1st Financial Services Corporation reported unaudited earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company reported net interest income of $5,668,000, loss before income taxes of $12,495,000, net loss of $7,814,000, net loss available to common stockholders of $8,071,000 or $1.61 diluted per share against net interest income of $5,307,000, income before income taxes of $746,000, net income available to common stockholders of $510,000 or $0.10 diluted per share for the same period a year ago. For the nine months, the company reported net interest income of $17,125,000, loss before income taxes of $14,353,000, net loss of $8,899,000, net loss available to common stockholders of $9,667,000 or $1.93 diluted per share against net interest income of $15,286,000, income before income taxes of $2,726,000, net income available to common stockholders of $1,807,000 or $0.35 diluted per share for the same period a year ago. The company also reported negative return on average assets of 1.69% and negative return on average common equity of 41.79% against return on average assets of 0.37% and return on average common equity of 5.09% for the same period a year ago. The company reported book value per common share of $7.69 as at September 30, 2009 against $9.45 as at September 30, 2009.

On October 27, 2009, Gregory L. Gibson informed 1st Financial Services Corporation of his resignation as Chief Executive Officer of the company. The effective date of Mr. Gibson's resignation will be October 31, 2009. Under Mr. Gibson's employment agreement, Mr. Gibson is deemed to have resigned as a director of 1st Financial Services Corporation effective immediately after termination of his employment. Mr. Gibson was serving as a director for a term ending at the 2012 annual meeting. His career spans 30 years in the banking industry, including the past five years as the Bank's founder.

1st Financial Services Corporation reported unaudited earnings results for the second quarter and six months ended June 30, 2009. For the quarter, the company reported net loss of $1.5 million or $0.34 per diluted share. This compares with net income of $0.508 million or $0.10 per diluted share earned during the same period in 2008. Net interest income for the quarter increased to $5.9 million as compared with $4.9 million for the second quarter of 2008 and $5.5 million for the first quarter of 2009. Net loss available to common stockholders was $1.717 million. Loss before income taxes was $2.267 million against income before income taxes of $0.759 million in the same period of last year. For the six months ended June 30, 2009, the company reported a net loss of $1.1 million or $0.32 per diluted share on net interest income of $11.457 million as compared with net income of $1.3 million or $0.25 per diluted share on net interest income of $9.979 million for the first half of 2008. Loss before income taxes was $1.858 million against income before income taxes of $1.98 million in the same period of last year. Net loss available to common stockholders was $1.596 million against net income available to common stockholders of $1.297 million in the same period of last year. Negative return on average assets were 0.31% against return on average assets of 0.40% in the same period of last year. Negative return on common equity was 6.72% against return on common equity of 0.40% in the same period of last year. Book value per common share as at June 30, 2009 was $9.23 against $9.45 as at December 31, 2008.