First Quarter 2014

May 22, 2014


Dear Shareholders,

We have begun the year with great anticipation about the future for First Security.  Many exciting happenings are taking place that we will share in this letter to you, our faithful shareholders.

Highlights of the quarter include:

·         Cash Dividend - A dividend was declared of $.16 per share, our 43rd consecutive dividend.

·         Earnings - First quarter earnings were up $244,000 or 154% as compared to the first quarter of 2013 and were up $107,000 or 36% over the most recent prior quarter.


·         Stock purchases and sales - For the first time in our history, stock-trading activity for First Security will be accessible for public view.  First Security, symbol FIIT, is now active as an Over the Counter stock.


·         Capital - We are pleased to announce that on March 31, 2014 your Company closed on new capital totaling $30 million.  This puts us in an excellent position to be able to acquire other banks or branches and further expand into existing or new markets.

As you know, 2013 was a year of investment in our existing and new markets as three new locations were developing.  We are pleased to announce all of those locations are now profitable due to a solid effort by local management to get to profitability quickly.  These results were made possible by hard work and successful efforts to grow bank relationships.

Your board of directors declared a common stock cash dividend of $.16.  Your dividend check is enclosed or has been electronically posted to your account.

Our first quarter 2014 financial report of First Security is enclosed.  Financial highlights for the first quarter are compared to the prior quarter and first quarter prior year:

                                                Compared to Prior Quarter         Compared to 1st Quarter Last Year

Loans                                    Up $6 million or 2%                          Up $65 million or 21%

Deposits                              Up $5 million or 1%                          Up $28 million or 8%

Shareholder Equity         Up $29 million or 119%                   Up $28 million or 115%


Compared to Prior Quarter         Compared to 1st Quarter Last Year

Net Income                        Up $107 thousand or 36%             Up $244 thousand or 154%

Provision for Losses       Up $45 thousand or 14%               Up $50 thousand or 15%

Non-Interest Income     Down $161 thousand or 17%       Up $161 thousand or 25%

Non-Interest Expense   Down $237 thousand or 6%         Up $190 thousand or 6%

Net Interest Income       Up $113 thousand or 3%               Up $441 thousand or 13%

We are excited about the ability of our shareholders to buy and sell their First Security stock Over the Counter.  While various websites can be used to access our Company’s trading activity, we have found www.otcmarkets.com as the most comprehensive.  Our assigned symbol is FIIT.  While still not a registered Company that is actively traded on public markets such as NASDAQ or NYSE, this over the counter market is a public market designed to meet the unique needs of Companies like community banks.  Designed to be a cost-effective marketplace that leverages bank regulatory reporting standards, it provides banks with shareholder-friendly trading experiences.  Recently launched, it will soon have relatively current information about your Company and begin to capture trade activity between independent parties.


On March 31, 2014, First Security reported its completion of a private placement of $30 million of the Company’s stock. As previously announced, the additional capital will allow us to execute on our long-term strategic growth plan and take advantage of expansion and growth opportunities. The offering participants are some of the best bank investors available and will provide First Security with a team of strategic partners focused on increasing shareholder value.


As a result of the recent capital raise, your Board of Directors is currently considering an offering of the Company’s Common Stock to existing accredited shareholders at a price around the March 31, 2014 tangible book value per share.  If you are interested, please contact our CFO Mike Beckwith at 1-888-425-8000 extension 4668 or email at mbeckwith@firstsecurity.net.

We remain steadfast in our commitment to build a franchise of which each shareholder will reap the benefits for many years to come. As always, please feel free to contact us should you have any questions, suggestions, or comments.  We thank you for your investment and welcome any opportunity to provide you with banking products and services to meet your needs.




M. Lynn Cooper                                                                                James T. “Tab” Quisenberry

President and CEO                                                                          Chairman of the Board


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