MCMINNVILLE, Tenn., Nov. 10, 2015 (GLOBE NEWSWIRE) -- Security Bancorp, Inc. (“Company”) (OTCBB:SCYT), the holding company for Security Federal Savings Bank of McMinnville, Tennessee, today announced consolidated earnings for the third quarter of its fiscal year ended December 31, 2015.
Net income for the three months ended September 30, 2015 was $252,000, or $0.68 per share, compared to $423,000, or $1.10 per share, for the same quarter last year. For the nine months ended September 30, 2015, the Company’s net income was $880,000, or $2.35 per share, compared to $1.1 million, or $2.76 per share, for the same period in 2014.
For the three months ended September 30, 2015 and 2014, net interest income was $1.4 million. For the nine months ended September 30, 2015 and 2014, net interest income remained relatively unchanged at $4.1 million. Net interest income after provision for loan losses for the three months ended September 30, 2015 was $1.3 million, unchanged from the same period in the previous year. For the nine months ended September 30, 2015 and 2014, net interest income after provision for loan losses was $3.8 million.
Non-interest income for the three months ended September 30, 2015 was $422,000 compared to $545,000 for the same quarter of 2014, a decrease of $123,000, or 22.6%. For the nine months ended September 30, 2015, non-interest income was $1.3 million, a decrease of $232,000, or 14.7%, compared to $1.6 million for the same period in 2014. The decreases during the quarter and the nine months ended September 30, 2015 were primarily attributable to a decrease in the income from financial services and deposit service charges offset by an increase in the gains on sale of loans.
Non-interest expense for the three months ended September 30, 2015 increased $64,000, or 5.2%, to $1.3 million from $1.2 million for the same period in 2014. For the nine months ended September 30, 2015, non-interest expense was $3.8 million, reflecting an increase of $61,000, or 1.6%, from $3.7 million for the same period in 2014.
For the three months ended September 30, 2015, income tax expense was $132,000, a decrease of $78,000, or 37.4% from $210,000 for the same period in 2014. For the nine months ended September 30, 2015, income tax expense was $446,000, a decrease of $111,000, or 19.9%, from $557,000 for the same period in 2015. The decrease during the quarter and the nine months ended September 30, 2015 was primarily attributable to the decrease in net income before income tax expense.
Consolidated assets of the Company were $183.8 million at September 30, 2015, compared to $175.6 million at December 31, 2014. The $8.2 million, or 4.7%, increase in assets is primarily attributable to an increase in investments which were funded by deposit growth and loan repayments. Loans receivable, net, decreased $5.9 million, or 4.6%, to $121.9 million at September 30, 2015 from $127.8 million at December 31, 2014. The decrease in loans receivable was attributable primarily to loan repayments on commercial real estate loans.
The provision for loan losses decreased $5,000, or 5.2%, to $91,000 for the three months ended September 30, 2015 from $96,000 for the comparable period in 2014. The provision for loan losses was $285,000 for the nine months ended September 30, 2015 compared to $279,000 in the comparable period in 2014, an increase of $6,000, or 2.2%.
Non-performing assets increased $276,000, or 24.4%, to $1.4 million at September 30, 2015 from $1.1 million at December 31, 2014. The increase is attributable to an increase in non-accrual loans. Based on its analysis of delinquent loans, non-performing loans and classified loans, management believes that the Company’s allowance for loan losses of $1.1 million at September 30, 2015 was adequate to absorb known and inherent risks in the loan portfolio at that date. At September 30, 2015 the allowance for loan losses to non-performing assets was 74.93% compared to 96.91% at December 31, 2014.
Investment and mortgage-backed securities available-for-sale increased $14.3 million, or 62.3%, to $37.2 million at September 30, 2015, compared to $22.9 million at December 31, 2014. The increase is attributable to the purchase of investments funded by deposit growth and loan repayments.
Deposits increased $10.5 million, or 7.1%, to $159.8 million at September 30, 2015 from $149.3 million at December 31, 2014. The increase was primarily attributable to increases in money market and savings accounts.
Stockholders’ equity increased $539,000, or 3.0%, to $18.3 million, or 9.95% of total assets at September 30, 2015 compared to $17.8 million, or 10.1%, of total assets, at December 31, 2014.
Safe-Harbor Statement
Certain matters in this News Release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may relate to, among others, expectations of the business environment in which the Company operates and projections of future performance. These forward-looking statements are based upon current management expectations, and may, therefore, involve risks and uncertainties. The Company’s actual results, performance, or achievements may differ materially from those suggested, expressed, or implied by forward-looking statements as a result of a wide range of factors including, but not limited to, the general business environment, interest rates, competitive conditions, regulatory changes, and other risks.
| SECURITY BANCORP, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited) (dollars in thousands) | ||||||||||||
| OPERATING DATA | Three months ended September 30, | Nine months ended September 30, | ||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||
| Interest income | $ | 1,547 | $ | 1,616 | $ | 4,648 | $ | 4,675 | ||||
| Interest expense | 195 | 197 | 582 | 613 | ||||||||
| Net interest income | 1,352 | 1,419 | 4,066 | 4,062 | ||||||||
| Provision for loan losses | 91 | 96 | 285 | 279 | ||||||||
| Net interest income after provision for loan losses | 1,261 | 1,323 | 3,781 | 3,783 | ||||||||
| Non-interest income | 422 | 545 | 1,342 | 1,574 | ||||||||
| Non-interest expense | 1,299 | 1,235 | 3,797 | 3,736 | ||||||||
| Income before income tax expense | 384 | 633 | 1,326 | 1,621 | ||||||||
| Income tax expense | 132 | 210 | 446 | 557 | ||||||||
| Net income | $ | 252 | $ | 423 | $ | 880 | $ | 1,064 | ||||
| Net income per share | $ | 0.68 | $ | 1.10 | $ | 2.35 | $ | 2.76 | ||||
FINANCIAL CONDITION DATA | At September 30, 2015 | At December 31, 2014 | ||||||||||
| Total assets | $ | 183,792 | $ | 175,590 | ||||||||
| Investment and mortgage backed securities available-for-sale | 37,202 | 22,926 | ||||||||||
| Loans receivable, net | 121,912 | 127,832 | ||||||||||
| Deposits | 159,830 | 149,302 | ||||||||||
| Repurchase agreements | 4,106 | 7,175 | ||||||||||
| Stockholders' equity | 18,294 | 17,755 | ||||||||||
| Non-performing assets | 1,408 | 1,132 | ||||||||||
| Non-performing assets to total assets | 0.77 | % | 0.64 | % | ||||||||
| Allowance for loan losses | 1,055 | 1,097 | ||||||||||
| Allowance for loan losses to total loans receivable | 0.85 | % | 0.85 | % | ||||||||
| Allowance for loan losses to non-performing assets | 74.93 | % | 96.90 | % | ||||||||