MCMINNVILLE, Tenn., July 30, 2013 (GLOBE NEWSWIRE) -- Security Bancorp, Inc. ("Company") (OTCBB:SCYT) today announced consolidated earnings for the second quarter of its fiscal year ended December 31, 2013. The Company is the bank holding company for Security Federal Savings Bank of McMinnville, Tennessee ("Bank").
Net income for the three months ended June 30, 2013 was $347,000, or $0.90 per share, compared to $285,000, or $0.74 per share, for the same quarter last year. For the six months ended June 30, 2013, the Company's net income was $573,000, or $1.49 per share, compared to $563,000, or $1.46 per share, for the same period in 2012.
For the three months ended June 30, 2013, net interest income remained relatively unchanged at $1.2 million, reflecting an increase of $43,000, or 3.6%, compared to the same period in 2012. For the six months ended June 30, 2013, net interest income remained stable at $2.4 million, reflecting a slight increase of $59,000, or 2.5%, compared to the same period in 2012. The slight increase in net interest income for the quarter and year-to-date is primarily due to the reduction in interest expense on customer deposits. Net interest income after provision for loan losses remained relatively unchanged at $1.1 million and $2.2 million for the three and six months ended June 30, 2013, respectively, compared to the same periods in 2012.
Non-interest income for the three months ended June 30, 2013 was $703,000 compared to $636,000 for the same quarter of 2012, an increase of 10.5%. For the six months ended June 30, 2013, non-interest income increased $27,000, or 2.2%, and was unchanged at $1.2 million compared to the same period in 2012. The increases during the quarter and the six months ended June 30, 2013 were primarily attributable gains on the sale of securities offset by a reduction in the gains on the sale of loans.
Non-interest expense for the three months ended June 30, 2013 increased $34,000, or 2.7%, to $1.3 million from $1.2 million for the same period in 2012. For the six months ended June 30, 2013, non-interest expense was $2.6 million, reflecting an increase of $103,000, or 4.2%, from the same period in 2012. This increase is primarily due to increases in data processing expense and expenses related to real estate owned.
Consolidated assets of the Company were $162.2 million at June 30, 2013, compared to $163.2 million at December 31, 2012. The $987,000, or 0.6%, decrease in assets is primarily attributable to a $2.0 million decrease in the balances of repurchase agreements that were used to fund these assets. Loans receivable, net, increased $1.8 million, or 1.5%, from $117.1 million at December 31, 2012 to $118.9 million at June 30, 2013. The increase in loans receivable was attributable to an increase primarily in consumer secured loans.
The provision for loan losses was $90,000 for the three months ended June 30, 2013 compared to $106,000 for the same quarter in 2012, a decrease of 15.1%. The provision for loan losses was $180,000 for the six months ended June 30, 2013 compared to $191,000 in the comparable period in 2012, a decrease of 5.8%.
Non-performing assets increased $133,000, or 9.7%, to $1.5 million at June 30, 2013 from $1.4 million at December 31, 2012. 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 June 30, 2013 was adequate to absorb known and inherent risks in the loan portfolio at that date. At June 30, 2013 the allowance for loan losses to non-performing assets was 69.97% compared to 78.31% at December 31, 2012.
Investment and mortgage-backed securities available-for-sale decreased $284,000, or 1.1%, to $25.0 million at June 30, 2013, compared to $25.3 million at December 31, 2012.
Deposits increased $517,000, or 0.36%, to $143.4 million at June 30, 2013 from $142.9 million at December 31, 2012. The increase was primarily attributable to an increase in consumer checking and savings account balances.
Stockholders' equity increased $436,000, or 2.7%, to $16.5 million, or 10.2% of total assets at June 30, 2013 compared to $16.1 million, or 9.8%, of total assets, at December 31, 2012.
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) | ||||||||
| Three months ended | Six months ended | |||||||
| OPERATING DATA | June 30, | June 30, | ||||||
| 2013 | 2012 | 2013 | 2012 | |||||
| Interest income | $1,488 | $1,533 | $2,957 | $3,063 | ||||
| Interest expense | 257 | 345 | 537 | 702 | ||||
| Net interest income | 1,231 | 1,188 | 2,420 | 2,361 | ||||
| Provision for loan losses | 90 | 106 | 180 | 191 | ||||
| Net interest income after provision for loan losses | 1,141 | 1,082 | 2,240 | 2,170 | ||||
| Non-interest income | 703 | 636 | 1,248 | 1,221 | ||||
| Non-interest expense | 1,276 | 1,242 | 2,555 | 2,452 | ||||
| Income before income tax expense | 568 | 476 | 933 | 939 | ||||
| Income tax expense | 221 | 191 | 360 | 376 | ||||
| Net income | $347 | $285 | $573 | $563 | ||||
| Net income per share | $0.90 | $0.74 | $1.49 | $1.46 | ||||
| FINANCIAL CONDITION DATA | At June 30, 2013 | At December 31, 2012 | ||||||
| Total assets | $162,239 | $163,226 | ||||||
| Investment and mortgage backed securities available-for-sale | 25,002 | 25,286 | ||||||
| Investment and mortgage backed securities held-to-maturity | -0- | -0- | ||||||
| Loans receivable, net | 118,872 | 117,091 | ||||||
| Deposits | 143,370 | 142,853 | ||||||
| FHLB advances/Other Borrowings | 1,110 | 3,085 | ||||||
| Stockholders' equity | 16,496 | 16,060 | ||||||
| Non-performing assets | 1,502 | 1,369 | ||||||
| Non-performing assets to total assets | 0.93% | 0.84% | ||||||
| Allowance for loan losses | 1,051 | 1,072 | ||||||
| Allowance for loan losses to total loans receivable | 0.88% | 0.91% | ||||||
| Allowance for loan losses to non-performing assets | 69.97% | 78.31% | ||||||