Personal Business Customer Service


First Quarter 2016

May 15, 2016


As was shared with you in our year-end 2015 shareholder letter, we are ever mindful of our goal at First Security - to provide a return for you - our shareholders. Not just in 2016, but in 2017 and beyond.

First Security is going through a period of transition as we have hired a number of new leaders. With these new leaders we have refocused our strategy to become a full-service banking franchise that desires to gain a deeper understanding of our customers’ financial needs to develop the entire customer relationship. At our April 26th shareholder meeting we shared a few things regarding our transformation. For 2016, our focus is on building the customer relationship, developing a retail strategy, strengthening the Company’s balance sheet and foundation for responsible growth, and strengthening operations and processes. We believe that doing these things will well position the Company for 2017 and put us in a unique position in the banking industry to capitalize on expansion opportunities. If we do these things and also produce good financial results in 2016, even better!

We are excited to report our financial performance during the first quarter of 2016. 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.

  • Assets at quarter end total $595 million, up slightly from year-end 2015.
  • 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.
  • Tangible Book Value increased $1.37 or 5% on a year over year basis.
  • Return on Tangible Book Value was approximately 6.4%, down slightly from the return recorded during the first quarter of 2015 of 6.5%.
  • 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.
  • Non-Interest Expense was up 5% for the quarter as compared to 2015. This is primarily due to higher personnel costs, a necessary investment as we transform First Security.
  • Non-Performing Loans to total loans were 0.80% at the end of the quarter, similar to year-end 2015.

Your Board of Directors has declared a dividend of $0.17 per share, our 51st consecutive dividend, to all shareholders of record as of May 15, 2016.

There is tremendous opportunity in community banking. This year will continue to be a year in which the Company reinvests in people and redefines its strategy. We are devoting time and energy to those efforts, while still working hard to produce results similar to 2015. The leadership team and all of our associates are energized and excited about the changes that we are making. We are passionate about making improvements for employees, our customers, and our shareholders. We truly believe that influence drives income.

We welcome any opportunity to provide you with banking products and services to meet your needs. You may contact Mike via phone or email at 270-663-4668 or mbeckwith@firstsecurity.net.

Thank you for your continued investment in us.


Michael F. Beckwith                                                                            Lee A. Mitchell
President and CEO                                                                            Chairman of the Board

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