EXHIBIT 13
<PAGE>
                              [LOGO] Sistersville
                              ===================
                                  Bancorp, Inc.
                                      1999
                                 ANNUAL REPORT


<PAGE>
                               [LOGO]    Sistersville
                             ==========================
                                 Bancorp, Inc.

                          726 WELLS STREET, P.O. BOX 187
                             SISTERSVILLE, WV 26175
                                  304-652-3671



Report to Shareholders:

I am pleased to provide to you the  Sistersville  Bancorp,  Inc. (the "Company")
1999 Annual Report.  The fiscal year which ended March 31, 1999 marks the end of
the Company's  second  reporting  year as a public  company,  and the first year
covering a full twelve month period.

During the year, to enhance  shareholder  value, the Company  repurchased 61,264
shares of its common  stock in the open  market.  Combined  with the  repurchase
completed in March 1998, a total of 94,335  shares have been  repurchased  since
the mutual to stock  conversion in June 1997. The repurchases have increased the
book value of the stock to $17.26 per share.

A  total  of  $202,016.92  was  paid  to our  shareholders  in the  form of cash
dividends.  More than half of the total was  considered  a return of capital and
therefore was nontaxable to shareholders.

I am happy to report that First Federal Savings Bank (the "Bank"), the Company's
subsidiary,  opened a new drive through in July. The drive through has proven to
be quite  popular  with  customers  due to the  convenience  it provides and its
extended hours of operation.

Efforts have been ongoing  throughout the year to assure a smooth transition for
the date  changeover  to the Year  2000.  Most of our  system  testing  has been
completed  and the  Company  and  the  Bank  will  both be  ready  for the  date
changeover well in advance of December 31, 1999.

I look  forward to the  challenges  of  enhancing  shareholder  value during the
upcoming  year.  I commend  the  dedication  and  efforts of our  employees  and
directors,  and  express  my  appreciation  for  the  continued  support  of our
customers and shareholders.

Sincerely,


/s/Stanley M. Kiser

Stanley M. Kiser
President
<PAGE>


                           SISTERSVILLE BANCORP, INC.

Corporate Profile

Sistersville  Bancorp,  Inc. (the "Company") is a Delaware corporation organized
in March,  1997, at the direction of First Federal Savings and Loan  Association
of Sistersville (the "Association") to acquire all of the capital stock that the
Association  issued in its conversion from the mutual to stock form of ownership
(the  "Conversion").  On June 25, 1997,  the  Conversion  was  completed and the
Association became a wholly owned subsidiary of the Company and changed its name
to First Federal Savings Bank (the "Bank"). The Company is a unitary savings and
loan holding company which, under existing laws,  generally is not restricted in
the types of business  activities in which it may engage  provided that the Bank
retains a specified  amount of its assets in  housing-related  investments.  The
Company  conducts no  significant  business or  operations of its own other than
holding all of the  outstanding  stock of the Bank and  investing  the Company's
portion of the net proceeds obtained in the Conversion.

The  Bank  is  a  federally   chartered  stock  savings  bank  headquartered  in
Sistersville,   West  Virginia.   The  Bank  is  subject  to   examination   and
comprehensive  regulation  by the Office of Thrift  Supervision  ("OTS") and its
deposits  are  federally  insured  by the  Savings  Association  Insurance  Fund
("SAIF").  The  Bank is a  member  of and  owns  capital  stock  in the  FHLB of
Pittsburgh,  which is one of the 12 regional  banks in the FHLB  system.  Unless
otherwise  stated,  the term  "Bank"  refers to both the  Bank's  and  Company's
activities on a consolidated basis.

The Bank  operates a  traditional  savings  bank  business,  attracting  deposit
accounts from the general public and using those  deposits,  together with other
funds,  primarily  to  originate  and invest in loans  secured by  single-family
residential real estate.

Stock Market Information

The  Company's  common  stock has been traded  under the symbol  "SVBC" since it
commenced  trading in June, 1997.  Price  information with respect to the common
shares of SVBC is quoted on the OTC Bulletin  Board.  The  following  table sets
forth the high and low bid prices for the common shares of SVBC for each quarter
of fiscal 1998 and 1999 ending after June 25, 1997,  the date of  completion  of
the Conversion.  Price  quotations  reflect  inter-dealer  prices without retail
mark-up, mark-down, or commission, and may not represent actual transactions.

                  Date                                        High         Low
                  ----                                        ----         ---


Fiscal year ended March 31, 1999:

         April 1, 1998 - June 30, 1998                      $ 16.00      $ 15.00
         July 1, 1998 - September 30, 1998                    16.50        13.00
         October 1, 1998 - December 31, 1998                  13.50        12.75
         January 1, 1999 - March 31, 1999                     13.38        12.38

Fiscal year ended March 31, 1998:

         June 25, 1997 - June 30, 1997                      $ 14.00      $ 13.13
         July 1, 1997 - September 30, 1997                    16.00        13.25
         October 1, 1997 - December 31, 1997                  16.00        14.75
         January 1, 1998 - March 31, 1998                     16.50        15.50

                                       -2-

<PAGE>



SVBC declared a semi-annual dividend of $.16 per share in December,  1997 and in
June,  1998.  A  semi-annual  dividend  per share of $.17 was also  declared  in
December,  1998. The number of  shareholders of record of common stock as of the
record date of May 28, 1999,  was  approximately  200. This does not reflect the
number of persons or entities who held stock in nominee or "street" name through
various  brokerage  firms. At May 28, 1999,  there were 567,093 shares of common
stock  outstanding.  The Company's  ability to pay dividends to  stockholders is
primarily  dependent  upon the dividends it receives from the Bank. The Bank may
not  declare or pay a cash  dividend  on any of its stock if the effect  thereof
would  cause the Bank's  regulatory  capital to be reduced  below (1) the amount
required  for  the  liquidation  account  established  in  connection  with  the
Conversion, or (2) the regulatory capital requirements imposed by the OTS.



                                       -3-

<PAGE>



                              SELECTED CONSOLIDATED
                      FINANCIAL INFORMATION AND OTHER DATA


The following table sets forth certain  information  concerning the consolidated
financial condition,  earnings and other data regarding  Sistersville Bancorp at
the dates and for the periods indicated.


Selected financial condition and other data:

                                                         At March 31,
                                                  -----------------------
                                                        1999      1998
                                                        ----      ----
                                                     (Dollars in thousands)

Total assets                                           $32,188   $31,735
Loans receivable, net                                   24,320    23,647
Mortgage-backed securities                                 809       527
Investments (1)                                          6,294     6,856
Cash - noninterest bearing                                  30        97
Savings deposits                                        20,848    20,596
Other borrowings                                         1,000         0
Shareholders' equity (2)                                 9,792    10,581

Number of full-service offices                               1         1

(1)  Includes  FHLB stock,  FHLMC stock and interest  bearing  deposits in other
     financial institutions

(2)  Includes  accumulated other comprehensive  income, net of applicable income
     taxes for March 31, 1998, through March 31, 1999


Summary of Operations
                                                            Year Ended March 31,
                                                            --------------------
                                                                1999      1998
                                                                ----      ----

                                                          (Dollars in Thousands)

Interest and Dividend Income                                  $ 2,364   $ 2,350
Interest Expense                                                  896       986
                                                              -------   -------
  Net Interest Income                                           1,468     1,364
                                                              -------   -------
Provision for Loan Losses                                           3         6
                                                              -------   -------
  Net interest income after provision for loan losses           1,465     1,358
                                                              -------   -------

Non-interest income:
  Service charges                                                  32        24
  Gain (loss) on sale of real estate, net                           0         0
  Gain (loss) on sale of investments, net                         168         0
  Other income                                                      2         2
                                                              -------   -------
    Total other income                                            202        26
                                                              -------   -------

Non-interest expense:
  Compensation and employee benefits                              663       440
  Occupancy and equipment                                          78        72
  Deposit insurance premiums                                       13        14
  Other general and administrative                                301       275
                                                              -------   -------
    Total non-interest expense                                   1055       801
                                                              -------   -------

Income before income taxes                                        612       583

Provision for federal income taxes                                223       209
                                                              -------   -------


Net income                                                    $   389   $   374
                                                              =======   =======

                                      -4-
<PAGE>

The table  below sets forth  certain  performance  ratios of the Company for the
periods indicated:

                                                              For the Year Ended
                                                                 March 31,
                                                              ------------------
                                                                  1999     1998
                                                                  ----     ----

Capital Ratios;
Average equity to average assets ratio
  (average equity divided by average total assets)              32.25%    30.30%
Equity to assets at period end                                  30.42%    33.34%


performance Ratios:
Return on average equity (net income
  divided by average equity                                      3.77%     3.96%
Return on average assets (net income
  divided by average total assets)                               1.22%     1.20%
Net interest rate spread                                         3.32%     3.08%
Net yield on average interest earnings assets                    4.71%     4.48%
Average interest earning assets to
  average interest-bearing liabilities                         148.43%   143.45%
Net interest income after provision for possible
  loan losses, to total other expenses                         138.86%   169.54%
Non-interest expense to average assets                           3.30%     2.57%
Efficiency Ratio(1)                                             63.26%    57.88%


Asset Quality Ratios:
Non-performing loans to total assets                             0.01%     0.52%
Non-performing loans to total loans                              0.01%     0.70%
Allowance for loan losses to total loans                         0.71%     0.71%
Allowance for loan losses to total non-performing loans       8600.00%   101.81%
Allowance for loan losses to total non-performing assets(2)   8600.00%   101.81%


--------------------------------------------------------------------------------
(1)  Operating  Expenses as a percent of net  interest  income plus non interest
     income.
(2)  Non-performing  assets include non-accrual loans,  accruing loans more than
     90 days past due and real estate acquired in settlement of loans.

                                      -5-

<PAGE>



                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS


GENERAL

The Company was recently formed,  therefore, its results from operations consist
primarily of interest income from the investing of funds from proceeds generated
by the sale of common  stock and  expense  incurred  in the  maintaining  of the
investment  portfolio.  The Bank's results of operations are primarily dependent
on its net interest income,  which is the difference between the interest income
earned on its assets, primarily loans and investments,  and the interest expense
on its  liabilities,  primarily  deposits.  Net interest  income may be affected
significantly  by general  economic and  competitive  conditions and policies of
regulatory  agencies,  particularly those with respect to market interest rates.
The  results of  operations  are also  influenced  by the level of  non-interest
expense, such as employee benefits and other income, loan-related fees, and fees
on deposit-related services.

The Bank primarily originates  fixed-rate loans with terms of up to 30 years and
attempts  to  maintain  sufficient  capital  and other  liquid  assets to manage
interest rate risk.


ASSET/LIABILITY MANAGEMENT

The Bank's net interest income is sensitive to changes in interest rates, as the
rates paid on  interest-bearing  liabilities  generally  change  faster than the
rates earned on  interest-earning  assets. As a result, net interest income will
frequently  decline in periods of rising  interest rates and increase in periods
of decreasing interest rates.

To mitigate the impact of changing  interest  rates on its net interest  income,
the Bank manages its interest  rate  sensitivity  and  asset/liability  products
through  two  committees  of the  Board,  the Loan  Committee  and the  Interest
Committee. The committees meet, as necessary, to determine the rates of interest
for loans and deposits. Rates on deposits are primarily based on the Bank's need
for funds and on a review of rates offered by other  financial  institutions  in
the Bank's market  areas.  Interest  rates on loans are  primarily  based on the
interest  rates offered by other  financial  institutions  in the Bank's primary
market areas as well as the Bank's cost of funds.

The  committees  manage the interest  rate  sensitivity  of the Bank through the
determination  and  adjustment  of   asset/liability   composition  and  pricing
strategies.  The  committees  then monitor the impact of interest  rate risk and
earnings  consequences  of such  strategies  for  consistency  with  the  Bank's
liquidity needs, growth, and capital adequacy.  The Bank's principal strategy is
to manage interest rate  sensitivity of its interest earning assets and interest
bearing liabilities by maintaining sufficient capital and other liquid assets in
the event of an increase in interest rate risk, typically because of an increase
in market interest rates.



                                       -6-

<PAGE>



NET PORTFOLIO VALUE

The Bank  computes  amounts  by which  the net  present  value of cash flow from
assets,  liabilities  and off balance sheet items ("the net portfolio  value" or
"NPV")  would  change  in the  event of a range of  assumed  changes  in  market
interest rates.  These  computations  estimate the effect on the Bank's NPV from
instantaneous  and  permanent 1% to 3% (100 to 300 basis  points)  increases and
decreases in market interest rates.  Based upon OTS  assumptions,  the following
table presents the Bank's NPV at March 31, 1999.



                                             Net Portfolio Value
                                             -------------------
              Change                                      Board
             in Market                       NPV          Policy
         Interest Rates                  Ratio (1)       Limit (2)
         --------------                 ------------     ---------

               +300 bp                     25.79  %         10%
               +200 bp                     27.15            10
               +100 bp                     28.28            10
                  0 bp                     28.95            10
               -100 bp                     29.51            10
               -200 bp                     30.02            10
               -300 bp                     30.63            10


--------------
(1)  The NPV ratio is  calculated  as the estimated NPV divided by the estimated
     NPV of assets.

(2)  Minimum  acceptable  NPV  ratio  limits  are  established  by the  Board of
     Directors of the Bank.


Certain  assumptions  utilized by the OTS in assessing the interest rate risk of
savings  institutions  were  employed in  preparing  the previous  table.  These
assumptions  relate to interest  rates,  loan  prepayment  rates,  deposit decay
rates,  and the market values of certain assets under the various  interest rate
scenarios.  It was also  assumed  that  delinquency  rates  will not change as a
result of changes in interest rates although there can be no assurance that this
will be the case. Even if interest rates change in the designated amounts, there
can be no assurance that the Bank's assets and liabilities  would perform as set
forth above.


                                       -7-

<PAGE>



AVERAGE BALANCE SHEET

The  following  table sets forth certain  information  relating to the Company's
average  balance sheet and reflects the average yield on assets and average cost
of liabilities for the periods indicated and the average yields earned and rates
paid.  Such yields and costs are  derived by dividing  income and expense by the
average  balance  of  assets  and  liabilities,  respectively,  for the  periods
presented. Average balances are derived from month-end balances. Management does
not believe that the use of month-end balances instead of daily average balances
has caused any material differences in the information presented

<TABLE>
<CAPTION>

                                                            Year Ended March 31,                                At March 31,
                                     ---------------------------------------------------------------------  ------------------------
                                                  1999                                1998                          1999
                                     ---------------------------------    --------------------------------  ------------------------
                                      Average                 Average     Average               Average                  Average
                                      Balance    Interest   Yield/Cost    Balance    Interest  Yield/Cost    Balance    Yield/Cost
                                      -------    --------   ----------    -------    --------  ----------    -------    ----------
                                                                               (Dollars in Thousands)
<S>                                  <C>           <C>        <C>        <C>         <C>        <C>      <C>             <C>
Interest-earning assets:
  Loans receivable (1)                $24,032       2,002       8.33%     $22,873     $1,930      8.44%    $24,320         7.94%
  Investment securities (2)(6)          6,580         322       4.89%       7,244        397      5.48%      6,294         3.61%
  Mortgage - backed securities            568          41       7.22%         337         24      7.12%        809         6.28%
                                     ---------   ---------  ----------    --------   --------   --------   --------    ----------
Total interest - earning assets        31,180       2,365       7.58%      30,454      2,351      7.72%     31,423         7.03%
                                                 ---------  ----------               --------   --------   --------    ----------
Non-interest - earning assets             807                                 709                              765
                                     ---------                            --------                         --------
Total assets                          $31,987                             $31,163                           32,188
                                     =========                            ========                         ========
Interest - bearing liabilities:
  Regular  Savings deposits             8,233         295       3.58%       8,521        358      4.20%      8,426         3.50%
  Now Accounts                          1,224          29       2.37%       1,325         37      2.79%      1,327         2.50%
  Money Market Demand                   1,160          34       2.93%       1,351         51      3.77%      1,136         3.25%
  Time Deposits                         9,775         506       5.18%      10,033        540      5.38%      9,959         4.68%
                                     ---------   ---------  ----------    --------   --------   --------   --------    ----------
      Subtotal Deposits                20,392         864       4.24%      21,230        986      4.64%     20,848         3.99%
  Short -term borrowings                  615          32       5.20%           0          0        -        1,000         5.15%
                                     ---------   ---------  ----------    --------   --------   --------   --------    ----------
Total interest - bearing liabilities   21,007         896       4.27%      21,230        986      4.64%     21,848         4.04%
                                                 ---------  ----------               --------   --------               ----------
Noninterest - bearing liabilities         665                                 491                              548
                                     ---------                            --------                         --------
Total Liabilities                      21,672                              21,721                           22,396

Retained Earnings (3)                  10,315                               9,442                            9,792
                                     ---------                            --------                         --------
Total liabilities and
   retained earnings                  $31,987                             $31,163                          $32,188
                                     =========                            ========                         ========
Net interest income                                $1,469                             $1,365
                                                 =========                           ========
Interest rate spread(4)                                         3.32%                             3.08%                    2.99%
                                                            ==========                          ========               ==========
Net yield on interest - earning
  assets(5)                                                     4.71%                             4.48%                    4.67%
                                                            ==========                          ========               ==========
Ratio of average interest - earning
  assets to average interest -
  bearing liabilities                                         148.43%                           143.45%                  143.84%
                                                            ==========                          ========               ==========

</TABLE>
------------
(1)  Average balances include non-accrual loans.
(2)  Includes interest - bearing deposits in other financial institutions,  FHLB
     stock and FHLMC stock; bonds
(3)  Includes accumulated other comprehensive income on securities available for
     sale, net of applicable deferred income taxes.
(4)  Interest rate spread represents the difference between the average yield on
     interest-earning   assets  and  the   average   cost  of   interest-bearing
     liabilities.
(5)  Net yield on interest - earning assets  represents net interest income as a
     percentage of average interest - earning assets.
(6)  Includes municipal  securites whose average yield/cost is calculated on the
     tax equivalent yield.


                                       -8-

<PAGE>


Rate/Volume Analysis

The table below sets forth  certain  information  regarding  changes in interest
income and interest expense of the Company for the periods  indicated.  For each
category   of   interest-earning   assets  and   interest-bearing   liabilities,
information  is  provided  on  changes  attributable  to (i)  changes  in volume
(changes  in  average  volume  multiplied  by old rate);  (ii)  changes in rates
(changes in rate multiplied by old average volume); (iii) changes in rate-volume
(changes in rate multiplied by the change in average volume).



                                            Year Ended March 31,
                                               1999 vs. 1998
                                 -----------------------------------------------
                                                          Rate/
                                      Volume     Rate     Volume    Net
                                      ------     ----     ------    ---

Interest-earning assets:
  Loans receivable                     $  98    ($ 25)   ($  2)   $  71
  Investment securities                  (36)     (43)       4      (75)
  Mortgage - backed securities            16        0        0       16
                                       -----    -----    -----    -----
Total interest - earning assets           78      (68)       2       12
                                       -----    -----    -----    -----
Interest - bearing liabilities:
  Savings deposits                       (36)     (85)       3     (118)
  Short -term borrowings                  32        0       32       64
                                       -----    -----    -----    -----
Total interest - bearing liabilities      (4)     (85)      35      (54)
                                       -----    -----    -----    -----

Net change in net interest income      $  82    $  17    ($ 33)   $  66
                                       =====    =====    =====    =====





                                       -9-

<PAGE>



Comparison of Financial Condition

In connection  with the Conversion on June 25, 1997,  the Company  completed the
sale of  661,428  shares  (the  "Offering")  at $10 per share and  received  net
proceeds of  approximately  $5,665,000.  The Company  transferred  approximately
$3,097,000  of the net  proceeds  to the  Bank  for the  purchase  of all of the
capital  stock of the Bank.  In  addition,  $529,140  was  loaned to the  Bank's
Employee  Stock  Ownership  Plan  ("ESOP")  for the  purchase  of  shares in the
Offering.

The Company's total assets increased by approximately $453,000 to $32,188,000 at
March 31, 1999, from  $31,735,000 at March 31, 1998.  Cash and cash  equivalents
increased $308,000 to $1,874,000 at March 31, 1999, from $1,566,000 at March 31,
1998. This increase  represented the inflow of cash associated with Federal Home
Loan   Bank   advances,   depositors'   investment   of   funds,   maturity   of
available-for-sale   securities,  and  principal  collected  on  mortgage-backed
securities offset by the purchase of available-for-sale securities,  increase in
loan  production,  and purchase of shares for the Bank's  Restricted  Stock Plan
("RSP") and Treasury  shares.  Investment  securities  decreased  $655,000  from
$5,914,000 at March 31, 1998, to $5,259,000 at March 31, 1999. This decrease was
the result of $4.1 million in matured U.S.  Government and Agency securities and
$173,000 in principal  collected  on  mortgage-backed  securities  offset by the
purchase of $3.0 million in U.S. Agency and Municipal securities and purchase of
$515,000 in mortgage-backed  securities. Net loans receivable increased $673,000
from  $23,647,000  at March 31, 1998,  to  $24,320,000  at March 31,  1999.  The
increase  in  loans  was  attributable  to an  increase  in  one-to-four  family
residential mortgage loans. Such increases primarily reflect the economic health
of the  Bank's  market  area and the  competitive  pricing  of the  Bank's  loan
products.  Office  property and  equipment  increased  $109,000 from $378,000 at
March 31, 1998,  to $488,000 at March 31, 1999,  which was the direct  result of
the construction of a drive-thru facility at the Bank.

Total  liabilities  increased  $1,242,000 from  $21,154,000 at March 31, 1998 to
$22,396,000  at March 31,  1999.  The  increase  was the  result  of  $1,000,000
advanced  from the Federal  Home Loan Bank in order to fund future loan  growth.
Deposits   increased  by  $252,000  to  $20,848,000  at  March  31,  1999,  from
$20,596,000  at March 31,  1998 as a result  of the  relative  stability  of the
Bank's  deposit  account  interest  rates,  compared to a  reduction  in deposit
interest rates for alternative investment products available.

Stockholders'  equity  decreased  $790,000  to  $9,792,000  at March  31,  1999,
compared to $10,582,000 at March 31, 1998. The decrease was  attributable to the
purchase  of RSP shares and  Treasury  shares in the  amounts  of  $410,000  and
$798,000,  respectively,  offset by net income of $389,000, allocation of shares
in the ESOP  amounting to $88,000 and vesting of shares in the RSP in the amount
of $126,000. Stockholders' equity was also reduced by dividends of $185,000.


                                      -10-

<PAGE>



Comparison of the Results of  Operations  for the Years Ended March 31, 1999 and
1998

Net  Income.  Net  income  increased  by  $16,000,  or 4.2%,  from net income of
$373,000  for the year ended March 31,  1998,  to net income of $389,000 for the
same period in 1999.

Interest and Dividend Income. Interest and dividend income increased $14,000, or
 .6%, to $2,365,000 for the year ended March 31, 1999, compared to $2,351,000 for
the year ended March 31, 1998. The increase in interest and dividend  income was
due to an increase in taxable interest on loans of $73,000, or 3.8%, offset by a
decrease in interest  on  investments  of  $59,000,  or 14.8%.  The  increase in
interest on loans was due to an increase in the average balance of loans of $1.2
million  for the year ended  March 31,  1999 as  compared  to the same period in
1998,  offset by a decline  of 11 basis  points in  average  yield from 8.44% at
March 31,  1998 to 8.33% for the same period in 1998.  Interest  on  investments
decreased for the year ended March 31, 1999, as compared to March 31, 1998, as a
result of downward  fluctuations  in yields on  investment  securities  and by a
decrease in the average balance of investments of $664,000 from $7.2 million for
the year ended March 31, 1998 to $6.6 million for the year ended March 31, 1999.

Interest Expense. Interest expense decreased $90,000, or 9.1%, from $986,000 for
the year ended March 31,  1998,  to $896,000  for same period  ended in 1999.  A
decrease  in the  average  balance of  interest-bearing  deposits of $838,000 to
$20.4  million from $21.2 million and a reduction in the cost of funds from 4.6%
for the year ended March 31, 1998,  as compared to 4.2% for the year ended March
31, 1999,  resulted in the decrease in interest expense on deposits of $122,000.
The  decrease in  interest on deposits  was offset by an increase in interest on
advances from the Federal Home Loan Bank of $32,000.

Net Interest  Income.  Net interest  income  increased  $104,000,  or 7.6%, from
$1,364,000  for the year ended March 31, 1998, to $1,468,000 for the same period
ended in 1999.  The  increase  is  primarily  attributable  to a decrease in the
balance of  interest-bearing  deposits and an increase in the average balance of
loans  from the year  ended  March 31,  1998,  to the same  period  in 1999,  as
previously discussed.

Provision For Loan Losses.  The provision for loan losses  decreased $2,800 from
$6,200 for the year ended March 31,  1998,  to $3,400 for the same period  ended
March 31, 1999, based on management's  analysis of the reserve's  adequacy.  The
reserve for loan  losses was  $172,250 at March 31, 1999 as compared to $168,850
at March 31, 1998.

Noninterest  income.  Noninterest  income increased by $176,000 from $26,000 for
the year ended March 31,  1998,  to $202,000  for the year ended March 31, 1999.
The   increase   is   primarily   attributable   to  a  gain  on  the   sale  of
available-for-sale  securities  in the 1999  period  of  $168,000  which was not
present in the 1998  period.  The  remaining  portion of  noninterest  income is
comprised primarily of service charges on deposit accounts.

Noninterest Expense. Noninterest expense increased by $254,000 from $801,000 for
the year ended March 31, 1998, to $1,055,000  for the same period ended in 1999.
Compensation and employee  benefits  increased by $223,000 from $440,000 for the
year ended March 31, 1998,  to $663,000  for the year ended March 31, 1999.  The
change is due to an increase in compensation  costs  associated with the RSP and
merit  base pay  increases  of  $142,000,  and by  special  one-time  retirement
agreements  executed  by  four  directors  resulting  in  a  pre-tax  charge  of
approximately  $94,000 in the year ended March 31, 1999, offset by a decrease in
directors fees of $20,000 due to the reduction in the number of directors  being
compensated . Under terms of the  agreements,  the four directors  accepting the
offer  relinquished  their  positions as directors on July 2, 1998.  The RSP was
initiated in July, 1998, and resulted in stock awarded to employees being earned
at a rate of  one-fifth  per year at July 16,  1998,  through  2002.  Franchise,
payroll,  and other taxes  increased  by $9,000 from  $58,000 for the year ended
March 31, 1998, to $67,000 for the year ended March 31, 1999.  The change is the
result of increased payroll taxes on merit base pay increases and on RSP shares
awarded to employees for the year ended March 31, 1999. Other expenses increased
by $15,000 to $70,000
                                      -11-

<PAGE>



for the year ended March 31, 1999, from $55,000 for the same period in 1998. The
increase is  attributable  to an increase in  stationery  and printing  expenses
related  to  costs   associated  with  public  stock  ownership  and  regulatory
requirements and an increase in expenses related to the Year 2000 risk.

Income Taxes. Income tax expense increased by $14,000 from $209,000 for the year
ended  March 31,  1998,  to  $223,000  for the year ended  March 31,  1999.  The
increase is due to an increase in pre-tax income.

Liquidity and Capital Resources

The Bank's sources of funds are deposits,  amortization  and prepayment of loans
and mortgage-backed  securities,  maturities of investment securities, and funds
provided from  operations.  While  scheduled  loan  repayments  are a relatively
predictable  source of funds,  deposit  flows and loan  prepayments  are greatly
influenced by general interest rates, economic conditions, and competition.  The
Bank uses its sources of funds to fund  existing and future  existing and future
loan  commitments,  to fund maturing  certificates of deposit and demand deposit
withdrawals,  to invest in other interest-earning assets, to maintain liquidity,
and to meet operating expenses.

Net cash  provided by  operating  activities  for the year ended March 31, 1999,
totaled $463,000,  a decrease of $169,000 from $632,000 for the year ended March
31, 1998.  The change was primarily  attributable  to net income of $389,000 for
the year ended March 31, 1999, adjusted by a $168,000 gain on available-for-sale
securities and the amortization of the ESOP and RSP in the amount of $88,000 and
$126,000, respectively.

Net cash used in investing activities for the year ended March 31, 1999, totaled
$14,000,  a decrease of $4,782,000  from $4,796,000 for the year ended March 31,
1998. The decrease in cash used for investing  activities was attributable to an
increase of $4,411,000  provided by maturities of investments  and repayments on
mortgage-backed  securities.  This  change  was  offset  by  $3,595,000  used to
purchase investment securities,  $676,000 in net loan originations, and $153,000
used in purchases of office properties and equipment.

Net cash used in financing activities for 1999 totaled $141,000,  as compared to
net cash provided by financing activities of $3,935,000 for the 1998 period. The
decrease of $4,076,000  was the result of the Federal Home Loan Bank advances in
the amount of $1 million offset by the purchase of Treasury shares in the amount
of $798,000, and the purchase of RSP shares in the amount of $410,000.

Liquidity may be adversely  affected by unexpected  deposit outflows,  excessive
interest rates paid by competitors,  adverse  publicity  relating to the savings
and loan industry, and similar matters.  Management monitors projected liquidity
needs and determines the level desired based, in part, on the Bank's commitments
to make loans and  management's  assessment  of the Bank's  ability to  generate
funds.

Certificates  of deposit  scheduled  to mature  during the year ended  March 31,
1999,  total  $5,500,000.  The Bank may renew  these  certificates,  attract new
replacement  deposits  or replace  such funds with  borrowed  funds.  Management
believes,  based  on past  experience,  that the Bank  will  retain  much of the
deposits or replace them with new deposits.

Under  federal  regulations,  the  Bank  is  required  to meet  certain  minimum
regulatory   capital   guidelines.   The  Bank  was  in  compliance  with  these
requirements  at  March  31,  1999.  See  Note 7 of the  Notes  to  Consolidated
Financial Statements.




                                      -12-

<PAGE>



Impact of Inflation and Changing Prices

The  consolidated  financial  statements and the  accompanying  notes  presented
elsewhere in this  document,  have been  prepared in accordance  with  generally
accepted  accounting  principles,  which  require the  measurement  of financial
position  and  operating   results  in  terms  of  historical   dollars  without
considering the change in the relative  purchasing  power of money over time and
due to inflation.  Unlike industrial companies,  virtually all of the assets and
liabilities  of a financial  institution  are  monetary in nature.  As a result,
interest  rates  have a more  significant  impact on a  financial  institution's
performance  than the effects of general levels of inflation.  Interest rates do
not  necessarily  move in the direction or with the same magnitude as the prices
of goods and services.

Recent Accounting Pronouncements

In July 1997,  the FASB  issued  Statement  No.  130,  "Reporting  Comprehensive
Income."  Statement  No. 130 is  effective  for  fiscal  years  beginning  after
December 15, 1997.  This  statement  establishes  standards  for  reporting  and
presentation  of  comprehensive  income and its components  (revenue,  expenses,
gains,  losses)  in a full  set of  general  purpose  financial  statements.  It
requires  that all items that are  required to be  recognized  under  accounting
standards  as  components  of  comprehensive  income be  reported in a financial
statement  that is  presented  with  the  same  prominence  as  other  financial
statements.  Statement  No. 130 requires that  companies  (i) classify  items of
other  comprehensive  income by their nature in a financial  statement  and (ii)
display the accumulated  balance of other  comprehensive  income separately from
retained  earnings and additional  paid-in  capital in the equity section of the
statement of financial  condition.  Reclassification of financial statements for
earlier  periods  provided for  comprehensive  purpose is required.  The Company
current holds securities classified as available-for-sale.  Under the provisions
of Statement No. 130,  unrealized  gains and losses on securities  classified as
available-for-sale are a component of comprehensive income.

In June  1998,  the  FASB  issued  SFAS  No.  133,  "Accounting  for  Derivative
Instruments  and  Hedging  Activities."  SFAS No. 133  provides  accounting  and
reporting  standards for derivatives  instruments,  including certain derivative
instruments  embedded in other contracts,  by requiring the recognition of those
items as assets or liabilities in the statement of financial position,  recorded
at fair value.  SFAS No. 133  precludes a  held-to-maturity  security from being
designated as a hedge item.  However, at the date of initial application of SFAS
No. 133, an entity is permitted to transfer any  held-to-maturity  security into
the  available-for-sale  or trading  categories.  The unrealized holding gain or
loss on such  transferred  securities  shall  be  reported  consistent  with the
requirements  of SFAS No. 115,  "Accounting  for Certain  Investment in Debt and
Equity  Securities."  Such transfers do not raise an issue regarding an entity's
intent to hold other debt  securities  to maturity  in the future.  SFAS No. 133
applies  prospectively for all fiscal quarters of all years beginning after June
15, 1999. Earlier adoption is permitted for any fiscal quarter that begins after
the issue date of SFAS No. 133. Management does not believe the adoption of SFAS
No. 133 will have a material impact on the Company.

Year 2000

Rapid and accurate data processing is essential to the Bank's  operations.  Many
computer  programs  that can only  distinguish  the final two digits of the year
entered (a common  programming  practice in earlier  years) are expected to read
entries for the Year 2000 as the year 1900 or as zero and incorrectly attempt to
compute  payment,  interest,  delinquency,  and  other  data.  The Bank has been
evaluating both information  technology  (computer systems) and  non-information
technology  systems (e.g.,  vault timers and electronic  door lock).  Based upon
such evaluations,  management has determined that the Bank has Year 2000 risk in
three areas: (1) Bank's own computers (2) Computers of others used by the Bank's
borrowers,  and  (3)  Computers  of  others  who  provide  the  Bank  with  data
processing.

Bank's Own Computers.  The Bank has upgraded its computer  system to address the
Year 2000 risk.  The Bank does not expect to have material  additional  costs to
address this risk. The Bank expects,  although there is no assurance, to be Year
2000  compliant  in this risk area by June 30, 1999.  The upgrade  costs did not
have a material  impact on the  Company's  consolidated  financial  position  or
results of operations.

                                      -13-

<PAGE>




Computers of Others Used by the Bank's Borrowers. The Bank has evaluated most of
its borrowers and does not believe the Year 2000 problem should, on an aggregate
basis, impact their ability to make payments to the Bank. The Bank believes that
most of its residential  borrowers are not dependent on their home computers for
income and that none of their commercial borrowers are so large that a Year 2000
problem  would  render them unable to collect  revenue or rent and, in turn,  be
unable to continue to make loan  payments to the Bank.  The Bank does not expect
any material  costs to address  this risk area and  believes  they are Year 2000
compliant in this risk area.

Computers  of Others  Who  Provide  the Bank with Data  Processing.  Should  the
computers of third party data  processing  providers  prove to be  non-compliant
with the Year  2000,  the  Bank  would  likely  experience  significant  delays,
mistakes,  or  failures.  These  delays,  mistakes,  or  failures  could  have a
significant  impact on the Bank's financial  condition and results of operation.
The  third  party  service  bureau  which  provides  most  of  the  Bank's  data
processing,  has advised the Bank that it expects to be fully  compliant  before
the Year 2000.  Testing of the data  processing  provided by this service bureau
was completed in February,  1999,  whereby various Year 2000 date scenarios were
input, and  transactional  processing was completed  satisfactorily.  Other data
processing providers, used by the Bank to a much lesser extent, have advised the
Bank that Year 2000 testing and compliance will be completed by June 30, 1999.

Contingency  Plan. The Bank is monitoring its service bureau to evaluate whether
the  bureau's  data  processing  system  will  fail and is being  provided  with
periodic updates on the status of testing and upgrades being made by the service
bureau.  If the Bank service  bureau  fails,  the Bank will attempt to locate an
alternative  service  bureau  that  is  Year  2000  compliant.  If the  Bank  is
unsuccessful,  the Bank will  calculate  loan and deposit  balances and interest
using manual ledgers. If this labor intensive approach is necessary,  management
and employees will become much less efficient.  However,  the Bank believes that
it would be able to  operate in this  manner  indefinitely,  until its  existing
service bureau, or their  replacement,  is able to again provide data processing
services.  If very few financial  institution  service bureaus were operating in
the Year 2000, the Bank's replacement  costs,  assuming the Bank could negotiate
an agreement, could be material.


                                      -14-

<PAGE>
SNODGRASS
Certified Public Accountants and Consultants

[LOGO]

                          Independent Auditor's Report
                          ----------------------------


Board of Directors
Sistersville Bancorp, Inc.

We have audited the  accompanying  consolidated  balance sheets of  Sistersville
Bancorp,  Inc.  as of March 31,  1999 and  1998,  and the  related  consolidated
statements of income,  changes in shareholders'  equity, and cash flows for each
of the years then ended.  These financial  statements are the  responsibility of
the Company's  management.  Our responsibility is to express an opinion on these
financial statements based on our audits.

We  conducted  our  audits  in  accordance  with  generally   accepted  auditing
standards.  Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement.  An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing the  accounting  principles  used and  significant  estimates  made by
management,  as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated  financial statements referred to above present
fairly,  in all  material  respects,  the  financial  position  of  Sistersville
Bancorp,  Inc. at March 31, 1999 and 1998, and the  consolidated  results of its
operations,  changes  in  shareholders'  equity,  and cash flows for each of the
years then ended, in conformity with generally accepted accounting principles.


/s/S.R. Snodgrass, A.C.

Wheeling, West Virginia
April 15, 1999

<TABLE>
<CAPTION>
<S>                                     <C>
S.R. Snodgrass, A.C.
980 National Road Wheeling WV 26003-6400 Phone:304-233-5030 Facsimile:304-233-3062
</TABLE>

                                      -15-
<PAGE>
                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
                                                                                             March 31,
                                                                                   1999                  1998
                                                                            --------------------     -------------------

                                     ASSETS

<S>                                                                          <C>                      <C>
Cash and Cash Equivalents
       Cash and amounts due from banks                                        $          29,823        $         97,009
       Interest - bearing deposits with other institutions                            1,843,976               1,469,028
                                                                            --------------------     -------------------
        Total cash and cash equivalents                                               1,873,799               1,566,037
                                                                            --------------------     -------------------

Investment Securities
       Securities held to maturity (fair value of $356,980
           and $536,365)                                                                350,815                 527,006
       Securities available for sale                                                  4,908,390               5,387,243
                                                                            --------------------     -------------------
         Total investment securities                                                  5,259,205               5,914,249
                                                                            --------------------     -------------------

Loans receivable, (net of allowance for loan losses
       of $172,250 and $168,850)                                                     24,319,941              23,646,924
Office properties and equipment, net                                                    487,735                 378,362
Accrued interest receivable (net of reserve                                             212,644                 202,166
       for uncollected interest of $-0- and $5,504)
Other assets                                                                             34,224                  27,244
                                                                            --------------------     -------------------

                                         TOTAL ASSETS                         $      32,187,548        $     31,734,982
                                                                            ====================     ===================


                      LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
       Deposits                                                               $      20,847,502        $     20,595,965
       Federal Home Loan Bank advance                                                 1,000,000                       -
       Deferred income taxes                                                            358,818                 354,210
       Accrued interest payable and other liabilities                                   189,656                 203,361
                                                                            --------------------     -------------------
                                          Total liabilities                          22,395,976              21,153,536
                                                                            --------------------     -------------------

STOCKHOLDERS' EQUITY
       Preferred Stock, $.10 par value;
       500,000 shares authorized, none issued                                                 -                       -
       Common Stock, $.10 par value;
       2,000,000 shares authorized; 661,428 issued;
       567,093 outstanding at March 31, 1999, and
       628,357 outstanding at March 31, 1998                                             66,143                  66,143
       Additional paid - in capital                                                   6,178,859               6,152,518
       Treasury Stock (94,335 shares at March 31, 1999;                              (1,326,770)               (529,136)
       33,071 shares at March 31, 1998)
       Retained Earnings - substantially restricted                                   4,890,911               4,686,573
       Accumulated other comprehensive income                                           685,720                 686,337
       Unearned Employee Stock Ownership Plan shares (ESOP)                            (419,074)               (480,989)
       Unearned Restricted Stock Plan shares (RSP)                                     (284,217)                      -
                                                                            --------------------     -------------------
                                         Total stockholders' equity                   9,791,572              10,581,446
                                                                            --------------------     -------------------

     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                               $      32,187,548        $     31,734,982
                                                                            ====================     ===================
</TABLE>

     The accompanying  notes are an integral part of the consolidated  financial
statements.

                                       -16-

<PAGE>

                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
                        CONSOLIDATED STATEMENTS OF INCOME

<TABLE>
<CAPTION>

                                                                   Year Ended March 31,
                                                                    1999         1998
                                                                 ----------  -----------
<S>                                                              <C>          <C>
INTEREST AND DIVIDEND INCOME
     Taxable interest on loans                                   $2,002,397   $1,929,638
     Taxable interest on investments                                339,653      398,476
     Dividends on Federal Home Loan Bank stock                       14,663       13,023
     Dividends on Federal Home Loan Mortgage Corporation stock        7,924        9,536
                                                                 ----------   ----------
           Total interest and dividend income                     2,364,637    2,350,673
                                                                 ----------   ----------

INTEREST EXPENSE
     Deposits                                                       864,295      986,282
     Federal Home Loan Bank advances                                 31,901         --
                                                                 ----------   ----------
           Total interest expense                                   896,196      986,282
                                                                 ----------   ----------

           NET INTEREST INCOME                                    1,468,441    1,364,391

PROVISION FOR LOAN LOSSES                                             3,400        6,224
                                                                 ----------   ----------

           NET INTEREST INCOME AFTER
           PROVISION FOR LOAN LOSSES                              1,465,041    1,358,167
                                                                 ----------   ----------

NONINTEREST INCOME
     Service charges                                                 31,908       23,629
     Gain on securities available for sale                          167,536         --
     Other income                                                     2,408        2,064
                                                                 ----------   ----------
           Total noninterest income                                 201,852       25,693
                                                                 ----------   ----------

NONINTEREST EXPENSE
     Compensation and employee benefits                             662,954      440,196
     Occupancy                                                       41,672       37,370
     Furniture and equipment expense                                 36,691       34,626
     Deposit insurance premiums                                      12,714       13,590
     Supervisory examination, audit and legal                        77,308       74,835
     Advertising  and public relations                               22,935       24,149
     Service bureau expense                                          63,879       63,416
     Franchise, payroll and other taxes                              66,337       57,704
     Other expenses                                                  70,008       54,868
                                                                 ----------   ----------
           Total noninterest expense                              1,054,498      800,754
                                                                 ----------   ----------

           INCOME BEFORE INCOME TAXES                               612,395      583,106

INCOME TAXES                                                        223,029      209,447
                                                                 ----------   ----------

           NET INCOME                                            $  389,366   $  373,659
                                                                 ==========   ==========

EARNINGS PER SHARE (SINCE JULY 1, 1997)
      Basic                                                      $     0.71   $     0.47
                                                                 ==========   ==========
      Diluted                                                    $     0.70   $     0.47
                                                                 ==========   ==========

AVERAGE SHARES OUTSTANDING
      Basic                                                         545,755      608,262
                                                                 ==========   ==========
      Diluted                                                       558,363      608,262
                                                                 ==========   ==========
</TABLE>

     The accompanying  notes are an integral part of the consolidated  financial
statements.

                                      -17-

<PAGE>

                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

<TABLE>
<CAPTION>

                                                                                                      Year Ended March 31,
                                                                                                  1999                   1998
                                                                                           ---------------        ------------------

<S>                                                                                          <C>                  <C>
NET INCOME                                                                                   $     389,366         $   373,659
                                                                                           ----------------       -------------

OTHER COMPREHENSIVE INCOME, NET OF TAX
       Unrealized gains on securities:
            Unrealized holding gains arising during the period                                     109,236             293,298
            Reclassification adjustment for gains included in net income                          (109,853)                  -
                                                                                           ----------------       -------------
                  Other comprehensive income (loss)                                                   (617)            293,298
                                                                                           ----------------       -------------

                  COMPREHENSIVE INCOME                                                       $     388,749         $   666,957
                                                                                           ================       =============
</TABLE>


     The accompanying  notes are an integral part of the consolidated  financial
statements.

                                      -18-


<PAGE>





                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
                 CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
<TABLE>
<CAPTION>
                                                                  Accumulated
                                                     Retained       Other                                               Total
                                        Additional   Earnings-      Compre-   Unearned      Unearned                    Share-
                  Preferred   Common     Paid In    Substantially   hensive   Shares in     Shares in     Treasury     holders'
                    Stock      Stock     Capital     Restricted     Income      ESOP           RSP          Stock      Equity
                  ---------  ---------- ------------ ----------    --------- -----------   -----------   ----------  ---------------
<S>               <C>          <C>      <C>          <C>           <C>       <C>           <C>           <C>           <C>
BALANCE,
  MARCH 31, 1997  $     --     $  --    $     --     $4,410,275    $393,039  $     --      $       --    $       --    $  4,803,314

1998 Net Income         --        --          --        373,659        --          --              --            --         373,659

Sale of Common
  Stock                 --      66,143   6,127,984         --          --      (529,140)           --            --       5,664,987

Accrued
  compensation
  expense - ESOP        --        --        24,534         --          --        48,151            --            --          72,685

Other
  comprehensive
  income,
  net of tax            --        --          --           --       293,298        --              --            --         293,298

Cash Dividends
  declared
  ($.16 per
  share)                --        --          --        (97,361)       --          --              --            --         (97,361)

Purchase of
  Treasury
  Stock                 --        --          --           --          --          --              --        (529,136)     (529,136)
                  --------     -------  ----------   ----------    --------  ----------    ------------  ------------  ------------

BALANCE,
  MARCH 31, 1998        --      66,143   6,152,518    4,686,573     686,337    (480,989)           --        (529,136)   10,581,446

1999 Net Income         --        --          --        389,366        --          --              --            --         389,366

Accrued
  compensation
  expense - ESOP        --        --        26,341         --          --        61,915            --            --          88,256

Purchase of RSP
  shares                --        --          --           --          --          --          (410,084)         --        (410,084)

Vesting of RSP
  shares                --        --          --           --          --          --           125,867          --         125,867

Other
  comprehensive
  income (loss),
  net of tax            --        --          --           --          (617)       --              --            --            (617)

Cash Dividends
  declared
  ($.33 per
  share)                --        --          --       (185,028)       --          --              --            --        (185,028)

Purchase of
  Treasury
  Stock                 --        --          --           --          --          --              --        (797,634)     (797,634)
                  --------     -------  ----------   ----------    --------  ----------    ------------  ------------  ------------

BALANCE,
  MARCH 31, 1999  $     --     $66,143  $6,178,859   $4,890,911    $685,720  $ (419,074)   $   (284,217) $ (1,326,770) $  9,791,572
                  ========     =======  ==========   ==========    ========  ==========    ============  ============  ============
</TABLE>




     The accompanying  notes are an integral part of the consolidated  financial
statements.

                                      -19-
<PAGE>


                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
                                                                          Year Ended March 31,
                                                                          1999           1998
                                                                      ------------     ------------

<S>                                                                   <C>            <C>
OPERATING ACTIVITIES
       Net income                                                      $   389,366    $   373,659
       Adjustments to reconcile net income to net cash
       provided by (used in) operating activities:
            Depreciation, amortization and accretion, net                   49,496         38,667
            Gain on sale of available for sale securities                 (167,536)          --
            Provision for loan losses                                        3,400          6,224
            Deferred federal income taxes                                    4,961        (20,483)
            ESOP amortization                                               88,256         72,685
            RSP amortization                                               125,867           --
            Decrease (increase) in accrued interest receivable
            and other assets                                               (17,458)        56,788
            Increase (decrease) in accrued interest payable
            and other liabilities                                          (13,705)       104,743
                                                                       -----------    -----------
                 Net cash provided by operating activities                 462,647        632,283
                                                                       -----------    -----------

INVESTING ACTIVITIES
       Purchase of available for sale securities                        (3,595,339)    (6,039,047)
       Proceeds from sale of available for sale securities                 171,053           --
       Proceeds from maturity of available for sale securities           4,067,447      3,425,000
       Purchase of mortgage-backed securities held to maturity                --         (251,516)
       Principal collected on mortgage - backed securities                 172,736         51,669
       Net increase in loans                                              (676,417)    (1,928,279)
       Purchases of office properties and equipment                       (153,156)       (53,261)
                                                                       -----------    -----------
                 Net cash used in investing activities                     (13,676)    (4,795,434)
                                                                       -----------    -----------

FINANCING ACTIVITIES
       Net increase (decrease) in deposits                                 251,537     (1,103,760)
       Federal Home Loan Bank advance                                    1,000,000           --
       Purchase of RSP shares                                             (410,084)          --
       Dividends Paid                                                     (185,028)       (97,362)
       Purchase of Treasury stock                                         (797,634)      (529,136)
       Proceeds from sale of common stock                                     --        5,664,987
                                                                       -----------    -----------
                 Net cash provided by (used in) financing activities      (141,209)     3,934,729
                                                                       -----------    -----------

                 (Increase) decrease in cash equivalents                   307,762       (228,422)

CASH AND CASH EQUIVALENTS,
    BEGINNING OF PERIOD                                                  1,566,037      1,794,459
                                                                       -----------    -----------

CASH AND CASH EQUIVALENTS,
    END OF PERIOD                                                      $ 1,873,799    $ 1,566,037
                                                                       ===========    ===========



SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION
       Cash paid during the period for:
            Interest on deposits                                       $   898,729    $   990,795
            Income taxes                                                   240,927        173,104
</TABLE>


     The accompanying  notes are an integral part of the consolidated  financial
statements.

                                      -20-


<PAGE>

                           SISTERSVILLE BANCORP, INC.
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                             MARCH 31, 1999 AND 1998


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

      Sistersville  Bancorp,  Inc. (the "Company") was organized in March, 1997,
      as a State of Delaware chartered corporation. The Company acquired 100% of
      the common  stock of First  Federal  Savings  Bank (the  "Bank")  upon the
      conversion of First Federal  Savings and Loan  Association of Sistersville
      (the "Association") from a federally-chartered  mutual savings and loan to
      a federally-  chartered  stock savings bank in June,  1997.  The operating
      results of the Company depend primarily upon the operating  results of the
      Bank.

      Nature of Operations - The Company provides savings and financing services
      primarily  to  individuals  through  its  wholly-owned  subsidiary,  First
      Federal  Savings  Bank located in  Sistersville,  West  Virginia.  Primary
      deposit  products  consist  of  savings,  NOW,  and Money  Market  deposit
      accounts, and certificates of deposit. Primary lending products consist of
      conventional  mortgage,  construction,  and  consumer  loans.  The  Bank's
      primary market area for lending and deposits consists of Wood,  Pleasants,
      Tyler, and Wetzel Counties in West Virginia.

      Principles  of  Consolidation  -  The  consolidated  financial  statements
      include the accounts of the Company and its wholly-owned subsidiary, First
      Federal Savings Bank. Material intercompany accounts and transactions have
      been eliminated.

      Use of Estimates - The  preparation of financial  statements in conformity
      with generally accepted accounting  principles requires management to make
      estimates and assumptions  that affect the reported  amounts of assets and
      liabilities,  disclosures of contingent assets and liabilities 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.

      Held to Maturity  Securities - These  securities  are  purchased  with the
      original  intent to hold to maturity  and events  which may be  reasonably
      anticipated  are  considered  when  determining  the Company's  intent and
      ability to hold to maturity.  Securities meeting such criteria at the date
      of purchase and as of the balance sheet date are carried at cost, adjusted
      for amortization of premiums and accretion of discounts.

      Available  for Sale  Securities  -  Securities  to be held for  indefinite
      periods of time and not intended to be held to maturity are  classified as
      available for sale and carried at market value with  unrealized  gains and
      losses, net of tax, reflected as a component of shareholders' equity until
      realized.   Securities  held  for  indefinite   periods  of  time  include
      securities  that may be sold to meet  liquidity  needs or in  response  to
      significant  changes in interest rates or prepayment  risks as part of the
      Company's overall asset/liability management strategy. Realized securities
      gains and losses are computed using the specific identification method.

      Interest  and Fees on Loans - Interest  on loans is  credited to income as
      earned and is accrued only if it is considered  collectible.  An allowance
      for  uncollected  interest on mortgage  loans is provided  for all accrued
      interest  on loans  which  are  delinquent  90 days or more  resulting  in
      interest previously accrued on those loans being reversed from income and,
      thereafter,  interest  is  recognized  only  to  the  extent  of  payments
      received.  Loans are  returned  to accrual  status  when less than 90 days
      delinquent and when, in management's judgment, collection is probable.



                                      -21-

<PAGE>


                           SISTERSVILLE BANCORP, INC.
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 1999 AND 1998


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

      The Company  adopted the  provisions of Statement of Financial  Accounting
      Standards Nos. 114 and 118,  "Accounting for Creditors for Impairment of a
      Loan." It is the  Company's  policy not to  recognize  interest  income on
      specific  impaired  loans unless the  likelihood of future loss is remote.
      Interest payments received on such loans are applied as a reduction of the
      loan principal balance.

      Since the adoption of SFAS Nos.114 and 118, the Company had no loans which
      management has determined to be impaired.

      Loan  origination and commitment fees and certain direct loan  origination
      costs are  deferred,  and the net amount  amortized  over the  contractual
      lives of the related loans or  commitments as an adjustment of the related
      loan's yield using the interest method.

      Allowance for Loan Losses - The allowance for loan losses is maintained at
      a level which,  in  management's  judgment,  is adequate to absorb  credit
      losses  inherent in the loan  portfolio.  The amount of the  allowance  is
      based  on  management's  evaluation  of the  collectibility  of  the  loan
      portfolio,  including the nature of the portfolio,  credit concentrations,
      trends  in  historical  loss  experience,  specific  impaired  loans,  and
      economic   conditions.   Allowances   for  impaired  loans  are  generally
      determined  based on  collateral  values or the present value of estimated
      cash flows.  The  allowance is  increased by a provision  for loan losses,
      which is charged to expense and reduced by charge-offs, net of recoveries.
      Changes  in the  allowance  relating  to  impaired  loans are  charged  or
      credited  to the  provision  for loan  losses.  Because  of  uncertainties
      inherent to the estimation process, management's estimate of credit losses
      inherent in the loan portfolio and the related allowance may change in the
      near term.

           Real Estate Acquired in Settlement of Loans - Real estate acquired in
      settlement of loans is classified  separately on the balance sheets at the
      lower of the recorded  investment  in the property or its fair value minus
      estimated costs of sale.

           Office  Properties  and Equipment - Premises and equipment are stated
      at cost, less  accumulated  depreciation.  Provisions for depreciation are
      computed on the  straight-line  method over the estimated  useful lives of
      the assets.

      When units of  property  are  disposed  of,  the  premises  and  equipment
      accounts are relieved of the cost and the accumulated depreciation related
      to such units.  Any  resulting  gains or losses are credited to or charged
      against  income.  Costs and repairs and maintenance are charged to expense
      as incurred. Major renewals and betterments are capitalized at cost.

      Income Taxes - Deferred tax assets and  liabilities are recognized for the
      future tax consequences  attributable to differences between the financial
      statement  carrying  amounts of existing  assets and liabilities and their
      respective  tax bases.  Deferred tax assets and  liabilities  are measured
      using enacted tax rates  expected to apply to taxable  income in the years
      in which those  temporary  differences  are  expected to be  recovered  or
      settled.


                                      -22-

<PAGE>


                           SISTERSVILLE BANCORP, INC.
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 1999 AND 1998


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

      Earnings Per Common Share - On June 25, 1997,  the Company  issued 661,428
      shares of common  stock.  Earnings  per share data for the 1998 period has
      been  determined by dividing net income since July 1, 1997, of $288,809 by
      the weighted  average  number of shares issued and  outstanding  since the
      original issued date.  Earnings from June 25, 1997, through June 30, 1997,
      were determined not to be meaningful. As discussed in Note 10, the Company
      accounts for the 52,914 shares  acquired by the Employee  Stock  Ownership
      Plan (the "ESOP") in accordance  with Statement of Position  93-6;  shares
      controlled by the ESOP are not  considered in the weighted  average shares
      outstanding  until the shares are  committed  for  allocation  to employee
      accounts.  The  proforma net income per share for the 1999 period is $.59,
      assuming the shares had been outstanding for the entire period.

      In  February,  1997,  the  Financial  Accounting  Standards  Board  issued
      Statement on Financial  Accounting Standards No. 128, "Earnings Per Share"
      ("SFAS No. 128").  SFAS No. 128 differs from prior accounting  guidance in
      that  earnings  per share is  classified  as basic  earnings per share and
      diluted  earnings  per share,  compared to primary  earnings per share and
      fully diluted earnings per share under prior standards. Basic earnings per
      share differs from primary earnings per share in that it includes only the
      weighted  average  common  shares  outstanding  and does not  include  any
      dilutive common stock equivalents in the calculation. Diluted earnings per
      share under the new standard differs in certain  calculations  compared to
      fully diluted earnings per share under prior standards.

      The  following  table  sets  forth the  computation  of basic and  diluted
      earnings  per share.  There were no  convertible  securities  which  would
      affect the numerator in calculating  basic and diluted earnings per share;
      therefore,  net income as  presented  on the  Consolidated  Statements  of
      Income for March 31, 1999, and net income, since inception,  July 1, 1997,
      of  $288,809  for  March  31,  1998,  will be used as the  numerator.  The
      following  tables set forth a  reconciliation  of the  denominator  of the
      basic and diluted earnings per share computation:

                                                               December 31,
                                                              1999      1998
                                                              ----      ----
Denominator:
     Denominator for basic earnings per share-weighted-
       average shares                                      545,755   608,262
     Employee stock options (antidilutive)                    --        --
     Unvested RSP shares                                    12,608      --
                                                           -------   -------

     Denominator for diluted earnings per share-adjusted
       weighted-average assumed conversions                558,363   608,262
                                                           =======   =======

      Reclassification  - Certain prior year amounts have been  reclassified  to
      conform with the current year's presentation.

      Cash Flows  Information - The Company's policy is to include cash on hand,
      amounts due from depository institutions,  and overnight deposits with the
      Federal Home Loan Bank in the definition of cash and cash equivalents.



                                      -23-

<PAGE>


                           SISTERSVILLE BANCORP, INC.
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 1999 AND 1998


NOTE 2 STOCKHOLDERS' EQUITY

      On June 25, 1997, the Company  completed the sale of 661,428 common shares
      at $10 per share and received net proceeds of $5,664,987.  Included in the
      661,428 shares were 52,914 shares acquired by the ESOP.

      On March 9, 1998, the Company completed the repurchase of 33,071 shares or
      5% of its outstanding  common stock in the open market pursuant to a stock
      repurchase  program.  During the fiscal  year ended  March 31,  1999,  the
      Company repurchased an additional 61,264 shares of its common stock.

      The following  table  represents  the change in the Company's  outstanding
      shares:

                                                      Preferred         Common
                                                        Stock           Stock
                                                        -----           -----

           Shares outstanding, March 31, 1997               -               -
              Shares issued                                 -           661,428
              Shares repurchased                            -           (33,071)
                                                     ---------     ------------

           Shares outstanding, March 31, 1998               -           628,357
              Shares repurchased                            -           (61,264)
                                                     ---------     ------------

           Shares outstanding, March 31, 1999               -           567,093
                                                     =========     ============


NOTE 3 - INVESTMENT SECURITIES

      The  carrying  amounts and fair  values of  investment  securities  are as
      follows at March 31, 1999 and 1998:

<TABLE>
<CAPTION>
                                                                             1999
                                                  -----------------------------------------------------------
                                                                      Gross          Gross         Estimated
                                                   Amortized      Unrealized      Unrealized         Market
                                                       Cost           Gains         Losses            Value
                                                       ----           -----         ------            -----
<S>                                               <C>             <C>             <C>            <C>
      Securities Available for Sale:
         Federal Home Loan Bank Stock
           (restricted)                           $     225,700   $      -        $       -      $   225,700
         Federal Home Loan Mortgage
          Corporation Stock                              18,714      1,082,615            -        1,101,329
         Municipal securities                           906,621            -          (20,861)       885,760
         U.S. Agency Obligations                      2,251,369          1,200        (15,510)     2,237,059
         Mortgage-Backed Securities-
           GNMA                                         458,542            -             -           458,542
                                                  -------------   ------------    ----------     -----------

                Total Available for Sale              3,860,946      1,083,815        (36,371)     4,908,390

      Securities to be Held to Maturity:
         Mortgage-Backed Securities-
          GNMA and FHLMC                                350,815          6,165                       356,980
                                                  -------------   ------------    ----------     -----------

                Total                             $   4,211,761   $  1,089,980    $   (36,371)   $ 5,265,370
                                                  =============   ============    ===========    ===========

</TABLE>



                                      -24-

<PAGE>


                           SISTERSVILLE BANCORP, INC.
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 1999 AND 1998


NOTE 3 - INVESTMENT SECURITIES (CONTINUED)
<TABLE>
<CAPTION>
                                                                             1998
                                                  ---------------------------------------------------------------
                                                                      Gross          Gross         Estimated
                                                   Amortized      Unrealized      Unrealized         Market
                                                       Cost           Gains         Losses            Value
                                                       ----           -----         ------            -----
<S>                                               <C>             <C>             <C>            <C>
      Securities Available for Sale:
         Federal Home Loan Bank Stock
           (restricted)                           $     203,300   $        -      $       -      $     203,300
         Federal Home Loan Mortgage
          Corporation Stock                              22,231         1,050,532         -          1,072,763
         U.S. Government and
           Agency Obligations                         4,113,299          1,355         (3,474)       4,111,180
                                                  -------------   ------------    -----------    -------------

                Total Available for Sale              4,338,830      1,051,887         (3,474)       5,387,243

      Securities to be Held to Maturity:
         Mortgage-Backed Securities-
          GNMA and FHLMC                                527,006          9,563           (204)         536,365
                                                  -------------   ------------    -----------    -------------

                Total                             $   4,865,836   $  1,061,450    $    (3,678)   $   5,923,608
                                                  =============   ============    ===========    =============

</TABLE>

      The amortized and estimated market value of investment securities at March
      31, 1999 and 1998, by contractual  maturity,  follow.  Expected maturities
      will differ from contractual maturities because issuers may have the right
      to  call  or  prepay  obligations  with  or  without  call  or  prepayment
      penalties.

<TABLE>
<CAPTION>

                                                                         March 31, 1999
                                                  ---------------------------------------------------------------
                                                           Securities                      Securities
                                                       Available for Sale               Held to Maturity
                                                  ------------------------------  ----------------------------
                                                                   Estimated                       Estimated
                                                    Amortized         Market      Amortized           Market
                                                       Cost           Value           Cost            Value
                                                       ----           -----           ----            -----

<S>                                               <C>             <C>             <C>            <C>
         Due in one year or less                  $     201,489   $    202,688    $     -        $       -
         Due after one year
           through five years                           849,478        837,327          -                -
         Due after five years
           through ten years                          1,000,402        997,042          -                -
         Due after ten years                          1,106,621      1,085,762          -                -
         Mortgage-backed securities                     458,542        458,542        350,815          356,980
         Equity securities                              244,414      1,327,029          -                -
                                                  -------------   ------------    -----------    -------------

                Total                             $   3,860,946   $  4,908,390    $   350,815    $     356,980
                                                  =============   ============    ===========    =============
</TABLE>



                                      -25-

<PAGE>


                           SISTERSVILLE BANCORP, INC.
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 1999 AND 1998


NOTE 3 - INVESTMENT SECURITIES (CONTINUED)

<TABLE>
<CAPTION>
                                                                        March 31, 1998
                                                  ------------------------------------------------------------
                                                           Securities                    Securities
                                                       Available for Sale             Held to Maturity
                                                  ------------------------------ -----------------------------
                                                                  Estimated                        Estimated
                                                    Amortized        Market           Amortized    Market
                                                       Cost           Value           Cost         Value
                                                       ----           -----           ----         -----

<S>                                               <C>             <C>             <C>            <C>
         Due in one year or less                  $   3,109,289   $  3,106,054    $      -       $       -
         Due after one year
           through five years                           204,010        205,126           -              -
         Due after five years
           through ten years                            800,000        800,000           -               -
         Mortgage-backed securities                         -              -          527,006          536,365
         Equity securities                              225,531      1,276,063           -               -
                                                  -------------   ------------    -----------    -------------

                Total                             $   4,338,830   $  5,387,243    $   527,006    $     536,365
                                                  =============   ============    ===========    =============

</TABLE>

      There were no transfers of securities  between  classifications in 1999 or
1998.


NOTE 4 - LOANS AND ALLOWANCE FOR POSSIBLE LOAN LOSSES

      Loans outstanding at March 31 are as follows:

                                                      1999              1998
                                                  ------------   ---------------
          Mortgage Loans:
             Construction                         $   119,000    $       701,350
             1-4 family                            23,681,466         22,593,575
          Consumer Loans:
             Automobiles                              699,069            698,752
             Savings account                           99,454            234,072
             Other                                     18,432             27,000
          Commercial                                  269,270             96,446
                                                  -----------    ---------------
                   Total                           24,886,691         24,351,195
          Less:
             Allowance for loan losses                172,250            168,850
             Undisbursed funds                        342,928            463,171
             Net deferred loan fees                    51,572             72,250
                                                  -----------    ---------------

                   Loans receivable, net          $24,319,941    $    23,646,924
                                                  ===========    ===============




                                      -26-

<PAGE>


                           SISTERSVILLE BANCORP, INC.
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 1999 AND 1998


NOTE 4 - LOANS AND ALLOWANCE FOR POSSIBLE LOAN LOSSES (CONTINUED)

      Activity  in the  allowance  for loan losses for the years ended March 31,
      1999 and 1998, is summarized as follows:

                                                        1999       1998
                                                      --------    --------

          Balance, beginning of year                  $168,850    $164,150
          Add provisions charged to operations           3,400       6,224
                                                      --------    --------
                                                       172,250     170,374
          Less loans charged off                           -         1,524
                                                      --------    --------

          Balance, end of period                      $172,250    $168,850
                                                      ========    ========


      In the normal  course of business,  loans are  extended to  directors  and
      executive  officers and their  associates.  In management's  opinion,  all
      loans are on substantially the same terms and conditions as loans to other
      individuals  and  businesses of comparable  creditworthiness.  Total loans
      outstanding  to officers and  directors  at March 31, 1999 and 1998,  were
      $28,633 and $56,142, respectively.


NOTE 5 - OFFICE PROPERTIES AND EQUIPMENT

      Properties and equipment at March 31 are summarized as follows:

                                                        1999       1998
                                                      --------    --------

          Land                                        $ 38,500    $ 38,500
          Office buildings and improvements            543,300     422,648
          Furniture, fixtures, and equipment           242,192     209,688
                                                      --------    --------
                   Total                               823,992     670,836
          Less accumulated depreciation                336,257     292,474
                                                      --------    --------

                   Premises and equipment, net        $487,735    $378,362
                                                      ========    ========


      Depreciation charged to operations amounted to $43,783 and $38,438 for the
      years ended March 31, 1999 and 1998, respectively.




                                      -27-

<PAGE>


                           SISTERSVILLE BANCORP, INC.
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 1999 AND 1998


NOTE 6 - DEPOSITS ANALYSIS

      Deposit accounts at March 31 are summarized as follows:
<TABLE>
<CAPTION>
                                                                      1999                          1998
                                                      ---------------------------   -------------------------------
                                                                        Percent of                      Percent of
                                                           Amount        Portfolio      Amount          Portfolio
                                                           ------        ---------      ------          ---------

<S>                                                   <C>                 <C>      <C>                  <C>
          Savings accounts                            $    8,426,081        40.4%   $    8,194,602        39.8%
          NOW accounts                                     1,326,967         6.4%        1,338,296         6.5%
          Money market accounts                            1,136,401         5.4%        1,189,391         5.8%
                                                      --------------   ----------   --------------   ----------
                                                          10,889,449        52.2%       10,722,289        52.1%
                                                      --------------   ----------   --------------   ----------

          Certificates of deposit:
             4.01 - 6.00%                                  8,997,052        43.2%        8,332,910        40.4%
             6.01 - 8.00%                                    961,001         4.6%        1,540,766         7.5%
                                                      --------------   ----------   --------------   ----------
                                                           9,958,053        47.8%        9,873,676        47.9%
                                                      --------------   ----------   --------------   ----------

                   Total                              $   20,847,502       100.0%   $   20,595,965       100.0%
                                                      ==============   ==========   ==============   ==========
</TABLE>


      The scheduled maturities of certificates of deposit at March 31, 1999, are
as follows:

                                                                  Amount
                                                                  ------

          Within one year                                      $   5,480,937
          Due after one year, but within two years                 1,855,861
          Due after two years, but within three years              1,370,470
          Due after three years                                    1,250,785
                                                               -------------

                   Total                                       $   9,958,053
                                                               =============


      Certificates  of  deposit  issued in  denominations  of  $100,000  or more
      amounted to $566,403 at March 31,  1999,  and  $410,729 at March 31, 1998.
      Deposits in excess of $100,000 are not federally insured.

      Interest expense by deposit category is as follows:

                                                Year Ended March 31,
                                                 1999              1998
                                                 ----              ----

          Savings - passbook                $      295,396    $     358,125
          NOW and money market                      63,497           87,930
          Time certificates of deposit             505,402          540,227
                                            --------------    -------------

                   Total                    $      864,295    $     986,282
                                            ==============    =============



                                      -28-

<PAGE>


                           SISTERSVILLE BANCORP, INC.
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 1999 AND 1998


NOTE 7 - REGULATORY MATTERS

      The Subsidiary Bank is subject to various regulatory capital  requirements
      administered  by its  primary  federal  regulator,  the  Office  of Thrift
      Supervision.  Failure to meet the minimum regulatory capital  requirements
      can initiate  certain  mandatory,  and possible  additional  discretionary
      actions by regulators,  that if undertaken,  could have a direct  material
      affect on the Bank's financial  statements.  Under the regulatory  capital
      adequacy  guidelines  and the regulatory  framework for prompt  corrective
      action,  the  Bank  must  meet  specific  capital   guidelines   involving
      quantitative  measures  of the Bank's  assets,  liabilities,  and  certain
      off-balance-sheet   items  as  calculated  under   regulatory   accounting
      practices.  The Bank's capital amounts and classification under the prompt
      corrective action guidelines are also subject to qualitative  judgement by
      the regulators about components, risk weighting, and other factors.

      Quantitative measures established by regulation to ensure capital adequacy
      require the Bank to maintain  minimum amounts and ratios (set forth in the
      table  below) of total and Tier I capital (as defined in the  regulations)
      to risk-weighted assets (as defined), and of tangible and core capital (as
      defined) to adjusted assets (as defined). Management believes, as of March
      31, 1999, that the Bank meets all capital  adequacy  requirements to which
      they are subject.

      As of March 31,  1999,  the most  recent  notification  from the Office of
      Thrift  Supervision  categorized the Bank as "well  capitalized" under the
      regulatory  framework for prompt  corrective  action. To be categorized as
      "well capitalized", the Bank must maintain minimum total risk- based, Tier
      I (core) risk-based,  core, and tangible ratios as set forth in the table.
      There are no conditions or events since the  notification  that management
      believes have changed the institution's category.

      The following table reconciles capital under generally accepted accounting
      principles to regulatory capital:

                                                              March 31,
                                                          1999        1998
                                                          ----        ----
                                                          (In Thousands)

          Total equity                                  $ 8,894     $ 8,518

          Accumulated other comprehensive income           (688)       (687)
                                                        --------    --------

                   Tier I (core) and tangible capital     8,206       7,831

          Allowance for loan losses                         172         169
                                                        -------     -------

                   Risk-based capital                   $ 8,378     $ 8,000
                                                        =======     =======




                                      -29-

<PAGE>


                           SISTERSVILLE BANCORP, INC.
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 1999 AND 1998


NOTE 7 - REGULATORY MATTERS (CONTINUED)

      At March  31,  the  actual  capital  levels  of the  Bank and the  minimum
required levels are as follows:

<TABLE>
<CAPTION>
                                                                            1999                      1998
                                                               ----------------------    ----------------------
                                                               Amount         Ratio      Amount         Ratio
                                                               ------         -----      ------         -----
                                                                   (In Thousands)             (In Thousands)
<S>                                                            <C>           <C>       <C>             <C>
          Total Capital to Risk-Weighted Assets
             Actual                                            $   8,378       54.12%    $   8,000       55.65%
             For capital adequacy purposes                         1,238        8.00%        1,150        8.00%
             To be "well capitalized"                              1,548       10.00%        1,438       10.00%

          Tier I (Core) Capital to Risk-Weighted Assets
             Actual                                            $   8,206       53.01%    $   7,831       54.47%
             For capital adequacy purposes                           619        4.00%          575        4.00%
             To be "well capitalized"                                929        6.00%          863        6.00%

          Tier I (Core) Capital to Adjusted Assets
             Actual                                            $   8,206       26.83%    $   7,831       26.84%
             For capital adequacy purposes                           917        3.00%          875        3.00%
             To be "well capitalized"                              1,529        5.00%        1,459        5.00%

          Tangible Capital to Adjusted Assets
             Actual                                            $   8,206       26.83%    $   7,831       26.84%
             For capital adequacy purposes                           459        1.50%          438        1.50%
             To be "well capitalized"                                N/A          N/A        N/A        N/A
</TABLE>


NOTE 8 - INCOME TAX

      Until  1996,  thrift  institutions  were  permitted  a  special  bad debts
      deduction  limited generally to 8% of otherwise taxable income and subject
      to  certain  limitations  based on  aggregate  loans and  savings  account
      balances at the end of the year.  On August 20, 1996,  the Small  Business
      Job Protection Act (the "Act") was signed into law. The Act eliminated the
      percentage of taxable  income bad debt  deduction for thrift  institutions
      and requires that bad debts for federal  income tax purposes be determined
      based primarily on the experience  method.  The Act provides that bad debt
      reserves accumulated after 1987 are subject to recapture over a maximum of
      six years.  The Act provides that bad debt reserves  accumulated  prior to
      1988 be exempt from  recapture.  If the amounts that qualify as deductions
      for federal income tax purposes are later used for purposes other than for
      bad debt  losses,  they will be subject to federal  income tax at the then
      corporate  rate.  Retained  income,  at March 31, 1999 and 1998,  included
      approximately  $618,000 (pre 1988  reserves) for which federal  income tax
      has not been provided.


                                      -30-

<PAGE>


                           SISTERSVILLE BANCORP, INC.
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 1999 AND 1998


NOTE 8 - INCOME TAX (CONTINUED)

      The provisions for Federal income taxes consist of:
<TABLE>
<CAPTION>

                                                                                 Year Ended March 31,
                                                                                1999               1998
                                                                                ----               ----
<S>                                                                         <C>               <C>
          Current                                                           $    218,068      $    229,930

          Deferred                                                                  4,961          (20,483)
                                                                            -------------     ------------

                   Total                                                    $     223,029     $    209,447
                                                                            =============     ============
</TABLE>


      The following temporary  differences gave rise to the deferred tax (asset)
liability at:

<TABLE>
<CAPTION>
                                                                                          March 31,
                                                                                 1999              1998
                                                                                 ----              ----

<S>                                                                        <C>               <C>
          Deferred loan fees                                                $    (17,534)     $    (24,565)
          Other income and expense recognized in the financial
            statements on the accrual basis, but on the cash basis
            for tax purposes                                                      29,081            13,464
          Bad debt reserve, net                                                  (22,865)          (24,143)
          RSP amortization                                                       (18,424)              -
          Depreciation                                                            16,595            19,761
          Others                                                                   3,876             7,398
                                                                            ------------      ------------
                                                                                  (9,271)           (8,085)
          Unrealized gains on available-for-sale securities                      368,089           362,295
                                                                            ------------      ------------

               Net deferred tax liability                                   $    358,818      $    354,210
                                                                            ============      ============

</TABLE>

      A reconciliation between the amount of reported income tax expense and the
      amount  computed  by applying  the  statutory  federal  income tax rate to
      income before income taxes is as follows:

<TABLE>
<CAPTION>
                                                                                 Year Ended March 31,
                                                                                1999               1998
                                                                                ----               ----

<S>                                                                        <C>               <C>
      Tax at statutory rate (34%)                                           $     208,214     $    198,256
          Increase (decrease) in taxes resulting from:
             Nondeductible ESOP compensation                                        8,956            8,342
             Other, net                                                             5,859            2,849
                                                                            -------------     ------------

                   Total                                                    $     223,029     $    209,447
                                                                            =============     ============

                   Effective rate                                                   36.4%            35.9%
                                                                            =============     ============

</TABLE>



                                      -31-

<PAGE>


                           SISTERSVILLE BANCORP, INC.
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 1999 AND 1998


NOTE 9 - RETIREMENT PLAN

      The  Bank  participates  in  the  multi-employer   Financial  Institutions
      Retirement Fund covering all full-time  officers and employees  completing
      one  year of  service  and  attainment  of age 21.  Because  the plan is a
      multi-employer  plan,  plan  information  for the Bank  separately  is not
      determinable.  Pension expense,  including administrative charges, for the
      years ended March 31, 1999 and 1998, was $1,800 and $600, respectively.


NOTE 10 - EMPLOYEE STOCK OWNERSHIP PLAN ("ESOP")

      During the year ended  March 31,  1998,  the Bank  adopted an ESOP for the
      benefit  of  officers  and  employees  who  have met  certain  eligibility
      requirements  related  to age and  length of  service.  An ESOP  trust was
      created  and  acquired  52,914  shares  of common  stock in the  Company's
      initial  public  offering,  using  proceeds  of a loan  obtained  from the
      Company,  which bears interest at an annual rate of 8.25%. The loan, which
      is secured by shares of stock purchased, calls for quarterly interest over
      a ten-year period and annual principal payments of $52,914.

      The Bank is  scheduled  to make  quarterly  contributions  to the trust to
      allow  the  trust to make the  required  interest  payments  and an annual
      contribution  to allow the trust to make the required  principal  payment.
      Shares are released from  collateral  based upon the  proportion of annual
      principal  payments  made on the loan each year and allocated to qualified
      employees. As shares are committed to be released from collateral based on
      the terms of the loan,  the Bank reports  compensation  expense based upon
      the fair  value of the  shares,  and the  shares  become  outstanding  for
      earnings per share  computations.  Dividends paid on allocated ESOP shares
      are  recorded  as a  reduction  of retained  earnings.  Dividends  paid on
      unallocated  shares are  recorded as  compensation  expense.  Compensation
      expense  for the ESOP for the years  ended  March 31,  1999 and 1998,  was
      $81,171 and $74,771, respectively.

      The following table  represents the components of the ESOP shares at March
31:

                                                      1999            1998
                                                    ----------     -------------

          Allocated shares                                 -            -
          Shares committed for allocation               11,007           4,815
          Shares distributed                               -            -
          Unallocated (noncommitted) shares             41,907          48,099
                                                    ----------     -----------

                   Total ESOP shares                    52,914          52,914
                                                    ==========     ===========

          Fair value of noncommitted shares         $  518,599     $   751,547
                                                    ==========     ===========




                                      -32-

<PAGE>


                           SISTERSVILLE BANCORP, INC.
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 1999 AND 1998


NOTE 11 - RESTRICTED STOCK PLAN (RSP)

      The Board of Directors  adopted a RSP for directors  and certain  officers
      and employees  which was approved by  stockholders  at the annual  meeting
      held on July 16, 1998.  The objective of this RSP is to enable the Bank to
      retain its corporate officers,  key employees,  and directors who have the
      experience and the ability necessary to manage these entities.  Directors,
      officers,   and  key   employees  who  are  selected  by  members  of  the
      Board-appointed  committee are eligible to receive benefits under the RSP.
      Non-employee directors of the Bank serve as trustees for the RSP, and have
      the  responsibility  to invest  all funds  contributed  by the Bank to the
      Trust created for the RSP.

      In August, 1998, the Trust purchased,  with funds contributed by the Bank,
      shares  of the  common  stock of  which  23,185  shares  were  awarded  to
      directors and employees,  and 3,272 shares remained unawarded.  Directors,
      officers, and employees who terminate their employment with the Bank shall
      forfeit the right to any shares which were awarded but not earned,  except
      in the event of death, disability,  retirement,  or a change in control of
      the Bank or Company.  The Bank granted a total of 23,185  shares of common
      stock on July 16, 1998, of which 4,637 became immediately vested under the
      plan.  Remaining shares become earned and non-forfeitable over a four-year
      period on each  anniversary date of the award beginning July 16, 1999. The
      RSP shares  purchased in the  conversion  initially  will be excluded from
      stockholders'  equity. The Company recognizes  compensation expense in the
      amount of fair value of the common stock at the grant date, pro rata, over
      the years  during  which the shares are earned and recorded as an addition
      to stockholders'  equity. Net compensation expense attributable to the RSP
      amounted to $125,866 for the year ended March 31, 1999.


NOTE 12 - STOCK OPTION PLAN

      The Board of  Directors  adopted a Stock  Option  Plan for the  directors,
      officers,  and employees  which was approved by stockholders at the annual
      meeting held on July 16, 1998. An aggregate of 66,142 shares of authorized
      but unissued  common stock of the Company was reserved for issuance  under
      the Stock  Option Plan.  The Company  granted  options to purchase  58,000
      shares of common stock. The options are first exercisable over a five-year
      period  beginning  July  16,  1998.  The  stock  options   typically  have
      expiration  terms of ten years.  The per share  exercise  price of a stock
      option  shall  be,  at a  minimum,  equal to the fair  value of a share of
      common stock on the date the option is granted. Proceeds from the exercise
      of the stock  options are credited to common stock for the  aggregate  par
      value and the excess is credited to additional paid-in capital.

      The Company adopted Statement of Financial  Accounting  Standards No. 123,
      "Accounting for Stock-Based Compensation".  This statement encourages, but
      does not  require the Company to  recognize  compensation  expense for all
      awards of equity  instruments  issued.  The  statement  established a fair
      value based method of accounting for stock-based  compensation  plans. The
      standard  applies to all transactions in which an entity acquires goods or
      services by issuing  equity  instruments  or by incurring  liabilities  in
      amounts  based on the price of the  entity's  common stock or other equity
      instruments.  Statement  No. 123 permits  companies to continue to account
      for  such   transactions   under  Accounting   Principles  Board  No.  25,
      "Accounting for Stock Issued to Employees," but requires disclosure of pro
      forma net income and  earnings per share as if the Company had applied the
      new method.

                                      -33-

<PAGE>


                           SISTERSVILLE BANCORP, INC.
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 1999 AND 1998


NOTE 12 - STOCK OPTION PLAN (CONTINUED)

      Under Accounting  Principles Board Opinion 25, no compensation expense has
      been recognized with respect to the options granted under the stock option
      plans. Had compensation expense been determined on the basis of fair value
      pursuant to  Statement  No. 123,  net income and  earnings per share would
      have been reduced as follows:

                                                               March 31,
                                                                 1999
                                                                 ----
          Net income:
                As reported                                $       389,366
                Pro forma                                  $       313,464

          Basic earnings per share:
                As reported                                $           .71
                Pro forma                                  $           .57

          Diluted earnings per share:
                As reported                                $           .70
                Pro forma                                  $           .56

      The following table presents share data related to the Stock Option Plan:

                                                            Shares Under Option
                                                            -------------------
                                                              1999      1998
                                                              ----      ----

          Outstanding, beginning of year                        -         -
          Granted during the period                          58,000       -
          Cancelled during the period                           -         -
          Exercised during the period                           -         -
                                                            -------    ------

                Outstanding, end of period (option price of
                  $15.8125 per share)                        58,000       -
                                                            =======    ======


NOTE 13 - COMMITMENTS AND CONTINGENCIES

      The   Subsidiary   Bank  is  a  party  to   financial   instruments   with
      off-balance-sheet  risk in the  normal  course  of  business  to meet  the
      financing  needs of its customers.  These  financial  instruments  include
      commitments  to extend  credit.  These  instruments  involve,  to  varying
      degrees, elements of credit risk in excess of the amount recognized in the
      consolidated  balance sheets.  The contract  amounts of these  instruments
      reflect  the  extent of  involvement  the  institution  has in  particular
      classes of financial instruments.


                                      -34-

<PAGE>


                           SISTERSVILLE BANCORP, INC.
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 1999 AND 1998


NOTE 13 - COMMITMENTS AND CONTINGENCIES (CONTINUED)

      The Company's  exposure to credit loss in the event of  nonperformance  by
      the other party to the  financial  instrument  for  commitments  to extend
      credit is represented by the contractual amount of those instruments.  The
      Company  uses  the  same  credit   policies  in  making   commitments  and
      conditional obligations as it does for on-balance-sheet instruments.

      The following  represents  financial  instruments  whose contract  amounts
      represent credit risk at March 31:
                                                          Contract Amount
                                                --------------------------------
                                                       1999            1998
                                                -------------    ---------------
          Commitments to originate loans:
              Fixed rate                        $     467,000    $     891,000
          Loans in process                            343,000          463,000
          Unused lines of credit                          -            170,000
                                                -------------    -------------

                Total                           $     810,000    $   1,524,000
                                                =============    =============

      The  range of  interest  rates on fixed  rate  residential  mortgage  loan
      commitments was 6.99% to 7.25% at March 31, 1999.

      Commitments  to extend credit are agreements to lend to a customer as long
      as there is no violation of any  condition  established  in the  contract.
      Commitments  generally have fixed  expiration  dates or other  termination
      clauses and may require  payment of a fee.  Since many of the  commitments
      are  expected to expire  without  being drawn upon,  the total  commitment
      amounts do not necessarily represent future cash requirements. The Company
      evaluates each customer's  creditworthiness  on a case-by-case  basis. The
      amount of  collateral  obtained,  if deemed  necessary by the Company upon
      extension of credit,  is based on  management's  credit  evaluation of the
      counter  party.   Collateral  held  consists  primarily  of  single-family
      residences.

      Concentration of Credit Risk
      ----------------------------

      The Subsidiary Bank's real estate loans and loan commitments are primarily
      for properties  located  throughout  Northern West Virginia.  Repayment of
      these loans is in part  dependent  upon the  economic  conditions  in this
      region. These loans are primarily at fixed interest rates.


NOTE 14 - FAIR VALUE OF FINANCIAL INSTRUMENTS

      The following  methods and assumptions were used in estimating fair values
      of financial instruments as disclosed herein:

          Cash and Cash  Equivalents:  For  those  short-term  instruments,  the
          carrying amount is a reasonable estimate of fair value.



                                      -35-

<PAGE>


                           SISTERSVILLE BANCORP, INC.
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 1999 AND 1998


NOTE 14 - FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED)

          Investment   Securities  and  Securities   Held  for  Sale:  For  debt
          securities  and  marketable  equity  securities  held  for  investment
          purposes and for sale,  fair values are based on quoted  market prices
          or dealer  quotes.  If a quoted  market price is not  available,  fair
          value is estimated using quoted market prices for similar securities.

          Loans:  For  certain  homogeneous  categories  of loans,  such as some
          residential mortgages, fair value is estimated using the quoted market
          prices for securities backed by similar loans. The fair value of other
          types of loans is estimated by discounting the future cash flows using
          the current  rates at which  similar  loans would be made to borrowers
          with similar credit ratings and for the same remaining maturities.

          Deposit  Liabilities:  The fair  value  of  demand  deposits,  savings
          accounts,  and certain money market  deposits is the amount payable on
          demand  at the  reporting  date.  The  fair  value  of  fixed-maturity
          certificates of deposit is estimated using the rates currently offered
          for deposits of similar remaining maturities.

      The estimated fair values of the Company's  financial  instruments  are as
follows:

<TABLE>
<CAPTION>
                                                       March 31, 1999                   March 31, 1998
                                             -------------------------------   ------------------------------
                                                  Carrying        Estimated         Carrying       Estimated
                                                  Amount          Fair Value        Amount         Fair Value
                                                  ------          ----------        ------         ----------

<S>                                         <C>               <C>             <C>              <C>
         Financial Assets:
            Cash and cash equivalents        $   1,874,000     $   1,874,000   $    1,566,000   $   1,566,000
            Securities available for sale        4,908,000         4,908,000        5,387,000       5,387,000
            Securities held to maturity            351,000           357,000          527,000         536,000
            Loans, net                          24,320,000        24,902,000       23,647,000      24,240,000

         Financial Liabilities:
            Deposits                            20,848,000        20,956,000       20,596,000      20,663,000

</TABLE>

NOTE 15 - CONVERSION AND REORGANIZATION

      On December 5, 1996, the Board of Directors of the Association adopted the
      Plan of Conversion  pursuant to which the Association  proposed to convert
      from   a    federally-chartered    mutual    savings   and   loan   to   a
      federally-chartered  stock  savings bank and  concurrently  form a unitary
      savings and loan holding company.

      As part of the  conversion  process,  the Company was  organized in March,
      1997,  at the direction of the Board of Directors of the  Association  for
      the purpose of acquiring all of the capital stock to be issued by the Bank
      in the  Conversion.  After  approval  by  regulatory  authorities  and the
      Association's  members, the conversion was completed on June 25, 1997. The
      Company  became a unitary  savings  and loan  company  with its  principal
      assets  being  the  capital  stock  of the Bank  and a  percentage  of the
      Conversion  proceeds permitted to be retained.  From the proceeds from the
      sale of 661,428 shares of stock at $10.00 per share, $66,143 was allocated
      to common  stock  based on a par  value of $.10 per share and  $6,127,984,
      which is net of conversion costs of $420,153,  was allocated to additional
      paid-in capital.


                                      -36-

<PAGE>


                           SISTERSVILLE BANCORP, INC.
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 1999 AND 1998


NOTE 15 - CONVERSION AND REORGANIZATION (CONTINUED)

      In accordance with regulations, at the time that the Association converted
      from a mutual  savings  and loan to a stock  savings  bank,  a portion  of
      retained  earnings  will  be  restricted  by  establishing  a  liquidation
      account.  The  liquidation  account will be maintained  for the benefit of
      eligible  account  holders who continue to maintain  their accounts at the
      Bank  after  the  conversion.  The  liquidation  account  will be  reduced
      annually to the extent that  eligible  account  holders have reduced their
      qualifying  deposits.  Subsequent  increases  will not restore an eligible
      account holder's  interest in the liquidation  account.  In the event of a
      complete  liquidation of the Bank, each account holder will be entitled to
      receive  a  distribution  from  the  liquidation   account  in  an  amount
      proportionate  to the current  adjusted  qualifying  balances for accounts
      then held.


NOTE 16 - ADVANCES FROM FEDERAL HOME LOAN BANK

      As of March 31, 1999, the Bank had outstanding an advance from the Federal
      Home Loan Bank (FHLB) of Pittsburgh of  $1,000,000.  Various assets with a
      total  collateral  value  of  $20,600,000  were  pledged  to the  FHLB  as
      collateral  at March  31,  1999.  The  advance  is a 5.15%  fixed-interest
      obligation with an optional  change to a variable  interest rate at August
      21, 1999. The advance matures on August 31, 2008, while interest  payments
      are payable monthly on the outstanding principal balance.


NOTE 17 - DIRECTOR RETIREMENT AGREEMENT

      Effective May 7, 1998, the Company and Subsidiary Bank offered  individual
      retirement  agreements with current  directors of the Company and the Bank
      having completed a minimum of fifteen years of service. Under the terms of
      the  agreement,  retiring  directors  receive $1,200 for each year of past
      service  as a board  member of the Bank or  Association  and the  Company.
      Retirement  benefits were payable either in quarterly  installments over a
      five-year period commencing  September 17, 1998, or in a lump sum with the
      total benefit discounted at an annual rate of five percent (5%). Directors
      executing  the  retirement   agreement   discontinued  serving  as  active
      directors to the Company and Bank on July 2, 1998.

      At May 16, 1998, four directors executed retirement  agreements.  Based on
      the past service of those directors  involved,  the Company took a pre-tax
      charge of $94,000 in the first fiscal quarter of the year ending March 31,
      1999, representing the present value of benefit payments.



                                      -37-

<PAGE>


                           SISTERSVILLE BANCORP, INC.
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 1999 AND 1998


NOTE 18 - COMPREHENSIVE INCOME

      In June, 1997, the Financial  Accounting  Standards Board issued Statement
      of  Financial  Accounting  Standards  No.  130,  "Reporting  Comprehensive
      Income." This statement establishes standards for reporting and display of
      comprehensive  income  in a full  set of  financial  statements.  The Bank
      adopted this statement on April 1, 1998, and has reclassified  information
      in the 1998 financial  statements to reflect application of the provisions
      of this statement. Unrealized gains and losses on securities available for
      sale are the only  components  of other  comprehensive  income (loss) that
      apply to the Bank.

                                                       1999         1998
                                                   ----------- -------------

         Before-tax amount                         $    (968)  $    452,900
         Tax effect                                      351       (159,602)
                                                   ---------   ------------

               Net-of-tax amount                   $    (617)  $    293,298
                                                   =========   ============


NOTE 20 - CONDENSED PARENT COMPANY FINANCIAL STATEMENTS

      Effective June 25, 1997, active operations of Sistersville  Bancorp,  Inc.
      were  initiated  with  the  approval  of  the  stock   conversion  of  the
      Association   and   correspondent   purchase  of  all  the  stock  of  the
      wholly-owned  Subsidiary  Bank by the Company,  which  coincided  with the
      initial  public  offering of the Company  stock.  The condensed  financial
      statements of Sistersville Bancorp, Inc.
      are as follows:

                                  BALANCE SHEET
                                 MARCH 31, 1999

ASSETS
      Deposits with Subsidiary Bank                               $      265,016
      Investment in Subsidiary Bank                                    8,364,584
      Investment securities available for sale                           849,158
      Loan receivable from ESOP                                          529,140
      Receivable from Subsidiary                                          71,190
      Other assets                                                        27,536
                                                                  --------------

                 TOTAL ASSETS                                     $   10,106,624
                                                                  ==============

LIABILITIES AND SHAREHOLDERS' EQUITY
      Payable from subsidiary                                     $      284,217
      Other liabilities                                                   30,835
      Shareholders' equity                                             9,791,572
                                                                  --------------

                 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY       $   10,106,624
                                                                  ==============


                                      -38-

<PAGE>


                           SISTERSVILLE BANCORP, INC.
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 1999 AND 1998

NOTE 20 - CONDENSED PARENT COMPANY FINANCIAL STATEMENTS (CONTINUED)


                               STATEMENT OF INCOME
                            YEAR ENDED MARCH 31, 1999

INCOME
      Interest                                                      $    91,113

OPERATING EXPENSES                                                       65,382
                                                                    -----------
                 Income before income tax and equity
                   in undistributed income of Subsidiary                 25,731

INCOME TAX                                                              (12,600)

EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARY                            376,235
                                                                    -----------

                 NET INCOME                                         $   389,366
                                                                    ===========



                             STATEMENT OF CASH FLOWS
                            YEAR ENDED MARCH 31, 1999

OPERATING ACTIVITIES
      Net income                                                    $   389,366
      Adjustments to reconcile net income to net cash
        provided by operating activities:
         Undistributed earnings of Subsidiary                          (376,235)
         Investment amortization/accretion, net                           2,098
         ESOP amortization                                               88,256
         RSP amortization                                               125,867
         Increase in other assets                                         8,575
         Increase in other liabilities                                  284,776
                                                                    -----------
                 Net cash provided by operating activities              522,703
                                                                    -----------

INVESTING ACTIVITIES
      Investment purchases                                             (852,500)
      Investment maturities                                           1,460,000
                                                                    -----------
                 Net cash provided by investing activities              607,500
                                                                    -----------

FINANCING ACTIVITIES
      Purchase of RSP shares                                           (410,084)
      Purchase of treasury stock                                       (797,634)
      Dividends paid                                                   (185,028)
                                                                    -----------
                 Net cash used in financing activities               (1,392,746)
                                                                    -----------

                 DECREASE IN CASH AND CASH EQUIVALENTS                 (262,543)

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR                            527,559
                                                                    -----------

CASH AND CASH EQUIVALENTS, END OF YEAR                              $   265,016
                                                                    ===========


SUPPLEMENTAL DISCLOSURES
      Income tax payments                                           $    23,103
      Interest paid                                                        --


                                      -39-


<PAGE>



            SISTERSVILLE BANCORP, INC. AND FIRST FEDERAL SAVINGS BANK

CORPORATE OFFICE                                         INDEPENDENT AUDITORS
----------------                                         --------------------
726 Wells Street                                         S. R. Snodgrass, A.C.
Sistersville, WV 26175                                   980 National Road
(304) 652-3671                                           Wheeling, WV 26003


SPECIAL COUNSEL
---------------
Malizia Spidi and Fisch, P.C.
One Franklin Square
1301 K Street, N.W., Suite 700 East
Washington, D.C. 20005


TRANSFER AGENT
--------------
American Stock Transfer & Trust Company
40 Wall Street
New York, NY 10005


SISTERSVILLE BANCORP, INC. AND FIRST FEDERAL SAVINGS BANK
---------------------------------------------------------
BOARD OF DIRECTORS
------------------

Lester C. Doak, Chairman                                 Ellen E. Thistle
David W. Miller                                          Charles P. LaRue
Gary L. Ward                                             Stanley M. Kiser


SISTERSVILLE BANCORP, INC. OFFICERS
-----------------------------------

Stanley M. Kiser, President
Cynthia R. Carson, Vice-President & Corporate Secretary
Shelley R. Maxwell, Treasurer


FIRST FEDERAL SAVINGS BANK OFFICERS
-----------------------------------

Stanley M. Kiser, President & CEO
Cynthia R. Carson, Vice-President & Corporate Secretary
Barbara Vincent, Vice-President - Savings
Shelley R. Maxwell, Treasurer
P. Jane Fuchs, Cashier


Sistersville  Bancorp,  Inc.'s  Annual Report on Form 10-KSB for the fiscal year
ended March 31, 1999, as filed with the Securities and Exchange  Commission,  is
available without charge to shareholders  upon written request.  The 1999 Annual
Meeting  of  Stockholders  will be held on July 14,  1999,  at 9:00 a.m.  at the
offices of First Federal  Savings Bank,  726 Wells  Street,  Sistersville,  West
Virginia.

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