EXHIBIT 99.1
April 21, 2005
NEWS RELEASE to Lexington Herald-Leader
First Security Bancorp, Inc., the parent of First Security Bank of Lexington, announced its financial results for the quarter ended March 31, 2005.
Net income for the quarter ended March 31, 2005 was $395,000, as compared to $201,000 for the quarter ended March 31, 2004, an increase of $194,000. Net income per share (on a diluted basis) for the quarter ended March 31, 2005 was $0.25, as compared to $0.13 for the quarter ended March 31, 2004. The improvement in the first quarter of 2005, as compared to the first quarter of 2004, represents a 97% increase in net income and a 92% increase in net income per share.
Earnings for the current quarter, as compared to the first quarter of 2004, were positively impacted by a number of factors, including a 28% improvement in the Bank’s net interest margin and a 20% reduction in operating expenses.
Total assets at March 31, 2005 were $212.1 million, as compared to $226.8 million at March 31, 2004, a decline of $14.7 million. This decline is primarily attributable to declines in federal funds sold and loans. During the quarter ended March 31, 2005, total assets declined by $5.4 million from the $217.4 million level at December 31, 2004. This decline is primarily attributable to a decline in federal funds sold.
Doug Hutcherson, President and CEO, states “Over the course of the last year, we have taken many steps to improve the performance of the Bank. The results for this quarter speak to the success of those efforts. We very much look forward to furthering these efforts for the balance of 2005 and beyond.”
First Security Bancorp, Inc.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(unaudited)
Quarter Ended Year Ended
3/31/2005 3/31/2004 12/31/2004
Assets
Cash & Due From Banks $ 4,900 $ 3,777 $ 4,446
Federal Funds Sold 8,673 14,425 18,568
Securities 38,284 39,516 33,748
Loans 152,033 161,555 152,576
Allowance For Loan Losses (1,707) (2,384) (1,720)
------ ------ ------
Net Loans 150,326 159,171 150,856
Other Assets 9,898 9,924 9,816
----- ----- -----
Total Assets $212,081 $226,813 $ 217,434
======== ======== =========
Liabilities & Shareholders’ Equity
Deposits
Non-interest Bearing 20,764 21,632 22,670
Savings, Money Market & NOW 47,670 39,976 55,180
Certificates of Deposit 107,217 119,648 101,012
------- ------- -------
Total Deposits 175,651 181,256 178,862
Repurchase Agreements 3,475 7,563 5,857
Other Borrowed Funds 10,667 16,953 11,246
Other Liabilities 1,560 642 861
----- --- ---
Total Liabilities 191,353 206,414 196,826
Shareholders' Equity 20,728 20,399 20,608
------ ------ ------
Total Liabilities & Shareholders’Equity $212,081 $226,813 $ 217,434
======== ======== =========
CONSOLIDATED INCOME STATEMENTS
(in thousands, except per share data)
(unaudited)
Quarter Ended Year Ended
3/31/2005 3/31/2004 12/31/2004
Interest Income $ 2,811 $ 2,662 $ 10,738
Interest Expense (1,115) (1,214) (4,411)
Net Interest Income 1,696 1,448 6,327
Loan Loss Provision - (25) (297)
Net Interest Income After Provision 1,696 1,423 6,030
Other Income 209 515 1,497
Operating Expenses 1,322 1,649 6,538
Provision for Federal Income Tax (188) (88) (305)
Net Income (loss) $ 395 $ 201 $ 684
Earnings Per Share
Basic $ 0.25 $ 0.13 $ 0.44
Diluted $ 0.25 $ 0.13 $ 0.44
First Security Bancorp, Inc.
SELECTED FINANCIAL DATA
(in thousands, except per share data)
(unaudited) Year
Quarter Ended Ended
3/31/2005 3/31/2004 12/31/2004
Per Share Data:
Basic earnings per share $ 0.25 $ 0.13 $ 0.44
Diluted earnings per share $ 0.25 $ 0.13 $ 0.44
Book value per share $ 13.29 $ 13.09 $ 13.22
Average balances
Loans $155,181 $161,323 $ 159,718
Securities 38,256 39,324 39,524
Federal funds sold 6,761 19,197 9,201
Other non-earning assets 13,473 13,305 13,074
Total assets $213,671 $233,149 $ 221,517
Interest-bearing deposits $155,482 $164,143 $ 153,793
Noninterest bearing deposits 21,494 22,876 23,162
Other interest bearing liabilities 14,898 24,897 23,216
Other noninterest bearing liabilities 1,074 965 1,053
Shareholders' equity 20,723 20,268 20,293
Total liabilities and shareholders' equity $213,671 $233,149 $ 221,517
Performance Ratios:
Return on average assets 0.74% 0.34% 0.31%
Return on average equity 7.62% 3.97% 3.37%
Net interest margin (tax equivalent basis) 3.39% 2.65% 3.05%
Efficiency ratio 69.40% 84.00% 83.56%
