First Security Bank Announces 3rd Quarter 2014 Results and Record Three and Nine Months Earnings

First Security Inc. (The holding company for First Security Bank, Inc.) announced today their performance for the third quarter and nine months of 2014. Earnings and Loans continued its strong growth into the third quarter of the year with earnings up 270% and loans up 17% compared to the third quarter of last year.

“Our continued focus on executing our strategic plan has provided us with the ability to accomplish record results. The Company has continued to grow its customer base through all of its markets. This growth has contributed to higher net interest income and non-interest income, all while maintaining our non-interest expense at levels similar to prior periods,” stated M. Lynn Cooper, President and CEO.

Highlights of the quarter include:

• ï‚·  Earnings – Third quarter earnings were up $717,000 or 270% as compared to the third quarter of 2013 and were up $328,000 or 50% over the most recent prior quarter. This is the highest quarterly earnings in the Company’s history. On a year to date basis, the Company recorded net income of $2 million during the first nine months of 2014 as compared to $814,000 during the same year to date period in 2013, a 150% increase. This is the highest first nine months earnings on record for the Company. Net income for the first nine months of 2014 was almost double net income recorded for all of 2013.
• ï‚·  Basic earnings per share – For the first nine months of 2014, earnings per share were $1.12 as compared to $1.03 per share for the same period in 2013. This is significant in that a substantial amount of new capital was raised during early 2014; however net income has grown so significantly that the Company is able to report a 9% increase in basic earnings per share.

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Comparing the third quarter of 2014 to the third quarter of 2013 results in an increase of $0.11 per share or 33%.

• ï‚·  Cash Dividend – A dividend was declared in the amount of $.16 per share, our 45th consecutive dividend. The dividend is payable to shareholders of record as of November 14, 2014.
• ï‚·  Asset Quality – Nonperforming assets to total assets were 0.84% as of the end of the third quarter of 2014 compared to 1.19% as of the end of the third quarter of 2013, a 29% improvement. The Company remains proud of its strong credit quality, better than many of its peers. During this same year over year period the allowance for loan losses has grown to 1.07% of loans, up 6% from a year ago, recognizing that along with our strong loan growth, adequate reserves are necessary when building a strong bank.
• ï‚·  Expansion – The Company is actively pursuing many opportunities to help further grow shareholder value. These opportunities may result in an expansion within our existing footprint or in newer markets. We also continue to look for ways to deliver more and better products and services to our client base.
• ï‚·  New Branch – We closed on the purchase of a former bank branch location in the Wellington area in Lexington, KY in the Southern part of the city. This location is scheduled to open in early 2015 and will be our second Lexington location. We have experienced great success with our existing Lexington location in the Hamburg area and hope to duplicate that success at our Wellington location.

  Financial highlights below reflect third quarter results as compared to the second quarter of 2014 as well as financial results for the first nine months of 2014 as compared to the first nine months of 2013:

Loans
Deposits Stockholders’ Equity Net Income Non-Interest Income Non-Interest Expense Net Interest Income

Compared to Prior Quarter

Up $20 million or 5%
Up $3.5 million or 1%
Up $2.5 million or 5%
Up $328 thousand or 50% Up $145 thousand or 14% Up $17 thousand or <1% Up $338 thousand or 9%

Compared to First Nine Months, 2013

Up $61 million or 17%
Up $17 million or 4%
Up $32 million or 133% Up $1.2 million or 150% Up $571 thousand or 23% Up $299 thousand or 3% Up $1.7 million or 17%

Other areas of note include improvement to net interest margin and return on assets. See attached third quarter 2014 financial summary.

The stock trading activity for First Security (symbol FIIT) can be accessed at www.otcmarkets.com.