EXHIBIT 99.1
August 2, 2004
NEWS RELEASE to Lexington Herald-LeaderBy
Doug Hutcherson, President & CEO
First Security Bancorp, Inc., the parent of First Security Bank of Lexington, announced its financial results for the quarter ended June 30, 2004.
Net income for the three months ended June 30, 2004 was $203,000, or $0.13 per share (on a diluted basis), compared to $202,000, or $0.14 per share, for the quarter ended June 30, 2003. Net income for the six month period ended June 30, 2004 was $404,000, or $0.26 per share, compared to $325,000, or $0.22 per share, for the six month period ended June 30, 2003.
Total assets at June 30, 2004 were $217.2 million, as compared to $226.8 million at March 31, 2004, a decrease of $9.6 million. The decline in total assets during the quarter is primarily attributable to lower balances in liquid federal funds sold balances, which have been used to reduce balances in high cost certificates of deposit. Total deposits at June 30, 2004 were $173.5 million, as compared to $181.3 million at March 31, 2004, a decrease of $7.8 million.
Earnings for the current quarter, as compared to the second quarter of 2003, were positively impacted by an increase in net interest income, resulting primarily from a decline in interest expense and a reduction in the provision for loan losses; and adversely impacted by a decline in noninterest income attributable primarily to declines on sales of securities and loans. Operating expenses declined by $165,000 from the same quarter of 2003.
CONSOLIDATED BALANCE SHEETS(unaudited)
(in thousands, except per share data)
| 6/30/04 | 12/31/03 | 6/30/03 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Assets | |||||||||||
| Cash & Due From Banks | $ | 5,506 | $ | 4,820 | $ | 13,112 | |||||
| Federal Funds Sold | 1,570 | 25,193 | 7,227 | ||||||||
| Securities | 42,041 | 38,624 | 37,606 | ||||||||
| Loans | 159,551 | 161,519 | 166,674 | ||||||||
| Allowance For Loan Losses | (2,298 | ) | (2,379 | ) | (2,294 | ) | |||||
| Net Loans | 157,253 | 159,140 | 164,380 | ||||||||
| Other Assets | 10,838 | 10,481 | 10,600 | ||||||||
| Total Assets | $ | 217,208 | $ | 238,258 | $ | 232,925 | |||||
| Liabilities & Shareholders' Equity | |||||||||||
| Deposits | |||||||||||
| Non-interest Bearing | $ | 23,031 | $ | 24,581 | $ | 21,337 | |||||
| Savings, Money Market & NOW | 41,689 | 41,391 | 40,861 | ||||||||
| Certificates of Deposit | 108,763 | 124,668 | 130,619 | ||||||||
| Total Deposits | 173,483 | 190,640 | 192,817 | ||||||||
| Repurchase Agreements | 8,291 | 8,874 | 3,699 | ||||||||
| Other Borrowed Funds | 14,389 | 17,512 | 16,303 | ||||||||
| Other Liabilities | 1,154 | 1,120 | 789 | ||||||||
| Total Liabilities | 197,317 | 218,146 | 213,608 | ||||||||
| Shareholders' Equity | 19,891 | 20,112 | 19,317 | ||||||||
| Total Liabilities & Shareholders' Equity | $ | 217,208 | $ | 238,258 | $ | 232,925 | |||||
CONSOLIDATED INCOME STATEMENTS (unaudited)
(in thousands, except per share data)
| Three Months Ended 6/30/04 6/30/03 | Three Months Ended 6/30/04 6/30/03 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest Income | $ | 2,756 | $ | 2,890 | $ | 5,418 | $ | 5,868 | ||||||
| Interest Expense | 1,108 | 1,410 | 2,322 | 2,908 | ||||||||||
| Net Interest Income | 1,648 | 1,480 | 3,096 | 2,960 | ||||||||||
| Loan Loss Provision | 50 | 324 | 75 | 469 | ||||||||||
| Net Interest Income After Provision | 1,598 | 1,156 | 3,021 | 2,491 | ||||||||||
| Other Income | 396 | 961 | 911 | 1,432 | ||||||||||
| Other Expenses | 1,698 | 1,863 | 3,347 | 3,542 | ||||||||||
| Provision for Federal Income Tax | 93 | 52 | 181 | 56 | ||||||||||
| Net Income (loss) | $ | 203 | $ | 202 | $ | 404 | $ | 325 | ||||||
| Earnings Per Share | ||||||||||||||
| Basic | $ | .13 | $ | .14 | $ | .26 | $ | .22 | ||||||
| Diluted | .13 | .13 | .26 | .21 | ||||||||||
Where appropriate, some items in the prior financial statements have been reclassified to conform to the current presentation.