NEXITY FINANCIAL CORPORATION REPORTS 2003 EARNINGS

FOR IMMEDIATE RELEASE
March 23, 2004

Birmingham, AL, March 23, 2004 – Nexity Financial Corporation today reported net income for the year ended December 31, 2003 of $4,675,942, or $0.16 per diluted share compared with $1,206,730, or $0.04 per diluted share during the same period in 2002.

Nexity’s results for the year ended December 31, 2003 produced a return on average assets of 0.95% and a return on average equity of 17.21%.

Total assets at December 31, 2003 were $523.4 million and total deposits were $388.0 million. Total loans reached $324.1 million at December 31, 2003. Credit quality measures continue to be very strong. Nonperforming assets were 0.27% of total loans and other real estate owned at December 31, 2003. For the year ended December 31, 2003, net loan charge-offs represented 0.29% of average loans outstanding.

"2003 was a year of tremendous success and achievement for Nexity Financial Corporation. In less than four years from its grand opening on February 22, 2000, Nexity has grown to over one-half billion in total assets and in 2003 generated over a 15% annual return on equity,” said Chairman Greg L. Lee. “Nexity will continue to seek attractive growth opportunities in its correspondent banking network and via the Internet that will improve our productivity and profitability."

Nexity Financial Corporation, with assets of $523.4 million, is the parent of Nexity Bank with offices in Birmingham, Alabama, Atlanta, Georgia, and Myrtle Beach, South Carolina. Please visit our web site at www.nexitybank.com.