First Security Inc. Announces First Quarter 2016 Results

Owensboro, Kentucky – First Security Inc., the bank holding company for First Security Bank, Inc., announced results for the first quarter of 2016.

“We are excited to report our financial performance during the first quarter of 2016. We are pleased with our performance, and even more excited about the future as we redefine our strategy for growth and position our Company to take advantage of opportunities,” stated Michael F. Beckwith, President and Chief Executive Officer.

Net income for the first quarter of 2016 was $889,000, approximately 4% higher than the first quarter of 2015. Earnings per share for the quarter were $0.37, up $0.01 over the same period in 2015. Our first quarter 2016 financial report for First Security is enclosed. Financial highlights of the first quarter follow.

• ï‚·  Assets at quarter end total $595 million, up slightly from year-end 2015.
• ï‚·  Loans and deposits – Net loans are relatively flat, while deposits increased $24 million or

  5%. Most of the increase was in the non-interest bearing deposit category while the

  smallest increase was in certificates of deposit.

• ï‚·  Tangible book value increased $1.37 or 5% on a year over year basis.
• ï‚·  Return on tangible book value was approximately 6.4%, down slightly from the return

  recorded during the first quarter of 2015 of 6.5%.

• ï‚·  Non-interest income was down 4% for the quarter as compared to 2015. The reduction

  was primarily due to lower gain on the sale of loans and service charges on deposits. The Company’s non-interest income is typically at its lowest levels during the first quarter of the year due to lower mortgage loan sales.

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• ï‚·  Non-interest expense was up 5% for the quarter as compared to 2015, primarily due to higher personnel costs.
• ï‚·  Non-performing loans to total loans were 0.80% at the end of the quarter, similar to year-end 2015.

  “With significant leadership changes in the past few months, we are excited about building on our previous successes to continue providing excellent value to our shareholders in the future. Our continued efforts to increase core deposits and build full customer relationships will continue to add value, and position us for continued success,” stated Mr. Beckwith.