Fourth Quarter and Full Year 2016
March 3, 2017
First Security Inc. Announces 2016 Results
OWENSBORO, KENTUCKY — First Security Inc. (OTCQX: FIIT), the bank holding company for First Security Bank, Inc., announced results for the fourth quarter and full year of 2016.
Net income for the fourth quarter of 2016 was $225,000, down from $1.1 million in the fourth quarter of 2015. For the year, net income was $2.9 million compared to $4.1 million in 2015. Earnings per share for the quarter were $0.11, down $0.33 as compared to the same period in 2015, while earnings per share for the year were $1.22 as compared to $1.72 in 2015.
Assets at quarter end total $640 million, up $46 million from the end of 2015.
Loans and deposits - Net loans are down 8% as compared to the end of 2015, while deposits increased $45 million or 10%. Non-interest bearing deposits increased by $6 million or 9%, offset by a reduction in retail time deposits, the Company’s highest cost of funds product, of $21 million or 9%.
Tangible book value increased $0.63 or 3% on a year over year basis.
Net interest margin decreased to 3.32% for the fourth quarter, compared to 3.50% for the fourth quarter of 2015.
Non-interest income was up 9% for the quarter as compared to 2015.
Non-interest expense was up 13% for the quarter as compared to 2015. This is primarily due to higher personnel costs, necessary to build the infrastructure necessary to continue to execute the strategic plan.
Non-performing loans to total loans were 2.88% at the end of the quarter, up from 0.79% at year-end 2015. This increase is primarily due to placing certain loans on non-accrual loan status as a result of the identification of certain factors and/or customer delinquency and credit deterioration that caused the loan to meet the definition of a non-accrual loan.
“While we are managing large amounts of change and improvement, we continue to focus on initiatives to improve all aspects of net income. We are beginning to see the results of the groundwork that we laid in 2016, and we are planning to build on that foundation in 2017,” stated Michael F. Beckwith, President and CEO.