UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8‑K
CURRENT REPORT Pursuant
to Section 13 or 15(d) of the
Securities Exchange Act of 1934
|
| | |
Date of report (Date of earliest event reported) | | February 3, 2015 |
First Security Group, Inc.
(Exact Name of Registrant as Specified in Its Charter)
Tennessee
(State or Other Jurisdiction of Incorporation)
|
| | |
000-49747 | | 58-2461486 |
(Commission File Number) | | (IRS Employer Identification No.) |
|
| | |
531 Broad Street, Chattanooga, Tennessee | | 37402 |
(Address of Principal Executive Offices) | | (Zip Code) |
(423) 266-2000
(Registrant's telephone number, including area code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition
A copy of First Security's press release summarizing its financial results for the fourth quarter of 2014 is attached as Exhibit 99.1. Summarized financial highlights and consolidated financial statements are attached as Exhibit 99.2 and 99.3, respectively. The publication date of the press release is February 3, 2015.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
|
| | |
Exhibit No. |
| Description |
99.1 |
| Fourth Quarter 2014 Earnings Release dated February 3, 2015. 1 |
99.2 |
| Financial Highlights. 1 |
99.3 |
| Consolidated Balance Sheet and Consolidated Statement of Operations. 1 |
1 The information provided in the attached press release shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
FIRST SECURITY GROUP, INC.
Dated: February 3, 2015
|
| |
By: | /s/ John R. Haddock |
Name: | John R. Haddock |
Title: | Executive Vice President and Chief Financial Officer |
Exhibit Index
|
| | |
Exhibit No. |
| Description |
99.1 |
| Fourth Quarter 2014 Earnings Release dated February 3, 2015. |
99.2 |
| Financial Highlights |
99.3 |
| Consolidated Balance Sheet and Consolidated Statement of Operations |
First Security Group Announces Fourth Quarter Profits
Strong Deposit and Loan Growth Achieved in 2014
CHATTANOOGA, TN, February 3, 2015 - First Security Group, Inc. (NASDAQ: FSGI) (“First Security” or “FSG”) reported net income for the fourth quarter of 2014 of $922 thousand, or $0.01 per basic and diluted share, and $2.4 million for the year ended December 31, 2014, or $0.04 per basic and diluted share.
Financial Highlights
| |
• | Net income of $922 thousand for the fourth quarter of 2014, consistent with the $927 thousand net income of the third quarter 2014 and a $1.6 million improvement from the fourth quarter of 2013. |
| |
• | Loans held-for-investment totaled $663.6 million at year-end, an increase of $80.5 million, or 13.8%, from 2013. Loan sales, excluding mortgage activity, totaled approximately $27.9 million during the fourth quarter and $75.1 million for 2014. Loans held-for-sale at year-end totaled $72.2 million. |
| |
• | Pure deposits as of December 31, 2014 increased by $83.7 million, or 18.8%, to $529.7 million compared to $446.0 million as of December 31, 2013. |
“The primary goals of 2014 were returning to core profitability, net loan production of $50 million per quarter, and funding the resulting asset growth with pure deposits,” said Michael Kramer, First Security’s President and Chief Executive Officer. “We achieved each of these goals. Total loans, including held-for-sale, increased by $153 million during 2014, and when combined with our loan sale transactions, we exceeded our $200 million net production goal. We also achieved the desired growth in pure deposits and earned $2.4 million in net income.”
The below discussion of First Security’s results of operations and financial condition is supplemented by the accompanying financial highlights.
Net Interest Income
For the year ended December 31, 2014, net interest income totaled $30.9 million, an increase of $7.5 million, or 32.2%, as compared to $23.4 million for 2013. For the fourth quarter of 2014, net interest income declined by $543 thousand to $7.9 million compared to $8.5 million for the third quarter of 2014. During the third quarter, approximately $650 thousand of discount accretion was earned as a result of the resolution of various loans purchased at discounts. Excluding the discount accretion from the third quarter, the net interest margin remained consistent at 3.32% for the fourth quarter as compared to 3.33% for the third quarter.
Loans
Loans, excluding held-for-sale, totaled $663.6 million as of December 31, 2014, an increase of $80.5 million, or 13.8%, from December 31, 2013. Loans held-for-sale totaled $72.2 million as of year-end as compared to $220 thousand as of December 31, 2013. During the fourth quarter, an additional $53.2 million of loans were transferred or originated into the held-for-sale category, net of loan sales of approximately $27.9 million.
Deposits
Pure deposits, defined as transaction accounts, increased $83.7 million, or 18.8%, to $529.7 million as of December 31, 2014 compared to year-end 2013. FSG continued to improve its deposit mix, reducing the overall cost of deposits from 0.55% for the third quarter of 2014 to 0.49% for the fourth quarter of 2014. Average pure deposits accounted for 59.3% of average total deposits during the fourth quarter, up from 56.8% for the third quarter of 2014. Average core deposits, defined as transaction accounts plus retail CDs, increased to 76.7% of average total deposits as compared to 75.3% for the third quarter.
Non-Interest Income
Non-interest income totaled $12.3 million for the year ended December 31, 2014, an increase of $3.6 million, or 41.2%, compared to 2013. For the fourth quarter of 2014, non-interest income totaled $3.8 million, an increase of $983 thousand as compared to the third quarter. For the quarter- and year-to-date periods, gains on sales of loans were the primary driver for the increased earnings. During the fourth quarter, approximately $27.9 million of SBA and commercial real estate loans were sold resulting in gains of $886 thousand. As of December 31, 2014, loans held-for-sale total $72.2 million, which are expected to sell for gains during the first quarter of 2015.
“Given the current rate and competitive environment, additional improvements to our net interest margin will be challenging in 2015. This further emphasizes the importance of maintaining and increasing our level of non-interest income,” said John Haddock, First Security’s EVP and Chief Financial Officer. “We are actively adding additional resources to our SBA department and will continue to evaluate our TriNet production to assist in managing our commercial real estate concentration and to capitalize on market opportunities.”
Non-Interest Expense
Non-interest expense improved by $6.1 million, or 12.8%, to $41.7 million in 2014 as compared to 2013. For the fourth quarter of 2014, non-interest expense increased from $10.2 million to $10.9 million as a result of additional incentive compensation expense and elevated professional fees. As of December 31, 2014, full-time equivalent employees totaled 268 as compared to 264 as of September 30, 2014 and 285 as of December 31, 2013.
Asset Quality
First Security recorded a negative provision expense of $221 thousand in the fourth quarter to adjust the allowance for loan losses to FSG’s current estimate of $8.6 million as of December 31, 2014. The negative provision was a direct result of net recoveries of $221 thousand during the fourth quarter. The ratio of the allowance to total loans remained consistent at 1.29% as of December 31, 2014 as compared to September 30, 2014. Total non-performing assets (“NPAs”) declined by $2.9 million during the fourth quarter to improve the NPA to total assets ratio from 1.16% to 0.84%. During 2014, total NPAs declined by $7.4 million, or 45.1%.
Capital
Shareholders’ equity as of December 31, 2014 totaled $90.0 million, a $2.0 million increase from September 30, 2014 and a $6.3 million increase from December 31, 2013. As of December 31, 2014, book value per share increased to $1.35 per share compared to $1.32 per share as of September 30, 2014 and $1.26 per share as of December 31, 2013.
“While we are pleased with our progress achieved during 2014, we remain committed to improving the level of earnings each and every quarter in 2015,” said CEO Kramer. “We believe the combination of our team of bankers in the East Tennessee and North Georgia markets as well as our niche lending initiatives provide a platform to build a strong community bank that will produce solid returns for our shareholders.”
About First Security Group, Inc.
First Security Group, Inc. is a bank holding company headquartered in Chattanooga, Tennessee, with $1.1 billion in assets. Founded in 1999, First Security’s community bank subsidiary, FSGBank, N.A. has 26 full-service banking offices along the interstate corridors of eastern and middle Tennessee and northern Georgia. FSGBank provides retail and commercial banking services, trust and investment management, mortgage banking, financial planning, and internet banking (www.FSGBank.com).
Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles in the United States of America (GAAP). First Security’s management uses these “non-GAAP” measures in its analysis of First Security’s performance. Non-GAAP measures typically adjust GAAP performance measures to exclude the effects of significant gains, losses or expenses that are unusual in nature and not expected to recur. Non-GAAP measures may also exclude non-recurring charges, expenses and gains related to the consummation of mergers and acquisitions, and costs related to the integration of merged entities. Since these items and their impact on First Security’s performance are difficult to predict, management believes presentations of financial measures excluding the impact of these items provide useful supplemental information that is important for a proper understanding of the operating results of First Security’s core business. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
Forward-Looking Statements
This news release contains comments or information that constitute forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1993) that are based on current expectations that involve a number of risks and uncertainties. Actual results may differ materially from the results expressed in forward-looking statements. Factors that might cause such a difference include changes in interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking regulation; changes in tax laws; changes in prices, levies, and assessments; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in the national and local economy; and other factors, including risk factors, referred to from time to time in filings made by First Security with the Securities and Exchange Commission. First Security undertakes no obligation to update or clarify forward-looking statements, whether as a result of new information, future events or otherwise.
Public companies, from time to time, become aware of rumors concerning their business. Investors are cautioned that in this age of instant communication and internet access, it may be important to avoid relying on rumors and unsubstantiated information. First Security complies with Federal and State law applicable to disclosure of information. Investors may be at significant risk in relying on unsubstantiated information from other sources.
FOR FURTHER INFORMATION:
John R. Haddock, EVP & CFO
Tel: (423) 308-2075
E-mail: jhaddock@FSGBank.com
First Security Group, Inc. and Subsidiary
Consolidated Financial Highlights
(unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | |
| 4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | 4th Quarter | | Year-to-Date |
| 2014 | 2014 | 2014 | 2014 | 2013 | | December 31, 2014 | December 31, 2013 |
| (in thousands, except per share amounts and full-time equivalent employees) |
Earnings: | | | | | | | | |
Net interest income | $ | 7,944 |
| $ | 8,487 |
| $ | 7,545 |
| $ | 6,925 |
| $ | 6,478 |
| | $ | 30,901 |
| $ | 23,370 |
|
Credit for loan and lease losses | $ | (221 | ) | $ | 11 |
| $ | (270 | ) | $ | (972 | ) | $ | (955 | ) | | $ | (1,452 | ) | $ | (2,735 | ) |
Non-interest income1 | $ | 3,788 |
| $ | 2,805 |
| $ | 3,030 |
| $ | 2,635 |
| $ | 2,188 |
| | $ | 12,258 |
| $ | 8,683 |
|
Non-interest expense1 | $ | 10,900 |
| $ | 10,222 |
| $ | 10,101 |
| $ | 10,445 |
| $ | 10,150 |
| | $ | 41,668 |
| $ | 47,760 |
|
Income tax provision (benefit) | $ | 131 |
| $ | 132 |
| $ | 131 |
| $ | 132 |
| $ | 119 |
| | $ | 526 |
| $ | 477 |
|
Dividends and accretion on preferred stock | $ | — |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
| | $ | — |
| $ | 1,381 |
|
Effect of exchange on preferred stock to common stock | $ | — |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
| | $ | — |
| $ | 26,179 |
|
Net income available (loss allocated) to common shareholders | $ | 922 |
| $ | 927 |
| $ | 613 |
| $ | (45 | ) | $ | (648 | ) | | $ | 2,417 |
| $ | 11,349 |
|
| | | | | | | | |
Per Share Data: | | | | | | | | |
Net income available (loss allocated) to common shareholders, basic | $ | 0.01 |
| $ | 0.01 |
| $ | 0.01 |
| $ | 0.00 |
| $ | (0.01 | ) | | $ | 0.04 |
| $ | 0.24 |
|
Net income available (loss allocated) to common shareholders, diluted | $ | 0.01 |
| $ | 0.01 |
| $ | 0.01 |
| $ | 0.00 |
| $ | (0.01 | ) | | $ | 0.04 |
| $ | 0.24 |
|
Book value per common share | $ | 1.35 |
| $ | 1.32 |
| $ | 1.30 |
| $ | 1.27 |
| $ | 1.26 |
| | $ | 1.35 |
| $ | 1.26 |
|
| | | | | | | | |
Performance Ratios: | | | | | | | | |
Return on average assets | 0.36 | % | 0.36 | % | 0.24 | % | (0.02 | )% | (0.26 | )% | | 0.24 | % | 1.09 | % |
Return on average common equity | 4.13 | % | 4.23 | % | 2.86 | % | (0.21 | )% | (3.08 | )% | | 2.79 | % | 18.49 | % |
Efficiency ratio | 92.91 | % | 90.52 | % | 95.52 | % | 109.26 | % | 117.12 | % | | 96.55 | % | 149.00 | % |
Non-interest income to net interest income and non-interest income | 32.29 | % | 24.84 | % | 28.65 | % | 27.56 | % | 25.25 | % | | 28.40 | % | 27.09 | % |
| | | | | | | | |
Capital: | | | | | | | | |
Total equity to total assets | 8.41 | % | 8.56 | % | 8.55 | % | 8.63 | % | 8.56 | % | | 8.41 | % | 8.56 | % |
| | | | | | | | |
Liquidity, Yields and Rates: | | | | | | | | |
Interest-bearing cash - average balance | $ | 9,757 |
| $ | 8,436 |
| $ | 8,997 |
| $ | 13,653 |
| $ | 34,075 |
| | $ | 10,195 |
| $ | 111,276 |
|
Investment securities - average balance | 225,253 |
| 230,297 |
| 247,459 |
| 272,563 |
| 330,094 |
| | 243,726 |
| 301,375 |
|
Loans - average balance | 718,917 |
| 702,271 |
| 673,175 |
| 604,298 |
| 550,749 |
| | 675,055 |
| 545,803 |
|
Average Earning Assets | $ | 953,927 |
| $ | 941,004 |
| $ | 929,631 |
| $ | 890,514 |
| $ | 914,918 |
| | $ | 928,976 |
| $ | 958,454 |
|
Pure deposits2 - average balance | $ | 525,691 |
| $ | 493,707 |
| $ | 455,407 |
| $ | 446,820 |
| $ | 452,495 |
| | $ | 480,659 |
| $ | 434,792 |
|
Core deposits3 - average balance | 680,008 |
| 654,893 |
| 622,636 |
| 624,365 |
| 640,177 |
| | 645,654 |
| 644,579 |
|
Customer deposits4 - average balance | 802,837 |
| 783,996 |
| 757,704 |
| 773,336 |
| 801,827 |
| | 779,561 |
| 831,924 |
|
Brokered deposits - average balance | 83,490 |
| 85,369 |
| 84,021 |
| 70,204 |
| 84,143 |
| | 80,820 |
| 114,926 |
|
|
| | | | | | | | | | | | | | | | | | | | | | |
| 4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | 4th Quarter | | Year-to-Date |
| 2014 | 2014 | 2014 | 2014 | 2013 | | December 31, 2014 | December 31, 2013 |
| (in thousands, except per share amounts and full-time equivalent employees) |
Total deposits - average balance | $ | 886,327 |
| $ | 869,365 |
| $ | 841,725 |
| $ | 843,540 |
| $ | 885,970 |
| | $ | 860,381 |
| $ | 946,850 |
|
Total loans to total deposits | 73.28 | % | 75.85 | % | 76.01 | % | 71.85 | % | 68.02 | % | | 73.28 | % | 68.02 | % |
Yield on earning assets | 3.79 | % | 4.14 | % | 3.86 | % | 3.85 | % | 3.53 | % | | 3.90 | % | 3.39 | % |
Rate on customer deposits (including impact of non-interest bearing DDAs) | 0.37 | % | 0.37 | % | 0.37 | % | 0.41 | % | 0.48 | % | | 0.38 | % | 0.59 | % |
Cost of deposits | 0.49 | % | 0.55 | % | 0.59 | % | 0.65 | % | 0.74 | % | | 0.57 | % | 0.89 | % |
Rate on interest-bearing funding | 0.58 | % | 0.66 | % | 0.68 | % | 0.78 | % | 0.73 | % | | 0.65 | % | 1.04 | % |
Net interest margin, taxable equivalent | 3.32 | % | 3.60 | % | 3.30 | % | 3.21 | % | 2.89 | % | | 3.36 | % | 2.50 | % |
| | | | | | | | |
Non-Interest Income: | | | | | | | | |
Service Charges on Deposits | $ | 793 |
| $ | 778 |
| $ | 769 |
| $ | 741 |
| $ | 800 |
| | $ | 3,081 |
| $ | 3,097 |
|
POS Fees | 426 |
| 436 |
| 439 |
| 401 |
| 420 |
| | 1,702 |
| 1,590 |
|
BOLI | 235 |
| 234 |
| 235 |
| 351 |
| 239 |
| | 1,055 |
| 960 |
|
Mortgage Banking Income | 357 |
| 462 |
| 279 |
| 180 |
| 208 |
| | 1,278 |
| 1,135 |
|
Trust | 245 |
| 233 |
| 235 |
| 200 |
| 188 |
| | 913 |
| 715 |
|
Other | 846 |
| 398 |
| 376 |
| 369 |
| 165 |
| | 1,989 |
| 864 |
|
Net Gains on Sales of Loans | 886 |
| 254 |
| 450 |
| 22 |
| — |
| | 1,612 |
| — |
|
Net Gains on AFS sales | — |
| 10 |
| 247 |
| 371 |
| 168 |
| | 628 |
| 322 |
|
Total Non-Interest Income | $ | 3,788 |
| $ | 2,805 |
| $ | 3,030 |
| $ | 2,635 |
| $ | 2,188 |
| | $ | 12,258 |
| $ | 8,683 |
|
| | | | | | | | |
Non-Interest Expense: | | | | | | | | |
Salaries and Benefits | $ | 5,576 |
| $ | 5,153 |
| $ | 5,225 |
| $ | 5,274 |
| $ | 5,503 |
| | $ | 21,228 |
| $ | 22,584 |
|
Occupancy | 732 |
| 814 |
| 776 |
| 820 |
| 799 |
| | 3,142 |
| 3,301 |
|
Furniture and Fixtures | 580 |
| 565 |
| 520 |
| 557 |
| 544 |
| | 2,222 |
| 2,343 |
|
Professional Fees | 888 |
| 658 |
| 690 |
| 599 |
| 417 |
| | 2,835 |
| 4,893 |
|
FDIC insurance assessments | 336 |
| 336 |
| 336 |
| 311 |
| 150 |
| | 1,319 |
| 2,300 |
|
Write-downs on OREO and repossessions | 59 |
| 289 |
| 76 |
| 309 |
| 375 |
| | 733 |
| 2,373 |
|
Losses (Gains) on OREO, repossessions and fixed assets, net | (369 | ) | (113 | ) | (15 | ) | 10 |
| 57 |
| | (487 | ) | (359 | ) |
Non-performing asset expenses, net | 193 |
| 204 |
| 184 |
| 221 |
| 450 |
| | 802 |
| 1,320 |
|
Data processing | 618 |
| 577 |
| 506 |
| 588 |
| 517 |
| | 2,289 |
| 2,214 |
|
Communications | 120 |
| 129 |
| 147 |
| 150 |
| 172 |
| | 546 |
| 583 |
|
Debit card fees | 307 |
| 244 |
| 232 |
| 258 |
| 181 |
| | 1,041 |
| 806 |
|
Intangible asset amortization | 50 |
| 49 |
| 49 |
| 48 |
| 57 |
| | 196 |
| 270 |
|
Printing and supplies | 147 |
| 144 |
| 150 |
| 207 |
| 121 |
| | 648 |
| 649 |
|
Advertising | 147 |
| 140 |
| 135 |
| 134 |
| 65 |
| | 556 |
| 311 |
|
Insurance | 296 |
| 295 |
| 303 |
| 325 |
| 251 |
| | 1,219 |
| 2,125 |
|
Other | 1,220 |
| 738 |
| 787 |
| 634 |
| 491 |
| | 3,379 |
| 2,047 |
|
Total Non-Interest Expense | $ | 10,900 |
| $ | 10,222 |
| $ | 10,101 |
| $ | 10,445 |
| $ | 10,150 |
| | $ | 41,668 |
| $ | 47,760 |
|
| | | | | | | | |
Asset Quality: | | | | | | | | |
Net (recoveries) charge-offs | $ | (221 | ) | $ | 664 |
| $ | (470 | ) | $ | 228 |
| $ | (754 | ) | | $ | 201 |
| $ | 565 |
|
Net loan (recoveries) charge-offs to average loans, annualized | (0.03 | )% | 0.19 | % | (0.14 | )% | 0.15 | % | (0.55 | )% | | 0.03 | % | 0.10 | % |
|
| | | | | | | | | | | | | | | | | | | | | | |
| 4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | 4th Quarter | | Year-to-Date |
| 2014 | 2014 | 2014 | 2014 | 2013 | | December 31, 2014 | December 31, 2013 |
| (in thousands, except per share amounts and full-time equivalent employees) |
Non-accrual loans | $ | 4,348 |
| $ | 4,000 |
| $ | 4,891 |
| $ | 6,027 |
| $ | 7,203 |
| | $ | 4,348 |
| $ | 7,203 |
|
Other real estate owned and repossessed assets, net | $ | 4,519 |
| $ | 5,960 |
| $ | 7,725 |
| $ | 7,075 |
| $ | 8,213 |
| | $ | 4,519 |
| $ | 8,213 |
|
Loans 90 days past due | $ | 100 |
| $ | 1,951 |
| $ | 1,083 |
| $ | 854 |
| $ | 928 |
| | $ | 100 |
| $ | 928 |
|
Non-performing assets (NPA) | $ | 8,967 |
| $ | 11,911 |
| $ | 13,699 |
| $ | 13,956 |
| $ | 16,344 |
| | $ | 8,967 |
| $ | 16,344 |
|
NPA to total assets | 0.84 | % | 1.16 | % | 1.35 | % | 1.42 | % | 1.67 | % | | 0.84 | % | 1.67 | % |
Non-performing loans (NPL) | $ | 4,448 |
| $ | 5,951 |
| $ | 5,974 |
| $ | 6,881 |
| $ | 8,131 |
| | $ | 4,448 |
| $ | 8,131 |
|
NPL to total loans | 0.67 | % | 0.89 | % | 0.91 | % | 1.14 | % | 1.39 | % | | 0.67 | % | 1.39 | % |
Allowance for loan and lease losses to total loans | 1.29 | % | 1.29 | % | 1.43 | % | 1.52 | % | 1.80 | % | | 1.29 | % | 1.80 | % |
Allowance for loan and lease losses to NPL | 192.22 | % | 144.51 | % | 157.35 | % | 133.70 | % | 129.14 | % | | 192.22 | % | 129.14 | % |
| | | | | | | | |
Period End Balances: | | | | | | | | |
Loans, excluding HFS | $ | 663,622 |
| $ | 666,728 |
| $ | 659,539 |
| $ | 604,859 |
| $ | 583,097 |
| | $ | 663,622 |
| $ | 583,097 |
|
Allowance for loan and lease losses | $ | 8,550 |
| $ | 8,600 |
| $ | 9,400 |
| $ | 9,200 |
| $ | 10,500 |
| | $ | 8,550 |
| $ | 10,500 |
|
Loans held-for-sale | $ | 72,242 |
| $ | 46,904 |
| $ | 28,547 |
| $ | 35,503 |
| $ | 220 |
| | $ | 72,242 |
| $ | 220 |
|
Intangible assets | $ | 134 |
| $ | 184 |
| $ | 233 |
| $ | 282 |
| $ | 330 |
| | $ | 134 |
| $ | 330 |
|
Assets | $ | 1,070,244 |
| $ | 1,027,882 |
| $ | 1,012,685 |
| $ | 980,505 |
| $ | 977,574 |
| | $ | 1,070,244 |
| $ | 977,574 |
|
Deposits | $ | 905,613 |
| $ | 879,029 |
| $ | 867,709 |
| $ | 841,832 |
| $ | 857,269 |
| | $ | 905,613 |
| $ | 857,269 |
|
Total shareholders' equity | $ | 89,980 |
| $ | 87,963 |
| $ | 86,566 |
| $ | 84,654 |
| $ | 83,648 |
| | $ | 89,980 |
| $ | 83,648 |
|
Common stock market capitalization | $ | 151,027 |
| $ | 132,315 |
| $ | 144,594 |
| $ | 138,601 |
| $ | 153,187 |
| | $ | 151,027 |
| $ | 153,187 |
|
Full-time equivalent employees | 268 |
| 264 |
| 264 |
| 275 |
| 285 |
| | 268 |
| 285 |
|
Common shares outstanding | 66,826 |
| 66,826 |
| 66,633 |
| 66,635 |
| 66,603 |
| | 66,826 |
| 66,603 |
|
| | | | | | | | |
Average Balances: | | | | | | | | |
Loans, including HFS | $ | 718,917 |
| $ | 702,271 |
| $ | 673,175 |
| $ | 604,298 |
| $ | 550,749 |
| | $ | 675,055 |
| $ | 545,803 |
|
Intangible assets | $ | 166 |
| $ | 217 |
| $ | 265 |
| $ | 313 |
| $ | 363 |
| | $ | 240 |
| $ | 466 |
|
Earning assets | $ | 953,927 |
| $ | 941,004 |
| $ | 929,631 |
| $ | 890,514 |
| $ | 914,918 |
| | $ | 928,976 |
| $ | 958,453 |
|
Assets | $ | 1,033,327 |
| $ | 1,017,631 |
| $ | 1,006,143 |
| $ | 967,624 |
| $ | 993,447 |
| | $ | 1,006,392 |
| $ | 1,039,941 |
|
Deposits | $ | 886,327 |
| $ | 869,365 |
| $ | 841,725 |
| $ | 843,540 |
| $ | 885,970 |
| | $ | 860,381 |
| $ | 946,850 |
|
Common shareholders' equity | $ | 89,205 |
| $ | 87,656 |
| $ | 85,613 |
| $ | 84,340 |
| $ | 84,125 |
| | $ | 86,720 |
| $ | 61,382 |
|
Total shareholders' equity | $ | 89,205 |
| $ | 87,656 |
| $ | 85,613 |
| $ | 84,340 |
| $ | 84,125 |
| | $ | 86,720 |
| $ | 70,312 |
|
Common shares outstanding, basic - wtd | 65,915 |
| 65,869 |
| 65,731 |
| 65,726 |
| 66,603 |
| | 65,811 |
| 46,495 |
|
Common shares outstanding, diluted - wtd | 65,950 |
| 65,874 |
| 65,737 |
| 65,726 |
| 66,603 |
| | 65,815 |
| 46,504 |
|
| | | | | | | | |
1 Certain amounts were reclassified between non-interest income and non-interest expense to conform with the current presentation. |
2 Pure deposits are all transaction-based accounts, including non-interest bearing DDAs, interest bearing DDAs, money market accounts and savings accounts. |
3 Core deposits are Pure deposits plus customer certificates of deposits less than $100,000. |
4 Customer deposits are total deposits less brokered deposits. |
First Security Group, Inc. and Subsidiary
Consolidated Financial Highlights
Non-GAAP Reconciliation Table
(unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | |
| 4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | 4th Quarter | | Year-to-Date |
| 2014 | 2014 | 2014 | 2014 | 2013 | | December 31, 2014 | December 31, 2013 |
| (in thousands, except per share data) |
| | | | | | | | |
Average total shareholders' equity | $ | 89,205 |
| $ | 87,657 |
| $ | 85,613 |
| $ | 84,340 |
| $ | 84,125 |
| | $ | 86,720 |
| $ | 70,312 |
|
Effect of average preferred stock | — |
| — |
| — |
| — |
| — |
| | — |
| (8,930 | ) |
Average common shareholders' equity | $ | 89,205 |
| $ | 87,657 |
| $ | 85,613 |
| $ | 84,340 |
| $ | 84,125 |
| | $ | 86,720 |
| $ | 61,382 |
|
First Security Group, Inc. and Subsidiary
Consolidated Balance Sheets
|
| | | | | | | |
| December 31,
2014 | | December 31,
2013 |
(in thousands, except share amounts) | (unaudited) | | |
ASSETS | | | |
Cash and Due from Banks | $ | 18,447 |
| | $ | 10,742 |
|
Interest Bearing Deposits in Banks | 29,582 |
| | 10,126 |
|
Cash and Cash Equivalents | 48,029 |
| | 20,868 |
|
Securities Available-for-Sale | 95,571 |
| | 172,830 |
|
Securities Held-to-Maturity, at amortized cost (fair value - $128,058 at December 31, 2014 and $132,104 at December 31, 2013) | 124,485 |
| | 132,568 |
|
Loans Held-for-Sale | 72,242 |
| | 220 |
|
Loans | 663,622 |
| | 583,097 |
|
Less: Allowance for Loan and Lease Losses | 8,550 |
| | 10,500 |
|
Net Loans | 655,072 |
| | 572,597 |
|
Premises and Equipment, net | 28,347 |
| | 27,888 |
|
Bank Owned Life Insurance | 29,204 |
| | 28,346 |
|
Intangible Assets | 134 |
| | 330 |
|
Other Real Estate Owned | 4,511 |
| | 8,201 |
|
Other Assets | 12,649 |
| | 13,726 |
|
TOTAL ASSETS | $ | 1,070,244 |
| | $ | 977,574 |
|
| | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | |
LIABILITIES | | | |
Deposits | | | |
Noninterest Bearing Demand | $ | 159,996 |
| | $ | 144,365 |
|
Interest Bearing Demand | 111,021 |
| | 95,559 |
|
Savings and Money Market Accounts | 258,694 |
| | 206,125 |
|
Certificates of Deposit less than $100 thousand | 151,089 |
| | 182,408 |
|
Certificates of Deposit of $100 thousand or more | 119,514 |
| | 153,750 |
|
Brokered Deposits | 105,299 |
| | 75,062 |
|
Total Deposits | 905,613 |
| | 857,269 |
|
Federal Funds Purchased and Securities Sold under Agreements to Repurchase | 12,750 |
| | 12,520 |
|
Other Borrowings | 56,000 |
| | 20,000 |
|
Other Liabilities | 5,901 |
| | 4,137 |
|
Total Liabilities | 980,264 |
| | 893,926 |
|
SHAREHOLDERS’ EQUITY | | | |
Common Stock – $.01 par value – 150,000,000 shares authorized; 66,826,134 shares issued as of December 31, 2014 and 66,602,601 shares issued as of December 31, 2013 | 766 |
| | 764 |
|
Paid-In Surplus | 197,614 |
| | 196,536 |
|
Accumulated Deficit | (101,625 | ) | | (104,042 | ) |
Accumulated Other Comprehensive Loss | (6,775 | ) | | (9,610 | ) |
Total Shareholders’ Equity | 89,980 |
| | 83,648 |
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 1,070,244 |
| | $ | 977,574 |
|
First Security Group, Inc. and Subsidiary
Consolidated Statements of Operations
(unaudited)
|
| | | | | | | | | | | | | | | |
| Three Months Ended | | Year Ended |
| December 31, | | December 31, |
(in thousands, except per share data) | 2014 | | 2013 | | 2014 | | 2013 |
INTEREST INCOME | | | | | | | |
Loans, including fees | $ | 8,104 |
| | $ | 6,562 |
| | $ | 31,464 |
| | $ | 26,099 |
|
Investment Securities – taxable | 886 |
| | 1,224 |
| | 3,769 |
| | 4,366 |
|
Investment Securities – non-taxable | 81 |
| | 323 |
| | 605 |
| | 1,071 |
|
Other | 1 |
| | 40 |
| | 53 |
| | 378 |
|
Total Interest Income | 9,072 |
| | 8,149 |
| | 35,891 |
| | 31,914 |
|
INTEREST EXPENSE | | | | | | | |
Interest Bearing Demand Deposits | 45 |
| | 46 |
| | 182 |
| | 259 |
|
Savings Deposits and Money Market Accounts | 209 |
| | 142 |
| | 676 |
| | 770 |
|
Certificates of Deposit of less than $100 thousand | 243 |
| | 387 |
| | 1,067 |
| | 1,938 |
|
Certificates of Deposit of $100 thousand or more | 245 |
| | 395 |
| | 1,038 |
| | 1,953 |
|
Brokered Deposits | 361 |
| | 682 |
| | 1,937 |
| | 3,554 |
|
Other | 25 |
| | 19 |
| | 90 |
| | 70 |
|
Total Interest Expense | 1,128 |
| | 1,671 |
| | 4,990 |
| | 8,544 |
|
NET INTEREST INCOME | 7,944 |
| | 6,478 |
| | 30,901 |
| | 23,370 |
|
Credit for Loan and Lease Losses | (221 | ) | | (955 | ) | | (1,452 | ) | | (2,735 | ) |
NET INTEREST INCOME AFTER CREDIT FOR LOAN AND LEASE LOSSES | 8,165 |
| | 7,433 |
| | 32,353 |
| | 26,105 |
|
NONINTEREST INCOME | | | | | | | |
Service Charges on Deposit Accounts | 793 |
| | 800 |
| | 3,081 |
| | 3,097 |
|
Mortgage Banking Income | 357 |
| | 208 |
| | 1,278 |
| | 1,135 |
|
Gain on Sales of Securities Available-for-Sale | — |
| | 168 |
| | 628 |
| | 322 |
|
Gain on Sales of Loans | 886 |
| | — |
| | 1,612 |
| | — |
|
Other | 1,752 |
| | 1,012 |
| | 5,659 |
| | 4,129 |
|
Total Noninterest Income | 3,788 |
| | 2,188 |
| | 12,258 |
| | 8,683 |
|
NONINTEREST EXPENSES | | | | | | | |
Salaries and Employee Benefits | 5,576 |
| | 5,503 |
| | 21,228 |
| | 22,584 |
|
Expense on Premises and Fixed Assets, net of rental income | 1,312 |
| | 1,341 |
| | 5,364 |
| | 5,644 |
|
Other | 4,012 |
| | 3,306 |
| | 15,076 |
| | 19,532 |
|
Total Noninterest Expenses | 10,900 |
| | 10,150 |
| | 41,668 |
| | 47,760 |
|
INCOME (LOSS) BEFORE INCOME TAX PROVISION | 1,053 |
| | (529 | ) | | 2,943 |
| | (12,972 | ) |
Income Tax Provision | 131 |
| | 119 |
| | 526 |
| | 477 |
|
NET INCOME (LOSS) | 922 |
| | (648 | ) | | 2,417 |
| | (13,449 | ) |
Preferred Stock Dividends | — |
| | — |
| | — |
| | (929 | ) |
Accretion on Preferred Stock Discount | — |
| | — |
| | — |
| | (452 | ) |
Effect of Exchange of Preferred Stock to Common Stock | — |
| | — |
| | — |
| | 26,179 |
|
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS | $ | 922 |
| | $ | (648 | ) | | $ | 2,417 |
| | $ | 11,349 |
|
NET INCOME (LOSS) PER SHARE: | | | | | | | |
Net Income (Loss) Per Share – Basic | $ | 0.01 |
| | $ | (0.01 | ) | | $ | 0.04 |
| | $ | 0.24 |
|
Net Income (Loss) Per Share – Diluted | $ | 0.01 |
| | $ | (0.01 | ) | | $ | 0.04 |
| | $ | 0.24 |
|
Dividends Declared Per Common Share | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
|
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