[LOGO] Sistersville
                              ===================
                                 Bancorp, Inc.
                                      2002
                                 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")
2002 Annual Report.  It has been a very positive growth year for the Company and
its subsidiary,  First Federal Savings Bank (the "Bank").  Loans,  deposits, and
total assets all experienced  double digit growth rates for the year. The Bank's
Parkersburg  office,  which has been open less than two years,  has  contributed
significantly to this growth.

The Company  completed a five percent (5%) stock  repurchase  last April.  Since
becoming a public  company  less than five years ago,  200,805  shares have been
purchased  by the  Company in the open  market.  This has  reduced the number of
outstanding  shares  by  more  than  thirty  percent  (30%),  and  significantly
increased  the book  value of your  shares.  Your  board of  directors  recently
(April)  announced  plans to purchase an  additional  five  percent  (5%) of the
Company's outstanding shares, subject to the availability of stock.

It saddens me to report the loss of our Chairman,  Mr. Lester Doak, who lost his
battle with cancer last fall. Mr. Doak served as Chairman of the Company's board
since its inception,  and was a member of the Bank's board for over thirty- five
years.

As I look forward to the  challenges of the upcoming year, I commend the efforts
and dedication 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.  First  Federal  Savings  Bank (the  "Bank") is a  wholly-owned
subsidiary  of the  Company.  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.

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 Federal  Home
Loan Bank of Pittsburgh  ("FHLB"),  which is one of the 12 regional banks in the
FHLB system.  Unless  otherwise  stated,  the term "Company"  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 is traded under the symbol "SVBC".  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 the fiscal  years  ended  March 31,  2002 and 2001.
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, 2002:

                  April 1, 2001 - June 30, 2001           $14.10      $13.44
                  July 1, 2001 - September 30, 2001        15.10       13.85
                  October 1, 2001 - December 31, 2001      15.75       14.82
                  January 1, 2002 - March 31, 2002         19.25       15.30

         Fiscal year ended March 31, 2001:

                  April 1, 2000 - June 30, 2000           $11.50      $ 9.50
                  July 1, 2000 - September 30, 2000        11.50       11.25
                  October 1, 2000 - December 31, 2000      13.50       11.06
                  January 1, 2001 - March 31, 2001         14.00       12.19


                                      -2-
<PAGE>

SVBC  declared  a  semi-annual  dividend  of $.20 per  share  in June,  2001 and
December,  2001. The number of  shareholders of record of common stock as of the
record date of May 24, 2002,  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 24, 2002,  there were 460,623 shares of common
stock  outstanding.  The Company's  ability to pay dividends to  stockholders is
primarily  dependent  upon income  earned on  investments  and 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 the Company at the dates
and for the periods indicated.


Selected financial condition and other data:

                                              At March 31,
                                        ------------------------
                                          2002             2001
                                        -------          -------
                                         (Dollars in thousands)

Total assets                            $40,881          $33,747
Loans receivable, net                    30,265           26,996
Mortgage-backed securities                  688              379
Investments (1)                           7,537            3,930
Cash - noninterest bearing                  303              282
Savings deposits                         31,344           24,039
Stockholders' equity (2)                  9,077            9,135

Number of full-service offices                2                2


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

(2)  Includes  accumulated other comprehensive  income, net of applicable income
     taxes


Summary of Operations

                                                          Year Ended March 31,
                                                          -------------------
                                                             2002      2001
                                                           -------   -------
                                                         (Dollars in thousands)

Interest and dividend income                               $ 2,541   $ 2,323
Interest expense                                             1,123     1,029
                                                           -------   -------
     Net interest income                                     1,418     1,294
                                                           -------   -------
Provision for loan losses                                        2         2
                                                           -------   -------
     Net interest income after provision for loan losses     1,416     1,292
                                                           -------   -------

Non-interest income:
  Service charges                                               54        41
  Gain on sale of available-for-sale securities                 62         -
  Other income                                                   2         3
                                                           -------   -------
     Total other income                                        118        44
                                                           -------   -------

Non-interest expense:
  Compensation and employee benefits                           653       573
  Occupancy and equipment                                      142       135
  Deposit insurance premiums                                     5         4
  Other general and administrative                             383       319
                                                           -------   -------
    Total non-interest expense                               1,183     1,031
                                                           -------   -------

    Income before income taxes                                 351       305

Provision for federal income taxes                              78        77
                                                           -------   -------

     Net income                                            $   273   $   228
                                                           =======   =======

                                       -4-

<PAGE>

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

<TABLE>
<CAPTION>
                                                                   For the Year Ended
                                                                         March 31,
                                                                   --------   --------
                                                                     2002       2001
                                                                   --------   --------
                                                                 (Dollars in thousands)
<S>                                                             <C>        <C>
Capital Ratios:
Average equity to average assets ratio
 (average equity divided by average total assets)                   24.23%     28.47%
Equity to assets at period end                                      22.20%     27.07%


Performance Ratios:
Return on average equity (net income
 divided by average equity)                                          3.02%      2.43%
Return on average assets (net income
 divided by average total assets)                                    0.73%      0.69%
Net interest rate spread                                             3.10%      3.07%
Net yield on average interest earning assets                         4.04%      4.20%
Average interest earning assets to
 average interest-bearing liabilities                              129.45%    133.76%
Net interest income after provision for possible
  loan losses, to total other expenses                             119.70%    125.19%
Non-interest expense to average assets                               3.18%      3.13%
Efficiency Ratio (1)                                                77.11%     77.21%


Asset Quality Ratios:
Non-performing loans to total assets                                 0.15%      0.00%
Non-performing loans to total loans                                  0.20%      0.00%
Allowance for loan losses to total loans                             0.59%      0.65%
Allowance for loan losses to total non-performing loans            296.67%       N/A
Allowance for loan losses to total non-performing assets (2)       296.67%       N/A

</TABLE>




--------------------------------------------------------------------------------
(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's results from operations  consist primarily of interest income from
the investing of funds from proceeds  generated by the sale of common stock, net
of accounting and legal expense incurred relating to public filings.  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>

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 except as noted
in item (7).  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,
                              ---------------------------------------------------------------------   ---------------------
                                           2002                                2001                           2002
                              --------------------------------    ---------------------------------   ---------------------
                               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)         $29,037     $2,334      8.04%       $26,091     $2,078       7.96%     $30,265        7.41%
  Investment securities (2)(6)   5,722        186      3.25%         4,234        213       5.03%       7,786        2.87%
  Mortgage-backed securities       331         21      6.34%           471         32       6.79%         688        7.28%
                               -------     ------    ------        -------     ------     ------      -------      ------
     Total interest-earning
       assets                   35,090      2,541      7.24%        30,796      2,323       7.54%      38,739        6.50%
                                           ------    ------                    ------     ------                   ------
Non-interest-earning assets      2,163                               2,171                              2,142
                               -------                             -------                            -------
     Total assets              $37,253                             $32,967                            $40,881
                               =======                             =======                            =======
Interest-bearing liabilities:
  Regular savings deposits     $ 9,061        292      3.22%       $ 8,252        288       3.49%     $12,032        3.00%
  Now accounts                   1,326         28      2.11%         1,382         34       2.46%       1,516        1.31%
  Money market demand            2,280         74      3.25%         1,329         48       3.61%       2,212        2.33%
  Time deposits                 13,752        694      5.05%        11,265        613       5.44%      15,029        3.49%
                               -------     ------    ------        -------     ------     ------      -------      ------
     Subtotal deposits          26,419      1,088      4.12%        22,228        983       4.42%      30,789        3.11%

  Short-term borrowings (7)        688         35      5.09%           796         46       5.78%           -        0.00%
                               -------     ------    ------        -------     ------     ------      -------      ------
     Total interest-bearing
       liabilities              27,107      1,123      4.14%        23,024      1,029       4.47%      30,789        3.11%
                                           ------    ------                    ------     ------                   ------
Noninterest-bearing
  liabilities                    1,119                                 557                              1,015
                              --------                             -------                            -------
     Total Liabilities          28,226                              23,581                             31,804


Retained Earnings (3)            9,027                               9,386                              9,077
                              --------                             -------                            -------
     Total liabilities and
      retained earnings       $ 37,253                             $32,967                            $40,881
                              ========                             =======                            =======
Net interest income                        $1,418                              $1,294
                                           ======                              ======
Interest rate spread(4)                                3.10%                                3.07%                    3.39%
                                                     ======                               ======                   ======
Net yield on interest-earning
  assets(5)                                            4.04%                                4.20%                    3.66%
                                                     ======                               ======                   ======
Ratio of average interest-earning
  assets to average interest-bearing liabilities     129.45%                              133.76%                  125.83%
                                                     ======                               ======                   ======
</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 at March 31, 2002 is
     calculated on the tax equivalent yield.
(7)  Average balance is daily average balance.


                                      -7-
<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,
                                                        2002   vs. 2001
                                            ------------------------------------
                                                                 Rate/
                                              Volume     Rate   Volume      Net
                                              ------     ----   ------      ---
                                                        (In thousands)
Interest-earning assets:
  Loans receivable                             $ 235    $  21    $   2    $ 258
  Investment securities                           75      (75)     (26)     (26)
  Mortgage-backed securities                     (10)      (2)       1      (11)
                                               -----    -----    -----    -----
      Total interest-earning assets              300      (56)     (23)     221
                                               -----    -----    -----    -----

Interest-bearing liabilities:
  Savings deposits                               185      (67)     (13)     105
  Short-term borrowings                           (6)      (5)       1      (10)
                                               -----    -----    -----    -----
      Total interest-bearing liabilities         179      (72)     (12)      95
                                               -----    -----    -----    -----

      Net change in net interest income        $ 121    $  16    $ (11)   $ 126
                                               =====    =====    =====    =====


                                      -8-


<PAGE>

Comparison of Financial Condition

The  Company's  total  assets  increased  by   approximately   $7.1  million  to
$40,881,000 at March 31, 2002, from $33,747,000 at March 31, 2001. Cash and cash
equivalents  increased  $3.7  million  to  $4,834,000  at March 31,  2002,  from
$1,125,000  at March 31, 2001.  This increase  represented  net cash provided by
operating  activities,  depositors'  investment  of  funds,  proceeds  from  the
maturity or call of  available-for-sale  securities,  and principal collected on
mortgage-backed  securities,  offset by the outflow of cash  associated with the
increase  in  loan   production,   payment  of   dividends,   and   purchase  of
available-for-sale  securities  and shares for Treasury.  Investment  securities
increased $227,000 from $3,466,000 at March 31, 2001, to $3,693,000 at March 31,
2002.  This increase was the result of the purchase of $1,019,000 in U.S. Agency
and  mortgage-backed  securities,  offset by  $450,000 in matured or called U.S.
Agency  securities  and  $200,000  in  principal  collected  on  mortgage-backed
securities.  Net loans  receivable  increased  $3.3 million from  $26,996,000 at
March 31, 2001,  to  $30,265,000  at March 31,  2002.  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  decreased $76,000 from $1,658,000 at March 31, 2001, to $1,582,000 at
March 31, 2002,  which was the direct result of depreciation  charges during the
fiscal year ended March 31, 2002.

Total liabilities  increased $7.2 million from $24,612,000 at March 31, 2001, to
$31,804,000 at March 31, 2002. The increase was  attributable  to a $7.3 million
increase in deposits from $24,039,000 at March 31, 2001, to $31,344,000 at March
31, 2002, which is the direct result of deposit growth at the Parkersburg branch
office,  opened in May, 2000 and the relatively stable interest rates offered by
the Bank on deposit  accounts as compared to  alternative  investment  products.
Deferred  income tax  liability  decreased  from  $419,000 at March 31, 2001, to
$326,000  at March  31,  2001,  which was the  result  of the tax  effect on the
decrease  in the fair  value of  available-for-sale  securities  during the year
ended March 31, 2002.

Stockholders' equity decreased $58,000 to $9,077,000 at March 31, 2002, compared
to $9,135,000 at March 31, 2001. The decrease was  attributable  to the purchase
of Treasury shares in the amount of $211,000, payment of dividends in the amount
of $171,000,  and the  decrease of $86,000 in  accumulated  other  comprehensive
income,  offset by net income of $273,000,  allocation  of shares in the ESOP in
the  amount of  $79,000,  and the  vesting of shares in the RSP in the amount of
$57,000.

                                      -9-

<PAGE>

Comparison of the Results of  Operations  for the Years Ended March 31, 2002 and
2001

Net  Income.  Net income  increased  by  $45,000,  or 20.2%,  from net income of
$228,000  for the year ended March 31,  2001,  to net income of $273,000 for the
year ended March 31, 2002.

Interest and Dividend Income.  Interest and dividend income increased  $218,000,
or 9.4%, to $2,541,000 for the year ended March 31, 2002, compared to $2,323,000
for the year ended March 31, 2001. The increase in interest and dividend  income
was the  result of the  $255,000  increase  in  taxable  interest  on loans from
$2,061,000 as of March 31, 2001,  to $2,316,000 as of March 31, 2002,  which was
due to an increase in the average  balance of loans of $2.9 million,  from $26.1
million  for the year ended  March 31,  2001,  to $29.0  million as of March 31,
2002.  This increase was offset by the $38,000  decrease in taxable  interest on
investments  from  $174,000  as of March 31,  2001,  to $136,000 as of March 31,
2002, which was the result of a decrease in the average yield of 1.78% offset by
the  increase in the average  balance of  investments  of $1.5 million from $4.2
million for the year ended March 31,  2001,  to $5.7  million for the year ended
March 31, 2002.

Interest Expense.  Interest expense increased $93,000,  or 9.1%, from $1,030,000
for the year ended March 31, 2001,  to  $1,123,000  for the year ended March 31,
2002. An increase in the average  balance of  interest-bearing  deposits of $4.1
million  to $26.4  million  from  $22.3  million,  offset by the 30 basis  point
decrease in the cost of funds from 4.42% for the year ended March 31,  2001,  to
4.12% for the year ended March 31,  2002,  resulted in the  increase in interest
expense on deposits of $104,000,  or 10.6%. Interest expense on the Federal Home
Loan Bank ("FHLB") advance decreased $11,000, or 23.2%, from $46,000 as of March
31, 2001,  to $35,000 as of March 31,  2002.  The decrease was the result of the
decrease  in the average  balance of the FHLB  advance in the amount of $112,000
and the decrease in the average cost of the FHLB advance of 69 basis points from
5.78% at March 31, 2001, to 5.09% at March 31, 2002

Net Interest  Income.  Net interest  income  increased  $124,000,  or 9.6%, from
$1,294,000  for the year ended March 31, 2001, to $1,418,000  for the year ended
March 31,  2002.  The  increase is  primarily  attributable  to the  increase in
interest and dividend  income  offset by the  increase in interest  expense,  as
previously discussed.

Provision For Loan Losses. The provision for loan losses increased $1,000,  from
$1,000 for the year ended March 31, 2001, to $2,000 for the year ended March 31,
2002, based on management's analysis of the reserve's adequacy.  The reserve for
loan losses was $176,000 at March 31, 2001, as compared to $178,000 at March 31,
2002.

Noninterest  Income.  Noninterest income increased by $74,000,  from $44,000 for
the year ended March 31,  2001,  to $118,000  for the year ended March 31, 2002.
The increase is primarily attributable to the gain on sale of available-for-sale
securities in the amount of $62,000 for the year ended March 31, 2002, which did
not occur during the year ended March 31, 2001.

                                      -10-

<PAGE>

Noninterest Expense.  Noninterest expense increased by $151,000,  or 14.6%, from
$1,032,000  for the year ended March 31, 2001, to $1,183,000  for the year ended
March 31, 2002.  Compensation  and employee  benefits  increased by $80,000,  or
13.9%, from $573,000 for the year ended March 31, 2001, to $653,000 for the year
ended March 31, 2002.  Compensation expense increased $21,000 as a result of the
increase  in ESOP  compensation  costs  and  $39,000  as a direct  result  of an
increase  in  compensation  costs  associated  with  the  RSP.  ESOP  costs  are
recognized  monthly at the fair value of Company  stock.  The  increase  in ESOP
costs is the result of an increase in the fair value of Company stock during the
year ended March 31, 2002.  The  increase in RSP costs was the direct  result of
participants  electing to defer vesting of RSP shares as of July 1, 2000 through
July 1, 2001. Service bureau expense increased  $27,000,  or 31.1%, from $89,000
for the year ended  March 31,  2001,  to  $116,000  for the year ended March 31,
2002,  due to an  increase in customer  loan and  deposit  accounts  and related
service  bureau's   charges  on  a  per  customer  account  basis.   Supervisory
examination,  audit, and legal expense increased  $14,000,  or 26.6%, to $67,000
for the year ended  March 31,  2002,  from  $53,000 for the year ended March 31,
2001, due to an increase in professional services for compliance with regulatory
requirements.  Other expenses increased $15,000,  or 17.4%, from $88,000 for the
year ended March 31, 2001, to $103,000 for the year ended March 31, 2002, due to
a $13,000  penalty  charged  by the FHLB for the  principal  prepayment  of a $1
million advance before maturity.

Income Taxes. Income tax expense increased by $600, or .8%, from $77,000 for the
year ended March 31, 2001, to $77,600 for the year ended March 31, 2002.


Liquidity and Capital Resources

The Bank's  sources of funds are deposits,  amortization  and repayment 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 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, 2002,
totaled  $368,000,  an increase of $6,000 from $362,000 for the year ended March
31, 2001. Net cash provided by operating  activities was primarily  attributable
to net  income of  $273,000  for the year  ended  March 31,  2002,  adjusted  by
depreciation, amortization, and accretion in the amount of $85,000, amortization
of the ESOP and RSP in the amount of $79,000 and $57,000,  respectively,  offset
by the change in accrued interest payable and other liabilities in the amount of
$20,000, gain on sale of available-for-sale securities in the amount of $62,000,
and change in deferred federal income tax liability of $40,000,

Net cash used in investing activities for the year ended March 31, 2002, totaled
$3,582,000, an increase of $2,839,000 from $743,000 for the year ended March 31,
2001. Net cash used in investing  activities was  attributable  to $3,271,000 in
net loan  originations  and $1,019,000  used in purchases of  available-for-sale
securities,  offset by $650,000  provided by the maturity or call of investments
and principal collected on mortgage-backed securities.

                                      -11-
<PAGE>

Net cash  provided by  financing  activities  for the year ended March 31, 2002,
totaled $6,923,000,  as compared to net cash provided by financing activities of
$1,117,000  for the year ended March 31,  2001.  Net cash  provided by financing
activities  was  attributable  to the net  increase in customer  deposits in the
amount of $7,306,000, offset by the purchase of Treasury shares in the amount of
$211,000 and payment of dividends in the amount of $171,000.

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,
2002,  total  $9,670,000.  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,  2002.  See  Note 7 of the  Notes  to  Consolidated
Financial Statements.


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  accounting
principles generally accepted in the United States of America, 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

The  Financial  Accounting  Standards  Board (the  "FASB")  issued SFAS No. 140,
"Accounting for Transfers and Servicing of Financial Assets and  Extinguishments
of  Liabilities."  SFAS No. 140 replaces  SFAS No. 125 and revises the standards
for accounting for  securitizations  and other transfers of financial assets and
collateral and requires  certain  disclosures,  but it carries over most of SFAS
No.  125's  provisions  without  reconsideration.  Under SFAS No.  140,  after a
transfer  of  financial  assets,  an entity must  recognize  the  financial  and
servicing  assets  it  controls  and  the  liabilities  it  has  incurred,   and
derecognize financial assets when control has been surrendered,  and derecognize
liabilities  when  extinguished.  A transfer  of  financial  assets in which the
transferor  surrenders  control over those assets is accounted  for as a sale to
the extent that consideration other than beneficial interests in the transferred
assets is received in

                                      -12-

<PAGE>

exchange.  This statement is generally  effective for activity  occurring  after
March 31, 2001.  Earlier or  retroactive  application  of this  statement is not
permitted.  The  adoption of SFAS No. 140 did not have a material  impact on the
Company.

The FASB issued SFAS No. 141,  "Business  Combinations."  SFAS No. 141 addresses
financial accounting and reporting for business  combinations and supersedes APB
Opinion No. 16, "Business  Combinations," and FASB Statement No. 38, "Accounting
for Pre-acquisition  Contingencies of Purchased  Enterprises," but it does carry
forward some guidance from those  statements.  This statement  requires that all
business  combinations be accounted for by the purchase method and that acquired
intangible  assets be  recognized as assets apart from goodwill if they meet one
of  two  criteria.   The  statement  also  sets  forth   additional   disclosure
requirements  as a result of a  business  combination.  The  provisions  of this
statement apply to all business combinations initiated after June 30, 2001. This
statement  also applies to all  business  combinations  accounted  for using the
purchase method for which the date of acquisition is July 1, 2001, or later. The
adoption of SFAS No. 141 did not have a material impact on the Company.

The FASB issued SFAS No. 142,  "Goodwill  and Other  Intangible  Assets,"  which
addresses  financial  accounting  and reporting for acquired  goodwill and other
intangible assets and supersedes APB Opinion No. 17, "Intangible Assets," but it
does carry forward some guidance from that  statement.  This statement  requires
that an intangible asset that is acquired either individually or with a group of
other  assets  (but not  those  acquired  in a  business  combination)  shall be
initially  recognized and measured based on its fair value.  Under SFAS No. 142,
goodwill  is not  amortized,  intangible  assets  with a finite  useful life are
amortized,  and those intangible assets with an infinite life are not amortized.
This statement is generally  effective for fiscal years beginning after December
15, 2001, to all goodwill and other intangible  assets recognized in an entity's
statement of financial position at the beginning of that fiscal year, regardless
of when those  previously  recognized  assets  were  initially  recognized.  The
provisions of this  statement  shall be initially  applied at the beginning of a
fiscal year;  retroactive  application  is not  permitted.  Management  does not
believe the adoption of SFAS No. 142 will have a material impact on the Company.

The FASB  recently  issued  SFAS  No.  143,  "Accounting  for  Asset  Retirement
Obligations," which addresses financial accounting and reporting for obligations
associated with the retirement of tangible  long-lived assets and the associated
asset retirement costs. This statement  requires an entity to recognize the fair
value of a liability for an asset  retirement  obligation in the period in which
it is  incurred  if a  reasonable  estimate  of fair  value  can be  made.  This
statement  is  effective  for  financial  statements  issued  for  fiscal  years
beginning  after June 15, 2002.  Initial  application of this statement is as of
the  beginning  of an  entity's  fiscal  year.  Management  does not believe the
adoption of SFAS No. 143 will have a material impact on the Company.

                                      -13-
<PAGE>

SNODGRASS
Certified Public Accountants and Consultants




                          Independent Auditor's Report


Board of Directors
Sistersville Bancorp, Inc.

We have audited the  accompanying  consolidated  balance sheets of  Sistersville
Bancorp,  Inc.  and  Subsidiary  as of March 31, 2002 and 2001,  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 auditing standards generally accepted
in the  United  States of  America.  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. and Subsidiary at March 31, 2002 and 2001,  and the  consolidated
results of its  operations  and cash flows for each of the years then ended,  in
conformity with accounting principles generally accepted in the United States of
America.

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


Wheeling, West Virginia
April 12, 2002


                                      -14-

<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>

<PAGE>

                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                               March 31,
                                                                         2002            2001
                                                                     ------------    ------------
<S>                                                                <C>             <C>
                                     ASSETS

Cash and Cash Equivalents
      Cash and amounts due from banks                                $    302,562    $    281,797
      Interest - bearing deposits with other institutions               4,531,561         843,259
                                                                     ------------    ------------
           Total cash and cash equivalents                              4,834,123       1,125,056
                                                                     ------------    ------------

Investment Securities
      Securities held-to-maturity (fair value of $107,001
        and $176,924, respectively)                                       103,894         173,527
      Securities available-for-sale                                     3,589,205       3,292,498
                                                                     ------------    ------------
           Total investment securities                                  3,693,099       3,466,025
                                                                     ------------    ------------

Loans receivable, (net of allowance for loan losses
  of $178,100 and $176,000, respectively)                              30,264,877      26,996,408
Office properties and equipment, net                                    1,581,909       1,658,292
Accrued interest receivable (net of reserve
  for uncollected interest of $1,314 and $-0-, respectively)              215,253         197,518
                                                                     ------------    ------------
Other assets                                                              291,768         303,657
                                                                     ------------    ------------

           TOTAL ASSETS                                              $ 40,881,029    $ 33,746,956
                                                                     ============    ============


                      LIABILITIES AND STOCKHOLDERS' EQUITY

                                  LIABILITIES

Deposits                                                             $ 31,344,131    $ 24,038,581
Deferred income taxes                                                     326,474         419,201
Accrued interest payable and other liabilities                            133,648         154,115
                                                                     ------------    ------------
           Total liabilities                                           31,804,253      24,611,897
                                                                     ------------    ------------

                                              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;
    460,623 outstanding at March 31, 2002, and
    476,166 outstanding at March 31, 2001                                  66,143          66,143
Additional paid - in capital                                            6,213,295       6,187,187
Treasury Stock (200,805 shares at March 31, 2002;                      (2,644,227)     (2,433,425)
         185,262 shares at March 31, 2001)
Retained Earnings - substantially restricted                            5,128,824       5,026,672
Accumulated other comprehensive income                                    711,074         796,659
Unearned Employee Stock Ownership Plan shares (ESOP)                     (260,866)       (313,780)
Unearned Restricted Stock Plan shares (RSP)                              (137,467)       (194,397)
                                                                     ------------    ------------
           Total stockholders' equity                                   9,076,776       9,135,059
                                                                     ------------    ------------

           TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                $ 40,881,029    $ 33,746,956
                                                                     ============    ============
</TABLE>

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

                                      -15-

<PAGE>

                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
                        CONSOLIDATED STATEMENTS OF INCOME

<TABLE>
<CAPTION>
                                                                   Year Ended March 31,
                                                                    2002         2001
                                                                 ----------   ----------
<S>                                                            <C>          <C>
INTEREST AND DIVIDEND INCOME
     Taxable interest on loans                                   $2,316,317   $2,061,359
     Taxable interest on investments                                135,638      173,811
     Nontaxable interest on loans                                    17,671       16,556
     Nontaxable interest on investments                              41,047       41,097
     Dividends on Federal Home Loan Bank stock                       14,795       17,393
     Dividends on Federal Home Loan Mortgage Corporation stock       15,403       13,166
                                                                 ----------   ----------
           Total interest and dividend income                     2,540,871    2,323,382
                                                                 ----------   ----------

INTEREST EXPENSE
     Deposits                                                     1,088,008      983,887
     Federal Home Loan Bank advances                                 35,070       45,662
                                                                 ----------   ----------
           Total interest expense                                 1,123,078    1,029,549
                                                                 ----------   ----------

           NET INTEREST INCOME                                    1,417,793    1,293,833

PROVISION FOR LOAN LOSSES                                             2,100        1,450
                                                                 ----------   ----------

           NET INTEREST INCOME AFTER
             PROVISION FOR LOAN LOSSES                            1,415,693    1,292,383
                                                                 ----------   ----------

NONINTEREST INCOME
     Service charges                                                 54,431       40,707
     Other income                                                     1,574        3,371
     Gain on sale of available-for-sale securities                   62,130         --
                                                                 ----------   ----------
           Total noninterest income                                 118,135       44,078
                                                                 ----------   ----------

NONINTEREST EXPENSE
     Compensation and employee benefits                             652,937      573,203
     Occupancy                                                       80,199       82,711
     Furniture and equipment expense                                 61,997       51,513
     Deposit insurance premiums                                       4,631        4,359
     Supervisory examination, audit and legal                        66,800       52,755
     Advertising  and public relations                               37,150       28,199
     Service bureau expense                                         116,420       88,795
     Franchise, payroll and other taxes                              59,574       62,613
     Other expenses                                                 102,992       87,711
                                                                 ----------   ----------
           Total noninterest expense                              1,182,700    1,031,859
                                                                 ----------   ----------

           INCOME BEFORE INCOME TAXES                               351,128      304,602

INCOME TAXES                                                         77,646       77,050
                                                                 ----------   ----------

           NET INCOME                                            $  273,482   $  227,552
                                                                 ==========   ==========

EARNINGS PER SHARE
     Basic                                                       $     0.65   $     0.48
                                                                 ==========   ==========
     Diluted                                                     $     0.64   $     0.47
                                                                 ==========   ==========

AVERAGE SHARES OUTSTANDING
     Basic                                                          420,792      473,408
                                                                 ==========   ==========
     Diluted                                                        429,540      482,982
                                                                 ==========   ==========
</TABLE>

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

                                      -16-

<PAGE>

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


                                                          Year Ended March 31,
                                                            2002         2001
                                                         ---------    ---------

NET INCOME                                               $ 273,482    $ 227,552
                                                         ---------    ---------

OTHER COMPREHENSIVE GAIN (LOSS), NET OF TAX
      Unrealized gain (loss) on  securities:
           Unrealized holding gain (loss)                 (126,591)     376,309
           Reclassification adjustment for loss (gain)
             included in net income                        (41,006)           -
                                                         ---------    ---------
                  Other comprehensive gain (loss)          (85,585)     376,309
                                                         ---------    ---------

                  COMPREHENSIVE INCOME                   $ 187,897    $ 603,861
                                                         =========    =========



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

                                      -17-

<PAGE>

                                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
                                 CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
                                                                    Accumulated
                                                      Retained        Other
                                        Additional    Earnings-       Compre-     Unearned     Unearned                 Total
                   Preferred   Common     Paid In    Substantially    hensive     Shares in    Shares in    Treasury   Stockholders'
                     Stock     Stock      Capital     Restricted      Income        ESOP         RSP         Stock      Equity
                   ---------  -------   -----------   -----------    ----------  ----------- ------------ -----------  -----------
<S>               <C>        <C>       <C>           <C>            <C>         <C>         <C>          <C>          <C>
BALANCE,
  MARCH 31, 2000   $      -   $66,143   $ 6,182,238   $ 4,983,212    $420,350    $(366,694)  $  (212,365) $(1,649,297) $ 9,423,587

2001 net income           -         -             -       227,552           -            -             -            -      227,552

Accrued
  compensation
  expense - ESOP          -         -         4,949             -           -       52,914             -            -       57,863

Vesting of
  RSP shares              -         -             -             -           -            -        17,968            -       17,968

Other
  comprehensive
  income (loss),
  net of tax              -         -             -             -     376,309            -             -            -      376,309

Cash dividends
  declared ($.38
  per share)              -         -             -      (184,092)          -            -             -            -     (184,092)

Purchase of
  Treasury Stock          -         -             -             -           -            -             -     (784,128)    (784,128)
                   --------   -------   -----------   -----------    --------    ---------   -----------  -----------  -----------

BALANCE,
  MARCH 31, 2001          -    66,143     6,187,187     5,026,672     796,659     (313,780)     (194,397)  (2,433,425)   9,135,059

2002 net income           -         -             -       273,482           -            -             -            -      273,482

Accrued
  compensation
  expense - ESOP          -         -        26,108             -           -       52,914             -            -       79,022

Vesting of
  RSP shares              -         -             -             -           -            -        56,930            -       56,930

Other
  comprehensive
  income (loss),
  net of tax              -         -             -             -     (85,585)           -             -            -      (85,585)

Cash dividends
  declared
  ($.40 per share)        -         -             -      (171,330)          -            -             -            -     (171,330)

Purchase of
  Treasury Stock          -         -             -             -           -            -             -     (210,802)    (210,802)
                   --------   -------   -----------   -----------    --------    ---------   -----------  -----------  -----------

BALANCE,
  MARCH 31, 2002   $      -   $66,143   $ 6,213,295   $ 5,128,824    $711,074    $(260,866)  $  (137,467) $(2,644,227) $ 9,076,776
                   ========   =======   ===========   ===========    ========    =========   ===========  ===========  ===========
</TABLE>

                                      -18-
<PAGE>

                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                           Year Ended March 31,
                                                                            2002           2001
                                                                        -----------    -----------
<S>                                                                   <C>            <C>
OPERATING ACTIVITIES
      Net income                                                        $   273,482    $   227,552
      Adjustments to reconcile net income to net cash
          provided by operating activities:
           Depreciation, amortization and accretion, net                     84,778         78,105
           Loss (gain) on sale of available-for-sale securities             (62,130)             -
           Provision for loan losses                                          2,100          1,450
           Deferred federal income taxes                                    (40,232)        13,538
           ESOP amortization                                                 79,022         57,863
           RSP amortization                                                  56,930         17,968
           Decrease (increase) in accrued interest receivable
             and other assets                                                (5,846)        (3,354)
           Increase (decrease) in accrued interest payable
             and other liabilities                                          (20,466)       (31,310)
                                                                        -----------    -----------
                  Net cash provided by operating activities                 367,638        361,812
                                                                        -----------    -----------

INVESTING ACTIVITIES
      Purchase of available-for-sale securities                          (1,018,879)             -
      Proceeds from sale of available-for-sale securities                    63,109              -
      Proceeds from maturity or call of available-for-sale securities       450,000      1,050,000
      Principal collected on mortgage-backed securities                     200,342        181,767
      Net increase in loans                                              (3,270,569)    (1,608,745)
      Purchases of office properties and equipment                           (5,992)      (365,603)
                                                                        -----------    -----------
                  Net cash used in investing activities                  (3,581,989)      (742,581)
                                                                        -----------    -----------

FINANCING ACTIVITIES
      Net increase in deposits                                            7,305,550      2,984,974
      Federal Home Loan Bank advance                                              -       (900,000)
      Dividends Paid                                                       (171,330)      (184,092)
      Purchase of Treasury Stock                                           (210,802)      (784,128)
                                                                        -----------    -----------
                  Net cash provided by financing activities               6,923,418      1,116,754
                                                                        -----------    -----------

                  Change in cash and cash equivalents                     3,709,067        735,985

CASH AND CASH EQUIVALENTS,
    BEGINNING OF PERIOD                                                   1,125,056        389,071
                                                                        -----------    -----------
CASH AND CASH EQUIVALENTS,
    END OF PERIOD                                                       $ 4,834,123    $ 1,125,056
                                                                        ===========    ===========

SUPPLEMENTAL  DISCLOSURES OF CASH FLOWS  INFORMATION
 Cash paid during the period for:
           Interest on deposits and advances                            $ 1,113,831    $ 1,029,820
           Income taxes                                                      93,879        107,515

</TABLE>

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

                                      -19-
<PAGE>

                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                             MARCH 31, 2002 AND 2001


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
      percent 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 and its branch
      office located in Parkersburg,  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  accounting  principles  generally  accepted in the United  States of
      America 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.

                                      -20-

<PAGE>

                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 2002 AND 2001


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

      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 fair value with  unrealized  gains and
      losses, net of tax, reflected as a component of stockholders' 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.

      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.

                                      -21-
<PAGE>
                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 2002 AND 2001



NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

      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.

      Earnings Per Common Share - On June 25, 1997,  the Company  issued 661,428
      shares of common stock. 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 2002  fiscal  year is $.61 and 2001
      fiscal  year is $.45,  assuming  the shares had been  outstanding  for the
      entire period.

      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, 2002, and
      for March 31, 2001,  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:

                                      -22-

<PAGE>
                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 2002 AND 2001



NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

                                                                  March 31,
                                                                2002      2001
                                                             -------   -------
Denominator:
     Denominator for basic earnings per share-weighted-
       average shares                                        420,792   473,408

     Employee stock options (antidilutive)                       700         -
     Unvested RSP shares                                       8,048     9,574
                                                             -------   -------

     Denominator for diluted earnings per share-adjusted
       weighted-average assumed conversions                  429,540   482,982
                                                             =======   =======


      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.


NOTE 2 - STOCKHOLDERS' EQUITY

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

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


           Shares outstanding, March 31, 2000                  -        538,739
              Shares repurchased                               -        (62,573)
                                                    -------------  ------------

           Shares outstanding, March 31, 2001                  -        476,166
              Shares repurchased                               -        (15,543)
                                                    -------------  ------------

           Shares outstanding, March 31, 2002                  -        460,623
                                                    =============  ============


                                      -23-
<PAGE>
                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 2002 AND 2001



NOTE 3 - INVESTMENT SECURITIES

      The  carrying  amounts and fair  values of  investment  securities  are as
      follows at March 31, 2002 and 2001:

<TABLE>
<CAPTION>
                                                           2002
                                     --------------------------------------------------
                                                    Gross        Gross       Estimated
                                     Amortized    Unrealized   Unrealize       Fair
                                        Cost        Gains        Losses        Value
                                     ----------   ----------   ----------    ----------
<S>                                <C>          <C>          <C>           <C>
Securities available-for-sale:
   Federal Home Loan Mortgage
    Corporation stock                $   17,735   $1,130,023   $        -    $1,147,758
   Municipal securities                 905,381            -      (29,680)      875,701
   U.S. agency obligations              999,387       11,219      (28,637)      981,969
   Mortgage-backed securities-
     GNMA and FNMA                      588,154        1,939       (6,316)      583,777
                                     ----------   ----------   ----------    ----------

          Total available-for-sale    2,510,657    1,143,181      (64,633)    3,589,205

Securities to be held-to-maturity:
   Mortgage-backed securities-
    GNMA and FHLMC                      103,894        3,107            -       107,001
                                     ----------   ----------   ----------    ----------

          Total                      $2,614,551   $1,146,288   $  (64,633)   $3,696,206
                                     ==========   ==========   ==========    ==========
</TABLE>

<TABLE>
<CAPTION>
                                                           2001
                                     --------------------------------------------------
                                                    Gross        Gross       Estimated
                                     Amortized    Unrealized   Unrealize       Fair
                                        Cost        Gains        Losses        Value
                                     ----------   ----------   ----------    ----------
<S>                                <C>          <C>          <C>           <C>

Securities available-for-sale:
   Federal Home Loan Mortgage
    Corporation stock                $   18,714   $1,214,966   $        -    $1,233,680
   Municipal securities                 905,834            -      (13,249)      892,585
   U.S. agency obligations              950,000       12,065         (562)      961,503
   Mortgage-backed securities-
     GNMA                               201,322        3,408            -       204,730
                                     ----------   ----------   ----------    ----------

          Total available-for-sale    2,075,870    1,230,439      (13,811)    3,292,498

Securities to be held-to-maturity:
   Mortgage-backed securities-
    GNMA and FHLMC                      173,527        3,397            -       176,924
                                     ----------   ----------   ----------    ----------

          Total                      $2,249,397   $1,233,836   $  (13,811)   $3,469,422
                                     ==========   ==========   ==========    ==========
</TABLE>

                                      -24-

<PAGE>
                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 2002 AND 2001



NOTE 3 - INVESTMENT SECURITIES (CONTINUED)

      The amortized and estimated market value of investment securities at March
      31, 2002 and 2001, 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, 2002
                                      -------------------------------------------------
                                            Securities              Securities
                                         Available-for-Sale        Held-to-Maturity
                                      -----------------------   -----------------------
                                                   Estimated                 Estimated
                                      Amortize       Fair       Amortized       Fair
                                         Cost        Value        Cost          Value
                                      ----------   ----------   ----------   ----------
<S>                                 <C>          <C>          <C>          <C>

         Due in one year or less      $        -   $        -   $        -   $        -
         Due after one year
           through five years            300,000      307,407            -            -
         Due after five years
           through ten years             100,000       99,219            -            -
         Due after ten years           1,504,768    1,451,044            -            -
         Mortgage-backed securities      588,154      583,777      103,894      107,001
         Equity securities                17,735    1,147,758            -            -
                                      ----------   ----------   ----------   ----------

                Total                 $2,510,657   $3,589,205   $  103,894   $  107,001
                                      ==========   ==========   ==========   ==========
</TABLE>

<TABLE>
<CAPTION>
                                                       March 31, 2001
                                      -------------------------------------------------
                                            Securities              Securities
                                         Available-for-Sale        Held-to-Maturity
                                      -----------------------   -----------------------
                                                   Estimated                 Estimated
                                      Amortize       Fair       Amortized       Fair
                                         Cost        Value        Cost          Value
                                      ----------   ----------   ----------   ----------
<S>                                 <C>          <C>          <C>          <C>

         Due in one year or less      $        -   $        -   $        -   $        -
         Due after one year
           through five years            450,000      453,939            -            -
         Due after five years
           through ten years                   -            -            -            -
         Due after ten years           1,405,834    1,400,149            -            -
         Mortgage-backed securities      201,322      204,730      173,527      176,924
         Equity securities                18,714    1,233,680            -            -
                                      ----------   ----------   ----------   ----------

                Total                 $2,075,870   $3,292,498   $  173,527   $  176,924
                                      ==========   ==========   ==========   ==========
</TABLE>

      There were no transfers of securities  between  classifications in 2002 or
2001.

                                      -25-
<PAGE>
                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 2002 AND 2001



NOTE 4 - LOANS AND ALLOWANCE FOR POSSIBLE LOAN LOSSES

      Loans outstanding at March 31 are as follows:

                                                      2002          2001
                                                 -----------   -----------
          Mortgage Loans:
             Construction                        $ 1,000,200   $   934,775
             1-4 family                           28,974,546    26,182,770
          Consumer Loans:
             Automobiles                             646,922       665,506
             Savings account                         163,683       169,336
             Revolving loans                         180,577        97,397
             Other                                    27,470        29,919
          Commercial                                 292,653       294,366
                                                 -----------   -----------
                   Total                          31,286,051    28,374,069
          Less:
             Allowance for loan losses               178,100       176,000
             Undisbursed funds                       768,804     1,161,819
             Net deferred loan fees                   74,270        39,842
                                                 -----------   -----------

                   Loans receivable, net         $30,264,877   $26,996,408
                                                 ===========   ===========

      Activity in the  allowance  for loan  losses for the years ended March 31,
      2002 and 2001, is summarized as follows:

                                                     2002          2001
                                                 -----------   -----------

          Balance, beginning of year             $   176,000   $   174,550
          Add provisions charged to operations         2,100         1,450
                                                 -----------   -----------
                                                     178,100       176,000
          Less loans charged off                           -             -
                                                 -----------   -----------

          Balance, end of period                 $   178,100   $   176,000
                                                 ===========   ===========


      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, 2002 and 2001,  were
      $13,949 and $10,952, respectively.

                                      -26-

<PAGE>

                           SISTERSVILLE BANCORP, INC.
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 2002 AND 2001


NOTE 5 - OFFICE PROPERTIES AND EQUIPMENT

      Properties and equipment at March 31 are summarized as follows:

                                                  2002         2001
                                               ----------   ----------

        Land                                   $  489,255   $  489,255
        Office buildings and improvements       1,228,606    1,228,605
        Furniture, fixtures, and equipment        402,780      396,788
                                               ----------   ----------
                 Total                          2,120,641    2,114,648
        Less accumulated depreciation             538,732      456,356
                                               ----------   ----------

                 Premises and equipment, net   $1,581,909   $1,658,292
                                               ==========   ==========


      Depreciation charged to operations amounted to $82,376 and $75,931 for the
      years ended March 31, 2002 and 2001, respectively.


NOTE 6 - DEPOSITS ANALYSIS

      Deposit accounts at March 31 are summarized as follows:

<TABLE>
<CAPTION>
                                               2002                     2001
                                     -----------------------  ------------------------
                                                  Percent of                Percent of
                                        Amount    Portfolio     Amount      Portfolio
                                     -----------  ----------  -----------   ----------

<S>                                <C>             <C>      <C>             <C>
          Savings accounts           $12,032,029      38.4%   $ 7,949,921      33.1%
          NOW accounts                 2,070,553       6.6%     1,773,377       7.4%
          Money market accounts        2,212,471       7.1%     1,737,309       7.2%
                                     -----------     -----    -----------     -----
                                      16,315,053      52.1%    11,460,607      47.7%
                                     -----------     -----    -----------     -----
          Certificates of deposit:
             2.00 - 4.00%              5,624,823      17.9%           -         0.0%
             4.01 - 6.00%              8,003,303      25.5%     7,041,908      29.3%
             6.01 - 8.00%              1,400,952       4.5%     5,536,066      23.0%
                                     -----------     -----    -----------     -----
                                      15,029,078      47.9%    12,577,974      52.3%
                                     -----------     -----    -----------     -----

                   Total             $31,344,131     100.0%   $24,038,581     100.0%
                                     ===========     =====    ===========     =====
</TABLE>

                                      -27-
<PAGE>
                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 2002 AND 2001



NOTE 6 - DEPOSITS ANALYSIS (CONTINUED)

      The scheduled maturities of certificates of deposit at March 31, 2002, are
      as follows:

                                                                        Amount
                                                                     -----------

          Within one year                                            $ 9,670,235
          Due after one year, but within two years                     2,930,721
          Due after two years, but within three years                  1,367,153
          Due after three years                                        1,060,969
                                                                     -----------

                   Total                                             $15,029,078
                                                                     ===========


      Certificates  of  deposit  issued in  denominations  of  $100,000  or more
      amounted to  $3,565,981  at March 31, 2002,  and  $1,809,256  at March 31,
      2001. Deposits in excess of $100,000 are not federally insured.

      Interest expense by deposit category is as follows:

                                                  Year Ended March 31,
                                                    2002          2001
                                                ----------    ----------

          Savings - passbook                    $  292,339    $  287,598
          NOW and money market                     101,437        81,797
          Time certificates of deposit             694,232       614,492
                                                ----------    ----------

                   Total                        $1,088,008    $  983,887
                                                ==========    ==========


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  judgment by
      the regulators about components, risk weighting, and other factors.

                                      -28-
<PAGE>
                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 2002 AND 2001



NOTE 7 - REGULATORY MATTERS (CONTINUED)

      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, 2002, that the Bank meets all capital  adequacy  requirements to which
      they are subject.

      As of March 31,  2002,  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  accounting   principles
      generally accepted in the United States of America to regulatory capital:

                                                             March 31,
                                                         2002      2001
                                                        ------    ------
                                                        (In Thousands)

          Total equity                                  $8,683    $8,480

          Accumulated other comprehensive income          (711)     (796)
                                                        ------    ------

                   Tier I (core) and tangible capital    7,972     7,684
          Allowance for loan losses                        178       176
                                                        ------    ------

                   Risk-based capital                   $8,150    $7,860
                                                        ======    ======

                                      -29-
<PAGE>
                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 2002 AND 2001



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>
                                                                        2002                      2001
                                                               ----------------------    -----------------------
                                                                Amount         Ratio       Amount        Ratio
                                                               --------       --------    --------      --------
                                                                   (In Thousands)             (In Thousands)
<S>                                                          <C>             <C>       <C>             <C>
          Total Capital to Risk-Weighted Assets
          -------------------------------------
             Actual                                            $   8,150       40.73%    $   7,860       44.42%
             For capital adequacy purposes                         1,601        8.00%        1,416        8.00%
             To be "well capitalized"                              2,001       10.00%        1,770       10.00%

          Tier I (Core) Capital to Risk-Weighted Assets
          ---------------------------------------------
             Actual                                            $   7,972       39.84%    $   7,684       43.42%
             For capital adequacy purposes                           800        4.00%          707        4.00%
             To be "well capitalized"                              1,201        6.00%        1,062        6.00%

          Tier I (Core) Capital to Adjusted Assets
          ----------------------------------------
             Actual                                            $   7,972       19.79%    $   7,684       23.20%
             For capital adequacy purposes                         1,208        3.00%          994        3.00%
             To be "well capitalized"                              2,014        5.00%        1,656        5.00%

        Tangible Capital to Adjusted Assets
        -----------------------------------
             Actual                                            $   7,972       19.79%    $   7,684       23.20%
             For capital adequacy purposes                           604        1.50%          497        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 percent 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, 2002
      and 2001,  included  approximately  $696,000 (pre 1988 reserves) for which
      federal income tax has not been provided.

                                      -30-
<PAGE>
                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 2002 AND 2001



NOTE 8 - INCOME TAX (CONTINUED)

      The provisions for income taxes consist of:

                                                           Year Ended March 31,
                                                             2002         2001
                                                          ---------    ---------

             Current                                      $ 115,398    $  63,613
             Deferred                                       (37,752)      13,437
                                                          ---------    ---------

                      Total                               $  77,646    $  77,050
                                                          =========    =========


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

<TABLE>
<CAPTION>
                                                                  March 31,
                                                              2002         2001
                                                           ---------    ---------

<S>                                                      <C>          <C>
Deferred loan fees                                         $ (13,255)   $ (13,066)
Other income and expense recognized in the financial
  statements on the accrual basis, but on the cash basis
  for tax purposes                                            15,284       15,888
Bad debt reserve, net                                        (60,554)     (59,840)
Depreciation                                                  18,159       17,819
Others                                                           134       36,719
                                                           ---------    ---------
                                                             (40,232)      (2,480)
Unrealized gains on available-for-sale securities            366,706      421,681
                                                           ---------    ---------

     Net deferred tax liability                            $ 326,474    $ 419,201
                                                           =========    =========
</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:

                                                          Year Ended March 31,
                                                           2002          2001
                                                        ---------     ---------

Tax at statutory rate (34%)                             $ 119,384     $ 103,565
    Increase (decrease) in taxes resulting from:
       Nondeductible ESOP compensation                      5,016           826
       Other, net                                         (46,754)      (27,341)
                                                        ---------     ---------

             Total                                      $  77,646     $  77,050
                                                        =========     =========

             Effective rate                                  22.1%         25.3%
                                                        =========     =========

                                      -31-

<PAGE>
                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 2002 AND 2001



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, 2002 and 2001, was $26,836 and $1,300, 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 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 less  dividends paid on allocated ESOP shares
      used to supplement the annual  principal  payment.  The ESOP shares become
      outstanding  for earnings per share  computations as they are committed to
      be released.  Dividends paid on ESOP shares are recorded as a reduction of
      retained earnings.  Compensation  expense for the ESOP for the years ended
      March 31, 2002 and 2001, was $72,347 and $53,566, respectively.

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

                                                 2002         2001
                                              ---------    ---------

          Allocated shares                       22,859       17,567
          Shares committed for allocation         3,968        3,969
          Shares distributed                     (2,406)           -
          Unallocated (noncommitted) shares      26,087       31,378
                                              ---------    ---------

                   Total ESOP shares             50,508       52,914
                                              =========    =========

          Fair value of noncommitted shares   $ 460,696    $ 423,603
                                              =========    =========

                                      -32-
<PAGE>
                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 2002 AND 2001



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.  In July 2001,  an  additional  1,323  shares  were
      awarded of which 529 shares were forfeited. These shares become earned and
      non-forfeitable over a 5-year period on each anniversary date of the award
      beginning July 16, 2002. 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.  In July 2000,  the Board of Directors
      adopted a resolution  to defer vesting of plan shares to all agreeing plan
      participants.  RSP share  vesting  was  deferred  through  July 2001.  Net
      compensation  expense  attributable  to the RSP  amounted  to $56,930  and
      $17,969, for the years ended March 31, 2002 and 2001, respectively.


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.  In July 1998,  the  Company  granted  options to
      purchase 58,000 shares of common stock of which 3,243 were forfeited.  The
      options are first  exercisable  over a five-year period beginning July 16,
      1998. In July 2001, the Company  granted options to purchase an additional
      3,306 shares of common stock of which 1,322 were forfeited.  These options
      are first  exercisable  over a 5-year period  beginning July 16, 2002. The
      stock options  typically have expiration  terms of 10 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.

                                      -33-
<PAGE>
                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 2002 AND 2001



NOTE 12 - STOCK OPTION PLAN (CONTINUED)

      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.
      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.

      Under Accounting  Principles Board Opinion No. 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,     March 31,
                                                  2002          2001
                                                --------      --------
          Net income:
                As reported                     $273,482      $227,552
                Pro forma                       $254,469      $189,693

          Basic earnings per share:
                As reported                     $    .65      $    .48
                Pro forma                       $    .60      $    .40

          Diluted earnings per share:
                As reported                     $    .64      $    .47
                Pro forma                       $    .59      $    .39


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

<TABLE>
<CAPTION>
                                              Weighted-Average
                                               Exercise Price        Shares Under Option
                                              ----------------       -------------------
                                                     2002              2002     2001
                                                  ---------          -------   --------
<S>                                             <C>                 <C>        <C>
          Outstanding, beginning of year          $ 15.8125           58,000     58,000
          Granted during the period                 13.9750            3,306          -
          Forfeited during the period               15.2804           (4,565)         -
          Exercised during the period                     -                -
                                                                      ------     ------

                Outstanding, end of period          15.7697           56,741     58,000
                                                                      ======     ======

          Exercisable options, end of period        15.8125           49,640     38,040
                                                                      ======     ======
</TABLE>


      The  weighted-average  grant-date fair value of options granted during the
      year ended  March 31,  2002,  amounted  to $9,315.  The range of  exercise
      prices for  options  outstanding  as of March 31,  2002,  is  $13.9750  to
      $15.8125 and the weighted-average remaining contractual life is 3 years.

                                      -34-

<PAGE>
                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 2002 AND 2001



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.


      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
                                               ------------------------
                                                  2002         2001
                                               ----------    ----------
          Commitments to originate loans:
              Fixed rate                       $  721,000    $  571,000
          Loans in process                        768,804     1,161,819
          Consumer lines of credit                277,000        96,000
                                               ----------    ----------

                Total                          $1,766,804    $1,828,819
                                               ==========    ==========

      The  range of  interest  rates on fixed  rate  residential  mortgage  loan
      commitments was 7.00 percent to 7.40 percent at March 31, 2002.

      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.

                                      -35-

<PAGE>
                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 2002 AND 2001



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.

          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, 2002             March 31, 2001
                                             ---------------------------   -------------------------
                                               Carrying       Estimated      Carrying     Estimated
                                                Amount        Fair Value      Amount      Fair Value
                                             -----------     -----------   -----------   -----------
<S>                                        <C>             <C>           <C>           <C>
         Financial Assets:
            Cash and cash equivalents        $ 4,834,000     $ 4,834,000   $ 1,125,000   $ 1,125,000
            Securities available-for-sale      3,589,000       3,589,000     3,292,000     3,292,000
            Securities held-to-maturity          104,000         107,000       174,000       177,000
            Loans, net                        30,265,000      31,647,000    26,996,000    27,531,000

         Financial Liabilities:
            Deposits                          31,344,000      31,516,000    24,040,000    24,172,000
</TABLE>

                                      -36-

<PAGE>
                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 2002 AND 2001



NOTE 15 - BORROWED FUNDS

      The Bank  received a $1 million  draw on an advance  from the Federal Home
      Loan Bank (FHLB) on July 13, 2001,  with a maturity date of July 13, 2004.
      The advance was paid off in March 2002.  Interest  payments  were  payable
      quarterly on the  outstanding  principal  balance.  The advance was a 5.03
      percent fixed-rate obligation.


NOTE 16 - 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.  Unrealized
      gains and losses on securities  available-for-sale are the only components
      of other comprehensive income (loss) that apply to the Bank.

                                              2002        2001
                                            --------    --------

         Before-tax amount                  $(138,080)  $ 582,176
         Tax effect                            52,495    (205,867)
                                            ---------   ---------

               Net-of-tax amount            $ (85,585)  $ 376,309
                                            =========   =========


NOTE 17 - 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:

                                      -37-

<PAGE>
                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 2002 AND 2001



NOTE 17 - CONDENSED PARENT COMPANY FINANCIAL STATEMENTS (CONTINUED)


                                 BALANCE SHEETS
                             MARCH 31, 2002 AND 2001
<TABLE>
<CAPTION>

                                                                   2002           2001
                                                              -----------    -----------
<S>                                                         <C>            <C>
ASSETS
      Deposits with Subsidiary Bank                           $   467,125    $   814,891
      Investment in Subsidiary Bank                             8,682,595      8,480,487
      Receivable from Subsidiary                                   55,897         43,312
      Other assets                                                 15,111         21,572
                                                              -----------    -----------

                 TOTAL ASSETS                                 $ 9,220,728    $ 9,360,262
                                                              ===========    ===========

LIABILITIES AND SHAREHOLDERS' EQUITY
      Payable from Subsidiary                                 $   137,467    $   194,397
      Other liabilities                                             6,485         30,806
      Shareholders' equity                                      9,076,776      9,135,059
                                                              -----------    -----------

                 TOTAL LIABILITIES AND
                  SHAREHOLDERS' EQUITY                        $ 9,220,728    $ 9,360,262
                                                              ===========    ===========
</TABLE>


                              STATEMENTS OF INCOME
                       YEAR ENDED MARCH 31, 2002 AND 2001

<TABLE>
<CAPTION>
                                                                  2002           2001
                                                              -----------    -----------
<S>                                                         <C>            <C>
INCOME
      Interest                                                $    25,884    $    75,592

OPERATING EXPENSES                                                 46,594         38,217
                                                              -----------    -----------

                 Income (loss) before income tax and equity
                   in undistributed income of Subsidiary          (20,710)        37,375

INCOME TAX (EXPENSE)/BENEFIT                                        6,785        (14,443)

EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARY                      287,407        204,620
                                                              -----------    -----------

                 NET INCOME                                   $   273,482    $   227,552
                                                              ===========    ===========
</TABLE>

                                      -38-

<PAGE>
                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 2002 AND 2001



NOTE 17 - CONDENSED PARENT COMPANY FINANCIAL STATEMENTS (CONTINUED)


                            STATEMENTS OF CASH FLOWS
                       YEAR ENDED MARCH 31, 2002 AND 2001

<TABLE>
<CAPTION>

                                                                2002         2001
                                                             ---------    ---------
<S>                                                        <C>          <C>
OPERATING ACTIVITIES
      Net income                                             $ 273,482    $ 227,552
      Adjustments to reconcile net income to net cash
        provided by operating activities:
         Undistributed earnings of Subsidiary                 (287,407)    (204,620)
         Dividend received from Subsidiary                           -      650,000
         ESOP amortization                                      79,022       57,863
         RSP amortization                                       56,930       17,968
         (Increase) decrease in other assets                    (6,124)      29,038
         Increase (decrease) in other liabilities              (81,537)     (34,950)
                                                             ---------    ---------
                 Net cash provided by operating activities      34,366      742,851
                                                             ---------    ---------

INVESTING ACTIVITIES
      Investment maturities and calls                                -      800,000
                                                             ---------    ---------
                 Net cash provided by investing activities           -      800,000
                                                             ---------    ---------

FINANCING ACTIVITIES
      Purchase of treasury stock                              (210,802)    (784,128)
      Dividends paid                                          (171,330)    (184,092)
                                                             ---------    ---------
                 Net cash used in financing activities        (382,132)    (968,220)
                                                             ---------    ---------
                 INCREASE (DECREASE) IN CASH
                  AND CASH EQUIVALENTS                        (347,766)     574,631

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR                   814,891      240,260
                                                             ---------    ---------

CASH AND CASH EQUIVALENTS, END OF YEAR                       $ 467,125    $ 814,891
                                                             =========    =========

SUPPLEMENTAL DISCLOSURES
      Income tax payments                                    $  10,400    $   8,515
</TABLE>

                                      -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, PC
1100 New York Ave., N.W.
Suite 340 West
Washington, D.C. 20005


TRANSFER AGENT
--------------
American Stock Transfer & Trust Company
59 Maiden Lane
New York, NY 10038


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

Stanley M. Kiser, Chairman                             Ellen E. Thistle
David W. Miller                                        Charles P. LaRue
Michael A. Melrose


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

Stanley M. Kiser, President and Chairman
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
Shelley R. Maxwell, Treasurer
P. Jane Fuchs, Cashier
Steven R. Reed, Branch Manager


Sistersville  Bancorp,  Inc.'s  Annual Report on Form 10-KSB for the fiscal year
ended March 31, 2002, as filed with the Securities and Exchange  Commission,  is
available without charge to shareholders  upon written request.  The 2002 Annual
Meeting of  Stockholders  will be held on July 18,  2002,  at 9:00 A.M.,  at the
offices of First Federal  Savings Bank,  726 Wells  Street,  Sistersville,  West
Virginia.

                                      -40-