City Securities rebounds quickly from recession

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The recession hit locally based City Securities Corp. hard. But Indiana’s oldest and largest investment banking firm
has already begun to recover.

According to annual audited financial reports City Securities is required to file with the Securities and Exchange Commission,
the company booked $28.1 million in revenue and a $990,218 profit for the year ended Sept. 30. That compares with $30.3 million
in total revenue and $2.5 million in profit for City Securities’ fiscal 2008; and $30.4 million in total revenue and
$3.6 million in profit for the firm’s fiscal 2007.

Bosway Bosway

2007 was the last in a run of nine years of record revenue and profitability, according to City Securities CEO and President
Michael Bosway, who said the recession affected his firm much like it did all other financial institutions—albeit not
as dramatically.

“Typically, we don’t grow as much as the larger firms do when things are booming,” Bosway said. “But
because of our business mix, we don’t have the downside risk that some of the larger firms do when things aren’t
so good.”

Commissions provided the largest portion of City Securities’ revenue: $19.3 million in fiscal 2009. Underwriting and
principal transaction revenue totaled $4.2 million. The firm’s insurance division booked $3.7 million in revenue.

Compensation and benefits for City Securities’ 200 employees were its largest expense, at $20 million. After that,
its next three biggest expenses were communications, rent and security clearing fees, each of which totaled about $1 million.

Bosway said better results are on the horizon. City Securities expects its revenue to increase 20 percent to 25 percent this
year, and Bosway said company profit should grow even more.

“Occasionally, over the life of any corporation, you’re going to have a year like ’09,” Bosway said.
“Our feeling is that, having come through the most severe financial crisis we’ve seen since the Great Depression,
and to come out actually stronger as an organization is something we’re pretty proud of.”

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