OWENSBORO, Ky. (Aug. 7, 2014) — First Security Inc., the holding company for First Security Bank Inc., announced its performance for the second quarter of 2014 with earnings up 67 percent, loans up 16 percent and deposits up 6 percent compared to the second quarter of last year.
“We exceeded one half billion dollars in assets and set record earnings for the first six months of this year. Our loans increased over 16% compared to prior year, when many financial institutions are having difficulty maintaining their loan balances,” stated M. Lynn Cooper, president and CEO.
Highlights of the quarter include:
- Asset size – The bank holding company assets exceeded one half billion for the first time. A celebratory milestone in the history of the company.
- Earnings – Second quarter earnings were up $263,000 or 67% as compared to the second quarter of 2013 and were up $252,000 or 63% over the most recent prior quarter. This is the second highest quarterly earnings in the company’s history when comparing to historical core earnings excluding any gains on the sale of securities or other one-time events. On a year to date basis, the Company recorded net income of $1.1 million during the first six months of 2014 as compared to $549,000 during the same year to date period in 2013, a 92% increase. This is the highest first 6 months earnings on record for the company.
- Cash Dividend – A dividend was declared in the amount of $.16 per share, the company’s 44th consecutive dividend. The dividend is payable to shareholders of record August 15, 2014.
- Asset Quality – Nonperforming assets to assets was 0.87% as of the end of the second quarter of 2014 compared to 1.27% as of the end of the second quarter of 2013, a 31% improvement and better than many of its peers. During this same year over year period the allowance for loan losses has grown to 1.05% of loans, up over 8% from a year ago, recognition that along with the strong loan growth, adequate reserves are necessary when building a strong bank.
- Consolidation – The company consolidated two facilities into one in the Bowling Green market and at the same time is considering a new branch facility in Bowling Green to potentially further consolidate smaller facilities.
- Expansion – The Company is actively pursuing many opportunities to help further grow shareholder value. These opportunities may result in an expansion within the existing footprint or in the newer markets. The company also continues to look for ways to deliver more and better products and services to its client base.
Financial highlights below reflect second quarter results as compared to the first quarter of 2014 as well as financial results for the first six months of 2014 as compared to the first six months of 2013:
Compared to Prior Quarter First Six Months Comparing Last Year
Loans Up $17 million or 5% Up $54 million or 16%
Deposits Down $2.3 million or 1% Up $23 million or 6%
Stockholders’ Equity Up $800 thousand or 1% Up $30 million or 121%
Net Income Up $252 thousand or 63% Up $507 thousand or 92%
Non-Interest Income Up $252 thousand or 31% Up $161 thousand or 9%
Non-Interest Expense Up $71 thousand or 2% Up $224 thousand or 3%
Net Interest Income Up $218 thousand or 6% Up $964 thousand or 14%
Other areas of note include improvement to net interest margin, return on assets, and non-interest income. See attached second quarter 2014 financial summary.
Earnings per share for the first six months of 2014 were $0.68 per share as compared to $0.70 per share for the same period in 2013. While this represents a slight decline, the new capital raised in the first quarter of 2014 significantly increased the outstanding shares.