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

First Security Inc., the bank holding company for First Security Bank, Inc., announced another record performance for the third quarter and first nine months of 2015.

“We are excited to report a record third quarter net income, the largest quarterly earnings recorded in our Company’s history. Our investment in growth continues to fuel the significant increase in earnings during 2015,” stated M. Lynn Cooper, President and Chief Executive Officer.

Highlights of the quarter include:

• ï‚·  Earnings – Third quarter earnings were $1.2 million, up $189,000 or 19% as compared to the third quarter of 2014. Year to date earnings for 2015 were $3.0 million, up $1 million or 50% as compared to the same period in 2014.
• ï‚·  Credit Quality – The Bank’s credit quality continues to be better than many of its peers. With Non Performing Assets at 0.57%, the lowest level in over 4 years, the Company’s significant loan growth has occurred without compromising credit quality.
• ï‚·  Business of the Year Award – On behalf of First Security, Steve Witting, President of the Evansville Region, accepted the Southwest Indiana Chamber of Commerce 2015 Small Business of the Year Award.
• ï‚·  Cash Dividend – A dividend was declared of $.17 per share payable to shareholders of record November 15, 2015, our 49th consecutive dividend.

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“Our third quarter earnings of $1.2 million provided a new record, reflecting the highest net income ever posted during any quarter of any year during the Company’s history. With net income of $3.0 million during the first nine months of 2015, the Company has almost surpassed the total net income of $3.1 million reported for all of 2014,” further commented Mr. Cooper.

The third quarter 2015 financial report of First Security is enclosed. Financial highlights for the third quarter as compared to the prior years third quarter follow.

• ï‚·  Assets at quarter end total $580 million, representing an increase of 9%
• ï‚·  Loans and Deposits – Loans increased 13%, while deposits increased 10%
• ï‚·  Tangible Book Value increased $1.55 or 7%
• ï‚·  Net Income increased $189,000 or 19%
• ï‚·  Provision for Loan Losses increased $15,000 or 4%
• ï‚·  Net Interest Income increased $684,000 or 16%
• ï‚·  Net interest margin increased from 3.50% to 3.68%, an increase of 18 points
• ï‚·  Non-Interest Income declined $72,000 or 6%
• ï‚·  Non-Interest Expense increased $297,000 or 8%
• ï‚·  Efficiency ratio declined to 65.6% as compared to 67.4%. This ratio indicates how much

  in expense occurred during the period for every $1 of revenue produced by the

  Company.

• ï‚·  Non-Performing Assets to total assets were 0.57% at the end of September 2015, an

  improvement of 0.27% from the prior year’s ratio of 0.84%.

• ï‚·  Return on Assets improved from 0.75% to 0.81%
• ï‚·  Basic Earnings-Per-Share was $0.49 per share as compared to $0.44 per share, up 11%.

  “With strong capital and good earnings, we believe we are building a franchise that positions us well for many years to come. Ensuring that we utilize our capital well is very critical and important. We are keenly focused on balancing our investments while still providing solid, long- term returns for our shareholders,” stated Executive Vice President and Chief Financial Officer, Michael F. Beckwith.