Security Bancorp, Inc. Announces Second Quarter Earnings

MCMINNVILLE, Tenn., Aug. 3, 2011 (GLOBE NEWSWIRE) -- Security Bancorp, Inc. ("Company") (OTCBB:SCYT) today announced consolidated earnings for the second 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 June 30, 2011 was $275,000, or $0.71 per share, compared to $226,000, or $0.58 per share, for the same quarter last year. For the six months ended June 30, 2011, the Company's net income was $491,000, or $1.28 per share, compared to $395,000, or $1.02 per share, for the same period in 2010.

Net interest income after provision for loan losses for the three months ended June 30, 2011 remained relatively unchanged at $1.1 million, compared to the same period in 2010. For the six months ended June 30, 2011, net interest income increased 5.5% to $2.2 million from $2.1 million for the comparable period in 2010. The increase in net interest income was primarily attributable to the reduction in interest expense due to the payoff of Federal Home Loan Bank advances.

Non-interest income for the three months ended June 30, 2011 was $556,000 compared to $496,000 for the same quarter of 2010, an increase of 12%.   For the six months ended June 30, 2011, non-interest income increased $85,000, or 8.7%, to $1.1 million from $976,000 for the comparable period in 2010. The increases during the quarter and the six months ended June 30, 2011 were primarily attributable to increases in deposit fee income and trust service fees.

Non-interest expense for the three months ended June 30, 2011 was unchanged at $1.2 million compared to the same period in 2010.   For the six months ended June 30, 2011, non-interest expense increased $46,000, or 1.9%, to $2.5 million from $2.4 million for the comparable period in 2010. The increase in non-interest expense during six months ended June 30, 2011 was the result of an increase in data processing costs, trust service expenses and FDIC insurance premiums. 

Consolidated assets of the Company were $159.8 million at June 30, 2011, compared to $152.6 million at December 31, 2010. The 4.7% increase in assets is attributable to an increase in investment and cash balances which resulted from deposit increases during the six months ended June 30, 2011. Loans receivable, net, increased from $115.8 million at December 31, 2010 to $116.9 million at June 30, 2011. The 0.9% increase in loans receivable was attributable to an increase in commercial lines of credit. Non-performing assets increased to $1.7 million at June 30, 2011 from $964,000 at December 31, 2010.

The provision for loan losses increased slightly from $64,000 for the three months ended June 30, 2010 to $65,000 for the same period of 2011.  The provision for loan losses decreased to $125,000 for the six months ended June 30, 2011 from $127,000 for the same period in 2010. 

Investment and mortgage-backed securities available-for-sale increased 28.7% to $21.5 million at June 30, 2011, compared to $16.7 million at December 31, 2010.  

Deposits increased $7.4 million, or 5.8%, from $128.6 million at December 31, 2010 to $136.1 million at June 30, 2011. The increase was primarily attributable to an increase in commercial checking, NOW accounts and money market accounts.

Stockholders' equity increased $683,000 or 4.7% to $15.1 million, or 9.5% of total assets at June 30, 2011 compared to $14.4 million, also 9.5% of total assets, at 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.