Exhibit 99.1

                          May 24, 2000




To Our Shareholders:

     We are pleased to inform you that your Board of Directors
has authorized a 2-for-1 stock split in the form of a stock
dividend.  Each shareholder of record on June 5, 2000 will
receive one additional share of common stock for each share held
on that date.  The distribution date for the new shares will be
June 12, 2000.  The distribution of a stock dividend was made
possible by the action taken by our shareholders to increase the
authorized capital stock of our Company.  As we have previously
disclosed, the stock distribution is being made to cause a
sufficient number of shares to be issued to enable Exchange
National Bancshares to satisfy Nasdaq's minimum "float"
requirements, which is a necessary condition for our Company to
have its stock listed on the Nasdaq National Market.  It will
still be necessary for our Company to satisfy other Nasdaq
listing requirements, including a requirement that three dealers
be willing to make a market in our common stock.  There is no
assurance that our Nasdaq listing application will be approved.

     In addition to our Company's distribution of a stock
dividend, we are also pleased to inform you that our Company has
adopted a Shareholder Rights Plan.  Adoption of such plans has
become common practice in major American companies and a well
accepted approach to safeguarding the company and its
shareholders from coercive or unfair takeover offers and
practices.  Such plans also preserve the Board's bargaining power
and flexibility in dealing with hostile takeover attempts.  This
action was taken after long and careful study and was not taken
in response to any pending takeover or proposed change in control
of our Company.  To effect the Plan, the Board of Directors
declared a dividend of one share purchase right for each
outstanding share of our Company's common stock.  The
distribution is being made to shareholders of record as of the
close of business on June 5, 2000.

     Under the Plan, the rights will initially trade together
with our Company's common stock and will not be exercisable.  In
the absence of further Board action, the rights generally will
become exercisable and allow the holder to acquire our Company's
common stock at a discounted price if a person or group acquires
15 percent or more of our Company's common stock.  Rights held by
persons who exceed the applicable threshold will be void.  Under
certain circumstances, the rights will entitle the holder to buy
shares in an acquiring entity at a discounted price.

     The issuance of the rights is not a taxable event, will not
affect our Company's reported financial condition or results of
operations (including earnings per share), should not interfere
with our Company's operating, financing or investing activities
and will not change the way in which our Company's common stock
is currently traded.

     A summary of the Shareholder Rights Plan (which explains the
terms and nature of the rights) is enclosed.  Shareholders are
urged to review the summary carefully and retain it with their
permanent records.

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     In adopting the Shareholder Rights Plan, the Board has
expressed its confidence in our Company's future and its
determination that you, our shareholders, be given every
opportunity to participate fully in that future.

                              Sincerely,



                              /s/  Donald L. Campbell
                              Donald L. Campbell
                              Chairman of the Board and President


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