Security Bancorp, Inc. Announces Third Quarter Earnings

MCMINNVILLE, Tenn., Oct. 31, 2011 (GLOBE NEWSWIRE) -- Security Bancorp, Inc. ("Company") (OTCBB:SCYT) today announced consolidated earnings for the third quarter of its fiscal year ended December 31, 2011. The Company is the bank holding company for Security Federal Savings Bank of McMinnville, Tennessee ("Bank").

Net income for the three months ended September 30, 2011 was $298,000, or $0.78 per share, compared to $227,000, or $0.59 per share, for the same quarter last year. For the nine months ended September 30, 2011, the Company's net income was $789,000, or $2.05 per share, compared to $622,000, or $1.60 per share, for the same period in 2010.

Net interest income after provision for loan losses for the three months ended September 30, 2011 increased slightly to $1.2 million, compared to $1.1 million the same period in 2010. For the nine months ended September 30, 2011, net interest income increased 6.0% to $3.4 million from $3.2 million for the comparable period in 2010. The increase in net interest income was primarily attributable to the decrease in interest expense of $340,000 primarily due to the repayment of Federal Home Loan Bank advances.

Non-interest income for the three months ended September 30, 2011 was $563,000 compared to $505,000 for the same quarter of 2010, an increase of $58,000, or 11.5%.   For the nine months ended September 30, 2011, non-interest income increased $178,000, or 12.3%, to $1.6 million from $1.4 million for the comparable period in 2010. The increases during the quarter and the nine months ended September 30, 2011 were primarily attributable to increases in deposit fee income and trust service fees.

Non-interest expense for the three months ended September 30, 2011 was unchanged at $1.2 million compared to the same period in 2010.   For the nine months ended September 30, 2011, non-interest expense increased $84,000, or 2.3%, to $3.7 million from $3.6 million for the comparable period in 2010. The increase in non-interest expense during nine months ended September 30, 2011 was the result of an increase in data processing costs, trust service expenses and other operating expenses. 

Consolidated assets of the Company were $157.0 million at September 30, 2011, compared to $152.6 million at December 31, 2010. The $4.4 million, or 2.9%, increase in assets is attributable to an increase in investment and cash balances which resulted from deposit increases during the nine months ended September 30, 2011. Loans receivable, net, increased from $115.8 million at December 31, 2010 to $116.2 million at September 30, 2011. The $367,000, or 0.3%, increase in loans receivable was attributable to an increase in consumer loans and residential real estate offset by an increase in the allowance for loan losses. Non-performing assets increased by $590,000, or 61.2%, to $1.6 million at September 30, 2011 from $964,000 at December 31, 2010.

The provision for loan losses increased slightly from $66,000 for the three months ended September 30, 2010 to $73,000 for the same period of 2011.  Similarly, the provision for loan losses increased slightly to $198,000 for the nine months ended September 30, 2011 from $193,000 for the same period in 2010. 

Investment and mortgage-backed securities available-for-sale increased $4.4 million, or 26.6%, to $21.2 million at September 30, 2011, compared to $16.7 million at December 31, 2010.  The increase in investment and mortgage-backed securities available-for-sale is a result of investments purchased using funds provided by the increase in deposits.

Deposits increased $7.5 million, or 5.8%, to $136.1 million at September 30, 2011 from $128.6 million at December 31, 2010. The increase was primarily attributable to an increase in commercial checking, savings accounts and certificates of deposit.

Stockholders' equity increased $542,000 or 3.8% to $15.0 million at September 30, 2011 compared to $14.4 million at December 31, 2010. At September 30, 2011, stockholders' equity was 9.5% of total assets, unchanged from December 31, 2010.

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.