  
|Employer contribution                          |  |      | 37  |   |      |   | 32  |      |  |   | 26  |  
|Benefits paid                                  |  |      | (37 | ) |      |   | (32 | )    |  |   | (26 | )
|                                               |  |      |     |   |      |   |     |      | 
|Fair value of plan assets at end of year       |  | $    |    |   |      | $ |    |      |  | $ |    |  
|                                               |  |      |     |   |      |   |     |      | 



|                                   |  |      |        |   |      |   |        |      |  |   |        |  
|---------------------------------- |  | ---- | ------ | - | ---- | - | ------ | ---- |  | - | ------ | -
|                                   |  | 2004 |        |   | 2003 |   |        | 2002 | 
|                                   |  |      |        |   |      |   |        |      | 
|Funded status                      |  | $    | (1,605 | ) |      | $ | (1,337 | )    |  | $ | (1,204 | )
|Unrecognized transition obligation |  |      | 326    |   |      |   | 367    |      |  |   | 407    |  
|Unrecognized actuarial gain        |  |      | 60     |   |      |   | (69    | )    |  |   | (97    | )
|                                   |  |      |        |   |      |   |        |      | 
|Accrued benefit cost               |  | $    | (1,219 | ) |      | $ | (1,039 | )    |  | $ | (894   | )
|                                   |  |      |        |   |      |   |        |      | 

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EVERGREENBANCORP, INC.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)








|                                                        |  |               |     |  |               |   |      |  
|------------------------------------------------------- |  | ------------- | --- |  | ------------- | - | ---- | -
|                                                        |  | 1-Percentage- |     |  | 1-Percentage- |  
|                                                        |  | Point         |     |  | Point         |  
|                                                        |  | Increase      |     |  | Decrease      |  
|                                                        |  |               |     |  |               |  
|Effect on total of service and interest cost components |  | $             | 42  |  |               | $ | (31  | )
|                                                        |  |               |     |  |               |  
|Effect on benefit obligation                            |  | $             | 303 |  |               | $ | (239 | )
|                                                        |  |               |     |  |               |  



|          |  |   |     | 
|--------- |  | - | --- | 
|2005      |  | $ | 55  | 
|2006      |  |   | 54  | 
|2007      |  |   | 57  | 
|2008      |  |   | 65  | 
|2009      |  |   | 76  | 
|2010-2014 |  |   | 435 | 



|         |       
|-------- | ------
|Note 14: | Leases





|           |       |   |     |       | 
|---------- | ----- | - | --- | ----- | 
|2005       |       | $ | 550 |      
|2006       |       |   | 554 |      
|2007       |       |   | 289 |      
|2008       |       |   | 174 |      
|2009       |       |   | 138 |      
|Thereafter |       |   | 172 |      
|           |       |   |    
|           | Total |   | $   | 1,877 | 
|           |       |   |    

rd


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EVERGREENBANCORP, INC.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)




|           |       |   |       |       | 
|---------- | ----- | - | ----- | ----- | 
|2005       |       | $ | 126   |      
|2006       |       |   | 195   |      
|2007       |       |   | 202   |      
|2008       |       |   | 210   |      
|2009       |       |   | 218   |      
|Thereafter |       |   | 1,287 |      
|           |       |   |      
|           | Total |   | $     | 2,238 | 
|           |       |   |      



|         |                                
|-------- | -------------------------------
|Note 15: | Agreements with Related Parties











|         |                              
|-------- | -----------------------------
|Note 16: | Commitments and Contingencies







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EVERGREENBANCORP, INC.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)




|                                                   |  |      |        |  |      |   |        | 
|-------------------------------------------------- |  | ---- | ------ |  | ---- | - | ------ | 
|                                                   |  | 2004 |        |  | 2003 |  
|                                                   |  |      |        |  |      |  
|Lines of credit                                    |  | $    | 44,656 |  |      | $ | 36,607 | 
|Commitments to extend credit                       |  |      | 1,935  |  |      |   |       | 
|Standby letters of credit and similar arrangements |  |      | 95     |  |      |   | 195    | 



|         |                                     
|-------- | ------------------------------------
|Note 17: | Fair Values of Financial Instruments



|                                                                               |  |       |         |  |       |   |         |       |  |   |         |  |  |   |         | 
|------------------------------------------------------------------------------ |  | ----- | ------- |  | ----- | - | ------- | ----- |  | - | ------- |  |  | - | ------- | 
|                                                                               |  | 2004  |         |  | 2003  |  
|                                                                               |  |       |         |  |       |  
|                                                                               |  | Book  |         |  | Fair  |   |         | Book  |  |   | Fair    | 
|                                                                               |  | Value |         |  | Value |   |         | Value |  |   | Value   | 
|                                                                               |  |       |         |  |       |   |         |       |  |   |         | 
|FINANCIAL ASSETS                                                               |  |       |         |  |       |   |         |       |  |   |         |  |  |   |         | 
|Cash and cash equivalents                                                      |  | $     | 12,145  |  |       | $ | 12,145  |       |  | $ | 10,625  |  |  | $ | 10,625  | 
|Securities available-for-sale                                                  |  |       | 35,170  |  |       |   | 35,170  |       |  |   | 39,818  |  |  |   | 39,818  | 
|Net loans                                                                      |  |       | 157,769 |  |       |   | 157,491 |       |  |   | 136,832 |  |  |   | 136,710 | 
|Accrued interest receivable                                                    |  |       | 684     |  |       |   | 684     |       |  |   | 641     |  |  |   | 641     | 
|FINANCIAL LIABILITIES                                                          |  |       |         |  |       |   |         |       |  |   |         |  |  |   |         | 
|Deposits                                                                       |  | $     | 173,801 |  |       | $ | 173,639 |       |  | $ | 152,683 |  |  | $ | 152,663 | 
|Federal funds purchased and securities sold under agreements to
    repurchase |  |       |        |  |       |   |        |       |  |   | 3,097   |  |  |   | 3,097   | 
|Advances from Federal Home Loan Bank                                           |  |       | 11,067  |  |       |   | 11,194  |       |  |   | 15,381  |  |  |   | 15,785  | 
|Junior subordinated debt                                                       |  |       | 5,000   |  |       |   | 5,000   |       |  |   | 5,000   |  |  |   | 5,000   | 
|Accrued interest payable                                                       |  |       | 190     |  |       |   | 190     |       |  |   | 142     |  |  |   | 142     | 







|         |                                
|-------- | -------------------------------
|Note 18: | Regulatory Capital Requirements



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EVERGREENBANCORP, INC.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)










|                                                      |      |        |        |                  |          |             |                   |                  |                  |               |        |        |  |        |      |      |       |   |        |        |  |  |       |       | 
|----------------------------------------------------- | ---- | ------ | ------ | ---------------- | -------- | ----------- | ----------------- | ---------------- | ---------------- | ------------- | ------ | ------ |  | ------ | ---- | ---- | ----- | - | ------ | ------ |  |  | ----- | ----- | 
|                                                      |      |        |        |                  |          |             |                   |                  |                  | Minimum to be |       
|                                                      |      |        |        |                  |          |             |                   | Well Capitalized |                 
|                                                      |      |        |        |                  |          | Minimum for |                   |                  | under the Prompt |              
|                                                      |      |        |        | Capital Adequacy |          |             | Corrective Action |                 
|                                                      |      | Actual |        |                  | Purposes |             |                   | Provisions       |                 
|                                                      |      |        |        |                  |          |             |                   |                  |                 
|                                                      |      | Amount |        |                  | Ratio    |             |                   | Amount           |                  |               | Ratio  |        |  | Amount |      |      | Ratio |  
|                                                      |      |        |        |                  |          |             |                   |                  |                  |               |        |        |  |        |      |      |       |  
|December 31, 2004                                     |      |        |        |                  |          |             |                   |                  |                  |               |        |        |  |        |      |      |       |   |        |        |  |  |       |      
|Total capital (to risk-weighted assets) Consolidated  |      | $      | 24,305 |                  |          |             | 14.03             | %                |                  | $             | 13,826 |        |  |        | 8.00 | %    |       | $ | 17,282 |        |  |  | 10.00 | %    
|                                                      | Bank |        |        | 23,651           |          |             |                   | 13.71            |                  |               |        | 13,805 |  |        |      | 8.00 |       |   |        | 17,256 |  |  |       | 10.00 | 
|Tier 1 capital (to risk-weighted assets) Consolidated |      |        | 22,419 |                  |          |             | 12.94             |                  |                  |               | 6,913  |        |  |        | 4.00 |      |       |   | 10,369 |        |  |  | 6.00  |      
|                                                      | Bank |        |        | 21,764           |          |             |                   | 12.61            |                  |               |        | 6,902  |  |        |      | 4.00 |       |   |        | 10,354 |  |  |       | 6.00  | 
|Tier 1 capital (to average assets)(1) Consolidated    |      |        | 22,419 |                  |          |             | 11.07             |                  |                  |               | 8,083  |        |  |        | 4.00 |      |       |   | 10,104 |        |  |  | 5.00  |      
|                                                      | Bank |        |        | 21,764           |          |             |                   | 10.77            |                  |               |        | 8,083  |  |        |      | 4.00 |       |   |        | 10,104 |  |  |       | 5.00  | 
|December 31, 2003                                     |      |        |        |                  |          |             |                   |                  |                  |               |        |        |  |        |      |      |       |   |        |        |  |  |       |      
|Total capital (to risk-weighted assets) Consolidated  |      | $      | 23,178 |                  |          |             | 15.19             | %                |                  | $             | 12,209 |        |  |        | 8.00 | %    |       | $ | 15,262 |        |  |  | 10.00 | %    
|                                                      | Bank |        |        | 22,293           |          |             |                   | 14.63            |                  |               |        | 12,194 |  |        |      | 8.00 |       |   |        | 15,242 |  |  |       | 10.00 | 
|Tier 1 capital (to risk-weighted assets) Consolidated |      |        | 21,542 |                  |          |             | 14.11             |                  |                  |               | 6,105  |        |  |        | 4.00 |      |       |   | 9,157  |        |  |  | 6.00  |      
|                                                      | Bank |        |        | 20,657           |          |             |                   | 13.55            |                  |               |        | 6,097  |  |        |      | 4.00 |       |   |        | 9,145  |  |  |       | 6.00  | 
|Tier 1 capital (to average assets)(1) Consolidated    |      |        | 21,542 |                  |          |             | 11.76             |                  |                  |               | 7,326  |        |  |        | 4.00 |      |       |   | 9,153  |        |  |  | 5.00  |      
|                                                      | Bank |        |        | 20,657           |          |             |                   | 11.30            |                  |               |        | 7,314  |  |        |      | 4.00 |       |   |        | 9,143  |  |  |       | 5.00  | 






|    |                                       
|--- | --------------------------------------
|(1) | Also referred to as the leverage ratio

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EVERGREENBANCORP, INC.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)


Note 19: Condensed Financial Statements of Bancorp






|                                     |                                            |      |        |        |      |   |        |        | 
|------------------------------------ | ------------------------------------------ | ---- | ------ | ------ | ---- | - | ------ | ------ | 
|                                     |                                            | 2004 |        |        | 2003 |  
|                                     |                                            |      |        |        |      |  
|Assets                               |                                            |      |        |        |      |   |        |       
|Due from EvergreenBank               |                                            | $    | 438    |        |      | $ | 532    |       
|Investment in subsidiaries           |                                            |      | 21,830 |        |      |   | 20,698 |       
|Other assets                         |                                            |      | 284    |        |      |   | 353    |       
|                                     |                                            |      |        |        |      |  
|                                     | Total assets                               |      | $      | 22,552 |      |   | $      | 21,583 | 
|                                     |                                            |      |        |        |      |  
|                                    
|Liabilities and stockholders equity |                                            |      |        |        |      |   |        |       
|Stockholders equity                 |                                            | $    | 17,485 |        |      | $ | 16,583 |       
|Junior subordinated debt             |                                            |      | 5,000  |        |      |   | 5,000  |       
|Other liabilities                    |                                            |      | 67     |        |      |   |       |       
|                                     |                                            |      |        |        |      |  
|                                     | Total liabilities and stockholders equity |      | $      | 22,552 |      |   | $      | 21,583 | 
|                                     |                                            |      |        |        |      |  



|                                                                                       |            |      |       |       |      |   |     |       |  |   |       |       | 
|-------------------------------------------------------------------------------------- | ---------- | ---- | ----- | ----- | ---- | - | --- | ----- |  | - | ----- | ----- | 
|                                                                                       |            | 2004 |       |       | 2003 |   |     | 2002  | 
|                                                                                       |            |      |       |       |      |   |     |       | 
|Dividend income from EvergreenBank                                                     |            | $    | 495   |       |      | $ | 886 |       |  | $ | 443   |      
|Interest expense                                                                       |            |      | 253   |       |      |   | 240 |       |  |   | 166   |      
|Other expense                                                                          |            |      | 370   |       |      |   | 3   |       |  |   | 42    |      
|                                                                                       |            |      |       |       |      |   |     |       | 
|Income (loss) before income taxes and equity in undistributed
    income of subsidiary |            |      | (128  | )     |      |   | 643 |       |  |   | 235   |      
|Income tax benefit                                                                     |            |      | 208   |       |      |   | 83  |       |  |   | 72    |      
|Equity in undistributed income of subsidiary                                           |            |      | 1,202 |       |      |   | 310 |       |  |   | 1,036 |      
|                                                                                       |            |      |       |       |      |   |     |       | 
|                                                                                       | Net income |      | $     | 1,282 |      |   | $   | 1,036 |  |   | $     | 1,343 | 
|                                                                                       |            |      |       |       |      |   |     |       | 

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EVERGREENBANCORP, INC.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)




|                                                        |                                                                                       |                                                |      |       |        |   |      |       |      |   |        |       |        |  
|------------------------------------------------------- | ------------------------------------------------------------------------------------- | ---------------------------------------------- | ---- | ----- | ------ | - | ---- | ----- | ---- | - | ------ | ----- | ------ | -
|                                                        |                                                                                       | 2004                                           |      |       | 2003   |   |      | 2002  |     
|                                                        |                                                                                       |                                                |      |       |        |   |      |       |     
|Cash flows from operating activities                    |                                                                                       |                                                |      |       |        |   |      |       |      |   |        |      
|                                                        | Net income                                                                            |                                                | $    | 1,282 |        |   | $    | 1,036 |      |   | $      | 1,343 |       
|                                                        | Adjustments to reconcile net income to net cash provided by
    operating activities: |                                                |      |       |        |   |      |       |      |   |        |       |       
|                                                        |                                                                                       | Equity in undistributed income of subsidiary   |      |       | (1,202 | ) |      |       | (310 | ) |        |       | (1,036 | )
|                                                        |                                                                                       | Other changes, net                             |      |       | 146    |   |      |       | (79  | ) |        |       | (55    | )
|                                                        |                                                                                       |                                                |      |       |        |   |      |       |     
|Net cash provided by operating activities               |                                                                                       |                                                | 226  |       |        |   | 647  |       |      |   | 252    |      
|Cash flows from investing activities                    |                                                                                       |                                                |      |       |        |   |      |       |      |   |        |      
|                                                        |                                                                                       | Capital contributed to subsidiary              |      |       |       |   |      |       |     |   |        |       | (4,800 | )
|                                                        |                                                                                       | Investment in EvergreenBancorp Capital Trust I |      |       |       |   |      |       |     |   |        |       | (155   | )
|                                                        |                                                                                       |                                                |      |       |        |   |      |       |     
|Cash flows used in investing activities                 |                                                                                       |                                                |     |       |        |   |     |       |      |   | (4,955 | )    
|Cash flows from financing activities                    |                                                                                       |                                                |      |       |        |   |      |       |      |   |        |      
|                                                        | Payment of dividends                                                                  |                                                |      | (382  | )      |   |      | (366  | )    |   |        | (168  | )     
|                                                        | Repurchase of fractional shares                                                       |                                                |      | (7    | )      |   |      |      |      |   |        | (4    | )     
|                                                        | Proceeds from issuance of subordinated debt, net                                      |                                                |      |      |        |   |      |      |      |   |        | 4,946 |       
|                                                        | Proceeds from exercise of stock options                                               |                                                |      | 69    |        |   |      | 88    |      |   |        | 9     |       
|                                                        |                                                                                       |                                                |      |       |        |   |      |       |     
|Net cash provided by (used in) financing activities     |                                                                                       |                                                | (320 | )     |        |   | (278 | )     |      |   | 4,783  |      
|                                                        |                                                                                       |                                                |      |       |        |   |      |       |     
|Net increase (decrease) in cash                         |                                                                                       |                                                | (94  | )     |        |   | 369  |       |      |   | 80     |      
|Cash on deposit with EvergreenBank at beginning of year |                                                                                       |                                                | 532  |       |        |   | 163  |       |      |   | 83     |      
|                                                        |                                                                                       |                                                |      |       |        |   |      |       |     
|Cash on deposit with EvergreenBank at end of year       |                                                                                       | $                                              | 438  |       |        | $ | 532  |       |      | $ | 163    |      
|                                                        |                                                                                       |                                                |      |       |        |   |      |       |     

Note 20: Selected Quarterly Data (Unaudited)


|     |                            |                                       |   |       |         |  |   |              |  |  |             |       |  |  |   |       | 
|---- | -------------------------- | ------------------------------------- | - | ----- | ------- |  | - | ------------ |  |  | ----------- | ----- |  |  | - | ----- | 
|     |                            | Quarter Ended                         |  
|     |                            |                                       |  
|     |                            | March 31                              |   |       | June 30 |  |   | September 30 |  |  | December 31 |      
|     |                            |                                       |   |       |         |  |   |              |  |  |             |      
|     |                            | (In thousands, except per share data) |  
|2004 |                            |                                       |   |       |         |  |   |              |  |  |             |       |  |  |   |      
|     | Interest income            |                                       | $ | 2,725 |         |  | $ | 2,702        |  |  | $           | 2,842 |  |  | $ | 3,094 | 
|     | Net interest income        |                                       |   | 2,193 |         |  |   | 2,158        |  |  |             | 2,287 |  |  |   | 2,464 | 
|     | Net income                 |                                       |   | 286   |         |  |   | 280          |  |  |             | 301   |  |  |   | 415   | 
|     | Basic earnings per share   |                                       | $ | 0.19  |         |  | $ | 0.18         |  |  | $           | 0.20  |  |  | $ | 0.28  | 
|     | Diluted earnings per share |                                       |   | 0.19  |         |  |   | 0.18         |  |  |             | 0.20  |  |  |   | 0.27  | 
|2003 |                            |                                       |   |       |         |  |   |              |  |  |             |       |  |  |   |      
|     | Interest income            |                                       | $ | 2,610 |         |  | $ | 2,533        |  |  | $           | 2,574 |  |  | $ | 2,691 | 
|     | Net interest income        |                                       |   | 2,023 |         |  |   | 1,980        |  |  |             | 2,051 |  |  |   | 2,146 | 
|     | Net income                 |                                       |   | 298   |         |  |   | 223          |  |  |             | 234   |  |  |   | 281   | 
|     | Basic earnings per share   |                                       | $ | 0.20  |         |  | $ | 0.15         |  |  | $           | 0.16  |  |  | $ | 0.19  | 
|     | Diluted earnings per share |                                       |   | 0.20  |         |  |   | 0.15         |  |  |             | 0.16  |  |  |   | 0.18  | 

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##### Table of Contents



EVERGREENBANCORP, INC.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)







|        |                                                                                         
|------- | ----------------------------------------------------------------------------------------
|Item 9. | Changes in and Disagreements with Accountants on
    Accounting and Financial Disclosure








|         |                        
|-------- | -----------------------
|Item 9A. | Controls and Procedures










|         |                  
|-------- | -----------------
|Item 9B. | Other Information








PART III







|         |                                                   
|-------- | --------------------------------------------------
|Item 10. | Directors and Executive Officers of the Registrant







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##### Table of Contents








|         |                       
|-------- | ----------------------
|Item 11. | Executive Compensation








|         |                                                                   
|-------- | ------------------------------------------------------------------
|Item 12. | Security Ownership of Certain Beneficial Owners and
    Management








|         |                                               
|-------- | ----------------------------------------------
|Item 13. | Certain Relationships and Related Transactions








|         |                                       
|-------- | --------------------------------------
|Item 14. | Principal Accountant Fees and Services






PART IV







|         |                                           
|-------- | ------------------------------------------
|Item 15. | Exhibits and Financial Statement Schedules

Financial Statements




Financial Statement Schedules




Exhibits


|            |      |             |  |                                                                                                                                                                                                                        
|----------- | ---- | ----------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |      | Description
|            |      |            
|            | 3.1  |             |  | Restated Articles of Incorporation of Registrant dated
    July 25, 2001 (incorporated by reference to
    Registrants Form 10-K for the year ended December 31,
    2001)                                            
|           
|            | 3.2  |             |  | Bylaws of Registrant dated February 14, 2001 (incorporated
    by reference to Registrants Form 10-K for the year ended
    December 31, 2001)                                                                        
|           
|            | 10.1 |             |  | 2000 Stock Option Plan dated February 17, 2000 and adopted
    by Registrant effective June 20, 2001 (incorporated by
    reference to Registrants Form S-8 Filed
    August 20, 2001; Reg. No. 333-67956)            
|           
|            | 10.2 |             |  | Incentive Stock Option Letter Agreement (incorporated by
    reference to Registrants Form S-8 Filed
    August 20, 2001; Reg. No. 333-67956)                                                                         
|           
|            | 10.3 |             |  | Nonqualified Stock Option Letter Agreement (incorporated by
    reference to Registrants Form S-8 Filed
    August 20, 2001; Reg. No. 333-67956)                                                                      
|           
|            | 10.4 |             |  | Directors Nonqualified Stock Option Letter Agreement
    (incorporated by reference to Registrants Form S-8
    Filed August 20, 2001; Reg. No. 333-67956)                                                            
|           
|            | 10.5 |             |  | PEMCO Deferred Compensation Plan dated as of December 17,
    1998 and adopted by Registrant effective June 20, 2001
    (incorporated by reference to Registrants Form 10-K for
    the year ended December 31, 2001)

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##### Table of Contents



|            |      |  |             |                                                                                                                                                                                                                                       
|----------- | ---- |  | ----------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |      |  | Description
|            |      |  |            
|           
|            | 10.6 |  |             | PEMCO Directors Deferred Compensation Plan dated as of
    December 17, 1998 and adopted by Registrant effective
    June 20, 2001 (incorporated by reference to
    Registrants Form 10-K for the year ended December 31,
    2001)
|           
|            | 10.7 |  |             | Human Resource Outsource Proposal dated December 23, 2004.                                                                                                                                                                            
|           
|            | 14   |  |             | Code of Ethics for Senior Financial Officers (incorporated by
    reference to Registrants Form 10-K for the year ended
    December 31, 2003)                                                                                       
|           
|            | 21   |  |             | Subsidiaries of the Registrant                                                                                                                                                                                                        
|           
|            | 23   |  |             | Independent Auditors Consent  Crowe Chizek and
    Company LLC                                                                                                                                                                      
|           
|            | 31.1 |  |             | Certification of Chief Executive Officer of Registrant required
    by Rule 13a-14(a)/15d-14(a), adopted pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002                                                                
|           
|            | 31.2 |  |             | Certification of Chief Financial Officer of Registrant required
    by Rule 13a-14(a)/15d-14(a), adopted pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002                                                                
|           
|            | 32.1 |  |             | Certification of Chief Executive Officer of Registrant required
    by 18 U.S.C. Section 1350, adopted pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002                                                                  
|           
|            | 32.2 |  |             | Certification of the Chief Financial Officer of Registrant
    required by 18 U.S.C. Section 1350, adopted pursuant
    to Section 906 of the Sarbanes-Oxley Act of 2002                                                              

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##### Table of Contents






SIGNATURES






| |                       
| | ----------------------
| | EVERGREENBANCORP, INC.



| |     |                     
| | --- | --------------------
| | By: | /s/ GERALD O. HATLER

| |                                      
| | -------------------------------------
| |                                      
| | Gerald O. Hatler                     
| | President and Chief Executive Officer



|                                               |  |                                                                                   |  | 
|---------------------------------------------- |  | --------------------------------------------------------------------------------- |  | 
|Signature                                      |  | Title                                                                            
|                                               |  |                                                                                  
|                                              
|/s/ GERALD O. HATLERGerald
    O. Hatler       |  | President, Chief Executive Officer and Director
    (Principal Executive Officer)
|                                              
|/s/ WILLIAM G. FILER IIWilliam
    G. Filer II |  | Sr. Vice President and Chief Financial Officer
    (Principal Accounting Officer)
|                                              
|/s/ RICHARD W. BALDWINRichard
    W. Baldwin   |  | Director                                                                         
|                                              
|/s/ C. DON FILERC.
    Don Filer               |  | Director                                                                         
|                                              
|/s/ CAROLE J. GRISHAMCarole
    J. Grisham     |  | Director                                                                         
|                                              
|/s/ ROBERT J. GROSSMANRobert
    J. Grossman   |  | Director                                                                         
|                                              
|/s/ J. THOMAS HANDYJ.
    Thomas Handy         |  | Director                                                                         
|                                              
|/s/ STAN W. MCNAUGHTONStan
    W. McNaughton   |  | Director                                                                         
|                                              
|/s/ RUSSEL E. OLSONRussel
    E. Olson         |  | Director                                                                         

59