Treasure State Bank Reports First Quarter 2009 Results

MISSOULA, Mont.--(Business Wire)--
Treasure State Bank (OTCBB: "TRSU") today announced its 2009 first quarter
results.

* The Bank generated a $25 thousand profit for the first quarter 2009. Net
profit per share was two cents, compared to an eleven cent loss in the fourth
quarter of 2008.
* The Bank set aside $150 thousand in additional loan loss reserves in the first
quarter 2009, which increased the loan loss reserve to 1.94% of total loans,
from 1.79%, in response to overall economic conditions and their potential
impact on borrowers.
* Net interest income declined by 11% due to an increase in non-performing loans
which increased to 5.56% of total loans at the end of the first quarter 2009.
* Total assets were relatively flat at $90.5 million as of March 31, 2009
compared to $89.7 million at the end 2008 due to slower loan growth from the
local economic slowdown.
* Ending book value increased slightly to $8.74 per share at the end of the
first quarter 2009, compared to $8.70 at the end of 2008.
* As of March 31, 2009 the Bank maintained its well-capitalized status with a
Tier 1 Leverage Capital Ratio of 10.50% and a Total Risk Based Capital Ratio of
13.13%.

During the fourth quarter 2008 and the first quarter 2009, the Bank experienced
a decline in loan quality, primarily real estate loans. The Board of Directors
and management believe that the issues in the loan portfolio are manageable and
that loan loss reserves are adequate to absorb potential losses. Risk management
procedures are in place to monitor and control the situation and the Bank`s
capital position is adequate to sustain the institution for the foreseeable
future. While the Bank`s capital remains strong, the Bank recently offered its
existing shareholders an opportunity to invest in a Preferred Stock Offering,
which will close on May 15, 2009. The additional capital will provide
flexibility for moderate growth over the next couple of years while ensuring
that capital levels remain strong. Products and services were expanded during
the first quarter of 2009 to better serve our customers and include the
introduction of an exciting, new Reward Checking account and a residential
mortgage department. The Reward Checking account will assist in continuing
efforts to build core deposits in the local marketplace, and the residential
mortgage department will provide additional fee income to the Bank. In spite of
challenges facing all financial institutions, Treasure State Bank is positioned
to weather the downturn and to profit from the recovery.

About Treasure State Bank

Treasure State Bank, a state chartered bank, is headquartered in Missoula,
Montana. The Bank was founded in January 2007 with a capital base of $11
million. Treasure State Bank currently trades on the Over the Counter Bulletin
Board (OTCBB) under the ticker symbol "TRSU." Treasure State Bank serves
businesses, professionals, non-profit organizations and individuals through
customized banking services and products. For more information, please visit
www.treasurestatebank.com.

Treasure State Bank
Shelley Boutelle, CEO, 406-543-8700

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