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

November 4, 2011

1st Banc Reports
3rd Quarter Earnings

East Liverpool, OH – Tri-State 1st Banc Inc. reported improved earnings in the third Quarter of 2011 and year to date. Tri-State 1st Banc Inc. (NASDAQ.BB symbol of “TSOH.OB”) is headquartered at 16926 St. Clair Avenue, East Liverpool, Ohio. 1st National Community Bank, the Cooper Insurance Agency, Gateminder Corporation and MDH Investment Management Inc. are wholly owned subsidiaries of Tri-State 1st Banc.

Tri-State reported Net Income for the 3rd Quarter 2011 of $238.9 thousand. Combined with the first two Quarters of 2011, the total Net Income for the first three Quarters of 2011 is $544.9 thousand. This is an increase in earnings year-to-date of $50.5 thousand or 10.2%. compared with Net Income for the first three Quarters of 2010 of $494.4 thousand.

On September 30, 2011, Total Assets of the company were $132.7 million. That is an increase of $8.6 million from $124.1 million of Total Assets on December 31, 2010. Equity increased by $957 thousand to $12.6 million in the first nine months of 2011 from $11.7 million on December 31, 2010 in part due to appreciation in the value of securities.

For the 3rd Quarter, 1st National Community Bank had Net Income of $226.9 thousand, Gateminder Corporation was $12.9 thousand and MDH Investment Management had Net Income of $42.6 thousand. Cooper Insurance showed a small loss of $1,756 for the quarter. The company is doing considerably better than projected for the three month period and for the year-to-date numbers. Cooper Insurance Agency typically has a disportionate amount of its revenues in the last Quarter each year.

Tri-State and 1st National Board Chairman Charles B. Lang stated: “2011 has been a strong year for the non-bank subsidiaries. Each one compliments the bank subsidiary with their financially-related services which are uncommon for banks the size of 1st National Community Bank. The revenues help Tri-State offset those times when interest margins narrow such as we are experiencing today. In the last few years we have significantly strengthened executive managerment at our subsidiaries. All companies excel at achieving their common goal of serving our communities while helping our customer/ clients meet their need for well informed counseling in an increasingly more complex world.”

President & CEO Stephen Sant of 1st Bank stated: “We are excited about the positive impact that Utica/Marcellus Shale drilling is having on our communities. 1st Bank is positioning itself to help our customers take advantage of these opportunties. Jeff Bail, Vice President and Sr. Trust Officer, is prepared to help landowners navigate through the financial issues created by signing-bonus checks and royalty payments. We soon will offer two types of “Shale CDs” giving landowners a premium return while they determine the most appropriate investment strategy to meet their long term needs.”

Lance Lang, President & CEO of Gateminder Inc. reported that: “Gateminder is enjoying another strong year in 2011 in terms of growth in the number of ATMs serviced, customer useage and profits. Consumers value the convenience of ATMs at a multitude of easily accessable locations as evidenced by a large increase in the daily transactions. The process of bringing all of our ATMs into compliance with new ADA regulations by the deadline in 2012 to aid visually impaired customers is progressing well and we are on schedule. Our Sales Representatives kept the company busy this year with new customer installations.”

Dr. Marc D. Hoffrichter as President & CEO of MDH Investment Management Inc said “The Company has registered an incredible 55% increase in net income for the first three quarters of 2011 compared to the same period of 2010. Over the past three years assets under management have inceased 58%. Our success can be attributed to capital appreciation in the investment portfolios and growth through new client accounts. Vice President and principal trader David Bickerton passed his Series 7 securities licensure certification and has launched the new 1st Community Investment Services with the Bank. Most importantly, our investment performance has markedly outpaced the benchmarks commonly used to measure successful investing this past year.”

President & CEO Stephen Cooper of Cooper Insurance reports: “The agency continues to benefit from its affiliation with the other Tri-State subsidiaries. Through the synergy of our referral program we have been able to attract new insurance and bank clients. We continue to provide our quality insurance products and valued service from our experienced staff. Cooper Insurance has served the tri-state area for over 105 years.”

1st National Community Bank operates three banking offices in Columbiana County, Ohio in Lisbon, Calcutta, and East Liverpool along with its Operation Service Center and Executive offices on St. Clair Avenue. There are also retail bank offices in New Cumberland, West Virginia and Midland, Pennsylvania. The Bank maintains ATMs at five conveniently located office sites. Seven additonal surcharge-free ATMs are available to customers at off-site locatons at three grocery stores, two family convenience stores and two college compuses. 1st Bank is the exclusive provider of a full range of trust services within Columbiana County, Ohio and Hancock County, West Virginia. It also provides trust services in Beaver County, PA.

The Office of the Comptroller of the Currency chartered 1st National Community Bank on June 1, 1987 as a national banking association. The Bank will have been in continuous operation for 25 years in June 2012. Tri-State 1st Banc, a financial holding company, was established in 1996.

Contact Person: 
Stephen A. Beadnell, CFO, Tri-State 1st Banc Inc.
16926 St. Clair Ave., 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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