1st NC Bank

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16926 St. Clair Ave., P. O. Box 796
East Liverpool, OH 43920
(330) 385-9200

October 22, 2012

1st Banc Reports Continued Strong Earnings in 2012

East Liverpool, OH. (10/22/12) – Tri-State 1st Banc Inc. reported higher earnings for the 1st nine months of 2012 and the third quarter of 2012 compared to 2011 and the second quarter of 2012. The company reported consolidated net earnings of $291,790 for the third quarter compared to $238,947 in the third quarter of 2011. This is an increase of $52,843 or 22.1% over the previous year's second quarter. Compared to the second quarter's earnings of $240,723 net income increased by $51,067 or 21.2% in the third quarter. Net income for the first nine months of 2012 was $744,235 compared to $544,900 in in the first nine months of 2011 which is an increase of $199,335 or 36.6%.

The company is beginning to see a slightly improving market for loans which had a positive impact on earnings. Loan balances were up by $1.6 million from the 3rd quarter of 2011. The bank continues to see a reduction in loan credit expenses due to improving loan quality which is having a positive impact on earnings. In addition, Tri-State benefitted from the improved revenue of the nonbank subsidiaries that continue to expand.

Company total assets as of September 30, 2012 were $147.4 million, compared with September 30, 2011 when total assets were $132.7 million. This represents an increase in total assets of $14.7 million or 11.1% since the third quarter of 2011. Shareholder's equity was $13.4 million on September 30, 2012, an increase of 6.3% over third quarter 2011, due to the increased value of the investment portfolio and the retained earnings of the company.

Stephen R. Sant, CEO/President of Tri-State 1st Banc Inc stated: "The 3rd quarter of 2012 continued building on strong results in the 1st and 2nd quarters. I am pleased to see the efforts of 1st National Community Bank's lending team led to increased loan balances from September 30, 2011. Our fee income continues to be well above peers thanks to the strong performance of our non-bank affiliates."

Mr. Sant went on to say: "Excitement continues to grow in the region as we learn more about the potential of the Utica and Marcellus shale plays. I believe all Tri-State's affiliates will benefit from the growth in the region due to shale, but I am especially excited about the potential in our wealth management areas, 1st Bank's Trust Department, 1st Community Investment Services, MDH Investment Management and Cooper Insurance Agency."

Tri-State 1st Banc Inc (NASDAQ.BB symbol "TSOH.OB") is an Ohio Financial Holding Company and is parent company to four subsidiary companies. They are 1st National Community Bank under President Stephen R. Sant, Dr. Marc D. Hoffrichter founded MDH Investment Management Company in 1983 and still serves as its President, Gateminder Corporation was chartered in 1999 and Lance Lang is President, and the Cooper Insurance Agency joined the company in 2010 and Stephen W. Cooper serves as its President.

Founder Charles B. Lang is Chairman and Stephen R. Sant serves as CEO/President of the parent company, Tri-State 1st Banc Inc.

Contact Person:
Stephen A. 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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