First Security Inc. Announces Record Second Quarter and Year to date 2015 Results

 First Security Inc., the bank holding company for First Security Bank, Inc., announced today another record performance for the second quarter and first half of 2015 at First Security.

Highlights of the quarter include:

• Two New Records – We are pleased to report two new records in the history of our company.The strongest earnings for any second quarter and the strongest earnings for any first 6 months.
• Earnings – Second quarter earnings were $1,022,441, up $369,000 or 56% as compared to the second quarter of 2014. Year to date earnings for 2015 were $ 1,876,163 up $821,000 or 78% as compared to the same period in 2014.
• Growth- Sustained strong loan growth up over $17 million for the quarter and solid deposit growth, up over $12 million, along with a stable to growing net interest margin, indicate a continued ability to gain market share with new customers.
• Cash Dividend – A dividend was declared of $.17 per share payable to shareholders of record August 15, 2015, our 48th consecutive dividend.“We are very excited to be able to report record net income of nearly $1.9 million during the first half of 2015 and over $1.0 million during the second quarter of 2015. Existing operations not only grew their net income base in 2015 over 2014, but also provided enough of an increase to help the Company

overcome the investment expense in our newest branch office location in Lexington, Kentucky, ” stated M. Lynn Cooper, President and CEO.

The Company also posted good deposit growth during the first half of 2015 as noninterest bearing deposits were up 24% year over year. These zero cost deposits are not only the Company’s cheapest source of funds, but also represent excellent core deposit customers. “We have implemented initiatives to increase our deposit balances to help augment our strong loan growth. We believe that these initiatives are important in growing a solid balance sheet that will help lead to even greater shareholder value,” further commented Mr. Cooper.

The second quarter 2015 financial report of First Security reflects current financial highlights for the second quarter as compared to the prior year’s second quarter.

• Assets at quarter end total $569 million, representing an increase of 13%
• Loans and Deposits increased 15% and 5% respectively
• Tangible Book Value increased $1.19 to $22.27 per share, up 6%
• Net Income increased $369,000 or 56%
• Provision for Loan Losses increased $15,000 or 3%
• Net Interest Income increased $632,000 or 16%
• Net Interest Margin increased from 3.44% to 3.53%, an increase of 0.09 points
• Non-Interest Income increased $91,000 up 9%
• Non-Interest Expense increased $162,000 or 4%
• Efficiency Ratio successfully declined to 67.0% as compared to 76.4%. This ratio has steadilydeclined as the Bank has grown its revenue from newly expanded locations.
• Non-Performing Assets to total assets improved and were 0.61% at the end of June 2015, adecline of 0.27% from the prior year’s ratio of 0.87%.
• Return on Assets improved from 0.53% to 0.72%
• Basic Earnings-Per-Share were $0.43 as compared to $0.19, up 126%. Second quarter earningsper share in 2014 were negatively impacted by a large number of new shares issued during the first quarter of 2014.

  M. Lynn Cooper, President and CEO closed stating, “First Security remains steadfast in its commitment to build a franchise of quality people, products, services and customers.”

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June 2014

11,586,645 69,000 11,655,645

51,843,887 10,072,809 61,916,696

399,676,067 (4,195,545) (377,240)

395,103,282

2,575,629

1,591,029 15,144,104 284,265 4,346,458 1,341,042 6,508,029 3,419,291 503,885,470

51,255,030 348,151,559 399,406,589

36,447,763 4,276,119 9,875,000

450,005,471

11,565,727 23,002,358

– 11,842,558 8,576,169

(1,106,813) 53,879,999 503,885,470

24.05 21.08

FIRST SECURITY, INC.
Unaudited Consolidated Income Statement

Total interest income Total interest expense Net interest income

Provision for loan losses

Noninterest income

Service charges on deposits
Net gains on sale of loans
Net gains on sale of securities
Net gain (loss) on sale of OREO
Net gains on sale of fixed assets Bank Owned Life Insurance Income Other noninterest income

Total noninterest income

Noninterest expenses

Personnel expense
Occupancy and equipment expense Other noninterest expense
Total noninterest expenses Income before tax expense
Income tax expense
Net income

Net income per share – basic Net income per share – diluted

Average shares outstanding – basic Average shares outstanding – diluted

Performance ratios

Return on average assets Return on average equity Net interest margin Efficiency ratio

Asset Quality

Allowance for Loan Loss to Loans
Non Performing Assets to Assets
Non Performing Loans to Loans
Allowance for Loan Loss to Non Performing Loans

June – Quarter to Date

June – Year to Date

2015

5,727,476 1,158,488 4,568,988

390,000

296,741 301,488 – – – 77,944 473,906 1,150,079

2,020,143 815,981 997,258

3,833,382 1,495,686 473,245 1,022,441

0.43 0.42

2,383,611 2,697,815

0.72% 7.01% 3.53% 67.0%

June 30, 2015

1.13% 0.61% 0.76%

149.02%

2014

5,140,568 1,203,342 3,937,226

375,000

332,594 185,294 –

(23,382) 92,520 48,709

423,217 1,058,953

2,087,463 578,905 1,004,641 3,671,009 950,169 296,403 653,766

0.19 0.19

2,286,202 2,600,406

0.53% 4.82% 3.44% 73.5%

2015

11,507,645 2,293,112 9,214,533

775,000

617,693 529,146 –

(13,996) –

156,874

850,255 2,139,972

4,092,355 1,599,825 2,158,544 7,850,724 2,728,781

852,618 1,876,163

0.79 0.79

2,378,684 2,692,888

0.69% 6.48% 3.61% 69.1%

2014

10,155,847 2,499,360 7,656,487

750,000

609,457 308,843 –

(23,382) 92,520 101,280 777,482 1,866,200

4,179,853 1,151,526 1,939,124 7,270,503 1,502,184

446,827 1,055,357

0.68 0.68

1,554,894 1,869,098

0.43% 5.17% 3.42% 76.4%

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December 31, 2014

1.09% 0.75% 0.93%

117.58%

June 30, 2014

1.05% 0.87% 1.03%

101.99%