##### Table of Contents



SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549

FORM 10-Q

|      |                                                                                        
|----- | ---------------------------------------------------------------------------------------
|[X]   | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|      |                                                                                        
|      | For the quarterly period ended June 30, 2002                                           
|      |                                                                                        
|[   ] | Transition Report Under Section 13 or 15(d) of the Exchange Act                        
|      |                                                                                        
|      | For the
transition period from _______________________ to _______________________      

Commission File No. 000-32915

EVERGREENBANCORP, INC.
(Exact Name of Registrant as Specified in Its Charter)

|                                                              |  |                                       
|------------------------------------------------------------- |  | --------------------------------------
|WASHINGTON                                                    |  | 91-2097262                            
|                                                              |  |                                       
|(State or
Other Jurisdiction ofIncorporation or Organization) |  | (I.R.S.
EmployerIdentification Number)

301 Eastlake Avenue East
Seattle, Washington 98109-5407
(Address of Principal Executive Offices) (Zip Code)

(206) 628-4250
(Registrants Telephone Number, Including Area Code)

Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Exchange Act during the
preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

Yes [X] No [   ]

Indicate the number of shares outstanding of each of the issuers classes
of common stock, as of the latest practicable date:

Common Stock, no par value, outstanding as of June 30, 2002: 935,417 shares
No Preferred stock were issued or outstanding.





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TABLE OF CONTENTS



|                               |                                                                                               |                                                     |  |  |  |  |  | 
|------------------------------ | --------------------------------------------------------------------------------------------- | --------------------------------------------------- |  |  |  |  |  | 
|PART I  FINANCIAL INFORMATION
|                               | Item 1. Financial Statements.                                                                
|                               |                                                                                               | Consolidated statements of condition               
|                               |                                                                                               | Consolidated statements of income                  
|                               |                                                                                               | Consolidated statements of stockholders equity    
|                               |                                                                                               | Consolidated statements of cash flows              
|                               |                                                                                               | Notes to Consolidated Interim Financial Information
|                               | Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
|                               | Item 3. Quantitative and Qualitative Disclosures About Market Risk                           
|PART II  OTHER INFORMATION   
|                               | ITEM 1. LEGAL PROCEEDINGS                                                                    
|                               | ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS                                            
|                               | ITEM 3. DEFAULTS UPON SENIOR SECURITIES                                                      
|                               | Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                                  
|SIGNATURES                    
|EXHIBIT 99                    



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##### Table of Contents



PART I
FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements.

The following financial statements are presented for the registrant,
EvergreenBancorp, Inc.



|1. |  | Balance Sheets  June 30, 2002 and December 31, 2001.                                                  
|-- |  | -------------------------------------------------------------------------------------------------------
|  
|2. |  | Statements of Income  For the three-month and six-month periods ended
June 30, 2002 and 2001.         
|  
|3. |  | Statements of Changes in Stockholders Equity  For the six-month periods
ended June 30, 2002 and 2001.
|  
|4. |  | Statements of Cash Flows  For the six-month periods ended June 30, 2002
and 2001.                     
|  
|5. |  | Notes to Consolidated Interim Financial Information.                                                   

Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

PART II
OTHER INFORMATION

Item 1. Legal Proceedings.

Item 2. Changes in Securities and Use of Proceeds.

Item 3. Defaults Upon Senior Securities.

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

Item 5. Other Information.

Item 6. Exhibits and Reports on Form 8-K.

(a)  Exhibits

(b)  Reports on Form 8-K

1



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##### Table of Contents






PART I  FINANCIAL INFORMATION




Item 1. Financial Statements.




EvergreenBancorp, Inc.
Consolidated statements of condition
(in thousands)
(unaudited)

|                                                                                                                        |                                                      |                                 |         |          |         |              |         |         |         | 
|----------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------- | ------------------------------- | ------- | -------- | ------- | ------------ | ------- | ------- | ------- | 
|                                                                                                                        |                                                      |                                 |         | June 30, |         | December 31,
|                                                                                                                        |                                                      |                                 |         | 2002     |         | 2001        
|                                                                                                                        |                                                      |                                 |         |          |         |             
|ASSETS                                                                                                                  |                                                      |                                 |         |          |         |              |         |        
|Cash and cash equivalents:                                                                                              |                                                      |                                 |         |          |         |              |         |        
|                                                                                                                        | Cash and due from banks                              |                                 | $       | 6,584    |         |              | $       | 9,319   |        
|                                                                                                                        | Interest- bearing deposits in financial institutions |                                 |         | 2,348    |         |              |         | 1,547   |        
|Federal funds sold                                                                                                      |                                                      |                                 | 11,030  |          |         |              | 6,300   |        
|                                                                                                                        |                                                      |                                 |         |          |         |              |         |        
|                                                                                                                        |                                                      | Total cash and cash equivalents |         |          | 19,962  |              |         |         | 17,166  | 
|                                                                                                                        |                                                      |                                 |         |          |         |              |         |        
|Investment securities:                                                                                                  |                                                      |                                 |         |          |         |              |         |        
|                                                                                                                        | Available for sale                                   |                                 |         | 23,420   |         |              |         | 15,214  |        
|                                                                                                                        |                                                      |                                 |         |          |         |              |         |        
|                                                                                                                        |                                                      | Total investment securities     |         |          | 23,420  |              |         |         | 15,214  | 
|                                                                                                                        |                                                      |                                 |         |          |         |              |         |        
|Loans                                                                                                                   |                                                      |                                 | 121,031 |          |         |              | 122,219 |        
|                                                                                                                        | Allowance for loan losses                            |                                 |         | (1,698   | )       |              |         | (1,498  | )      
|                                                                                                                        |                                                      |                                 |         |          |         |              |         |        
|                                                                                                                        | Net loans                                            |                                 |         | 119,333  |         |              |         | 120,721 |        
|                                                                                                                        |                                                      |                                 |         |          |         |              |         |        
|Premises and equipment                                                                                                  |                                                      |                                 | 1,867   |          |         |              | 1,925   |        
|Accrued income and other assets                                                                                         |                                                      |                                 | 1,614   |          |         |              | 1,339   |        
|                                                                                                                        |                                                      |                                 |         |          |         |              |         |        
|TOTAL ASSETS                                                                                                            |                                                      | $                               | 166,196 |          |         | $            | 156,365 |        
|                                                                                                                        |                                                      |                                 |         |          |         |              |         |        
|LIABILITIES                                                                                                             |                                                      |                                 |         |          |         |              |         |        
|Deposits:                                                                                                               |                                                      |                                 |         |          |         |              |         |        
|                                                                                                                        | Noninterest bearing                                  |                                 | $       | 36,753   |         |              | $       | 38,233  |        
|                                                                                                                        | Interest bearing                                     |                                 |         | 91,267   |         |              |         | 92,111  |        
|                                                                                                                        |                                                      |                                 |         |          |         |              |         |        
|                                                                                                                        |                                                      | Total Deposits                  |         |          | 128,020 |              |         |         | 130,344 | 
|                                                                                                                        |                                                      |                                 |         |          |         |              |         |        
|Federal funds purchased and securities sold under
agreements to repurchase                                              |                                                      |                                 | 5,561   |          |         |              | 5,597   |        
|Advances from Federal Home Loan Bank                                                                                    |                                                      |                                 | 10,793  |          |         |              | 4,005   |        
|Guaranteed preferred beneficial interests in subordinated debt                                                          |                                                      |                                 | 5,000   |          |         |              |         |        
|Accrued expenses and other liabilities                                                                                  |                                                      |                                 | 1,612   |          |         |              | 1,681   |        
|                                                                                                                        |                                                      |                                 |         |          |         |              |         |        
|TOTAL LIABILITIES                                                                                                       |                                                      | $                               | 150,986 |          |         | $            | 141,627 |        
|                                                                                                                        |                                                      |                                 |         |          |         |              |         |        
|STOCKHOLDERS EQUITY                                                                                                    |                                                      |                                 |         |          |         |              |         |        
|Preferred stock: No par value; 100,000 shares authorized;
issued and outstanding  none                                 |                                                      |                                 | 0       |          |         |              | 0       |        
|Common stock and surplus: No par value;
15,000,000 shares authorized; 935,417 and 934,817 shares issued
and outstanding |                                                      |                                 | 11,494  |          |         |              | 11,485  |        
|Retained earnings                                                                                                       |                                                      |                                 | 3,666   |          |         |              | 3,198   |        
|Accumulated other comprehensive income (loss)                                                                           |                                                      |                                 | 50      |          |         |              | 55      |        
|                                                                                                                        |                                                      |                                 |         |          |         |              |         |        
|TOTAL STOCKHOLDERS EQUITY                                                                                              |                                                      |                                 | 15,210  |          |         |              | 14,738  |        
|                                                                                                                        |                                                      |                                 |         |          |         |              |         |        
|TOTAL LIABILITIES AND STOCKHOLDERS EQUITY                                                                              |                                                      | $                               | 166,196 |          |         | $            | 156,365 |        
|                                                                                                                        |                                                      |                                 |         |          |         |              |         |        

See accompanying notes to consolidated financial statements.

2



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EvergreenBancorp, Inc.
Consolidated statements of income

Three-month and six-month periods ended June 30, 2002 and 2001
(in thousands, except per share data)
(unaudited)

|                                                                                            |                    |                                                     |                                    |     |                             |       |                           |    |       |       |         |     |       |       |           |     |       |       | 
|------------------------------------------------------------------------------------------- | ------------------ | --------------------------------------------------- | ---------------------------------- | --- | --------------------------- | ----- | ------------------------- | -- | ----- | ----- | ------- | --- | ----- | ----- | --------- | --- | ----- | ----- | 
|                                                                                            |                    |                                                     |                                    |     | Three months ended June 30, |       | Six months ended June 30,
|                                                                                            |                    |                                                     |                                    |     |                             |       |                          
|                                                                                            |                    |                                                     |                                    |     | 2002                        |       | 2001                      |    | 2002  |       | 2001   
|                                                                                            |                    |                                                     |                                    |     |                             |       |                           |    |       |       |        
|INTEREST AND DIVIDEND INCOME                                                                |                    |                                                     |                                    |     |                             |       |                           |    |       |       |         |     |       |       |           |    
|Loans, including fees                                                                       |                    | $                                                   | 2,522                              |     |                             | $     | 2,756                     |    |       | $     | 5,037   |     |       | $     | 5,472     |    
|Federal funds sold and other                                                                |                    |                                                     | 60                                 |     |                             |       | 157                       |    |       |       | 109     |     |       |       | 266       |    
|Investment securities:                                                                      |                    |                                                     |                                    |     |                             |       |                           |    |       |       |         |     |       |       |           |    
|                                                                                            | Held to maturity   |                                                     |                                    | 0   |                             |       |                           | 26 |       |       |         | 0   |       |       |           | 66  |      
|                                                                                            | Available for sale |                                                     |                                    | 147 |                             |       |                           | 96 |       |       |         | 294 |       |       |           | 218 |      
|                                                                                            |                    |                                                     |                                    |     |                             |       |                           |    |       |       |         |     |       |       |           |    
|                                                                                            |                    |                                                     | TOTAL INTEREST AND DIVIDEND INCOME |     |                             | 2,729 |                           |    |       | 3,035 |         |     |       | 5,440 |           |     |       | 6,022 | 
|                                                                                            |                    |                                                     |                                    |     |                             |       |                           |    |       |       |         |     |       |       |           |    
|INTEREST EXPENSE                                                                            |                    |                                                     |                                    |     |                             |       |                           |    |       |       |         |     |       |       |           |    
|Deposits                                                                                    |                    |                                                     | 544                                |     |                             |       | 1,004                     |    |       |       | 1,131   |     |       |       | 2,005     |    
|Federal funds purchased and securities
sold under agreements to repurchase                  |                    |                                                     | 15                                 |     |                             |       | 74                        |    |       |       | 33      |     |       |       | 168       |    
|Advances from Federal Home Loan Bank                                                        |                    |                                                     | 76                                 |     |                             |       | 56                        |    |       |       | 139     |     |       |       | 87        |    
|Interest expense on guaranteed preferred beneficial interests
in subordinated debt          |                    |                                                     | 30                                 |     |                             |       | 0                         |    |       |       | 30      |     |       |       | 0         |    
|                                                                                            |                    |                                                     |                                    |     |                             |       |                           |    |       |       |         |     |       |       |           |    
|                                                                                            |                    | TOTAL INTEREST EXPENSE                              |                                    |     | 665                         |       |                           |    | 1,134 |       |         |     | 1,333 |       |           |     | 2,260 |      
|                                                                                            |                    |                                                     |                                    |     |                             |       |                           |    |       |       |         |     |       |       |           |    
|                                                                                            |                    | NET INTEREST INCOME                                 |                                    |     | 2,064                       |       |                           |    | 1,901 |       |         |     | 4,107 |       |           |     | 3,762 |      
|Provision for loan losses                                                                   |                    |                                                     | 99                                 |     |                             |       | 158                       |    |       |       | 188     |     |       |       | 308       |    
|                                                                                            |                    |                                                     |                                    |     |                             |       |                           |    |       |       |         |     |       |       |           |    
|                                                                                            |                    | NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES |                                    |     | 1,965                       |       |                           |    | 1,743 |       |         |     | 3,919 |       |           |     | 3,454 |      
|                                                                                            |                    |                                                     |                                    |     |                             |       |                           |    |       |       |         |     |       |       |           |    
|NONINTEREST INCOME                                                                          |                    |                                                     |                                    |     |                             |       |                           |    |       |       |         |     |       |       |           |    
|Service charges on deposit accounts                                                         |                    |                                                     | 169                                |     |                             |       | 177                       |    |       |       | 336     |     |       |       | 377       |    
|Merchant credit card processing                                                             |                    |                                                     | 231                                |     |                             |       | 335                       |    |       |       | 517     |     |       |       | 611       |    
|Gain on sales of loans and available-for-sale securities                                    |                    |                                                     | 0                                  |     |                             |       | 23                        |    |       |       | 0       |     |       |       | 42        |    
|Other noninterest income                                                                    |                    |                                                     | 173                                |     |                             |       | 164                       |    |       |       | 312     |     |       |       | 462       |    
|                                                                                            |                    |                                                     |                                    |     |                             |       |                           |    |       |       |         |     |       |       |           |    
|                                                                                            |                    | TOTAL NONINTEREST INCOME                            |                                    |     | 573                         |       |                           |    | 699   |       |         |     | 1,165 |       |           |     | 1,492 |      
|                                                                                            |                    |                                                     |                                    |     |                             |       |                           |    |       |       |         |     |       |       |           |    
|NONINTEREST EXPENSE                                                                         |                    |                                                     |                                    |     |                             |       |                           |    |       |       |         |     |       |       |           |    
|Salaries and employee benefits                                                              |                    |                                                     | 944                                |     |                             |       | 948                       |    |       |       | 1,913   |     |       |       | 1,894     |    
|Merchant credit card processing                                                             |                    |                                                     | 199                                |     |                             |       | 284                       |    |       |       | 441     |     |       |       | 514       |    
|Occupancy and equipment                                                                     |                    |                                                     | 294                                |     |                             |       | 290                       |    |       |       | 591     |     |       |       | 485       |    
|Other noninterest expense                                                                   |                    |                                                     | 599                                |     |                             |       | 466                       |    |       |       | 1,192   |     |       |       | 1,092     |    
|                                                                                            |                    |                                                     |                                    |     |                             |       |                           |    |       |       |         |     |       |       |           |    
|                                                                                            |                    | TOTAL NONINTEREST EXPENSE                           |                                    |     | 2,036                       |       |                           |    | 1,988 |       |         |     | 4,137 |       |           |     | 3,985 |      
|                                                                                            |                    |                                                     |                                    |     |                             |       |                           |    |       |       |         |     |       |       |           |    
|INCOME BEFORE INCOME TAX EXPENSE                                                            |                    |                                                     | 502                                |     |                             |       | 454                       |    |       |       | 947     |     |       |       | 961       |    
|INCOME TAX EXPENSE                                                                          |                    |                                                     | 167                                |     |                             |       | 132                       |    |       |       | 311     |     |       |       | 301       |    
|                                                                                            |                    |                                                     |                                    |     |                             |       |                           |    |       |       |         |     |       |       |           |    
|NET INCOME                                                                                  |                    | $                                                   | 335                                |     |                             | $     | 322                       |    |       | $     | 636     |     |       | $     | 660       |    
|                                                                                            |                    |                                                     |                                    |     |                             |       |                           |    |       |       |         |     |       |       |           |    
|Basic earnings per share of common stock*                                                   |                    | $                                                   | 0.36                               |     |                             | $     | 0.33                      |    |       | $     | 0.68    |     |       | $     | 0.67      |    
|Weighted average number of common stock shares outstanding-basic*                           |                    |                                                     | 935,325                            |     |                             |       | 987,813                   |    |       |       | 935,072 |     |       |       | 991,483   |    
|Diluted earnings per share of common stock*                                                 |                    | $                                                   | 0.34                               |     |                             | $     | 0.31                      |    |       | $     | 0.64    |     |       | $     | 0.64      |    
|Weighted average number of common stock shares outstanding
and assumed conversions-diluted* |                    |                                                     | 999,846                            |     |                             |       | 1,035,704                 |    |       |       | 994,645 |     |       |       | 1,034,766 |    



|* |  | Retroactively adjusted for the shares issued pursuant to the 2001 three- for -two stock split.
|- |  | ----------------------------------------------------------------------------------------------

See accompanying notes to consolidated financial statements.

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EvergreenBancorp, Inc

Consolidated Statements of Stockholders Equity
For the six-month periods ended June 30, 2002 and 2001
(in thousands, except shares and per share data)
(unaudited)

|                                                                                                                                                        |                                         |                                         |                                                                                                     |                                                                                                               |     |              |        |              |   |              |        |         |  |          |        |          |  |               |       |               |      |   |      |   |  |             |        |       |      |    |    |  
|------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------- | --------------------------------------- | --------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------- | --- | ------------ | ------ | ------------ | - | ------------ | ------ | ------- |  | -------- | ------ | -------- |  | ------------- | ----- | ------------- | ---- | - | ---- | - |  | ----------- | ------ | ----- | ---- | -- | -- | -
|                                                                                                                                                        |                                         |                                         |                                                                                                     |                                                                                                               |     |              |        |              |   |              |        |         |  |          |        |          |  |               |       |               |      |   |      |   |  | Accumulated |        |       |      |   
|                                                                                                                                                        |                                         |                                         |                                                                                                     |                                                                                                               |     |              |        |              |   |              |        |         |  |          |        |          |  |               |       |               |      |   |      |   |  | Other       |        | Total
|                                                                                                                                                        |                                         |                                         |                                                                                                     |                                                                                                               |     | Common Stock |        | Common stock |   | Common stock |        |         |  |          |        | Retained |  | Comprehensive |       | Stockholders'
|                                                                                                                                                        |                                         |                                         |                                                                                                     |                                                                                                               |     | Shares       |        | and surplus  |   | Par Value    |        | Surplus |  | Earnings |        | Income   |  | Equity       
|                                                                                                                                                        |                                         |                                         |                                                                                                     |                                                                                                               |     |              |        |              |   |              |        |         |  |          |        |          |  |              
|Balance at January 01, 2001                                                                                                                             |                                         |                                         | 663,462                                                                                             |                                                                                                               |     |              |        |              |   | $            | 6,634  |         |  | $        | 5,838  |          |  | $             | 2,124 |               |      |   | ($19 | ) |  | $           | 14,577 |      
|                                                                                                                                                        |                                         |                                         |                                                                                                     |                                                                                                               |     |              |        |              |   |              |        |         |  |          |        |          |  |               |       |               |      |   |      |   |  |             |        |      
|Comprehensive income:                                                                                                                                   |                                         |                                         |                                                                                                     |                                                                                                               |     |              |        |              |   |              |        |         |  |          |        |          |  |               |       |               |      |   |      |   |  |             |        |      
|                                                                                                                                                        | Net income                              |                                         |                                                                                                     |                                                                                                               |     |              |        |              |   |              |        |         |  |          |        |          |  |               |       | 660           |      |   |      |   |  |             |        | 660   |     
|                                                                                                                                                        | Other comprehensive income,
net of tax: |                                         |                                                                                                     |                                                                                                               |     |              |        |              |   |              |        |         |  |          |        |          |  |               |       |               |      |   |      |   |  |             |        |       |     
|                                                                                                                                                        |                                         |                                         | Change in unrealized gain(loss) on
securities available for sale, net of
deferred income tax of $40 |                                                                                                               |     |              |        |              |   |              |        |         |  |          |        |          |  |               |       |               |      |   |      |   |  | 79          |        |       |      |    |   
|                                                                                                                                                        |                                         |                                         | Reclassification adjustments included
in net income, net of deferred income tax benefit of $(14)    |                                                                                                               |     |              |        |              |   |              |        |         |  |          |        |          |  |               |       |               |      |   |      |   |  | (28         | )      |       |      | 51 |   
|                                                                                                                                                        |                                         |                                         |                                                                                                     |                                                                                                               |     |              |        |              |   |              |        |         |  |          |        |          |  |               |       |               |      |   |      |   |  |             |        |      
|                                                                                                                                                        | Total comprehensive income              |                                         |                                                                                                     |                                                                                                               |     |              |        |              |   |              |        |         |  |          |        |          |  |               |       |               |      |   |      |   |  |             |        | 711   |     
|Cumulative effect of reclassifying certain
securities from held to maturity to available
for sale as of June 1, 2001, net of deferred income tax of $16 |                                         |                                         |                                                                                                     |                                                                                                               |     |              |        |              |   |              |        |         |  |          |        |          |  |               |       |               |      |   | 31   |   |  |             | 31     |      
|Change in par value of common stock from
$10 to $1 par value                                                                                            |                                         |                                         |                                                                                                     |                                                                                                               |     |              |        |              |   |              | (5,971 | )       |  |          | 5971   |          |  |               |       |               |      |   |      |   |  |             |        |      
|Cash dividends paid ($0.167 per share)*                                                                                                                 |                                         |                                         |                                                                                                     |                                                                                                               |     |              |        |              |   |              |        |         |  |          |        |          |  |               | (166  | )             |      |   |      |   |  |             | (166   | )    
|Repurchase of common stock                                                                                                                              |                                         |                                         | (40,700                                                                                             | )                                                                                                             |     |              |        |              |   |              | (40    | )       |  |          | (957   | )        |  |               |       |               |      |   |      |   |  |             | (997   | )    
|                                                                                                                                                        |                                         |                                         |                                                                                                     |                                                                                                               |     |              |        |              |   |              |        |         |  |          |        |          |  |               |       |               |      |   |      |   |  |             |        |      
|Balance at June 30, 2001                                                                                                                                |                                         |                                         | 622,762                                                                                             |                                                                                                               |     |              | 0      |              |   |              | 623    |         |  |          | 10,852 |          |  | $             | 2,618 |               |      | $ | 63   |   |  | $           | 14,156 |      
|                                                                                                                                                        |                                         |                                         |                                                                                                     |                                                                                                               |     |              |        |              |   |              |        |         |  |          |        |          |  |               |       |               |      |   |      |   |  |             |        |      
|Balance at January 1, 2002                                                                                                                              |                                         |                                         | 934,817                                                                                             |                                                                                                               |     | $            | 11,485 |              |   | $            | 0      |         |  | $        | 0      |          |  | $             | 3,198 |               |      | $ | 55   |   |  | $           | 14,738 |      
|                                                                                                                                                        |                                         |                                         |                                                                                                     |                                                                                                               |     |              |        |              |   |              |        |         |  |          |        |          |  |               |       |               |      |   |      |   |  |             |        |      
|Comprehensive income:                                                                                                                                   |                                         |                                         |                                                                                                     |                                                                                                               |     |              |        |              |   |              |        |         |  |          |        |          |  |               |       |               |      |   |      |   |  |             |        |      
|                                                                                                                                                        |                                         | Net income                              |                                                                                                     |                                                                                                               |     |              |        |              |   |              |        |         |  |          |        |          |  |               |       |               | 636  |   |      |   |  |             |        |       | 636  |   
|                                                                                                                                                        |                                         | Other comprehensive income,
net of tax: |                                                                                                     |                                                                                                               |     |              |        |              |   |              |        |         |  |          |        |          |  |               |       |               |      |   |      |   |  |             |        |       |      |   
|                                                                                                                                                        |                                         |                                         |                                                                                                     | Change in unrealized gain (loss) on
securities available for sale, net of
deferred income tax benefit of $(3) |     |              |        |              |   |              |        |         |  |          |        |          |  |               |       |               |      |   |      |   |  |             | (5     | )     |      |    | (5 | )
|                                                                                                                                                        |                                         |                                         |                                                                                                     |                                                                                                               |     |              |        |              |   |              |        |         |  |          |        |          |  |               |       |               |      |   |      |   |  |             |        |      
|                                                                                                                                                        |                                         | Total comprehensive income              |                                                                                                     |                                                                                                               |     |              |        |              |   |              |        |         |  |          |        |          |  |               |       |               |      |   |      |   |  |             |        |       | 631  |   
|                                                                                                                                                        |                                         | Exercise of stock options               |                                                                                                     |                                                                                                               | 600 |              |        |              | 9 |              |        |         |  |          |        |          |  |               |       |               |      |   |      |   |  |             |        |       | 9    |   
|                                                                                                                                                        |                                         | Cash dividend paid ($0.18 per share)    |                                                                                                     |                                                                                                               |     |              |        |              |   |              |        |         |  |          |        |          |  |               |       |               | (168 | ) |      |   |  |             |        |       | (168 | ) 
|                                                                                                                                                        |                                         |                                         |                                                                                                     |                                                                                                               |     |              |        |              |   |              |        |         |  |          |        |          |  |               |       |               |      |   |      |   |  |             |        |      
|Balance at June 30, 2002                                                                                                                                |                                         |                                         | 935,417                                                                                             |                                                                                                               |     | $            | 11,494 |              |   | $            | 0      |         |  | $        | 0      |          |  | $             | 3,666 |               |      | $ | 50   |   |  | $           | 15,210 |      
|                                                                                                                                                        |                                         |                                         |                                                                                                     |                                                                                                               |     |              |        |              |   |              |        |         |  |          |        |          |  |               |       |               |      |   |      |   |  |             |        |      



|* |  | Retroactively adjusted for the shares issued pursuant to the 2001 three-for-two stock split.
|- |  | --------------------------------------------------------------------------------------------

See accompanying notes to consolidated financial statements.

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EvergreenBancorp, Inc.

Consolidated statements of cash flows
Six-month periods ended June 30, 2002 and 2001
(in thousands)
(unaudited)

|                                                                                                      |                                                                              |   |                           |        |      |   |        |        |  
|----------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------- | - | ------------------------- | ------ | ---- | - | ------ | ------ | -
|                                                                                                      |                                                                              |   | Six Months ended June 30,
|                                                                                                      |                                                                              |   |                          
|                                                                                                      |                                                                              |   | 2002                      |        | 2001
|                                                                                                      |                                                                              |   |                           |        |     
|CASH FLOWS FROM OPERATING ACTIVITIES:                                                                 |                                                                              |   |                           |        |      |   |        |       
|Net Income                                                                                            |                                                                              | $ | 636                       |        |      | $ | 660    |       
|Adjustments to reconcile net income to net cash
provided (used) by operating activities:              |                                                                              |   |                           |        |      |   |        |       
|                                                                                                      | Depreciation and amortization                                                |   |                           | 229    |      |   |        | 156    |  
|                                                                                                      | Provision for loan losses                                                    |   |                           | 188    |      |   |        | 307    |  
|                                                                                                      | Net
amortization of premium (accretion of discount) on investment
securities |   |                           | 12     |      |   |        | 10     |  
|                                                                                                      | (Gain)/loss from sale of available-for-sale securities                       |   |                           | 0      |      |   |        | (42    | )
|                                                                                                      | Federal Home Loan Bank stock dividend                                        |   |                           | (18    | )    |   |        | (39    | )
|                                                                                                      | Other changes, net                                                           |   |                           | (356   | )    |   |        | 538    |  
|                                                                                                      |                                                                              |   |                           |        |      |   |        |       
|                                                                                                      | Net Cash provided(used) by operating activities                              |   |                           | 691    |      |   |        | 1,590  |  
|                                                                                                      |                                                                              |   |                           |        |      |   |        |       
|CASH FLOWS FROM INVESTING ACTIVITIES:                                                                 |                                                                              |   |                           |        |      |   |        |       
|Proceeds from maturities of held-to-maturity securities                                               |                                                                              |   | 0                         |        |      |   | 30     |       
|Proceeds
from sales and maturities of available-for-sale securities                                   |                                                                              |   | 165                       |        |      |   | 7,855  |       
|Purchases of available-for-sale securities                                                            |                                                                              |   | (8,358                    | )      |      |   | (1,016 | )     
|Net (increase) decrease in loans                                                                      |                                                                              |   | 1,200                     |        |      |   | (4,968 | )     
|Purchases of premises and equipment                                                                   |                                                                              |   | (171                      | )      |      |   | (279   | )     
|                                                                                                      |                                                                              |   |                           |        |      |   |        |       
|                                                                                                      | Net Cash provided (used) by investing activities                             |   |                           | (7,164 | )    |   |        | 1,622  |  
|                                                                                                      |                                                                              |   |                           |        |      |   |        |       
|CASH FLOWS FROM FINANCING ACTIVITIES:                                                                 |                                                                              |   |                           |        |      |   |        |       
|Net increase (decrease) in noninterest bearing deposits                                               |                                                                              |   | (1,480                    | )      |      |   | (6,542 | )     
|Net increase (decrease) in interest bearing deposits                                                  |                                                                              |   | (844                      | )      |      |   | 5,925  |       
|Net increase (decrease) in federal funds purchased and securities
sold under agreements to repurchase |                                                                              |   | (36                       | )      |      |   | (1,621 | )     
|Advances from Federal Home Loan Bank                                                                  |                                                                              |   | 6,800                     |        |      |   | 2,005  |       
|Repayment of advances from Federal Home Loan Bank                                                     |                                                                              |   | (12                       | )      |      |   |        |       
|Proceeds
from issuance of guaranteed preferred beneficial interests in
subordinated debt              |                                                                              |   | 5,000                     |        |      |   |        |       
|Repurchase of common stock                                                                            |                                                                              |   |                           |        |      |   | (997   | )     
|Exercise of stock options                                                                             |                                                                              |   | 9                         |        |      |   |        |       
|Dividends paid                                                                                        |                                                                              |   | (168                      | )      |      |   | (166   | )     
|                                                                                                      |                                                                              |   |                           |        |      |   |        |       
|                                                                                                      | Net
cash provided (used) by financing activities                             |   |                           | 9,269  |      |   |        | (1,396 | )
|                                                                                                      |                                                                              |   |                           |        |      |   |        |       
|Net
increase (decrease) in cash and cash equivalents                                                  |                                                                              |   | 2,796                     |        |      |   | 1,816  |       
|                                                                                                     
|CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                                      |                                                                              |   | 17,166                    |        |      |   | 22,415 |       
|                                                                                                      |                                                                              |   |                           |        |      |   |        |       
|CASH AND CASH EQUIVALENTS AT END OF PERIOD                                                            |                                                                              | $ | 19,962                    |        |      | $ | 24,231 |       
|                                                                                                      |                                                                              |   |                           |        |      |   |        |       
|Supplemental disclosures of cash flow information                                                     |                                                                              |   |                           |        |      |   |        |       
|Interest Paid                                                                                         |                                                                              | $ | 1,511                     |        |      | $ | 2,155  |       
|Income Taxes Paid                                                                                     |                                                                              |   | 335                       |        |      |   | 427    |       
|Total change in unrealized gains (losses)
on available-for-sale securities                            |                                                                              |   | 9                         |        |      |   | 119    |       

See accompanying notes to consolidated financial statements.

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NOTES TO CONSOLIDATED INTERIM FINANCIAL INFORMATION
EVERGREENBANCORP, INC.

Quarterly period ended June 30, 2002
(UNAUDITED)

Basis of presentation:The accompanying unaudited consolidated financial
statements include the accounts of EvergreenBancorp, Inc. (Bancorp) and its
wholly owned subsidiaries (collectively referred to as the Company). As of
June 30, 2002, Bancorps subsidiaries were EvergreenBank (the Bank) and
EvergreenBancorp Capital Trust I (the Trust). The financial statements have
been prepared in accordance with accounting principles generally accepted in
the United States of America for interim financial information and with the
instructions to the Securities and Exchange Commissions Form 10-Q. These
financial statements do not include all of the information and footnotes
required for complete financial statements. In the opinion of management,
adjustments (consisting of normal recurring accruals) considered necessary for
a fair presentation have been included. Operating results for the six months
ended June 30, 2002 are not necessarily indicative of the results for the year
ending December 31, 2002. For additional information, refer to the financial
statements and footnotes for the year ended December 31, 2001, filed by Bancorp
with the United States Securities and Exchange Commission.

Organization:Bancorp was formed February 9, 2001 and is a Washington
corporation chartered as a bank holding company. Bancorp owns all of the
issued and outstanding shares of the Bank and all of the common securities
issued by the Trust.

The Bank is a Washington state chartered financial institution that engages in
general commercial and consumer banking operations. The Bank offers a broad
spectrum of personal and business banking services, including commercial,
consumer and real estate lending. The Banks offices are centered in the Puget
Sound region in the Seattle, Lynnwood and Bellevue communities. Deposits in the
Bank are insured by the Federal Deposit Insurance Corporation.

The Trust is a Delaware business trust organized pursuant to a Declaration of
Trust dated as of May 22, 2002. An Amended and Restated Declaration of Trust
was executed May 23, 2002.

Holding company information:The Bank became a wholly owned subsidiary of
Bancorp on June 20, 2001 in accordance with the Plan and Agreement of
Reorganization and Merger dated February 14, 2001 (the Plan), and provided
that each share of the Banks common stock be exchanged for an equal number of
shares of the common stock of Bancorp. The Plan also provided that the
reorganization be treated similarly to a pooling of interest for accounting
and financial reporting purposes. Accordingly, the capital accounts of the
Bank as of June 20, 2001 were carried forward, without change, as the capital
accounts of Bancorp.

Accounting:The accounting and reporting policies of the Company conform to
accounting principles generally accepted in the United States of America. The
following is a description of the more significant of these policies.

Principles of consolidation and use of estimates:The accompanying
consolidated financial statements include the combined accounts of Bancorp, the
Bank, and the Trust for all periods reported. All significant intercompany
balances and transactions have been eliminated.

The accompanying financial statements have been prepared in conformity with
accounting principles generally accepted in the United States of America and
with the general practices in the banking industry. The

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NOTES TO CONSOLIDATED INTERIM FINANCIAL INFORMATION  CONTINUED
EVERGREENBANCORP, INC.

Quarterly period ended June 30, 2002
(UNAUDITED)

preparation of financial statements in conformity with these principles requires management to
make estimates and assumptions that affect the reported amounts of assets and
liabilities, including contingent amounts, at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates. Material
estimates particularly susceptible to possible changes in the near term relate
to the determination of the allowance for losses on loans, the carrying values
of securities, and deferred tax assets. An estimate of possible changes or
range of possible changes cannot be made relative to these items.

Reclassifications:Certain items in prior periods financial statements have
been reclassified to conform with the current periods presentation. These
reclassifications did not change previously reported stockholders equity or
net income.

Investments:Investments include $7,650,000 in mortgage backed securities at
June 30, 2002. This investment by the Bank in mortgage backed securities
qualifies as collateral for advances from Federal Home Loan Bank.

Guaranteed preferred beneficial interests in subordinated debt:On May 23,
2002, Bancorp purchased 155 Floating Rate Common Securities (liquidation amount
$1,000 per common security) (the Common Security) issued by the Trust. Also,
on May 23, 2002, the Trust issued 5,000 Floating Rate Capital Securities
(liquidation amount $1,000 per capital security) (the Capital Securities).
The capital securities were sold in a private placement pursuant to exemption
from registration under of the Securities Act of 1933. The proceeds of the
issuance of the common and capital securities, net of issuing expenses, were
used by the Trust to purchase $5,155,000 in principal amount of Floating Rate
Junior Subordinated Deferrable Interest Debentures (the Debentures) issued by
Bancorp. Bancorp invested $4,800,000 of the proceeds in the Bank.
Distributions on the common and capital securities issued by the Trust are
payable quarterly at a variable interest rate, reset quarterly, equal to the
three-month London interbank offered rate plus 3.5 percent. The Company
recognizes the distributions payable on the capital securities and the
debentures as interest expense for financial reporting purposes. The
debentures mature in 2032 and are redeemable at Bancorps option beginning in
2007. Issuing expenses are being amortized over the thirty year period. The
capital securities are guaranteed on a subordinated basis by Bancorp with
respect to distributions and amounts payable upon liquidation, redemption, or
repayment. The capital securities qualify as Tier I capital for regulatory
purposes.

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NOTES TO CONSOLIDATED INTERIM FINANCIAL INFORMATION  CONTINUED
EVERGREENBANCORP, INC.

Quarterly period ended June 30, 2002
(UNAUDITED)

Parent company only financial information:The following table illustrates the
condensed balance sheet at June 30, 2002 and December 31, 2001, and the related
condensed statements of income for each of the three-month and six-month
periods ended June 30, 2002 and 2001, and the condensed statements of cash
flows for the six-month periods ended June 30, 2002 and 2001 for
EvergreenBancorp, Inc., without including the accounts of its subsidiaries, the
Bank and the Trust.

Condensed balance sheets (in thousands):

|                                           |                                                                |                                        |        |          |        |              |        |        |        | 
|------------------------------------------ | -------------------------------------------------------------- | -------------------------------------- | ------ | -------- | ------ | ------------ | ------ | ------ | ------ | 
|                                           |                                                                |                                        |        | JUNE 30, |        | DECEMBER 31,
|                                           |                                                                |                                        |        | 2002     |        | 2001        
|                                           |                                                                |                                        |        |          |        |             
|Assets:                                    |                                                                |                                        |        |          |        |              |        |       
|                                           | Due from EvergreenBank                                         |                                        | $      | 273      |        |              | $      | 83     |       
|                                           | Investment in EvergreenBank                                    |                                        |        | 19,790   |        |              |        | 14,655 |       
|                                           | Investment in EvergreenBancorp Capital Trust I                 |                                        |        | 155      |        |              |        |        |       
|                                           | Accrued interest and other assets                              |                                        |        | 212      |        |              |        |        |       
|                                           |                                                                |                                        |        |          |        |              |        |       
|Total assets                               |                                                                | $                                      | 20,430 |          |        | $            | 14,738 |       
|                                           |                                                                |                                        |        |          |        |              |        |       
|Liabilities and stockholders equity:      |                                                                |                                        |        |          |        |              |        |       
|                                           | Accrued expenses and other liabilities                         |                                        | $      | 65       |        |              |        |        |       
|                                           | Guaranteed preferred beneficial interests
in subordinated debt |                                        |        | 5,155    |        |              |        |        |       
|                                           | Stockholders equity:                                          |                                        |        |          |        |              |        |        |       
|                                           |                                                                | Preferred stock                        |        |          |        |              |        |        |        | 
|                                           |                                                                | Common stock and surplus               |        |          | 11,494 |              |        | $      | 11,485 | 
|                                           |                                                                | Retained earnings                      |        |          | 3,666  |              |        |        | 3,198  | 
|                                           |                                                                | Accumulated other comprehensive income |        |          | 50     |              |        |        | 55     | 
|                                           |                                                                |                                        |        |          |        |              |        |       
|Total liabilities and stockholders equity |                                                                | $                                      | 20,430 |          |        | $            | 14,738 |       

Condensed statements of income(in thousands):

|                                                             |                                                                                    |   |                |     |                |   |      |    |      |   |     |     |  |   |     |    | 
|------------------------------------------------------------ | ---------------------------------------------------------------------------------- | - | -------------- | --- | -------------- | - | ---- | -- | ---- | - | --- | --- |  | - | --- | -- | 
|                                                             |                                                                                    |   | THREE MONTHS   |     | SIX MONTHS    
|                                                             |                                                                                    |   | ENDED JUNE 30, |     | ENDED JUNE 30,
|                                                             |                                                                                    |   |                |     |               
|                                                             |                                                                                    |   | 2002           |     | 2001           |   | 2002 |    | 2001
|                                                             |                                                                                    |   |                |     |                |   |      |    |     
|Income:                                                      |                                                                                    |   |                |     |                |   |      |    |      |   |     |     |  |   |     |   
|                                                             | Dividend from EvergreenBank                                                        |   | $              | 155 |                |   | $    | 75 |      |   | $   | 323 |  |   | $   | 75 | 
|Expenses:                                                    |                                                                                    |   |                |     |                |   |      |    |      |   |     |     |  |   |     |   
|                                                             | Interest expense on guaranteed preferred beneficial
interests in subordinated debt |   |                | 31  |                |   |      |    |      |   |     | 31  |  |   |     |    | 
|                                                             |                                                                                    |   |                |     |                |   |      |    |      |   |     |     |  |   |     |   
|Income before equity in undistributed income
of subsidiaries |                                                                                    |   | 124            |     |                |   | 75   |    |      |   | 292 |     |  |   | 75  |   
|Equity in undistributed income of subsidiaries               |                                                                                    |   | 206            |     |                |   |      |    |      |   | 339 |     |  |   |     |   
|Distribution in excess of net income of subsidiaries         |                                                                                    |   |                |     |                |   | (31  | )  |      |   |     |     |  |   | (31 | ) 
|                                                             |                                                                                    |   |                |     |                |   |      |    |      |   |     |     |  |   |     |   
|Income before income tax benefit                             |                                                                                    |   | 330            |     |                |   | 44   |    |      |   | 631 |     |  |   | 44  |   
|Income tax benefit                                           |                                                                                    |   | 5              |     |                |   |      |    |      |   | 5   |     |  |   |     |   
|                                                             |                                                                                    |   |                |     |                |   |      |    |      |   |     |     |  |   |     |   
|Net income                                                   |                                                                                    | $ | 335            |     |                | $ | 44   |    |      | $ | 636 |     |  | $ | 44  |   

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NOTES TO CONSOLIDATED INTERIM FINANCIAL INFORMATION  CONTINUED
EVERGREENBANCORP, INC.

Quarterly period ended June 30, 2002
(UNAUDITED)

Condensed statements of cash flows(in thousands):

|                                                          |                                                                                          |                                                |        |                  |      |      |    |    |    | 
|--------------------------------------------------------- | ---------------------------------------------------------------------------------------- | ---------------------------------------------- | ------ | ---------------- | ---- | ---- | -- | -- | -- | 
|                                                          |                                                                                          |                                                |        | SIX MONTHS ENDED
|                                                          |                                                                                          |                                                |        | JUNE 30,        
|                                                          |                                                                                          |                                                |        |                 
|                                                          |                                                                                          |                                                |        | 2002             |      | 2001
|                                                          |                                                                                          |                                                |        |                  |      |     
|Cash flows from operating activities:                     |                                                                                          |                                                |        |                  |      |      |    |   
|                                                          | Net income                                                                               |                                                | $      | 636              |      |      | $  | 44 |   
|                                                          | Adjustments to reconcile net income to net cash
provided by operating activities:        |                                                |        |                  |      |      |    |    |   
|                                                          |                                                                                          | Equity in undistributed income of subsidiaries |        |                  | (340 | )    |    |    | 31 | 
|                                                          | Increase in accrued interest and other assets                                            |                                                |        | (212             | )    |      |    |    |   
|                                                          | Increase in accrued liabilities and other liabilities                                    |                                                |        | 65               |      |      |    |    |   
|                                                          |                                                                                          |                                                |        |                  |      |      |    |   
|Net cash provided by operating activities                 |                                                                                          |                                                | 149    |                  |      |      | 75 |   
|                                                          |                                                                                          |                                                |        |                  |      |      |    |   
|Cash flows from investing activities:                     |                                                                                          |                                                |        |                  |      |      |    |   
|                                                          | Investment in EvergreenBank                                                              |                                                |        | (4,800           | )    |      |    |    |   
|                                                          | Investment in EvergreenBancorp Capital Trust I                                           |                                                |        | (155             | )    |      |    |    |   
|                                                          |                                                                                          |                                                |        |                  |      |      |    |   
|Net cash provided (used) by investing activities          |                                                                                          |                                                | (4,955 | )                |      |      |    |   
|                                                          |                                                                                          |                                                |        |                  |      |      |    |   
|Cash flows from financing activities:                     |                                                                                          |                                                |        |                  |      |      |    |   
|                                                          | Proceeds from issuance of guaranteed preferred
beneficial interests in subordinated debt |                                                |        | 5,155            |      |      |    |    |   
|                                                          | Exercise of stock option                                                                 |                                                |        | 9                |      |      |    |    |   
|                                                          | Dividends paid                                                                           |                                                |        | (168             | )    |      |    |    |   
|                                                          |                                                                                          |                                                |        |                  |      |      |    |   
|Net cash provided (used) by financing activities          |                                                                                          |                                                | 4,996  |                  |      |      |    |   
|                                                          |                                                                                          |                                                |        |                  |      |      |    |   
|Net increase in cash                                      |                                                                                          |                                                | 190    |                  |      |      | 75 |   
|Cash on deposit with EvergreenBank at beginning of
period |                                                                                          |                                                | 83     |                  |      |      | 0  |   
|                                                          |                                                                                          |                                                |        |                  |      |      |    |   
|Cash on deposit with EvergreenBank at end of period       |                                                                                          | $                                              | 273    |                  |      | $    | 75 |   

Subsequent event:On June 20, 2002, the Board of Directors declared a 15
percent stock dividend to stockholders of record on July 8, 2002, payable on
July 15, 2002.

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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations

The following discussion contains a review of the consolidated operating
results and financial condition of EvergreenBancorp, Inc. (Bancorp) and its
wholly-owned subsidiaries (collectively referred to as the Company) for the
second quarter of 2002. As of June 30, 2002, Bancorps subsidiaries were
EvergreenBank (the Bank) and EvergreenBancorp Capital Trust I (the Trust)
collectively referred to as the Company. This discussion should be read in
conjunction with the unaudited consolidated financial statements and
accompanying notes contained elsewhere in this report. When warranted,
comparisons are made to the same period in 2001 and to the previous year ended
December 31, 2001. For additional information, refer to the consolidated
financial statements and footnotes of EvergreenBancorp, Inc. for the year ended
December 31, 2001.

RESULTS OF OPERATIONS

Net Income

The Company reported net income of $335,000 for the second quarter of 2002,
compared to $322,000 for the second quarter of 2001, an increase of 4.04
percent. Earnings per basic common share were $0.36 for the second quarter of
2002 compared to $0.33 for the second quarter of 2001. Return on average common
equity was 8.85 percent for the second quarter of 2002 and 8.66 percent for the
second quarter of 2001.

For the six months of 2002 net income was $636,000, compared with $660,000 for
the first six months of 2001, a decrease of 3.77 percent. Earnings per common
share were $0.68 for the first six months of 2002 and $0.67 for the same period
of 2001. The results from the first quarter of 2001 included two nonrecurring items
which impacted the results: additional revenue of $143,000 from the repurchase
of shares in an ATM electronic services provider, offset by expense of $50,000
associated with the formation of EvergreenBancorp, Inc. Return on average
assets was 0.80 percent for the first half of 2002 and 0.90 percent for the
same period of 2001. Return on average common equity was 8.52 percent for the
first six months of 2002 and 8.92 percent for the same period of 2001.

Net Interest Income

Net interest income was $2,064,000 for the second quarter of 2002, compared to
$1,901,000 for the same quarter a year ago, an increase of 8.57 percent. Net
interest income was $4,107,000 for the first six months of 2002, compared with
$3,762,000 for the six months of 2001, an increase

6



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of 9.17 percent. The
increase in the net interest income for the second quarter was primarily due to
increased lending activity and an improved mix of earning assets.

Interest income for the three months ended June 30, 2002 was $2,729,000
compared to $3,035,000 for the three months ended June 30, 2001, a decrease of
$306,000 or 10.08 percent. This decrease was largely the result of falling
interest rates offset by growth in loan volume. Average loans outstanding for
the three months ended June 30, 2002 were $3,235,000 higher than the three
months ended June 30, 2001. Interest income for the six months ended June 30,
2002 was $5,440,000 compared with $6,022,000 for the six months ended June 30,
2001, a decrease of 9.66 percent.

Interest expense for the three months ended June 30, 2002 was $665,000 compared
to $1,134,000 for the three months ended June 30, 2001, a decrease of $469,000
or 41.36 percent. Interest expense for the six months ended June 30, 2002 was
$1,333,000 compared with $2,260,000 for the same period a year ago, a decrease
of $927,000 or 41.02 percent. The decrease was primarily the result of falling
interest rates during 2001 and a higher percentage mix of lower cost deposits.

Noninterest Income/Expense

Noninterest income in the second quarter of 2002 was $573,000 compared to
$699,000 in the same quarter of 2001, a reduction of $126,000 or 18.03 percent.
Noninterest income for the six months ended June 30, 2002 was $1,165,000
compared with $1,492,000 for the same period of 2001, a decrease of $327,000
or 21.92 percent. The decrease was primarily due to reduction in revenue from
merchant processing fees, gains on sales of available-for-sale securities,
and last years 1st quarter results included additional revenue of $143,000
resulting from the repurchase of our share in a company that provides ATM
electronic services.

Noninterest expense was $2,036,000 in the second quarter of 2002, compared to
$1,988,000 in the same quarter of 2001, an increase of $48,000 or
2.41 percent.
Noninterest expense was $4,137,000 for the six months of 2002, compared with
$3,985,000 for the same period of 2001, an increase of $152,000 or 3.81
percent. The increase was primarily due to increased costs associated
with opening a new office in 2001 and increased
technology costs offset by reduced
merchant processing expenses.

Allowance for Loan Losses

The allowance for loan losses is maintained at a level considered adequate by
management to absorb estimated losses over the life of the portfolio.

7



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##### Table of Contents



Management periodically evaluates the adequacy of the allowance based upon a
number of factors, including the volume and composition of the loan portfolio,
potential impairment of individual loans and concentrations of credit,
estimated value of underlying collateral, past loss experience, current
economic conditions, loan commitments outstanding and other factors.

The following table sets forth the changes in the Companys allowance for loan
losses at the dates indicated.

|                                     |  |                            |           |      |  |   |           |  
|------------------------------------ |  | -------------------------- | --------- | ---- |  | - | --------- | -
|                                     |  | Three months ended June 30
|                                     |  |                           
|                                     |  | 2002                       |           | 2001
|                                     |  |                            |           |     
|Balance at beginning of period       |  | $                          | 1,613,000 |      |  | $ | 1,464,000 |  
|Provision for possible credit losses |  |                            | 99,000    |      |  |   | 158,000   |  
|Charge-offs                          |  |                            | (15,000   | )    |  |   | (136,000  | )
|Recoveries                           |  |                            | 1,000     |      |  |   | 1,000     |  
|Net Recoveries (Charge-offs)         |  |                            | (14,000   | )    |  |   | (135,000  | )
|                                     |  |                            |           |      |  |   |           |  
|Balance at end of period             |  | $                          | 1,698,000 |      |  | $ | 1,487,000 |  
|                                     |  |                            |           |      |  |   |           |  

|                                     |  |                          |           |      |  |   |           |  
|------------------------------------ |  | ------------------------ | --------- | ---- |  | - | --------- | -
|                                     |  | Six months ended June 30
|                                     |  |                         
|                                     |  | 2002                     |           | 2001
|                                     |  |                          |           |     
|Balance at beginning of period       |  | $                        | 1,498,000 |      |  | $ | 1,323,000 |  
|Provision for possible credit losses |  |                          | 188,000   |      |  |   | 308,000   |  
|Charge-offs                          |  |                          | (23,000   | )    |  |   | (146,000  | )
|Recoveries                           |  |                          | 35,000    |      |  |   | 2,000     |  
|Net Recoveries (Charge-offs)         |  |                          | 12,000    |      |  |   | (144,000  | )
|                                     |  |                          |           |      |  |   |           |  
|Balance at end of period             |  | $                        | 1,698,000 |      |  | $ | 1,487,000 |  
|                                     |  |                          |           |      |  |   |           |  

At June 30, 2002, the allowance for loan losses stood at $1,698,000 compared to
$1,498,000 at December 31, 2001, and $1,487,000 at June 30, 2001. The ratio of
the allowance to total loans outstanding was 1.40 percent, 1.23 percent and
1.26 percent respectively at June 30, 2002, December 31, 2001, and June 30,
2001.

Non-performing Assets and Foreclosed Real Estate

Non-performing assets totaled $1,076,000 at June 30, 2002. This represented
0.89 percent of total loans and foreclosed real estate compared to $1,155,000
or 0.95 percent at December 31, 2001, and $1,132,000 or 0.96 percent at June
30, 2001.

8



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##### Table of Contents



|                                                 |  |          |       |              |  |          |       |  |  |  |       | 
|------------------------------------------------ |  | -------- | ----- | ------------ |  | -------- | ----- |  |  |  | ----- | 
|                                                 |  | June 30, |       | December 31, |  | June 30,
|                                                 |  | 2002     |       | 2001         |  | 2001    
|                                                 |  |          |       |              |  |         
|Analysis of Non-Performing Assets
(in thousands) |  |          |       |              |  |          |       |  |  |  |       | 
|Accruing Loans past due 90 days or
more          |  |          | 246   |              |  |          | 602   |  |  |  | 818   | 
|Non-accrual loans                                |  |          | 830   |              |  |          | 553   |  |  |  | 314   | 
|Foreclosed real estate                           |  |          | 0     |              |  |          | 0     |  |  |  | 0     | 
|                                                 |  |          |       |              |  |          |       |  |  |  |       | 
|Total                                            |  |          | 1,076 |              |  |          | 1,155 |  |  |  | 1,132 | 

Income Taxes

Accrued income taxes applicable to income for the three-month period ended
June 30, 2002 were $167,000 compared to $132,000 for the same period in 2001.
Pretax income for the three months ended June 30, 2002 totaling $502,000 was
down $48,000 from the $454,000 for the three months ended June 30, 2001. The
effective tax rates for these periods were 33.27 percent and 29.07 percent
respectively.

FINANCIAL CONDITION

Loans and Investments

At June 30, 2002, loans totaled $121,031,000, a reduction of $1,188,000 or 0.97
percent over December 31, 2001 and an increase of $3,144,000 or 2.67 percent
over the level reported at June 30, 2001. At June 30, 2002, the Bank had
$89,531,000 in loans secured by real estate. The collectibility of a
substantial portion of the loan portfolio is susceptible to changes in economic
and market conditions in the region. The Bank generally requires collateral on
all real estate exposures and typically maintains loan-to-value ratios of no
greater than 80 percent.

9



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##### Table of Contents



Types of Loans

The major classification of loans net of unearned income in the Banks
portfolio at June 30, 2002 and December 31, 2002 were:

|                   |                        |   |                |        |      |   |         |        | 
|------------------ | ---------------------- | - | -------------- | ------ | ---- | - | ------- | ------ | 
|                   |                        |   | 2002           |        | 2001
|                   |                        |   |                |        |     
|                   |                        |   | (in thousands)
|Commercial         |                        | $ | 50,230         |        |      | $ | 53,791  |       
|Real Estate:       |                        |   |                |        |      |   |         |       
|                   | Commercial             |   |                | 35,254 |      |   |         | 28,349 | 
|                   | Construction           |   |                | 6,632  |      |   |         | 7,002  | 
|                   | Residential 1-4 family |   |                | 12,638 |      |   |         | 13,942 | 
|Consumer and other |                        |   | 16,277         |        |      |   | 19,135  |       
|                   |                        |   |                |        |      |   |         |       
|Total              |                        | $ | 121,031        |        |      | $ | 122,219 |       
|                   |                        |   |                |        |      |   |         |       

At June 30, 2002, investments totaled $23,420,000, an increase of $8,206,000 or
53.94 percent over December 31, 2001 and an increase of $15,046,000 or 179.68
percent over the level reported at June 30, 2001. In the second quarter of
2002, the Company added $7,650,000 of mortgage-backed securities to the
investment portfolio to improve portfolio earnings and bolster liquidity.

Deposits

At June 30, 2002, total deposits were $128,020,000, compared to $130,344,000 at
December 31, 2001 and $124,808,000 at June 30, 2001. This represents a 1.78
percent decrease from December 31, 2001 and a 2.57 percent increase from June
30, 2001. Non-interest bearing deposits totaled $36,753,000 at June 30, 2002
compared to $38,233,000 at December 31, 2001 and $31,384,000 at June 30, 2001.
Interest bearing deposits totaled $91,267,000, a decrease of $2,157,000 or 2.3
percent from June 30, 2001 and decrease of $844,000 or 0.92 percent from the
level reported at December 31, 2001.

Borrowings

At June 30, 2002, Federal Home Loan Bank borrowings were $10,793,000, compared
to $4,005,000 at December 31, 2001 and at June 30, 2001. This represents a
169.49 percent increase from December 31, 2001 and from March 31, 2001. In the
second quarter of 2002, the Company increased Federal Home Loan Bank borrowings
by $6,450,000 and invested most of the proceeds in investment
securities and loans.

During the second quarter of 2002,
the Trust issued 30 year Floating Rate Capital Securities to a third
party investor for an aggregate of $5 million in a private
placement exempt from registration under the Securities Act of 1933.
The proceeds of this issuance were utilized by the Trust to purchase
debentures in Bancorp having terms similar to the capital securities.
Distributions on the capital securities and interest on the
debentures are payable quarterly at a variable interest rate equal to
the three month London Interbank offered rate plus 3.5%. Issue costs
with respect to this transaction totaled approximately $200,000 and
are being amortized over a 30 year period. The full amount of the
capital securities is anticipated to constitute Tier 1 capital for
regulatory capital purposes. The Company invested most of the
proceeds from this transaction in the Bank to support additional
growth in loans and investments. Additional
information can be found in the Notes to Consolidated Interim Financial
Information in Part I, Item 1.

Stockholders Equity and Capital Resources

Stockholders equity totaled $15,210,000 at June 30, 2002, an increase of
$472,000 or 3.20 percent over December 31, 2001 and an increase of $1,054,000
or 7.46 percent over June 30, 2001. The increase in capital over last year is
principally due to retained earnings substantially offset by cash dividends and
by the repurchase of common stock held by shareholders dissenting to the
holding company formation in June 2001.

10



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##### Table of Contents



Cash dividends paid year-to-date at June 30, 2002 totaled $168,000 (18 cents
per share) and for the year ended December 31, 2001 and the six months ended
June 30, 2001 totaled $166,000 (17 cents per share). Book value per share was
$16.26 at June 30, 2002 compared to $15.77 at December 31, 2001 and $15.15 at
June 30, 2001. Book value per share is calculated by dividing total equity by
total shares outstanding, giving retroactive effect to the July 2001
three-for-two stock split.

The following table displays the capital ratios at June 30, 2002 and December
31, 2001 for EvergreenBancorp and Bank. The capital ratios for June 30, 2002
reflect additional $5 million regulatory Tier 1 capital resulting from the
issuance of the capital securities described in the Borrowings section above.
As the table illustrates, the capital ratios exceeded those required to be
considered well-capitalized.

|                                         |  |        |        |       |  |        |       |          |  |             |        |       |  |            |      |            |  |               |        |  |  |  |       |  
|---------------------------------------- |  | ------ | ------ | ----- |  | ------ | ----- | -------- |  | ----------- | ------ | ----- |  | ---------- | ---- | ---------- |  | ------------- | ------ |  |  |  | ----- | -
|                                         |  |        |        |       |  |        |       |          |  |             |        |       |  |            |      |            |  | Minimum to Be |        |  |  | 
|                                         |  |        |        |       |  |        |       |          |  |             |        |       |  |            |      |            |  | Well          |        |  |  | 
|                                         |  |        |        |       |  |        |       |          |  |             |        |       |  |            |      |            |  | Capitalized   |        |  |  | 
|                                         |  |        |        |       |  |        |       |          |  |             |        |       |  |            |      |            |  | Under the     |        |  |  | 
|                                         |  |        |        |       |  |        |       |          |  | Minimum     |        |       |  |            |      | Prompt     |  |               |        | 
|                                         |  |        |        |       |  |        |       |          |  | for Capital |        |       |  |            |      | Corrective |  |               |        | 
|                                         |  |        |        |       |  |        |       |          |  | Adequacy    |        |       |  |            |      | Action     |  |               |        | 
|                                         |  | Actual |        |       |  |        |       | Purposes |  |             |        |       |  | Provisions |      |            |  |              
|                                         |  | Amount |        | Ratio |  | Amount |       | Ratio    |  | Amount      |        | Ratio
|                                         |  |        |        |       |  |        |       |          |  |             |        |      
|June 30, 2002                            |  |        |        |       |  |        |       |          |  |             |        |       |  |            |      |            |  |               |        |  |  |  |       |  
|Total Capital
(to risk-weighted assets)  |  |        |        |       |  |        |       |          |  |             |        |       |  |            |      |            |  |               |        |  |  |  |       |  
|EvergreenBancorp                         |  | $      | 21,774 |       |  |        | 16.88 | %        |  | $           | 10,321 |       |  |            | 8.00 | %          |  | $             | 12,901 |  |  |  | 10.00 | %
|EvergreenBank                            |  |        | 21,350 |       |  |        | 16.58 | %        |  |             | 10,304 |       |  |            | 8.00 | %          |  |               | 12,880 |  |  |  | 10.00 | %
|                                        
|Tier 1 Capital
(to risk-weighted assets) |  |        |        |       |  |        |       |          |  |             |        |       |  |            |      |            |  |               |        |  |  |  |       |  
|EvergreenBancorp                         |  |        | 20,160 |       |  |        | 15.63 | %        |  |             | 5,161  |       |  |            | 4.00 | %          |  |               | 7,741  |  |  |  | 6.00  | %
|EvergreenBank                            |  |        | 19,739 |       |  |        | 15.33 | %        |  |             | 5,152  |       |  |            | 4.00 | %          |  |               | 7,728  |  |  |  | 6.00  | %

11



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##### Table of Contents



|                                         |  |        |        |       |  |        |       |          |  |             |        |       |  |            |      |            |  |               |        |  |  |  |       |  
|---------------------------------------- |  | ------ | ------ | ----- |  | ------ | ----- | -------- |  | ----------- | ------ | ----- |  | ---------- | ---- | ---------- |  | ------------- | ------ |  |  |  | ----- | -
|                                         |  |        |        |       |  |        |       |          |  |             |        |       |  |            |      |            |  | Minimum to Be |        |  |  | 
|                                         |  |        |        |       |  |        |       |          |  |             |        |       |  |            |      |            |  | Well          |        |  |  | 
|                                         |  |        |        |       |  |        |       |          |  |             |        |       |  |            |      |            |  | Capitalized   |        |  |  | 
|                                         |  |        |        |       |  |        |       |          |  |             |        |       |  |            |      |            |  | Under the     |        |  |  | 
|                                         |  |        |        |       |  |        |       |          |  | Minimum     |        |       |  |            |      | Prompt     |  |               |        | 
|                                         |  |        |        |       |  |        |       |          |  | for Capital |        |       |  |            |      | Corrective |  |               |        | 
|                                         |  |        |        |       |  |        |       |          |  | Adequacy    |        |       |  |            |      | Action     |  |               |        | 
|                                         |  | Actual |        |       |  |        |       | Purposes |  |             |        |       |  | Provisions |      |            |  |              
|                                         |  | Amount |        | Ratio |  | Amount |       | Ratio    |  | Amount      |        | Ratio
|                                         |  |        |        |       |  |        |       |          |  |             |        |      
|Tier 1 Capital
(to average assets)       |  |        |        |       |  |        |       |          |  |             |        |       |  |            |      |            |  |               |        |  |  |  |       |  
|EvergreenBancorp                         |  |        | 20,160 |       |  |        | 12.60 | %        |  |             | 6,400  |       |  |            | 4.00 | %          |  |               | 8,000  |  |  |  | 5.00  | %
|EvergreenBank                            |  |        | 19,739 |       |  |        | 12.30 | %        |  |             | 6,419  |       |  |            | 4.00 | %          |  |               | 8,023  |  |  |  | 5.00  | %
|                                        
|December 31, 2001                        |  |        |        |       |  |        |       |          |  |             |        |       |  |            |      |            |  |               |        |  |  |  |       |  
|Total Capital
(to risk-weighted assets)  |  |        |        |       |  |        |       |          |  |             |        |       |  |            |      |            |  |               |        |  |  |  |       |  
|EvergreenBancorp                         |  |        | 16,181 |       |  |        | 12.78 | %        |  |             | 10,132 |       |  |            | 8.00 | %          |  |               | 12,665 |  |  |  | 10.00 | %
|EvergreenBank                            |  |        | 16,099 |       |  |        | 12.71 | %        |  |             | 10,131 |       |  |            | 8.00 | %          |  |               | 12,663 |  |  |  | 10.00 | %
|                                        
|Tier 1 Capital
(to risk-weighted assets) |  |        |        |       |  |        |       |          |  |             |        |       |  |            |      |            |  |               |        |  |  |  |       |  
|EvergreenBancorp                         |  |        | 14,683 |       |  |        | 11.59 | %        |  |             | 5,066  |       |  |            | 4.00 | %          |  |               | 7,599  |  |  |  | 6.00  | %
|EvergreenBank                            |  |        | 14,601 |       |  |        | 11.53 | %        |  |             | 5,065  |       |  |            | 4.00 | %          |  |               | 7,598  |  |  |  | 6.00  | %
|                                        
|Tier 1 Capital
(to average assets)       |  |        |        |       |  |        |       |          |  |             |        |       |  |            |      |            |  |               |        |  |  |  |       |  
|EvergreenBancorp                         |  |        | 14,683 |       |  |        | 9.57  | %        |  |             | 6,135  |       |  |            | 4.00 | %          |  |               | 7,669  |  |  |  | 5.00  | %
|EvergreenBank                            |  |        | 14,601 |       |  |        | 9.68  | %        |  |             | 6,032  |       |  |            | 4.00 | %          |  |               | 7,540  |  |  |  | 5.00  | %

Liquidity

Liquidity is defined as the ability to provide sufficient cash to fund
operations and meet obligations and commitments on a timely basis. Through
asset and liquidity management, the Company controls its liquidity position to
ensure that sufficient funds are available to meet the needs of depositors,
borrowers, and creditors.

In addition to cash and cash equivalents, asset liquidity is provided by the
available-for-sale securities portfolio. More than 58 percent of the investment
balances within this portfolio mature within one year. Liquidity is further
enhanced by deposit growth, federal funds purchased and securities sold under
agreements to repurchase, borrowings, and planned cash flows, maturities and
sales of investments and loans.

12



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##### Table of Contents



The consolidated statement of cash flows contained in this report provides
information on the sources and uses of cash for the respective year-to-date
periods ending June 30, 2002 and 2001. See Bancorps Form 10-K for the year
ended December 31, 2001 for additional information.

13



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##### Table of Contents






Item 3. Quantitative and Qualitative Disclosures About Market Risk

There were no material changes in information about market risk from that
provided in the Companys Form 10-K for the year ended December 31, 2001.

Forward-Looking Information Statement

Statements in this report regarding future events or performance are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 (PSLRA) and are made pursuant to the safe
harbors of the PSLRA. Actual results could be quite different from those
expressed or implied by the forward-looking statements. Any statements that
expressly or implicitly predict future results, performance, or events should
be considered forward-looking. Factors that could cause results to differ from
forward-looking statements include, among others, risks discussed in the rest
of this report as well as the following specific items: general economic
conditions, including levels of employment, whether national, regional, or
local, that could affect the demand for loans or lead to increased loan losses;
competitive factors, including increased competition with community, regional,
and national financial institutions that may lead to pricing pressures on rates
the Companys bank subsidiary charges on loans and pays on deposits, loss of
customers of greatest value to the Company, or other losses; increasing or
decreasing interest rate environments that could lead to decreased net interest
margin; changing business conditions in the banking industry; changes in the
regulatory environment or new legislation; and changes in technology or
required investments in technology. Readers are cautioned not to place undue
reliance on forward-looking statements, which reflect managements analysis
only as of the date of the statement. The Company does not intend to publicly
revise or update forward-looking statements to reflect events or circumstances
that arise after the date of this report.




PART II  OTHER INFORMATION




ITEM 1. LEGAL PROCEEDINGS

There are no material pending legal proceedings to which EvergreenBancorp,
Inc. or its subsidiaries are a party other than ordinary routine litigation
incidental to their respective businesses.




ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS

None

14



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##### Table of Contents






ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None




Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

ITEM 5. OTHER INFORMATION

None

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K



| | (a) |  | Exhibits           
| | --- |  | -------------------
|
| |     |  | Exhibit 99         
|
| | (b) |  | Reports on Form 8-K
|
| |     |  | None               




SIGNATURES

Under the requirements of the Securities Exchange Act of 1934, the Company has
duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

Dated this 12th day of August, 2002.

| |                                                                                                                                                
| | -----------------------------------------------------------------------------------------------------------------------------------------------
| | EVERGREENBANCORP, INC                                                                                                                          
|
|
| | /s/ William G. Filer IIWilliam G. Filer IISenior Vice President and Chief Financial Officer(Authorized Officer and Principal Financial Officer)

15