EXHIBIT 99.1
November 8, 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 September 30, 2005.
Net income for the quarter ended September 30, 2005 was $373,000, or $0.24 per share (on a diluted basis) as compared to a net loss of $1,000 for the quarter ended September 30, 2004. Net income for the nine months ended September 30, 2005 was $1,207,000, or $0.77 per share (on a diluted basis) as compared to $403,000, or $0.26 per share for the nine months ended September 30, 2004. The improvement in the first nine months of 2005, as compared to the first nine months of 2004, represents a 200% increase in net income and a 196% increase in net income per share on a diluted basis.
Earnings for the current quarter, as compared to the third quarter of 2004, were positively impacted by a number of factors, including increases in the yield on the Bank’s earning assets brought about by increases in the Bank’s prime lending rate, reductions in non-interest expenses and more effective funds management.
Total assets at September 30, 2005 were $203.5 million as compared to $214.0 million at September 30, 2004, for a decline of $10.5 million. Compared to the December 31, 2004 balance of $217.4 million, total assets declined by $13.9 million. The decline from December 31, 2004 is primarily attributable to a decline in federal funds sold.
CONSOLIDATED BALANCE SHEETS (unaudited)
(in thousands, except share data)
| | | 9/30/05 | | 12/31/04 | | 9/30/04 | |
Assets | | | | | | | | | | |
| Cash & Due From Banks | | $ | 4,103 | | $ | 4,446 | | $ | 4,753 | |
| Federal Funds Sold | | | 4,304 | | | 18,568 | | | 7,216 | |
| Securities | | | 36,800 | | | 33,748 | | | 36,265 | |
| Loans | | | 149,967 | | | 152,576 | | | 157,984 | |
| Allowance For Loan Losses | | | (1,462 | ) | | (1,720 | ) | | (2,298 | ) |
| Net Loans | | | 148,505 | | | 150,856 | | | 155,686 | |
| Other Assets | | | 9,803 | | | 9,816 | | | 10,090 | |
| Total Assets | | $ | 203,515 | | $ | 217,434 | | $ | 214,010 | |
Liabilities & Shareholders’ Equity | | | | | | | | | | |
| Deposits | | | | | | | | | | |
| Non-interest Bearing | | $ | 20,655 | | $ | 22,670 | | $ | 23,002 | |
| Savings, Money Market & NOW | | | 46,746 | | | 55,180 | | | 54,491 | |
| Certificates of Deposit | | | 101,642 | | | 101,012 | | | 93,153 | |
| Total Deposits | | | 169,043 | | | 178,862 | | | 170,646 | |
| Repurchase Agreements | | | 3,518 | | | 5,857 | | | 8,263 | |
| Other Borrowed Funds | | | 8,330 | | | 11,246 | | | 13,821 | |
| Other Liabilities | | | 1,115 | | | 861 | | | 942 | |
| Total Liabilities | | | 182,006 | | | 196,826 | | | 193,672 | |
| Shareholders’ Equity | | | 21,509 | | | 20,608 | | | 20,338 | |
Total Liabilities & Shareholders’ Equity | | $ | 203,515 | | $ | 217,434 | | $ | 214,010 | |
CONSOLIDATED INCOME STATEMENTS (unaudited)
(in thousands, except per share data)
Three Months Ended Nine Months Ended
| | | 9/30/2005 | | 9/30/2004 | | 9/30/2005 | | 9/30/2004 | |
| Interest Income | | $ | 3,067 | | $ | 2,639 | | $ | 8,839 | | $ | 8,057 | |
| Interest Expense | | | (1,254 | ) | | (1,054 | ) | | (3,561 | ) | | (3,376 | ) |
| Net Interest Income | | | 1,813 | | | 1,585 | | | 5,278 | | | 4,681 | |
| Loan Loss Provision | | | - | | | (222 | ) | | - | | | (297 | ) |
| Net Interest Income After Provision | | | 1,813 | | | 1,363 | | | 5,278 | | | 4,384 | |
| Other Income | | | 215 | | | 361 | | | 648 | | | 1,272 | |
| Other Expenses | | | 1,481 | | | 1,735 | | | 4,143 | | | 5,081 | |
| Provision for Federal Income Tax | | | (174 | ) | | 10 | | | (576 | ) | | (172 | ) |
| Net Income (loss) | | $ | 373 | | $ | (1 | ) | $ | 1,207 | | $ | 403 | |
| | | | | | | | | | | | | | |
| Earnings Per Share | | | | | | | | | | | | | |
| Basic | | $ | 0.24 | | $ | 0.00 | | $ | 0.77 | | $ | 0.26 | |
Diluted | | | 0.24 | | | 0.00 | | | 0.77 | | | 0.26 | |
Where appropriate, some items in the prior financial statements have been reclassified to conform to the current presentation.
