Sistersville
                                 Bancorp, Inc.



                                      2001
                                 Annual Report

<PAGE>



                                 Sistersville
                                 Bancorp, Inc.

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


Report to Shareholders:

It is with pleasure that I provide to you the  Sistersville  Bancorp,  Inc. (the
"Company")  2001 Annual  Report.  At a time when most stocks are struggling in a
"bear  market," I am pleased to report that the trading price of your  Company's
stock on March 31, 2001 shows an increase of  approximately  thirty five percent
(35%) over the trading price of one year ago.

During the year the Company  continued to aggressively  buy back shares of stock
in the open  market,  having  successfully  completed a ten percent  (10%) stock
repurchase in January of this year.  Another five percent (5%) stock  repurchase
was  announced by your Board of Directors in March of this year and completed in
April, just after our March 31 fiscal year end. The stock  repurchases  resulted
in a significant increase in the book value of your stock.

In addition to the stock  repurchases,  your Board of  Directors  increased  the
dividend  paid per share for the third  consecutive  year,  and will continue to
seek ways to increase the value of your Sistersville Bancorp, Inc. shares.

The  Company's   subsidiary,   First  Federal  Savings  Bank  (the  "Bank"),  is
experiencing  growth as a result of the  opening of its first  branch  office in
Parkersburg,  West  Virginia  during the second  quarter of 2000.  The branch is
meeting  projections,  and in  some  categories  exceeding  projections,  and is
providing growth opportunity for the Bank in both loans and deposits.

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

Sincerely,


/s/Stanley M. Kiser

Stanley M. Kiser
President

<PAGE>

                           SISTERSVILLE BANCORP, INC.

Corporate Profile

Sistersville  Bancorp,  Inc. (the "Company") is a Delaware corporation organized
in March,  1997.  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,  2001 and 2000.
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, 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

     Fiscal year ended March 31, 2000:

              April 1, 1999 - June 30, 1999                    $ 12.50   $ 11.25
              July 1, 1999 - September 30, 1999                  11.38     11.00
              October 1, 1999 - December 31, 1999                11.00     10.12
              January 1, 2000 - March 31, 2000                   10.25      9.00

                                      -2-
<PAGE>

SVBC  declared  a  semi-annual  dividend  of $.18 per  share in  June,  2000.  A
semi-annual dividend per share of $.20 was also declared in December,  2000. The
number of  shareholders  of record of common  stock as of the record date of May
25, 2001, 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 25, 2001,  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,
                                                  -----------------------------
                                                     2001               2000
                                                  -----------        ----------
                                                      (Dollars in thousands)

Total assets                                        $ 33,747           $31,762
Loans receivable, net                                 26,996            25,389
Mortgage-backed securities                               379               559
Investments (1)                                        3,930             3,807
Cash - noninterest bearing                               282               141
Savings deposits                                      24,039            21,054
Other borrowings                                           -               900
Stockholders' equity (2)                               9,135             9,424

Number of full-service offices                             2                 1

(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,
                                                  ------------------------------
                                                       2001             2000
                                                  -------------   --------------
                                                      (Dollars in thousands)

Interest and dividend income                      $      2,323    $        2,284
Interest expense                                         1,029               932
                                                  -------------   --------------
     Net interest income                                 1,294             1,352
                                                  -------------   --------------
Provision for loan losses                                    2                 4
                                                  -------------   --------------
     Net interest income after
       provision for loan losses                         1,292             1,348
                                                  -------------   --------------
Non-interest income:
  Service charges                                           41                33
  Other income                                               3                 2
                                                  -------------   --------------
     Total other income                                     44                35
                                                  -------------   --------------

Non-interest expense:
  Compensation and employee benefits                       573               549
  Occupancy and equipment                                  135                87
  Deposit insurance premiums                                 4                10
  Loss on sale of investments                                -                23
  Other general and administrative                         319               313
                                                  -------------   --------------
    Total non-interest expense                           1,031               982
                                                  -------------   --------------

    Income before income taxes                             305               401

Provision for federal income taxes                          77               135
                                                  -------------   --------------
     Net income                                   $        228    $          266
                                                  =============   ==============

                                      -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,
                                                                  ------------------
                                                                   2001       2000
                                                                  -------    -------
<S>                                                              <C>        <C>
Capital Ratios:
Average equity to average assets ratio
 (average equity divided by average total assets)                   28.47%     29.80%
Equity to assets at period end                                      27.07%     29.67%


Performance Ratios:
Return on average equity (net income
 divided by average equity)                                          2.43%      2.78%
Return on average assets (net income
 divided by average total assets)                                    0.69%      0.83%
Net interest rate spread                                             3.06%      3.20%
Net yield on average interest earning assets                         4.20%      4.39%
Average interest earning assets to
 average interest-bearing liabilities                              134.16%    139.42%
Net interest income after provision for possible
  loan losses, to total other expenses                             125.19%    137.27%
Non-interest expense to average assets                               3.13%      3.06%
Efficiency Ratio (1)                                                77.21%     71.00%


Asset Quality Ratios:
Non-performing loans to total assets                                 0.00%      0.00%
Non-performing loans to total loans                                  0.00%      0.00%
Allowance for loan losses to total loans                             0.65%      0.69%
Allowance for loan losses to total non-performing loans               N/A        N/A
Allowance for loan losses to total non-performing assets (2)          N/A        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>

NET PORTFOLIO VALUE

The Bank  computes  amounts  by which  the net  present  value of cash flow from
assets,  liabilities  and off balance sheet items ("the net portfolio  value" or
"NPV")  would  change  in the  event of a range of  assumed  changes  in  market
interest rates.  These  computations  estimate the effect on the Bank's NPV from
instantaneous  and  permanent 1% to 3% (100 to 300 basis  points)  increases and
decreases in market interest rates.  Based upon OTS  assumptions,  the following
table presents the Bank's NPV at March 31, 2001.



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

              +300 bp           21.29 %           10%
              +200 bp           23.33             10
              +100 bp           25.32             10
                 0 bp           27.35             10
              -100 bp           28.33             10
              -200 bp           28.89             10
              -300 bp           29.54             10

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

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


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

                                      -7-
<PAGE>
AVERAGE BALANCE SHEET

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

<TABLE>
<CAPTION>
                                                        Year Ended March 31,                               At  March 31,
                                 ---------------------------------------------------------------------  ---------------------
                                            2001                                 2000                           2001
                                 --------------------------------   ----------------------------------  ---------------------
                                 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)           $26,091     $2,078        7.96%    $24,955     $ 1,982         7.94%   $26,996        7.87%
  Investment securities (2)(6)     4,234        213        5.03%      5,186         262         5.05%     3,930        4.69%
  Mortgage-backed securities         471         32        6.79%        660          40         6.06%       379        7.54%
                                 --------  ---------  -----------   --------  ----------   -----------  --------  -----------
     Total interest-earning
       assets                     30,796      2,323        7.54%     30,801       2,284         7.42%    31,305        7.46%
                                           ---------  -----------             ----------   -----------            -----------
Non-interest-earning assets        2,171                              1,325                               2,442
                                 --------                           --------                            --------
     Total assets                $32,967                            $32,126                              33,747
                                 ========                           ========                            ========
Interest-bearing liabilities:
  Regular savings deposits       $ 8,252        288        3.49%    $ 8,588         302         3.52%   $ 7,950        3.50%
  Now accounts                     1,382         34        2.46%      1,395          34         2.44%     1,518        2.56%
  Money market demand              1,329         48        3.61%      1,097          36         3.28%     1,737        4.09%
  Time deposits                   11,265        613        5.44%     10,066         509         5.06%    12,578        4.86%
                                 --------  ---------  -----------   --------  ----------   -----------  --------  -----------
     Subtotal deposits            22,228        983        4.42%     21,146         881         4.17%    23,783        4.20%
  Short-term borrowings              727         46        6.33%        946          51         5.39%         -        0.00%
                                 --------  ---------  -----------   --------  ----------   -----------  --------  -----------
     Total interest-bearing
       liabilities                22,955      1,029        4.48%     22,092         932         4.22%    23,783        4.20%
                                           ---------  -----------             ----------   -----------            -----------
Noninterest-bearing liabilities      626                                459                                 829
                                 --------                           --------                            --------
     Total Liabilities            23,581                             22,551                              24,612

Retained Earnings (3)              9,386                              9,575                               9,135
                                 --------                           --------                            --------
     Total liabilities and
      retained earnings          $32,967                            $32,126                             $33,747
                                 ========                           ========                            ========
Net interest income                          $1,294                             $ 1,352
                                           =========                          ==========
Interest rate spread(4)                                    3.06%                                3.20%                  3.26%
                                                      ===========                          ===========            ===========
Net yield on interest-earning
  assets(5)                                                4.20%                                4.39%                  4.13%
                                                      ===========                          ===========            ===========
Ratio of average
  interest-earning
  assets to average
  interest-bearing
  liabilities                                            134.16%                              139.42%                131.64%
                                                      ===========                          ===========            ===========
</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, 2001 is
     calculated on the tax equivalent yield.

                                       -8-
<PAGE>

Rate/Volume Analysis

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



                                                   Year Ended March 31,
                                                     2001   vs. 2000
                                            ------------------------------------
                                                               Rate/
                                             Volume    Rate    Volume     Net
                                             ------    ----    ------     ---
                                                      (In thousands)
Interest-earning assets:
  Loans receivable                            $ 90     $  5      $ (1)     $ 94
  Investment securities                        (48)      (1)        -       (49)
  Mortgage-backed securities                   (11)       5        (1)       (7)
                                            -------    -----   -------   -------
      Total interest-earning assets             31        9        (2)       38
                                            -------    -----   -------   -------

Interest-bearing liabilities:
  Savings deposits                              45       53         3       101
  Short-term borrowings                        (12)       9        (2)       (5)
                                            -------    -----   -------   -------
      Total interest-bearing liabilities        33       62         1        96
                                            -------    -----   -------   -------

      Net change in net interest income       $ (2)    $(53)     $ (3)     $(58)
                                            =======    =====   =======   =======

                                      -9-
<PAGE>

Comparison of Financial Condition

The  Company's  total  assets  increased  by   approximately   $2.0  million  to
$33,747,000 at March 31, 2001, from $31,762,000 at March 31, 2000. Cash and cash
equivalents increased $736,000 to $1,125,000 at March 31, 2001, from $389,000 at
March 31,  2000.  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,  purchase of office  properties  and  equipment,  net payment on the
Federal Home Loan Bank ("FHLB") advance,  payment of dividends,  and purchase of
Treasury shares.  Investment  securities  decreased  $652,000 from $4,118,000 at
March 31, 2001, to $3,466,000 at March 31, 2000. This decrease was the result of
$1,050,000 in matured or called U.S. Agency securities and $182,000 in principal
collected on mortgage-backed securities,  offset by the $583,000 increase in the
market value of  available-for-sale  securities.  Net loans receivable increased
$1.6 million from  $25,389,000  at March 31, 2000, to  $26,996,000  at March 31,
2001.  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,  the  competitive  pricing of the Bank's loan
products, and the opening of the new branch office located in Parkersburg,  West
Virginia.  Office property and equipment  increased  $290,000 from $1,368,000 at
March 31, 2000, to $1,658,000 at March 31, 2001,  which was the direct result of
the remaining construction costs for the new branch office in Parkersburg.

Total  liabilities  increased  $2,273,000 from $22,339,000 at March 31, 2000, to
$24,612,000  at March 31, 2001.  The increase was  attributable  to a $2,985,000
increase in deposits from $21,054,000 at March 31, 2000, to $24,039,000 at March
31, 2001,  which is the direct result of the opening of the new branch office in
Parkersburg  and  the  increase  in  interest  rates  offered  by  the  Bank  on
certificates of deposit.  Deferred income tax liability  increased from $200,000
at March 31, 2000,  to $419,000 at March 31,  2001,  which was the result of the
tax effect on the increase in the market value of available-for-sale  securities
during the year ended March 31, 2001.  These increases were offset by the payoff
of the FHLB advance of $900,000 which existed as of March 31, 2000.

Stockholders'  equity  decreased  $289,000  to  $9,135,000  at March  31,  2001,
compared to $9,424,000 at March 31, 2000. The decrease was  attributable  to the
purchase  of  Treasury  shares in the  amount of  $784,000  and the  payment  of
dividends  in the  amount  of  $184,000,  offset  by  net  income  of  $228,000,
allocation of shares in the ESOP in the amount of $58,000,  vesting of shares in
the RSP in the amount of $18,000,  and the  increase of $376,000 in  accumulated
other comprehensive income from $421,000 as of March 31, 2000, to $797,000 as of
March  31,  2001  as  a  result  of  the   increase  in  the  market   value  of
available-for-sale securities.

                                      -10-
<PAGE>

Comparison of the Results of  Operations  for the Years Ended March 31, 2001 and
2000

Net  Income.  Net income  decreased  by  $38,000,  or 14.5%,  from net income of
$266,000  for the year ended March 31,  2000,  to net income of $228,000 for the
year ended March 31, 2001.

Interest and Dividend Income. Interest and dividend income increased $39,000, or
1.7%,  to $2,323,000  for the year ended March 31, 2001,  compared to $2,284,000
for the year ended March 31, 2000. The increase in interest and dividend  income
was the  result of the  $95,000  increase  in  taxable  interest  on loans  from
$1,966,000 as of March 31, 2000,  to $2,061,000 as of March 31, 2000,  which was
due to an increase in the average  balance of loans of $1.1 million,  from $25.0
million  for the year ended  March 31,  2000,  to $26.1  million as of March 31,
2001.  This increase was offset by the $60,000  decrease in taxable  interest on
investments  from  $234,000  as of March 31,  2000,  to $174,000 as of March 31,
2001,  which was the result of a decrease in the average  balance of investments
of $1.0 million  from $5.2  million for the year ended March 31,  2000,  to $4.2
million for the year ended March 31, 2001.

Interest Expense.  Interest expense increased  $97,000,  or 10.4%, from $933,000
for the year ended March 31, 2000,  to  $1,030,000  for the year ended March 31,
2001. An increase in the average  balance of  interest-bearing  deposits of $1.1
million to $22.2 million from $21.1  million and the 25 basis point  increase in
the cost of funds from 4.17% for the year ended March 31,  2000,  as compared to
4.42% for the year ended March 31,  2001,  resulted in the  increase in interest
expense on deposits of $102,000,  or 11.6%. Interest expense on the FHLB advance
decreased  $5,000,  or 9.8%, from $51,000 as of March 31, 2000, to $46,000 as of
March 31,  2001.  The  decrease  was the direct  result of the  decrease  in the
average  balance  of the FHLB  advance in the  amount of  $219,000  offset by an
increase in the average  cost of the FHLB  advance of 94 basis points from 5.39%
at March 31, 2000, to 6.33% at March 31, 2001.

Net Interest  Income.  Net interest  income  decreased  $58,000,  or 4.3%,  from
$1,352,000  for the year ended March 31, 2000, to $1,294,000  for the year ended
March 31,  2001.  The  decrease is  primarily  attributable  to the  increase in
interest  expense  offset by the increase in interest and  dividend  income,  as
previously discussed.

Provision For Loan Losses. The provision for loan losses decreased $3,000,  from
$4,000 for the year ended March 31, 2000, to $1,000 for the year ended March 31,
2001, based on management's analysis of the reserve's adequacy.  The reserve for
loan losses was $175,000 at March 31, 2000, as compared to $176,000 at March 31,
2001.

Noninterest  Income.  Noninterest  income  increased by $9,000,  or 25.8%,  from
$35,000 for the year ended March 31,  2000,  to $44,000 for the year ended March
31, 2001. The increase is primarily  attributable  to service charge income from
the new branch office's deposit accounts.

Noninterest  Expense.  Noninterest  expense increased by $50,000,  or 5.1%, from
$982,000 for the year ended March 31,  2000,  to  $1,032,000  for the year ended
March 31, 2001.  Compensation  and employee  benefits  increased by $24,000,  or
4.5%,  from $549,000 for the year ended March 31, 2000, to $573,000 for the year
ended March 31, 2001.  Compensation expense increased $86,000 as a direct result
of an increase in the number of employees associated with the opening of the new
branch office. This increase was offset by the decrease in compensation costs of
$54,000  associated  with the RSP,  which was the direct result of  participants
electing  to defer  vesting  of RSP shares as of July 1, 2000 until a date to be
determined by the Board of Directors.  Occupancy  increased  $34,000,  or 68.1%,
from  $49,000 for the year ended March 31,  2000,  to $83,000 for the year ended
March 31, 2001.  Furniture and equipment  expense increased  $13,000,  or 35.4%,
from  $38,000  as of March 31,  2000,  to  $51,000  as of March 31,  2001.  Both
occupancy and furniture  and equipment  expense  increased as a direct result of
depreciation  of office  properties  and  equipment  at the new  branch  office.
Service bureau expense  increased  $20,000,  or 29.4%, from $69,000 for the year
ended  March 31,  2000,  to $89,000 for the year ended March 31, 2001 due to the
increase in activity

                                      -11-
<PAGE>

from the  opening of the new  branch  office and the  related  service  bureau's
charges on a per customer  account basis.  Supervisory  examination,  audit, and
legal expense decreased  $17,000,  or 24.7%, to $53,000 for the year ended March
31, 2001,  from $70,000 for the year ended March 31, 2000,  due to a decrease in
professional  services for  compliance  with  regulatory  requirements.  Loss on
securities  available-for-sale  was $23,000  for the year ended March 31,  2000,
which did not occur during the year ended March 31, 2001.

Income Taxes.  Income tax expense decreased by $58,000,  or 42.9%, from $135,000
for the year ended March 31, 2000, to $77,000 for the year ended March 31, 2001.
The decrease is due to a decrease in pre-tax income.

Liquidity and Capital Resources

The Bank's sources of funds are deposits,  amortization  and prepayment of loans
and mortgage-backed  securities,  maturities of investment securities, and funds
provided from  operations.  While  scheduled  loan  repayments  are a relatively
predictable  source of funds,  deposit  flows and loan  prepayments  are greatly
influenced by general interest rates, economic conditions, and competition.  The
Bank uses its sources of funds to fund existing and future 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, 2001,
totaled  $362,000,  a decrease of $62,000 from $424,000 for the year ended March
31, 2000. Net cash provided by operating  activities was primarily  attributable
to net  income of  $228,000  for the year  ended  March 31,  2001,  adjusted  by
depreciation,  amortization,  and accretion in the amount of $78,000,  change in
deferred  federal income tax liability of $14,000,  amortization of the ESOP and
RSP in the amount of $58,000 and $18,000,  respectively,  offset by the decrease
in accrued interest payable and other liabilities in the amount of $31,000.

Net cash used in investing activities for the year ended March 31, 2001, totaled
$743,000,  a decrease of $776,000 from  $1,519,000  for the year ended March 31,
2000. Net cash used in investing  activities was attributable  $1,609,000 in net
loan  originations  and  $366,000  used in purchases  of office  properties  and
equipment, offset by $1,232,000 provided by the maturity and call of investments
and repayments on mortgage-backed securities.

Net cash  provided by  financing  activities  for the year ended March 31, 2001,
totaled  $1,117,000,  as compared to net cash used in  financing  activities  of
$390,000  for the year ended March 31,  2000.  Net cash  provided  by  financing
activities  was  attributable  to the net  increase in customer  deposits in the
amount of $2,985,000, offset by the purchase of Treasury shares in the amount of
$784,000,  payment of dividends in the amount of $184,000, and the net repayment
of the FHLB advance of $900,000.

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,
2001,  total  $7,539,000.  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,  2001.  See  Note 7 of the  Notes  to  Consolidated
Financial Statements.

                                      -12-
<PAGE>

Impact of Inflation and Changing Prices

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

Recent Accounting Pronouncements

In June 1998, the Financial Accounting Standards Board ("FASB") issued Statement
of Financial  Accounting  Standards ("SFAS") No. 133, "Accounting for Derivative
Instruments  and  Hedging  Activities."  SFAS No. 133  provides  accounting  and
reporting  standards for derivatives  instruments,  including certain derivative
instruments  embedded in other contracts,  by requiring the recognition of those
items as assets or liabilities in the statement of financial position,  recorded
at fair value.  SFAS No. 133  precludes a  held-to-maturity  security from being
designated as a hedge item.  However, at the date of initial application of SFAS
No. 133, an entity is permitted to transfer any  held-to-maturity  security into
the  available-for-sale  or trading  categories.  The unrealized holding gain or
loss on such  transferred  securities  shall  be  reported  consistent  with the
requirements  of SFAS No. 115,  "Accounting  for Certain  Investment in Debt and
Equity  Securities."  Such transfers do not raise an issue regarding an entity's
intent to hold other debt  securities  to maturity  in the future.  The FASB has
also issued SFAS No. 137,  "Accounting  for Derivative  Instruments  and Hedging
Activities-Deferral  of the Effective  Date of FASB Statement No. 133." SFAS No.
137 defers the  effective  date of SFAS No. 133 to be  effective  for all fiscal
quarters of all fiscal years beginning after June 15, 2000. The adoption of SFAS
No. 133 did not have a material impact on the Company.

The FASB issued SFAS No. 138, "Accounting for Certain Derivative Instruments and
Certain Hedging  Activities."  SFAS No. 138 addresses a limited number of issues
causing implementation difficulties for numerous entities that have adopted SFAS
No. 133 and amends the accounting  and reporting  standards for SFAS No. 133 for
certain  derivative  instruments and certain hedging  activities as indicated in
the  statement.  The effective  date of this  statement is  concurrent  with the
effective  date of SFAS.  No. 133  (deferred by SFAS No. 137),  which is for all
fiscal quarters  beginning after June 15, 2000. The adoption of SFAS No. 138 did
not have a material impact on the Company.

FASB recently  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 exchange.  This statement is
generally  effective  for activity  occurring  after March 31, 2001.  Earlier or
retroactive application of this statement is not permitted.  Management believes
that the  adoption  of SFAS No.  140 will  not  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, 2001 and 2000,  and the related
consolidated  statements of income,  changes in shareholders'  equity,  and cash
flows for each of the years  then  ended.  These  financial  statements  are the
responsibility of the Company's management.  Our responsibility is to express an
opinion on these financial statements based on our audits.

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

In our opinion, the consolidated  financial statements referred to above present
fairly,  in all  material  respects,  the  financial  position  of  Sistersville
Bancorp,  Inc. and Subsidiary at March 31, 2001 and 2000,  and the  consolidated
results of its  operations  and cash flows for each of the years then ended,  in
conformity with generally accepted accounting principles.


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


Wheeling, West Virginia
April 20, 2001


<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>
                                      -14-
<PAGE>

                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>

                                                                         March 31,
                                                                   2001            2000
                                                              ------------    ------------
<S>                                                         <C>             <C>
                                     ASSETS

Cash and Cash Equivalents
       Cash and amounts due from banks                        $    281,797    $    141,439
       Interest - bearing deposits with other institutions         843,259         247,632
                                                              ------------    ------------
            Total cash and cash equivalents                      1,125,056         389,071
                                                              ------------    ------------
Investment Securities
       Securities held-to-maturity (fair value of $176,924
         and $239,716, respectively)                               173,527         237,873
       Securities available-for-sale                             3,292,498       3,879,917
                                                              ------------    ------------
            Total investment securities                          3,466,025       4,117,790
                                                              ------------    ------------
Loans receivable, (net of allowance for loan losses
  of $176,000 and $174,550, respectively)                       26,996,408      25,389,113
Office properties and equipment, net                             1,658,292       1,368,620
Accrued interest receivable (net of reserve                        197,518         215,451
  for uncollected interest of $-0- for 2001 and 2000)
Other assets                                                       303,657         282,370
                                                              ------------    ------------
            TOTAL ASSETS                                      $ 33,746,956    $ 31,762,415
                                                              ============    ============

                      LIABILITIES AND STOCKHOLDERS' EQUITY

                                  LIABILITIES
       Deposits                                               $ 24,038,581    $ 21,053,607
       Federal Home Loan Bank advance                                    -         900,000
       Deferred income taxes                                       419,201         199,796
       Accrued interest payable and other liabilities              154,115         185,425
                                                              ------------    ------------
            Total liabilities                                   24,611,897      22,338,828
                                                              ------------    ------------

                              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;
             476,166 outstanding at March 31, 2001, and
             538,739 outstanding at March 31, 2000                  66,143          66,143
       Additional paid - in capital                              6,187,187       6,182,238
       Treasury Stock (185,262 shares at March 31, 2001;        (2,433,425)     (1,649,297)
          122,689 shares at March 31, 2000)
       Retained Earnings - substantially restricted              5,026,672       4,983,212
       Accumulated other comprehensive income                      796,659         420,350
       Unearned Employee Stock Ownership Plan shares (ESOP)       (313,780)       (366,694)
       Unearned Restricted Stock Plan shares (RSP)                (194,397)       (212,365)
                                                              ------------    ------------
            Total stockholders' equity                           9,135,059       9,423,587
                                                              ------------    ------------

            TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY        $ 33,746,956    $ 31,762,415
                                                              ============    ============
</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,
                                                                    2001         2000
                                                                 ----------   ----------
<S>                                                            <C>          <C>
INTEREST AND DIVIDEND INCOME
     Taxable interest on loans                                   $2,061,359   $1,965,773
     Taxable interest on investments                                173,811      234,036
     Nontaxable interest on loans                                    16,556       15,859
     Nontaxable interest on investments                              41,097       41,116
     Dividends on Federal Home Loan Bank stock                       17,393       15,794
     Dividends on Federal Home Loan Mortgage Corporation stock       13,166       11,581
                                                                 ----------   ----------
              Total interest and dividend income                  2,323,382    2,284,159
                                                                 ----------   ----------
INTEREST EXPENSE
     Deposits                                                       983,887      881,644
     Federal Home Loan Bank advances                                 45,662       50,633
                                                                 ----------   ----------
              Total interest expense                              1,029,549      932,277
                                                                 ----------   ----------

              NET INTEREST INCOME                                 1,293,833    1,351,882

PROVISION FOR LOAN LOSSES                                             1,450        4,145
                                                                 ----------   ----------
              NET INTEREST INCOME AFTER
                PROVISION FOR LOAN LOSSES                         1,292,383    1,347,737
                                                                 ----------   ----------
NONINTEREST INCOME
     Service charges                                                 40,707       32,664
     Other income                                                     3,371        2,374
                                                                 ----------   ----------
              Total noninterest income                               44,078       35,038
                                                                 ----------   ----------
NONINTEREST EXPENSE
     Compensation and employee benefits                             573,203      548,569
     Occupancy                                                       82,711       49,210
     Furniture and equipment expense                                 51,513       38,041
     Deposit insurance premiums                                       4,359       10,430
     Supervisory examination, audit and legal                        52,755       70,064
     Advertising  and public relations                               28,199       34,651
     Service bureau expense                                          88,795       68,622
     Franchise, payroll and other taxes                              62,613       60,531
     Other expenses                                                  87,711       79,073
     Loss on securities available-for-sale                                -       22,579
                                                                 ----------   ----------
              Total noninterest expense                           1,031,859      981,770
                                                                 ----------   ----------

              INCOME BEFORE INCOME TAXES                            304,602      401,005

INCOME TAXES                                                         77,050      135,022
                                                                 ----------   ----------
              NET INCOME                                         $  227,552   $  265,983
                                                                 ==========   ==========
EARNINGS PER SHARE
     Basic                                                       $     0.48   $     0.54
                                                                 ==========   ==========
     Diluted                                                     $     0.47   $     0.53
                                                                 ==========   ==========
AVERAGE SHARES OUTSTANDING
     Basic                                                          473,408      490,713
                                                                 ==========   ==========
     Diluted                                                        482,982      503,471
                                                                 ==========   ==========
</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,
                                                             2001        2000
                                                          ---------   ---------

NET INCOME                                                $ 227,552   $ 265,983
                                                          ---------   ---------

OTHER COMPREHENSIVE LOSS, NET OF TAX
       Unrealized loss on securities:
            Unrealized holding gain (loss)                  376,309    (280,177)
            Reclassification adjustment for loss (gain)
              included in net income                           --        14,807
                                                          ---------   ---------
                     Other comprehensive loss               376,309    (265,370)
                                                          ---------   ---------

                     COMPREHENSIVE INCOME                 $ 603,861   $     613
                                                          =========   =========

                  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                                              Total
                                             Additional   Earnings-     Compre-     Unearned    Unearned                   Stock
                      Preferred    Common     Paid In   Substantially   hensive    Shares in    Shares in   Treasury       holders'
                        Stock      Stock      Capital    Restricted     Income       ESOP         RSP        Stock         Equity
                      --------   --------  -----------  -----------  -----------  -----------  ----------  -----------  -----------
<S>                  <C>        <C>       <C>          <C>          <C>          <C>          <C>         <C>          <C>
BALANCE,
  MARCH 31, 1999      $      -   $ 66,143  $ 6,178,859  $ 4,890,911  $   685,720  $  (419,074) $ (284,217) $(1,326,770) $ 9,791,572

2000 net income              -          -            -      265,983            -            -           -            -      265,983

Accrued compensation
  expense - ESOP             -          -        3,379            -            -       52,380           -            -       55,759

Vesting of RSP shares        -          -            -            -            -            -      71,852            -       71,852

Other comprehensive
  income (loss),
  net of tax                 -          -            -            -     (265,370)           -           -            -     (265,370)

Cash dividends
  declared
  ($.35 per share)           -          -            -     (173,682)           -            -           -            -     (173,682)

Purchase of
  Treasury Stock             -          -            -            -            -            -           -     (322,527)    (322,527)
                      --------   --------  -----------  -----------  -----------  -----------  ----------  -----------  -----------

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
                      ========   ========  ===========  ===========  ===========  ===========  ==========  ===========  ===========
</TABLE>

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

                                      -18-
<PAGE>

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

<TABLE>
<CAPTION>
                                                                              Year Ended March 31,
                                                                              2001           2000
                                                                          -----------    -----------
<S>                                                                     <C>            <C>
OPERATING ACTIVITIES
       Net income                                                         $   227,552    $   265,983
       Adjustments to reconcile net income to net cash
           provided by operating activities:
            Depreciation, amortization and accretion, net                      78,105         50,468
            Loss (gain) on sale of available-for-sale securities                    -         22,579
            Provision for loan losses                                           1,450          4,145
            Deferred federal income taxes                                      13,538        (11,400)
            ESOP amortization                                                  57,863         55,759
            RSP amortization                                                   17,968         71,852
            Decrease (increase) in accrued interest receivable
              and other assets                                                 (3,354)       (31,208)
            Increase (decrease) in accrued interest payable
              and other liabilities                                           (31,310)        (4,228)
                                                                          -----------    -----------
                     Net cash provided by operating activities                361,812        423,950
                                                                          -----------    -----------
INVESTING ACTIVITIES
       Purchase of available-for-sale securities                                    -     (1,049,938)
       Proceeds from sale of available-for-sale securities                          -        382,892
       Proceeds from maturity of available-for-sale securities              1,050,000        900,000
       Principal collected on mortgage-backed securities                      181,767        246,844
       Net increase in loans                                               (1,608,745)    (1,073,317)
       Purchases of office properties and equipment                          (365,603)      (925,054)
                                                                          -----------    -----------
                     Net cash used in investing activities                   (742,581)    (1,518,573)
                                                                          -----------    -----------
FINANCING ACTIVITIES
       Net increase in deposits                                             2,984,974        206,104
       Federal Home Loan Bank advance                                        (900,000)      (100,000)
       Dividends Paid                                                        (184,092)      (173,682)
       Purchase of Treasury Stock                                            (784,128)      (322,527)
                                                                          -----------    -----------
                     Net cash provided by(used in) financing activities     1,116,754       (390,105)
                                                                          -----------    -----------
                     Increase (decrease) in cash and cash equivalents         735,985     (1,484,728)

CASH AND CASH EQUIVALENTS,
    BEGINNING OF PERIOD                                                       389,071      1,873,799
                                                                          -----------    -----------
CASH AND CASH EQUIVALENTS,
    END OF PERIOD                                                         $ 1,125,056    $   389,071
                                                                          ===========    ===========
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION
       Cash paid during the period for:
            Interest on deposits and advances                             $ 1,029,820    $   934,274
            Income taxes                                                      107,515        249,040

</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, 2001 AND 2000


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

      Nature of Operations - The Company provides savings and financing services
      primarily  to  individuals  through  its  wholly-owned  subsidiary,  First
      Federal Savings Bank located in Sistersville, West Virginia 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 generally accepted accounting  principles requires management to make
      estimates and assumptions  that affect the reported  amounts of assets and
      liabilities,  disclosures of contingent assets and liabilities at the date
      of the  financial  statements,  and the  reported  amounts of revenues and
      expenses  during the reporting  period.  Actual  results could differ from
      those estimates.

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

                                      -20-
<PAGE>

                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 2001 AND 2000


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 shareholders' equity until
      realized.   Securities  held  for  indefinite   periods  of  time  include
      securities  that may be sold to meet  liquidity  needs or in  response  to
      significant  changes in interest rates or prepayment  risks as part of the
      Company's overall asset/liability management strategy. Realized securities
      gains and losses are computed using the specific identification method.

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

      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, 2001 AND 2000


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 2001  fiscal  year is $.45 and 2000
      fiscal  year is $.50,  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, 2001, and
      for March 31, 2000,  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, 2001 AND 2000


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

<TABLE>
<CAPTION>
                                                                                         December 31,
                                                                                    2001               2000
                                                                                ------------       ------------
<S>                                                                            <C>                <C>
      Denominator:
           Denominator for basic earnings per share-weighted-
             average shares                                                          473,408            490,713
           Employee stock options (antidilutive)                                           -                  -
           Unvested RSP shares                                                         9,574             12,758
                                                                                ------------       ------------

           Denominator for diluted earnings per share-adjusted
             weighted-average assumed conversions                                    482,982            503,471
                                                                                ============       ============
</TABLE>

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

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


NOTE 2 - STOCKHOLDERS' EQUITY

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

<TABLE>
<CAPTION>
                                                                                 Preferred         Common
                                                                                    Stock             Stock
                                                                                -------------     ------------
<S>                                                                            <C>               <C>
           Shares outstanding, March 31, 1999                                              -           567,093
              Shares repurchased                                                           -           (28,354)
                                                                                -------------     ------------
           Shares outstanding, March 31, 2000                                              -           538,739
              Shares repurchased                                                           -           (62,573)
                                                                                -------------     ------------
           Shares outstanding, March 31, 2001                                              -           476,166
                                                                                =============     ============
</TABLE>
                                      -23-
<PAGE>

                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 2001 AND 2000


NOTE 3 - INVESTMENT SECURITIES

      The  carrying  amounts and fair  values of  investment  securities  are as
follows at March 31, 2001 and 2000:

<TABLE>
<CAPTION>
                                                          2001
                                     --------------------------------------------------
                                                      Gross      Gross       Estimated
                                      Amortized   Unrealized   Unrealized      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>

<TABLE>
<CAPTION>
                                                           2000
                                     --------------------------------------------------
                                                      Gross      Gross       Estimated
                                      Amortized   Unrealized   Unrealized      Fair
                                          Cost        Gains      Losses        Value
                                     -----------  ----------   ----------    ----------
<S>                                <C>          <C>          <C>           <C>
Securities available-for-sale:
   Federal Home Loan Mortgage
    Corporation stock                $   18,714   $  818,631   $        -    $  837,345
   Municipal securities                 906,238            -      (96,015)      810,223
   U.S. agency obligations            1,999,942            -      (88,593)    1,911,349
   Mortgage-backed securities-
     GNMA                               320,571          429            -       321,000
                                     ----------   ----------   ----------    ----------
          Total available-for-sale    3,245,465      819,060     (184,608)    3,879,917

Securities to be held-to-maturity:
   Mortgage-backed securities-
    GNMA and FHLMC                      237,873        1,869          (26)      239,716
                                     ----------   ----------   ----------    ----------
          Total                      $3,483,338   $  820,929   $ (184,634)   $4,119,633
                                     ==========   ==========   ==========    ==========
</TABLE>

                                      -24-
<PAGE>

                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 2001 AND 2000


NOTE 3 - INVESTMENT SECURITIES (CONTINUED)

      The amortized and estimated market value of investment securities at March
      31, 2001 and 2000, 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, 2001
                                                  ------------------------------------------------------------
                                                           Securities                      Securities
                                                       Available-for-Sale               Held-to-Maturity
                                                  ----------------------------    ----------------------------
                                                                    Estimated                       Estimated
                                                    Amortized         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>

<TABLE>
<CAPTION>
                                                                         March 31, 2000
                                                  -----------------------------------------------------------------
                                                           Securities                      Securities
                                                       Available-for-Sale               Held-to-Maturity
                                                  ----------------------------    ----------------------------
                                                                    Estimated                       Estimated
                                                    Amortized         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                           900,000        860,725              -                -
         Due after five years
           through ten years                            599,942        573,529              -                -
         Due after ten years                          1,406,238      1,287,318              -                -
         Mortgage-backed securities                     320,571        321,000        237,873          239,716
         Equity securities                               18,714        837,345              -                -
                                                  -------------   ------------    -----------    -------------
                Total                             $   3,245,465   $  3,879,917    $   237,873    $     239,716
                                                  =============   ============    ===========    =============
</TABLE>


      There were no transfers of securities  between  classifications in 2001 or
2000.

                                      -25-
<PAGE>

                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 2001 AND 2000


NOTE 4 - LOANS AND ALLOWANCE FOR POSSIBLE LOAN LOSSES

      Loans outstanding at March 31 are as follows:

<TABLE>
<CAPTION>
                                                                               2001                2000
                                                                         ---------------    ---------------
<S>                                                                    <C>                <C>
          Mortgage Loans:
             Construction                                                $       934,775    $       500,000
             1-4 family                                                       26,182,770         24,540,264
          Consumer Loans:
             Automobiles                                                         665,506            568,989
             Savings account                                                     169,336             91,269
             Revolving loans                                                      97,397                  -
             Other                                                                29,919              9,672
          Commercial                                                             294,366            275,714
                                                                         ---------------    ---------------
                   Total                                                      28,374,069         25,985,908
          Less:
             Allowance for loan losses                                           176,000            174,550
             Undisbursed funds                                                 1,161,819            381,015
             Net deferred loan fees                                               39,842             41,230
                                                                         ---------------    ---------------
                   Loans receivable, net                                 $    26,996,408    $    25,389,113
                                                                         ===============    ===============
</TABLE>

      Activity  in the  allowance  for loan losses for the years ended March 31,
2001 and 2000, is summarized as follows:

<TABLE>
<CAPTION>
                                                                              2001                2000
                                                                         ---------------    ---------------
<S>                                                                    <C>                <C>
          Balance, beginning of year                                     $       174,550    $       172,250
          Add provisions charged to operations                                     1,450              4,145
                                                                         ---------------    ---------------
                                                                                 176,000            176,395
          Less loans charged off                                                       -              1,845
                                                                         ---------------    ---------------
          Balance, end of period                                         $       176,000    $       174,550
                                                                         ===============    ===============
</TABLE>

      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, 2001 and 2000,  were
      $10,952 and $25,437, respectively.

                                      -26-

<PAGE>

                           SISTERSVILLE BANCORP, INC.
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 2001 AND 2000


NOTE 5 - OFFICE PROPERTIES AND EQUIPMENT

      Properties and equipment at March 31 are summarized as follows:

<TABLE>
<CAPTION>
                                                                               2001                    2000
                                                                         ---------------    ----------------------
<S>                                                                    <C>                <C>
          Land                                                           $       489,255    $       489,255
          Office buildings and improvements                                    1,228,605            940,782
          Furniture, fixtures, and equipment                                     396,788            319,009
                                                                         ---------------    ---------------
                   Total                                                       2,114,648          1,749,046
          Less accumulated depreciation                                          456,356            380,426
                                                                         ---------------    ---------------
                   Premises and equipment, net                           $     1,658,292    $     1,368,620
                                                                         ===============    ===============
</TABLE>

      Depreciation charged to operations amounted to $75,931 and $44,169 for the
years ended March 31, 2001 and 2000, respectively.


NOTE 6 - DEPOSITS ANALYSIS

      Deposit accounts at March 31 are summarized as follows:

<TABLE>
<CAPTION>
                                                                   2001                          2000
                                                      ---------------------------   -------------------------------
                                                                       Percent of                      Percent of
                                                           Amount      Portfolio        Amount         Portfolio
                                                      --------------   -----------  --------------   --------------
<S>                                                 <C>                   <C>     <C>                    <C>
          Savings accounts                            $    7,949,921        33.1%   $    8,743,878         41.5%
          NOW accounts                                     1,773,377         7.4%        1,518,550          7.2%
          Money market accounts                            1,737,309         7.2%          976,096          4.7%
                                                      --------------   ----------   --------------   -----------
                                                          11,460,607        47.7%       11,238,524         53.4%
                                                      --------------   ----------   --------------   -----------
          Certificates of deposit:
             4.01 - 6.00%                                  7,041,908        29.3%        9,394,373         44.6%
             6.01 - 8.00%                                  5,536,066        23.0%          420,710          2.0%
                                                      --------------   ----------   --------------   -----------
                                                          12,577,974        52.3%        9,815,083         46.6%
                                                      --------------   ----------   --------------   -----------
                   Total                              $   24,038,581       100.0%   $   21,053,607        100.0%
                                                      ==============   ==========   ==============   ===========
</TABLE>
                                      -27-

<PAGE>

                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 2001 AND 2000


NOTE 6 - DEPOSITS ANALYSIS (CONTINUED)

      The scheduled maturities of certificates of deposit at March 31, 2001, are
as follows:

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

          Within one year                                          $   7,538,615
          Due after one year, but within two years                     2,082,271
          Due after two years, but within three years                  1,726,824
          Due after three years                                        1,230,264
                                                                   -------------

                   Total                                           $  12,577,974
                                                                   =============


      Certificates  of  deposit  issued in  denominations  of  $100,000  or more
      amounted to $1,809,256 at March 31, 2001,  and $472,377 at March 31, 2000.
      Deposits in excess of $100,000 are not federally insured.

      Interest expense by deposit category is as follows:

                                                      Year Ended March 31,
                                                      2001              2000
                                                 --------------    -------------

          Savings - passbook                     $      287,598    $     302,203
          NOW and money market                           81,797           70,092
          Time certificates of deposit                  614,492          509,349
                                                 --------------    -------------

                   Total                         $      983,887    $     881,644
                                                 ==============    =============


NOTE 7 - REGULATORY MATTERS

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

                                      -28-
<PAGE>

                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 2001 AND 2000


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, 2001, that the Bank meets all capital  adequacy  requirements to which
      they are subject.

      As of March 31,  2001,  the most  recent  notification  from the Office of
      Thrift  Supervision  categorized the Bank as "well  capitalized" under the
      regulatory  framework for prompt  corrective  action. To be categorized as
      "well capitalized",  the Bank must maintain minimum total risk-based, Tier
      I (core) risk-based,  core, and tangible ratios as set forth in the table.
      There are no conditions or events since the  notification  that management
      believes have changed the institution's category.

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

                                                                 March 31,
                                                             2001        2000
                                                           --------    --------
                                                               (In Thousands)

          Total equity                                     $  8,480    $  8,569

          Accumulated other comprehensive income               (796)       (440)
                                                           --------    --------

                   Tier I (core) and tangible capital         7,684       8,129

          Allowance for loan losses                             176         175
                                                           --------    --------

                   Risk-based capital                      $  7,860    $  8,304
                                                           ========    ========

                                      -29-
<PAGE>

                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 2001 AND 2000


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>
                                                                        2001                      2000
                                                               ----------------------    ----------------------
                                                                  Amount       Ratio        Amount       Ratio
                                                               ----------------------    ----------------------
                                                                   (In Thousands)             (In Thousands)
<S>                                                          <C>             <C>       <C>             <C>
          Total Capital to Risk-Weighted Assets
          -------------------------------------
             Actual                                            $   7,860       44.42%    $   8,304       51.91%
             For capital adequacy purposes                         1,416        8.00%        1,280        8.00%
             To be "well capitalized"                              1,770       10.00%        1,600       10.00%

          Tier I (Core) Capital to Risk-Weighted Assets
          ---------------------------------------------
             Actual                                            $   7,684       43.42%    $   8,129       50.82%
             For capital adequacy purposes                           707        4.00%          640        4.00%
             To be "well capitalized"                              1,062        6.00%        1,000        6.00%

          Tier I (Core) Capital to Adjusted Assets
          ----------------------------------------
             Actual                                            $   7,684       23.20%    $   8,129       26.55%
             For capital adequacy purposes                           994        3.00%          918        3.00%
             To be "well capitalized"                              1,656        5.00%        1,531        5.00%

          Tangible Capital to Adjusted Assets
          -----------------------------------
             Actual                                            $   7,684       23.20%    $   8,129       26.55%
             For capital adequacy purposes                           497        1.50%          459        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, 2001
      and 2000,  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, 2001 AND 2000


NOTE 8 - INCOME TAX (CONTINUED)

      The provisions for income taxes consist of:

<TABLE>
<CAPTION>
                                                                                 Year Ended March 31,
                                                                                2001               2000
                                                                            ------------      ------------
<S>                                                                       <C>               <C>
          Current                                                           $     63,613      $    141,668
          Deferred                                                                13,437            (6,646)
                                                                            ------------      ------------
                   Total                                                    $     77,050      $    135,022
                                                                            ============      ============
</TABLE>

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

<TABLE>
<CAPTION>
                                                                                        March 31,
                                                                                 2001              2000
                                                                            ------------      ------------
<S>                                                                         <C>               <C>
          Deferred loan fees                                                $    (13,066)     $    (14,018)
          Other income and expense recognized in the financial
            statements on the accrual basis, but on the cash basis
            for tax purposes                                                      15,888             9,539
          Bad debt reserve, net                                                  (59,840)          (23,647)
          RSP amortization                                                             -           (11,167)
          Depreciation                                                            17,819            20,324
          Others                                                                  36,719             3,052
                                                                            ------------      ------------
                                                                                  (2,480)          (15,917)
          Unrealized gains on available-for-sale securities                      421,681           215,713
                                                                            ------------      ------------
               Net deferred tax liability                                   $    419,201      $    199,796
                                                                            ============      ============
</TABLE>

      A reconciliation between the amount of reported income tax expense and the
      amount  computed  by applying  the  statutory  federal  income tax rate to
      income before income taxes is as follows:
<TABLE>
<CAPTION>
                                                                                 Year Ended March 31,
                                                                                2001               2000
                                                                            ------------      ------------
<S>                                                                        <C>               <C>
      Tax at statutory rate (34%)                                           $    103,565      $    136,342
          Increase (decrease) in taxes resulting from:
             Nondeductible ESOP compensation                                         826              (282)
             Other, net                                                          (27,341)           (1,038)
                                                                            ------------      ------------
                   Total                                                    $     77,050      $    135,022
                                                                            ============      ============
                   Effective rate                                                  25.3%             33.7%
                                                                            ============      ============
</TABLE>

                                      -31-
<PAGE>

                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 2001 AND 2000


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, 2001 and 2000, was $1,300 and $1,200, 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,  and the  shares  become  outstanding  for
      earnings per share  computations.  Dividends paid on allocated ESOP shares
      are  recorded  as a  reduction  of retained  earnings.  Dividends  paid on
      unallocated ESOP shares are recorded as compensation expense. Compensation
      expense  for the ESOP for the years  ended  March 31,  2001 and 2000,  was
      $53,566 and $55,759, respectively.

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

                                                        2001            2000
                                                     ----------     -----------

          Allocated shares                               17,567          12,276
          Shares committed for allocation                 3,969           3,969
          Shares distributed                                -               -
          Unallocated (noncommitted) shares              31,378          36,669
                                                     ----------     -----------

                   Total ESOP shares                     52,914          52,914
                                                     ==========     ===========
          Fair value of noncommitted shares          $  423,603     $   375,857
                                                     ==========     ===========

                                      -32-
<PAGE>

                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 2001 AND 2000


NOTE 11 - RESTRICTED STOCK PLAN (RSP)

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

      In August, 1998, the Trust purchased,  with funds contributed by the Bank,
      shares  of the  common  stock of  which  23,185  shares  were  awarded  to
      directors and employees,  and 3,272 shares remained unawarded.  Directors,
      officers, and employees who terminate their employment with the Bank shall
      forfeit the right to any shares which were awarded but not earned,  except
      in the event of death, disability,  retirement,  or a change in control of
      the Bank or Company.  The Bank granted a total of 23,185  shares of common
      stock on July 16, 1998, of which 4,637 became immediately vested under the
      plan.  Remaining shares become earned and non-forfeitable over a four-year
      period on each  anniversary date of the award beginning July 16, 1999. The
      RSP shares  purchased in the  conversion  initially  will be excluded from
      stockholders'  equity. The Company recognizes  compensation expense in the
      amount of fair value of the common stock at the grant date, pro rata, over
      the years  during  which the shares are earned and recorded as an addition
      to stockholders'  equity.  In July 2000, the Board of Directors  adopted a
      resolution  to defer  vesting  of plan  shares  to all  plan  participants
      agreeing to said  deferral.  All plan  participants  elected to defer plan
      share  vesting up to a date to be determined by the RSP Committee or Board
      of Directors. Net compensation expense attributable to the RSP amounted to
      $17,969  and  $71,852,  for the  years  ended  March  31,  2001 and  2000,
      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.  The Company  granted  options to purchase  58,000
      shares of common stock. The options are first exercisable over a five-year
      period  beginning  July  16,  1998.  The  stock  options   typically  have
      expiration  terms of ten years.  The per share  exercise  price of a stock
      option  shall  be,  at a  minimum,  equal to the fair  value of a share of
      common stock on the date the option is granted. Proceeds from the exercise
      of the stock  options are credited to common stock for the  aggregate  par
      value and the excess is credited to additional paid-in capital.

                                      -33-
<PAGE>

                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 2001 AND 2000


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. The
      standard  applies to all transactions in which an entity acquires goods or
      services by issuing  equity  instruments  or by incurring  liabilities  in
      amounts  based on the price of the  entity's  common stock or other equity
      instruments.  Statement  No. 123 permits  companies to continue to account
      for  such   transactions   under  Accounting   Principles  Board  No.  25,
      "Accounting for Stock Issued to Employees," but requires disclosure of pro
      forma net income and  earnings per share as if the Company had applied the
      new method.

      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:

<TABLE>
<CAPTION>
                                                                        March 31,       March 31,
                                                                          2001            2000
                                                                     ------------      ------------
<S>                                                                <C>               <C>
          Net income:
                As reported                                          $    227,552      $   265,983
                Pro forma                                            $    189,693      $   194,427

          Basic earnings per share:
                As reported                                          $        .48      $   .54
                Pro forma                                            $        .40      $   .40

          Diluted earnings per share:
                As reported                                          $        .47      $   .53
                Pro forma                                            $        .39      $   .39
</TABLE>

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

<TABLE>
<CAPTION>
                                                                        Shares Under Option
                                                                     -------------------------
                                                                        2001          2000
                                                                     -----------    ----------
<S>                                                                  <C>           <C>
          Outstanding, beginning of year                                  58,000        58,000
          Granted during the period                                            -             -
          Cancelled during the period                                          -             -
          Exercised during the period                                          -             -
                                                                     -----------    ----------
                Outstanding, end of period (option price of
                  $15.8125 per share)                                     58,000        58,000
                                                                     ===========    ==========
</TABLE>
                                      -34-

<PAGE>

                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 2001 AND 2000


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
                                                  ------------------------------
                                                        2001            2000
                                                  -------------    -------------
          Commitments to originate loans:
              Fixed rate                          $     571,000    $     397,000
          Loans in process                            1,161,819          381,000
                                                  -------------    -------------
                Total                             $   1,732,819    $     778,000
                                                  =============    =============

      The  range of  interest  rates on fixed  rate  residential  mortgage  loan
      commitments was 7.25% to 8.65% at March 31, 2001.

      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, 2001 AND 2000


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, 2001                   March 31, 2000
                                             -------------------------------   ------------------------------
                                                Carrying        Estimated         Carrying       Estimated
                                                Amount          Fair Value        Amount         Fair Value
                                             -------------     -------------   --------------   -------------
<S>                                        <C>               <C>             <C>              <C>
         Financial Assets:
            Cash and cash equivalents        $   1,125,000     $   1,125,000   $      389,000   $     389,000
            Securities available-for-sale        3,292,000         3,292,000        3,880,000       3,880,000
            Securities held-to-maturity            174,000           177,000          238,000         240,000
            Loans, net                          26,996,000        27,531,000       25,389,000      24,972,000

         Financial Liabilities:
            Deposits                            24,040,000        24,172,000       21,054,000      21,046,000
</TABLE>

                                      -36-
<PAGE>

                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 2001 AND 2000


NOTE 15 - ADVANCES FROM FEDERAL HOME LOAN BANK

      The Bank  obtained an advance  from the  Federal  Home Loan Bank (FHLB) on
      February 22, 2000, with a maturity date of September 22, 2000. The advance
      renewed and maintains a new maturity date of September 22, 2001.  Interest
      payments are payable monthly on the  outstanding  principal  balance.  The
      advance is a variable-rate obligation.

      As of March 31, 2001, the Bank had no amount outstanding from the FHLB. As
      of  March  31,  2000,  the Bank  maintained  various  assets  with a total
      collateral   value  of  $20,689,000  to  secure  the  amount  of  $900,000
      outstanding.


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.

                                                    2001             2000
                                                -------------    ------------

         Before-tax amount                      $      582,176   $    (412,993)
         Tax effect                                   (205,867)        147,623
                                                --------------   -------------
               Net-of-tax amount                $      376,309   $    (265,370)
                                                ==============   =============

                                      -37-
<PAGE>

                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 2001 AND 2000


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:

                                  BALANCE SHEET
                             MARCH 31, 2001 AND 2000
<TABLE>
<CAPTION>
                                                                                   2001               2000
                                                                            ---------------     --------------
<S>                                                                       <C>                 <C>
ASSETS
      Deposits with Subsidiary Bank                                         $       814,891     $      240,260
      Investment in Subsidiary Bank                                               8,480,487          8,569,117
      Investment securities available-for-sale                                            -            770,363
      Receivable from Subsidiary                                                     43,312             41,220
      Other assets                                                                   21,572             52,702
                                                                            ---------------     --------------

                 TOTAL ASSETS                                               $     9,360,262     $    9,673,662
                                                                            ===============     ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
      Payable from Subsidiary                                               $       194,397     $      212,365
      Other liabilities                                                              30,806             37,711
      Shareholders' equity                                                        9,135,059          9,423,586
                                                                            ---------------     --------------
                 TOTAL LIABILITIES AND
                  STOCKHOLDERS' EQUITY                                      $     9,360,262     $    9,673,662
                                                                            ===============     ==============

</TABLE>

                               STATEMENT OF INCOME
                       YEAR ENDED MARCH 31, 2001 AND 2000
<TABLE>
<CAPTION>
                                                                                   2001               2000
                                                                            --------------      --------------
<S>                                                                       <C>                 <C>
INCOME
      Interest                                                              $        75,592     $       83,385

OPERATING EXPENSES                                                                   38,217             52,196
                                                                            ---------------     --------------
                 Income before income tax and equity
                   in undistributed income of Subsidiary                             37,375             31,189

INCOME TAX                                                                          (14,443)           (12,491)

EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARY                                        204,620            247,285
                                                                            ---------------     --------------
                 NET INCOME                                                 $       227,552     $      265,983
                                                                            ===============     ==============
</TABLE>

                                      -38-
<PAGE>

                    SISTERSVILLE BANCORP, INC. AND SUBSIDIARY
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                             MARCH 31, 2001 AND 2000


NOTE 17 - CONDENSED PARENT COMPANY FINANCIAL STATEMENTS (CONTINUED)

                             STATEMENT OF CASH FLOWS
                       YEAR ENDED MARCH 31, 2001 AND 2000

<TABLE>
<CAPTION>
                                                                                  2001               2000
                                                                            --------------      -------------
<S>                                                                       <C>                 <C>
OPERATING ACTIVITIES
      Net income                                                            $       227,552     $      265,983
      Adjustments to reconcile net income to net cash
        provided by operating activities:
         Undistributed earnings of Subsidiary                                      (204,620)          (247,285)
         Dividend received from Subsidiary                                          650,000            325,000
         Investment amortization/accretion, net                                           -                241
         ESOP amortization                                                           57,863             55,759
         RSP amortization                                                            17,968             71,852
         (Increase) decrease in other assets                                         29,038             14,880
         Increase (decrease) in other liabilities                                   (34,950)           (64,976)
                                                                            ---------------     --------------
                 Net cash provided by operating activities                          742,851            421,454
                                                                            ---------------     --------------
INVESTING ACTIVITIES
      Investment purchases                                                                -           (450,000)
      Investment maturities and calls                                               800,000            500,000
                                                                            ---------------     --------------
                 Net cash provided by investing activities                          800,000             50,000
                                                                            ---------------     --------------
FINANCING ACTIVITIES
      Purchase of treasury stock                                                   (784,128)          (322,527)
      Dividends paid                                                               (184,092)          (173,683)
                                                                            ---------------     --------------
                 Net cash used in financing activities                             (968,220)          (496,210)
                                                                            ---------------     --------------
                 INCREASE (DECREASE) IN CASH
                  AND CASH EQUIVALENTS                                              574,631            (24,756)

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR                                        240,260            265,016
                                                                            ---------------     --------------
CASH AND CASH EQUIVALENTS, END OF YEAR                                      $       814,891     $      240,260
                                                                            ===============     ==============
SUPPLEMENTAL DISCLOSURES
      Income tax payments                                                   $         8,515     $       31,200

</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
      ------------------

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


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

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


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

      Stanley M. Kiser, President & CEO
      Cynthia R. Carson, Vice-President & Corporate Secretary
      Shelley R. Maxwell, Treasurer
      P. Jane Fuchs, Cashier
      Robert E. Coen, Branch Manager
      Steven R. Reed, Assistant Branch Manager


      Sistersville  Bancorp,  Inc.'s Annual Report on Form 10-KSB for the fiscal
      year ended  March 31,  2001,  as filed with the  Securities  and  Exchange
      Commission,  is  available  without  charge to  shareholders  upon written
      request.  The 2001 Annual Meeting of Stockholders will be held on July 12,
      2001,  at 9:00 A.M., at the offices of First  Federal  Savings  Bank,  726
      Wells Street, Sistersville, West Virginia.

                                      -40-