Exhibit 99First State Financial Corporation Announces Second Quarter 2005 EarningsSARASOTA,FL — First State Financial Corporation, (Nasdaq: FSTF) holding company for First StateBank, today reported net income for the second quarter of 2005 of $853,000 versus $497,000 for thesame period of 2004, a 71.6% increase.In December 2004 the Company held its initial public offering, raising $26.9 million in new capitaland issuing 2,446,625 shares. The issuance raised FSTF’s weighted average common equivalent numberof shares for the three months ended June 30, 2005 to 5,879,179. This resulted in diluted earningsper share for the quarter of 14 cents. Diluted earnings per share for the comparable period of2004 was 15 cents based on weighted average common equivalent shares outstanding of 3,410,514.Year to date the company has earned $1,651,000 in net income or 28 cents per share versus $918,000or 28 cents per share at June 30, 2004.The increase in net income for the second quarter of 2005 over the respective prior year periodresulted primarily from an increase in net interest income from $2.2 million to $3.2 million, or47.2%. This growth is attributed to the 42.2% growth in total loans at June 30, 2005 versus June30, 2004 as well as growth in other earning assets. This increase in income was partially offsetby an increase in non-interest expense from $1.6 million to $2.1 million related to the growth ofthe company.Total loans increased 42.2% to $283.3 million at June 30, 2005 compared to $199.2 million at June30, 2004. Our loan quality continues to improve resulting in an allowance for loan losses of 1.05%of the loan portfolio at June 30, 2005 versus 1.31% for June 30, 2004. Total deposits increased27.2% to $266.8 million at June 30, 2005 compared to $209.8 million at June 30, 2004. Accordingto the corporation’s President and CEO, Corey Coughlin, “We continue to aggressively manage ourflow of funds to provide our depositors with competitive rates while meeting loan demand throughsound credit policies. To that end, our focus is on relationship banking. It is our goal torespond to all of our customers’ financial needs with the attention they deserve. ”Since December 31, 2004, First State’s total assets have increase 14.7% to $314.3 million. Totalloans increased 24.3% to $283.3 million and deposits increased 25.6% to $266.8 million**.**Accordingto Mr. Coughlin, “Our growth over the last two years has been very impressive. Our challenge nowis to continue that growth while maintaining that community bank feel that has made us what weare.”On June 15, 2005, the Company declared its second dividend of 5 cents per share for holders ofrecord on July 14, 2005, payable on July 29, 2005. The first dividend, declared on February 16,2005 of 5 cents per share, was issued to shareholders of record on March 10, 2005. The dividendwas paid on March 31, 2005.First State Bank is a wholly owned subsidiary of First State Financial Corporation, headquarteredin Sarasota, FL. First State Bank currently operates six offices, three in Sarasota County andthree in Pinellas County.Except for historical information contained herein, this news release contains comments orinformation that constitutes forward-looking statements within the meaning of the PrivateSecurities Litigation Reform Act of 1995, which involve significant risks and uncertainties.Actual results may differ materially from the results discussed in the forward-looking statements.

 
First State Financial Corporation