Consumers Bancorp Inc. Reports Increases in Second Quarter and Six Month Fiscal Earnings.

Business Editors

MINERVA, Ohio--(BUSINESS WIRE)--Jan. 29, 2003

(OTCBB:CBKM) Consumers Bancorp Inc. today reported fiscal second quarter earnings per share of $.28 an increase of 12% compared to $.25 for the same period ending December 31, 2001. Net income for the quarter was $595 thousand up 10.2% from $540 thousand reported for the same quarter a year ago. Return on average assets (ROA) and equity (ROE) for the second quarter was 1.29% and 14.08%, respectively. This compares to an ROA of 1.16% and ROE of 14.31%, for the second quarter 2001.

For the six months ended December 31, 2002, net income was $1.237 million, an increase of 16.4% compared to $1.063 million last year. Year to date net income per share was $.58 increasing 18.4% from $.49 for the prior year to date. Year to date ROA and ROE were 1.34% and 14.89%, respectively as compared to 1.16% and 14.30%, respectively for the prior year.

Consumers' net interest income decreased $108 thousand over the prior year's quarter results, while increasing $48 thousand over the prior year's six months results. The decline in interest rates in the fourth quarter 2002 caused the net interest margin to be lower at 5.41 percent compared to 5.64 percent in the previous quarter ended September 30, 2002 and 5.59 percent for the quarter ending December 31, 2001. The net interest margin remained stable at 5.53% for the six-month period compared to 5.52% for the prior six-month period ended December 31, 2001.

Increases in other income for the second quarter and six months reflected the growth of deposit service charge income. Other income increased by $129 thousand and $267 thousand for the quarter and six-month periods ended December 31, 2002 as compared to the same periods in 2001. Non-interest expense increased $195 thousand or 11.4% for the quarter and $356 thousand or 10.5% for the six-month period.

Assets at December 31, 2002 totaled $180 million at 2.5 percent decrease from June 30, 2002. Growth in net loans accounted for $359 thousand for the quarter ended December 31, 2002 after declining a $33 thousand from June 30, 2002. Consumers has exited the sub prime consumer lending origination market allowing its remaining $3 million portfolio to amortize to term. Real estate mortgage loans originated within this portfolio comprise $2.1 million of outstanding balance.

The impact of a weaker economy was reflected in increases to non-performing assets from a year ago. Non-performing assets increased to $1.427 million at December 31, 2002 as compared to $927 thousand at December 31, 2001. Real estate mortgage loans represent $1.381 million or 96.8% of the non-performing assets at December 31, 2002. Non-performing assets as a percent of the loan loss allowance represent 83.6% and 59.5% respectively at period end 2002 and 2001. Net charge-offs as a percent of average loans outstanding for the six month period ended December 31 are .28% for 2002 as compared to .73% for the same period ended 2001. At December 31, 2002, the allowance as a percent of outstanding loans increased to 1.36% as compared with 1.16% for the prior year.

The Board of Directors of Consumers Bancorp Inc., declared a $.10 per share cash dividend for shareholders of record on December 11, 2002, payable on December 13, 2002. Total cash dividends paid during calendar year 2002 were $.34 per share, a 9.7% increase, as compared to $.31 per share paid in 2001.

Mark S. Kelly, President and Chief Executive Officer of Consumers Bancorp Inc. and Consumers National Bank, stated "We are pleased with our operating results with the key drivers of our strong revenue growth being low interest rates, core deposit growth, and growth in deposit fees resulting from the bank's institution of an Overdraft Privilege Program. However, many of our customers are affected by challenging economic conditions, resulting in higher non-performing loans. We believe the allowance for loan losses is maintained at an adequate level."

Consumers provides a complete range of banking and other investment services to businesses and consumers through its core operations. Consumers Bancorp is a $180 million holding company with Consumers National Bank offices in Minerva, Salem, Waynesburg, Hanoverton, Carrollton, Alliance, Lisbon, Louisville, and East Canton. Consumers wholly owned title agency, Community Title is located in Carrollton, Ohio. Information about Consumers National Bank can be accessed on the Internet at http://www.consumersbank.com.

The information contained in this press release contains forward-looking statements regarding expected future financial performance which are not historical facts and which involve risks and uncertainties. Actual results and performance could differ materially from those contemplated by these forward-looking statements.

                        Consumers Bancorp Inc.
                  Consolidated Financial Highlights
                          December 31, 2002
(Dollars in thousands, except per share data)

                              Three Month Period   Six Month Period
                                      Ended               Ended
                              December  December  December  December
                                 31,       31,       31,       31,
                                2002      2001      2002      2001
                              ----------------------------------------
EARNINGS:
Net interest income              $2,259    $2,367    $4,625    $4,577
Provision for loan losses            99       312       217       500
Other income                        575       446     1,117       850
Other expenses                    1,910     1,715     3,742     3,386
Income tax expense                  230       246       546       478
Net income                          595       540     1,237     1,063

Net income per share -
    Basic                          $.28      $.25      $.58      $.49

PERFORMANCE RATIOS:
Return on average assets           1.29%     1.16%     1.34%     1.16%
Return on average equity          14.08     14.31     14.89     14.30
Net interest margin FTE            5.41      5.59      5.53      5.52

MARKET DATA:
Book value/common share           $7.81     $6.91
Market close, bid                 22.50     19.33
Period end common shares      2,146,281 2,150,781
Average equity: avg. assets        9.16%     8.10%     8.99%     8.13%
Average common shares         2,146,281 2,150,781 2,146,281 2,150,730

ASSET QUALITY:
Net charge-offs                     $88      $300      $178      $494
Non-performing assets             1,427       927
Allowance for loan losses         1,707     1,558
Net charge-off ratio                .28%      .88%      .28%      .73%
Allowance: loan                    1.36%     1.16%

ENDING BALANCES:
Assets                         $180,014  $184,406
Deposits                        155,034   162,563
Loans, net                      123,421   132,257
Shareholders' Equity             16,767    14,858