First State Financial Corporation (Nasdaq:FSTF) on WednEsday reported a first-quarter net loss of $1.1 million, compared with a profit of $1.3 million during the same period a year ago.

The loss was primarily due to a $2.9 million provision for loan losses and a decrease in net interest income, partially offset by a tax benefit as a result of the first-quarter 2008 loss.

Net interest income decreased to $3.5 million for the three months ended March 31, from $4.6 million for the first quarter of 2007.