THIRD QUARTER REPORT
FOR THE PERIODS ENDED
SEPTEMBER 30, 2008
ISSUE DATE: OCTOBER 24, 2008
Dear Fellow Shareholders:
Third quarter results for First Financial Service Corporation were $0.21 diluted net income per share. For the nine months ended September 30, 2008, diluted net income per share was $1.06. The third quarter and year-to-date earnings were primarily impacted by a higher provision for loan loss specifically reserved against a previously classified commercial real estate relationship.
The financial services industry is facing challenging times and the Company has not remained immune to this unstable economic environment. Although a higher provision was recorded in the third quarter, the Bank remains well-capitalized in regards to regulatory guidelines and has avoided some of the broader issues facing the industry. We remain optimistic as our total loan portfolio grew $28.9 million from the prior quarter. The communities within our current geographic footprint continued to expand and we are committed to serving the strong relationships we have developed over the years with our customers.
Highlighting the third quarter, the Company opened its twentieth banking center, which expanded the Bank’s current footprint in Bullitt County, Kentucky. The Cedar Grove Banking Center complements the existing branches located in Shepherdsville and Mt. Washington, Kentucky. The Bank will continue its expansion efforts in the fourth quarter with two additional branches that will be under development. The first branch will be in Hardin County, Kentucky located at the entrance to the Fort Knox military base. The other branch will be the fourth site in Louisville, Kentucky located in the Middletown area.
The Board of Directors and Associates are always committed to building shareholder value. We thank you for your continued support. Enclosed is a copy of the News Release announcing our earnings for the quarter ended September 30, 2008.
Sincerely,
B. KEITH JOHNSON
Chief Executive Officer
Click here for a copy of the News Release announcing our earnings for the periods ended September 30, 2008. Click here for a copy of the earnings table for the periods ended September 30, 2008.
