First Security Bank Announces Record 2014 Results

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Owensboro, Kentucky- First Security Inc. (The holding company for First Security Bank, Inc.) announced their performance for 2014. “We are extremely pleased to report another record year for First Security in terms of performance, growth, and profitability. These results clearly indicate great success in executing our strategic plan of building a premier banking franchise,” stated M. Lynn Cooper, President and CEO. “

General highlights of the year include:

  • Net income of nearly three times 2013 net income and an all-time record for First Security, Inc.
  • Raised $31.7 million in new capital to help support our continued expansion and growth

    strategy

  • Registered First Security, Inc. as an OTC Bulletin Board Stock, symbol FIIT
  • Credit quality continues to remain strong and better than our peers

    Financial highlights for the year as compared to one year ago unless indicated otherwise.

  • Basic Earnings-Per-Share was $1.60, an increase of $0.20 per share or 14% over the prior year. Comparing fourth quarter of 2014 to 2013 reflects an increase of $0.11 per share or 30%.
  • Assets at year end total $546 million, representing an increase of 14%.
  • Net Income for the 4th quarter was $1.1 million or an increase of $800,000 over the same

    quarter in 2013. Year-to-date net income was $3.1 million, an increase of $2.0 million or 182%

    over 2013.

  • Non-Interest Income, excluding investment gains, was up 30% for the year.
  • Non-Interest Expense was up only 1% for the year.

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  • Non-Performing Assets to total assets were 0.75% at the end of 2014, an improvement of .22% from the prior year’s ratio of 0.97%.
  • Return on Assets improved from 0.25% to 0.62% for the year and improved from 0.24% to 0.81% compared to fourth quarter of 2013 to 2014.
  • Return on Equity for the year improved from 4.51% to 6.23% and improved from 4.78% to 7.58% compared to fourth quarter of 2013 to 2014.
  • Basic Earnings per share was $1.60 per share, an increase of $0.20 per share or 14% over the prior year. Comparing fourth quarter of 2014 to 2013, reflects an increase of $0.11 per share or 30%.
  • A dividend of $0.16 per share, the 46th consecutive dividend, was declared to all shareholders of record as of February 15, 2015, the record date.

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

    Mr. Cooper commented, “We are very excited about our achievements during 2014, especially considering we had a major conversion to a new core-processing system this past fall. This new system will provide us the means to continue to grow for years to come and enhance the service offerings for our customers, including the soon to be released Mobile Banking platform.”

    “Also, we opened our 11th branch, located in Lexington, Kentucky, the first week of January of this year. We took advantage of an opportunity to purchase a former bank branch building off Reynolds Road on Ruccio Way known in the Lexington area as Wellington. This is our second location in Lexington, and is currently one of our fastest growing markets in the company,” stated Mr. Cooper.

    In closing, Mr. Cooper stated, “We have had strong growth in all of our markets with the larger markets showing slightly better growth numbers.”

    First Security Bank has locations in Owensboro, Bowling Green, Franklin and Lexington, Kentucky in addition to Evansville and Newburgh, Indiana.

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