First Security Group Inc. (FSGI, Financial) filed Quarterly Report for the period ended 2012-03-31.
First Sec Gp has a market cap of $5.4 million; its shares were traded at around $3.05 with and P/S ratio of 0.1.
Interest income for the first quarter of 2012 was $9.7 million, a 15.8% decrease compared to the same period in 2011. Average earning assets decreased $23.2 million, or 2.2%, in the first quarter of 2012 compared to the same period in 2011. Average loans declined in the first quarter of 2012 by $112.5 million, offset by a $60.0 million increase in investment securities and a $29.2 million increase in other earning assets. The change in mix and volume of earning assets decreased interest income by $1.8 million, comparing the first quarter of 2012 to the same period in 2011. For other earning assets, we maintained an elevated balance at the Federal Reserve Bank of Atlanta, which averaged approximately $214 million for the first quarter of 2012. The yield on this account is approximately 0.25%. The purpose of maintaining an elevated balance in liquid assets is to reduce liquidity risk, which we describe more fully below in the Liquidity section, resulting from deteriorating asset quality and the Order. We anticipate average loans to remain stable over the next six to twelve months. We anticipate average earning assets to decline as brokered deposits mature and/or are called, and are funded with existing cash reserves.
The tax equivalent yield on earning assets decreased by 0.60% for the three month period ended March 31, 2012, compared to the same period in 2011. Comparing the first quarter of 2012 to 2011, the yield on loans declined by 0.14% to
Point-of-sale fees (POS fees) increased 7.9% to $342 thousand for the three months ended March 31, 2012 compared to the same period in 2011. POS fees are primarily generated when our customers use their debit cards for retail purchases. We anticipate POS fees to continue to grow as customer trends show increased use of debit cards, although it is unclear if certain provisions affecting interchange fees for card issuers included in the Dodd-Frank Act will have a future material impact on this product and its revenue.
Trust fees decreased $83 thousand thousand for the three months ended March 31, 2012 compared to 2011. As of March 31, 2012, our trust and wealth management department had 340 accounts with assets held under management of $153.9 million compared to 459 accounts with assets held under management of $210.9 million as of March 31, 2011. In February 2012, we appointed a new Director of FSGBank's Wealth Management and Trust Department. Subsequently, we hired two additional trust officers and a trust specialist. Collectively, we anticipate this team to grow assets under management during 2012. Additionally, the focus of such growth is within managed accounts that provide higher levels of revenue than custodian and other services. However, this growth is dependent on our ability to maintain our existing clients while adding new clients as well as the general performance of the stock market.
Read the The complete Report
First Sec Gp has a market cap of $5.4 million; its shares were traded at around $3.05 with and P/S ratio of 0.1.
Highlight of Business Operations:
Our efficiency ratio increased in the first quarter of 2012 to 104.0% compared to 82.6% in the same period of 2011 primarily due to reductions in net interest income and noninterest income that combined with an increase in noninterest expense. We anticipate our efficiency ratio to begin to improve during the second quarter of 2012 as we focus on enhancing revenue while continuing to reduce certain overhead expenses. However, the stabilization and possible improvement of our efficiency ratio over the balance of 2012 is contingent on both macro-economic factors, such as potential changes to the federal funds target rate, and micro-economic factors, such as local unemployment and real estate values.Interest income for the first quarter of 2012 was $9.7 million, a 15.8% decrease compared to the same period in 2011. Average earning assets decreased $23.2 million, or 2.2%, in the first quarter of 2012 compared to the same period in 2011. Average loans declined in the first quarter of 2012 by $112.5 million, offset by a $60.0 million increase in investment securities and a $29.2 million increase in other earning assets. The change in mix and volume of earning assets decreased interest income by $1.8 million, comparing the first quarter of 2012 to the same period in 2011. For other earning assets, we maintained an elevated balance at the Federal Reserve Bank of Atlanta, which averaged approximately $214 million for the first quarter of 2012. The yield on this account is approximately 0.25%. The purpose of maintaining an elevated balance in liquid assets is to reduce liquidity risk, which we describe more fully below in the Liquidity section, resulting from deteriorating asset quality and the Order. We anticipate average loans to remain stable over the next six to twelve months. We anticipate average earning assets to decline as brokered deposits mature and/or are called, and are funded with existing cash reserves.
The tax equivalent yield on earning assets decreased by 0.60% for the three month period ended March 31, 2012, compared to the same period in 2011. Comparing the first quarter of 2012 to 2011, the yield on loans declined by 0.14% to
Point-of-sale fees (POS fees) increased 7.9% to $342 thousand for the three months ended March 31, 2012 compared to the same period in 2011. POS fees are primarily generated when our customers use their debit cards for retail purchases. We anticipate POS fees to continue to grow as customer trends show increased use of debit cards, although it is unclear if certain provisions affecting interchange fees for card issuers included in the Dodd-Frank Act will have a future material impact on this product and its revenue.
Trust fees decreased $83 thousand thousand for the three months ended March 31, 2012 compared to 2011. As of March 31, 2012, our trust and wealth management department had 340 accounts with assets held under management of $153.9 million compared to 459 accounts with assets held under management of $210.9 million as of March 31, 2011. In February 2012, we appointed a new Director of FSGBank's Wealth Management and Trust Department. Subsequently, we hired two additional trust officers and a trust specialist. Collectively, we anticipate this team to grow assets under management during 2012. Additionally, the focus of such growth is within managed accounts that provide higher levels of revenue than custodian and other services. However, this growth is dependent on our ability to maintain our existing clients while adding new clients as well as the general performance of the stock market.
Read the The complete Report
