Hamilton State Bank Announces Acquisition of The First State Bank

Media release: Hamilton State Bank, a Georgia state bank based in
Braselton, announced today that it has acquired certain assets and deposits
and other liabilities of The First State Bank, Stockbridge, Ga., from the
Federal Deposit Insurance Corporation (FDIC) in its capacity as receiver.

The acquisition was completed pursuant to a purchase and assumption
agreement on January 20, 2012 following approvals by the Georgia Department
of Banking and Finance and the FDIC.

All locations of The First State Bank that offer Saturday banking hours will
open with normal business hours beginning on Saturday, January 21, 2012
under the name Hamilton State Bank, and all other locations will open with
normal hours on Monday, January 23, 2012 under the name Hamilton State Bank.
The First State Bank customers may continue to conduct normal banking
business and will have access to all of their accounts. In addition, all
outstanding The First State Bank checks will be processed, and customers may
continue to write The First State Bank checks and use their ATM and debit
cards. The First State Bank loan customers also should continue to make
their regular payments. New and existing customers will receive additional
information in the mail from Hamilton State Bank in the near future.

"We are a community bank that currently serves customers in Henry County and
surrounding areas," said Hamilton State Bank Chairman and CEO Robert Oliver.
"We welcome our newest customers and we want to assure them that they will
be served by the same friendly professionals at each of The First State Bank
branches in the days to come. We appreciate the loyalty of The First State
Bank customers and our plan is to enhance the high level of quality services
to which they are accustomed."

"Our goal is to have all Hamilton State Bank offices operating on the same
system in the months to come in order to provide streamlined, consistent
service to all our customers," Oliver added.

Led by an executive team with decades of community banking experience,
Hamilton State Bank is a wholly owned subsidiary of Hamilton State
Bancshares, Inc. The company focuses on conservative and sound banking
practices.

Hamilton State Bancshares, Inc. completed a private offering and sale of
common stock and securities convertible and exercisable into common stock
that together resulted in proceeds of approximately $231.6 million last
year. Hamilton State Bancshares, Inc. and Hamilton State Bank are among the
highest capitalized banking companies in the state of Georgia.

The acquisition solidifies Hamilton State Bank's position as a full-service
bank offering a variety of services to its customers from its offices in
Barrow, Bartow, Butts, Cobb, Hall, Henry, Forsyth, Jasper and Jackson
counties in Georgia. With the acquisition, Hamilton State Bank now has 21
branches and approximately $1.4 billion in total assets, $1.2 billion in
deposits, and $193 million in total capital. Hamilton State Bancshares,
Inc., the parent of Hamilton State Bank, has approximately $1.6 billion in
total assets, $1.2 billion in deposits, and $255 million in total capital.

To learn more about Hamilton State Bank visit www.hamiltonstatebank.com