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TRI-STATE 1ST BANC INC.
16926 St. Clair Ave., P. O. Box 796
East Liverpool, OH 43920
(330) 385-9200

August 2, 2010

1st Banc Reports Second Quarter Earnings

East Liverpool, OH. – Tri-State 1st Banc Inc. reported improved earnings in the Second Quarter of 2010. Tri-State 1st Banc Inc., with a NASDAQ.BB symbol of “TSOH.OB”, is headquartered at 16926 St. Clair Avenue, East Liverpool, Ohio. Tri-State is the parent company of four subsidiaries: 1st National Community Bank, Gateminder Corporation, MDH Investment Management Inc. and the Cooper Insurance Agency Inc.

Tri-State reported Net Income for the 2nd Quarter 2010 of $115.0 thousand. This resulted in an increase in earnings of $19.8 or 20.8% compared to the 1st Quarter of 2010 when Net Income was $95.2 thousand. Compared to the 2nd Quarter of 2009 when Net Income was $159.1 thousand, this is a decrease of $44.1 thousand or 27.8%. However Net Income for the first six months of 2010 was $210.3 thousand. This compares favorably with the first six months of 2009 when it was a negative $42.9 thousand, and also with full year 2009 with a Net Income of $177.9 thousand.

On June 30, 2010, Total Assets of the company were $125.9 million and that is up $5 million from $120.9 million at prior year end on December 31, 2009. Deposits have grown by over $1 million to $95.7 million and Equity has increased by $271.4 thousand to $11.6 million over the first six month period of 2010.

Charles B. Lang, Chairman of Tri-State 1st Banc Inc., stated: “These are difficult times for any business, but particularly a financial service company with its anchor company being a commercial bank. I congratulate Bank CEO Steve Sant and all the CEOs and management of our subsidiary companies for their recognition of the need to control expenses while at the same time increasing revenues. In our market, borrowers seem hesitent to add staff and new product lines. This constrains ecomomic recovery and Bank performance. These times require our leadership to be creative and their staff to work harder and better. Our results speak for themselves. The Bank loan departments are taking advantage of this opportunity during low loan demand to develop stronger relationships with our customers while gaining a better understanding of their needs as we pursue ways to see them through this recession and into the future recovery. These times challenge a community bank to really be just that – a bank working in its community that is willing to work on behalf of its customers.”

Mr. Lang continued: “We are pleased to welcome back Stephen Beadnell in the capacity of Chief Financial Officer of the holding company and its non-bank subsidiaries, as well as IT Officer of the Bank. In May, the team at Cooper Insurance Agency joined our company. The uniting of these companies has been seamless with the greatest change being a surge of new insurance business. Looking forward, the Agency will move our company further along in bringing vital new services and products to our customers. These new services will enable customers to make the best choices in connection with the protection, preservation and most productive use of their assets.”

Stephen R. Sant, President of 1st National Community Bank, stated: “Management of the Bank continues to focus its attention on improving the credit quality of the loan portfolio by aggressively dealing with problem credits at the first sign of weakness and with careful underwriting of all new credit requests. The results have been very rewarding. Non-performing loans to total loans have dropped from 4.52% in the second quarter of 2009 to 3.31% in the second quarter of 2010. Our staff is actively pursuing new loans in our markets.”

The Office of the Comptroller of the Currency chartered 1st National Community Bank on June 1, 1987 as a national banking association. The Bank has been in continuous operation in its community for over 23 years. The financial holding company Tri-State 1st Banc was established in 1996.

Contact Person:
Stephen Beadnell, 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

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

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