Security Bancorp, Inc. Announces First Quarter Earnings

MCMINNVILLE, Tenn., May 04, 2018 (GLOBE NEWSWIRE) -- Security Bancorp, Inc. (OTCBB:SCYT) (“Company”) today announced consolidated earnings for the first quarter of its fiscal year ended December 31, 2018.  The Company is the holding company for Security Federal Savings Bank of McMinnville, Tennessee (“Bank”).

Net income for the three months ended March 31, 2018 was $504,000, or $1.30 per share, compared to $385,000, or $1.00 per share, for the same quarter last year.

For the three months ended March 31, 2018, net interest income increased by $123,000, or 7.9%, to $1.7 million from $1.6 million for the comparable period in 2017.  Total interest income was $1.9 million for the three months ended March 31, 2018 compared to $1.7 million for the same period in the previous year.  The increase of $205,000, or 11.8%, was primarily attributable to an increase in interest income from loans and investments.  Total interest expense increased $82,000, or 47.4%, to $255,000 for the three months ended March 31, 2018, from $173,000 for the same period in 2017.  The increase in interest expense was primarily due to growth in interest-bearing demand deposits as well as an increase in interest rates.  Net interest income after provision for loan losses for the three months ended March 31, 2018 increased by $122,000, or 8.0%, to $1.6 million from $1.5 million the same period the previous year. 

Non-interest income for the three months ended March 31, 2018 was $408,000 compared to $461,000 for the three months ended March 31, 2017, a decrease of $53,000, or 11.5%.  The decrease was attributable to a decrease in the gains on sale of loans.

Non-interest expense for the three months ended March 31, 2018 remained relatively stable at $1.4 million compared to the same period the prior year.

Consolidated assets of the Company increased $7.7 million, or 3.8%, to $211.3 million at March 31, 2018 from $203.6 million at December 31, 2017.  The increase in consolidated assets was funded primarily by an increase in deposits.  Loans receivable, net, increased $1.5 million, or 1.1%, to $135.7 million at March 31, 2018 from $134.2 million at December 31, 2017. 

The provision for loan losses was $31,000 for the three months ended March 31, 2018, an increase of $1,000 from $30,000 for the same quarter last year.

Non-performing assets decreased $33,000, or 4.9%, to $647,000 at March 31, 2018 from $680,000 at December 31, 2017.  The decrease is attributable to a decrease in non-performing 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 $1.5 million at March 31, 2018 is adequate to absorb known and inherent risks in the loan portfolio at that date. The allowance for loan losses at March 31, 2018 represented 231.8% of non-performing assets compared to 216.03% at December 31, 2017.  

Investments and mortgage-backed securities available-for-sale increased $1.9 million or 4.4%, to $44.6 million at March 31, 2018 from $42.7 million at December 31, 2017.  The increase was funded by the increase in deposits.
           
Deposits increased $6.9 million, or 3.9%, to $185.0 million at March 31, 2018 from $178.1 million at December 31, 2017.  The increase was primarily attributable to an increase in commercial and consumer interest-bearing demand deposits.

Stockholders’ equity at March 31, 2018 was $20.8 million, or 9.8% of total assets, compared to $20.5 million, or 10.1% of total assets at December 31, 2017.

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.