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Treasure State Bank Announces Agreement with Regulators

^{Published on 2009-12-29 14:50:33 - Market Wire}
 

MISSOULA, Mont.--([ BUSINESS WIRE ])--Treasure State Bank ("the Bank") (OTCBB: TRSU), a Montana chartered community bank, today announced that it has entered into an agreement with its regulators to strengthen its financial condition and operations.

The agreement, known as a Consent Order ("the Order"), is attached in its entirety. Under the agreement Treasure State Bank is required, among other things, to maintain a Tier 1 leverage capital ratio of 12%. The Bank has recently raised $1,500,000 in additional capital with 1,474,871 shares now outstanding. The Bank's Tier 1 leverage capital ratio is currently 10.76%. The average for all FDIC insured commercial banks in Montana as of September 30, 2009 was 10.43%. The agreement also requires that the Bank reduce its level of classified and non performing loans to levels detailed in the attached Order.

Treasure State Bank's deposits are insured by FDIC insurance to at least $250,000 per depositor. In addition, non-interest bearing transaction accounts and qualified NOW Checking accounts are fully guaranteed by the FDIC for an unlimited amount of coverage under the FDIC's Transaction Account Guarantee Program (TAGP) program, in which Treasure State bank is a participant. The coverage under the TAGP program is in addition to, and separate from, the coverage available under the FDIC's general deposit insurance protection.

For more information regarding this release you may contact James A. Salisbury, President and CEO at 406-543-8700.

About Treasure State Bank

Treasure State Bank, a Montana chartered community bank, is headquartered in Missoula, Montana. The Bank was founded in January 2007. 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 ].

Safe Harbor Statement

This communication contains statements that may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Treasure State Bank and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully, and the ability to complete before-mentioned transactions. The Bank undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.

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