Mountain 1st Bank & Trust Company Completes Formation of Bank Holding Company

HENDERSONVILLE, N.C., May 30 /PRNewswire-FirstCall/ -- Mountain 1st Bank & Trust Company (BULLETIN BOARD: MOBT) reported today that it has completed the formation of its bank holding company and the subsequent reorganization of Mountain 1st Bank into a wholly owned subsidiary of this new holding company. The holding company, which was previously approved by shareholders, will be known as 1st Financial Services Corporation. The reorganization into a bank holding company form of organization was completed at the close of its business on May 23.

Upon the effective date of the reorganization, each share of Mountain 1st Bank's common stock held by its shareholders was converted into a share of common stock of the new parent company. As a result, existing shareholders of Mountain 1st Bank have now become shareholders of the new parent company 1st Financial Services Corporation. Also, as a result of this change, 1st Financial's common stock will become listed on the OTC Bulletin Board in the place of the Bank's and the company's stock symbol will change from "MOBT" to "FFIS".

Greg Gibson, Chief Executive Officer, stated that "We believe this change in corporate structure, approved by our shareholders last year, will provide Mountain 1st with new options to continue to grow and increase shareholder value. Our Board, management and business model remain the same and with this structural change, we have enhanced our flexibility with respect to capital generation and also our ability to take advantage of new opportunities as they are presented. We believe this to be a very positive step in the evolution of Mountain 1st."

This Press Release and its exhibits contain statements relating to our financial condition, results of operations, plans, strategies, trends, projections of results of specific activities or investments, expectations or beliefs about future events or results, and other statements that are not descriptions of historical facts. Those statements may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may be identified by terms such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "forecasts," "potential" "opportunity," or "continue," or similar terms or the negative of these terms, or other statements concerning opinions or judgments of our management about future events. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, factors discussed in our Annual Report on Form 10-K and in other reports we file with the Federal Deposit Insurance Corporation from time to time. Other factors that could influence the accuracy of those forward-looking statements include, but are not limited to: (a) the financial success or changing strategies of our customers; (b) customer acceptance of our services, products and fee structure; (c) changes in competitive pressures among depository and other financial institutions or in our ability to compete effectively against larger financial institutions in our banking market; (d) actions of government regulators, or changes in laws, regulations or accounting standards, that adversely affect our business; (e) our ability to manage our growth and to underwrite increasing volumes of loans; (f) the impact on our profits of increased staffing and expenses resulting from expansion; (g) changes in the interest rate environment and the level of market interest rates that reduce our net interest margin and/or the volumes and values of loans we make and securities we hold; (h) weather and similar conditions that affect our customers in the markets we serve; (i) changes in general economic or business conditions and the real estate market in our banking market (particularly changes that affect our loan portfolio, the abilities of our borrowers to repay their loans, and the values of loan collateral); and (j) other developments or changes in our business that we do not expect. Although our management believes that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. All forward-looking statements attributable to us are expressly qualified in their entirety by the cautionary statements in this paragraph. We have no obligation, and do not intend, to update these forward-looking statements.

About Mountain 1st Bank

Established in mid 2004 and headquartered in Hendersonville, NC, Mountain 1st Bank and Trust is one of the fastest growing and most successful de novo community banks in the southeast. With over $600 million in assets, Mountain 1st Bank and Trust's more than 155 employees serve eight counties in western North Carolina through fourteen full service branches. Mountain 1st Bank and Trust is one of the few publicly traded companies headquartered in western North Carolina (OTCBB: MOBT). For more information, visit www.mountain1st.com.

First Call Analyst:
FCMN Contact:

Source: Mountain 1st Bank & Trust Company

CONTACT: Greg Gibson, Chief Executive Officer, Mountain 1st Bank & Trust
Company, +1-828-243-5175

Web site: http://www.mountain1st.com/

2008-05-30 18:07:28 0374079 PRNEWSWIRE