Tri-State 1st Banc Inc.
August 5, 2009
For Immediate Release
2nd Quarter Earnings
East Liverpool, OH. - Tri-State 1st Banc Inc. reported improved earnings in the Second Quarter of 2009. Tri-State 1st Banc Inc., with a NASDAQ.BB symbol of "TSOH.OB", is headquartered at 16926 St. Clair Avenue, East Liverpool, Ohio and is the parent company of three subsidiaries: 1st National Community Bank, Gateminder Corporation and MDH Investment Management Inc.
Tri-State reported net income for the 2nd Quarter of $159.1 thousand. This resulted in a slight increase in earnings compared with the 2nd Quarter in 2008 when net income was $158.8 thousand. Earnings of the company benefitted from a widening net interest spread at the Bank, strong earnings from Gateminder Corporation and a surge of new clients at MDH Investment Management.
On June 30, 2009, total assets of 1st National Community Bank were $123 million compared to $119 million on December 31, 2008 and $116 million on June 30, 2008. This $7 million annual increase puts assets 6% higher than on the same date of the preceding year.
Charles B. Lang, President of Tri-State 1st Banc Inc., stated: "Although the country finds itself in difficult times, Gateminder has seen good growth in usage of ATMs as the method of choice for cardholders to access funds. It is apparent that Gateminder will be an important contributor to company earnings in 2009. MDH received a number of new clients in the midst of the stock market turmoil as investors select investment advisors that consistently demonstrate their ability to outperform the market indices. Improvement in the market value of existing accounts and new assets put under management of MDH will strengthen income of the company during the last six months of the year. Interest spreads at the Bank have been improved in part due to a number of new, good-quality loans to customers during the first six months of 2009 and a decline in funding costs reflecting current interest rate environment. There are a number of factors at work in all three subsidiaries that should continue to carry Tri-State forward into 2010 and beyond."
Stephen R. Sant, President of 1st National Community Bank, stated: "We are extremely pleased with the 2nd Quarter 2009 results of the Bank. Earnings have rebounded nicely from the 1st Quarter. Net interest spread was 3.74% which represents a 16 BP increase over the prior quarter. The efforts of management to reduce deposit costs and booking new high-quality loans have driven this increase in interest spread. An increase in net interest income was more than enough to offset the impact of increasing FDIC insurance premiums and the continuing high credit costs related to problems in the economy. I continue to see no improvement in the economy near term and expect credit related expenses to be high the remainder of 2009."
1st National Community Bank now operates three banking offices in Columbiana County, Ohio at Lisbon, Calcutta, East Liverpool in addition to the bank Operation Service Center and Executive offices on St. Clair Avenue. There is also a 1st Bank office in New Cumberland, West Virginia and in Midland, Pennsylvania. The Bank maintains conveniently located ATM sites around the tri-state area in addition to the Bank branch locations. Off-site ATMs are located at four grocery stores and three family convenience stores. Customers of the Bank holding ATM and Debit Cards can use all these ATMs without paying the service charge that is assessed against non-customers. 1st Bank also offers a full range of trust services and it is the only bank maintaining a Trust Department locally while offering Trust 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 so that the Bank has been in operation in the community for over 22 years. The holding company was created in 1996.
Jean Edwards, CFO
Tri-State 1st Banc Inc.
16926 St. Clair Avenue
P. O. Box 796
East Liverpool, OH. 43920 (330) 385-9200 FAX (330) 386-7452