1st NC Bank

Investor Relations

Press Releases

1st Banc Reports Increased Earnings for 2007

January 27, 2008

East Liverpool, OH. -- Tri-State 1st Banc, Inc. (NASDAQ "TSEO"), parent company of 1st National Community Bank, Gateminder Corporation and MDH Investment Management, Inc., announced Net Income for the fourth quarter ended December 31, 2007 of $116,000 or $.14 per diluted share. This compares favorably with $.04 per share or $34,000 for the fourth quarter of 2006. The $82,000 increase represents a 241.0% improvement over the Net Income reported for the same three-month period in 2006. The MDH Investment Management Inc. subsidiary contributed $14.6 thousand to Net Income of the company in the fourth quarter.

For the twelve months ended December 31, 2007, Net Income was $452,000 or $.53 per diluted share. For the year 2006, the company had Net Income of $334,000 or $.39 per diluted share. On the year-to-year comparison, the $118,000 improvement in earnings represents a 35.3% increase over the full year 2006. Per diluted share earnings increased by $.14. The consolidated total assets of Tri-State on December 31, 2007 were $104.1 million. This increase in total assets of $6.3 million from December 31, 2006 represents a 6.4% increase for the year.

Charles B. Lang, President of Tri-State 1st Banc Inc., stated that he is quite pleased with the progress in the fourth quarter and the full year 2007: "The Bank marked its 20th anniversary in June of 2007. It has been a year of great turmoil as the nation experienced a credit crisis, mounting mortgage foreclosures, a threatened recession coupled with rising inflation and an erratic stock market. After 6 consecutive years of record earnings for the banking industry, all commercial banks and savings institutions insured by the FDIC reported a 27.4% decline in Net Income from industry earnings in 2006. We attribute our success to having a good plan and a good team committed to carrying out that plan. We hope to be able to continue our momentum through the year 2008."

The company is presently engaged in a "going private" transaction with its shareholders as a cost savings effort by reducing regulatory burdens and expenses associated with being an SEC reporting entity. At a special meeting of shareholders to be held on March 14th, 2008 the shareholders will vote on the going private proposal. If approved the qualifying stockholders will receive $17 per share for their common stock or else a share-for-share exchange for a new Preferred Stock issue if they so elect.

1st National Community Bank operates five banking offices in Columbiana County, Ohio in Lisbon, Calcutta, East Liverpool and at the Wal-Mart store. Other banking offices include New Cumberland, West Virginia and Midland, Pennsylvania. The Bank maintains 13 convenient ATM locations at six banking offices and seven off-site locations around the tri-state area including major grocery stores and family convenience stores. Customers of the bank have use of all thirteen ATMs without a service charge.

The Bank boasts a Trust Department engaged with local charities and professional estate planners in providing full range of trust and estate management services in the tri-state area.

The Office of the Comptroller of the Currency chartered 1st National Community Bank on June 1, 1987 as a national banking association. The Bank is currently in its 20th year of providing a full range of banking services in Ohio, Pennsylvania and West Virginia.

For more information please contact:
Charles B. Lang, President
Tri-State 1st Banc, Inc
16924 St. Clair Avenue
P. O. Box 796
East Liverpool, OH., 43920
Phone: (330) 385-9200
FAX: (330) 386-7452

1st National Community Bank | 16924 St. Clair Avenue | East Liverpool, OH 43920 | Phone: 330/385-9200 | Fax: 330/386-7452

Copyright 2006 1st National Community Bank. All rights reserved. Equal Housing Lender - Member FDIC.